Document:

exv4w1

 

Exhibit 4.1

Execution Version

 

 

TERM CREDIT AGREEMENT

Dated as of

March 13, 2008

Among

TRANSOCEAN INC.,

as Borrower,

THE LENDERS PARTIES HERETO,

CITIBANK, N.A.,

as Administrative Agent,

CALYON NEW YORK BRANCH,

and

JPMORGAN CHASE BANK, N.A.,

as Co-Syndication Agents,

and

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

and

FORTIS BANK SA/NV, NEW YORK BRANCH,

as Co-Documentation Agents

 

 

CITIGROUP GLOBAL MARKETS, INC.,

CALYON NEW YORK BRANCH,

and J.P. MORGAN SECURITIES INC.,

as Joint Lead Arrangers and Bookrunners

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE 1.
	 	DEFINITIONS; INTERPRETATION	 	 	1	 
	Section 1.1.
	 	Definitions	 	 	1	 
	Section 1.2.
	 	Time of Day	 	 	16	 
	Section 1.3.
	 	Accounting Terms; GAAP	 	 	17	 
	ARTICLE 2.
	 	TERM CREDIT FACILITY	 	 	17	 
	Section 2.1.
	 	Term Commitments	 	 	17	 
	Section 2.2.
	 	Types of Term Loans	 	 	17	 
	Section 2.3.
	 	Procedure for Borrowing	 	 	17	 
	Section 2.4.
	 	Procedure for Continuation or Conversion of Term Loans	 	 	18	 
	Section 2.5.
	 	Interest Periods	 	 	19	 
	Section 2.6.
	 	Funding of Term Loans	 	 	20	 
	Section 2.7.
	 	Applicable Interest Rates	 	 	21	 
	Section 2.8.
	 	Default Rate	 	 	21	 
	Section 2.9.
	 	Repayment of Term Loans; Evidence of Debt	 	 	23	 
	Section 2.10.
	 	Optional Prepayments	 	 	24	 
	Section 2.11.
	 	Mandatory Prepayments of Term Loans	 	 	24	 
	Section 2.12.
	 	Breakage Fees	 	 	24	 
	Section 2.13.
	 	Term Facility Increase; Additional Lenders	 	 	25	 
	ARTICLE 3.
	 	FEES AND PAYMENTS	 	 	26	 
	Section 3.1.
	 	Administrative Agent Fees	 	 	26	 
	Section 3.2.
	 	Place and Application of Payments	 	 	26	 
	Section 3.3.
	 	Withholding Taxes	 	 	27	 
	ARTICLE 4.
	 	CONDITIONS PRECEDENT	 	 	29	 
	Section 4.1.
	 	Initial Borrowing	 	 	29	 
	Section 4.2.
	 	Subsequent Borrowings	 	 	31	 
	ARTICLE 5.
	 	REPRESENTATIONS AND WARRANTIES	 	 	31	 
	Section 5.1.
	 	Corporate Organization	 	 	31	 
	Section 5.2.
	 	Power and Authority; Validity	 	 	32	 
	Section 5.3.
	 	No Violation	 	 	32	 
	Section 5.4.
	 	Litigation	 	 	32	 
	Section 5.5.
	 	Use of Proceeds; Margin Regulations	 	 	32	 
	Section 5.6.
	 	Investment Company Act	 	 	33	 
	Section 5.7.
	 	True and Complete Disclosure	 	 	33	 
	Section 5.8.
	 	Financial Statements	 	 	33	 
	Section 5.9.
	 	No Material Adverse Change	 	 	33	 
	Section 5.10.
	 	Taxes	 	 	33	 
	Section 5.11.
	 	Consents	 	 	34	 
	Section 5.12.
	 	Insurance	 	 	34	 
	Section 5.13.
	 	Intellectual Property	 	 	34	 
	Section 5.14.
	 	Ownership of Property	 	 	34	 
	Section 5.15.
	 	Existing Indebtedness	 	 	34	 
	Section 5.16.
	 	Existing Liens	 	 	34	 
	Section 5.17.
	 	Employee Benefit Plan	 	 	35	 
	Section 5.18.
	 	OFAC	 	 	35	 
	Section 5.19.
	 	Compliance with Certain Laws	 	 	35	 
	ARTICLE 6.
	 	COVENANTS	 	 	36	 
	Section 6.1.
	 	Corporate Existence	 	 	36	 
	Section 6.2.
	 	Maintenance	 	 	36	 

 

 

	 	 	 	 	 	 	 
	Section 6.3.
	 	Taxes	 	 	36	 
	Section 6.4.
	 	ERISA	 	 	36	 
	Section 6.5.
	 	Insurance	 	 	37	 
	Section 6.6.
	 	Financial Reports and Other Information	 	 	37	 
	Section 6.7.
	 	Lender Inspection Rights	 	 	40	 
	Section 6.8.
	 	Conduct of Business	 	 	40	 
	Section 6.9.
	 	Use of Proceeds; Margin Regulations	 	 	40	 
	Section 6.10.
	 	Restrictions on Fundamental Changes	 	 	40	 
	Section 6.11.
	 	Liens	 	 	41	 
	Section 6.12.
	 	Subsidiary Indebtedness	 	 	44	 
	Section 6.13.
	 	Use of Property and Facilities; Environmental Laws	 	 	45	 
	Section 6.14.
	 	Transactions with Affiliates	 	 	45	 
	Section 6.15.
	 	Sale and Leaseback Transactions	 	 	45	 
	Section 6.16.
	 	Compliance with Laws	 	 	46	 
	Section 6.17.
	 	Indebtedness to Total Tangible Capitalization Ratio	 	 	46	 
	Section 6.18.
	 	Leverage Ratio	 	 	46	 
	ARTICLE 7.
	 	EVENTS OF DEFAULT AND REMEDIES	 	 	46	 
	Section 7.1.
	 	Events of Default	 	 	46	 
	Section 7.2.
	 	Non-Bankruptcy Defaults	 	 	48	 
	Section 7.3.
	 	Bankruptcy Defaults	 	 	48	 
	Section 7.4.
	 	Notice of Default	 	 	48	 
	Section 7.5.
	 	Expenses	 	 	48	 
	Section 7.6.
	 	Distribution and Application of Proceeds	 	 	49	 
	ARTICLE 8.
	 	CHANGE IN CIRCUMSTANCES	 	 	50	 
	Section 8.1.
	 	Change of Law	 	 	50	 
	Section 8.2.
	 	Unavailability of Deposits or Inability to Ascertain LIBOR Rate	 	 	50	 
	Section 8.3.
	 	Increased Cost and Reduced Return	 	 	51	 
	Section 8.4.
	 	Lending Offices	 	 	52	 
	Section 8.5.
	 	Discretion of Lender as to Manner of Funding	 	 	53	 
	Section 8.6.
	 	Substitution of Lender	 	 	53	 
	ARTICLE 9.
	 	THE AGENTS	 	 	53	 
	Section 9.1.
	 	Appointment and Authorization of Administrative Agent and Other Agents	 	 	53	 
	Section 9.2.
	 	Rights and Powers	 	 	54	 
	Section 9.3.
	 	Action by Administrative Agent and the Other Agents	 	 	54	 
	Section 9.4.
	 	Consultation with Experts	 	 	54	 
	Section 9.5.
	 	Indemnification Provisions; Credit Decision	 	 	54	 
	Section 9.6.
	 	Indemnity	 	 	55	 
	Section 9.7.
	 	Resignation	 	 	55	 
	Section 9.8.
	 	Sub-Agents	 	 	56	 
	ARTICLE 10.
	 	MISCELLANEOUS	 	 	56	 
	Section 10.1.
	 	No Waiver	 	 	56	 
	Section 10.2.
	 	Non-Business Day	 	 	56	 
	Section 10.3.
	 	Documentary Taxes	 	 	57	 
	Section 10.4.
	 	Survival of Representations	 	 	57	 
	Section 10.5.
	 	Survival of Indemnities	 	 	57	 
	Section 10.6.
	 	Setoff	 	 	57	 
	Section 10.7.
	 	Notices	 	 	58	 
	Section 10.8.
	 	Counterparts	 	 	60	 
	Section 10.9.
	 	Successors and Assigns	 	 	61	 

ii

 

	 	 	 	 	 	 	 
	Section 10.10.
	 	Sales and Transfers of Borrowing and Notes; Participations in Borrowings and Notes	 	 	61	 
	Section 10.11.
	 	Amendments, Waivers and Consents	 	 	64	 
	Section 10.12.
	 	Headings	 	 	65	 
	Section 10.13.
	 	Legal Fees, Other Costs and Indemnification	 	 	65	 
	Section 10.14.
	 	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial	 	 	66	 
	Section 10.15.
	 	Confidentiality	 	 	67	 
	Section 10.16.
	 	[Intentionally Omitted]	 	 	68	 
	Section 10.17.
	 	Severability	 	 	68	 
	Section 10.18.
	 	Change in Accounting Principles, Fiscal Year or Tax Laws	 	 	68	 
	Section 10.19.
	 	Final Agreement	 	 	68	 
	Section 10.20.
	 	Officer’s Certificates	 	 	69	 
	Section 10.21.
	 	Effect of Inclusion of Exceptions	 	 	69	 
	Section 10.22.
	 	Patriot Act Notice	 	 	69	 
	Section 10.23.
	 	No Fiduciary Duty	 	 	69	 

Exhibits:

	 	 	 	 	 
	Exhibit 2.3

	 	—
	 	Form of Borrowing Request
	Exhibit 2.9

	 	—
	 	Form of Note
	Exhibit 2.13

	 	—
	 	Form of Joinder Agreement
	Exhibit 4.1A

	 	—
	 	Form of Opinion of Baker Botts LLP
	Exhibit 4.1B

	 	—
	 	Form of Opinion of Walter A. Baker
	Exhibit 4.1C

	 	—
	 	Form of Opinion of Walkers
	Exhibit 6.6

	 	—
	 	Form of Compliance Certificate
	Exhibit 6.12

	 	—
	 	Form of Subsidiary Guaranty
	Exhibit 10.10

	 	—
	 	Form of Assignment Agreement
	 
	 	 	 	 
	Schedules:
	 	 	 	 
	Schedule 5.4

	 	—
	 	Certain Litigation and Proceedings
	Schedule 5.8

	 	—
	 	Other Financial Disclosures
	Schedule 5.9

	 	—	 	Certain Events or Effects
	Schedule 5.15

	 	—
	 	Existing Indebtedness
	Schedule 5.16

	 	—
	 	Existing Liens
	Schedule 6.14

	 	—
	 	Transactions with Affiliates

iii

 

TERM CREDIT AGREEMENT

     THIS TERM CREDIT AGREEMENT (the “Agreement”), dated as of March 13, 2008, among TRANSOCEAN
INC. (the “Borrower”), a Cayman Islands company, the lenders from time to time parties hereto (each
a ”Lender” and collectively, the “Lenders”), CITIBANK, N.A., as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”), CALYON NEW YORK BRANCH and JPMORGAN CHASE
BANK, N.A., as co-syndication agents for the Lenders (in such capacity, the “Co-Syndication
Agents“), and THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. and FORTIS BANK SA/NV, NEW YORK BRANCH, as
co-documentation agents for the Lenders (in such capacity, the “Co-Documentation Agents”).

WITNESSETH:

     WHEREAS, the Borrower has requested that the Lenders establish in its favor a term loan
facility pursuant to which term loans in the aggregate principal amount of U.S. $1,925,000,000
would be made to the Borrower on the closing date of such facility and, subject to certain
conditions and requirements, additional term loans in an aggregate principal amount not to exceed
U.S. $75,000,000 may be requested to be made to the Borrower on a date on or before the first
anniversary of such closing date;

     WHEREAS, the Lenders are willing to make such term loan facility available to the Borrower on
the terms and subject to the conditions and requirements hereinafter set forth;

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

ARTICLE 1. DEFINITIONS; INTERPRETATION.

     Section 1.1. Definitions. Unless otherwise defined herein, the following terms shall
have the following meanings, which meanings shall be equally applicable to both the singular and
plural forms of such terms:

     “Additional Commitment Amount” has the meaning ascribed to such term in Section 2.13(a).

     “Additional Lender” has the meaning ascribed to such term in Section 2.13(b).

     “Adjusted LIBOR” means, for any Borrowing of Eurodollar Loans for any Interest Period, a rate
per annum determined in accordance with the following formula:

	 	 	 	 	 	 	 	 	 
	 

	 	Adjusted LIBOR
	 	=
	 	LIBOR Rate for such Interest Period
 

1.00 — Statutory Reserve Rate
	 	 

 

 

     “Administrative Agent” means Citibank, N.A., acting in its capacity as administrative agent
for the Lenders, and any successor Administrative Agent appointed hereunder pursuant to Section
9.7.

     “Administrative Agent’s Account” means the account of the Administrative Agent maintained by
the Administrative Agent at its office at Two Penns Way, New Castle, Delaware 19720, Account No.
36852248, Attention: Bank Loan Syndications, or such other account of the Administrative Agent as
is designated in writing from time to time by the Administrative Agent to the Borrower and the
Lenders for such purpose.

     “Administrative Questionnaire” means, with respect to each Lender, an administrative
questionnaire in the form prepared by the Administrative Agent and submitted to the Administrative
Agent duly completed by such Lender.

     “Aggregate Commitment Amount” means an amount equal to $1,925,000,000, plus the amount of any
commitments for additional Term Loans as may be agreed by any then-existing Lenders or Additional
Lenders pursuant to Section 2.13 of this Agreement.

     “Agreement” means this Term Credit Agreement, as the same may be amended, restated and
supplemented from time to time.

     “Angolan Debt” means the financing incurred for construction and mobilization of a drillship
for expected operations offshore Angola, as more particularly described on Schedule 5.15.

     “Applicable Margin” means, for any day, at such times as a rating (either express or implied)
by S&P and Moody’s is in effect on the Borrower’s non-credit enhanced senior unsecured long-term
debt, the percentage per annum set forth opposite such debt rating:

	 	 	 	 	 
	Debt Rating (S&P/Moody’s)	 	Percentage
	A/A2 or above
	 	 	0.300	%
	 
	 	 	 	 
	A-/A3
	 	 	0.400	%
	 
	 	 	 	 
	BBB+/Baa1
	 	 	0.450	%
	 
	 	 	 	 
	BBB/Baa2
	 	 	0.600	%
	 
	 	 	 	 
	BBB-/Baa3
	 	 	0.725	%
	 
	 	 	 	 
	BB+/Ba1 or below
	 	 	0.850	%

The Applicable Margin will be determined based upon the ratings issued by S&P and Moody’s. If such
ratings differ (i) by one level, the higher of such ratings will apply to determine the Applicable
Margin, (ii) by two levels, the rating which falls between such ratings will apply to determine the
Applicable Margin, or (iii) by more than two levels, the rating which is one level

2

 

above the lower of such ratings will apply to determine the Applicable Margin. If only one such
rating is issued by S&P and Moody’s, the Applicable Margin will be determined by such rating. The
Borrower shall give written notice to the Administrative Agent of any changes to such ratings,
within three (3) Business Days thereof, and any change to the Applicable Margin shall be effective
on the date of the relevant change. Notwithstanding the foregoing, if the Borrower shall at any
time fail to have in effect any such rating on the Borrower’s non-credit enhanced senior unsecured
long-term debt, the Borrower shall seek and obtain (if not already in effect), within thirty (30)
days after such rating first ceases to be in effect, a corporate credit rating or a bank loan
rating from Moody’s and/or S&P (or if neither of Moody’s and S&P issue such types of ratings or
ratings comparable thereto, from another nationally recognized rating agency approved by each of
the Borrower and the Administrative Agent), and the Applicable Margin shall thereafter be based on
such ratings in the same manner as provided herein with respect to the Borrower’s senior unsecured
long-term debt rating (with the Applicable Margin in effect prior to the issuance of such corporate
credit rating or bank loan rating being the same as the Applicable Margin in effect at the time the
senior unsecured long-term debt rating ceases to be in effect).

     “Assignment Agreement” means an agreement in substantially the form of Exhibit 10.10
whereby a Lender conveys part or all of its Term Loans to another Person that is, or thereupon
becomes, a Lender, pursuant to Section 10.10.

     “Base Rate” means for any day the greater of:

          (i) the fluctuating commercial loan rate announced by the Administrative Agent from time to
time at its New York, New York office (or other corresponding office, in the case of any successor
Administrative Agent) as its prime rate or base rate for U.S. Dollar loans in the United States of
America in effect on such day (which base rate may not be the lowest rate charged by such Lender on
loans to any of its customers), with any change in the Base Rate resulting from a change in such
announced rate to be effective on the date of the relevant change; and

          (ii) the sum of (x) the rate per annum (rounded upwards, if necessary, to the nearest 1/100th
of 1%) equal to the weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds brokers on such day, as published
by the Federal Reserve Bank of New York on the next Business Day, provided that (A) if such day is
not a Business Day, the rate on such transactions on the immediately preceding Business Day as so
published on the next Business Day shall apply, and (B) if no such rate is published on such next
Business Day, the rate for such day shall be the average of the offered rates quoted to the
Administrative Agent by two (2) federal funds brokers of recognized standing on such day for such
transactions as selected by the Administrative Agent, plus (y) a percentage per annum equal to
one-half of one percent (1/2%) per annum.

     “Base Rate Loan” means a Term Loan bearing interest prior to maturity at the rate specified in
Section 2.7(a).

3

 

     “Borrower” means Transocean Inc., an exempted company incorporated under the laws of the
Cayman Islands, and its successors.

     “Borrowing” means any extension of credit of the same Type made by the Lenders on the same
date by way of Term Loans having a single Interest Period, including any Borrowing advanced,
continued or converted. A Borrowing is “advanced” on the day the Lenders advance funds comprising
such Borrowing to the Borrower, is “continued” (in the case of Eurodollar Loans) on the date a new
Interest Period commences for such Borrowing, and is “converted” (in the case of Eurodollar Loans)
when such Borrowing is changed from one Type of Term Loan to the other, all as requested by the
Borrower pursuant to Section 2.3, 2.4, or 2.13, as the case may be.

     “Borrowing Request” has the meaning ascribed to such term in Section 2.3(a).

     “Bridge Credit Agreement” means the Credit Agreement dated as of September 28, 2007 among the
Borrower, Goldman Sachs Credit Partners L.P., as administrative agent, and the lenders parties
thereto, as the same has been, and may hereafter be from time to time, amended, supplemented,
restated or otherwise modified.

     “Bridge Facility” means the $15,000,000,000 term loan facility established for the Borrower
pursuant to the Bridge Credit Agreement.

     “Business Day” means any day other than a Saturday or Sunday on which banks are not authorized
or required to close in New York, New York and, if the applicable Business Day relates to the
advance or continuation of, conversion into, or payment on a Eurodollar Borrowing, on which banks
are dealing in U.S. Dollar deposits in the interbank market in London, England.

     “Capitalized Lease Obligations” means, for any Person, the aggregate amount of such Person’s
liabilities under all leases of real or personal property (or any interest therein) which is
required to be capitalized on the balance sheet of such Person as determined in accordance with
GAAP.

     “Co-Documentation Agents” means, collectively, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and
Fortis Bank SA/NV, New York Branch, in their capacities as co-documentation agents for the Lenders,
and any successor Co-Documentation Agents; provided, however, that no such Co-Documentation Agent
shall have any duties, responsibilities, or obligations hereunder in such capacity.

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

     “Commitment” means, relative to any Lender, such Lender’s obligations to make Term Loans
pursuant to Section 2.1 in the amount and percentage set forth on its signature page to this
Agreement (which obligation is to be fully satisfied upon funding of the Term Loans on the
Effective Date) and, if applicable to such Lender, such Lender’s obligation to make additional Term
Loans in its portion of any Additional Commitment Amount pursuant to Section 2.13

4

 

(which obligation is to be fully satisfied upon funding of such additional Term Loans on the
related Facility Increase Funding Date for such additional Term Loans).

     “Compliance Certificate” means a certificate in the form of Exhibit 6.6.

     “Confidential Information Memorandum” shall mean the Confidential Information Memorandum of
the Borrower dated February 2008, as the same may be amended, restated and supplemented from time
to time and distributed to the Lenders prior to the Effective Date.

     “Consolidated EBITDA” means, for the Borrower and its Subsidiaries, for any period, the sum,
determined on a consolidated basis, of (i) operating income plus, (ii) without duplication,
and to the extent reflected as a charge in the calculation (or determination) of such operating
income for such period, the sum of (a) depreciation, depletion and amortization expense and (b)
other non-cash charges reducing operating income for such period (excluding any such non-cash
charge to the extent that it represents an accrual or reserve for potential cash charge in any
future period or amortization of a prepaid cash charge that was paid in any prior period),
less (iii) other non-cash gains increasing operating income for such period (excluding any
such non-cash gain to the extent it represents the reversal of an accrual or reserve for potential
cash gain in any prior period), in each case determined in accordance with GAAP for such period; it
being understood and agreed that, with respect to any period prior to the Merger, Consolidated
EBITDA shall be calculated with respect to such period on a pro forma basis using the historical
consolidated financial statements of GSF and its Subsidiaries and the consolidated financial
statements of the Borrower and its Subsidiaries (excluding GSF and its Subsidiaries) which shall be
reformulated as if the Merger had been consummated at the beginning of such period.

     “Consolidated Indebtedness” means all Indebtedness of the Borrower and its Subsidiaries that
would be reflected on a consolidated balance sheet of such Persons prepared in accordance with
GAAP.

     “Consolidated Indebtedness to Total Tangible Capitalization Ratio” means, at any time, the
ratio of Consolidated Indebtedness at such time to Total Tangible Capitalization at such time.

     “Consolidated Net Assets” means, as of any date of determination, an amount equal to the
aggregate book value of the assets of the Borrower, its Subsidiaries and, to the extent of the
equity interest of the Borrower and its Subsidiaries therein, SPVs at such time, minus the current
liabilities of the Borrower and its Subsidiaries, all as determined on a consolidated basis in
accordance with GAAP based on the most recent quarterly or annual consolidated financial statements
of the Borrower referred to in Section 5.8 or delivered (or publicly filed) as provided in Section
6.6(a), as the case may be.

     “Consolidated Tangible Net Worth” means, as of any date of determination, consolidated
shareholders equity of the Borrower and its Subsidiaries determined in accordance with GAAP but
excluding the effect on shareholders equity of cumulative foreign exchange translation adjustments,
and less the net book amount of all assets of the Borrower and its Subsidiaries that would
be classified as intangible assets on the consolidated balance sheet of the Borrower as of

5

 

such date prepared in accordance with GAAP. For purposes of this definition, SPVs shall be
accounted for pursuant to the equity method of accounting.

     “Controlling Affiliate” means for any Person, (i) any other Person that directly or indirectly
through one or more intermediaries controls, or is under common control with, such Person, and (ii)
any other Person owning beneficially or controlling ten percent (10%) or more of the equity
interests having ordinary voting power for the election of directors of such Person. As used in
this definition, “control” means the power, directly or indirectly, to direct or cause the
direction of management or policies of a Person (through ownership of voting securities or other
equity interests, by contract or otherwise).

     “Co-Syndication Agents” means, collectively, Calyon New York Branch and JPMorgan Chase Bank,
N.A., acting in their capacities as co-syndication agents for the Lenders, and any successor
Co-Syndication Agents; provided, however, that the Co-Syndication Agents shall not have any duties,
responsibilities, or obligations hereunder in such capacity.

     “Credit Documents” means this Agreement, the Notes, and any Subsidiary Guaranties in effect
from time to time.

     “Currency Rate Protection Agreement” means any foreign currency exchange and future
agreements, arrangements and options designed to protect against fluctuations in currency exchange
rates.

     “Default” means any event or condition the occurrence of which would, with the passage of time
or the giving of notice, or both, constitute an Event of Default.

     “Dollar” and “U.S. Dollar” and the sign “$” mean lawful money of the United States of America.

     “Dollar Equivalent” and “U.S. Dollar Equivalent” mean, on any date of determination, (i) with
respect to any amount in Dollars, such amount, and (ii) with respect to any amount in any currency
other than U.S. Dollars, the equivalent in Dollars of such amount, determined by the Administrative
Agent on any such date using the rate at which such currency may be exchanged into Dollars as set
forth at approximately 11:00 a.m. on such day on the applicable page of the Bloomberg Service
reporting the exchange rate for such currency into Dollars. In the event such exchange rate does
not appear on the applicable page of such service, such exchange rate shall be determined by
reference to such other publicly available services for displaying currency exchange rates as may
be agreed upon by the Administrative Agent and the Borrower, or, in the absence of such agreement,
such exchange rate shall instead be determined by the Administrative Agent based on current market
spot rates; provided if at the time of any such determination, for any reason, no such spot rates
are being quoted, the Administrative Agent, after consultation with the Borrower, may use any
reasonable method it deems appropriate to determine such exchange rate, and such determination
shall be conclusive absent manifest error.

     “Effective Date” means the date this Agreement shall become effective as provided in Section
4.1.

6

 

     “Employee Benefit Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA
which is or was sponsored, maintained or contributed to by, or required to be contributed to by,
the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates.

     “Environmental Claims” means any and all administrative, regulatory or judicial actions,
suits, demands, demand letters, claims, liens, notices of non-compliance or violation,
investigations or proceedings relating to any Environmental Law (“Claims”) or any permit issued
under any Environmental Law, including, without limitation, (i) any and all Claims by governmental
or regulatory authorities for enforcement, cleanup, removal, response, remedial or other actions or
damages pursuant to any applicable Environmental Law, and (ii) any and all Claims by any third
party seeking damages, contribution, indemnification, cost recovery, compensation or injunctive
relief resulting from Hazardous Materials or arising from alleged injury or threat of injury to the
environment.

     “Environmental Law” means any federal, state or local statute, law, rule, regulation,
ordinance, code, policy or rule of common law now or hereafter in effect, including any judicial or
administrative order, consent, decree or judgment, relating to the environment.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any
successor thereto.

     “ERISA Affiliate” means, as applied to any Person, (i) any corporation which is a member of a
controlled group of corporations within the meaning of Section 414(b) of the Code of which that
Person is a member; (ii) any trade or business (whether or not incorporated) which is a member of a
group of trades or businesses under common control within the meaning of Section 414(c) of the Code
of which that Person is a member; and (iii) any member of an affiliated service group within the
meaning of Section 414(m) or (o) of the Code of which that Person, any corporation described in
clause (i) above or any trade or business described in clause (ii) above is a member. Any former
ERISA Affiliate of the Borrower or any of its Subsidiaries shall continue to be considered an ERISA
Affiliate of the Borrower or any such Subsidiary within the meaning of this definition with respect
to the period such entity was an ERISA Affiliate of the Borrower or such Subsidiary and with
respect to liabilities arising after such period for which the Borrower or such Subsidiary could be
liable under the Code or ERISA.

     “ERISA Event” means (i) a “reportable event” within the meaning of Section 4043 of ERISA and
the regulations issued thereunder with respect to any Pension Plan (excluding those for which the
provision for 30-day notice to the PBGC has been waived by regulation); (ii) the failure to meet
the minimum funding standard of Section 412 of the Code with respect to any Pension Plan (whether
or not waived in accordance with Section 412(c) of the Code) or the failure to make by its due date
a required installment under Section 430(j) of the Code with respect to any Pension Plan or the
failure to make any required contribution to a Multiemployer Plan; (iii) the provision by the
administrator of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to
terminate such plan in a distress termination described in Section 4041(c) of ERISA; (iv) the
withdrawal by the Borrower, any of its Subsidiaries or any of

7

 

their respective ERISA Affiliates from any Pension Plan with two or more contributing sponsors
or the termination of any such Pension Plan resulting in liability to the Borrower, any of its
Subsidiaries or any of their respective ERISA Affiliates pursuant to Section 4063 or 4064 of ERISA;
(v) the institution by the PBGC of proceedings to terminate any Pension Plan, or the occurrence of
any event or condition which might constitute grounds under ERISA for the termination of, or the
appointment of a trustee to administer, any Pension Plan; (vi) the imposition of liability on the
Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates pursuant to Section
4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA; (vii) the
withdrawal of the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates in
a complete or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any
Multiemployer Plan if there is any potential liability therefor, or the receipt by the Borrower,
any of its Subsidiaries or any of their respective ERISA Affiliates of notice from any
Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of
ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA;
(viii) the occurrence of an act or omission which could give rise to the imposition on the Borrower
or any of its Subsidiaries of fines, penalties, taxes or related charges under Chapter 43 of the
Code or under Section 409, Section 502(c), (i) or (l), or Section 4071 of ERISA in respect of any
Employee Benefit Plan; (ix) the assertion of a material claim (other than routine claims for
benefits) against any Employee Benefit Plan other than a Multiemployer Plan or the assets thereof,
or against the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates in
connection with any Employee Benefit Plan; (x) receipt from the U.S. Internal Revenue Service of
notice of the failure of any Pension Plan (or any other Employee Benefit Plan intended to be
qualified under Section 401(a) of the Code) to qualify under Section 401(a) of the Code, or the
failure of any trust forming part of any Pension Plan to qualify for exemption from taxation under
Section 501(a) of the Code; or (xi) the imposition of a Lien pursuant to Section 430(k) of the Code
or pursuant to ERISA, or a violation of Section 436 of the Code, with respect to any Pension Plan.

     “Eurodollar”, when used in reference to any Term Loan or Borrowing, means such Term Loan, or
the Term Loans comprising such Borrowing, shall bear interest at a rate determined by reference to
Adjusted LIBOR and the Applicable Margin.

     “Eurodollar Loan” means a Term Loan bearing interest before maturity at the rate specified in
Section 2.7(b).

     “Event of Default” means any of the events or circumstances specified in Section 7.1.

     “Facility Increase Expiration Date” means March 13, 2009.

     “Facility Increase Funding Date” means the date (which must be a Business Day) requested by
the Borrower and agreed by the Administrative Agent as the funding date for any additional Term
Loans pursuant to Section 2.13, or such other Business Day prior to the Facility Increase
Expiration Date as may be agreed by the Borrower and the Administrative Agent.

     “Foreign Plan” means any pension, profit sharing, deferred compensation, or other employee
benefit plan, program or arrangement maintained by any foreign Subsidiary of the

8

 

Borrower which, under applicable local law, is required to be funded through a trust or other
funding vehicle, but shall not include any benefit provided by a foreign government or its
agencies.

     “GAAP” means generally accepted accounting principles from time to time in effect as set forth
in the opinions and pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and the statements and pronouncements of the Financial Accounting
Standards Board or in such other statements, opinions and pronouncements by such other entity as
may be approved by a significant segment of the U.S. accounting profession.

     “Governmental Authority” means the government of the United States of America, any other
nation or any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government.

     “GSF” means GlobalSantaFe Corporation, a Cayman Islands company that was the subject of the
Merger with Merger Sub pursuant to the Merger Agreement.

     “Guarantor” means any Subsidiary of the Borrower required to execute and deliver a Subsidiary
Guaranty hereunder pursuant to Section 6.12, in each case unless and until the relevant Subsidiary
Guaranty is released pursuant to Section 6.12.

     “Guaranty” by any Person means all contractual obligations (other than endorsements in the
ordinary course of business of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business) of such Person guaranteeing any Indebtedness of
any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including,
without limitation, all obligations incurred through an agreement, contingent or otherwise, by such
Person: (i) to purchase such Indebtedness or to purchase any property or assets constituting
security therefor, primarily for the purpose of assuring the owner of such Indebtedness of the
ability of the primary obligor to make payment of such Indebtedness; or (ii) to advance or supply
funds (x) for the purchase or payment of such Indebtedness, or (y) to maintain working capital or
other balance sheet condition, or otherwise to advance or make available funds for the purchase or
payment of such Indebtedness, in each case primarily for the purpose of assuring the owner of such
Indebtedness of the ability of the primary obligor to make payment of such Indebtedness; or (iii)
to lease property, or to purchase securities or other property or services, of the primary obligor,
primarily for the purpose of assuring the owner of such Indebtedness of the ability of the primary
obligor to make payment of such Indebtedness; or (iv) otherwise to assure the owner of such
Indebtedness of the primary obligor against loss in respect thereof. For the purpose of all
computations made under this Agreement, the amount of a Guaranty in respect of any Indebtedness
shall be deemed to be equal to the amount that would apply if such Indebtedness was the direct
obligation of such Person rather than the primary obligor or, if less, the maximum aggregate
potential liability of such Person under the terms of the Guaranty.

9

 

     “Hazardous Material” has the meaning ascribed to such term in the Comprehensive Environmental
Response Compensation and Liability Act of 1980, as amended by the Superfund Amendments and
Reauthorization Acts of 1986, and shall also include petroleum, including crude oil or any fraction
thereof, or any other substance defined as “hazardous” or “toxic” or words with similar meaning and
effect under any Environmental Law applicable to the Borrower or any of its Subsidiaries.

     “Highest Lawful Rate” means the maximum nonusurious interest rate, if any, that any time or
from time to time may be contracted for, taken, reserved, charged or received on any Loans, under
laws applicable to any of the Lenders which are presently in effect or, to the extent allowed by
applicable law, under such laws which may hereafter be in effect and which allow a higher maximum
nonusurious interest rate than applicable laws now allow. Determination of the rate of interest
for the purpose of determining whether any Loans are usurious under all applicable laws shall be
made by amortizing, prorating, allocating, and spreading, in equal parts during the period of the
full stated term of the Loans, all interest at any time contracted for, taken, reserved, charged or
received from the Borrower in connection with the Loans.

     “Indebtedness” means, for any Person, the following obligations of such Person, without
duplication: (i) obligations of such Person for borrowed money; (ii) obligations of such Person
representing the deferred purchase price of property or services other than accounts payable and
accrued liabilities arising in the ordinary course of business and other than amounts which are
being contested in good faith and for which reserves in conformity with GAAP have been provided;
(iii) obligations of such Person evidenced by bonds, notes, bankers acceptances, debentures or
other similar instruments of such Person, or obligations of such Person arising, whether absolute
or contingent, out of letters of credit issued for such Person’s account or pursuant to such
Person’s application securing Indebtedness; (iv) obligations of other Persons, whether or not
assumed, secured by Liens (other than Permitted Liens) upon property or payable out of the proceeds
or production from property now or hereafter owned or acquired by such Person, but only to the
extent of such property’s fair market value; (v) Capitalized Lease Obligations of such Person; (vi)
obligations under Interest Rate Protection Agreements and Currency Rate Protection Agreements; and
(vii) obligations of such Person pursuant to a Guaranty of any of the foregoing obligations of
another Person; provided, however, Indebtedness shall exclude Non-recourse Debt and any
Indebtedness attributable to the mark-to-market treatment of obligations of the type described in
clause (vi) in the definition of Indebtedness and any actual fair value adjustment arising from any
Interest Rate Protection Agreements and Currency Rate Protection Agreements that have been
cancelled or otherwise terminated before their scheduled expiration, in each case in respect of
Interest Rate Protection Agreements and Currency Rate Protection Agreements entered into in the
ordinary course of business and not for investment or speculative purposes. For purposes of this
Agreement, the Indebtedness of any Person shall include the Indebtedness of any partnership or
joint venture to the extent such Indebtedness is recourse to such Person.

     “Interest Payment Date” means (a) with respect to any Base Rate Loan, the last day of each
March, June, September and December and (b) with respect to any Eurodollar Loan, the last day of
the Interest Period applicable to the Borrowing of which such Eurodollar Loan is a part and, in the
case of a Eurodollar Borrowing with an Interest Period of more than three months’

10

 

duration, each day prior to the last day of such Interest Period that occurs at intervals of
three months’ duration after the first day of such Interest Period.

     “Interest Period” means with respect to any Eurodollar Borrowing, the period commencing on the
date of such Eurodollar Borrowing and ending on the numerically corresponding day in the calendar
month that is one, two, three or six months thereafter (or if available from each Lender making a
Term Loan as part of such Borrowing, any other period), in each case as the Borrower may elect.
For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is
made and, in the case of a Borrowing, thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

     “Interest Rate Protection Agreement” means any interest rate swap, interest rate cap, interest
rate collar, or other interest rate hedging agreement or arrangement designed to protect against
fluctuations in interest rates.

     “Joinder Agreement” means an agreement in substantially the form of Exhibit 2.13
signed by the Borrower, by each Additional Lender, and by each other Lender whose Commitment is
to be increased pursuant to Section 2.13, setting forth the new Commitments of such Lenders and
setting forth the agreement of each Additional Lender to become a party to this Agreement and to be
bound by all the terms and provisions hereof.

     “Joint-Lead Arrangers” means, collectively, Citigroup Global Markets, Inc., Calyon New York
Branch, and J.P. Morgan Securities Inc., acting in their capacities as joint lead arrangers for the
credit facility described in this Agreement; provided, however, that no such Joint Lead Arrangers
shall have any duties, responsibilities, or obligations hereunder in such capacity.

     “Lender” is defined in the preamble.

     “Lending Office” means the “Lending Office” of such Lender (or an Affiliate of such Lender)
designated for each Type of Term Loan in the Administrative Questionnaire submitted by such Lender
or such other office of such Lender (or an Affiliate of such Lender) as such Lender may from time
to time specify to the Administrative Agent and the Borrower as the office by which its Term Loans
of such Type are to be made and maintained.

     “Leverage Ratio” means, at any date of determination, the ratio of (a) (i) Consolidated
Indebtedness of the Borrower and its Subsidiaries as at the end of the then most recently ended
fiscal quarter of the Borrower minus (ii) the aggregate amount as of such date of unrestricted cash
on which no Lien or restriction whatsoever exists (other than usual and customary rights of set-off
for deposit account fees and expenses required by financial institutions where such cash is
deposited) and cash deposited in restricted accounts that require the payee of such Indebtedness to
consent to withdrawal thereof and earmarked for amortization of such Indebtedness (other than the
portion thereof payable against interest) to (b) Consolidated EBITDA for the then most recently
ended fiscal quarter of the Borrower and the immediately preceding three fiscal quarters.

11

 

     “LIBOR Rate” means, for any Interest Period for each Eurodollar Loan, an interest rate per
annum equal to the rate per annum appearing on Reuters LIBOR01 Page (or any successor page) as the
London interbank offered rate for deposits in U.S. Dollars at approximately 11:00 A.M. (London
time) two Business Days prior to the first day of such Interest Period for a term comparable to
such Interest Period or, if for any reason such rate is not available, the average (rounded to the
nearest 1/100 of 1% per annum) of the rate per annum at which deposits in U.S. Dollars are offered
by the principal office of each of the Reference Banks in London, England to prime banks in the
London interbank market at 11:00 A.M. (London time) two Business Days before the first day of such
Interest Period in an amount substantially equal to such Reference Bank’s Eurodollar Loan
comprising part of such Borrowing to be outstanding during such Interest Period and for a period
equal to such Interest Period. If the Reuters LIBOR01 Page (or any successor page) is unavailable,
the LIBOR Rate for any Interest Period for each Eurodollar Loan comprising part of the same
Borrowing shall be determined by the Administrative Agent on the basis of applicable rates
furnished to and received by the Administrative Agent from the Reference Banks, such rates being
the rates at which such Reference Banks are offered deposits in U.S. Dollar of approximately
$5,000,000 for a period approximately equal to such Interest Period in the London interbank market
at 11:00 A.M. (London time) two Business Days before the first day of such Interest Period.

     “Lien” means any interest in any property or asset in favor of a Person other than the owner
of such property or asset and securing an obligation owed to, or a claim by, such Person, whether
such interest is based on the common law, statute or contract, including, but not limited to, the
security interest lien arising from a mortgage, encumbrance, pledge, conditional sale, security
agreement or trust receipt, or a lease, consignment or bailment for security purposes.

     “Loan” means (i) a Base Rate Loan or (ii) a Eurodollar Loan, as the case may be, and “Loans”
means two or more of any such Loans.

     “Material Adverse Effect” means a material adverse effect on (i) the business, assets,
operations or condition of the Borrower and its Subsidiaries taken as a whole, or (ii) the
Borrower’s ability to perform any of its payment obligations under the Agreement or the Notes.

     “Maturity Date” means the earlier of (i) the Scheduled Maturity Date, and (ii) the date on
which the Term Loans have become due and payable pursuant to Section 7.2 or 7.3.

     “Merger” means the merger (by way of a scheme of arrangement qualifying as an amalgamation
under the Companies Law of the Cayman Islands) of GSF with Merger Sub pursuant to the Merger
Agreement.

     “Merger Agreement” means that certain Agreement and Plan of Merger dated as of July 21, 2007
among the Borrower, GSF and Merger Sub, including all schedules, exhibits and annexes thereto.

     “Merger Sub” means Transocean Worldwide Inc., a Cayman Islands company wholly owned by the
Borrower.

12

 

     “Moody’s” means Moody’s Investors Service, Inc. or any successor thereto.

     “Multiemployer Plan” means any Employee Benefit Plan that is a “multiemployer plan” as defined
in Section 3(37) of ERISA

     “Non-recourse Debt” means with respect to any Person (i) obligations of such Person against
which the obligee has no recourse to such Person except as to certain named or described present or
future assets or interests of such Person, and (ii) the obligations of SPVs to the extent the
obligee thereof has no recourse to the Borrower or any of its Subsidiaries, except as to certain
specified present or future assets or interests of SPVs.

     “Note” means any of the promissory notes of the Borrower defined in Section 2.9(e).

     “Obligations” means all obligations of the Borrower to pay fees, costs and expenses hereunder,
to pay principal or interest on the Term Loans and to pay any other obligations to the
Administrative Agent or any Lender arising under any Credit Document.

     “Other Agents” means, collectively, the Co-Syndication Agents and the Co-Documentation Agents.

     “Pacific Drilling Debt” means the Indebtedness incurred to finance up to 50% of the
construction and mobilization costs of two drillships under construction in Korea to be owned by
the Pacific Drilling joint venture, as more particularly described on Schedule 5.15.

     “Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56, signed into law October
26, 2001, as amended from time to time.

     “PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto.

     “Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, that is
subject to Section 412 of the Code or Section 302 of ERISA.

     “Percentage” means, for each Lender, the percentage of the Aggregate Commitment Amount
represented by such Lender’s Commitment; provided, that, if the Commitments have been funded, each
Lender’s Percentage shall be calculated based on such Lender’s pro rata share of the total Term
Loans then outstanding or, if no Term Loans are then outstanding, based on such Lender’s pro rata
share of the total Term Loans that were outstanding immediately prior to the final payment thereof,
subject to any assignments by such Lender of Obligations pursuant to Section 10.10.

     “Performance Guaranties” means all Guaranties of the Borrower or any of its Subsidiaries
delivered in connection with the construction financing of drill ships, offshore mobile drilling
units or offshore drilling rigs for which firm drilling contracts have been obtained by the
Borrower, any of its Subsidiaries or a SPV.

13

 

     “Performance Letters of Credit” means all letters of credit for the account of the Borrower,
any Subsidiary or a SPV issued as support for Non-recourse Debt or a Performance Guaranty.

     “Permitted Business” has the meaning ascribed to such term in Section 6.8.

     “Permitted Liens” means the Liens permitted as described in Section 6.11.

     “Person” means an individual, partnership, corporation, limited liability company,
association, trust, unincorporated organization or any other entity or organization, including a
government or any agency or political subdivision thereof.

     “Plan” means an employee pension benefit plan covered by Title IV of ERISA or subject to the
minimum funding standards under Section 412 of the Code that is either (i) maintained by the
Borrower or any of its Subsidiaries, or (ii) maintained pursuant to a collective bargaining
agreement or any other arrangement under which more than one employer makes contributions and to
which the Borrower or any of its Subsidiaries is then making or accruing an obligation to make
contributions or has within the preceding five (5) plan years made or had an obligation to make
contributions.

     “Reference Banks” means Citibank, N.A. and JPMorgan Chase Bank, N.A., or if any such Lender
assigns all of its Commitment and the Term Loans owing to it in accordance with Section 10.10, such
other Lender as may be designated by the Administrative Agent and approved by the Borrower (such
approval not to be unreasonably withheld).

     “Required Lenders” means, Lenders having Term Credit Exposures representing more than 50% of
the sum of the total Term Credit Exposures for all Lenders at such time.

     “Revolving Credit Agreements” means the Five-Year Revolving Credit Agreement dated as of
November 27, 2007 and the 364-Day Revolving Credit Agreement dated as of December 3, 2007, in each
case among the Borrower, the lenders that are parties thereto, and JPMorgan Chase Bank, N.A., as
Administrative Agent, and in each case as the same may be amended, restated, supplemented or
otherwise modified from time to time.

     “Sale-Leaseback Transaction” means any arrangement whereby the Borrower or a Subsidiary shall
sell or transfer any property, real or personal, used or useful in its business, whether now owned
or hereafter acquired, and thereafter rent or lease property that it intends to use for
substantially the same purpose or purposes as the property sold or transferred; provided, however,
Sale-Leaseback Transaction shall exclude any transaction between (i) the Borrower and any of its
Subsidiaries, and (ii) any Subsidiary of the Borrower and any other Subsidiary of the Borrower.

     “S&P” means Standard & Poor’s Ratings Group or any successor thereto.

     “SPV” means any Person that is designated by the Borrower as a SPV, provided that the
Borrower shall not designate as a SPV any Subsidiary that owns, directly or indirectly, any other

14

 

Subsidiary that has total assets (including assets of any Subsidiaries of such other
Subsidiary, but excluding any assets that would be eliminated in consolidation with the Borrower
and its Subsidiaries) which equates to at least five percent (5%) of the Borrower’s Total Assets,
or that had net income (including net income of any Subsidiaries of such other Subsidiary, all
before discontinued operations and income or loss resulting from extraordinary items, but excluding
revenues and expenses that would be eliminated in consolidation with the Borrower and its
Subsidiaries and excluding any loss or gain resulting from the early extinguishment of
Indebtedness) during the most recently completed fiscal year of the Borrower in excess of the
greater of (i) $1,000,000, and (ii) fifteen percent (15%) of the net income (before discontinued
operations and income or loss resulting from extraordinary items and excluding any loss or gain
resulting from the early extinguishment of Indebtedness) for the Borrower and its Subsidiaries, all
as determined on a consolidated basis in accordance with GAAP during such fiscal year of the
Borrower. The Borrower may elect to treat any Subsidiary as a SPV (provided such Subsidiary would
otherwise qualify as such), and may rescind any such prior election, by giving written notice
thereof to the Administrative Agent specifying the name of such Subsidiary or SPV, as the case may
be, and the effective date of such election, which shall be a date within sixty (60) days after the
date such notice is given. The election to treat a particular Person as a SPV may only be made
once.

     “Scheduled Maturity Date” means March 13, 2010.

     “Significant Subsidiary” has the meaning ascribed to it under Regulation S-X promulgated under
the Securities Exchange Act of 1934, as amended.

     “Statutory Reserve Rate” means, with respect to any currency, the aggregate of the maximum
reserve, liquid asset or similar percentages (including any marginal, special, emergency or
supplemental reserves) expressed as a decimal established by any Governmental Authority of the
United States or of the jurisdiction of such currency or any jurisdiction in which Loans in such
currency are made to which banks in such jurisdiction are subject for any category of deposits or
liabilities customarily used to fund loans in such currency or by reference to which interest rates
applicable to loans in such currency are determined. Such reserve, liquid asset or similar
percentages shall include those imposed pursuant to Regulation D of the Board of Governors of the
Federal Reserve System. Eurodollar Loans shall be deemed to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to any Lender under Regulation D or any other applicable law, rule or
regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective
date of any change in any reserve percentage.

     “Sub-Agent” means any affiliate or correspondent bank of the Administrative Agent designated
by it to perform any duties or responsibilities of the Administrative Agent under this Agreement
and the other Credit Documents.

     “Subsidiary” means, for any Person, any other Person (other than, except in the context of
Section 6.6(a), a SPV) of which more than fifty percent (50%) of the outstanding stock or
comparable equity interests having ordinary voting power for the election of the board of directors
of such corporation, any managers of such limited liability company or similar

15

 

governing body (irrespective of whether or not at the time stock or other equity interests of
any other class or classes of such corporation or other entity shall have or might have voting
power by reason of the happening of any contingency), is at the time directly or indirectly owned
by such former Person or by one or more of its Subsidiaries.

     “Subsidiary Debt Basket Amount” has the meaning ascribed to such term in Section 6.12(i).

     “Subsidiary Guaranty” means any Guaranty of any Subsidiary delivered pursuant to Section
6.12(j).

     “Taxes” has the meaning ascribed to such term in Section 5.10.

     “Term Credit Exposure” means with respect to any Lender at any time, the sum of (i) such
Lender’s applicable Percentage of the principal amounts of all outstanding Term Loans, and (ii) any
remaining unfunded portion of such Lender’s Commitment in effect at such time.

     “Term Loan” has the meaning ascribed to such term in Section 2.1.

     “Total Assets” means, as of any date of determination, the aggregate book value of the assets
of the Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP as
of such date.

     “Total Tangible Capitalization” means, as of any date of determination, the sum of
Consolidated Indebtedness plus Consolidated Tangible Net Worth as of such date.

     “Type”, when used in reference to any Term Loan or Borrowing, refers to whether the rate of
interest on such Term Loan, or on the Term Loans comprising such Borrowing, is determined by
reference to Adjusted LIBOR or the Base Rate.

     “Unfunded Vested Liabilities” means, for any Plan at any time, the amount (if any) by which
the present value of all vested nonforfeitable accrued benefits under such Plan (determined on the
basis of the actuarial assumptions specified for funding purposes in the most recent actuarial
valuation for such Plan) exceeds the fair market value of all Plan assets allocable to such
benefits, determined as of the then most recent valuation date for such Plan, but only to the
extent that such excess represents a potential liability of the Borrower or any of its Subsidiaries
to the PBGC or such Plan.

     “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete
or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle
E of Title IV of ERISA.

     Section 1.2. Time of Day. Unless otherwise expressly provided, all references to time
of day in this Agreement and the other Credit Documents shall be references to New York, New York
time.

16

 

     Section 1.3. Accounting Terms; GAAP. Except as otherwise expressly provided herein,
and subject to the provisions of Section 10.18, all terms of an accounting or financial nature
shall be construed in accordance with GAAP, as in effect from time to time.

ARTICLE 2. TERM CREDIT FACILITY.

     Section 2.1. Term Commitments. Subject to the terms and conditions hereof, each
Lender agrees to make available to Borrower on the Effective Date its pro rata share (based on its
Percentage) of term loans in U.S. dollars (each a “Term Loan” and collectively the “Term Loans”)
pursuant to a Borrowing Request submitted by the Borrower as provided in Section 2.3, provided that
(i) the total amount of all Term Loans made pursuant to this Agreement shall not exceed the
Aggregate Commitment Amount, and (ii) no Lender shall be required to make Term Loans pursuant to
this Agreement in an aggregate amount exceeding its Commitment then in effect. Term Loans, once
repaid, may not be reborrowed (except for a “deemed” reborrowing in connection with the funding of
additional Term Loans as set forth in Section 2.13(e); provided that no additional
Term Loans shall in fact be required to be made by any Lender under Section 2.13 except for any
portion of the Additional Commitment Amount to which such Lender shall have agreed pursuant to
Section 2.13). The obligations of each Lender hereunder shall be several and not joint.

     Section 2.2. Types of Term Loans. Borrowings of Term Loans may be made and shall be
outstanding as either Base Rate Loans or Eurodollar Loans, as selected by the Borrower pursuant to
Section 2.3, 2.4, or 2.13, as the case may be.

     Section 2.3. Procedure for Borrowing.

     (a) Notice to the Administrative Agent. The Borrower shall give notice to the
Administrative Agent by no later than (i) 12:00 P.M. at least three (3) Business Days before the
date on which the Borrower requests the Lenders to advance a Borrowing comprised of Eurodollar
Loans, and (ii) 12:00 P.M. on the date the Borrower requests the Lenders to advance a Borrowing
comprised of Base Rate Loans, in each case pursuant to a duly completed Borrowing Request
substantially in the form of Exhibit 2.3 (each a “Borrowing Request”) executed on behalf of
Borrower by two of its officers. Each such Borrowing Request shall be given by telephone or
facsimile (which notice shall be irrevocable once given and, if by telephone, shall be promptly
confirmed in writing) and shall specify (i) the amount and Type of Term Loans to comprise such
Borrowing, (ii) the requested funding date for such Borrowing, which shall be a Business Day, and
(iii) if such Borrowing is to be comprised of Eurodollar Loans, the initial Interest Period to be
applicable to such Borrowing. The Borrower agrees that the Administrative Agent may rely on any
such telephonic or facsimile notice given by any Person it in good faith believes is an authorized
representative of the Borrower without the necessity of independent investigation and that, if any
such notice by telephone conflicts with any written confirmation, such telephonic notice shall govern if the Administrative Agent has
acted in reliance thereon.

     (b) Notice to the Lenders. The Administrative Agent shall give prompt telephonic,
telex or facsimile notice to each Lender of any notice received pursuant to this Section 2.3

17

 

relating to any Borrowing. The Administrative Agent shall give notice to the Borrower and each
Lender by like means of the interest rate applicable to each Borrowing of Eurodollar Loans (but, if
such notice is given by telephone, the Administrative Agent shall confirm such rate in writing)
promptly after the Administrative Agent has made such determination.

     Section 2.4. Procedure for Continuation or Conversion of Term Loans.

     (a) Notice of Continuation or Conversion of Outstanding Borrowings. The Borrower may
from time to time elect to change or continue the Type of each Borrowing or a portion thereof (such
portion to be in an amount not less than $5,000,000 and in an integral multiple of $1,000,000), as
follows: (i) if such Borrowing is of Eurodollar Loans, the Borrower may continue part or all of
such Borrowing as Eurodollar Loans for an Interest Period specified by the Borrower or convert part
or all of such Borrowing into Base Rate Loans on the last day of the Interest Period applicable
thereto, or the Borrower may earlier convert part or all of such Borrowing into Base Rate Loans so
long as it pays the breakage fees and funding losses provided in Section 2.12; and (ii) if such
Borrowing is of Base Rate Loans, the Borrower may convert all or part of such Borrowing into
Eurodollar Loans for an Interest Period specified by the Borrower on any Business Day, in each case
pursuant to notices of continuation or conversion as set forth below. The Borrower may select
multiple Interest Periods for Borrowings comprised of Eurodollar Loans, provided that at no time
shall the number of different Interest Periods for outstanding Borrowings comprised of Eurodollar
Loans exceed ten (10) (it being understood for such purposes that (x) Interest Periods of the same
duration, but commencing on different dates, shall be counted as different Interest Periods, and
(y) all Interest Periods commencing on the same date and of the same duration shall be counted as
one Interest Period regardless of the number of Borrowings or Term Loans involved). Notices of the
continuation of such Eurodollar Loans for an additional Interest Period or of the conversion of
part or all of such Eurodollar Loans into Base Rate Loans or of such Base Rate Loans into
Eurodollar Loans must be given by no later than 12:00 P.M. at least three (3) Business Days before
the date of the requested continuation or conversion.

     (b) Manner of Notice. The Borrower shall give such notices concerning the
continuation or conversion of a Borrowing pursuant to this Section 2.4 by telephone or facsimile
(which notice shall be irrevocable once given and, if by telephone, shall be promptly confirmed in
writing) pursuant to a Borrowing Request which shall specify the date of the requested continuation
or conversion (which shall be a Business Day), the amount of the requested Borrowing to be
continued or converted, the Type of Term Loans to comprise such continued or converted Borrowing
and, if such Borrowing is to be comprised of Eurodollar Loans, the Interest Period applicable
thereto. The Borrower agrees that the Administrative Agent may rely on any such telephonic or
facsimile notice given by any Person it in good faith believes is an authorized representative of
the Borrower without the necessity of independent investigation and that, if any such notice by telephone conflicts with any written confirmation, such telephonic notice shall
govern if the Administrative Agent has acted in reliance thereon.

     (c) Notice to the Lenders. The Administrative Agent shall give prompt telephonic,
telex or facsimile notice to each Lender of any notice received pursuant to this Section 2.4
relating to a continuation or conversion of any Borrowing. The Administrative Agent shall give

18

 

notice to the Borrower and each Lender by like means of the interest rate applicable to each
Borrowing of Eurodollar Loans (but, if such notice is given by telephone, the Administrative Agent
shall confirm such rate in writing) promptly after the Administrative Agent has made such
determination.

     (d) Borrower’s Failure to Notify. If the Borrower fails to give notice pursuant to
this Section 2.4 of the continuation or conversion of any outstanding principal amount of a
Borrowing comprised of Eurodollar Loans, and has not notified the Administrative Agent by 12:00
P.M. at least three (3) Business Days before the last day of the Interest Period for any Borrowing
comprised of Eurodollar Loans that it intends to repay such Borrowing, the Borrower shall be deemed
to have requested the continuation of such Borrowing as Eurodollar Loans with an Interest Period of
one (1) month, so long as no Event of Default shall have occurred and be continuing or would occur
as a result of such Borrowing but otherwise disregarding the conditions to Borrowings set forth in
Section 4.2. Upon the occurrence and during the continuance of any Event of Default, and upon
notice thereof from the Administrative Agent to the Borrower, all Eurodollar Loans will
automatically, on the last day of the then existing respective Interest Periods therefor, convert
into a Base Rate Loan.

     (e) Conversion. If the Borrower shall elect to convert any particular Borrowing
pursuant to this Section 2.4 from one Type of Term Loan to the other Type only in part, then, from
and after the date on which such conversion shall be effective, such particular Borrowing shall,
for all purposes of this Agreement (including, without limitation, for purposes of subsequent
application of this sentence) be deemed to instead constitute two Borrowings (each originally
commencing on the same date as such particular Borrowing), one comprised of (subject to subsequent
conversion in accordance with this Agreement) Eurodollar Loans in an aggregate principal amount
equal to the portion of such Borrowing so elected by the Borrower to be comprised of Eurodollar
Loans and the second comprised of (subject to subsequent conversion in accordance with this
Agreement) Base Rate Loans in an aggregate principal amount equal to the portion of such particular
Borrowing so elected by the Borrower to be comprised of Base Rate Loans. If the Borrower shall
elect to have multiple Interest Periods apply to any such particular Borrowing comprised of
Eurodollar Loans, then, from and after the date such multiple Interest Periods commence, such
particular Borrowing shall, for all purposes of this Agreement (including, without limitation, for
purposes of subsequent application of this sentence), be deemed to constitute a number of separate
Borrowings (each originally commencing on the same date as such particular Borrowing) equal to the
number of, and corresponding to, the different Interest Periods so selected, each such deemed
separate Borrowing corresponding to a particular selected Interest Period comprised of (subject to
subsequent conversion in accordance with this Agreement) Eurodollar Loans in an aggregate principal
amount equal to the portion of such particular Borrowing so elected by the Borrower to have such
Interest Period. This Section 2.4(e) shall be applied appropriately in the event that the Borrower shall make the elections described in the two preceding sentences at the same time
with respect to the same particular Borrowing.

     Section 2.5. Interest Periods. As provided in Sections 2.3 and 2.4, at the time of
each request for a Borrowing of Term Loans, or for the continuation or conversion of any Borrowing
of Term Loans, the Borrower shall select the Interest Period(s) to be applicable to such Term

19

 

Loans from among the available options, subject to the limitations in Section 2.4; provided, however,
that:

     (i) the Borrower may not select an Interest Period that extends beyond the Scheduled
Maturity Date;

     (ii) whenever the last day of any Interest Period would otherwise be a day that is not
a Business Day, the last day of such Interest Period shall either be (i) extended to the
next succeeding Business Day, or (ii) in the case of Eurodollar Loans only, reduced to the
immediately preceding Business Day if the next succeeding Business Day is in the next
calendar month; and

     (iii) for purposes of determining an Interest Period, a month means a period starting
on one day in a calendar month and ending on the numerically corresponding day in the next
calendar month; provided, however, that if there is no such numerically corresponding day in
the month in which an Interest Period is to end or if an Interest Period begins on the last
Business Day of a calendar month, then in the case of Eurodollar Loans only, such Interest
Period shall end on the last Business Day of the calendar month in which such Interest
Period is to end.

     Section 2.6. Funding of Term Loans.

     (a) Disbursement of Term Loans. Not later than 12:00 P.M. with respect to Borrowings
comprised of Eurodollar Loans, and 3:00 P.M. with respect to Borrowings comprised of Base Rate
Loans, on the date of any requested advance of a new Borrowing of Term Loans, each Lender, subject
to all other provisions hereof, shall make available for the account of its applicable Lending
Office its portion of such Borrowing in funds immediately available for the benefit of the
Administrative Agent in the applicable Administrative Agent’s Account and according to the payment
instructions of the Administrative Agent. The Administrative Agent shall make the proceeds of each
such Borrowing available in immediately available funds to the Borrower (or as directed in writing
by the Borrower) on such date. Acceptance by the Borrower of any late amount shall not be deemed a
waiver by the Borrower of any rights it may have against any Lender making funds available after
the time prescribed above. No Lender shall be responsible to the Borrower for any failure by
another Lender to fund its portion of a Borrowing, and no such failure by a Lender shall relieve
any other Lender from its obligation, if any, to fund its portion of a Borrowing.

     (b) Administrative Agent Reliance on Lender Funding. Unless the Administrative Agent
shall have been notified by a Lender prior to the time at which such Lender is scheduled to make payment to the Administrative Agent of the funds comprising its portion of a Borrowing
(which notice shall be effective upon receipt) that such Lender does not intend to make such
payment, the Administrative Agent may assume that such Lender has made such payment when due and in
reliance upon such assumption may (but shall not be required to) make available to the Borrower the
portion of the Borrowing to be made by such Lender and, if any Lender has not in fact made such
payment to the Administrative Agent, such Lender shall, on demand, pay to the Administrative Agent
the amount made available to the Borrower attributable to such Lender

20

 

together with interest thereon for each day during the period commencing on the date such amount was made available to the
Borrower and ending on (but excluding) the date such Lender pays such amount to the Administrative
Agent at a rate per annum equal to the Administrative Agent’s cost of funds for such amount. If
such amount is not received from such Lender by the Administrative Agent immediately upon demand,
the Borrower will, on demand, repay to the Administrative Agent the portion of the Borrowing
attributable to such Lender with interest thereon at a rate per annum equal to the interest rate
applicable to the relevant Borrowing, but the Borrower will in no event be liable to pay any
amounts otherwise due pursuant to Section 2.12 in respect of such repayment. Nothing in this
subsection shall be deemed to relieve any Lender from any obligation to fund any Term Loans
hereunder or to prejudice any rights which the Borrower may have against any Lender as a result of
any default by such Lender hereunder.

     Section 2.7. Applicable Interest Rates.

     (a) Base Rate Loans. Each Base Rate Loan shall bear interest (computed on the basis
of a 365-day year or 366-day year, as the case may be, and actual days elapsed excluding the date
of repayment) on the unpaid principal amount thereof from the date such Base Rate Loan is made
until maturity (whether by acceleration or otherwise) or until conversion to a Eurodollar Loan, at
a rate per annum equal to the lesser of (i) the Highest Lawful Rate, or (ii) the Base Rate, in each
case from time to time in effect. The Borrower agrees to pay such interest on each Interest
Payment Date for such Base Rate Loan and at maturity (whether by acceleration or otherwise).

     (b) Eurodollar Loans. Each Eurodollar Loan shall bear interest (computed on the
basis of a 360-day year and actual days elapsed, excluding the date of repayment) on the unpaid
principal amount thereof from the date such Eurodollar Loan is made until maturity (whether by
acceleration or otherwise) or until conversion to a Base Rate Loan, at a rate per annum equal to
the lesser of (i) the Highest Lawful Rate, or (ii) the sum of Adjusted LIBOR plus the Applicable
Margin, in each case from time to time in effect. The Borrower agrees to pay such interest on each
Interest Payment Date for such Eurodollar Loan and at maturity (whether by acceleration or
otherwise) or conversion to a Base Rate Loan.

     (c) Rate Determinations. The Administrative Agent shall determine each interest rate
applicable to the Term Loans hereunder insofar as such interest rate involves a determination of
Base Rate, Adjusted LIBOR or LIBOR Rate, or any applicable default rate pursuant to Section 2.8,
and such determination shall be conclusive and binding except in the case of the Administrative
Agent’s manifest error or willful misconduct. The Administrative Agent shall promptly give notice to the Borrower and each Lender of each determination of Adjusted LIBOR
with respect to each Eurodollar Loan.

     Section 2.8. Default Rate. If any payment of principal on any Term Loan is not made
when due after the expiration of the grace period therefor provided in Section 7.1(a) (whether by
acceleration or otherwise), such Term Loan shall bear interest (computed on the basis of a year of
360, 365 or 366 days, as applicable, and actual days elapsed) after any such grace period expires
until such principal then due is paid in full, which the Borrower agrees to pay on demand, at a
rate per annum equal to:

21

 

     (a) for any Base Rate Loan, the lesser of (i) the Highest Lawful Rate, or (ii) the sum of two
percent (2%) per annum plus the Base Rate from time to time in effect (but not less than the Base
Rate in effect at the time such payment was due); and

     (b) for any Eurodollar Loan, the lesser of (i) the Highest Lawful Rate, or (ii) the sum of two
percent (2%) per annum plus the rate of interest in effect thereon at the time of such default
until the end of the Interest Period for such Eurodollar Loan and, thereafter, at a rate per annum
equal to the sum of two percent (2%) per annum plus the Base Rate, in each case from time to time
in effect (but not less than the Base Rate in effect at the time such payment was due).

     It is the intention of the Administrative Agent and the Lenders to conform strictly to usury
laws applicable to them. Accordingly, if the transactions contemplated hereby or any Term Loan or
other Obligation would be usurious as to any of the Lenders under laws applicable to it (including
the laws of the United States of America and the State of New York or any other jurisdiction whose
laws may be mandatorily applicable to such Lender notwithstanding the other provisions of this
Agreement, the Notes or any other Credit Document), then, in that event, notwithstanding anything
to the contrary in this Agreement, the Notes or any other Credit Document, it is agreed as follows:
(i) the aggregate of all consideration which constitutes interest under laws applicable to such
Lender that is contracted for, taken, reserved, charged or received by such Lender under this
Agreement, the Notes or any other Credit Document or otherwise shall under no circumstances exceed
the Highest Lawful Rate, and any excess shall be credited by such Lender on the principal amount of
the Term Loans (or, if the principal amount of the Term Loans shall have been paid in full,
refunded by such Lender to the Borrower); and (ii) in the event that the maturity of the Term Loans
is accelerated by reason of an election of the holder or holders thereof resulting from any Event
of Default hereunder or otherwise, or in the event of any required or permitted prepayment, then
such consideration that constitutes interest under laws applicable to such Lender may never include
more than the Highest Lawful Rate, and excess interest, if any, provided for in this Agreement, the
Notes, any other Credit Document or otherwise shall be automatically canceled by such Lender as of
the date of such acceleration or prepayment and, if theretofore paid, shall be credited by such
Lender on the principal amount of the Term Loans (or if the principal amount of the Term Loans
shall have been paid in full, refunded by such Lender to the Borrower). To the extent that the
Texas Finance Code, Chapters 302 and 303, are relevant to the Administrative Agent and the Lenders
for the purpose of determining the Highest Lawful Rate, the Administrative Agent and the Lenders
hereby elect to determine the applicable rate ceiling under such Chapter by the indicated (weekly)
rate ceiling from time to time in effect, subject to their right subsequently to change such method in
accordance with applicable law. In the event the Term Loans are paid in full by the Borrower prior
to the full stated term of the Term Loans and the interest received from the actual period of the
existence of the Term Loans exceeds the Highest Lawful Rate, the Lenders shall refund to the
Borrower the amount of the excess or shall credit the amount of the excess against amounts owing
under the Term Loans and none of the Administrative Agent or the Lenders shall be subject to any of
the penalties provided by law for contracting for, taking, reserving, charging or receiving
interest in excess of the Highest Lawful Rate.

22

 

     Section 2.9. Repayment of Term Loans; Evidence of Debt.

     (a) Repayment of Term Loans. The Borrower hereby promises to pay to the
Administrative Agent for the account of each Lender, on the Maturity Date, the unpaid amount of
each Term Loan then outstanding.

     (b) Record of Term Loans by Lenders. Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of the Borrower to such
Lender resulting from each Term Loan made by such Lender, including the amounts of principal and
accrued interest payable and paid to such Lender from time to time hereunder.

     (c) Record of Term Loans by Administrative Agent. The Administrative Agent shall
maintain accounts in which it shall record (i) the amount of each Term Loan made hereunder, the
Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or
accrued interest due and payable or to become due and payable from the Borrower to each Lender
hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the
account of the Lenders and each Lender’s share thereof.

     (d) Evidence of Obligations. The entries made in the accounts maintained pursuant to
paragraph (b) or (c) of this Section shall be prima facie evidence of the existence
and amounts of the obligations recorded therein; provided that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein shall not in any manner affect
the obligation of the Borrower to repay the Term Loans in accordance with the terms of this
Agreement.

     (e) Notes. The Term Loans outstanding to the Borrower from each Lender shall, at the
written request of such Lender, be evidenced by a promissory note of the Borrower payable to such
Lender in the form of Exhibit 2.9 (each a “Note”). The Borrower agrees to execute and
deliver to the Administrative Agent, for the benefit of each Lender requesting a Note as aforesaid,
an original of each such Note, appropriately completed, to evidence the respective Term Loans made
by such Lender hereunder, within ten (10) Business Days after the Borrower receives a written
request therefor.

     (f) Recording of Term Loans and Payments on Notes. Each holder of a Note shall record
on its books and records or on a schedule to its Note (and prior to any transfer of its Notes shall
endorse thereon or on schedules forming a part thereof appropriate notations to evidence) the
amount of each Term Loan outstanding from it to the Borrower, all payments of principal and interest and the principal balance from time to time outstanding thereon, the type of such
Term Loan and, if a Eurodollar Loan the Interest Period and interest rate applicable thereto. Such
record, whether shown on the books and records of a holder of a Note or on a schedule to its Note,
shall be prima facie evidence as to all such matters; provided, however, that the failure of any
holder to record any of the foregoing or any error in any such record shall not limit or otherwise
affect the obligation of the Borrower to repay all Term Loans outstanding to it hereunder together
with accrued interest thereon. At the request of any holder of a Note and upon such holder
tendering to the Borrower the Note to be replaced, the Borrower shall furnish a new Note to such
holder to replace any outstanding Note and at such time the first notation

23

 

appearing on the schedule on the reverse side of, or attached to, such new Note shall set forth the aggregate unpaid
principal amount of all Term Loans, if any, then outstanding thereon.

     Section 2.10. Optional Prepayments. The Borrower shall have the privilege of
prepaying any Base Rate Loans without premium or penalty at any time in whole or at any time and
from time to time in part (but, if in part, then in an amount which is equal to or greater than
$5,000,000 and in an integral multiple of $1,000,000); provided, however, that the Borrower shall
have given notice of such prepayment to the Administrative Agent no later than 12:00 P.M. on the
date of such prepayment. The Borrower shall have the privilege of prepaying any Eurodollar Loans
(a) without premium or penalty in whole or in part (but, if in part, then in an amount which is
equal to or greater than $5,000,000 and in an integral multiple of $1,000,000) only on the last
Business Day of an Interest Period for such Eurodollar Loan, and (b) at any other time without
premium or penalty except for the breakage fees and funding losses that are required to be paid
pursuant to Section 2.12; provided, however, that the Borrower shall have given notice of such
prepayment to the Administrative Agent no later than 12:00 P.M. at least three (3) Business Days
before the last Business Day of such Interest Period or the proposed prepayment date. Any such
prepayments shall be made by the payment of the principal amount to be prepaid and accrued and
unpaid interest thereon to the date of such prepayment. Unless otherwise specified in writing by
the Borrower, optional prepayments shall be applied first, to the principal of the Term Loans and
any interest accrued and unpaid on such principal amounts so prepaid, and second, to any other
Obligations then outstanding.

     Section 2.11. Mandatory Prepayments of Term Loans. In the event and on each occasion
that the aggregate principal amount of outstanding Term Loans exceeds the Aggregate Commitment
Amount then in effect, then the Borrower shall promptly prepay Term Loans in an aggregate amount
sufficient to eliminate such excess. Immediately upon determining the need to make any such
prepayment, the Borrower shall notify the Administrative Agent of such required prepayment and of
the identity of the particular Term Loans being prepaid. If the Administrative Agent shall notify
the Borrower that the Administrative Agent has determined that any prepayment is required under
this Section 2.11, the Borrower shall make such prepayment no later than the second Business Day
following such notice. Any mandatory prepayment of Term Loans pursuant hereto shall not be limited
by the notice provision for prepayments set forth in Section 2.10. Each such prepayment shall be
accompanied by a payment of all accrued and unpaid interest on the Term Loans prepaid and any
applicable breakage fees and funding losses pursuant to Section 2.12.

     Section 2.12. Breakage Fees. If any Lender incurs any loss, cost or expense
(excluding loss of anticipated profits and other indirect or consequential damages) by reason of
the liquidation or re-employment of deposits or other funds acquired by such Lender to fund or
maintain any Eurodollar Loan as a result of any of the following events other than any such
occurrence as a result of a change of circumstance described in Sections 8.1 or 8.2:

     (a) any payment, prepayment or conversion of any such Eurodollar Loan on a date other than the
last day of its Interest Period (whether by acceleration, mandatory prepayment or otherwise);

24

 

     (b) any failure to make a principal payment of any such Eurodollar Loan on the due date
therefor; or

     (c) any failure by the Borrower to borrow, continue or prepay, or convert to, any such
Eurodollar Loan on the date specified in a notice given pursuant to Section 2.10 (other than by
reason of a default of such Lender),

then the Borrower shall pay to such Lender such amount as will reimburse such Lender for such loss,
cost or expense. If any Lender makes such a claim for compensation, it shall provide to the
Borrower a certificate executed by an officer of such Lender setting forth the amount of such loss,
cost or expense in reasonable detail (including an explanation of the basis for and the computation
of such loss, cost or expense) no later than ninety (90) days after the event giving rise to the
claim for compensation, and the amounts shown on such certificate shall be prima facie evidence of
such Lender’s entitlement thereto. Within ten (10) days of receipt of such certificate, the
Borrower shall pay directly to such Lender such amount as will compensate such Lender for such
loss, cost or expense as provided herein, unless such Lender has failed to timely give notice to
the Borrower of such claim for compensation as provided herein, in which event the Borrower shall
not have any obligation to pay such claim.

     Section 2.13. Term Facility Increase; Additional Lenders.

     (a) So long as no Event of Default has occurred and is continuing, the Borrower may, from time
to time, but in any case at least forty-five (45) days prior to the Facility Increase Expiration
Date, notify the Administrative Agent in writing of the Borrower’s request to increase the
Aggregate Commitment Amount pursuant to this Section 2.13 for a total principal amount of
additional Term Loans not to exceed $75,000,000 (the amount of any such increase, the “Additional
Commitment Amount”), and the requested Facility Increase Funding Date (which shall be a Business
Day prior to the Facility Increase Expiration Date) for the additional Term Loans in such
Additional Commitment Amount. Any agreement by a Lender to increase its Commitment pursuant to
such request shall be made in its sole discretion. No increase in the Aggregate Commitment Amount
or additional Term Loans may be effected or requested pursuant to this Section 2.13 on any occasion
for an amount less than $25,000,000.

     (b) The Borrower may designate one or more banks or other financial institutions (which may
be, but need not be, one or more of the existing Lenders) which at the time agree to, in the case
of any such Person that is an existing Lender, increase its Commitment, and in the case of any
other such Person (an “Additional Lender”), become a party to this Agreement; provided, however,
that any bank or financial institution that is not an existing Lender must be approved by the
Administrative Agent (which approval will not be unreasonably withheld or delayed). The sum of the
increases in the Commitments of the existing Lenders pursuant to this subsection (b) plus the
Commitments of the Additional Lenders shall not in the aggregate exceed the Additional Commitment
Amount.

     (c) An increase in the Aggregate Commitment Amount pursuant to this Section 2.13 shall become
effective on the Facility Increase Funding Date for the related Borrowing upon the receipt by the
Administrative Agent of a Joinder Agreement signed by the Borrower, by each

25

 

Additional Lender, and by each other Lender whose Commitment is to be increased, together with such evidence of
appropriate corporate authorization on the part of the Borrower with respect to the increase in the
Commitments and the Borrowing of the additional Term Loans, and such opinions of counsel for the
Borrower with respect to the increase in the Commitments and the Borrowing of the additional Term
Loans, as the Administrative Agent may reasonably request.

     (d) Upon the effectiveness of an increase in the Aggregate Commitment Amount pursuant to
subsection (c) above, and the funding of the additional Term Loans, the respective Commitment
amounts and Percentages of the Lenders set forth on the signature pages hereto shall automatically
be deemed to be adjusted to take into account the Additional Commitment Amount and related funding
of additional Term Loans.

     (e) In order to obtain funding of the additional Term Loans on any Facility Increase Funding
Date, the Borrower shall have given to the Administrative Agent a Borrowing Request for such Term
Loans in the form required by Section 2.3 (and including any re-borrowings of existing Term Loans
as provided in the last sentence of this subsection (e)), and shall have complied with the
requirements and conditions set forth in Section 4.2. Each existing Lender that is increasing its
Commitment and each Additional Lender shall make available to the Administrative Agent its portion
of the additional Term Loans to be funded on such Facility Increase Funding Date in accordance with
Section 2.6. On any Facility Increase Funding Date of any additional Term Loans pursuant to this
Section 2.13 that are not pro rata among all existing Lenders, the Borrower shall be deemed to have
repaid in their entirety on such Facility Increase Funding Date all existing outstanding Term Loans
(and shall pay to the existing Lenders any breakage fees and funding losses that would be required
to be paid pursuant to Section 2.12 in connection with such prepayment), and all such existing Term
Loans shall be deemed to be re-borrowed, and all such additional Term Loans shall be deemed to be
funded, pro rata in accordance with the applicable Percentages of the respective Lenders (including
the Additional Lenders) after giving effect to the increase in the Aggregate Commitment Amount and
funding of the additional Term Loans, and all such Term Loans shall be outstanding as Borrowings
subject to Interest Periods commencing on such Facility Increase Funding Date as specified by the
Borrower in its Borrowing Request pursuant to this Section 2.13.

ARTICLE 3. FEES AND PAYMENTS.

     Section 3.1. Administrative Agent Fees. The Borrower shall pay to the Administrative
Agent the administrative agency fees from time to time agreed to by the Borrower and the
Administrative Agent.

     Section 3.2. Place and Application of Payments.

     (a) All payments of principal of and interest on the Term Loans and all fees and other amounts
payable by the Borrower under the Credit Documents shall be made by the Borrower to the
Administrative Agent without defense, setoff or counterclaim, free of any restriction or condition,
for the benefit of the Lenders entitled to such payments, in immediately available funds on the due
date thereof no later than 2:00 P.M. in the Administrative Agent’s Account or

26

 

such other location as the Administrative Agent may designate in writing to the Borrower. Any payments received by the
Administrative Agent from the Borrower after the time specified in the preceding sentence shall be
deemed to have been received on the next Business Day. The Administrative Agent will, on the same
day each payment is received or deemed to have been received in accordance with this Section 3.2,
cause to be distributed like funds to each Lender owed an Obligation for which such payment was
received, pro rata based on the respective amounts of such type of Obligation then owing to each
Lender.

     (b) If any payment received by the Administrative Agent under any Credit Document is
insufficient to pay in full all amounts then due and payable to the Administrative Agent and the
Lenders under the Credit Documents, such payment shall be distributed by the Administrative Agent
and applied by the Administrative Agent and the Lenders in the order set forth in Section 7.6. In
calculating the amount of Obligations owing each Lender other than for principal and interest on
Term Loans, the Administrative Agent shall only be required to include such other Obligations that
Lenders have certified to the Administrative Agent in writing are due to such Lenders.

     Section 3.3. Withholding Taxes.

     (a) Payments Free of Withholding. Except as otherwise required by law and subject to
Section 3.3(b), each payment by the Borrower to any Lender or Administrative Agent under this
Agreement or any other Credit Document shall be made without withholding for or on account of any
present or future taxes imposed by or within the jurisdiction in which the Borrower is
incorporated, any jurisdiction from which the Borrower makes any payment, or (in each case) any
political subdivision or taxing authority thereof or therein, excluding, in the case of each Lender
and the Administrative Agent, the following taxes:

     (i) taxes imposed on, based upon, or measured by such Lender’s or the Administrative
Agent’s net income or profits, and branch profits, franchise and similar taxes imposed on
it;

     (ii) taxes imposed on such Lender or the Administrative Agent as a result of a present
or former connection between the taxing jurisdiction and such Lender or Administrative
Agent, or any affiliate thereof, as the case may be, other than a connection resulting
solely from the transactions contemplated by this Agreement;

     (iii) taxes imposed as a result of the transfer by such Lender or the Administrative
Agent of its interest in this Agreement or any other Credit Document or a designation by
such Lender or the Administrative Agent (other than pursuant to Section 8.3(c)) of a new
Lending Office (other than taxes imposed as a result of any change in treaty, law or
regulation after such transfer of such Lender’s or the Administrative Agent’s interest in
this Agreement or any other Credit Document or designation of a new Lending Office);

     (iv) taxes imposed by the United States of America (or any political subdivision
thereof or tax authority therein) upon a Lender or the Administrative Agent

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organized under the laws of a jurisdiction outside of the United States, except to the extent that such tax
is imposed as a result of any change in applicable law, regulation or treaty (other than any
addition of or change in any “anti-treaty shopping,” “limitation of benefits,” or similar
provision applicable to a treaty) after the date hereof, in the case of each Lender or the
Administrative Agent originally a party hereto or, in the case of any Purchasing Lender (as
defined in Section 10.10) or the Administrative Agent, after the date on which it becomes a
Lender or the Administrative Agent, as the case may be; or

     (v) taxes which would not have been imposed but for (a) the failure of any Lender or
the Administrative Agent, as the case may be, to provide (I) the applicable forms prescribed
by the Internal Revenue Service, as required pursuant to Section 3.3(b), or (II) any other
form, certification, documentation or proof which is reasonably requested by the Borrower,
or (b) a determination by a taxing authority or a court of competent jurisdiction that a
form, certification, documentation or other proof provided by such Lender or the
Administrative Agent to establish an exemption from such tax, assessment or other
governmental charge is false;

(all such present or future taxes, excluding only the taxes described in the preceding clauses (i)
through (v), being hereinafter referred to as “Indemnified Taxes”). If any such withholding is so
required, the Borrower shall make the withholding, pay the amount withheld to the appropriate
governmental authority before penalties attach thereto or interest accrues thereon and forthwith
pay such additional amount as may be necessary to ensure that the net amount actually received by
each Lender and the Administrative Agent is free and clear of such Indemnified Taxes (including
Indemnified Taxes on such additional amount) and is equal to the amount that such Lender or the
Administrative Agent (as the case may be) would have received had withholding of any Indemnified
Tax not been made. If the Borrower pays any Indemnified Taxes, or any penalties or interest in
connection therewith, it shall deliver official tax receipts evidencing the payment or certified
copies thereof, or other evidence of payment if such tax receipts have not yet been received by the
Borrower (with such tax receipts to be delivered within fifteen (15) days after being actually
received), to the Lender or the Administrative Agent on whose account such withholding was made (with a copy to the Administrative Agent if not the recipient of the original)
within fifteen (15) days of such payment. If the Administrative Agent or any Lender pays any
Indemnified Taxes, or any penalties or interest in connection therewith, the Borrower shall
reimburse the Administrative Agent or such Lender for the payment on demand in the currency in
which such payment was made. Such Lender or the Administrative Agent shall make written demand on
the Borrower for reimbursement hereunder no later than ninety (90) days after the earlier of (i)
the date on which such Lender or the Administrative Agent makes payment of the Indemnified Taxes,
penalties and interest, and (ii) the date on which the relevant taxing authority or other
governmental authority makes written demand upon such Lender or the Administrative Agent for
payment of the Indemnified Taxes, penalties and interest. Any such demand shall describe in
reasonable detail such Indemnified Taxes, penalties or interest, including the amount thereof if
then known to such Lender or the Administrative Agent, as the case may be. In the event that such
Lender or the Administrative Agent fails to give the Borrower timely notice as provided herein, the
Borrower shall not have any obligation to pay such claim for reimbursement.

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     (b) U.S. Withholding Tax Exemptions. Upon the written request of the Borrower or the
Administrative Agent, each Lender that is not a United States person (as such term is defined in
Section 7701(a)(30) of the Code) shall submit to the Borrower and the Administrative Agent,
promptly after such request, two duly completed and signed copies of either Form W-8BEN or any
successor form (entitling such Lender to a complete exemption from withholding under the Code on
all amounts to be received by such Lender, including fees, pursuant to the Credit Documents) or
Form W-8ECI or any successor form (relating to all amounts to be received by such Lender, including
fees, pursuant to the Credit Documents) of the United States Internal Revenue Service, and any
other form of the United States Internal Revenue Service reasonably necessary to accomplish
exemption from withholding obligations or to facilitate the Administrative Agent’s performance
under this Agreement. Thereafter and from time to time, each such Lender shall submit to the
Borrower and the Administrative Agent such additional duly completed and signed copies of such
forms (or such successor forms as shall be adopted from time to time by the relevant United States
taxing authorities) as may be required under then-current United States law or regulations to avoid
United States withholding taxes on payments in respect of all amounts to be received by such
Lender, including fees, pursuant to the Credit Documents. Upon the request of the Borrower, each
Lender that is a United States person shall submit to the Borrower a certificate to the effect that
it is such a United States person and is exempt from information reporting under Section 6049 of
the Code and backup withholding under Section 3406 of the Code.

     (c) Inability of Lender to Submit Forms. If any Lender determines in good faith, as a
result of any change in applicable law, regulation or treaty, or in any official application or
interpretation thereof, that (i) it is unable to submit to the Borrower or Administrative Agent any
form or certificate that such Lender is obligated to submit pursuant to subsection (b) of this
Section 3.3, (ii) it is required to withdraw or cancel any such form or certificate previously
submitted, or (iii) any such form or certificate otherwise becomes ineffective or inaccurate, such
Lender shall promptly notify the Borrower and Administrative Agent of such fact, and the Lender
shall to that extent not be obligated to provide any such form or certificate and will be entitled
to withdraw or cancel any affected form or certificate, as applicable.

     (d) Refund of Taxes. If any Lender or the Administrative Agent becomes aware that it
has received a refund of any Indemnified Tax or any tax referred to in Section 10.3 with respect to
which the Borrower has paid any amount pursuant to this Section 3.3 or Section 10.3, such Lender or
the Administrative Agent shall pay the amount of such refund (including any interest received with
respect thereto) to the Borrower within fifteen (15) days after receipt thereof. A Lender or the
Administrative Agent shall provide, at the sole cost and expense of the Borrower, such assistance
as the Borrower may reasonably request in order to obtain such a refund; provided, however, that
neither the Administrative Agent nor any Lender shall in any event be required to disclose any
information to the Borrower with respect to the overall tax position of the Administrative Agent or
such Lender.

ARTICLE 4. CONDITIONS PRECEDENT.

     Section 4.1. Initial Borrowing. This Agreement shall become effective, and the
obligation of each Lender to advance the initial Term Loans hereunder shall only take effect, on

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the date (the “Effective Date”) on which each of the following conditions has been satisfied (or
waived in accordance with Section 10.11):

     (a) The Administrative Agent shall have received counterparts of this Agreement duly executed
(including by facsimile or other electronic means) by all parties to this Agreement, together with
the following, all in form and substance reasonably satisfactory to the Administrative Agent and in
sufficient number of signed counterparts, where applicable, to provide one for each Lender:

     (i) Certificates of Officers. Certificates of the Secretary or an Assistant
Secretary of the Borrower containing specimen signatures of the persons authorized to
execute Credit Documents on the Borrower’s behalf or any other documents provided for herein
or therein, together with (x) copies of resolutions of the Board of Directors or other
appropriate body of the Borrower authorizing the execution and delivery of the Credit
Documents, (y) copies of the Borrower’s memorandum of association and articles of
association and other publicly filed organizational documents in its jurisdiction of
incorporation and bylaws and other governing documents, if any, and (z) copies of the
Borrower’s certificate of incorporation and certificate of good standing from the
appropriate governing agency of the Borrower’s jurisdiction of incorporation;

     (ii) Regulatory Filings and Approvals. Copies of all necessary governmental
and third party approvals, registrations, and filings in respect of the transactions
contemplated by this Agreement;

     (iii) Insurance Certificate. An insurance certificate dated not more than ten
(10) Business Days prior to the Effective Date from the Borrower describing in reasonable
detail the insurance maintained by the Borrower and its Subsidiaries as required by this
Agreement;

     (iv) Opinions of Counsel. The opinions of (x) Baker Botts LLP, counsel for the
Borrower, in the form of Exhibit 4.1A, (y) Walter A. Baker, Associate General
Counsel of the Borrower, in the form of Exhibit 4.1B, and (z) Walkers, Cayman
Islands counsel for the Borrower, in the form of Exhibit 4.1C;

     (v) Closing Certificate. Certificate of the President or a Vice President of
the Borrower as to the satisfaction of all conditions set forth in this Section 4.1;

     (vi) Notes. Duly completed and executed Notes for each of the Lenders that has
requested such Notes prior to the Effective Date as provided in Section 2.9(e); and

     (vii) Borrowing Request. The Administrative Agent shall have received the
Borrowing Request required by the first sentence of Section 2.3(a).

     (b) Each of the representations and warranties of the Borrower and its Subsidiaries set forth
herein and in the other Credit Documents shall be true and correct in all material respects as of
the time of such Borrowing, except to the extent that any such representation or warranty

30

 

relates solely to an earlier date, in which case it shall have been true and correct in all material
respects as of such earlier date;

     (c) No Default or Event of Default shall have occurred and be continuing; and

     (d) Payment of all fees and all expenses incurred through the Effective Date then due and
owing to the Administrative Agent, the Lenders, Citigroup Global Markets, Inc. and Calyon New York
Branch, pursuant to this Agreement and as otherwise agreed in writing by the Borrower with respect
to the transactions contemplated by this Agreement.

     Section 4.2. Subsequent Borrowings. The obligation of any Lenders to make advances of
any Term Loans pursuant to Section 2.13 is subject to satisfaction in each instance of the
following conditions precedent:

     (a) Notices. The Administrative Agent shall have received the Borrowing Request
required by Section 2.13(e);

     (b) Warranties True and Correct. Each of the representations and warranties of the
Borrower and its Subsidiaries set forth herein shall be true and correct in all material respects
as of the time of such Borrowing, except as a result of the transactions permitted hereunder, and
except to the extent that any such representation or warranty relates solely to an earlier date, in
which case it shall have been true and correct in all material respects as of such earlier date;

     (c) No Default. No Default or Event of Default shall have occurred and be continuing
or would occur as a result of any such Borrowing; and

     (d) Regulations T, U and X. The Borrowing to be made by the Borrower shall not result
in the Borrower or any Lender being in non-compliance with or in violation of Regulation T, U or X
of the Board of Governors of the Federal Reserve System.

Each acceptance by the Borrower of an advance of any Term Loans shall be deemed to be a
representation and warranty by the Borrower on the date of such acceptance, that all conditions
precedent to such Borrowing set forth in Section 4.1 (with respect to the initial Borrowings
hereunder) and in Section 4.2 (with respect to any Borrowing on any Facility Increase Funding Date)
have, except to the extent waived in accordance with the terms hereof, been satisfied or fulfilled,
unless the Borrower gives to the Administrative Agent and the Lenders written notice to the
contrary, in which case none of the Lenders shall be required to fund such Term Loans unless the
Required Lenders shall have previously waived in writing such non-compliance.

ARTICLE 5. REPRESENTATIONS AND WARRANTIES.

     The Borrower represents and warrants to each Lender and the Administrative Agent as follows:

     Section 5.1. Corporate Organization. The Borrower and each of its material
Subsidiaries: (i) is duly organized and existing in good standing under the laws of the
jurisdiction

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of its organization; (ii) has all necessary organizational power and authority to own
the property and assets it uses in its business and otherwise to carry on its present business; and
(iii) is duly licensed or qualified and in good standing in each jurisdiction in which the nature
of the business transacted by it or the nature of the property owned or leased by it makes such
licensing or qualification necessary, except where the failure to be so licensed or qualified or to
be in good standing, as the case may be, would not have a Material Adverse Effect.

     Section 5.2. Power and Authority; Validity. The Borrower has the organizational power
and authority to execute, deliver and carry out the terms and provisions of the Credit Documents to
which it is a party and has taken all necessary company action to authorize the execution, delivery
and performance of such Credit Documents. The Borrower has duly executed and delivered each Credit
Document and each such Credit Document constitutes the legal, valid and binding obligation of the
Borrower enforceable against it in accordance with its terms, subject as to enforcement only to
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement
of creditors’ rights generally and equitable principles.

     Section 5.3. No Violation. Neither the execution, delivery or performance by the
Borrower of the Credit Documents to which it is a party nor compliance by it with the terms and
provisions thereof, nor the consummation by it of the transactions contemplated herein or therein,
will (i) contravene in any material respect any applicable provision of any law, statute, rule or
regulation, or any applicable order, writ, injunction or decree of any court or governmental
instrumentality, (ii) conflict with or result in any breach of any term, covenant, condition or
other provision of, or constitute a default under, or result in the creation or imposition of (or
the obligation to create or impose) any Lien other than any Permitted Lien upon any of the property
or assets of the Borrower or any of its Subsidiaries under, the terms of any material contractual
obligation to which the Borrower or any of its Subsidiaries is a party or by which they or any of their properties or assets are bound
or to which they may be subject, or (iii) violate or conflict with any provision of the memorandum
of association and articles of association, charter, articles or certificate of incorporation,
partnership or limited liability company agreement, by-laws, or other applicable governance
documents of the Borrower or any of its Subsidiaries.

     Section 5.4. Litigation. Except as may be described on Schedule 5.4, there
are no actions, suits, proceedings or counterclaims (including, without limitation, derivative or
injunctive actions) pending or, to the knowledge of the Borrower, threatened against the Borrower
or any of its Subsidiaries that are reasonably likely to have a Material Adverse Effect.

     Section 5.5. Use of Proceeds; Margin Regulations.

     (a) Use of Proceeds. The proceeds of the Term Loans shall be used solely for
repayment and debt service on the Bridge Facility and payment of fees, costs and expenses incurred
or payable by the Borrower pursuant to this Agreement, provided that, after repayment in full of
the Bridge Facility and termination or expiration of the Bridge Credit Agreement, such proceeds may
be used for general corporate purposes.

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     (b) Margin Stock. Neither the Borrower nor any of its Subsidiaries is engaged in the
business of extending credit for the purpose of purchasing or carrying margin stock. No proceeds
of the Term Loans will be used for a purpose which violates Regulations T, U or X of the Board of
Governors of the Federal Reserve System. After application of the proceeds of the Term Loans and
any acquisitions permitted hereunder, less than 25% of the assets of each of the Borrower and its
Subsidiaries consists of “margin stock” (as defined in Regulation U of the Board of Governors of
the Federal Reserve System).

     Section 5.6. Investment Company Act. Neither the Borrower nor any of its Subsidiaries
is an “investment company” or a company “controlled” by an “investment company,” within the meaning
of the Investment Company Act of 1940, as amended.

     Section 5.7. True and Complete Disclosure. All factual information (taken as a whole)
furnished by the Borrower or any of its Subsidiaries in writing to the Administrative Agent or any
Lender in connection with any Credit Document or the Confidential Information Memorandum or any
transaction contemplated therein did not, as of the date such information was furnished (or, if
such information expressly related to a specific date, as of such specific date), contain any
untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein (taken as a whole), in light of the circumstances under which such information
was furnished, not misleading, except for such statements, if any, as have been updated, corrected,
supplemented, superseded or modified pursuant to a written correction or supplement furnished to
the Lenders prior to the date of this Agreement.

     Section 5.8. Financial Statements. The financial statements heretofore delivered to
the Lenders for the Borrower’s fiscal year ended December 31, 2007, have been prepared in
accordance with GAAP applied on a basis consistent, except as otherwise noted therein, with the
Borrower’s financial statements for the previous fiscal year. Such annual financial statements
fairly present in all material respects on a consolidated basis the financial position of the
Borrower as of the date thereof, and the results of operations for the fiscal year then ended. As
of the Effective Date, except as described on Schedule 5.8, the Borrower and its
Subsidiaries, considered as a whole, had no material contingent liabilities or material
Indebtedness required under GAAP to be disclosed in a consolidated balance sheet of the Borrower
that were not included in the financial statements referred to in this Section 5.8 or disclosed in
the notes thereto unless otherwise permitted under this Agreement.

     Section 5.9. No Material Adverse Change. Except as may be described on Schedule
5.9, since December 31, 2007 there has occurred no event or effect with respect to the
business, assets, operations or condition of the Borrower and its Subsidiaries, as reflected in its
annual report on Form 10-K filed with the SEC for the fiscal year ended December 31, 2007, that has
had or could reasonably be expected to have a Material Adverse Effect.

     Section 5.10. Taxes. The Borrower and its Subsidiaries have filed all material tax
returns required to be filed, whether in the United States or in any foreign jurisdiction, and have
paid all governmental taxes, rates, assessments, fees, charges and levies (collectively, “Taxes”)
shown to be due and payable on such returns or on any assessments made against Borrower and its
Subsidiaries or any of their properties (other than any such assessments, fees, charges or

33

 

levies that are not more than ninety (90) days past due, or which can thereafter be paid without penalty,
or which are being contested in good faith by appropriate proceedings and for which reserves have
been provided in conformity with GAAP, or which the failure to pay could not reasonably be expected
to have a Material Adverse Effect).

     Section 5.11. Consents. On the Effective Date and on any Facility Increase Funding
Date, all material consents and approvals of, and filings and registrations with, and all other
actions of, all governmental agencies, authorities or instrumentalities required to have been
obtained or made by the Borrower in order to obtain the Term Loans hereunder on such date have been
or will have been obtained or made and are or will be in full force and effect.

     Section 5.12. Insurance. The Borrower and its material Subsidiaries currently
maintain in effect, with responsible insurance companies, including captive insurance companies, or
through self-insurance, insurance against any loss or damage to all insurable property and assets
owned by it, which insurance is of a character and in or in excess of such amounts as are
customarily maintained by companies similarly situated and operating like property or assets
(subject to self-insured retentions and deductibles), and insurance with respect to employers’ and
public and product liability risks (subject to self-insured retentions and deductibles).

     Section 5.13. Intellectual Property. The Borrower and its Subsidiaries own or hold
valid licenses to use all the patents, trademarks, permits, service marks, and trade names that are
necessary to the operation of the business of the Borrower and its Subsidiaries as presently
conducted, except where the failure to own, or hold valid licenses to use, such patents,
trademarks, permits, service marks, and trade names could not reasonably be expected to have a
Material Adverse Effect.

     Section 5.14. Ownership of Property. The Borrower and its Subsidiaries have good
title to or a valid leasehold interest in all of their real property and good title to, or a valid
leasehold interest in, all of their other property, subject to no Liens except Permitted Liens,
except where the failure to have such title or leasehold interest in such property could not
reasonably be expected to have a Material Adverse Effect.

     Section 5.15. Existing Indebtedness. Schedule 5.15 contains a complete and
accurate list of all Indebtedness outstanding as of the Effective Date, with respect to the
Borrower and its Subsidiaries, in each case in a principal amount of $30,000,000 (or, if
denominated in a currency other than U.S. Dollars, the Dollar Equivalent of $30,000,000) or more
(other than the Obligations hereunder and Indebtedness permitted by Section 6.12(b) through (j))
and permitted by Section 6.12(a), in each case showing the aggregate principal amount thereof, the
name of the respective borrower and any other entity which directly or indirectly guaranteed such
Indebtedness, and the scheduled payments of such Indebtedness.

     Section 5.16. Existing Liens. Schedule 5.16 contains a complete and accurate
list of all Liens outstanding as of the Effective Date, with respect to the Borrower and its
Subsidiaries where the Indebtedness or other obligations secured by such Lien is in a principal
amount of $30,000,000 (or, if denominated in a currency other than U.S. Dollars, the Dollar
Equivalent of $30,000,000) or more (other than the Liens permitted by Section 6.11(b) through (r)),
and

34

 

permitted by Section 6.11(a), in each case showing the name of the Person whose assets are
subject to such Lien, the aggregate principal amount of the Indebtedness secured thereby, and a
description of the Agreements or other instruments creating, granting, or otherwise giving rise to
such Lien.

     Section 5.17. Employee Benefit Plan. The Borrower, each of its Subsidiaries and each
of their respective ERISA Affiliates are in compliance with all applicable provisions and
requirements of ERISA and the Code and the regulations and published interpretations thereunder
with respect to each Employee Benefit Plan, and have performed all their obligations under each
Employee Benefit Plan except for any such non-compliance or non-performance which could not
reasonably be expected to result in a Material Adverse Effect. No liability to the PBGC (other
than required premium payments), the U.S. Internal Revenue Service, any Employee Benefit Plan or
any trust established under Title IV of ERISA has been or is expected to be incurred by the
Borrower, any of its Subsidiaries or any of their ERISA Affiliates with respect to any Employee
Benefit Plan, except for any such liability which could not reasonably be expected to result in a
Material Adverse Effect. No ERISA Event has occurred or is reasonably expected to occur which
could reasonably be expected to result in a Material Adverse Effect. No Plan has Unfunded Vested Liabilities
which could reasonably be expected to result in a Material Adverse Effect. As of the most recent
valuation date for each Multiemployer Plan, the potential liability of the Borrower, its
Subsidiaries and their respective ERISA Affiliates for a complete withdrawal from such
Multiemployer Plan (within the meaning of Section 4203 of ERISA), when aggregated with such
potential liability for a complete withdrawal from all Multiemployer Plans, based on information
available pursuant to Section 4221(e) of ERISA, could not reasonably be expected to result in a
Material Adverse Effect. The Borrower, each of its Subsidiaries and each of their ERISA Affiliates
have complied with the requirements of Section 515 of ERISA with respect to each Multiemployer Plan
and are not in material “default” (as defined in Section 4219(c)(5) of ERISA) with respect to
payments to a Multiemployer Plan, except for any such non-compliance which could not reasonably be
expected to result in a Material Adverse Effect.

     Section 5.18. OFAC. Neither the Borrower nor any of its Subsidiaries (i) is a person
on the list of Specially Designated Nationals and Blocked Persons or subject to the limitations or
prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets Control
regulation or executive order, or (ii) will knowingly use any proceeds of the Loans, directly or
indirectly, to support activities in any country subject to a comprehensive sanctions program
administered by the Office of Foreign Assets Control (“OFAC”) where such activities would be in
violation of the sanctions program.

     Section 5.19. Compliance with Certain Laws. The Borrower and each of its Subsidiaries
is in compliance, in all material respects, with (i) the Trading with the Enemy Act, as amended,
and each of the foreign assets control regulations of the United States Treasury Department (31
CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order
relating thereto, and (ii) the Uniting And Strengthening America By Providing Appropriate Tools
Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001). No part of the proceeds of
the Loans will be used, directly or indirectly, for any payments to any governmental official or
employee, political party, official of a political party, candidate for

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political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as
amended.

ARTICLE 6. COVENANTS.

     The Borrower covenants and agrees that, so long as any Term Loan, Note, or Commitment is
outstanding hereunder, or any other Obligation is due and payable hereunder:

     Section 6.1. Corporate Existence. Each of the Borrower and its material Subsidiaries
will preserve and maintain its organizational existence, except (i) for the dissolution of any
material Subsidiaries whose assets are transferred to the Borrower or any of its Subsidiaries, (ii)
for mergers and other or other business combinations of the Borrower permitted under Section 6.10
and mergers or other business combinations of any Subsidiary of the Borrower with or into the
Borrower or another Subsidiary of the Borrower, (iii) where the failure to preserve, renew or keep
in full force and effect the existence of any Subsidiary could not reasonably be expected to have a Material
Adverse Effect, or (iv) as otherwise expressly permitted in this Agreement.

     Section 6.2. Maintenance. Each of the Borrower and its material Subsidiaries will
maintain, preserve and keep its properties and equipment necessary to the proper conduct of its
business in reasonably good repair, working order and condition (normal wear and tear excepted) and
will from time to time make all reasonably necessary repairs, renewals, replacements, additions and
betterments thereto so that at all times such properties and equipment are reasonably preserved and
maintained, in each case with such exceptions as could not, individually or in the aggregate, be
reasonably expected to have a Material Adverse Effect; provided, however, that nothing in this
Section 6.2 shall prevent the Borrower or any material Subsidiary from discontinuing the operation
or maintenance of any such properties or equipment if such discontinuance is, in the judgment of
the Borrower or any material Subsidiary, as applicable, desirable in the conduct of its business.

     Section 6.3. Taxes. Each of the Borrower and its Subsidiaries will duly pay and
discharge all Taxes upon or against it or its properties within ninety (90) days after becoming due
or, if later, prior to the date on which penalties are imposed for such unpaid Taxes, unless and to
the extent that (i) the same is being contested in good faith and by appropriate proceedings and
reserves have been established in conformity with GAAP, or (ii) the failure to effect such payment
or discharge could not reasonably be expected to have a Material Adverse Effect.

     Section 6.4. ERISA. Each of the Borrower and its Subsidiaries will timely pay and
discharge all obligations and liabilities arising under ERISA or otherwise with respect to each
Plan of a character which if unpaid or unperformed might result in the imposition of a material
Lien against any properties or assets of the Borrower or any material Subsidiary and will promptly
notify the Administrative Agent upon an officer of the Borrower becoming aware thereof, of (i) the
occurrence of any reportable event (as defined in ERISA) relating to a Plan (other than a
multi-employer plan, as defined in ERISA), so long as the event thereunder could reasonably be
expected to have a Material Adverse Effect, other than any such event with respect to which the
PBGC has waived notice by regulation; (ii) receipt of any notice from PBGC of its

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intention to seek termination of any Plan or appointment of a trustee therefor; (iii) Borrower’s or any of its
Subsidiaries’ intention to terminate or withdraw from any Plan if such termination or withdrawal
would result in liability under Title IV of ERISA, unless such termination or withdrawal could not
reasonably be expected to have a Material Adverse Effect; and (iv) the receipt by the Borrower or
its Subsidiaries of notice of the occurrence of any event that could reasonably be expected to
result in the incurrence of any liability (other than for benefits), fine or penalty to the
Borrower and/or to the Borrower’s Subsidiaries, or any plan amendment that could reasonably be
expected to increase the contingent liability of the Borrower and its Subsidiaries, taken as a
whole, in either case in connection with any post-retirement benefit under a welfare plan (subject
to ERISA), unless such event or amendment could not reasonably be expected to have a Material
Adverse Effect. The Borrower will also promptly notify the Administrative Agent of (i) any
material contributions to any Foreign Plan that have not been made by the required due date for
such contribution if such default could reasonably be expected to have a Material Adverse Effect;
(ii) any Foreign Plan that is not funded to the extent required by the law of the jurisdiction whose law governs
such Foreign Plan based on the actuarial assumptions reasonably used at any time if such
underfunding (together with any penalties likely to result) could reasonably be expected to have a
Material Adverse Effect, and (iii) any material change anticipated to any Foreign Plan that could
reasonably be expected to have a Material Adverse Effect.

     Section 6.5. Insurance. Each of the Borrower and its material Subsidiaries will
maintain or cause to be maintained, with responsible insurance companies, including captive
insurance companies, or through self-insurance, insurance against any loss or damage to all
insurable property and assets owned by it, such insurance to be of a character and in or in excess
of such amounts as are customarily maintained by companies similarly situated and operating like
property or assets (subject to self-insured retentions and deductibles) and will (subject to
self-insured retentions and deductibles) maintain or cause to be maintained insurance with respect
to employers’ and public and product liability risks.

     Section 6.6. Financial Reports and Other Information.

     (a) Periodic Financial Statements and Other Documents. The Borrower, its Subsidiaries
and any SPVs will maintain a system of accounting in such manner as will enable preparation of
financial statements in accordance with GAAP and will furnish to the Lenders and their respective
authorized representatives such information about the business and financial condition of the
Borrower, its Subsidiaries and any SPVs as any Lender may reasonably request; and, without any
request, will furnish to the Administrative Agent:

     (i) not later than the earlier of (x) sixty (60) days after the end of each of the
first three (3) fiscal quarters of each fiscal year of the Borrower, and (y) five (5) days
after the date the Borrower is required to file with the SEC its report on Form 10-Q with
respect to each of such fiscal quarters, the consolidated balance sheet of the Borrower and
its Subsidiaries as at the end of such fiscal quarter and the related consolidated
statements of income and retained earnings and of cash flows for such fiscal quarter and for
the portion of the fiscal year ended with the last day of such fiscal quarter, all of which
shall be in reasonable detail or in the form filed with the SEC, and certified by the chief

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financial officer of the Borrower that they fairly present the financial condition of the
Borrower and its Subsidiaries as of the dates indicated and the results of their operations
and changes in their cash flows for the periods indicated and that they have been prepared
in accordance with GAAP, in each case, subject to normal year-end audit adjustments and the
omission of any footnotes as permitted by the SEC (publicly filing the Borrower’s Form 10-Q
with the SEC in any event will satisfy the requirements of this subsection subject to
Section 6.6(b) and shall be deemed furnished and delivered on the date such information has
been posted on the SEC website accessible through
http://www.sec.gov/edgar/searchedgar/webusers.htm or such successor webpage of the SEC
thereto));

     (ii) not later than the earlier of (x) one hundred twenty (120) days after the end of
each fiscal year of the Borrower, and (y) five (5) days after the date the Borrower is
required to file with the SEC its report on Form 10-K with respect to such fiscal year, the
consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal
year and the related consolidated statements of income and retained earnings and of cash
flows for such fiscal year and setting forth consolidated comparative figures as of the end
of and for the preceding fiscal year, audited by an independent nationally-recognized
accounting firm and in the form filed with the SEC (publicly filing the Borrower’s Form 10-K
with the SEC in any event will satisfy the requirements of this subsection, subject to
Section 6.6(b), and shall be deemed furnished and delivered on the date such information has
been posted on the SEC website accessible through
http://www.sec.gov/edgar/searchedgar/webusers.htm or such successor webpage of the SEC
thereto));

     (iii) commencing with fiscal year 2008, to the extent actually prepared and approved by
the Borrower’s board of directors, a projection of Borrower’s consolidated balance sheet and
consolidated income, retained earnings and cash flows for its current fiscal year showing
such projected budget for each fiscal quarter of the Borrower ending during such year; and

     (iv) within ten (10) days after the sending or filing thereof, copies of all financial
statements, projections, documents and other communications that the Borrower sends to its
stockholders generally or publicly files with the SEC or any similar governmental authority
(and is publicly available); provided that publicly filing such documents with the SEC in
any event will satisfy the requirements of this subsection, subject to Section 6.6(b), and
shall be deemed furnished and delivered on the date such information has been posted on the
SEC website accessible through http://www.sec.gov/edgar/searchedgar/webusers.htm or such
successor webpage of the SEC thereto.

The Administrative Agent will forward promptly to the Lenders the information provided by the
Borrower pursuant to (i) through (iv) above.

     (b) Compliance Certificates. Within the respective time periods set forth in
subsections (i) and (ii) of Section 6.6(a) for furnishing financial statements, the Borrower shall

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deliver (i) additional information setting forth calculations excluding the effects of any SPVs and
containing such calculations for any SPVs as reasonably requested by the Administrative Agent, and
(ii) (x) a written certificate signed by the Borrower’s chief financial officer (or other financial
officer of the Borrower), in his or her capacity as such, to the effect that no Default or Event of
Default then exists or, if any such Default or Event of Default exists as of the date of such
certificate, setting forth a description of such Default or Event of Default and specifying the
action, if any, taken by the Borrower to remedy the same, and (y) a Compliance Certificate in the
form of Exhibit 6.6 showing the Borrower’s compliance with certain of the covenants (to the
extent then applicable) set forth herein.

     (c) Reserved.

     (d) Notice of Events Relating to Environmental Laws and Claims. Promptly after any
officer of the Borrower obtains knowledge of any of the following, the Borrower will provide the
Administrative Agent with written notice in reasonable detail of any of the following that,
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect:

     (i) any pending or threatened Environmental Claim against the Borrower, any of its
Subsidiaries or any SPV or any property owned or operated by the Borrower, any of its
Subsidiaries or any SPV;

     (ii) any condition or occurrence on any property owned or operated by the Borrower, any
of its Subsidiaries or any SPV that results in noncompliance by the Borrower, any of its
Subsidiaries or any SPV with any Environmental Law; and

     (iii) the taking of any material remedial action in response to the actual or alleged
presence of any Hazardous Material on any property owned or operated by the Borrower, any of
its Subsidiaries or any SPV other than in the ordinary course of business.

     (e) Notices of Default, Litigation, Etc. The Borrower will promptly, and in any event
within five (5) Business Days, after an officer of the Borrower has knowledge thereof, give written
notice to the Administrative Agent of (who will in turn provide notice to the Lenders of): (i) the
occurrence of any Default or Event of Default; (ii) any litigation or governmental proceeding of
the type described in Section 5.4; (iii) any circumstance that has had or could reasonably be
expected to have a Material Adverse Effect; (iv) the occurrence of any event which has resulted in
a breach of, or is reasonably expected to result in a breach of, Section 6.17 or 6.18; and (v) any
notice received by it, any Subsidiary or any SPV from the holder(s) of Indebtedness of the
Borrower, any Subsidiary or any SPV in an amount which, in the aggregate, exceeds $75,000,000 (or,
if denominated in a currency other than U.S. Dollars, the Dollar Equivalent of $75,000,000), where
such notice states or claims the existence or occurrence of any default or event of default with
respect to such Indebtedness under the terms of any indenture, loan or credit agreement, debenture,
note, or other document evidencing or governing such Indebtedness.

39

 

     Section 6.7. Lender Inspection Rights. Upon reasonable notice from the Administrative
Agent or any Lender, the Borrower will permit the Administrative Agent or any Lender (and such
Persons as the Administrative Agent or such Lender may reasonably designate) during normal business
hours at such entity’s sole expense unless a Default or Event of Default shall have occurred and be
continuing, in which event at the Borrower’s expense, to visit and inspect any of the properties of
the Borrower or any of its Subsidiaries, to examine all of their books and records, to make copies
and extracts therefrom, and to discuss their respective affairs, finances and accounts with their
respective officers and independent public accountants (and by this provision the Borrower
authorizes such accountants to discuss with the Administrative Agent and any Lender (and such
Persons as the Administrative Agent or such Lender may reasonably designate) the affairs, finances
and accounts of the Borrower and its Subsidiaries), all as often, and to such extent, as may be
reasonably requested. The chief financial officer of the Borrower and/or his or her designee shall
be afforded the opportunity to be present at any meeting of the Administrative Agent or the Lenders
and such accountants. The Administrative Agent agrees to use reasonable efforts to minimize, to
the extent practicable, the number of separate requests from the Lenders to exercise their rights
under this Section 6.7 and/or Section 6.6 and to coordinate the exercise by the Lenders of such
rights.

     Section 6.8. Conduct of Business. The Borrower and its Subsidiaries will at all times
remain primarily engaged in (i) the contract drilling business, and the provision of turnkey
drilling services, (ii) the provision of services to the energy industry, (iii) other existing
businesses described in the Borrower’s annual report on Form 10-K filed with the SEC for the fiscal
year ended December 31, 2007, including without limitation, the oil and gas exploration and
production business, or (iv) any related businesses (each a “Permitted Business”).

     Section 6.9. Use of Proceeds; Margin Regulations.

     (a) Use of Proceeds. The proceeds of the Term Loans shall only be used for repayment
and debt service on the Bridge Facility and payment of fees, costs and expenses incurred or payable
by the Borrower pursuant to this Agreement, provided that, after repayment in full of the Bridge
Facility and termination or expiration of the Bridge Credit Agreement, such proceeds may be used
for general corporate purposes.

     (b) Margin Stock. Neither the Borrower nor any of its Subsidiaries shall engage in
the business of extending credit for the purpose of purchasing or carrying margin stock. No
proceeds of the Term Loans will be used for a purpose which violates Regulations T, U or X of the
Board of Governors of the Federal Reserve System. After application of the proceeds of the Term
Loans less than 25% of the assets of each of the Borrower and its Subsidiaries will consist of
“margin stock” (as defined in Regulation U of the Board of Governors of the Federal Reserve
System).

     Section 6.10. Restrictions on Fundamental Changes. The Borrower shall not merge,
consolidate or amalgamate with any other Person, or cause or permit any dissolution of the Borrower
or liquidation of its assets, or sell, transfer or otherwise dispose of all or substantially all of
the Borrower’s assets, except that:

40

 

     (a) The Borrower may merge into, or consolidate or amalgamate with, any other Person if upon
the consummation of any such merger, consolidation or amalgamation the Borrower is the surviving
Person to any such merger, consolidation or amalgamation; and

     (b) The Borrower may sell or transfer all or substantially all of its assets (including stock
in its Subsidiaries) to any Person if such Person is a Subsidiary of the Borrower (or a Person who
will contemporaneously therewith become a Subsidiary of the Borrower);

provided in the case of any transaction described in the preceding clauses (a) and (b), no Default
or Event of Default shall exist immediately prior to, or after giving effect to, such transaction.

     Section 6.11. Liens. The Borrower and its Subsidiaries shall not create, incur,
assume or suffer to exist any Lien of any kind on any property or asset of any kind of the Borrower
or any Subsidiary, except the following (collectively, the “Permitted Liens”):

     (a) Liens existing on the Effective Date (each such Lien, to the extent it secures
Indebtedness or other obligations in an aggregate amount of $30,000,000 (or, if denominated in a
currency other than U.S. Dollars, the Dollar Equivalent of $30,000,000) or more, being described on
Schedule 5.16 attached hereto);

     (b) Liens arising in the ordinary course of business by operation of law, deposits, pledges or
other Liens in connection with workers’ compensation, unemployment insurance, old age benefits,
social security obligations, taxes, assessments, public or statutory obligations or other similar
charges, good faith deposits, pledges or other Liens in connection with (or to obtain letters of
credit in connection with) bids, performance, return-of-money or payment bonds, contracts or leases
to which the Borrower or its Subsidiaries are parties or other deposits required to be made in the
ordinary course of business; provided that in each case the obligation secured is not for
Indebtedness for borrowed money and is not overdue or, if overdue, is being contested in good faith
by appropriate proceedings and reserves in conformity with GAAP have been provided therefor;

     (c) mechanics’, workmen’s, materialmen’s, landlords’, carriers’, maritime or other similar
Liens arising in the ordinary course of business (or deposits to obtain the release of such Liens)
related to obligations not overdue for more than thirty (30) days if such Liens arise with respect
to domestic assets and for more than ninety (90) days if such Liens arise with respect to foreign
assets, or, if so overdue, that are being contested in good faith by appropriate proceedings and
reserves in conformity with GAAP have been provided therefor, or if such Liens otherwise could not
reasonably be expected to have a Material Adverse Effect;

     (d) Liens for Taxes not more than ninety (90) days past due or which can thereafter be paid
without penalty or which are being contested in good faith by appropriate proceedings and reserves
in conformity with GAAP have been provided therefor, or if such Liens otherwise could not
reasonably be expected to have a Material Adverse Effect;

     (e) Liens imposed by ERISA (or comparable foreign laws) which are being contested in good
faith by appropriate proceedings and reserves in conformity with GAAP have been

41

 

provided therefor, or if such Liens otherwise could not reasonably be expected to have a Material Adverse Effect;

     (f) Liens arising out of judgments or awards against the Borrower or any of its Subsidiaries,
or in connection with surety or appeal bonds or the like in connection with bonding such judgments
or awards, the time for appeal from which or petition for rehearing of which shall not have expired or for which the Borrower or such Subsidiary shall be prosecuting on
appeal or proceeding for review, and for which it shall have obtained (within thirty (30) days with
respect to a judgment or award rendered in the United States or within sixty (60) days with respect
to a judgment or award rendered in a foreign jurisdiction after entry of such judgment or award or
expiration of any previous such stay, as applicable) a stay of execution or the like pending such
appeal or proceeding for review; provided, that the aggregate amount of uninsured or underinsured
liabilities (net of customary deductibles, and including interest, costs, fees and penalties, if
any) of the Borrower and its Subsidiaries secured by such Liens shall not exceed the Dollar
Equivalent of $125,000,000 at any one time outstanding;

     (g) Liens on fixed or capital assets acquired, constructed, improved, altered or repaired by
the Borrower or any Subsidiary and related contracts, intangibles and other assets that are
incidental thereto (including accessions thereto and replacements thereof) or otherwise arise
therefrom; provided that (i) such Liens secure Indebtedness otherwise permitted by this Agreement,
(ii) such Liens and the Indebtedness secured thereby are incurred prior to or within 365 days after
such acquisition or the later of the completion of such construction, improvement, alteration or
repair or the date of commercial operation of the assets constructed, improved, altered or
repaired, (iii) the Indebtedness secured thereby does not exceed the cost of acquiring,
constructing, improving, altering or repairing such fixed or capital assets, as the case may be,
and (iv) such Lien shall not apply to any other property or assets of the Borrower or any
Subsidiary;

     (h) Liens securing Interest Rate Protection Agreements or Currency Rate Protection Agreements
incurred in the ordinary course of business and not for speculative purposes;

     (i) Liens on property existing at the time such property is acquired by the Borrower or any
Subsidiary of the Borrower and not created in contemplation of such acquisition (or on repairs,
renewals, replacements, additions, accessions and betterments thereto), and Liens on the assets of
any Person at the time such Person becomes a Subsidiary of the Borrower and not created in
contemplation of such Person becoming a Subsidiary of the Borrower (or on repairs, renewals,
replacements, additions, accessions and betterments thereto);

     (j) any extension, renewal or replacement (or successive extensions, renewals or replacements)
in whole or in part of any Lien referred to in the foregoing subsections (a) through (i), provided,
however, that the principal amount of Indebtedness secured thereby does not exceed the principal
amount secured at the time of such extension, renewal or replacement (other than amounts incurred
to pay costs of such extension, renewal or replacement), and that such extension, renewal or
replacement is limited to the property already subject to the Lien so extended, renewed or replaced
(together with accessions and improvements thereto and replacements thereof);

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     (k) rights reserved to or vested in any municipality or governmental, statutory or public
authority by the terms of any right, power, franchise, grant, license or permit, or by any
provision of law, to terminate such right, power, franchise, grant, license or permit or to
purchase, condemn, expropriate or recapture or to designate a purchaser of any of the property of a
Person;

     (l) rights reserved to or vested in any municipality or governmental, statutory or public
authority to control, regulate or use any property of a Person;

     (m) rights of a common owner of any interest in property held by a Person and such common
owner as tenants in common or through other common ownership;

     (n) encumbrances (other than to secure the payment of Indebtedness), easements, restrictions,
servitudes, permits, conditions, covenants, exceptions or reservations in any property or
rights-of-way of a Person for the purpose of roads, pipelines, transmission lines, transportation
lines, distribution lines, removal of gas, oil, coal, metals, steam, minerals, timber or other
natural resources, and other like purposes, or for the joint or common use of real property,
rights-of-way, facilities or equipment, or defects, irregularity and deficiencies in title of any
property or rights-of-way;

     (o) Liens created by or resulting from zoning, planning and environmental laws and ordinances
and municipal regulations;

     (p) Liens created or evidenced by or resulting from financing statements filed by lessors of
property (but only with respect to the property so leased);

     (q) Liens on property securing Non-recourse Debt;

     (r) Liens on the stock or assets of SPVs;

     (s) other Liens created in connection with securitization programs, if any, of the Borrower
and its Subsidiaries;

     (t) Liens on the drillships and related assets securing the Angolan Debt and the Pacific
Drilling Debt;

     (u) Liens securing Indebtedness or other obligations (i) of the Borrower in favor of any
wholly owned Subsidiary of the Borrower, or (ii) of any wholly owned Subsidiary of the Borrower in
favor of the Borrower or another wholly owned Subsidiary of the Borrower; and

     (v) Liens (not otherwise permitted by this Section 6.11) securing Indebtedness (or other
obligations) not exceeding at the time of incurrence thereof (together with all such other Liens
securing Indebtedness (or other obligations) outstanding pursuant to this clause (v) at such time)
ten percent (10%) of Consolidated Tangible Net Worth.

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     Section 6.12. Subsidiary Indebtedness. The Borrower shall not permit its Subsidiaries
to incur, assume or suffer to exist any Indebtedness, except:

     (a) existing Indebtedness outstanding on the Effective Date (such Indebtedness, to the extent
the principal amount thereof is $30,000,000 (or, if denominated in a currency other than U.S.
Dollars, the Dollar Equivalent of $30,000,000) or more, being described on Schedule 5.15 attached hereto), and any subsequent extensions, renewals or refinancings thereof (i) so long
as such Indebtedness is not increased in amount (other than amounts incurred to pay costs of such
extension, renewal or refinancing), the scheduled maturity date thereof (if prior to the Maturity
Date) is not accelerated, the interest rate per annum applicable thereto is not increased, any
scheduled amortization of principal thereunder prior to the Maturity Date is not shortened and the
payments thereunder are not increased, or (ii) such extensions, renewals or refinancings are
otherwise expressly permitted by, and are effected pursuant to, another clause in this Section 6.12
(other than clause (l) hereof);

     (b) Indebtedness under the Credit Documents;

     (c) intercompany loans and advances to the Borrower or its Subsidiaries, and intercompany
loans and advances from any of such Subsidiaries or SPVs to the Borrower or any other Subsidiaries
of the Borrower;

     (d) Indebtedness under any Interest Rate Protection Agreements and any Currency Rate
Protection Agreements;

     (e) Indebtedness (i) under unsecured lines of credit for overdrafts or for working capital
purposes in foreign countries with financial institutions, and (ii) arising from the honoring by a
bank or other Person of a check, draft or similar instrument inadvertently drawing against
insufficient funds, all such Indebtedness not to exceed the Dollar Equivalent of $300,000,000 in
the aggregate at any time outstanding, provided that amounts under overdraft lines of credit or
outstanding as a result of drawings against insufficient funds shall be outstanding for one (1)
Business Day before being included in such aggregate amount;

     (f) Indebtedness of a Person existing at the time such Person becomes a Subsidiary of the
Borrower or is merged, consolidated or amalgamated with or into the Borrower or any Subsidiary of
the Borrower and not incurred in contemplation of such transaction, and extensions, renewals or
refinancings thereof that do not increase the amount of such Indebtedness (other than amounts
included to pay costs of such extension, renewal or refinancing);

     (g) Indebtedness (i) under Performance Guaranties and Performance Letters of Credit, and (ii)
with respect to letters of credit issued in the ordinary course of business;

     (h) Indebtedness created in connection with securitization programs, if any;

     (i) Indebtedness (not otherwise permitted under any other clause of this Section 6.12) in an
aggregate principal amount outstanding for all Subsidiaries not exceeding at the time of

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incurrence thereof (together with all such other Indebtedness outstanding pursuant to this clause (i) at such
time) ten percent (10%) of Consolidated Net Assets (the “Subsidiary Debt Basket Amount”);

     (j) other Indebtedness not otherwise permitted under any other clause of this Section 6.12 so
long as such Subsidiary has in force a Subsidiary Guaranty in substantially the form of Exhibit 6.12, provided that such Subsidiary Guaranty shall contain a provision that
such Subsidiary Guaranty and all obligations thereunder of the Guarantor party thereto shall be
terminated upon delivery to the Administrative Agent by the Borrower of a certificate stating that
(x) the aggregate principal amount of Indebtedness of all Subsidiaries outstanding pursuant to the
preceding clause (i) and this clause (j) is equal to or less than the Subsidiary Debt Basket
Amount, and (y) no Default or Event of Default has occurred and is continuing;

     (k) Indebtedness created in respect of the Angolan Debt and the Pacific Drilling Debt; and

     (l) Extensions, renewals or replacements of Indebtedness permitted by this Section 6.12 that
do not increase the amount of such Indebtedness (other than amounts incurred to pay costs of such
extension, renewal or refinancing).

     Section 6.13. Use of Property and Facilities; Environmental Laws. The Borrower and
its Subsidiaries shall comply in all material respects with all Environmental Laws applicable to or
affecting the properties or business operations of the Borrower or any Subsidiary of the Borrower,
where the failure to comply could reasonably be expected to have a Material Adverse Effect.

     Section 6.14. Transactions with Affiliates. Except as otherwise specifically
permitted herein, or as described on Schedule 6.14, the Borrower and its Subsidiaries shall
not (except pursuant to contracts outstanding as of (i) with respect to the Borrower, the Effective
Date or (ii) with respect to any Subsidiary of the Borrower, the Effective Date or, if later, the
date such Subsidiary first became a Subsidiary of the Borrower), including, without limitation, any
Employee Benefit Plans or related trusts), enter into or engage in any material transaction or
arrangement or series of related transactions or arrangements which in the aggregate would be
material with any Controlling Affiliate (other than the Borrower or any Subsidiaries of the
Borrower), including without limitation, the purchase from, sale to or exchange of property with,
any merger, consolidation or amalgamation with or into, or the rendering of any service by or for,
any Controlling Affiliate (other than the Borrower or any Subsidiaries of the Borrower), except
pursuant to the requirements of the Borrower’s or such Subsidiary’s business and unless such
transaction or arrangement or series of related transactions or arrangements, taken as a whole, are
no less favorable to the Borrower or such Subsidiary than would be obtained in an arms’ length
transaction with a Person not a Controlling Affiliate (other than the Borrower or any Subsidiaries
of the Borrower).

     Section 6.15. Sale and Leaseback Transactions. The Borrower will not, and will not
permit any of its Subsidiaries to, enter into, assume, or suffer to exist any Sale-Leaseback
Transaction, except any such transaction that may be entered into, assumed or suffered to exist

45

 

without violating any other provision of this Agreement, including without limitation, Section 6.17
or 6.18.

     Section 6.16. Compliance with Laws. Without limiting any of the other covenants of
the Borrower in this Article 6, the Borrower and its Subsidiaries shall conduct their business, and
otherwise be, in compliance with all applicable laws, regulations, ordinances and orders of any
governmental or judicial authorities; provided, however, that this Section 6.16 shall not require
the Borrower or any Subsidiary of the Borrower to comply with any such law, regulation, ordinance
or order if (x) it shall be contesting such law, regulation, ordinance or order in good faith by
appropriate proceedings and reserves in conformity with GAAP have been provided therefor, or (y)
the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.

     Section 6.17. Indebtedness to Total Tangible Capitalization Ratio. The Borrower will
maintain, as of the end of each fiscal quarter of the Borrower ending on or after December 31,
2009, a ratio of Consolidated Indebtedness to Total Tangible Capitalization of no greater than
0.60:1.00.

     Section 6.18. Leverage Ratio. The Borrower will maintain (i) as of June 30, 2008, a
Leverage Ratio of no greater than 3.50:1.00, and (ii) as of the end of each fiscal quarter of the
Borrower ending after June 30, 2008 through the fiscal quarter ending September 30, 2009, a
Leverage Ratio (on a pro forma basis, as applicable) of no greater than 3.00:1.00.

ARTICLE 7. EVENTS OF DEFAULT AND REMEDIES.

     Section 7.1. Events of Default. Any one or more of the following shall constitute an
Event of Default:

     (a) default by the Borrower in the payment of any principal amount of any Term Loan or any
interest thereon, or any fees payable hereunder, within three (3) Business Days following the date
when due;

     (b) default by the Borrower in the observance or performance of any covenant set forth in
Sections 6.10, 6.11, 6.17 or 6.18;

     (c) default by the Borrower in the observance or performance of any provision hereof or of any
other Credit Document not mentioned in clauses (a) or (b) above, which is not remedied within
thirty (30) days after notice thereof to the Borrower by the Administrative Agent;

     (d) any representation or warranty made or deemed made herein or in any other Credit Document
by the Borrower or any Subsidiary proves untrue in any material respect as of the date of the
making, or deemed making, thereof;

     (e) (x) Indebtedness in the aggregate principal amount of the Dollar Equivalent of
$125,000,000 of the Borrower and its Subsidiaries (“Material Indebtedness”) shall (i) not be paid

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at maturity (beyond any applicable grace periods), or (ii) be declared to be due and payable
or required to be prepaid, redeemed or repurchased prior to its stated maturity, or (y) any default
in respect of Material Indebtedness shall occur which permits the holders thereof, or any trustees
or agents on their behalf, to accelerate the maturity of such Indebtedness or requires such
Indebtedness to be prepaid, redeemed, or repurchased prior to its stated maturity;

     (f) the Borrower or any Significant Subsidiary (i) has entered involuntarily against it an
order for relief under the United States Bankruptcy Code or a comparable action is taken under any
bankruptcy or insolvency law of another country or political subdivision of such country, (ii)
generally does not pay, or admits its inability generally to pay, its debts as they become due,
(iii) makes a general assignment for the benefit of creditors, (iv) applies for, seeks, consents
to, or acquiesces in, the appointment of a receiver, custodian, trustee, liquidator or similar
official for it or any substantial part of its property under the United States Bankruptcy Code or
under the bankruptcy or insolvency laws of another country or a political subdivision of such
country, (v) institutes any proceeding seeking to have entered against it an order for relief under
the United States Bankruptcy Code or any comparable law, to adjudicate it insolvent, or seeking
dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it
or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors or fails to file an answer or other pleading denying the material allegations of or
consents to or acquiesces in any such proceeding filed against it, (vi) makes any board of
directors resolution in direct furtherance of any matter described in clauses (i)-(v) above, or
(vii) fails to contest in good faith any appointment or proceeding described in this Section
7.1(f);

     (g) a custodian, receiver, trustee, liquidator or similar official is appointed for the
Borrower or any Significant Subsidiary or any substantial part of its property under the United
States Bankruptcy Code or under the bankruptcy or insolvency laws of another country or a political
subdivision of such country, or a proceeding described in Section 7.1(f)(v) is instituted against
the Borrower or any Significant Subsidiary, and such appointment continues undischarged or such
proceeding continues undismissed and unstayed for a period of sixty (60) days (or one hundred
twenty (120) days in the case of any such event occurring outside the United States of America);

     (h) the Borrower or any Subsidiaries of the Borrower fail within thirty (30) days with respect
to any judgments or orders that are rendered in the United States or sixty (60) days with respect
to any judgments or orders that are rendered in foreign jurisdictions (or such earlier date as any
execution on such judgments or orders shall take place) to vacate, pay, bond or otherwise discharge
any judgments or orders for the payment of money the uninsured portion of which is in excess of the
Dollar Equivalent of $125,000,000 in the aggregate and which are not stayed on appeal or otherwise
being appropriately contested in good faith in a manner that stays execution;

     (i) (x) the Borrower or any Subsidiary of the Borrower fails to pay when due an amount that it
is liable to pay to the PBGC or to a Plan under Title IV of ERISA; or a notice of intent to
terminate a Plan having Unfunded Vested Liabilities of the Borrower or any of its Subsidiaries in
excess of the Dollar Equivalent of $125,000,000 (a “Material Plan”) is filed under Title IV of
ERISA; or the PBGC institutes proceedings under Title IV of ERISA to terminate or to cause a
trustee to be appointed to administer any Material Plan or a proceeding is

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instituted by a fiduciary of any Material Plan against any Borrower or any Subsidiary to collect
any liability under Section 515 or 4219(c)(5) of ERISA, and in each case such proceeding is not
dismissed within thirty (30) days thereafter; or a condition exists by reason of which the PBGC
would be entitled to obtain a decree adjudicating that any Material Plan must be terminated, and
(y) the occurrence of one or more of the matters in the preceding clause (x) could reasonably be
expected to result in liabilities in excess of the Dollar Equivalent of $125,000,000;

     (j) any Person or group of Persons acting in concert (as such terms are used in Rule 13d-5
under the Securities Exchange Act of 1934, as amended) shall own, directly or indirectly,
beneficially or of record, securities of the Borrower (or other securities convertible into such
securities) representing fifty percent (50%) or more of the combined voting power of all
outstanding securities of the Borrower entitled to vote in the election of directors, other than
securities having such power only by reason of the happening of a contingency; or

     (k) the existence or occurrence of any “Event of Default” as defined in either of the
Revolving Credit Agreements as then in effect.

     Section 7.2. Non-Bankruptcy Defaults. When any Event of Default (other than those
described in subsections (f) or (g) of Section 7.1 with respect to the Borrower) has occurred and
is continuing, the Administrative Agent shall, by notice to the Borrower: (a) if so directed by the
Required Lenders, terminate the remaining Commitments to the Borrower hereunder on the date stated
in such notice (which may be the date thereof) and (b) if so directed by the Required Lenders,
declare the principal of and the accrued interest on all outstanding Term Loans to be forthwith due
and payable and thereupon all outstanding Term Loans, including both principal and interest
thereon, shall be and become immediately due and payable together with all other accrued amounts
payable under the Credit Documents without further demand, presentment, protest or notice of any
kind, including, but not limited to, notice of intent to accelerate and notice of acceleration,
each of which is expressly waived by the Borrower. The Administrative Agent, after giving notice
to the Borrower pursuant to this Section 7.2, shall also promptly send a copy of such notice to the
other Lenders, but the failure to do so shall not impair or annul the effect of such notice.

     Section 7.3. Bankruptcy Defaults. When any Event of Default described in subsections
(f) or (g) of Section 7.1 has occurred and is continuing with respect to the Borrower, then all
outstanding Term Loans shall immediately become due and payable together with all other accrued
amounts payable under the Credit Documents without presentment, demand, protest or notice of any
kind, each of which is expressly waived by the Borrower; and all obligations of the Lenders to
extend further credit pursuant to any of the terms hereof shall immediately terminate.

     Section 7.4. Notice of Default. The Administrative Agent shall give notice to the
Borrower under Section 7.2 promptly upon being requested to do so by the Required Lenders and shall
thereupon notify all the Lenders thereof.

     Section 7.5. Expenses. The Borrower agrees to pay to the Administrative Agent and
each Lender all reasonable out-of-pocket expenses
incurred or paid by the Administrative Agent

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or such Lender, including reasonable attorneys’
fees and court costs, in connection with any Default or Event of Default hereunder or in connection
with the enforcement of any of the Credit Documents.

     Section 7.6. Distribution and Application of Proceeds. After the occurrence of and
during the continuance of an Event of Default, any payment to the Administrative Agent or any
Lender hereunder or otherwise shall be paid to the Administrative Agent to be distributed and
applied as follows (unless otherwise agreed by the Borrower, the Administrative Agent, and all
Lenders):

     (a) First, to the payment of any and all reasonable out-of-pocket costs and expenses of the
Administrative Agent, including without limitation, reasonable attorneys’ fees and out-of-pocket
costs and expenses, as provided by this Agreement or by any other Credit Document, incurred in
connection with the collection of such payment or in respect of the enforcement of any rights of
the Administrative Agent or the Lenders under this Agreement or any other Credit Document;

     (b) Second, to the payment of any and all reasonable out-of-pocket costs and expenses of the
Lenders, including, without limitation, reasonable attorneys’ fees and out-of-pocket costs and
expenses, as provided by this Agreement or by any other Credit Document, incurred in connection
with the collection of such payment or in respect of the enforcement of any rights of the Lenders
under this Agreement or any other Credit Document, pro rata in the proportion in which the amount
of such costs and expenses unpaid to each Lender bears to the aggregate amount of the costs and
expenses unpaid to all Lenders collectively, until all such fees, costs and expenses have been paid
in full;

     (c) Third, to the payment of any due and unpaid fees to the Administrative Agent or any Lender
as provided by this Agreement or any other Credit Document, pro rata in the proportion in which the
amount of such fees due and unpaid to the Administrative Agent and each Lender bears to the
aggregate amount of the fees due and unpaid to the Administrative Agent and all Lenders
collectively, until all such fees have been paid in full;

     (d) Fourth, to the payment of accrued and unpaid interest on the Term Loans to the date of
such application, pro rata in the proportion in which the amount of such interest, accrued and
unpaid to each Lender bears to the aggregate amount of such interest accrued and unpaid to all
Lenders collectively, until all such accrued and unpaid interest has been paid in full;

     (e) Fifth, to the payment of the outstanding due and payable principal amount of each of the
Term Loans, pro rata in the proportion in which the outstanding principal amount of such Term Loans
owing to each Lender bears to the aggregate amount of all outstanding Term Loans;

     (f) Sixth, to the payment of any other outstanding Obligations then due and payable, pro rata
in the proportion in which the outstanding Obligations owing to each Lender and the Administrative
Agent bears to the aggregate amount of all such Obligations until all such Obligations have been
paid in full; and

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     (g) Seventh, to the Borrower or as the Borrower may direct.

ARTICLE
8. CHANGE IN CIRCUMSTANCES.

     Section 8.1. Change of Law.

     (a) Notwithstanding any other provisions of this Agreement or any Note, if at any time any
change, after the date hereof (or, if later, after the date the Administrative Agent or any Lender
becomes the Administrative Agent or a Lender), in applicable law or regulation or in the
interpretation thereof makes it unlawful for any Lender to make or maintain Eurodollar Loans, such
Lender shall promptly give written notice thereof and of the basis therefor in reasonable detail to
the Borrower, and such Lender’s obligations to fund affected Eurodollar Loans or make, continue or
convert such Loans under this Agreement shall thereupon be suspended until it is no longer unlawful
for such Lender to make or maintain such Eurodollar Loans.

     (b) Upon the giving of the notice to Borrower referred to in subsection (a) above in respect
of any such Eurodollar Loan, and provided the Borrower shall not have prepaid such Eurodollar Loan
pursuant to Section 2.10, (i) any outstanding such Eurodollar Loan of such Lender shall be
automatically converted to a Base Rate Loan on the last day of the Interest Period then applicable
thereto or on such earlier date as required by law, and (ii) such Lender shall make or continue its
portion of any requested Borrowing of such Eurodollar Loan as a Base Rate Loan, which Base Rate
Loan shall, for all other purposes, be considered part of such Borrowing.

     (c) Any Lender that has given any notice pursuant to Section 8.1(a) shall, upon determining
that it would no longer be unlawful for it to make such Eurodollar Loans, give prompt written
notice thereof to the Borrower and the Administrative Agent, and upon giving such notice, its
obligation to make, allow conversions into and maintain such Eurodollar Loans shall be reinstated.

     Section 8.2. Unavailability of Deposits or Inability to Ascertain LIBOR Rate. If on
or before the first day of any Interest Period for any Borrowing of Eurodollar Loans the
Administrative Agent determines in good faith (after consultation with the other Lenders) that, due
to changes in circumstances since the date hereof, adequate and fair means do not exist for
determining the LIBOR Rate (including without limitation, the unavailability of matching deposits
in the applicable currency) or such rate will not accurately reflect the cost to the Required
Lenders of funding Eurodollar Loans for such Interest Period, the Administrative Agent shall give
written notice (in reasonable detail) of such determination and of the basis therefor to the
Borrower and the Lenders, whereupon until the Administrative Agent notifies the Borrower and
Lenders that the circumstances giving rise to such suspension no longer exist (which the
Administrative Agent shall do promptly after they do not exist), (i) the obligations of the
Lenders to make, continue or convert Loans as or into such Eurodollar Loans, or to convert Base
Rate Loans into such Eurodollar Loans, shall be suspended and (ii) each Eurodollar Loan
will automatically on the last day of the then existing Interest Period therefor, convert into
a Base Rate Loan.

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     Section 8.3. Increased Cost and Reduced Return.

     (a) If, on or after the date hereof, the adoption of or any change in any applicable law, rule
or regulation, or any change in the interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Lender (or its applicable Lending Office), with any request or
directive (whether or not having the force of law) of any such authority, central bank or
comparable agency exercising control over banks or financial institutions generally issued after
the date hereof (or, if later, after the date the Administrative Agent or such Lender becomes the
Administrative Agent or a Lender):

     (i) subjects any Lender (or its applicable Lending Office) to any tax, duty or other
charge related to any Eurodollar Loan or its obligation to advance or maintain Eurodollar
Loans, or shall change the basis of taxation of payments to any Lender (or its applicable
Lending Office) of the principal of or interest on its Eurodollar Loans or any
participations in any thereof, or any other amounts due under this Agreement related to its
Eurodollar Loans or participations therein, or its obligation to make Eurodollar Loans or
acquire participations therein (except for changes with respect to taxes that are not
Indemnified Taxes pursuant to Section 3.3); or

     (ii) imposes, modifies or deems applicable any reserve, special deposit or similar
requirement (including, without limitation, any such requirement imposed by the Board of
Governors of the Federal Reserve System, but excluding for any Eurodollar Loan any such
requirement included in an applicable Statutory Reserve Rate) against assets of, deposits
with or for the account of, or credit extended by, any Lender (or its applicable Lending
Office) or imposes on any Lender (or its Lending Office) or on the interbank market any
other condition affecting its Eurodollar Loans or its participation in any thereof, or its
obligation to advance or maintain Eurodollar Loans or participate in any thereof;

and the result of any of the foregoing is to increase the cost to such Lender (or its applicable
Lending Office) of advancing or maintaining any Eurodollar Loan, or to reduce the amount of any sum
received or receivable by such Lender (or its applicable Lending Office) in connection therewith
under this Agreement or its Note, by an amount deemed by such Lender to be material, then, subject
to Section 8.3(c), from time to time, within thirty (30) days after receipt of a certificate from
such Lender (with a copy to the Administrative Agent) pursuant to subsection (c) below setting
forth in reasonable detail such determination and the basis thereof, the Borrower shall be
obligated to pay to such Lender such additional amount or amounts as will compensate such Lender
for such increased cost or reduction.

     (b) If, after the date hereof, the Administrative Agent or any Lender shall have reasonably
determined that the adoption after the date hereof of any applicable law, rule or
regulation regarding capital adequacy, or any change therein (including, without limitation,
any revision in the Final Risk-Based Capital Guidelines of the Board of Governors of the Federal
Reserve System (12 CFR Part 208, Appendix A; 12 CFR Part 225, Appendix A) or of the Office

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of the
Comptroller of the Currency (12 CFR Part 3, Appendix A), or in any other applicable capital
adequacy rules heretofore adopted and issued by any governmental authority), or any change after
the date hereof in the interpretation or administration thereof by any governmental authority,
central bank or comparable agency charged with the interpretation or administration thereof, or
compliance by the Administrative Agent or any Lender (or its applicable Lending Office) with any
request or directive regarding capital adequacy (whether or not having the force of law) of any
such authority, central bank or comparable agency, has or would have the effect of reducing the
rate of return on such Lender’s capital, or on the capital of any corporation controlling such
Lender, as a consequence of its obligations hereunder to a level below that which such Lender could
have achieved but for such adoption, change or compliance (taking into consideration such Lender’s
or its controlling corporation’s policies with respect to capital adequacy in effect immediately
before such adoption, change or compliance) by an amount reasonably deemed by such Lender to be
material, then, subject to Section 8.3(c), from time to time, within thirty (30) days after its
receipt of a certificate from such Lender (with a copy to the Administrative Agent) pursuant to
subsection (c) below setting forth in reasonable detail such determination and the basis thereof,
the Borrower shall pay to such Lender such additional amount or amounts as will compensate such
Lender for such reduction or the Borrower may prepay all Eurodollar Loans of such Lender.

     (c) The Administrative Agent and each Lender that determines to seek compensation or
additional interest under this Section 8.3 shall give written notice to the Borrower and, in the
case of a Lender other than the Administrative Agent, the Administrative Agent of the circumstances
that entitle the Administrative Agent or such Lender to such compensation no later than ninety (90)
days after the Administrative Agent or such Lender receives actual notice or obtains actual
knowledge of the law, rule, order or interpretation or occurrence of another event giving rise to a
claim hereunder. In any event the Borrower shall not have any obligation to pay any amount with
respect to claims accruing prior to the ninetieth day preceding such written demand, except if the
law, rule, order or interpretation giving rise to such request for compensation has retroactive
effect, such ninety (90) day period shall be extended to include such retroactive period. The
Administrative Agent and each Lender shall use reasonable efforts to avoid the need for, or reduce
the amount of, such compensation, additional interest, and any payment under Section 3.3,
including, without limitation, the designation of a different Lending Office, if such action or
designation will not, in the sole judgment of the Administrative Agent or such Lender made in good
faith, be otherwise disadvantageous to it; provided that the foregoing shall not in any way affect
the rights of any Lender or the obligations of the Borrower under this Section 8.3, and provided
further that no Lender shall be obligated to make its Eurodollar Loans hereunder at any office
located in the United States of America. A certificate of the Administrative Agent or any Lender,
as applicable, claiming compensation or additional interest under this Section 8.3, and setting
forth the additional amount or amounts to be paid to it hereunder and accompanied by a statement
prepared by the Administrative Agent or such Lender describing in reasonable detail the
calculations thereof shall be prima facie evidence of the correctness thereof. In determining such
amount, such Lender may use any reasonable averaging and attribution methods.

     Section 8.4. Lending Offices. The Administrative Agent and each Lender may, at its
option, elect to make or maintain its Term Loans hereunder at the Lending Office for each Type

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of
Term Loan available hereunder or at such other of its branches, offices or affiliates as it may
from time to time elect and designate in a written notice to the Borrower and the Administrative
Agent, provided that, except in the case of any such transfer to another of its branches, offices
or affiliates made at the request of the Borrower, the Borrower shall not be responsible for the
costs arising under Section 3.3 or 8.3 resulting from any such transfer to the extent not otherwise
applicable to such Lender prior to such transfer.

     Section 8.5. Discretion of Lender as to Manner of Funding. Subject to the other
provisions of this Agreement, each Lender shall be entitled to fund and maintain its funding of all
or any part of its Term Loans in any manner it sees fit.

     Section 8.6. Substitution of Lender. If (a) any Lender has demanded compensation or
additional interest or given notice of its intention to demand compensation or additional interest
under Section 8.3, (b) the Borrower is required to pay any additional amount to any Lender under
Section 2.12, (c) any Lender is unable to submit any form or certificate required under Section
3.3(b) or withdraws or cancels any previously submitted form with no substitution therefor, (d) any
Lender gives notice of any change in law or regulations, or in the interpretation thereof, pursuant
to Section 8.1, (e) any Lender has been declared insolvent or a receiver or conservator has been
appointed for a material portion of its assets, business or properties, (f) any Lender shall seek
to avoid its obligation to make or maintain Term Loans hereunder for any reason, including, without
limitation, reliance upon 12 U.S.C. § 1821(e) or (n) (1) (B), (g) any taxes referred to in Section
3.3 have been levied or imposed (or the Borrower determines in good faith that there is a
substantial likelihood that such taxes will be levied or imposed) so as to require withholding or
deductions by the Borrower or payment by the Borrower of additional amounts to any Lender, or other
reimbursement or indemnification of any Lender, as a result thereof, or (h) any Lender shall
decline to consent to a modification or waiver of the terms of this Agreement or any other Credit
Documents requested by the Borrower, then and in such event, upon request from the Borrower
delivered to such Lender, and the Administrative Agent, such Lender shall assign, in accordance
with the provisions of Section 10.10 and an appropriately completed Assignment Agreement, all of
its rights and obligations under the Credit Documents to another Lender or a commercial banking
institution selected by the Borrower and (in the case of a commercial banking institution other
than a Lender) reasonably satisfactory to the Administrative Agent, in consideration for the
payments set forth in such Assignment Agreement and payment by the Borrower to such Lender of all
other amounts which such Lender may be owed pursuant to this Agreement, including, without
limitation, Sections 2.12, 3.3, 8.3 and 10.13.

ARTICLE 9. THE AGENTS.

     Section 9.1. Appointment and Authorization of Administrative Agent and Other Agents.
Each Lender hereby appoints Citibank, N.A. as the Administrative Agent under the Credit Documents
and hereby authorizes the Administrative Agent to take such action as the Administrative Agent on
each of its behalf and to exercise such powers under the Credit Documents as are delegated to the
Administrative Agent by the terms thereof, together with such powers as are reasonably incidental
thereto. None of the other Lenders appointed as one of the Other Agents shall have any duties,
responsibilities, or obligations hereunder in such capacity.

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     Section 9.2. Rights and Powers. The Administrative Agent and the Other Agents shall
have the same rights and powers under the Credit Documents as any other Lender and may exercise or
refrain from exercising such rights and power as though it were not the Administrative Agent or an
Other Agent, and the Administrative Agent and the Other Agents and their respective affiliates may
accept deposits from, lend money to, and generally engage in any kind of business with the Borrower
or any of its Subsidiaries or affiliates as if it were not an Administrative Agent or an Other
Agent under the Credit Documents. The term Lender as used in all Credit Documents, unless the
context otherwise clearly requires, includes the Administrative Agent and the Other Agents in their
respective individual capacities as a Lender.

     Section 9.3. Action by Administrative Agent and the Other Agents. The obligations of
the Administrative Agent under the Credit Documents are only those expressly set forth therein.
Without limiting the generality of the foregoing, the Administrative Agent shall not be required to
take any action concerning any Default or Event of Default, except as expressly provided in
Sections 7.2 and 7.4. Unless and until the Required Lenders (or, if required by Section 10.11, all
of the Lenders) give such direction (including, without limitation, the giving of a notice of
default as described in Section 7.1(c)), the Administrative Agent may, except as otherwise
expressly provided herein or therein, take or refrain from taking such actions as it deems
appropriate and in the best interest of all the Lenders. In no event, however, shall the
Administrative Agent be required to take any action in violation of applicable law or of any
provision of any Credit Document, and each of the Administrative Agent shall in all cases be fully
justified in failing or refusing to act hereunder or under any other Credit Document unless it
first receives any further assurances of its indemnification from the Lenders that it may require,
including prepayment of any related expenses and any other protection it requires against any and
all costs, expenses, and liabilities it may incur in taking or continuing to take any such action.
The Administrative Agent shall be entitled to assume that no Default or Event of Default, other
than non-payment of any scheduled principal or interest payment due hereunder, exists unless
notified in writing to the contrary by a Lender or the Borrower. In all cases in which the Credit
Documents do not require the Administrative Agent to take specific action, the Administrative Agent
shall be fully justified in using its discretion in failing to take or in taking any action
thereunder. Any instructions of the Required Lenders, or of any other group of Lenders called for
under specific provisions of the Credit Documents, shall be binding on all the Lenders and holders
of Notes.

     Section 9.4. Consultation with Experts. The Administrative Agent may consult with
legal counsel, independent public
accountants and other experts selected by it and shall not be liable for any action taken or
omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants
or experts.

     Section 9.5. Indemnification Provisions; Credit Decision. Neither the Administrative
Agent nor any of its directors, officers, agents, or employees shall be liable for any action taken
or not taken by them in connection with the Credit Documents (i) with the consent or at the request
of the Required Lenders (or, if required by Section 10.11, all of the Lenders), or (ii) in the
absence of their own gross negligence, bad faith, or willful misconduct. Neither the
Administrative Agent nor any of its directors, officers, agents or employees shall be responsible
for or have any duty to ascertain, inquire into or verify (i) any statement, warranty or

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representation made in connection with this Agreement, any other Credit Document or any Borrowing;
(ii) the performance or observance of any of the covenants or agreements of the Borrower or any
Subsidiary contained herein or in any other Credit Document; (iii) the satisfaction of any
condition specified in Article 4, except receipt of items required to be delivered to the
Administrative Agent; or (iv) the validity, effectiveness, genuineness, enforceability, value,
worth or collectibility hereof or of any other Credit Document or of any other documents or
writings furnished in connection with any Credit Document; and the Administrative Agent makes no
representation of any kind or character with respect to any such matters mentioned in this
sentence. The Administrative Agent may execute any of its duties under any of the Credit Documents
by or through employees, agents, and attorneys-in-fact and shall not be answerable to the Lenders
or any other Person for the default or misconduct of any such agents or attorneys-in-fact selected
with reasonable care. The Administrative Agent shall not incur any liability by acting in reliance
upon any notice, consent, certificate, other document or statement (whether written or oral)
believed by it to be genuine or to be sent by the proper party or parties. In particular and
without limiting any of the foregoing, the Administrative Agent shall have no responsibility for
confirming the accuracy of any Compliance Certificate or other document or instrument received by
any of them under the Credit Documents. The Administrative Agent may treat the payee of any Note
as the holder thereof until written notice of transfer shall have been filed with such
Administrative Agent signed by such owner in form satisfactory to such Administrative Agent. Each
Lender acknowledges that it has independently, and without reliance on the Administrative Agent or
any other Lender, obtained such information and made such investigations and inquiries regarding
the Borrower and its Subsidiaries as it deems appropriate, and based upon such information,
investigations and inquiries, made its own credit analysis and decision to extend credit to the
Borrower in the manner set forth in the Credit Documents. It shall be the responsibility of each
Lender to keep itself informed about the creditworthiness and business, properties, assets,
liabilities, condition (financial or otherwise) and prospects of the Borrower and its Subsidiaries,
and the Administrative Agent shall have no liability whatsoever to any Lender for such matters.
The Administrative Agent shall have no duty to disclose to the Lenders information that is not
required by any Credit Document to be furnished by the Borrower or any Subsidiaries to such Agent
at such time, but is voluntarily furnished to such Agent (either in its respective capacity as
Administrative Agent or in its individual capacity).

     Section 9.6. Indemnity. The Lenders shall ratably, in accordance with their
Percentages, indemnify and hold the Administrative Agent and its directors, officers, employees,
agents and representatives harmless from and against any liabilities, losses, costs or expenses
suffered or incurred by them, in each case in their capacity as such, under any Credit Document or
in connection with the transactions contemplated hereby or thereby, regardless of when asserted or
arising, except to the extent they are promptly reimbursed for the same by the Borrower and except
to the extent that any event giving rise to a claim was caused by the gross negligence or willful
misconduct of the party seeking to be indemnified. The obligations of the Lenders under this
Section 9.6 shall survive termination of this Agreement.

     Section 9.7. Resignation. The Administrative Agent may resign at any time and shall
resign upon any removal thereof as a Lender pursuant to the terms of this Agreement upon at least
thirty (30) days’ prior written notice to the Lenders and the Borrower. Any resignation of

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the
Administrative Agent shall not be effective until a replacement therefor is appointed pursuant to
the terms hereof. Upon any such resignation of the Administrative Agent, the Required Lenders and,
so long as no Event of Default shall then exist, with the consent of the Borrower (which consent
shall not be unreasonably withheld or delayed) shall have the right to appoint a successor
Administrative Agent. If no successor Administrative Agent shall have been so appointed by the
Required Lenders and shall have accepted such appointment within thirty (30) days after the
retiring Administrative Agent’s giving of notice of resignation, then the retiring Administrative
Agent may, on behalf of the Lenders and, so long as no Event of Default shall then exist, with the
consent of the Borrower (which consent shall not be unreasonably withheld or delayed) appoint a
successor Administrative Agent which shall be any Lender hereunder or any commercial bank organized
under the laws of the United States of America or of any State thereof and having a combined
capital and surplus of at least $1,000,000,000. Upon the acceptance of its appointment as the
Administrative Agent hereunder, such successor Administrative Agent shall thereupon succeed to and
become vested with all the rights and duties of the retiring Administrative Agent under the Credit
Documents, and the retiring Administrative Agent shall be discharged from its duties and
obligations thereunder. After any retiring Administrative Agent’s resignation hereunder as
Administrative Agent the provisions of this Article 9 and all protective provisions of the other
Credit Documents shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent.

     Section 9.8. Sub-Agents. The Administrative Agent may designate one or more
Sub-Agents under this Agreement to carry out certain duties of the Administrative Agent as
described herein. Each Sub-Agent shall be subject to each of the obligations in this Agreement to
be performed by such Sub-Agent, and each of the Borrower and the Lenders agrees that each Sub-Agent
shall be entitled to exercise each of the rights and shall be entitled to each of the benefits of
the Administrative Agent under this Agreement as relate to the performance of its obligations
hereunder.

ARTICLE 10. MISCELLANEOUS.

     Section 10.1. No Waiver. No delay or failure on the part of the Administrative Agent
or any Lender, or on the part of the holder or holders of any Notes, in the exercise of any power,
right or remedy under any Credit Document shall operate as a waiver thereof or as an acquiescence
in any default, nor shall any single or partial exercise thereof preclude any other or further
exercise of any other power, right or remedy. To the fullest extent permitted by applicable law,
the powers, rights and remedies under the Credit Documents of the Administrative Agent, the
Lenders, and the holder or holders of any Notes are cumulative to, and not exclusive of, any
powers, rights or remedies any of them would otherwise have.

     Section 10.2. Non-Business Day. Subject to Section 2.5, if any payment of principal
or interest on any portion of any Term Loan or any other Obligation shall fall due on a day which
is not a Business Day, interest or fees (as applicable) at the rate, if any, such portion of any
Term Loan or other Obligation bears for the period prior to maturity shall continue to accrue in
the manner set forth herein on such Obligation from the stated due date thereof to the next
succeeding Business Day, on which the same shall instead be payable.

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     Section 10.3. Documentary Taxes. The Borrower agrees that it will pay any
documentary, stamp or similar taxes payable with respect to any Credit Document, including interest
and penalties, in the event any such taxes are assessed irrespective of when such assessment is
made, other than any such taxes imposed as a result of any transfer of an interest in a Credit
Document. Each Lender that determines to seek compensation under this Section 10.3 shall give
written notice to the Borrower and, in the case of a Lender other than the Administrative Agent,
the Administrative Agent of the circumstances that entitle such Lender to such compensation no
later than ninety (90) days after such Lender receives actual notice or obtains actual knowledge of
the law, rule, order or interpretation or occurrence of another event giving rise to a claim
hereunder. In any event, the Borrower shall not have any obligation to pay any amount with respect
to claims accruing prior to the 90th day preceding such written demand.

     Section 10.4. Survival of Representations. All representations and warranties made
herein or in certificates given pursuant hereto shall survive the execution and delivery of this
Agreement and the other Credit Documents, and shall continue in full force and effect with respect
to the date as of which they were made as long as the Borrower has any Obligation hereunder or any
Commitment hereunder is in effect.

     Section 10.5. Survival of Indemnities. All indemnities and all provisions relative to
reimbursement to the Lenders of amounts sufficient to protect the yield of the Lenders with respect
to the Loans, including, but not limited to, Section 2.12, Section 3.3, Section 7.6, Section 8.3,
Section 10.3, and Section 10.13 hereof, shall, subject to Section 8.3(c), survive the termination
of this Agreement and the other Credit Documents and the payment of the Term Loans and all other
Obligations and, with respect to any Lender, any replacement by the Borrower of such Lender
pursuant to the terms hereof, in each case for a period of one (1) year.

     Section 10.6. Setoff. In addition to any rights now or hereafter granted under
applicable law and not by way of limitation of any such rights, upon the occurrence of, and
throughout the continuance of, any Event of Default, each Lender and each subsequent holder of any
Note is hereby authorized by the Borrower at any time or from time to time, without notice to the
Borrower or any other Person, any such notice being hereby expressly waived, to set off and to
appropriate and to apply any and all deposits (general or special, including, but not limited to,
Indebtedness evidenced by certificates of deposit, whether matured or unmatured, but not including
trust accounts, and in whatever currency denominated) and any other Indebtedness at any time owing
by that Lender or that subsequent holder to or for the credit or the account of the Borrower,
whether or not matured, against and on account of the due and unpaid obligations and liabilities of
the Borrower to that Lender or that subsequent holder under the Credit Documents, irrespective of
whether or not that Lender or that subsequent holder shall have made any demand hereunder. Each
Lender shall promptly give notice to the Borrower of any action taken by it under this Section
10.6, provided that any failure of such Lender to give such notice to the Borrower shall not affect
the validity of such setoff. Each Lender agrees with each other Lender a party hereto that if such
Lender receives and retains any payment, whether by setoff or application of deposit balances or
otherwise, in respect of the Term Loans in excess of its ratable share of payments on all such
Obligations then owed to the Lenders hereunder, then such Lender shall purchase for cash at face
value, but without recourse, ratably from each of the other Lenders such amount of the Term Loans
and participations therein held by each such other

57

 

Lender as shall be necessary to cause such
Lender to share such excess payment ratably with all the other Lenders; provided, however, that if
any such purchase is made by any Lender, and if such excess payment or part thereof is thereafter
recovered from such purchasing Lender, the related purchases from the other Lenders shall be
rescinded ratably and the purchase price restored as to the portion of such excess payment so
recovered, but without interest.

     Section 10.7. Notices.

     (a) Except as otherwise specified herein, all notices under the Credit Documents shall be in
writing (including facsimile or other electronic means) and shall be given to a party hereunder at
its address or facsimile number set forth below or such other address or facsimile number as such
party may hereafter specify by notice to the Administrative Agent and the Borrower, given by
courier, by United States certified or registered mail, by telegram or by other telecommunication
device capable of creating a written record of such notice and its receipt. Notices under the
Credit Documents to the Lenders shall be addressed to their respective domestic Lending Offices in
the United States at the respective addresses or facsimile numbers, or telephone numbers set forth
on their applicable Administrative Questionnaire or, in the case of Persons becoming Lenders
pursuant to Assignment Agreements, on their applicable Assignment Agreements, and to the Borrower
and the Administrative Agent as follows:

	 	 	 
	To the Borrower:
	 	Transocean Inc. 
P. O. Box 10342
	 
	 	West Wind
	 
	 	70 Harbour Drive, 4th Floor
	 
	 	Block B
	 
	 	George Town, Grand Cayman KYI-1003
	 
	 	Cayman Islands, B.W.I.
	 
	 	Attention:  Steve McFadin
	 
	 	Telephone No.:  (345) 745-4500
	 
	 	Fax No.:  (345) 745-4504
	 
	 	 
	With copies to:
	 	Transocean Inc.
	 
	 	4 Greenway Plaza
	 
	 	Houston, Texas 77046
	 
	 	Attention:  Anil Shah
	 
	 	Telephone No.:  (713) 232-7173
	 
	 	Fax No.:  (713) 626-9556
	 
	 	 
	 
	 	Baker Botts LLP
	 
	 	One Shell Plaza
	 
	 	Houston, Texas 77002-4995
	 
	 	Attention:  Stephen Krebs
	 
	 	Telephone No.:  (713) 229-1467
	 
	 	Fax No.:  (713) 229-1522

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	To the Administrative Agent:
	 	Citibank, N.A.
	 
	 	Two Penns Way, Suite 200
	 
	 	New Castle, Delaware 19720
	 
	 	Attention:  Bank Loan Syndications
	 
	 	Fax No.:  (212) 994-0961
	 
	 	 
	With copies to:
	 	Citibank, N.A.
	 
	 	Global Corporate & Investment Banking
	 
	 	388 Greenwich Street, 23rd Floor
	 
	 	New York, New York 10013
	 
	 	Telephone No.:  (212) 816-5435
	 
	 	Fax No.:  (646) 291-1688
	 
	 	 
	 
	 	King & Spalding LLP
	 
	 	1180 Peachtree Street, N.E.
	 
	 	Atlanta, Georgia 30309-3521
	 
	 	Attention:  A.H. Conrad, Jr.
	 
	 	Telephone No.:  (404) 572-4807
	 
	 	Fax No.:  (404) 572-5128

Each such notice, request or other communication shall be effective (i) if given by facsimile, when
such facsimile is transmitted to the facsimile number specified in this Section 10.7 or pursuant to
Section 10.10 and a confirmation of receipt of such facsimile has been received by the sender, (ii)
if given by courier, when delivered, (iii) if given by mail, five (5) days after such communication
is deposited in the mail, certified or registered with return receipt requested, or (iv) if given
by any other means, when delivered at the addresses specified in this Section 10.7, or pursuant to
Section 10.10; provided that any notice given pursuant to Article 2 shall be effective only upon
receipt and, provided further, that any notice that but for this proviso would be effective after
the close of business on a Business Day or on a day that is not a Business Day shall be effective
at the opening of business on the next Business Day.

     (b) The Borrower will provide to the Administrative Agent all information, documents and other
materials that it is obligated to furnish to the Administrative Agent pursuant to the Credit
Documents, including all notices, requests, financial statements, financial and other reports,
certificates and other information materials, but excluding any such communication that (i) relates
to a request for a new, or a conversion of an existing, Term Loan (including any election of an
interest rate or Interest Period relating thereto), (ii) relates to the payment of any principal or
other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice
of any Default or Event of Default or (iv) is required to be delivered to satisfy any condition
precedent to the effectiveness of any provision of this Agreement and/or any Term Loan (all such
non-excluded communications being referred to herein collectively as “Communications”), by
transmitting the Communications in an electronic/soft medium to oploanswebadmin@citigroup.com.

The Borrower further agrees that the Administrative Agent may make the Communications

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available to
the Lenders by posting the Communications on Intralinks or a substantially similar electronic
transmission system (the “Platform”). The Borrower acknowledges that the distribution of material
through an electronic medium is not necessarily secure and that there are confidentiality and other
risks associated with such distribution.

THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE “AGENT PARTIES” (AS DEFINED BELOW) DO NOT
WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND
EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY
KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE
COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS
AFFILIATES OR ANY OF THE RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR
REPRESENTATIVES OF THE ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES (COLLECTIVELY, THE “AGENT
PARTIES”) HAVE ANY LIABILITY TO THE BORROWER, ANY LENDER, OR ANY OTHER PERSON OR ENTITY FOR DAMAGES
OF ANY KIND, INCLUDING, WITHOUT LIMITATION, DIRECT OR INDIRECT, SPECIAL,
INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE)
ARISING OUT OF THE TRANSMISSION BY THE BORROWER, ANY OF THE AGENT PARTIES OR ANY OTHER PERSON OF
COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND
IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY
FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

The Administrative Agent agrees that the receipt of the Communications by the Administrative Agent
at its e-mail address set forth above shall constitute effective delivery of the Communications to
the Administrative Agent for purposes of the Credit Documents. Each of the Lenders agrees that
notice to it (as provided in the next sentence) specifying that the Communications have been posted
to the Platform shall constitute effective delivery of the Communications to such Lender for
purposes of the Credit Documents. Each of the Lenders agrees (i) to notify the Administrative
Agent in writing (including by electronic communication) from time to time of such Lender’s e-mail
address to which the foregoing notice may be sent by electronic transmission and (ii) that the
foregoing notice may be sent to such e-mail address.

Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give any
notice or other communication pursuant to any Credit Document in any other manner specified in such
Credit Document.

     Section 10.8. Counterparts. This Agreement may be executed in any number of
counterparts, and by the different parties on different counterpart signature pages, each of which

60

 

when executed shall be deemed an original, but all such counterparts taken together shall
constitute one and the same Agreement. Signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages are attached to the
same document. Delivery of an executed counterpart by facsimile or other electronic means shall be
effective as delivery of a manually executed counterpart of this Agreement.

     Section 10.9. Successors and Assigns. This Agreement shall be binding upon the
Borrower, each of the Lenders, the Administrative Agent and their respective successors and
assigns, and shall inure to the benefit of the Borrower, each of the Lenders, the Administrative
Agent, and their respective successors and assigns, including any subsequent holder of any Note;
provided, however, the Borrower may not assign any of its rights or obligations under this
Agreement or any other Credit Document without the written consent of all Lenders and the
Administrative Agent, and the Administrative Agent may not assign any of its respective rights or
obligations under this Agreement or any Credit Document except in accordance with Article 9 and no
Lender may assign any of its rights or obligations under this Agreement or any other Credit
Document except in accordance with Section 10.10. Nothing in this Agreement, express or implied,
shall be construed to confer on any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, and to the extent expressly contemplated hereby,
Controlling Affiliates of the Lenders, the Administrative Agent, the Other Agents, and the
Indemnified Parties as defined in Section
10.13) any legal or equitable right, remedy or claim under or by reason of this Agreement.
Any Lender may at any time pledge or assign all or any portion of its rights under this Agreement
and the Notes issued to it (i) to a Federal Reserve Bank to secure extensions of credit by such
Federal Reserve Bank to such Lender, or (ii) in the case of any Lender that is a fund comprised in
whole or in part of commercial loans, to a trustee for such fund in support of such Lender’s
obligations to such trustee; provided that no such pledge or assignment shall release any Lender
from any of its obligations hereunder or substitute any such Federal Reserve Bank or such trustee
for such Lender as a party hereto and the Borrower, the Administrative Agent and the other Lenders
shall continue to deal solely with such Lender in connection with the rights and obligations of
such Lender under this Agreement.

     Section 10.10. Sales and Transfers of Borrowing and Notes; Participations in Borrowings
and Notes.

     (a) Any Lender may, upon written notice to the Borrower and the Administrative Agent, at any
time sell to one or more commercial banking or other financial or lending institutions
(“Participants”) participating interests in any Commitment of such Lender hereunder, provided that
no Lender shall transfer, grant or assign any participation under which the Participant shall have
rights to vote upon or to consent to any matter to be decided by the Lenders or the Required
Lenders hereunder or under any other Credit Document or to approve any amendment to or waiver of
this Agreement or any other Credit Document except to the extent such amendment or waiver would (i)
increase the amount of such Lender’s Commitment and such increase would affect such Participant,
(ii) reduce the principal of, or interest on, any of such Lender’s Borrowings, or any fees or other
amounts payable to such Lender hereunder and such reduction would affect such Participant, (iii)
postpone any date fixed for any scheduled payment of principal of, or interest on, any of such
Lender’s Borrowings, or any fees or other amounts payable to such Lender hereunder and such
postponement would affect such

61

 

Participant, or (iv) release any collateral security for any
Obligation, except as otherwise specifically provided in any Credit Document. In the event of any
such sale by a Lender of participating interests to a Participant, such Lender’s obligations under
this Agreement to the other parties to this Agreement shall remain unchanged, such Lender shall
remain solely responsible for the performance thereof, such Lender shall remain the holder of any
such Note for all purposes under this Agreement, the Borrower and the Administrative Agent shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement and such Lender shall retain the sole right to enforce the
obligations of the Borrower under any Credit Document. The Borrower agrees that if amounts
outstanding under this Agreement and the Notes shall have been declared or shall have become due
and payable in accordance with Section 7.2 or 7.3 upon the occurrence of an Event of Default, each
Participant shall be deemed to have the right of setoff in respect of its participating interest in
amounts owing under this Agreement and any Note to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this Agreement or any Note,
provided that such right of setoff shall be subject to the obligation of such Participant to share
with the Lenders, and the Lenders agree to share with such Participant, as provided in Section
10.6. The Borrower also agrees that each Participant shall be entitled to the benefits of and have
the obligations under Sections 2.12, 3.3 and 8.3 with respect to its participation in the
Commitments and the Borrowings outstanding from time to time, provided that no Participant
shall be entitled to receive any greater amount pursuant to such Sections than the transferor
Lender would have been entitled to receive in respect of the amount of the participation
transferred if no participation had been transferred and provided, further, that Sections 8.3(c)
and 8.6 shall apply to the transferor Lender with respect to any claim by any Participant pursuant
to Section 2.12, 3.3 or 8.3 as fully as if such claim was made by such Lender. Anything herein to
the contrary notwithstanding, the Borrower shall not, at any time, be obligated to pay to any
Lender any sum in excess of the sum the Borrower would have been obligated to pay to such Lender
hereunder if such Lender had not sold any participation in its rights and obligations under this
Agreement or any other Credit Document.

     (b) Any Lender may at any time sell to (i) any of such Lender’s affiliates or to any other
Lender or any affiliate thereof that, in each case, is a commercial banking or other financial or
lending institution not subject to Regulation T of the Board of Governors of the Federal Reserve
System and, (ii) with the prior written consent (which shall not be unreasonably withheld or
delayed) of the Administrative Agent, and the Borrower, to one or more commercial banking or other
financial or lending institutions not subject to Regulation T of the Board of Governors of the
Federal Reserve System (any of (i) or (ii), a
“Purchasing Lender”), all or any part of its rights
and obligations under this Agreement and the other Credit Documents, pursuant to an Assignment
Agreement in the form attached as Exhibit 10.10, executed by such Purchasing Lender and
such transferor Lender (and, in the case of a Purchasing Lender which is not then a Lender or an
affiliate thereof, by the Borrower and the Administrative Agent) and delivered to the
Administrative Agent; provided that each such sale to a Purchasing Lender (other than an existing
Lender) shall be in the amount of $5,000,000 or more, or if in a lesser amount or if as a result of
such sale the sum of the unfunded Commitment of such Lender plus the aggregate principal amount of
such Lender’s Term Loans would be less than the amount of $5,000,000 (calculated as hereinafter set
forth), such sale shall be of all of such Lender’s rights and obligations under this Agreement and
all of the other Credit Documents payable to it to one

62

 

Purchasing Lender. Notwithstanding the
requirement of the Borrower’s consent set forth above, but subject to all of the other terms and
conditions of this Section 10.10(b), any Lender may sell to one or more commercial banking or other
financial or lending institutions not subject to Regulation T of the Board of Governors of the
Federal Reserve System, all or any part of their rights and obligations under this Agreement and
the other Credit Documents with only the consent of the Administrative Agent (which shall not be
unreasonably withheld or delayed) if an Event of Default shall have occurred and be continuing.
Upon such execution, delivery and acceptance, from and after the effective date of the transfer
determined pursuant to such Assignment Agreement, (x) the Purchasing Lender thereunder shall be a
party hereto and, to the extent provided in such Assignment Agreement, have the rights and
obligations of a Lender hereunder with a Commitment as set forth herein and (y) the transferor
Lender thereunder shall, to the extent provided in such Assignment Agreement, be released from its
obligations under this Agreement (and, in the case of an Assignment Agreement covering all or the
remaining portion of a transferor Lender’s rights and obligations under this Agreement, such
transferor Lender shall cease to be a party hereto). Such Assignment Agreement shall be deemed to
amend this Agreement to the extent, and only to the extent, necessary to reflect the addition of
such Purchasing Lender and the resulting adjustment of Commitments and Percentages arising from the
purchase by such Purchasing Lender of all or a portion of the rights and obligations of such
transferor Lender under this Agreement, the Notes and the other Credit Documents. On or prior
to the effective date of the transfer determined pursuant to such Assignment Agreement, the
Borrower, at its own expense, shall upon reasonable notice from the Administrative Agent execute
and deliver to the Administrative Agent in exchange for any surrendered Note, a new Note as
appropriate to the order of such Purchasing Lender in an amount equal to the Commitments assumed by
it pursuant to such Assignment Agreement, and, if the transferor Lender has retained a Commitment
or Borrowing hereunder, a new Note to the order of the transferor Lender in an amount equal to the
Commitments or Borrowings retained by it hereunder. Such new Notes shall be dated the Effective
Date and shall otherwise be in the form of the Notes replaced thereby. The Notes surrendered by
the transferor Lender shall be returned by the Administrative Agent to the Borrower marked
“cancelled.”

     (c) Upon its receipt of an Assignment Agreement executed by a transferor Lender and a
Purchasing Lender (and, in the case of a Purchasing Lender that is not then a Lender or an
affiliate thereof, by the Administrative Agent and, to the extent required by Section 10.10(b), by
the Borrower), together with payment by the transferor Lender to the Administrative Agent hereunder
of a registration and processing fee of $2,000 (unless (x) the Borrower is replacing such Lender
pursuant to the terms hereof, in which event such fee shall be paid by the Borrower, or (y) the
Purchasing Lender is an affiliate of the transferor Lender, in which event no such fee shall be
payable), the Administrative Agent shall (i) promptly accept such Assignment Agreement, and (ii) on
the effective date of the transfer determined pursuant thereto give notice of such acceptance and
recordation to the Lenders and the Borrower. The Borrower shall not be responsible for such
registration and processing fee or any costs or expenses incurred by any Lender, any Purchasing
Lender or the Administrative Agent in connection with such assignment except as provided above.

     (d) If, pursuant to this Section 10.10 any interest in this Agreement or any Term Loan or Note
is transferred to any transferee which is organized under the laws of any jurisdiction

63

 

other than
the United States of America or any State thereof, the transferor Lender shall cause such
transferee, concurrently with the effectiveness of such transfer, (i) to represent to the
transferor Lender (for the benefit of the transferor Lender, the Administrative Agent and the
Borrower) that under applicable law and treaties no taxes will be required to be withheld by the
Administrative Agent, the Borrower or the transferor Lender with respect to any payments to be made
to such transferee in respect of the Term Loans, (ii) to furnish to the transferor Lender (and, in
the case of any Purchasing Lender, the Administrative Agent and the Borrower) two duly completed
and signed copies of either U.S. Internal Revenue Service Form W-8BEN or U.S. Internal Revenue
Service Form W-8ECI or such successor forms as shall be adopted from time to time by the relevant
United States taxing authorities (wherein such transferee claims entitlement to complete exemption
from U.S. federal withholding tax on all interest payments hereunder), and (iii) to agree (for the
benefit of the transferor Lender, the Administrative Agent and the Borrower) to provide the
transferor Lender (and, in the case of any Purchasing Lender, the Administrative Agent and the
Borrower) new forms as contemplated by Section 3.3(b) upon the expiration or obsolescence of any
previously delivered form and comparable statements in accordance with applicable U.S. laws and
regulations and amendments duly executed and completed by such transferee, and to comply from time
to time with all applicable U.S. laws and regulations with regard to such withholding tax
exemption.

     (e) Notwithstanding any other provisions of this Section 10.10, no transfer or assignment of
the interests of any Lender hereunder or any grant of participations therein shall be permitted if
such transfer, assignment or grant would require the Borrower to file a registration statement with
the SEC or to qualify the Term Loans, the Notes or any other Obligations under the securities laws
of any jurisdiction.

     Section 10.11. Amendments, Waivers and Consents. Any provision of the Credit
Documents may be amended or waived if, but only if, such amendment or waiver is in writing and is
signed by (a) the Borrower, (b) the Required Lenders, and (c) if the rights or duties of the
Administrative Agent or the Other Agents are affected thereby, the Administrative Agent or the
Other Agents, as the case may be, provided that:

     (i) no amendment or waiver shall (A) increase the Aggregate Commitment Amount (except
as provided pursuant to Section 2.13) without the consent of all Lenders, (B) increase any
Commitment of any Lender without the consent of such Lender, (C) postpone or extend the
Facility Increase Expiration Date or the Maturity Date without the consent of all Lenders,
(D) reduce the amount of or postpone the date for any scheduled payment of any principal of
or interest (including, without limitation, any reduction in the rate of interest unless
such reduction is otherwise provided herein) on any Term Loan without the consent of all
Lenders, or (E) reduce the amount of or postpone the date for any schedule payment of any
fee or other Obligation payable hereunder, without the consent of each Lender owed any such
fee or other Obligation; and

     (ii) no amendment or waiver shall, unless signed by each Lender, change the provisions
of this Section 10.11, Section 3.2(a) or the definition of Required Lenders or the number of
Lenders required to take any action under any other provision of the Credit

64

 

Documents or any
provision providing for the pro rata nature of payments by or to Lenders.

     Section 10.12. Headings. Section headings used in this Agreement are for reference
only and shall not affect the construction of this Agreement.

     Section 10.13. Legal Fees, Other Costs and Indemnification. The Borrower, upon demand
by the Administrative Agent, agrees to pay the reasonable fees and disbursements of legal counsel
to the Administrative Agent in connection with the preparation and execution of the Credit
Documents (which shall be in an amount agreed in writing by the Borrower), and any amendment,
waiver or consent related thereto, whether or not the transactions contemplated therein are
consummated. The Borrower further agrees to indemnify each Lender, the Administrative Agent, the
Other Agents, and their respective directors, officers, employees and attorneys (collectively, the
“Indemnified Parties”), against all losses, claims, damages, penalties, judgments, liabilities and
expenses (including, without limitation, all reasonable attorneys’ fees and other reasonable
out-of-pocket expenses of litigation or preparation therefor, whether or not
such Indemnified Party is a party thereto) which any of them may pay or incur as a result of
(a) any action, suit or proceeding by any third party or Governmental Authority against such
Indemnified Party and relating to any Credit Document, the Term Loans, or the application or
proposed application by any of the Borrower of the proceeds of any Term Loan REGARDLESS OF WHETHER
SUCH CLAIMS OR ACTIONS ARE FOUNDED IN WHOLE OR IN PART UPON THE ALLEGED SIMPLE OR CONTRIBUTORY
NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES AND/OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS,
EMPLOYEES OR ATTORNEYS, (b) any investigation of any third party or any Governmental Authority
involving any Lender (as a lender hereunder), or the Administrative Agent or the Other Agents (in
such capacity hereunder) and related to any use made or proposed to be made by the Borrower of the
proceeds of any Term Loan or any transaction financed or to be financed in whole or in part,
directly or indirectly with the proceeds of any Term Loan, and (c) any investigation of any third
party or any Governmental Authority, litigation or proceeding involving any Lender (as a lender
hereunder) or the Administrative Agent or the Other Agents (in such capacity hereunder) and related
to any environmental cleanup, audit, compliance or other matter relating to any Environmental Law
or the presence of any Hazardous Material (including, without limitation, any losses, liabilities,
damages, injuries, costs, expenses or claims asserted or arising under any Environmental Law) with
respect to the Borrower, regardless of whether caused by, or within the control of, the Borrower;
provided, however, that the Borrower shall not be obligated to indemnify any Indemnified Party for
any of the foregoing arising out of such Indemnified Party’s gross negligence, bad faith, or
willful misconduct, as determined pursuant to a judgment of a court of competent jurisdiction or as
expressly agreed in writing by such Indemnified Party. The Borrower, upon demand by the
Administrative Agent, the Other Agents or any Lender at any time, shall reimburse such Agent or
such Lender for any reasonable legal or other expenses incurred in connection with investigating or
defending against any of the foregoing, except if the same is excluded from indemnification
pursuant to the provisions of the preceding sentence. Each Indemnified Party agrees to contest any
indemnified claim if requested by the Borrower, in a manner reasonably directed by the Borrower,
with counsel selected by the Indemnified Party and approved by the Borrower, which approval shall
not be unreasonably withheld or delayed. Any Indemnified

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Party that proposes or intends to settle
or compromise any such indemnified claim shall give the Borrower written notice of the terms of
such settlement or compromise reasonably in advance of settling or compromising such claim or
proceeding and shall obtain the Borrower’s prior written consent thereto, which consent shall not
be unreasonably withheld or delayed; provided that the Indemnified Party shall not be restricted
from settling or compromising any such claim if the Indemnified Party waives its right to indemnity
from the Borrower in respect of such claim and such settlement or compromise does not materially
increase the Borrower’s liability pursuant to this Section 10.13 to any related party of such
Indemnified Party.

     Section 10.14. Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

     (A) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS, AND THE RIGHTS AND DUTIES OF THE PARTIES
THERETO, SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.

     (B) TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HERETO AGREE THAT ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY
OTHER CREDIT DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR
WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT, THE OTHER AGENTS, THE LENDERS, OR THE BORROWER MAY
BE BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF
MANHATTAN OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS
TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE AND
IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION.
THE BORROWER HEREBY IRREVOCABLY DESIGNATES CT CORPORATION SYSTEM, 111 8TH AVENUE, NEW YORK, NEW
YORK 10011, AS THE DESIGNEE, APPOINTEE AND AGENT OF THE BORROWER TO RECEIVE, FOR AND ON BEHALF OF
THE BORROWER, SERVICE OF PROCESS IN SUCH JURISDICTION IN ANY LEGAL ACTION OR PROCEEDING WITH
RESPECT HERETO. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE BORROWER FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS, BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL
SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY HAVE OR
HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED
TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS

66

 

BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE
EXTENT THAT THE BORROWER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT
OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OF NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE BORROWER
HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, SUCH IMMUNITY IN
RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS.

     (C) TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO WAIVES ANY RIGHT TO A
TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT OR
UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR
AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING
FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH
ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

     (D) EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER
PROVIDED FOR NOTICES IN SECTION 10.7. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY
TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

     Section 10.15. Confidentiality. Each of the Administrative Agent, the Other Agents
and the Lenders agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (i) to their respective affiliates and to prospective
Purchasing Lenders and Participants and potential counterparties to hedge agreements or any swap or
derivative transaction relating to the Borrower and their respective directors, officers, employees
and agents, including accountants, legal counsel and other advisors who have reason to use such
Information in connection with the evaluation of the transactions contemplated by this Agreement
(subject to similar confidentiality provisions as provided herein) solely for purposes of
evaluating such Information, (ii) to the extent requested by any regulatory authority, (iii) to the
extent required by applicable law or regulation or by any subpoena or similar legal process, (iv)
in connection with the exercise of any remedies hereunder or any proceedings relating to this
Agreement or the other Credit Documents, (v) with the consent of the Borrower, (vi) to any rating
agency when required by it, provided that, prior to any disclosure, such rating agency shall
undertake in writing to preserve the confidentiality of any confidential information relating to
the Borrower received by it from any Lender, Issuing Bank, the Administrative Agent or any Other
Agents, or (vii) to the extent such Information (x) becomes publicly available other than as a
result of a breach of this Section 10.15, or (y) becomes available on a non-confidential basis from
a source other than the Borrower or its affiliates, or the Lenders or their respective affiliates,
excluding any Information from such source which, to the actual knowledge of the Administrative
Agent, the Other Agent or the Lender receiving such Information, has been

67

 

disclosed by such source
in violation of a duty of confidentiality to the Borrower. For purposes hereof, “Information”
means all information received by the Lenders from the Borrower relating to the Borrower or its
business, other than any such information that is available to the Lenders on a non-confidential
basis prior to disclosure by the Borrower, excluding any Information from a source which, to the
actual knowledge of the Administrative Agent, the Other Agent or the Lender receiving such
Information, has been disclosed by such source in violation of a duty of confidentiality to the
Borrower. The Lenders shall be considered to have complied with their respective obligations if
they have exercised the same degree of care to maintain the confidentiality of such Information as
they would accord their own confidential information. Notwithstanding anything herein to the
contrary, any party to this Agreement (and any employee, representative, or other agent of any
party to this Agreement) may disclose to any and all persons, without limitation of any kind, the
tax treatment and tax structure of the transactions contemplated by this Agreement and all
materials of any kind (including opinions or other tax analyses) that are provided to it relating
to
such tax treatment and tax structure. However, any such information relating to the tax
treatment or tax structure is required to be kept confidential to the extent necessary to comply
with any applicable federal or state securities laws.

     Section 10.16. [Intentionally Omitted].

     Section 10.17. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     Section 10.18. Change in Accounting Principles, Fiscal Year or Tax Laws. If (i) any
change in accounting principles from those used in the preparation of the financial statements of
the Borrower referred to in Section 5.8 is hereafter occasioned by the promulgation of rules,
regulations, pronouncements and opinions by or required by the Financial Accounting Standards Board
or the American Institute of Certified Public Accounts (or successors thereto or agencies with
similar functions), and such change materially affects the calculation of any component of any
financial covenant, standard or term found in this Agreement, or (ii) there is a material change in
federal, state or foreign tax laws which materially affects any of the Borrower and its
Subsidiaries’ ability to comply with the financial covenants, standards or terms found in this
Agreement, the Borrower and the Lenders agree to enter into negotiations in order to amend such
provisions (with the agreement of the Required Lenders or, if required by Section 10.11, all of the
Lenders) so as to equitably reflect such changes with the desired result that the criteria for
evaluating any of the Borrower’s and its Subsidiaries’ financial condition shall be the same after
such changes as if such changes had not been made. Unless and until such provisions have been so
amended, the provisions of this Agreement shall govern.

     Section 10.19. Final Agreement. The Credit Documents constitute the entire
understanding among the Borrower, the Lenders and the Administrative Agent and supersede all
earlier or contemporaneous agreements, whether written or oral, concerning the subject matter of
the Credit Documents. THIS WRITTEN AGREEMENT TOGETHER WITH THE OTHER CREDIT DOCUMENTS REPRESENTS
THE FINAL AGREEMENT

68

 

BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

     Section 10.20. Officer’s Certificates. It is not intended that any certificate of any
officer or director of the Borrower delivered to the Administrative Agent or any Lender pursuant to
this Agreement shall give rise to any personal liability on the part of such officer or director.

     Section 10.21. Effect of Inclusion of Exceptions. It is not intended that the
specification of any exception to any covenant herein shall imply that the excepted matter would,
but for such exception, be prohibited or required.

     Section 10.22. Patriot Act Notice. Each Lender and the Administrative Agent (for
itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the
requirements of the Patriot Act, it is required (if subject to the Patriot Act) 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 such Lender or the Administrative
Agent, as applicable, to identify the Borrower in accordance with the Patriot Act. The Borrower
shall provide, to the extent commercially reasonable, such information and take such actions as are
reasonably requested by the Administrative Agent or any Lenders in order to assist the
Administrative Agent and the Lenders in maintaining compliance with the Patriot Act.

     Section 10.23. No Fiduciary Duty. Each of the Administrative Agent, each Other Agent,
each Lender and their respective affiliates (collectively, solely for purposes of this paragraph,
the “Lender Parties”), may have economic interests that conflict with those of the Borrower. The
Borrower agrees that nothing in the Credit Documents or otherwise will be deemed to create an
advisory, fiduciary or agency relationship or fiduciary or other implied duty between any of the
Lender Parties and the Borrower, its stockholders or its affiliates. The Borrower acknowledges and
agrees that (i) the transactions contemplated by the Credit Documents are arm’s-length commercial
transactions between the Lender Parties, on the one hand, and the Borrower, on the other, (ii) in
connection therewith and with the process leading to such transaction, each of the Lender Parties
is acting solely as a principal and not the agent or fiduciary of the Borrower, its management,
stockholders, creditors or any other person, (iii) no Lender Party 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 Party 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 Credit Documents and
(iv) 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 Party 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.

69

 

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

	 	 	 	 	 
	 	BORROWER:

TRANSOCEAN INC.,

As Borrower

 	 
	 	By:  	/s/
Steve McFadin
 	 
	 	 	Name:  	Steve McFadin 	 
	 	 	Title:  	Assistant Treasurer 	 
	 

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	CITIBANK, N.A.,

As Administrative Agent and a Lender

 	 
	 	By:  	/s/
Robert Malleck
 	 
	 	 	Name:  	Robert Malleck 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$175,000,000
	 
	 	 
	PERCENTAGE:
	 	9.09090909%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	CALYON NEW YORK BRANCH,

As Co-Syndication Agent and a Lender

 	 
	 	By:  	/s/ Page Dillehunt
 	 
	 	 	Name:  	Page Dillehunt 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                    /s/ Michael D. Willis
 	 
	 	 	Name:  	Michael D. Willis 	 
	 	 	Title:  	Director 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$175,000,000
	 
	 	 
	PERCENTAGE:
	 	9.09090909%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

As Co-Syndication Agent and a Lender

 	 
	 	By:  	/s/ Helen A. Carr
 	 
	 	 	Name:  	Helen A. Carr 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$175,000,000
	 
	 	 
	PERCENTAGE:
	 	9.09090909%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

As Co-Documentation Agent and a Lender

 	 
	 	By:  	/s/ Joan Stanton
 	 
	 	 	Name:  	Joan Stanton 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$165,000,000
	 
	PERCENTAGE:
	 	8.57142857%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	FORTIS BANK SA/NV, NEW YORK BRANCH,

As Co-Documentation Agent and a Lender

 	 
	 	By:  	/s/ Alison B. Barber
 	 
	 	 	Name:  	ALISON B. BARBER 	 
	 	 	Title:  	VICE PRESIDENT 	 
	 
	 	 	 
	 	By:  	     /s/ Joseph Maxwell
 	 
	 	 	Name:  	JOSEPH MAXWELL 	 
	 	 	Title:  	SENIOR VICE PRESIDENT 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$165,000,000
	 
	 	 
	PERCENTAGE:
	 	8.57142857%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BNP PARIBAS,

As a Lender

 	 
	 	By:  	/s/ Gregory George
 	 
	 	 	Name:  	Gregory George 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Greg Smothers
 	 
	 	 	Name:  	Greg Smothers 	 
	 	 	Title:  	Director 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$125,000,000
	 
	 	 
	PERCENTAGE:
	 	6.49350649%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	DnB NOR BANK ASA,

As a Lender

 	 
	 	By:  	/s/ Nikolai A. Nachamkin
 	 
	 	 	Name:  	NIKOLAI A. NACHAMKIN 	 
	 	 	Title:  	SENIOR VICE PRESIDENT 	 
	 
	 	 	 
	 	By:  	     /s/ Cathleen Buckley
 	 
	 	 	Name:  	CATHLEEN BUCKLEY 	 
	 	 	Title:  	VICE PRESIDENT 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$125,000,000
	 
	 	 
	PERCENTAGE:
	 	6.49350649%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND PLC,

As a Lender

 	 
	 	By:  	/s/ David Slye
 	 
	 	 	Name:  	David Slye 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$125,000,000
	 
	 	 
	PERCENTAGE:
	 	6.49350649%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK,
N.A.,

As a Lender

 	 
	 	By:  	/s/ Christina Faith
 	 
	 	 	Name:  	Christina Faith 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$125,000,000
	 
	 	 
	PERCENTAGE:
	 	6.49350649%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

As a Lender

 	 
	 	By:  	/s/
Jay Salitza
 	 
	 	 	Name:  	Jay Salitza	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$75,000,000
	 
	 	 
	PERCENTAGE:
	 	3.89610390%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	EXPORT DEVELOPMENT CANADA,

As a Lender

 	 
	 	By:  	/s/ Margaret Michalski
 	 
	 	 	Name:  	Margaret Michalski 	 
	 	 	Title:  	Senior Associate 	 
	 
	 	 	 
	 	By:  	     /s/ Stephano Carrera
 	 
	 	 	Name:  	Stephano Carrera 	 
	 	 	Title:  	Financing Manager 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$75,000,000
	 
	 	 
	PERCENTAGE:
	 	3.89610390%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	GOLDMAN SACHS BANK USA,

As a Lender

 	 
	 	By:  	/s/ Mark Walton
 	 
	 	 	Name:  	Mark Walton 	 
	 	 	Title:  	Authorized Signatory 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$75,000,000
	 
	 	 
	PERCENTAGE:
	 	3.89610390%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	HSBC BANK USA, NATIONAL
ASSOCIATION,

As a Lender

 	 
	 	By:  	/s/ Richard J. Ward
 	 
	 	 	Name:  	Richard J. Ward        #12473 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$75,000,000
	 
	 	 
	PERCENTAGE:
	 	3.89610390%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	LEHMAN BROTHERS COMMERCIAL BANK,

As a Lender

 	 
	 	By:  	/s/ Brian McNany
 	 
	 	 	Name:  	Brian McNany 	 
	 	 	Title:  	Authorized Signatory 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$75,000,000
	 
	 	 
	PERCENTAGE:
	 	3.89610390%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	STANDARD CHARTERED BANK,

As a Lender

 	 
	 	By:  	/s/ Benjamin Velazquez
 	 
	 	 	Name:  	BENJAMIN VELAZQUEZ     A2657 	 
	 	 	Title:  	DIRECTOR
 SYNDICATIONS, AMERICAS 	 
	 
	 	 	 
	 	By:  	     /s/ Robert K. Reddington
 	 
	 	 	Name:  	ROBERT K. REDDINGTON 	 
	 	 	Title:  	AVP/CREDIT DOCUMENTATION

CREDIT RISK CONTROL

STANDARD CHARTERED BANK N.Y. 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$75,000,000
	 
	 	 
	PERCENTAGE:
	 	3.89610390%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	UBS LOAN FINANCE LLC,

As a Lender

 	 
	 	By:  	/s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director 	 
	 
	 	 	 
	 	By:  	     /s/ Mary E. Evans
 	 
	 	 	Name:  	Mary E. Evans 	 
	 	 	Title:  	Associate Director 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$75,000,000
	 
	 	 
	PERCENTAGE:
	 	3.89610390%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK,

As a Lender

 	 
	 	By:  	/s/ Hussam S. Alsahlani
 	 
	 	 	Name:  	Hussam S. Alsahlani 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$25,000,000
	 
	 	 
	PERCENTAGE:
	 	1.29870130%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	ARAB BANKING CORP.,

As a Lender

 	 
	 	By:  	/s/ Tony G. Berbari
 	 
	 	 	Name:  	Tony G. Berbari 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	 	 
	 	By:  	     /s/ Barbara C. Sanderson
 	 
	 	 	Name:  	Barbara C. Sanderson 	 
	 	 	Title:  	Assistant General Manager 	 
	 

	 	 	 
	COMMITMENT AMOUNT:
	 	$20,000,000
	 
	 	 
	PERCENTAGE:
	 	1.03896103%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]exv10w1

 

Exhibit 10.1

Blumenshine March 2008

NEWFIELD EXPLORATION COMPANY

RESTRICTED STOCK AGREEMENT

     THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) is made as of March 15 , 2008 (the
“Date of Grant”) and is by and between Newfield Exploration Company (the “Company”) and W. Mark
Blumenshine (“Employee”).

     1.   GRANT.

     (a)   Restricted Shares.  Pursuant to the Newfield Exploration Company 2004 Omnibus Stock Plan
(as amended, the “Plan”), 3,000 shares of the Company’s common stock, par value $.01, will be
issued in Employee’s name subject to the Forfeiture Restrictions described in Section 2(a) below
(the “Restricted Shares”).

     (b)   Plan Incorporated.  Employee acknowledges receipt of a copy of the Plan and agrees that
the issuance of the Restricted Shares pursuant to this Agreement shall be subject to all of the
terms and provisions of the Plan (including any future amendments thereof), which terms and
provisions are incorporated herein for all purposes. Capitalized terms used but not defined in
this Agreement shall have the meanings ascribed to such terms in the Plan.

     2.   RESTRICTIONS.  Employee hereby accepts the Restricted Shares when issued and agrees
with respect thereto as follows:

     (a)   Forfeiture Restrictions.  Except as otherwise provided in Paragraphs V and IX of the Plan,
(i) the Restricted Shares shall not be sold, assigned, pledged, exchanged, hypothecated or
otherwise transferred or disposed of to the extent then subject to Forfeiture Restrictions and (ii)
if, prior to the five year anniversary of the Date of Grant, Employee’s employment with the Company
and its subsidiaries is terminated for any reason (including as described in the last sentence of
Paragraph XI(b) of the Plan) other than the death or permanent and total disability (within the
meaning of section 22(e)(3) of the Code) (“Disability”) of Employee, Employee shall, for no
consideration, forfeit to the Company all Restricted Shares to the extent then subject to
Forfeiture Restrictions. The prohibition against transfer and the obligation to forfeit and
surrender shares to the Company as provided in this Section 2(a) are herein referred to as
“Forfeiture Restrictions.” Forfeiture Restrictions shall be binding upon and enforceable against
any transferee of Restricted Shares.

     (b)   Lapse of Forfeiture Restrictions—Death or Disability.  If not previously forfeited,
Forfeiture Restrictions with respect to the Restricted Securities shall lapse upon the death or
Disability of Employee.

     (c)   Lapse of Forfeiture Restrictions—Continuous Employment.  If not previously forfeited,
Forfeiture Restrictions with respect to the Restricted Securities shall lapse on the indicated
anniversary of the Date of Grant in accordance with the following schedule:

 

 

	 	 	 	 	 
	 	 	Percentage of Restricted
	 	 	Shares Subject to Forfeiture
	 	 	Restrictions as to which
	Date	 	Forfeiture Restrictions Lapse
	 
	 	 
	Two Year Anniversary of the Date of Grant
	 	 	331/3	%
	Three Year Anniversary of the Date of Grant
	 	 	50	%
	Four Year Anniversary of the Date of Grant
	 	 	100	%

     (d)   Certificates.  A certificate evidencing the Restricted Shares will be issued by the
Company in Employee’s name, pursuant to which Employee shall have voting rights and receive
dividends. The certificate may bear a legend reciting or incorporating Forfeiture Restrictions and
any other legends the Company believes are appropriate, and the Company may cause the certificate
to be delivered upon issuance to the Secretary of the Company (or such other person as may be
designated by the Committee) as a depositary for safekeeping until Forfeiture Restrictions lapse or
forfeiture occurs pursuant to the terms of the Plan and this Agreement. At the Company’s request,
Employee shall execute and deliver a stock power, in blank, with respect to the Restricted Shares,
and the Company may exercise such stock power in the event of forfeiture. Upon the lapse of
Forfeiture Restrictions without forfeiture, the Company will cause a new certificate or
certificates to be issued without legend in the name of Employee.

     3.   COMMUNITY INTEREST OF SPOUSE.  The community interest, if any, of any spouse of
Employee in any of the Restricted Shares shall be subject to all of the terms, conditions and
restrictions of this Agreement and the Plan, and shall be forfeited and surrendered to the Company
upon the occurrence of any of the events requiring Employee’s interest in such Restricted Shares to
be so forfeited and surrendered pursuant to this Agreement.

     4.   TAX ELECTION; TAX WITHHOLDING.  If Employee makes the election authorized by
section 83(b) of the Internal Revenue Code of 1986, as amended, Employee shall deliver to the
Company (a) a copy of the statement filed by Employee to make such election and (b) the amount of
cash required for the Company to meet its withholding obligations under applicable laws as a result
of such election. If Employee does not deliver such amount of cash to the Company, the Company is
authorized to withhold any shortfall from any remuneration otherwise payable to Employee. Upon the
lapse of Forfeiture Restrictions with respect to Restricted Shares, the Company shall meet its
withholding obligations, if any, under applicable laws as a result of such lapse by Employee
surrendering to the Company that number of such Restricted Shares necessary to satisfy such
obligation (with such shares being valued at their Fair Market Value).

     5.   BINDING EFFECT.  This Agreement shall be binding upon and inure to the benefit of
any successors to the Company and all persons lawfully claiming under Employee.

2

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an authorized
officer and Employee has executed this Agreement, all as of the date first above written.

	 	 	 	 	 
	 	NEWFIELD EXPLORATION COMPANY

 	 
	 
	 	By:  	 /s/
David A. Trice	 
	 	 	David A. Trice 	 
	 	 	Chief Executive Officer 	 
	 
	 
	 	 /s/
W. Mark Blumenshine	 
	 	W. Mark Blumenshine

 	 
	 	 	 
	 	 	 
	 	 	 
	 

3

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