Document:

exv10w1

Exhibit 10.1

EXECUTION VERSION

THE GREENBRIER COMPANIES, INC.

(an Oregon corporation)

3.50% Convertible Senior Notes Due 2018

PURCHASE AGREEMENT

March 30, 2011

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

One Bryant Park

New York, New York 10036

GOLDMAN, SACHS & CO.

200 West Street

New York, New York 10282

Ladies and Gentlemen:

     Introductory. The Greenbrier Companies, Inc., an Oregon corporation (the “Company”),
proposes to issue and sell to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill
Lynch”) and Goldman, Sachs & Co. (“Goldman Sachs” and, together with Merrill Lynch, collectively
the “Initial Purchasers”), acting severally and not jointly, the respective amounts set forth in
such Schedule A of $215,000,000 aggregate principal amount of the Company’s 3.50%
Convertible Senior Notes due 2018 (the “Firm Notes”). The Company also proposes to issue and
sell to the Initial Purchasers not more than an additional $15,000,000 principal amount of its
3.50% Convertible Senior Notes due 2018 (the “Additional Notes”) if an to the extent the Initial
Purchasers determine to exercise their option to purchase such Additional Notes. The Firm Notes
and the Additional Notes are hereinafter collectively referred to as the “Notes”.

     The Notes will be issued pursuant to an indenture, to be dated as of April 5, 2011 (the
“Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”) .
The Notes will be convertible into shares common stock, without par value, of the Company (the
“Common Stock”) in accordance with the terms of the Notes and the Indenture. The Notes will be
issued only in book-entry form in the name of Cede & Co., as nominee of The Depository Trust
Company (the “Depositary”) pursuant to a letter of representations, to be dated on or before the
Closing Date (as defined in Section 2 hereof) (the “DTC Agreement”), among the Company, the Trustee
and the Depositary.

     The Notes and the shares of Common Stock issuable upon conversion thereof will be offered
without being registered under the Securities Act of 1933, as amended (the “Securities Act”),
to qualified institutional buyers in compliance with the exemptions from registration provided
by Rule 144A under the Securities Act (“Rule 144A”).

 

 

     The net proceeds from the issuance and sale of the Notes, together with cash on hand, will
be used by the Company to fund the consummation of the Company’s offer to purchase for cash and
related consent solicitation (the “Tender Offer”) any and all of its outstanding 8.375% Senior
Notes dues 2015 (the “2015 Notes”), and the redemption (the “Redemption”) of any 2015 Notes not
tendered in the Tender Offer. The issuance and sale of the Notes, the Tender Offer, the
Redemption and the payment of transaction expenses, are referred to herein collectively, as the
“Transactions.”

     This Agreement, the DTC Agreement, the Notes and the Indenture are referred to herein as
the “Transaction Documents.”

     The Company understands that the Initial Purchasers propose to make an offering of the Notes
on the terms and in the manner set forth herein and in the Pricing Disclosure Package (as defined
below) and agrees that the Initial Purchasers may resell, subject to the conditions set forth
herein, all or a portion of the Notes to purchasers (the “Subsequent Purchasers”) on the terms set
forth in the Pricing Disclosure Package (the first time when sales of the Notes are made is
referred to as the “Time of Sale”). The Notes are to be offered and sold to or through the Initial
Purchasers without being registered with the Securities and Exchange Commission (the “Commission”)
under the Securities Act, in reliance upon exemptions therefrom. Pursuant to the terms of the Notes
and the Indenture, investors who acquire Notes shall be deemed to have agreed that Notes may only
be resold or otherwise transferred, after the date hereof, if such Notes are registered for sale
under the Securities Act or if an exemption from the registration requirements of the Securities
Act is available (including the exemptions afforded by Rule 144A).

     The Company has prepared and delivered to each Initial Purchaser copies of a Preliminary
Offering Memorandum, dated March 30, 2011 (the “Preliminary Offering Memorandum”), and has
prepared and delivered to each Initial Purchaser copies of a Pricing Supplement, dated March 30,
2011 (the “Pricing Supplement”), setting forth information relating to the Company and describing
the terms of the Notes, each for use by such Initial Purchaser in connection with its solicitation
of offers to purchase the Notes. The Preliminary Offering Memorandum and the Pricing Supplement
are herein referred to as the “Pricing Disclosure Package.” Promptly after this Agreement is
executed and delivered, the Company will prepare and deliver to each Initial Purchaser a final
offering memorandum dated the date hereof (the “Final Offering Memorandum”).

     All references herein to the terms “Pricing Disclosure Package” and “Final Offering
Memorandum” shall be deemed to mean and include all information filed under the Securities
Exchange Act of 1934 (as amended, the “Exchange Act,” which term, as used herein, includes the
rules and regulations of the Commission promulgated thereunder) prior to the Time of Sale and
incorporated by reference in the Pricing Disclosure Package (including the Preliminary Offering
Memorandum) or the Final Offering Memorandum (as the case may be), and all references herein to
the terms “amend,” “amendment” or “supplement” with respect to the Final Offering Memorandum
shall be deemed to mean and include all information filed under the Exchange Act after the Time
of Sale and incorporated by reference in the Final Offering Memorandum.

     The Company hereby confirms its agreements with the Initial Purchasers as follows:

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     SECTION 1. Representations and Warranties. The Company hereby represents, warrants and
covenants to each Initial Purchaser that, as of the date hereof and as of the Closing Date
(references in this Section 1 to the “Offering Memorandum” are to (x) the Pricing Disclosure
Package in the case of representations and warranties made as of the date hereof and (y) the Final
Offering Memorandum in the case of representations and warranties made as of the Closing Date):

     (a) No Registration Required. Subject to compliance by the Initial
Purchasers with the representations and warranties set forth in Section 2
hereof and with the procedures set forth in Section 7 hereof, it is not
necessary in connection with the offer, sale and delivery of the Notes to
the Initial Purchasers and to each Subsequent Purchaser in the manner
contemplated by this Agreement and the Offering Memorandum to register the
Notes under the Securities Act or to qualify the Indenture under the Trust
Indenture Act of 1939 (the “Trust Indenture Act,” which term, as used
herein, includes the rules and regulations of the Commission promulgated
thereunder).

     (b) No Integration of Offerings or General Solicitation. None of the
Company, its affiliates (as such term is defined in Rule 501 under the
Securities Act) (each, an “Affiliate”), or any person acting on its or any
of their behalf (other than the Initial Purchasers, as to whom the Company
makes no representation or warranty) has, directly or indirectly, solicited
any offer to buy or offered to sell, or will, directly or indirectly,
solicit any offer to buy or offer to sell, in the United States or to any
United States citizen or resident, any security which is or would be
integrated with the sale of the Notes in a manner that would require the
Notes to be registered under the Securities Act. None of the Company, its
Affiliates, or any person acting on its or any of their behalf (other than
the Initial Purchasers, as to whom the Company makes no representation or
warranty) has engaged or will engage, in connection with the offering of
the Notes, in any form of general solicitation or general advertising
within the meaning of Rule 502 under the Securities Act.

     (c) Eligibility for Resale under Rule 144A. The Notes are eligible for
resale pursuant to Rule 144A and will not be, at the Closing Date, of the
same class as securities listed on a national securities exchange
registered under Section 6 of the Exchange Act or quoted in a U.S.
automated interdealer quotation system.

     (d) The Pricing Disclosure Package and Offering Memorandum. The
Pricing Disclosure Package, as of the Time of Sale, does not, and the Final
Offering Memorandum, as of its date or (as amended or supplemented in
accordance with Section 3(a), as applicable) as of the Closing Date, will
not, contain or represent an untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not
misleading; provided that this representation, warranty and
agreement shall not apply to statements in or omissions from the Pricing
Disclosure Package, the Final Offering Memorandum or any amendment or
supplement thereto made in reliance upon and in conformity with information
furnished to the Company in writing by any Initial Purchaser expressly for
use in the Pricing Disclosure Package, the Final Offering Memorandum or
amendment or supplement thereto, as the case may be. The Pricing Disclosure

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Package contains, and the Final Offering Memorandum will contain, all the information specified
in, and meeting the requirements of, Rule 144A. The Company has not distributed and will not
distribute, prior to the later of the Closing Date and the completion of the Initial Purchasers’
distribution of the Notes, any offering material in connection with the offering and sale of the
Notes other than the Pricing Disclosure Package and the Final Offering Memorandum.

     (e) Company Additional Written Communications. The Company has not prepared, made, used,
authorized, approved or distributed and will not prepare, make, use, authorize, approve or
distribute any written communication that constitutes an offer to sell or solicitation of an offer
to buy the Notes other than (i) the Pricing Disclosure Package, (ii) the Final Offering Memorandum
and (iii) any electronic road show or other written communications, in each case used in accordance
with Section 3(a). Each such communication by the Company or its agents and representatives
pursuant to clause (iii) of the preceding sentence (each, a “Company Additional Written
Communication”), when taken together with the Pricing Disclosure Package, did not as of the Time of
Sale, and at the Closing Date will not, contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that this
representation, warranty and agreement shall not apply to statements in or omissions from each
such Company Additional Written Communication made in reliance upon and in conformity with
information furnished to the Company in writing by any Initial Purchaser expressly for use in any
Company Additional Written Communication.

     (f) Incorporated Documents. The documents incorporated or deemed to be incorporated by
reference in the Offering Memorandum at the time they were or hereafter are filed with the
Commission (collectively, the “Incorporated Documents”) complied and will comply in all material
respects with the requirements of the Exchange Act. Each such Incorporated Document, when taken
together with the Pricing Disclosure Package, did not as of the Time of Sale, and at the Closing
Date will not, contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading.

     (g) No Material Adverse Change in Business. Except as otherwise disclosed in the Offering
Memorandum, since the respective dates as of which information is given in the Offering Memorandum
(exclusive of any amendment or supplement thereto): (i) there has been no material adverse change
in the business, properties, financial condition, results of operation or prospects of the
Company and its subsidiaries considered as one enterprise, whether or not arising in the ordinary
course of business (a “Material Adverse Effect”); (ii) there have been no transactions entered
into by the Company or any of its subsidiaries, other than those in the ordinary course of
business, which are material with respect to the Company and its subsidiaries considered as one
enterprise; and (iii) there has been no dividend or distribution of any kind declared, paid or
made by the Company on any class of its capital stock.

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     (h) Independent Accountants. The accountants who certified the financial statements and
supporting schedules included in the Offering Memorandum are independent registered public
accountants as required by the Securities Act, the Exchange Act and the Public Company Accounting
Oversight Board.

     (i) Financial Statements; Non-GAAP Financial Measures. The financial statements included or
incorporated by reference in the Offering Memorandum, together with the related schedules and
notes, present fairly, in all material respects, the financial position of the Company and its
consolidated subsidiaries at the dates indicated and the statement of operations, stockholders’
equity and cash flows of the Company and its consolidated subsidiaries for the periods specified;
said financial statements have been prepared in conformity with U.S. generally accepted accounting
principles (“GAAP”) applied on a consistent basis throughout the periods involved, except as may
be expressly stated in the related notes thereto. The supporting schedules, if any, present
fairly, in all material respects, in accordance with GAAP the information required to be stated
therein. The selected financial data and the summary financial information included in the
Offering Memorandum present fairly, in all material respects, the information shown therein and
have been compiled on a basis consistent with that of the audited financial statements included
therein. All disclosures contained in the Offering Memorandum, or incorporated by reference
therein, regarding “non-GAAP financial measures” (as such term is defined by the rules and
regulations of the Commission) comply in all material respects with Regulation G of the Exchange
Act and Item 10 of Regulation S-K of the Securities Act, to the extent applicable.

     (j) Good Standing of the Company. The Company has been duly organized and is validly
existing as a corporation under the laws of the State of Oregon and has corporate power and
authority to own, lease and operate its properties and to conduct its business as described in the
Offering Memorandum and to enter into and perform its obligations under this Agreement; and the
Company is duly qualified as a foreign corporation to transact business and is in good standing
in each other jurisdiction in which such qualification is required, whether by reason of the
ownership or leasing of property or the conduct of business, except where the failure so to
qualify or to be in good standing would not result in a Material Adverse Effect.

     (k) Good Standing of Subsidiaries. Each subsidiary of the Company listed on Exhibit 21.1 to
the Company’s Form 10-K filed for the fiscal year ended August 31, 2010 has been duly organized or
formed and is validly existing, and with respect to subsidiaries organized or formed in Delaware or
Washington, in good standing under the laws of the jurisdiction of its incorporation or
organization, has corporate or similar power and authority to own, lease and operate its properties
and to conduct its business as described in the Offering Memorandum and is duly qualified to
transact business and is in good standing in each jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or the conduct of business,
except where the failure to so qualify or to be in good standing would not result in a Material
Adverse Effect. Except as otherwise disclosed in the Offering Memorandum, all of the issued and
outstanding capital stock or other equity or ownership interest of each subsidiary listed on
Exhibit 21.1 to the Company’s Form 10-K filed for the fiscal year ended August 31, 2010

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has been duly authorized and validly issued, is fully paid and non-assessable and is owned by
the Company, directly or through subsidiaries in each case free and clear of any security
interest, mortgage, pledge, lien, encumbrance, claim or equity except as described in the
Offering Memorandum. None of the outstanding shares of capital stock or other equity or
ownership interest of any subsidiary listed on Exhibit 21.1 to the Company’s Form 10-K for the
fiscal year ended August 31, 2010 was issued in violation of the preemptive or similar rights
of any securityholder or other economic owner of such subsidiary. The Company has no material
subsidiaries other than the subsidiaries listed on Exhibit 21.1 to the Company’s Form 10-K
filed for the fiscal year ended August 31, 2010, and the only subsidiaries that constitute a
“significant subsidiary,” as defined in Rule 1-02 of Regulation S-X, are the subsidiaries
listed on Exhibit A hereto.

     (l) Capitalization. The authorized, issued and outstanding shares of capital stock of the
Company are as set forth in the Offering Memorandum in the column entitled “Actual” under the
caption “Capitalization” (except for subsequent issuances, if any, pursuant to this Agreement,
pursuant to reservations, agreements or employee benefit plans referred to in the Offering
Memorandum or pursuant to the exercise of warrants, convertible securities, options or preferred
stock purchase rights referred to in the Offering Memorandum or as otherwise disclosed in the
Offering Memorandum). The outstanding shares of capital stock of the Company have been duly
authorized and validly issued and are fully paid and non-assessable. None of the outstanding
shares of capital stock of the Company was issued in violation of the preemptive or other similar
rights of any securityholder of the Company.

     (m) Authorization of Agreement. This Agreement has been duly authorized, executed and
delivered by the Company.

     (n) The DTC Agreement. The DTC Agreement has been duly authorized and, on the Closing
Date, will have been duly executed and delivered by, and will constitute a valid and binding
agreement of, the Company, enforceable in accordance with its terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting the rights and remedies of creditors or by general equitable
principles.

     (o) Authorization of the Firm Notes. The Firm Notes to be purchased by the Initial Purchasers
from the Company will on the Closing Date be in the form contemplated by the Indenture, have been
duly authorized for issuance and sale pursuant to this Agreement and the Indenture and, at the
Closing Date, will have been duly executed by the Company and, when authenticated in the manner
provided for in the Indenture and delivered against payment of the purchase price therefor, will
constitute valid and binding obligations of the Company, enforceable in accordance with their
terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights and remedies of creditors or
by general equitable principles and will be entitled to the benefits of the Indenture. The
Additional Notes to be purchased by the Initial Purchasers from the Company, if any, will on the
applicable Option Closing Date be in the form contemplated by the Indenture, have been duly
authorized for issuance and sale pursuant to this Agreement and the In-

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denture and, at the applicable Option Closing Date, will have been duly executed by the Company
and, when authenticated in the manner provided for in the Indenture and delivered against payment
of the purchase price therefor, will constitute valid and binding obligations of the Company,
enforceable in accordance with their terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting
the rights and remedies of creditors or by general equitable principles and will be entitled to
the benefits of the Indenture.

     (p) Authorization of Common Stock Issuable Upon Conversion. The Common Stock issuable upon
conversion of the Notes has been duly authorized and reserved and, when issued upon conversion of
the Notes in accordance with the terms of the Notes and the Indenture, will be validly issued,
fully paid and non-assessable, and the issuance of such Common Stock will not be subject to any
preemptive or similar right.

     (q) Authorization of the Indenture. The Indenture has been duly authorized by the Company
and, at the Closing Date, will have been duly executed and delivered
by the Company and will constitute a valid and binding agreement of the Company, enforceable against the Company in
accordance with its terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights
and remedies of creditors or by general equitable principles.

     (r) Description of the Transaction Documents. The Transaction Documents will conform in all
material respects to the respective statements relating thereto contained in the Offering
Memorandum.

     (s) Absence of Violations, Defaults and Conflicts. Neither the Company nor any of its
subsidiaries is (i) in violation of its charter, by-laws or similar organizational document, (ii)
in default in the performance or observance of any obligation, agreement, covenant or condition
contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement, note,
lease or other agreement or instrument to which the Company or any of its subsidiaries is a party
or by which it or any of them may be bound or to which any of the properties or assets of the
Company or any subsidiary is subject (collectively, “Agreements and Instruments”), except for such
defaults that would not, singly or in the aggregate, result in a Material Adverse Effect, or (iii)
in violation of any law, statute, rule, regulation, judgment, order, writ or decree of any
arbitrator, court, governmental body, regulatory body, administrative agency or other authority,
body or agency having jurisdiction over the Company or any of its subsidiaries or any of their
respective properties, assets or operations (each, a “Governmental Entity”), except as disclosed
in the Offering Memorandum under “Risk Factors—We have potential exposure to environmental
liabilities, which could increase costs or have an adverse effect on results of operations” and
except for such violations that would not, singly or in the aggregate, result in a Material
Adverse Effect. The execution, delivery and performance of the Transaction Documents by the
Company, the consummation of the transactions contemplated herein and therein, and in the Offering
Memorandum (including the issuance and sale of the Notes and the use of the proceeds from the sale
of the Notes as described therein under the caption “Use of Proceeds” and the issuance of the
Common Stock upon

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conversion of the Notes), and compliance by the Company with its obligations hereunder and
thereunder, have been duly authorized by all necessary corporate action and do not and will not,
whether with or without the giving of notice or passage of time or both, (except, with respect to
subparts (A) and (C) below, for such conflicts, breaches, defaults or Repayment Events (as defined
below) or liens, charges or encumbrances that would not, singly or in the aggregate, result in a
Material Adverse Effect) (A) conflict with or constitute a breach of, or default or Repayment
Event (as defined below) under, or result in the creation or imposition of any lien, charge or
encumbrance upon any properties or assets of the Company or any subsidiary pursuant to, the
Agreements and Instruments, (B) result in any violation of the provisions of the charter, by-laws
or similar organizational document of the Company or any of its subsidiaries, or (C) result in any
violation of any applicable law, statute, rule, regulation, judgment, order, writ or decree of any
Governmental Entity. As used herein, a “Repayment Event” means any event or condition which gives
the holder of any note, debenture or other evidence of indebtedness (or any person acting on such
holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion
of such indebtedness by the Company or any of its subsidiaries.

     (t) Employee Benefit Plans. No nonexempt “prohibited transaction” (as defined in either
Section 406 of the Employee Retirement Income Security Act of 1974, as amended, including the
regulations and published interpretations thereunder (“ERISA”) or Section 4975 of the Internal
Revenue Code of 1986, as amended from time to time (the “Code”)), that would reasonably be expected
to have a Material Adverse Effect on the Company, has occurred with respect to any employee
benefit plan for which the Company or any of its subsidiaries would have any liability; each
employee benefit plan for which the Company or any of its subsidiaries would have any liability is
in compliance in all material respects with applicable law, including (without limitation) ERISA
and the Code; neither the Company nor any of its subsidiaries maintains or has within the preceding
six years maintained any employee benefit plans as such term is defined in Section 3(3) of ERISA
that are subject to Title IV of ERISA; and each plan for which the Company would have any liability
that is intended to be qualified under Section 401(a) of the Code is the subject of a favorable
determination, notification, advisory, or opinion letter from the Internal Revenue Service, is
qualified and nothing has occurred, whether by action or by failure to act, which would reasonably
be expected to cause the loss of such qualification. The execution, delivery, and performance of
the Transaction Documents and the consummation of the transactions contemplated by the Offering
Memorandum, including the Tender Offer, do not and will not involve any prohibited transaction
within the meaning of Section 406 of ERISA or Section 4975 of the Code that would reasonably be
expected to have a Material Adverse Effect on the Company.

     (u) Absence of Proceedings. Except as disclosed in the Offering Memorandum, there is no
action, suit, proceeding, inquiry or investigation before or brought by any Governmental Entity
now pending or, to the knowledge of the Company, threatened, against or affecting the Company or
any of its subsidiaries, which would result in a Material Adverse Effect, or which would
reasonably be expected to materially and adversely affect their respective properties or assets or
the consummation of the transactions contemplated by this Agreement or the performance by the
Company of its obligations here

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under; and the aggregate of all pending legal or governmental proceedings to which the Company or
any such subsidiary is a party or of which any of their respective properties or assets is the
subject which are not described in the Offering Memorandum, including ordinary routine litigation
incidental to the business, would not result in a Material Adverse Effect.

     (v) Absence of Further Requirements. No filing with, or authorization, approval, consent,
license, order, registration, qualification or decree of, any Governmental Entity is necessary
or required for the execution, delivery and performance of the Transaction Documents by the
Company, or the issuance and delivery of the Notes (including the issuance and delivery of the
Common Stock upon conversion of the Notes), or the consummation of the transactions contemplated
hereby and thereby and by the Offering Memorandum, except (i) such as have been already obtained
or as may be required to be obtained by the Initial Purchasers or (ii) for the receipt of
approval by the New York Stock Exchange (the “NYSE”) of the supplemental listing application to
be filed by the Company for the listing of the shares of Common Stock issuable upon conversion of
the Notes; provided, however, that in case of clause (ii), such exception shall be deemed not
applicable as of the Closing Date and any Option Closing Date.

     (w) Possession of Licenses and Permits. The Company and its subsidiaries possess such
permits, licenses, approvals, consents and other authorizations (collectively, “Governmental
Licenses”) issued by the appropriate Governmental Entities necessary to conduct the business now
operated by them, except where the failure so to possess would not, singly or in the aggregate,
result in a Material Adverse Effect. The Company and its subsidiaries are in compliance with the
terms and conditions of all Governmental Licenses, except where the failure so to comply would
not, singly or in the aggregate, result in a Material Adverse Effect. All of the Governmental
Licenses are valid and in full force and effect, except when the invalidity of such Governmental
Licenses or the failure of such Governmental Licenses to be in full force and effect would not,
singly or in the aggregate, result in a Material Adverse Effect. Neither the Company nor any of its
subsidiaries has received any notice of proceedings relating to the revocation or modification of
any Governmental Licenses which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, would result in a Material Adverse Effect.

     (x) Title to Property. The Company and its subsidiaries have good and marketable title to all
material real property owned by them and good title to all other properties owned by them, which
is, singly or in the aggregate, material to the business of the Company, in each case, free and
clear of all mortgages, pledges, liens, security interests, claims, restrictions or encumbrances
of any kind except such as (i) are described in the Offering Memorandum or (ii) do not, singly or
in the aggregate, materially affect the value of such property and do no interfere with the use
made and proposed to be made of such property by the Company or any of its subsidiaries. The real
property, improvements, equipment and personal property held under material lease by the Company
or any of its subsidiaries are held under valid and enforceable leases, with such exceptions as are
not material and do not materially interfere with the uses made or proposed to be made of such real
property, improvements, equipment or personal property by the Company and its subsidiaries
(considered as a single enterprise).

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     (y) Possession of Intellectual Property. The Company and its subsidiaries own or possess, or
can acquire on reasonable terms, adequate patents, patent applications, patent rights, licenses,
inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures), trademarks, service marks, trade
names, trademark registrations, service mark registrations, formulae, customer lists or other
intellectual property (collectively, “Intellectual Property”) necessary or used to carry on the
business now operated by them except where the failure to so own, possess, or license or have other
rights to use or acquire would not result in a Material Adverse Effect, and neither the Company nor
any of its subsidiaries has received any notice or is otherwise aware of any infringement,
violation or misappropriation of or conflict with asserted rights of others with respect to any
Intellectual Property or of any facts or circumstances which would render any Intellectual Property
invalid or inadequate to protect the interest of the Company or any of its subsidiaries therein,
and which infringement or conflict (if the subject of any unfavorable decision, ruling or finding)
or invalidity or inadequacy, singly or in the aggregate, would result in a Material Adverse
Effect. To the Company’s knowledge, the Company has taken commercially reasonable steps to keep
confidential all material technical information of significant economic value developed by and
belonging to the Company or any of its subsidiaries which has not been patented which the Company
intended to keep confidential. Except as described in the Offering Memorandum, neither the Company
nor any of its subsidiaries has granted or assigned to any other person or entity any right to
manufacture, have manufactured, assemble or sell the current products and services of the Company
and its subsidiaries or those products and services described in the Offering Memorandum except as
would not materially adversely affect the Company. Except as would not, singly or in the aggregate,
result in a Material Adverse Effect, (x) the Company is not aware of any infringement by third
parties of any Intellectual Property of the Company or any of its subsidiaries; (y) there is no
pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others
challenging the Company’s or any of its subsidiaries’ ownership of or rights in or to any of the
Company’s Intellectual Property (if the subject of an unfavorable decision, ruling or finding); and
(z) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or
claim by others that the Company or any of its subsidiaries infringes, misappropriates or otherwise
violates any Intellectual Property of others, and the Company is unaware of any fact that would
form a reasonable basis for any such claim. Neither the Company nor any of its subsidiaries is in
material breach or violation of any license or other agreement that relates to any material
Intellectual Property owned or used by the Company or any of its subsidiaries and, to the Company’s
knowledge, no other party to any such agreement is in material breach thereof.

     (z) Environmental Laws. Except as described in the Offering Memorandum or would not, singly
or in the aggregate, result in a Material Adverse Effect, (i) neither the Company nor any of its
subsidiaries is in violation of any federal, state, local or foreign statute, law, rule,
regulation, ordinance, code, policy or rule of common law or any judicial or administrative
interpretation thereof, including any judicial or administrative order, consent, decree or
judgment, relating to pollution or protection of human health, the environment (including,
without limitation, ambient air, surface water, groundwater, land surface or subsurface strata)
or wildlife, including, without limitation,

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laws and regulations relating to the release or threatened release of chemicals, pollutants,
contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum products,
asbestos-containing materials or mold (collectively, “Hazardous Materials”) or to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous
Materials (collectively, “Environmental Laws”), (ii) the Company and its subsidiaries have all
permits, authorizations and approvals required under any applicable Environmental Laws and are
each in compliance with their requirements, (iii) there are no pending or, to the Company’s
knowledge, threatened administrative, regulatory or judicial actions, suits, demands, demand
letters, claims, liens, notices of noncompliance or violation, investigation or proceedings
relating to any Environmental Law against the Company or any of its subsidiaries, (iv) to the
Company’s knowledge, neither the Company nor any of its subsidiaries has agreed contractually to
indemnify any past or current owner or operator of any property currently owned or operated by
the Company or any of its subsidiaries, for liability related to the prior ownership or operation
of such property, under any Environmental Law, including any obligation for cleanup or remedial
action and (v) to the Company’s knowledge, there are no events or circumstances that would
reasonably be expected to form the basis of an order for cleanup or remediation, or an action,
suit or proceeding by any private party or Governmental Entity, against or affecting the Company
or any of its subsidiaries relating to Hazardous Materials or any Environmental Laws.

     (aa) Accounting Controls and Disclosure Controls. The Company and each of its subsidiaries
maintain effective internal control over financial reporting (as defined under Rule 13-a15 and
15d-15 under the Exchange Act) and a system of internal accounting controls sufficient to provide
reasonable assurances that (i) transactions are executed in accordance with management’s general or
specific authorization; (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP and to maintain accountability for assets; (iii)
access to assets is permitted only in accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared with the existing assets
at reasonable intervals and appropriate action is taken with respect to any differences. Except as
described in the Offering Memorandum, since the end of the Company’s most recent audited fiscal
year there has been (1) no material weakness in the Company’s internal control over financial
reporting required to be disclosed under the Exchange Act (whether or not remediated) and (2) no
change in the Company’s internal control over financial reporting that has materially affected, or
is reasonably likely to materially affect, the Company’s internal control over financial
reporting. The Company and each of its subsidiaries maintain an effective system of disclosure
controls and procedures (as defined in Rule 13a-15 and Rule 15d-15 under the Exchange Act) that are
designed to ensure that information required to be disclosed by the Company in the reports that it
files or submits under the Exchange Act is recorded, processed, summarized and reported, within
the time periods specified in the Commission’s rules and forms, and is accumulated and
communicated to the Company’s management, including its principal executive officer or officers
and principal financial officer or officers, as appropriate, to allow timely decisions regarding
disclosure.

11

 

     (bb) Payment of Taxes. Except, in each case, as would not result in a Material Adverse
Effect, all United States federal income tax returns of the Company and its subsidiaries required
by law to be filed have been filed (or the Company or its subsidiaries has duly requested
extensions to such filings), and all taxes shown by such returns or otherwise assessed, which are
due and payable, have been paid, except assessments against which appeals have been or will be
promptly taken and as to which adequate reserves have been provided. The United States federal
income tax returns of the Company through the fiscal year ended [August 31, 2003] have been closed
and no unpaid assessment in connection therewith has been made against the Company. The Company
and its subsidiaries have filed all other tax returns, or permitted extensions, that are required
to have been filed by them pursuant to applicable foreign, state, local or other law except
insofar as the failure to file such returns (or extensions) would not result in a Material
Adverse Effect, and has paid all taxes due pursuant to such returns or pursuant to any assessment
received by the Company and its subsidiaries, except for such taxes, if any, as are being contested
in good faith and as to which adequate reserves have been established by the Company. The charges,
accruals and reserves on the books of the Company in respect of any income and corporation tax
liability for any years not finally determined are adequate to meet any assessments or
re-assessments for additional income tax for any years not finally determined, except to the extent
of any inadequacy that would not result in a Material Adverse Effect.

     (cc) Insurance. Except, in each case, as would not result in a Material Adverse Effect, the
Company and its subsidiaries carry or are entitled to the benefits of insurance, with insurers who
are, to the Company’s knowledge, financially sound and reputable, in such amounts and covering
such risks which the Company reasonably believes is adequate, and all such insurance is in full
force and effect. The Company believes that it or any of its subsidiaries will be able (i) to
renew its existing insurance coverage as and when such policies expire or (ii) to obtain
comparable coverage from similar institutions as may be necessary or appropriate to conduct its
business as now conducted and at a cost that would not result in a Material Adverse Effect. The
Company has in effect insurance covering the Company, its directors and officers for liabilities
or losses arising in connection with the offer and sale of the Notes, including, liabilities or
losses arising under the Securities Act, the Exchange Act and applicable foreign securities laws.

     (dd) Investment Company Act. The Company is not required, and upon the issuance and sale
of the Notes as herein contemplated and the application of the net proceeds therefrom as
described in the Offering Memorandum will not be required, to register as an “investment
company” under the Investment Company Act of 1940, as amended.

     (ee) Absence of Manipulation. Neither the Company nor any affiliate of the Company has
taken, nor will the Company or any affiliate take, directly or indirectly, any action which is
designed, or would be expected, to cause or result in, or which has constitutes, the
stabilization or manipulation of the price of any security of the Company to facilitate the sale
or resale of the Notes.

12

 

     (ff) Foreign Corrupt Practices Act. None of the Company, any of its subsidiaries or, to the
knowledge of the Company, any director, officer, agent, employee, affiliate or other person
acting on behalf of the Company or any of its subsidiaries is aware of or has taken any action,
directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt
Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”),
including, without limitation, making use of the mails or any means or instrumentality of
interstate commerce corruptly in furtherance of an offer, payment, promise to pay or
authorization of the payment of any money, or other property, gift, promise to give, or
authorization of the giving of anything of value to any “foreign official” (as such term is
defined in the FCPA) or any foreign political party or official thereof or any candidate for
foreign political office, in contravention of the FCPA and the Company and, to the knowledge of
the Company, its affiliates have conducted their businesses in compliance with the FCPA and the
Company has taken steps to institute and maintain reasonable policies and procedures designed to
ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.

     (gg) Money Laundering Laws. The operations of the Company and its subsidiaries are and have
been conducted at all times in compliance with applicable financial recordkeeping and reporting
requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended,
applicable money laundering statutes of all jurisdictions, the rules and regulations thereunder
and any related or similar rules, regulations or guidelines, issued, administered or enforced by
any Governmental Entity (collectively, the “Money Laundering Laws”); and no action, suit or
proceeding by or before any Governmental Entity involving the Company or any of its subsidiaries
with respect to the Money Laundering Laws is pending or, to the knowledge of the Company,
threatened.

     (hh) OFAC. None of the Company, any of its subsidiaries or, to the knowledge of the Company,
any director, officer, agent, employee, affiliate or other person acting on behalf of the
Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will
not directly or indirectly use the proceeds of the sale of the Notes, or lend, contribute or
otherwise make available such proceeds to any of its subsidiaries, joint venture partners or
other person, for the purpose of financing the activities of any person currently subject to any
U.S. sanctions administered by OFAC.

     (ii) Regulation. The Company and its subsidiaries have all material certifications required
by the Association of American Railroads (“AAR”) as a railcar builder, repair and refurbishment
facility and component manufacturer, and products sold and leased by the Company and its
subsidiaries in North America meet applicable AAR, Transport Canada and Federal Railroad
Administration standards in all material respects.

     (jj) Statistical, Industry-Related and Market-Related Data. Any statistical,
industry-related and market-related data included in the Offering Memorandum are based on or
derived from sources that the Company reasonably believes to be reliable and accurate and, to the
extent required, the Company has obtained the consent to the use

13

 

of such data from such sources, or otherwise represent the
Company’s reasonable estimates determined in good faith.

     (kk) Solvency. The Company is, and immediately after the Closing Date
will be, Solvent. As used herein, the term “Solvent” means, with respect to
any person on a particular date, that on such date (i) the fair market value
of the assets of such person is greater than the total amount of liabilities
(including contingent liabilities) of such person, (ii) the present fair
salable value of the assets of such person is greater than the amount that
will be required to pay the probable liabilities of such person on its debts
as they become absolute and matured, (iii) such person is able to realize
upon its assets and pay its debts and other liabilities, including
contingent obligations, as they mature and
(iv) such person does not have unreasonably small
capital.

     (ll) Compliance with Sarbanes-Oxley. The Company and its
subsidiaries and their respective officers and directors are in
compliance in all material respects with the applicable provisions of the
Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act,” which term, as used
herein, includes the rules and regulations of the Commission promulgated
thereunder).

     (mm) Regulations T, U, X. Neither the Company nor any of its
subsidiaries or agents acting on its behalf has taken, and none of them
will take, any action that might cause this Agreement or the issuance or
sale of the Notes to violate Regulation T, Regulation U or Regulation X
of the Board of Governors of the Federal Reserve System.

     (nn) Compliance with Labor Laws. Except as otherwise disclosed in the
Offering Memorandum or as would not, individually or in the aggregate,
result in a Material Adverse Effect, there is no labor dispute with
employees of the Company or any of its subsidiaries exists or, to the
Company’s knowledge, is threatened or imminent, and the Company is not aware
of any existing or imminent labor disturbance by the subcontracted labor at
any of the Company’s facilities, which, in either case, would result in a
Material Adverse Effect.

     Any certificate signed by any officer of the Company or any of its subsidiaries delivered
to the Initial Purchasers or to counsel for the Initial Purchasers shall be deemed to be a
representation and warranty by the Company to each Initial Purchaser as to the matters covered
thereby.

     SECTION 2. Purchase, Sale and Delivery of the Notes.

     (a) The Firm Notes. The Company agrees to issue and sell
to the Initial Purchasers, severally and not jointly, all of
the Firm Notes, and subject to the conditions set forth
herein, the Initial Purchasers agree, severally and not
jointly, to purchase from the Company the aggregate principal
amount of Firm Notes set forth opposite their names on
Schedule A, at a purchase price of 97% of the
principal amount thereof payable on the Closing Date, in each
case, on the basis of the representations, warranties and
agreements herein contained, and upon the terms herein set
forth.

     (b) The Closing Date. Delivery of certificates for the
Firm Notes to be purchased by the Initial Purchasers and
payment therefor shall be made at the offices

14

 

of Gibson Dunn & Crutcher, LLC, 333 South Grand Avenue, Los Angeles, CA 90071 (or such other place
as may be agreed to by the Company and Merrill Lynch) at 9:00 a.m. New York City time, on April 5,
2011, or such other time and date as the parties may agree (the time and date of such closing are
called the “Closing Date”).

     (c) Delivery of the Firm Notes. The Company shall deliver, or cause to be delivered, to the
several Initial Purchasers certificates for the Firm Notes at the Closing Date against the
irrevocable release of a wire transfer of immediately available funds for the amount of the
purchase price therefor. The certificates for the Firm Notes shall be in such denominations and
registered in the name of Cede & Co., as nominee of the Depositary, pursuant to the DTC
Agreement, and shall be made available for inspection on the business day preceding the Closing
Date at a location in New York City, as Merrill Lynch may designate. Time shall be of the
essence, and delivery at the time and place specified in this Agreement is a further condition
to the obligations of the Initial Purchasers.

     (d) The Additional Notes. The Company agrees to issue and sell to the Initial Purchasers,
severally and not jointly, all of the Additional Notes set forth in the Overallotment Notice, and
subject to the conditions set forth herein, the Initial Purchasers agree, severally and not
jointly, to purchase from the Company the aggregate principal amount of such Additional Notes
that bears the same proportion to the total principal amount of Additional Notes to be purchased
on such Option Closing Date (as defined below) as the principal amount of Firm Notes set forth in
Schedule A opposite the name of such Initial Purchaser bears to the total principal amount of Firm Notes, at a purchase price of 97% of the principal amount thereof payable on
the Option Closing Date, in each case, on the basis of the representations, warranties and
agreements herein contained, and upon the terms herein set forth. The Initial Purchasers’ option
to purchase Additional Notes may be exercised in whole or from time to time in part by giving
written notice not later than 30 days after the date of this Agreement solely to cover
overallotments, if any. Any exercise notice shall specify the principal amount of Additional Notes
to be purchased by the Initial Purchasers and the date on which such Additional Notes are to be
purchased (each such notice, an “Overallotment Notice”). Each purchase date must be at least two
business days after the written notice is given (except if the purchase date is to be the Closing
Date, then such purchase date shall be the Closing Date) and may not be earlier than the Closing
Date nor later than ten business days after the date of such notice.

     (e) Option Closing Date. Delivery of certificates for the Additional Notes to be purchased by
the Initial Purchasers, if any, and payment therefor shall be made at the offices of Gibson Dunn &
Crutcher, LLC, 333 South Grand Avenue, Los Angeles, CA 90071 (or such other place as may be agreed
to by the Company and Merrill Lynch) at 9:00 a.m. New York City time, on such date as set forth in
the Overallotment Notice, or such other time and date as the parties may agree (the time and date
of such closing are called the “Option Closing Date”).

15

 

     (f) Delivery of the Additional Notes. The Company shall
deliver, or cause to be delivered, to the several Initial
Purchasers certificates for the Additional Notes at the Option
Closing Date against the irrevocable release of a wire
transfer of immediately available funds for the amount of the
purchase price therefor. The certificates for the Additional
Notes shall be in such denominations and registered in the
name of Cede & Co., as nominee of the Depositary, pursuant to
the DTC Agreement, and shall be made available for inspection
on the business day preceding the Option Closing Date at a
location in New York City, as Merrill Lynch may designate.
Time shall be of the essence, and delivery at the time and
place specified in this Agreement is a further condition to
the obligations of the Initial Purchasers.

     (g) Initial Purchasers as Qualified Institutional
Buyers. Each Initial Purchaser severally and not
jointly represents and warrants to, and agrees with,
the Company that:

     (i) it has not offered or sold, and it will not offer or sell Notes
except to persons who it reasonably believes are “qualified institutional
buyers” within the meaning of Rule 144A (“Qualified Institutional Buyers”)
purchasing for its own account or for the account of a Qualified
Institutional Buyer in transactions meeting the requirements of Rule 144A;

     (ii) it is an institutional “accredited investor”
within the meaning of Rule 501(a)(1), (2), (3) or (7)
under the Securities Act; and

     (iii) it has not offered or sold, and it will not offer or sell Notes
by, any form of general solicitation or general advertising, including but
not limited to the methods described in Rule 502(c) under the Securities
Act.

     SECTION 3. Additional Covenants. The Company further covenants and agrees with each Initial
Purchaser as follows:

     (a) Preparation of Final Offering Memorandum; Initial Purchasers’
Review of Proposed Amendments and Supplements and Company Additional
Written Communications. As promptly as practicable following the Time of
Sale and in any event not later than the third business day following the
date hereof, the Company will prepare and deliver to the Initial Purchasers
the Final Offering Memorandum, which shall consist of the Preliminary
Offering Memorandum as modified only by the information contained in the
Pricing Supplement. The Company will not amend or supplement the Preliminary
Offering Memorandum or the Pricing Supplement. The Company will not amend or
supplement the Final Offering Memorandum prior to the Closing Date unless
each Initial Purchaser shall previously have been furnished a copy of the
proposed amendment or supplement at least two business days, or if
impractical, a reasonable period of time prior to the proposed use or
filing, and shall not have objected to such amendment or supplement. Before
making, preparing, using, authorizing, approving or distributing any Company
Additional Written Communication, the Company will furnish to each Initial
Purchaser a copy of such written communication for review and will not

16

 

make, prepare, use, authorize, approve or distribute any such written communication to
which any Initial Purchaser reasonably objects.

     (b) Amendments and Supplements to the Final Offering Memorandum and Other Securities Act
Matters. If at any time prior to the Closing Date (i) any event shall occur or condition shall
exist as a result of which any of the Pricing Disclosure Package as then amended or supplemented
would include any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading or (ii) it is necessary to amend or supplement any of the Pricing Disclosure
Package to comply with law, the Company will immediately notify the Initial Purchasers thereof and
forthwith prepare and (subject to Section 3(a) hereof) furnish to the Initial Purchasers such
amendments or supplements to any of the Pricing Disclosure Package (including any information to be
filed with the Commission and incorporated by reference therein) as may be necessary so that the
statements in any of the Pricing Disclosure Package as so amended or supplemented (including such
information to be incorporated by reference therein) will not, in the light of the circumstances
under which they were made, be misleading or so that any of the Pricing Disclosure Package will
comply with all applicable law. If, prior to the completion of the placement of the Notes by the
Initial Purchasers with the Subsequent Purchasers, any event shall occur or condition exist as a
result of which it is necessary to amend or supplement the Final Offering Memorandum, as then
amended or supplemented, in order to make the statements therein, in the light of the
circumstances when the Final Offering Memorandum is delivered to a Subsequent Purchaser, not
misleading, or if in the judgment of the Initial Purchasers or counsel for the Initial Purchasers
it is otherwise necessary to amend or supplement the Final Offering Memorandum to comply with law,
the Company agrees to promptly prepare (subject to Section 3 hereof), file with the Commission and
furnish at its own expense to the Initial Purchasers, amendments or supplements to the Final
Offering Memorandum (including any information to be filed with the Commission and incorporated by
reference therein) so that the statements in the Final Offering Memorandum as so amended or
supplemented will not, in the light of the circumstances at the Closing Date and at the time of
sale of Notes, be misleading or so that the Final Offering Memorandum, as amended or supplemented
(including such information to be incorporated by reference therein), will comply with all
applicable law.

     The Company hereby expressly acknowledges that the indemnification and contribution
provisions of Sections 8 and 9 hereof are specifically applicable and relate to each
offering memorandum, amendment or supplement referred to in this Section 3.

     (c) Copies of the Offering Memorandum. The Company agrees to furnish the Initial
Purchasers, without charge, as many copies of the Pricing Disclosure Package and the Final
Offering Memorandum and any amendments and supplements thereto (including any information to be
incorporated by reference therein) as they shall reasonably request.

     (d) Blue Sky Compliance. The Company shall reasonably cooperate with the Initial
Purchasers and counsel for the Initial Purchasers to qualify or register (or

17

 

to obtain exemptions from qualifying or registering) all or any part of the Notes for offer and
sale under the securities laws of the several states of the United States, the provinces of Canada
or any other jurisdictions designated by the Initial Purchasers, shall comply in all material
respects with such laws and shall continue such qualifications, registrations and exemptions in
effect so long as required for the distribution of the Notes. The Company shall not be required
to qualify as a foreign corporation or other entity or to take any action that would subject it to
general service of process in any such jurisdiction where it is not presently qualified or where
it would be subject to taxation as a foreign corporation or other entity. The Company will advise
the Initial Purchasers promptly of the suspension of the qualification or registration of (or any
such exemption relating to) the Notes for offering, sale or trading in any jurisdiction or any
initiation or threat of any proceeding for any such purpose, and in the event of the issuance of
any order suspending such qualification, registration or exemption, the Company shall use its best
efforts to obtain the withdrawal thereof at the earliest possible moment.

     (e) Use of Proceeds. The Company shall apply the net proceeds from the sale of the Notes sold
by it in the manner described under the caption “Use of Proceeds” in the Pricing Disclosure
Package.

     (f) The Depositary. The Company will reasonably cooperate with the Initial Purchasers and
use its reasonable best efforts to permit the Notes to be eligible for clearance and settlement
through the facilities of the Depositary.

     (g) Additional Issuer Information. Prior to the completion of the placement of the Notes by
the Initial Purchasers with the Subsequent Purchasers, the Company shall file, on a timely basis,
with the Commission and the NYSE all reports and documents required to be filed under Section 13
or 15 of the Exchange Act. Additionally, at any time when the Company is not subject to Section
13 or 15 of the Exchange Act, for the benefit of holders and beneficial owners from time to time
of the Notes, the Company shall furnish, at its expense, upon request, to holders and beneficial
owners of Notes and prospective purchasers of Notes information (“Additional Issuer Information”)
satisfying the requirements of Rule 144A(d).

     (h) Agreement Not To Offer or Sell Additional Notes. During the period of 90 days
following the date hereof, the Company will not, without the prior written consent of Merrill
Lynch (which consent may be withheld at the sole discretion of Merrill Lynch), (i) directly or
indirectly, sell, offer, contract or grant any option to sell, pledge, transfer or establish an
open “put equivalent position” within the meaning of Rule 16a-1 under the Exchange Act, or
otherwise dispose of or transfer, or announce the offering of, or file any registration statement
under the Securities Act in respect of, any debt securities of the Company or securities
exchangeable for or convertible into debt securities of the Company; (ii) directly or indirectly,
offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any
option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer
or dispose of any shares of Common Stock or any securities convertible into or exercisable or
exchangeable for Common Stock or file any registration statement under the Securities Act with
respect to any of the foregoing; or (iii) enter into any swap or any other agreement or any
transaction that transfers, in

18

 

whole or in part, directly or indirectly, the economic consequence of ownership of the Common
Stock, whether any such swap or transaction described in clause (ii) or (iii) above is to be
settled by delivery of Common Stock or such other securities, in cash or otherwise. The
foregoing sentence shall not apply to (A) the Notes to be sold hereunder,
(B) any shares of Common Stock issued by the Company upon the exercise of an option or warrant or
the conversion of a security outstanding on the date hereof, (C) any shares of Common Stock issued
or options to purchase Common Stock granted pursuant to existing employee benefit plans of the
Company, including with respect to the 2005 Stock Incentive Plan, as amended, (D) any shares of
Common Stock issued pursuant to any existing non-employee director stock plan of the Company or
(E) any shares of Common Stock issued in connection with strategic relationships or acquisitions
of businesses, technologies or products, provided however, that any such issuance in connection
with strategic relationships or acquisitions of businesses, technologies or products does not
exceed 5% of the shares of Common Stock outstanding immediately prior to such issuance. Nothing
in this Section 3(h) shall prevent the Company from filing any registration statements on Form S-8, including any related reoffer prospectus in accordance with Forms S-8 and S-3, or S-4 relating
to the issuance of securities pursuant to clauses (A), (B), (C),
(D) or (E) set forth in this Section 3(h) or the exercise of registration rights set forth in the
Investor Rights and Restrictions Agreement dated June 10, 2009 among the Company and the other
parties thereto.

     (i) No Integration. The Company agrees that it will not and will cause its Affiliates not
to make any offer or sale of securities of the Company of any class if, as a result of the
doctrine of “integration” referred to in Rule 502 under the Securities Act, such offer or sale
would render invalid (for the purpose of (i) the sale of the Notes by the Company to the Initial
Purchasers, (ii) the resale of the Notes by the Initial Purchasers to Subsequent Purchasers or
(iii) the resale of the Notes by such Subsequent Purchasers to others) the exemption from the
registration requirements of the Securities Act provided by Section 4(2) thereof or by Rule 144A
thereunder or otherwise.

     (j) No General Solicitation or Directed Selling Efforts. The Company agrees that it will not
and will not permit any of its Affiliates or any other person acting on its or their behalf
(other than the Initial Purchasers, as to which no covenant is given) to solicit offers for, or
offer or sell, the Notes by means of any form of general solicitation or general advertising
within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering
within the meaning of Section 4(2) of the Securities Act.

     (k) No Restricted Resales. The Company will not, for a period of one year commencing on
the Closing Date, resell any of the Notes that have been reacquired by it.

     (l) Legended Notes. Each certificate for a Note will bear the legend
contained in “Transfer Restrictions” in the Preliminary Offering Memorandum for the time
period and upon the other terms stated in the Preliminary Offering Memorandum.

19

 

     (m) Underlying Shares of Common Stock. The Company will reserve
and keep available at all times, free of pre-emptive rights, shares
of Common Stock for the purpose of enabling the Company to satisfy
all obligations to issue the number of shares of Common Stock,
subject to adjustment, issuable upon conversion of the Notes. The
Company will use its best efforts to cause such shares of Common
Stock upon conversion to be listed on the NYSE.

     The Initial Purchasers, may, in their sole discretion, waive in writing the performance by
the Company of any one or more of the foregoing covenants or extend the time for their
performance.

     SECTION 4. Payment of Expenses. The Company agrees to pay all costs, fees and expenses
incurred in connection with the performance of its obligations hereunder and in connection with
the transactions contemplated hereby, including, without limitation, (i) all expenses incident to
the issuance and delivery of the Notes (including all printing and engraving costs), (ii) all
necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the
Notes to the Initial Purchasers, (iii) all fees and expenses of the Company’s counsel, independent
public or certified public accountants and other advisors, (iv) all costs and expenses incurred in
connection with the preparation, printing, filing, shipping and distribution of the Pricing
Disclosure Package and the Final Offering Memorandum (including financial statements and exhibits
thereto), and all amendments and supplements thereto, and the Transaction Documents, (v) all filing
fees, attorneys’ fees and expenses incurred by the Company or the Initial Purchasers in connection
with qualifying or registering (or obtaining exemptions from the qualification or registration of)
all or any part of the Notes for offer and sale under the securities laws of the several states of
the United States, the provinces of Canada or other jurisdictions designated by the Initial
Purchasers (including, without limitation, the cost of preparing, printing and mailing preliminary
and final blue sky or legal investment memoranda and any related supplements to the Pricing
Disclosure Package or the Final Offering Memorandum), (vi) the fees and expenses of the Trustee,
including the fees and disbursements of counsel for the Trustee in connection with the Indenture
and the Notes, (vii) any fees payable in connection with the rating of the Notes with the ratings
agencies, (viii) any filing fees incident to, and any reasonable fees and disbursements of counsel
to the Initial Purchasers in connection with the review by FINRA, if any, of the terms of the sale
of the Notes, (ix) all fees and expenses (including reasonable fees and expenses of counsel) of the
Company in connection with approval of the Notes by the Depositary for “bookentry” transfer, and
the performance by the Company of its other obligations under this Agreement, (x) any fees or
costs incident to listing the shares of Common Stock issuable upon conversion of the Notes and
(xi) all expenses incident to the “road show” for the offering of the Notes, including the cost of
any chartered airplane or other transportation. Except as provided in this Section 4 and Sections
6, 8 and 9 hereof, the Initial Purchasers shall pay their own expenses, including the fees and
disbursements of their counsel.

     SECTION 5. Conditions of the Obligations of the Initial Purchasers. The obligations of the
several Initial Purchasers to purchase and pay for the Notes as provided herein on the Closing
Date and each Option Closing Date, as the case may be, shall be subject to the accuracy of the
representations and warranties on the part of the Company set forth in Section 1 hereof as of the
date hereof and as of the Closing Date or the Option Closing Date, as the case may be, as

20

 

though then made and to the timely performance by the Company of its covenants and other
obligations hereunder, and to each of the following additional conditions:

     (a) Accountants’ Comfort Letters. On the date hereof, the Initial
Purchasers shall have received from Deloitte & Touche LLP and KPMG LLP,
the independent registered public accounting firms for the Company,
“comfort letters” dated the date hereof addressed to the Initial
Purchasers, in form and substance satisfactory to the Initial Purchasers,
covering the financial information in the Pricing Disclosure Package and
other customary matters. In addition, on the Closing Date and each Option
Closing Date, the Initial Purchasers shall have received from each of
Deloitte & Touche LLP and KPMG LLP a “bring-down comfort letter” dated the
Closing Date and each Option Closing Date, as applicable, addressed to the
Initial Purchasers, in form and substance satisfactory to the Initial
Purchasers, in the form of the “comfort letters” delivered on the date
hereof, except that (i) it shall cover the financial information in the
Final Offering Memorandum and any amendment or supplement thereto and (ii)
procedures shall be brought down to a date no more than 3 days prior to the
Closing Date or Option Closing Date, as applicable.

     (b) No Material Adverse Effect or Ratings Agency Change. For the
period from and after the date of this Agreement and prior to the
Closing Date or Option Closing Date, as applicable:

     (i) in the judgment of the Initial
Purchasers there shall not have occurred
any Material Adverse Effect; and

     (ii) there shall not have occurred any
downgrading, nor shall any notice have been given
of any intended or potential downgrading or of any
review for a possible change that does not indicate
the direction of the possible change, in the rating
accorded the Company or any of its subsidiaries or
any of their securities or indebtedness by any
“nationally recognized statistical rating
organization” as such term is defined for purposes
of Rule 436 under the Securities Act.

     (c) Opinion of Counsel for the Company. On the Closing Date
and each Option Closing Date the Initial Purchasers shall have received
the favorable opinions, in form and substance satisfactory to counsel
for the Initial Purchasers, of (i) Paul, Hastings, Janofsky & Walker LLP
and Tonkon Torp LLP, counsel for the Company, and
(ii) Martin Baker, general counsel for the Company, dated as of such
Closing Date or Option Closing Date.

     (d) Opinion of Counsel for the Initial Purchasers. On the Closing Date
and each Option Closing Date the Initial Purchasers shall have received the
favorable opinion of Gibson Dunn & Crutcher LLP, counsel for the Initial
Purchasers, dated as of such Closing Date or Option Closing Date, with
respect to matters as may be reasonably requested by the Initial
Purchasers.

     (e) Officers’ Certificate. On the Closing Date and each Option
Closing Date the Initial Purchasers shall have received a written
certificate executed by the Chair-

21

 

man of the Board, Chief Executive Officer or President of the
Company and the Chief Financial Officer or Chief Accounting
Officer of the Company, dated as of the Closing Date, to the
effect set forth in Section 5(b)(ii) hereof, and further to the
effect that:

     (i) for the period from and after the
date of this Agreement and prior to the
Closing Date or such Option Closing Date, as
applicable, there has not occurred any
Material Adverse Effect;

     (ii) the representations, warranties and
covenants of the Company set forth in Section 1
hereof were true and correct as of the date
hereof and are true and correct as of the
Closing Date or such Option Closing Date, as
applicable, with the same force and effect as
though expressly made on and as of the Closing
Date or such Option Closing Date, as applicable;
and

     (iii) the Company has complied with all the
agreements and satisfied all the conditions on its
part to be performed or satisfied at or prior to the
Closing Date or such Option Closing Date, as
applicable.

     (f) Indenture. The Company shall have executed and delivered the
Indenture, in form and substance reasonably satisfactory to the
Initial Purchasers, and the Initial Purchasers shall have received
executed copies thereof.

     (g) Lock-up Agreements. At the date of this Agreement, the Initial
Purchasers shall have received an agreement substantially in the form of
Exhibit B hereto signed by the persons listed on Schedule
B hereto.

     (h) Exchange Listing. An application for the listing of the
shares of Common Stock issuable upon conversion of the Notes shall
have been submitted to the NYSE.

     (i) Additional Documents. On or before the Closing Date and each
Option Closing Date, the Initial Purchasers and counsel for the Initial
Purchasers shall have received such information, documents and opinions as
they may reasonably require for the purposes of enabling them to pass upon
the issuance and sale of the Notes as contemplated herein, or in order to
evidence the accuracy of any of the representations and warranties, or
the satisfaction of any of the conditions or agreements, herein contained.

     If any condition specified in this Section 5 is not satisfied when and as required to be
satisfied, this Agreement may be terminated by the Initial Purchasers by notice to the Company
at any time on or prior to the Closing Date, which termination shall be without liability on the
part of any party to any other party, except that Sections 4, 6, 8 and 9 hereof shall at all
times be effective and shall survive such termination.

     SECTION 6. Reimbursement of Initial Purchasers’ Expenses. If this Agreement is
terminated by the Initial Purchasers, the Company shall reimburse the Initial Purchasers,
severally, upon demand for all of their reasonable out-of-pocket expenses, including,
without limitation, the reasonable fees and disbursements of counsel for the Initial
Purchasers.

22

 

     SECTION 7. Offer, Sale and Resale Procedures. Each of the Initial Purchasers, on the one
hand, and the Company, on the other hand, hereby agree to observe the following procedures in
connection with the offer and sale of the Notes:

     (a) Offers and sales of the Notes will be made only by the Initial
Purchasers or Affiliates thereof qualified to do so in the jurisdictions
in which such offers or sales are made. Each such offer or sale shall only
be made to persons whom the offeror or seller reasonably believes to be
Qualified Institutional Buyers.

     (b) The Notes will be offered by approaching prospective Subsequent
Purchasers on an individual basis. No general solicitation or general
advertising (within the meaning of Rule 502 under the Securities Act) will
be used in the United States in connection with the offering of the Notes.

     (c) Upon original issuance by the Company, and until such time as the
same is no longer required under the applicable requirements of the
Securities Act, the Notes (and all securities issued in exchange therefor
or in substitution thereof) shall bear the following legend:

“THE SECURITY (OR ITS
PREDECESSOR) EVIDENCED HEREBY
WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM
REGISTRATION UNDER SECTION 5
OF THE UNITED STATES
SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES
ACT”), AND THE SECURITY
EVIDENCED HEREBY MAY NOT BE
OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF
SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF
THE SECURITY EVIDENCED HEREBY
IS HEREBY NOTIFIED THAT THE
SELLER MAY BE RELYING ON THE
EXEMPTION FROM THE PROVISIONS
OF SECTION 5 OF THE SECURITIES
ACT PROVIDED BY RULE 144A
THEREUNDER. THE HOLDER OF THE
SECURITY EVIDENCED HEREBY
AGREES FOR THE BENEFIT OF THE
COMPANY THAT (A) SUCH SECURITY
MAY BE RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED, ONLY
(1)(a) INSIDE THE UNITED
STATES TO A PERSON WHO THE
SELLER REASONABLY BELIEVES IS
A QUALIFIED INSTITUTIONAL
BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT)
PURCHASING FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER
IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A
UNDER THE SECURITIES ACT, (b)
OUTSIDE THE UNITED STATES TO A
NON-U.S. PERSON IN A
TRANSACTION MEETING THE
REQUIREMENTS OF RULE 903 OR
RULE 904 OF REGULATION S UNDER
THE SECURITIES ACT, (c)
PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY
RULE 144 THEREUNDER (IF
APPLICABLE) OR (d) IN
ACCORDANCE WITH ANOTHER

23

 

EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT (AND BASED
UPON AN OPINION OF COUNSEL
ACCEPTABLE TO THE COMPANY IF
THE COMPANY SO REQUESTS), (2)
TO THE COMPANY OR (3) PURSUANT
TO AN EFFECTIVE REGISTRATION
STATEMENT AND, IN EACH CASE,
IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF
ANY STATE OF THE UNITED STATES
OR ANY OTHER APPLICABLE
JURISDICTION AND (B) THE
HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED
TO, NOTIFY ANY PURCHASER OF
THE SECURITY EVIDENCED HEREBY
OF THE RESALE RESTRICTIONS SET
FORTH IN CLAUSE (A) ABOVE. NO
REPRESENTATION CAN BE MADE AS
TO THE AVAILABILITY OF THE
EXEMPTION PROVIDED BY RULE 144
FOR RESALE OF THE SECURITY
EVIDENCED HEREBY.”

     Following the sale of the Notes by the Initial Purchasers to Subsequent Purchasers pursuant
to the terms hereof, the Initial Purchasers shall not be liable or responsible to the Company for
any losses, damages or liabilities suffered or incurred by the Company, including any losses,
damages or liabilities under the Securities Act, arising from or relating to any resale or transfer
of any Note.

     SECTION 8. Indemnification.

     (a) Indemnification of the Initial Purchasers. The
Company agrees to indemnify and hold harmless each Initial
Purchaser, its affiliates, directors, officers and employees,
and each person, if any, who controls any Initial Purchaser
within the meaning of the Securities Act and the Exchange Act
against any loss, claim, damage, liability or expense, as
incurred, to which such Initial Purchaser, affiliate,
director, officer, employee or controlling person may become
subject, under the Securities Act, the Exchange Act or other
federal or state statutory law or regulation, or at common law
or otherwise (including in settlement of any litigation, if
such settlement is effected with the written consent of the
Company), insofar as such loss, claim, damage, liability or
expense (or actions in respect thereof as contemplated below)
arises out of or is based upon any untrue statement or alleged
untrue statement of a material fact contained in the
Preliminary Offering Memorandum, the Pricing Supplement, any
Company Additional Written Communication or the Final Offering
Memorandum (or any amendment or supplement thereto), or the
omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not
misleading; and to reimburse each Initial Purchaser and each
such affiliate, director, officer, employee or controlling
person for any and all reasonable expenses (including the fees
and disbursements of counsel chosen by Merrill Lynch) as such
expenses are reasonably incurred by such Initial Purchaser or
such affiliate, director, officer, employee or controlling
person in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage,
liability, expense or action; provided,
however, that the foregoing indemnity agreement shall not
apply, with respect to an Initial Purchaser, to any loss,
claim, damage, liability or expense to the

24

 

extent, but only to the extent, arising out of or based upon any untrue statement or alleged
untrue statement or omission or alleged omission made in reliance upon and in conformity with
written information furnished to the Company by such Initial Purchaser expressly for use in the
Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional Written
Communication or the Final Offering Memorandum (or any amendment or supplement thereto). The
indemnity agreement set forth in this Section 8(a) shall be in addition to any liabilities that
the Company may otherwise have.

     (b) Indemnification of the Company. Each Initial Purchaser agrees, severally and not jointly,
to indemnify and hold harmless the Company, each of its directors, officers and each person, if
any, who controls the Company within the meaning of the Securities Act or the Exchange Act, against
any loss, claim, damage, liability or expense, as incurred, to which the Company or any such
director, officer or controlling person may become subject, under the Securities Act, the Exchange
Act, or other federal or state statutory law or regulation, or at common law or otherwise
(including in settlement of any litigation, if such settlement is effected with the written consent
of such Initial Purchaser), insofar as such loss, claim, damage, liability or expense (or actions
in respect thereof as contemplated below) arises out of or is based upon any untrue statement or
alleged untrue statement of a material fact contained in the Preliminary Offering Memorandum, the
Pricing Supplement, any Company Additional Written Communication or the Final Offering Memorandum
(or any amendment or supplement thereto), or the omission or alleged omission therefrom of a
material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged omission was made in
the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional Written
Communication or the Final Offering Memorandum (or any amendment or supplement thereto), in
reliance upon and in conformity with written information furnished to the Company by such Initial
Purchaser expressly for use therein; and to reimburse the Company and each such director, officer
or controlling person for any and all expenses (including the fees and disbursements of counsel) as
such expenses are reasonably incurred by the Company or such director, officer or controlling
person in connection with investigating, defending, settling, compromising or paying any such
loss, claim, damage, liability, expense or action. The Company hereby acknowledges that the only
information that the Initial Purchasers have furnished to the Company expressly for use in the
Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional Written
Communication or the Final Offering Memorandum (or any amendment or supplement thereto) are the
statements set forth in the fifth and twelfth paragraphs, the first three sentences of the
eleventh paragraph and the first sentence of the thirteenth paragraph under the caption “Plan of
Distribution” in the Preliminary Offering Memorandum and the Final Offering Memorandum. The
indemnity agreement set forth in this Section 8(b) shall be in addition to any liabilities that
each Initial Purchaser may otherwise have.

25

 

     (c) Notifications and Other Indemnification Procedures. Promptly after receipt by an indemnified
party under this Section 8 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against an indemnifying party under this Section
8, notify the indemnifying party in writing of the commencement thereof; provided that the
failure to so notify the indemnifying party will not relieve it from any liability which it may
have to any indemnified party under this Section 8 except to the extent that it has been materially
prejudiced by such failure (through the forfeiture of substantive rights and defenses) and shall
not relieve the indemnifying party from any liability that the indemnifying party may have to an
indemnified party other than under this Section 8. In case any such action is brought against any
indemnified party and such indemnified party seeks or intends to seek indemnity from an
indemnifying party, the indemnifying party will be entitled to participate in and, to the extent
that it shall elect, jointly with all other indemnifying parties similarly notified, by written
notice delivered to the indemnified party promptly after receiving the aforesaid notice from such
indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such
indemnified party; provided, however, if the defendants in any such action include
both the indemnified party and the indemnifying party and the indemnified party shall have
reasonably concluded that a conflict may arise between the positions of the indemnifying party and
the indemnified party in conducting the defense of any such action or that there may be legal
defenses available to it and/or other indemnified parties which are different from or additional
to those available to the indemnifying party, the indemnified party or parties shall have the
right to select separate counsel to assume such legal defenses and to otherwise participate in the
defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from
the indemnifying party to such indemnified party of such indemnifying party’s election so to assume
the defense of such action and approval by the indemnified party of counsel, the indemnifying party
will not be liable to such indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense thereof unless (i)
the indemnified party shall have employed separate counsel in accordance with the proviso to the
immediately preceding sentence (it being understood, however, that the indemnifying party shall
not be liable for the expenses of more than one separate counsel (together with local counsel (in
each jurisdiction)), which shall be selected by Merrill Lynch (in the case of counsel representing
the Initial Purchasers or their related persons), representing the indemnified parties who are
parties to such action) or (ii) the indemnifying party shall not have employed counsel satisfactory
to the indemnified party to represent the indemnified party within a reasonable time after notice
of commencement of the action, in each of which cases the reasonable fees and expenses of counsel
shall be at the expense of the indemnifying party.

     (d) Settlements. The indemnifying party under this Section 8 shall not be liable for any
settlement of any proceeding effected without its written consent, which will not be
unreasonably withheld, but if settled with such consent or if there be a final judgment for the
plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss,
claim, damage, liability or expense by reason of such settlement or judgment. No indemnifying
party shall, without the prior written

26

 

consent of the indemnified party, effect any settlement,
compromise or consent to the entry of judgment in any pending
or threatened action, suit or proceeding in respect of which
any indemnified party is or could have been a party and
indemnity was or could have been sought hereunder by such
indemnified party, unless such settlement, compromise or
consent (i) includes an unconditional release of such
indemnified party from all liability on claims that are the
subject matter of such action, suit or proceeding and (ii)
does not include any statements as to or any findings of
fault, culpability or failure to act by or on behalf of any
indemnified party.

     (e) Settlement without Consent if Failure to Reimburse.
If at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for
fees and expenses of counsel, such indemnifying party agrees
that it shall be liable for any settlement of the nature
contemplated by Section 6(d) effected without its written
consent if (i) such settlement is entered into more than 45
days after receipt by such indemnifying party of the
aforesaid request, (ii) such indemnifying party shall have
received notice of the terms of such settlement at least 30
days prior to such settlement being entered into and (iii)
such indemnifying party shall not have reimbursed such
indemnified party in accordance with such request prior to
the date of such settlement.

     SECTION 9. Contribution. If the indemnification provided for in Section 8 hereof is for any
reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in
respect of any losses, claims, damages, liabilities or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified
party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to
therein (i) in such proportion as is appropriate to reflect the relative benefits received by the
Company, on the one hand, and the Initial Purchasers, on the other hand, from the offering of the
Notes pursuant to this Agreement or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the Company, on the one
hand, and the Initial Purchasers, on the other hand, in connection with the statements or
omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any
other relevant equitable considerations. The relative benefits received by the Company, on the one
hand, and the Initial Purchasers, on the other hand, in connection with the offering of the Notes
pursuant to this Agreement shall be deemed to be in the same respective proportions as the total
net proceeds from the offering of the Notes pursuant to this Agreement (before deducting expenses)
received by the Company, and the total discount received by the Initial Purchasers bear to the
aggregate initial offering price of the Notes. The relative fault of the Company, on the one hand,
and the Initial Purchasers, on the other hand, shall be determined by reference to, among other
things, whether any such untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by the Company, on the
one hand, or the Initial Purchasers, on the other hand, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission
or inaccuracy.

     The amount paid or payable by a party as a result of the losses, claims, damages,
liabilities and expenses referred to above shall be deemed to include, subject to the
limitations set forth

27

 

in Section 8 hereof, any reasonable legal or other fees or expenses reasonably incurred by such
party in connection with investigating or defending any action or claim. The provisions set forth
in Section 8 hereof with respect to notice of commencement of any action shall apply if a claim
for contribution is to be made under this Section 9; provided, however, that no
additional notice shall be required with respect to any action for which notice has been given
under Section 8 hereof for purposes of indemnification.

     The Company and the Initial Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section 9 were determined by pro rata allocation (even if the
Initial Purchasers were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to in this
Section 9.

     Notwithstanding the provisions of this Section 9, no Initial Purchaser shall be required to
contribute any amount in excess of the discount received by such Initial Purchaser in connection
with the Notes distributed by it. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11 of the Securities Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to
contribute pursuant to this Section 9 are several, and not joint, in proportion to their respective
commitments as set forth opposite their names in Schedule A. For purposes of this Section
9, each director, officer and employee of an Initial Purchaser and each person, if any, who
controls an Initial Purchaser within the meaning of the Securities Act and the Exchange Act shall
have the same rights to contribution as such Initial Purchaser, and each director and officer of
the Company, and each person, if any, who controls the Company within the meaning of the
Securities Act and the Exchange Act shall have the same rights to contribution as the Company.

     SECTION 10. Termination of this Agreement. The Initial Purchasers, in their discretion, may
terminate this Agreement without liability to the Company, by notice to the Company, at any time at
or prior to the Closing Date (i) if there has been, since the time of execution of this Agreement
or since the respective dates as of which information is given in the Pricing Disclosure Package
or the Final Offering Memorandum, any Material Adverse Effect, or (ii) if there has occurred any
material adverse change in the financial markets in the United States or the international
financial markets, any outbreak of hostilities or escalation thereof or other calamity or crisis or
change involving a prospective change in national or international political, financial or economic
conditions, in each case the effect of which is such as to make it, in the judgment of the Initial
Purchasers, impracticable or inadvisable to proceed with the completion of the offering or to
enforce contracts for the sale of the Notes, or (iii) if trading in any securities of the Company
has been suspended or materially limited by the Commission or the NYSE, or (iv) if trading
generally on the NYSE or in the Nasdaq Global Market has been suspended or materially limited by
any of said exchanges or by order of the Commission, FINRA or any other governmental authority, or
(v) a material disruption has occurred in commercial banking or securities settlement or clearance
services in the United States or with respect to Clearstream or Euroclear systems in Europe, or
(vi) if a banking moratorium has been declared by any Federal or state authorities. Any termination
pursuant to this Section 10 shall be without liability on the part of (i) the Company to any
Initial Purchaser, except that the Company shall be obligated to reimburse the expenses of the
Initial Purchasers pursuant to Sections 4 and 6 hereof, (ii) any Initial Purchaser to the Company,
or (iii) any party hereto to any other party except that the provisions of Sections 8 and 9 hereof
shall at all times be effective and shall survive such termination.

28

 

     SECTION 11. Representations and Indemnities to Survive Delivery. The respective indemnities,
agreements, representations, warranties and other statements of the Company, its officers and the
several Initial Purchasers set forth in or made pursuant to this Agreement will remain in full
force and effect, regardless of any investigation made by or on behalf of any Initial Purchaser,
the Company or any partner, officer or director or any controlling person of such Initial
Purchaser or the Company, as the case may be, and will survive delivery of and payment for the
Notes sold hereunder and any termination of this Agreement.

     SECTION 12. Notices. All communications hereunder shall be in writing and shall be
mailed, hand delivered, couriered or facsimiled and confirmed to the parties hereto as
follows:

     If to the Initial Purchasers:

Merrill Lynch, Pierce, Fenner & Smith Incorporated

One Bryant Park

New York, New York 10036

Facsimile: (646) 855-5958

Attention: Legal Department

Goldman, Sachs & Co.

200 West Street

New York, New York, 10282

Attention: Registration Department

     with a copy to:

Gibson, Dunn & Crutcher LLP

333 South Grand Avenue

Los Angeles, California 90071

Facsimile: (213) 229-6360

Attention: Karen E. Bertero

     If to the Company:

The Greenbrier Companies, Inc.

One Centerpointe Drive, Suite 200

Lake Oswego, Oregon 97035

Facsimile: (503) 684-7553

Attention: Martin R. Baker

     with a copy to:

Paul, Hastings, Janofsky, & Walker LLP

695 Town Center Drive, 17th Floor

Costa Mesa, California 92629

Facsimile: (714) 979-1921

Attention: Stephen D. Cooke

29

 

and

Tonkon Torp LLP

888 SW 5th Avenue

Portland, Oregon 97201

Facsimile: (503) 274-8779

Attention: Sherrill A. Corbett.

     Any party hereto may change the address or facsimile number for receipt of communications
by giving written notice to the others.

     In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)), the Initial Purchasers are required to obtain, verify and
record information that identifies their clients, including the Company, which information may
include the name and address of their clients, as well as other information that will allow the
Initial Purchasers to properly identify their clients.

     SECTION 13. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto, and to the benefit of the indemnified parties referred to in Sections 8 and 9
hereof, and in each case their respective successors, and no other person will have any right or
obligation hereunder. The term “successors” shall not include any Subsequent Purchaser or other
purchaser of the Notes as such from any of the Initial Purchasers merely by reason of such
purchase.

     SECTION 14. [intentionally omitted].

     SECTION 15. Partial Unenforceability. The invalidity or unenforceability of any section,
paragraph or provision of this Agreement shall not affect the validity or enforceability of any
other section, paragraph or provision hereof. If any section, paragraph or provision of this
Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to
be made such minor changes (and only such minor changes) as are necessary to make it valid and
enforceable.

     SECTION 16. Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE WITHOUT REGARD TO CONFLICTS OF LAW
PRINCIPLES THEREOF.

     Any legal suit, action or proceeding arising out of or based upon this Agreement or the
transactions contemplated hereby (“Related Proceedings”) may be instituted in the federal courts
of the United States of America located in the City and County of New York or the courts of the
State of New York in each case located in the City and County of New York (collectively, the
“Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for
suits, actions, or proceedings instituted in regard to the enforcement of a judgment of any
Specified Court in a Related Proceeding, as to which such jurisdiction is non-exclusive) of the

30

 

Specified Courts in any Related Proceeding. Service of any process, summons, notice or document
by mail to such party’s address set forth above shall be effective service of process for any
Related Proceeding brought in any Specified Court. The parties irrevocably and unconditionally
waive any objection to the laying of venue of any Specified Proceeding in the Specified Courts
and irrevocably and unconditionally waive and agree not to plead or claim in any Specified Court
that any Related Proceeding brought in any Specified Court has been brought in an inconvenient
forum.

     SECTION 17. Default of One or More of the Several Initial Purchasers. If any one or more of
the several Initial Purchasers shall fail or refuse to purchase Notes that it or they have agreed
to purchase hereunder on the Closing Date or an Option Closing Date, and the aggregate number of
Notes which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to
purchase does not exceed 10% of the aggregate number of the Notes to be purchased on such date, the
other Initial Purchasers shall be obligated, severally, in the proportions that the number of Notes
set forth opposite their respective names on Schedule A bears to the aggregate number of
Notes set forth opposite the names of all such non-defaulting Initial Purchasers, or in such other
proportions as may be specified by the Initial Purchasers with the consent of the non-defaulting
Initial Purchasers, to purchase the Notes which such defaulting Initial Purchaser or Initial
Purchasers agreed but failed or refused to purchase on the Closing Date or such Option Closing
Date. If any one or more of the Initial Purchasers shall fail or refuse to purchase Notes and the
aggregate number of Notes with respect to which such default occurs exceeds 10% of the aggregate
number of Notes to be purchased on the Closing Date or an Option Closing Date, and arrangements
satisfactory to the Initial Purchasers and the Company for the purchase of such Notes are not made
within 48 hours after such default, this Agreement shall terminate without liability of any party
to any other party except that the provisions of Sections 4, 6, 8 and 9 hereof shall at all times
be effective and shall survive such termination. In the event of any such failure or refusal which
does not result in a termination of this Agreement, either the Initial Purchasers or the Company
shall have the right to postpone the Closing Date or the Option Closing Date, as the case may be,
but in no event for longer than seven days in order that the required changes, if any, to the Final
Offering Memorandum or any other documents or arrangements may be effected.

     As used in this Agreement, the term “Initial Purchaser” shall be deemed to include any
person substituted for a defaulting Initial Purchaser under this Section 17. Any action taken
under this Section 17 shall not relieve any defaulting Initial Purchaser from liability in
respect of any default of such Initial Purchaser under this Agreement.

     SECTION 18. No Advisory or Fiduciary Responsibility. The Company acknowledges and agrees
that: (i) the purchase and sale of the Notes pursuant to this Agreement, including the
determination of the offering price of the Notes and any related discounts and commissions, is an
arm’s-length commercial transaction between the Company, on the one hand, and the several Initial
Purchasers, on the other hand, and the Company is capable of evaluating and understanding and
understands and accepts the terms, risks and conditions of the transactions contemplated by this
Agreement; (ii) in connection with each transaction contemplated hereby and the process leading to
such transaction each Initial Purchaser is and has been acting solely as a principal and is not
the agent or fiduciary of the Company or its affiliates, stockholders, creditors or employees or
any other party; (iii) no Initial Purchaser has assumed or will assume an advisory or fiduciary

31

 

responsibility in favor of the Company with respect to any of the transactions contemplated hereby
or the process leading thereto (irrespective of whether such Initial Purchaser has advised or is
currently advising the Company on other matters) or any other obligation to the Company except the
obligations expressly set forth in this Agreement; (iv) the several Initial Purchasers and their
respective affiliates may be engaged in a broad range of transactions that involve interests that
differ from those of the Company, and the several Initial Purchasers have no obligation to disclose
any of such interests by virtue of any fiduciary or advisory relationship; and (v) the Initial
Purchasers have not provided any legal, accounting, regulatory or tax advice with respect to the
offering contemplated hereby, and the Company has consulted its own legal, accounting, regulatory
and tax advisors to the extent it deemed appropriate.

     This Agreement supersedes all prior agreements and understandings (whether written or oral)
between the Company and the several Initial Purchasers, or either of them, with respect to the
subject matter hereof. The Company hereby waives and releases, to the fullest extent permitted by
law, any claims that the Company may have against the several Initial Purchasers with respect to
any breach or alleged breach of fiduciary duty with respect to the transactions contemplated
hereby and the process leading to such transactions.

     SECTION 19. General Provisions. This Agreement constitutes the entire agreement of the
parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral
agreements, understandings and negotiations with respect to the subject matter hereof. This
Agreement may be executed in two or more counterparts, each one of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same instrument.
Delivery of an executed counterpart of a signature page to this Agreement by telecopier,
facsimile or other electronic transmission (i.e., a “pdf” or “tif”) shall be effective as delivery
of a manually executed counterpart thereof. This Agreement may not be amended or modified unless
in writing by all of the parties hereto, and no condition herein (express or implied) may be
waived unless waived in writing by each party whom the condition is meant to benefit. The section
headings herein are for the convenience of the parties only and shall not affect the construction
or interpretation of this Agreement.

[The remainder of this page is intentionally left blank]

32

 

     If the foregoing is in accordance with your understanding of our agreement, kindly sign and return to the company
the enclosed copies hereof, whereupon this instrument, along with all counterparts hereof, shall become a binding
agreement in accordance with its terms.

Very truly yours,

	 	 	 	 	 
	 	THE COMPANY 

THE GREENBRIER COMPANIES, INC.

 	 
	 	By:  	/s/ Mark J. Rittenbaum
 	 
	 	 	Name:  	Mark J. Rittenbaum 	 
	 	 	Title:  	Executive Vice President 	 
	 

[Signature Page to Purchase Agreement]

 

 

     The foregoing Purchase Agreement is hereby confirmed and accepted by the Initial Purchasers as of the date first
above written.

THE INITIAL PURCHASERS

	 	 	 	 	 
	Merrill Lynch, Pierce, Fenner & Smith Incorporated

 	 	 
	By:  	/s/
Clemence Rasigni
 	 	 
	 	Name:  	Clemence Rasigni 	 	 
	 	Title:  	Managing Director 	 	 
	 
	Goldman, Sachs & Co.

 	 	 
	By:  	
/s/ Goldman, Sachs & Co. 	 	 
	 	Goldman, Sachs & Co. 	 	 
	 	 	 	 

[Signature Page to Purchase Agreement]

 

 

EXHIBIT B

FORM OF LOCK-UP AGREEMENT

March [•], 2011

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

One Bryant Park

New York, New York 10036

GOLDMAN, SACHS & CO.

200 West Street

New York, New York 10282

Re: Proposed Offering by The Greenbrier Companies, Inc.

Dear Sirs:

     The undersigned, a shareholder and an officer and/or director of The Greenbrier Companies,
Inc., an Oregon corporation (the “Company”), understands that Merrill Lynch, Pierce, Fenner &
Smith Incorporated (“Merrill Lynch”) and Goldman, Sachs & Co. (“Goldman Sachs” and, together with
Merrill Lynch, collectively the “Initial Purchasers”), propose to enter into a Purchase Agreement
(the “Purchase Agreement”) with the Company providing for (A) the offering (the “Offering”) and
sale of the Company’s Senior Convertible Notes due 2018, (B) an option to the Initial Purchasers
to purchase up to an additional $15,000,000 principal amount of such notes. In recognition of the
benefit that such an offering will confer upon the undersigned as a shareholder and an officer
and/or director of the Company, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the undersigned agrees, subject to the terms and
conditions set forth herein, with each Initial Purchaser that, during a period of 90 days from
the date of the Purchase Agreement (the “Lock-Up Period”), the undersigned will not, without the
prior written consent of Merrill Lynch , (i) offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant any option, right
or warrant for the sale of, or otherwise dispose of or transfer any shares of the Company’s Common
Stock or any securities convertible into or exchangeable or exercisable for Common Stock, whether
now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or
hereafter acquires the power of disposition (collectively, the “Lock-Up Notes”), or exercise any
right with respect to the registration of any of the Lock-Up Notes, or file or cause to be filed
any registration statement in connection therewith, under the Securities Act of 1933, as amended,
or (ii) enter into any swap or any other agreement or any transaction that transfers, in whole or
in part, directly or indirectly, the economic consequence of ownership of the Lock-Up Notes,
whether any such swap or transaction is to be settled by delivery of Common Stock or other
securities, in cash or otherwise.

     Notwithstanding the foregoing, and subject to the conditions below, the undersigned may
transfer the Lock-Up Notes without the prior written consent of Merrill Lynch, provided that (1)

Form of Lock-Up Agreement-1

 

 

Merrill Lynch receives a signed lock-up agreement for the balance of the Lock-Up Period from each
donee, trustee, distributee, or transferee, as the case may be, (2) any such transfer shall not
involve a disposition for value, (3) such transfers are not required to be reported with the
Securities and Exchange Commission on Form 4 in accordance with Section 16 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and (4) the undersigned does not
otherwise voluntarily effect any public filing or report regarding such transfers:

	 	(i)	 	as a bona fide gift or gifts; or

	 	(ii)	 	by testate or intestate succession; or

	 	(iii)	 	to any trust for the direct or indirect
benefit of the undersigned or the
immediate family of the undersigned (for
purposes of this lock-up agreement,
“immediate family” shall mean any
relationship by blood, marriage or
adoption, not more remote than first
cousin); or

	 	(iv)	 	as a distribution to members, limited partners
or stockholders of the undersigned; or

	 	(v)	 	if the undersigned holds the Lock-Up Notes
as a trustee of a trust, to such trust’s
beneficiaries; or

	 	(vi)	 	to the undersigned’s direct or indirect
affiliates or subsidiaries or to any
investment fund or other entity controlled or
managed by the undersigned.

     Furthermore, during the Lock-Up Period the undersigned may sell shares of the
Company’s common stock, without par value (the “Common Stock”) purchased by the undersigned
on the open market following the Offering if and only if (i) such sales are not required to
be reported in any filing under the Exchange Act and (ii) the undersigned does not
otherwise voluntarily effect any public filing or report regarding such sales pursuant to
the Exchange Act.

     Notwithstanding anything herein to the contrary, the foregoing shall not be deemed to
restrict the undersigned with respect to (1) the exercise (including any cashless exercise
involving the transfer of securities between the undersigned and the Company) of options or
warrants issued by the Company to the undersigned to acquire Lock-Up Notes; provided that any
Common Stock or any securities convertible into or exchangeable or exercisable for Common Stock
issuable upon exercise or settlement of such options and warrants shall be subject to the
provisions of this letter, (2) the withholding of Lock-Up Notes by the Company in connection with
the vesting of restricted stock held by the undersigned as of the date of the Purchase Agreement,
(3) transactions which occur in connection with, or after, the termination of the undersigned’s
employment by, or service to, the Company or any of its subsidiaries and which disposition or
sale of such Lock-Up Notes does not require a filing under Section 16 of the Exchange Act, (4)
the entering into any written trading plan or agreement (“Rule 10b5-1 Plan”) with a broker
designed to comply with Rule 10b5-1(c)(1) promulgated pursuant to the Exchange Act, provided that
any such Rule 10b5-1 Plan shall specify that any sales of Lock-Up Notes sold for the undersigned’s
benefit pursuant to the Rule 10b5-1 Plan shall not occur prior to the expiration of the Lock-Up
Period and provided further that such action does not trigger any public filing requirement and

Form of Lock-Up Agreement-2

 

 

the undersigned does not make any such public filing, or (5) the disposition or sale of any
Lock-Up Notes pursuant to any existing contract, instruction or plan entered into pursuant to
Rule 10b5-1 Plan in existence as of the date hereof.

     The undersigned also agrees and consents to the entry of stop transfer instructions
with the Company’s transfer agent and registrar against the transfer of the Lock-Up Notes
except in compliance with the foregoing restrictions.

     This letter agreement shall automatically terminate and the undersigned shall be released from
his or her or its obligations hereunder if any of the following occurs: (i) the Company notifies
you in writing that it does not intend to proceed with the Offering of the Notes; or (ii) for any
reason after the execution of the Purchase Agreement, the Purchase Agreement shall be terminated
(other than the provisions thereof that survive termination) prior to the consummation of the
purchase of the Notes in accordance with the terms of the Purchase Agreement.

Form of Lock-Up Agreement-3exv10w1

Exhibit 10.1

Execution Version

CREDIT AGREEMENT

dated as of March 31, 2011

among

Key Energy Services, Inc.,

as Borrower,

JPMorgan Chase Bank, N.A., 

as Administrative Agent,

Bank of America, N.A.,

as Syndication Agent,

Capital One, N.A.

and

Wells Fargo Bank, N.A.,

as Co-Documentation Agents,

and

The Lenders Party Hereto

	 	 	 

	J.P. Morgan Securities LLC

	 	Merrill Lynch, Pierce, Fenner
	 

	 	& Smith Incorporated

Joint Lead Arrangers and Bookrunners

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
 Definitions and Accounting Matters
	 
	Section 1.01 Certain Defined Terms
	 	 	1	 
	Section 1.02 Types of Loans and Borrowings
	 	 	23	 
	Section 1.03 Terms Generally; Rules of Construction
	 	 	23	 
	Section 1.04 Accounting Terms and Determinations; GAAP; Currency Translations
	 	 	24	 
	Section 1.05 Currency Equivalents Generally
	 	 	24	 
	 
	ARTICLE II
 The Credits
	 
	Section 2.01 Commitments
	 	 	24	 
	Section 2.02 Loans and Borrowings
	 	 	24	 
	Section 2.03 Requests for Revolving Loan Borrowings
	 	 	26	 
	Section 2.04 Interest Elections
	 	 	26	 
	Section 2.05 Funding of Revolving Loan Borrowings
	 	 	28	 
	Section 2.06 Termination and Reduction of Commitments
	 	 	29	 
	Section 2.07 Letters of Credit
	 	 	31	 
	Section 2.08 Swing Line Loans
	 	 	35	 
	 
	ARTICLE III
 Payments of Principal and Interest; Prepayments; Fees
	 
	Section 3.01 Repayment of Loans
	 	 	37	 
	Section 3.02 Interest
	 	 	37	 
	Section 3.03 Alternate Rate of Interest
	 	 	38	 
	Section 3.04 Prepayments
	 	 	38	 
	Section 3.05 Fees
	 	 	39	 
	 
	ARTICLE IV
 Payments; Pro Rata Treatment; Sharing of Set-offs
	 
	Section 4.01 Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	41	 
	Section 4.02 Payments by the Borrower; Presumptions by the Administrative Agent
	 	 	42	 
	Section 4.03 Certain Deductions by the Administrative Agent
	 	 	42	 
	Section 4.04 Defaulting Lenders
	 	 	42	 
	 
	ARTICLE V
 Increased Costs; Break Funding Payments; Taxes; Illegality
	 
	Section 5.01 Increased Costs
	 	 	45	 
	Section 5.02 Break Funding Payments
	 	 	46	 
	Section 5.03 Taxes
	 	 	46	 
	Section 5.04 Mitigation Obligations; Replacement of Lenders
	 	 	48	 
	Section 5.05 Illegality
	 	 	49	 

i

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE VI
 Conditions Precedent
	 
	Section 6.01 Effective Date
	 	 	49	 
	Section 6.02 Each Credit Event
	 	 	51	 
	 
	ARTICLE VII
 Representations and Warranties
	 
	Section 7.01 Organization; Powers
	 	 	52	 
	Section 7.02 Authority; Enforceability
	 	 	53	 
	Section 7.03 Approvals; No Conflicts
	 	 	53	 
	Section 7.04 Financial Condition; No Material Adverse Change
	 	 	53	 
	Section 7.05 Litigation
	 	 	54	 
	Section 7.06 Environmental Matters
	 	 	54	 
	Section 7.07 Compliance with the Laws and Agreements; No Defaults
	 	 	55	 
	Section 7.08 Investment Company Act
	 	 	55	 
	Section 7.09 Taxes
	 	 	55	 
	Section 7.10 ERISA
	 	 	56	 
	Section 7.11 Disclosure; No Material Misstatements
	 	 	56	 
	Section 7.12 Insurance
	 	 	57	 
	Section 7.13 Restriction on Liens
	 	 	57	 
	Section 7.14 Subsidiaries
	 	 	57	 
	Section 7.15 Location of Business and Offices
	 	 	57	 
	Section 7.16 Properties; Titles, Intellectual Property; Licenses; Etc
	 	 	57	 
	Section 7.17 Maintenance of Properties
	 	 	58	 
	Section 7.18 Hedging Agreements
	 	 	58	 
	Section 7.19 Security Instruments
	 	 	58	 
	Section 7.20 Use of Loans and Letters of Credit
	 	 	59	 
	Section 7.21 Solvency
	 	 	59	 
	Section 7.22 Common Enterprise
	 	 	59	 
	Section 7.23 Broker’s Fees
	 	 	59	 
	Section 7.24 Employee Matters
	 	 	59	 
	Section 7.25 Anti-Terrorism Laws
	 	 	60	 
	 
	ARTICLE VIII
 Affirmative Covenants
	 
	Section 8.01 Financial Statements; Other Information
	 	 	61	 
	Section 8.02 Notices of Material Events
	 	 	63	 
	Section 8.03 Existence; Conduct of Business
	 	 	63	 
	Section 8.04 Payment of Obligations
	 	 	64	 
	Section 8.05 Performance of Obligations under Loan Documents
	 	 	64	 
	Section 8.06 Operation and Maintenance of Properties
	 	 	64	 
	Section 8.07 Insurance
	 	 	64	 
	Section 8.08 Books and Records; Inspection Rights
	 	 	65	 
	Section 8.09 Compliance with Laws
	 	 	65	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	Section 8.10 Compliance with Material Leaseholds and Agreements
	 	 	65	 
	Section 8.11 Environmental Matters
	 	 	65	 
	Section 8.12 Further Assurances
	 	 	66	 
	Section 8.13 Additional Collateral; Additional Guarantors
	 	 	66	 
	Section 8.14 ERISA Compliance
	 	 	67	 
	Section 8.15 Mortgaged Properties
	 	 	68	 
	Section 8.16 Compliance with Terms of Leaseholds
	 	 	69	 
	 
	ARTICLE IX
 Negative Covenants
	 
	Section 9.01 Financial Covenants
	 	 	69	 
	Section 9.02 Indebtedness
	 	 	70	 
	Section 9.03 Liens
	 	 	71	 
	Section 9.04 Restricted Payments
	 	 	72	 
	Section 9.05 Investments, Loans and Advances
	 	 	73	 
	Section 9.06 Nature of Business
	 	 	75	 
	Section 9.07 Proceeds of Loans
	 	 	75	 
	Section 9.08 Sale or Discount of Receivables
	 	 	76	 
	Section 9.09 Mergers, Etc
	 	 	76	 
	Section 9.10 Sale of Properties
	 	 	76	 
	Section 9.11 Transactions with Affiliates
	 	 	78	 
	Section 9.12 Subsidiaries
	 	 	78	 
	Section 9.13 Limitation on Issuance of Equity Interests
	 	 	78	 
	Section 9.14 Negative Pledge Agreements; Dividend Restrictions
	 	 	78	 
	Section 9.15 Hedging Agreements
	 	 	78	 
	Section 9.16 Sale and Leaseback
	 	 	78	 
	Section 9.17 Amendments to Organization Documents or Fiscal Year End; Prepayments of Senior Notes
	 	 	79	 
	Section 9.18 Limitation on Capital Expenditures
	 	 	79	 
	Section 9.19 Anti-Terrorism Law; Anti-Money Laundering
	 	 	79	 
	Section 9.20 Embargoed Person
	 	 	80	 
	 
	ARTICLE X
 Events of Default; Remedies
	 
	Section 10.01 Events of Default
	 	 	80	 
	Section 10.02 Remedies
	 	 	82	 
	 
	ARTICLE XI
 The Agents
	 
	Section 11.01 Appointment; Powers
	 	 	83	 
	Section 11.02 Duties and Obligations of Administrative Agent
	 	 	83	 
	Section 11.03 Action by Administrative Agent
	 	 	84	 
	Section 11.04 Reliance by Administrative Agent
	 	 	85	 
	Section 11.05 Subagents
	 	 	85	 
	Section 11.06 Resignation of Administrative Agent
	 	 	85	 
	Section 11.07 Agents as Lenders
	 	 	86	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	Section 11.08 No Reliance
	 	 	86	 
	Section 11.09 Administrative Agent May File Proofs of Claim
	 	 	86	 
	Section 11.10 Authority of Administrative Agent to Release Collateral and Liens
	 	 	87	 
	Section 11.11 The Arrangers, the Syndication Agent and the Co-Documentation Agents
	 	 	87	 
	 
	ARTICLE XII
 Miscellaneous
	 
	Section 12.01 Notices
	 	 	87	 
	Section 12.02 Waivers; Amendments
	 	 	89	 
	Section 12.03 Expenses, Indemnity; Damage Waiver
	 	 	90	 
	Section 12.04 Assignments and Participations
	 	 	93	 
	Section 12.05 Survival; Revival; Reinstatement
	 	 	96	 
	Section 12.06 Counterparts; Integration; Effectiveness; Electronic Execution
	 	 	97	 
	Section 12.07 Severability
	 	 	97	 
	Section 12.08 Right of Setoff
	 	 	98	 
	Section 12.09 GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS
	 	 	98	 
	Section 12.10 Headings
	 	 	99	 
	Section 12.11 Confidentiality
	 	 	99	 
	Section 12.12 Interest Rate Limitation
	 	 	100	 
	Section 12.13 EXCULPATION PROVISIONS
	 	 	101	 
	Section 12.14 Collateral Matters; Hedging Agreements; Treasury Management Agreements
	 	 	101	 
	Section 12.15 No Third Party Beneficiaries
	 	 	102	 
	Section 12.16 USA Patriot Act Notice
	 	 	102	 

iv

 

ANNEXES, EXHIBITS AND SCHEDULES

	 	 	 

	Annex I

	 	Commitments
	 
	Exhibit A

	 	Form of Note
	Exhibit B

	 	Form of Borrowing Request
	Exhibit C

	 	Form of Interest Election Request
	Exhibit D

	 	Form of Certificate of Financial Officer
	Exhibit E

	 	Form of Guarantee and Collateral Agreement
	Exhibit F

	 	Form of Assignment and Assumption
	Exhibit G

	 	Form of Swing Line Loan Borrowing Request
	Exhibit H

	 	Commitment Increase Certificate
	Exhibit I

	 	Additional Lender Certificate
	 
	Schedule 1.01(a)

	 	Security Instruments
	Schedule 1.01(b)

	 	Material Subsidiaries
	Schedule 1.01(c)

	 	Excluded Subsidiaries
	Schedule 7.14

	 	Subsidiaries/Immaterial Subsidiaries
	Schedule 7.18

	 	Hedging Agreements
	Schedule 7.19

	 	Jurisdictions for Security Instrument Filings
	Schedule 8.16

	 	List of Mortgaged Facilities
	Schedule 9.02

	 	Existing Letters of Credit
	Schedule 9.05

	 	Existing Investments
	Schedule 9.10

	 	Permitted Dispositions

v

 

     THIS CREDIT AGREEMENT dated as of March 31, 2011, is among: Key Energy Services, Inc., a
Maryland corporation (the “Borrower”); each of the Lenders from time to time party hereto;
JPMorgan Chase Bank, N.A. (in its individual capacity, “JPMorgan”), as administrative agent
for the Lenders (in such capacity, together with its successors in such capacity, the
“Administrative Agent”); Bank of America, N.A., as syndication agent for the Lenders (in
such capacity, together with its successors in such capacity, the “Syndication Agent”); and
Capital One, N.A. and Wells Fargo Bank, N.A., as co-documentation agents for the Lenders (each in
such capacity, together with its successors in such capacity, a “Co-Documentation Agent”
and, collectively, the “Co-Documentation Agents”).

R E C I T A L S

     A. The Borrower has requested that the Lenders provide certain loans to and extensions of
credit on behalf of the Borrower.

     B. The Lenders have agreed to make such loans and extensions of credit subject to the terms
and conditions of this Agreement.

     C. In consideration of the mutual covenants and agreements herein contained and of the loans,
extensions of credit and commitments hereinafter referred to, the parties hereto agree as follows:

ARTICLE I

Definitions and Accounting Matters

     Section 1.01 Certain Defined Terms. As used in this Agreement, the following terms
have the meanings specified below:

     “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, is bearing interest at a rate determined by reference to
the Alternate Base Rate.

     “Acquisition” means the acquisition, directly or indirectly, by any Person of (a) a
majority of the Equity Interests of another Person, (b) all or substantially all of the assets of
another Person or (c) all or substantially all of a line of business or division of another
Person, in each case (i) whether or not involving a merger or a consolidation with such other
Person and (ii) whether in one transaction or a series of related transactions.

     “Acquisition Consideration” means the consideration paid or incurred by the Borrower
or any of its Subsidiaries for an Acquisition, including the sum of (without duplication): (a) the
fair market value of any cash, assets, Equity Interests or services given, plus (b) the amount of
any Indebtedness assumed, incurred or guaranteed (to the extent not otherwise included) plus (c)
the amount of transaction related contractual payment such as amounts payable under noncompete,
consulting, earn-outs, and similar agreements, in each case, paid or incurred in connection with
such Acquisition by the Borrower or any of its Subsidiaries but only to the extent that the amount
to be paid under any such agreement exceeds the value of services rendered thereunder, as
determined in good faith by the Borrower.

1

 

     “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal
to the LIBO Rate for such Interest Period multiplied by the Statutory Reserve Rate.

     “Administrative Agent” has the meaning assigned to such term in the introductory
paragraph hereto.

     “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

     “Affected Loans” has the meaning assigned to such term in Section 5.05.

     “Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

     “Agents” means, collectively, the Administrative Agent, the Syndication Agent and the
Co-Documentation Agents; and “Agent” means either the Administrative Agent, the Syndication
Agent or any Co-Documentation Agent, as the context requires.

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

     “Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of
(a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such
day plus 1/2 of 1.0% and (c) the Adjusted LIBO Rate for a one month Interest Period on such day (or
if such day is not a Business Day, the immediately preceding Business Day) plus 1.0%, provided
that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the rate
appearing on Reuters Screen LIBOR01 Page (or on any successor or substitute page of such service,
or any successor to or substitute for such service, providing rate quotations comparable to those
currently provided on such page of such service, as determined by the Administrative Agent from
time to time for purposes of providing quotations of interest rates applicable to U.S. Dollar
deposits in the London interbank market) at approximately 11:00 a.m., London time, on such day (or
the immediately preceding Business Days if such day is not a day on which banks are open for
dealings in U.S. Dollar deposits in the London interbank market). Any change in the Alternate Base
Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate
shall be effective from and including the effective date of such change in the Prime Rate, the
Federal Funds Effective Rate or the Adjusted LIBO Rate, respectively.

     “Anti-Terrorism Law” has the meaning assigned to such term in Section 7.25(a).

     “Applicable Margin” means, for any day, in respect of any ABR Loan or Eurodollar Loan,
as the case may be, the rate per annum set forth in the Consolidated Total Leverage Ratio Grid
below based on the Consolidated Total Leverage Ratio then in effect.

2

 

Consolidated Total Leverage Ratio Grid

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	Consolidated Total

Leverage Ratio

	 	< 1.5x
	 	≥ 1.5x< 2.5x
	 	≥ 2.5x < 3.5x
	 	 	≥ 3.5x	 
	Eurodollar Loans

	 	 	2.25	%	 	 	2.50	%	 	 	2.75	%	 	 	3.00	%
	ABR Loans

	 	 	1.25	%	 	 	1.50	%	 	 	1.75	%	 	 	2.00	%

     For purposes of the foregoing, (a) the Applicable Margin shall be determined as of the end of
each fiscal quarter of the Borrower based upon the Borrower’s annual or quarterly consolidated
financial statements delivered pursuant to Section 8.01(a) and (b) each change in the
Applicable Margin resulting from a change in the Consolidated Total Leverage Ratio shall be
effective during the period commencing on and including the date of delivery to the Administrative
Agent of such consolidated financial statements indicating such change and ending on the date
immediately preceding the effective date of the next such change, provided that the Consolidated
Total Leverage Ratio shall be deemed to be the highest level at the option of the Administrative
Agent or at the request of the Majority Lenders if the Borrower fails to deliver the annual or
quarterly consolidated financial statements required to be delivered by it pursuant to Section
8.01(a), during the period from the expiration of the time for delivery thereof until such
consolidated financial statements are delivered.

     Notwithstanding the foregoing, for the period commencing on the Effective Date and ending six
months thereafter, the Applicable Margin for Eurodollar Loans shall be 2.50% and for ABR Loans
shall be 1.50%.

     “Applicable Percentage” means, with respect to any Lender, the percentage of the
aggregate Commitments represented by such Lender’s Commitment (or, if the Commitments have
terminated or expired, the percentage of the aggregate Revolving Credit Exposure represented by
such Lender’s Revolving Credit Exposure at such time); provided that in the case of Section
4.04 when a Defaulting Lender shall exist, “Applicable Percentage” shall mean the
percentage of the aggregate Commitments (disregarding any Defaulting Lender’s Commitments)
represented by such Lender’s Commitment (or, if the Commitments have terminated or expired, the
Applicable Percentage shall be determined based upon the Commitments most recently in effect,
giving effect to any assignments (and disregarding any Defaulting Lender’s unfunded Commitment
based on the Commitments most recently in effect) at the time of determination).

     “Approved Counterparty” means (a) any Lender or any Affiliate of a Lender and (b) any
other Person whose (or whose credit support provider’s) long term senior unsecured debt rating is
A-/A3 by S&P or Moody’s (or their equivalent) or higher.

     “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

     “Arrangers” means J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith
Incorporated in their capacities as the joint lead arrangers and bookrunners hereunder.

3

 

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section
12.04(a)), and accepted by the Administrative Agent, in substantially the form of Exhibit
F or any other form approved by the Administrative Agent.

     “Availability Period” means the period from and including the Effective Date to but
excluding the Termination Date.

     “Board” means the Board of Governors of the Federal Reserve System of the United
States of America or any successor Governmental Authority.

     “Borrower” has the meaning assigned to such term in the introductory paragraph hereto.

     “Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued
on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in
effect or (b) a Swing Line Loan.

     “Borrowing Request” means a request by the Borrower for a Borrowing in accordance with
Section 2.03.

     “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in Houston, Texas or New York, New York are authorized or required by law to
remain closed; and if such day relates to a Borrowing or continuation of, a payment or prepayment
of principal of or interest on, or a conversion of or into, or the Interest Period for, a
Eurodollar Loan or a notice by the Borrower with respect to any such Borrowing or continuation,
payment, prepayment, conversion or Interest Period, any day which is also a day on which banks are
open for dealings in U.S. Dollar deposits in the London interbank market.

     “Capital Expenditures” means, in respect of any Person, for any period, any
expenditure in respect of the purchase or other acquisition of any fixed or capital asset
(excluding normal replacements and maintenance which are properly charged to current operations);
provided that Capital Expenditures shall not include (a) expenditures for Permitted Acquisitions or
(b) expenditures by any Person acquired in a Permitted Acquisition prior to the date of such
Acquisition.

     “Capital Leases” means, in respect of any Person, all leases which shall have been, or
should have been, in accordance with GAAP, recorded as capital leases on the balance sheet of the
Person liable (whether contingent or otherwise) for the payment of rent thereunder.

     “Central Time” means Central Time or central daylight savings time, as applicable on
the relevant date.

     “Change in Control” means an event or series of events by which: (a) any Person or
group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC
thereunder as in effect on the date hereof, but excluding any employee benefit plan of such person
or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other
fiduciary or administrator of any such plan) becomes the “beneficial owner” (within the meaning of
the Securities Exchange Act of 1934 and the rules of the SEC thereunder, except that a Person

4

 

or group shall be deemed to have “beneficial ownership” of all securities that such person or
group has the right to acquire, whether such right is exercisable immediately or only after the
passage of time (such right, an “option right”)), directly or indirectly, of Equity
Interests representing more than 50% of the aggregate ordinary voting power represented by the
issued and outstanding Equity Interests of the Borrower (provided that if a Person or group
acquires ownership of more than 50% of the aggregate ordinary voting power solely as the result of
the repurchase of issued and outstanding Equity Interests by the Borrower, such control shall not
be a “Change of Control”); (b) during any period of 24 months, a majority of the members
of the board of directors or other equivalent governing body of the Borrower cease to be composed
of individuals (i) who were members of that board or equivalent governing body on the first day of
such period, (ii) whose election or nomination to that board or equivalent governing body was
approved by individuals referred to in clause (i) above constituting at the time of such election
or nomination at least a majority of that board or equivalent governing body or (iii) whose
election or nomination to that board or other equivalent governing body was approved by individuals
referred to in clauses (i) and (ii) above constituting at the time of such election or nomination
at least a majority of the seats (other than vacant seats) on the board of directors of the
Borrower (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial
nomination for, or assumption of office as, a member of that board or equivalent governing body
occurs as a result of an actual or threatened solicitation of proxies or consents for the election
or removal of one or more directors by any person or group other than a solicitation for the
election of one or more directors by or on behalf of the board of directors); (c) any Person or two
or more Persons acting in concert shall have acquired by contract or otherwise, or shall have
entered into a contract or arrangement that, upon consummation thereof, will result in its or their
acquisition of the power to exercise, directly or indirectly, a controlling influence over the
management or policies of the Borrower, or control over the equity securities of the Borrower
entitled to vote for members of the board of directors or equivalent governing body of the Borrower
on a fully-diluted basis (and taking into account all such securities that such Person or Persons
have the right to acquire pursuant to any option right) representing 50% or more of the combined
voting power of such securities; or (d) a “change in control” or any comparable term under, and as
defined in, the Senior Notes Indenture shall have occurred.

     “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority, or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority; provided that
notwithstanding anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection
therewith shall be deemed to be a “Change in Law”, regardless of the date enacted, adopted or
issued.

     “Co-Documentation Agent” has the meaning assigned to such term in the introductory
paragraph hereto.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any
successor statute.

5

 

     “Collateral” means all Property of the Loan Parties upon which a Lien is purported to
be created under one or more Security Instruments.

     “Collateral Coverage Deficiency” means, as of the last day of any fiscal quarter, that
the Collateral Coverage Ratio as of such day is less than 2.0 to 1.0 solely as the result of the
incurrence by the Borrower of an impairment charge to or non-cash write down of the book value of
any Collateral in such fiscal quarter.

     “Collateral Coverage Ratio” means, as of the last day of any fiscal quarter, the ratio
of the aggregate book value of the Collateral to the amount of the total Commitments.

     “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Revolving Loans or Swing Line Loans and to acquire participations in Letters of Credit and Swing
Line Loans hereunder, expressed as an amount representing the maximum aggregate amount of such
Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a) modified from time to
time pursuant to Section 2.06 and (b) modified from time to time pursuant to assignments by
or to such Lender pursuant to Section 12.04(a). The initial amount of each Lender’s
Commitment is set forth on Annex I hereto or in the Assignment and Assumption pursuant to
which such Lender shall have assumed its Commitment, as applicable. The aggregate amount of the
Lenders’ Commitments on the Effective Date is $400,000,000.

     “Consolidated EBITDA” means, for any period of determination, the sum of (without
duplication, the following determined on a consolidated basis: (a) Consolidated Net Income during
such period plus (b) to the extent deducted from Consolidated Net Income in such period: (i) income
tax expense, (ii) franchise tax expense, (iii) Consolidated Interest Expense, (iv) amortization and
depreciation during such period, (v) all non-cash charges and adjustments and (vi) non-recurring
cash expenses related to any Permitted Acquisition; provided that if the Borrower or any Subsidiary
shall acquire or dispose of any Property in an aggregate amount of at least $1,000,000 during such
period, then Consolidated EBITDA shall be calculated, with calculation in form and substance
satisfactory to the Administrative Agent, after giving pro forma effect to such acquisition or
disposition, as if such acquisition or disposition had occurred on the first day of such period
(provided that the Administrative Agent is satisfied with the form and substance of the related
projections).

     “Consolidated Interest Coverage Ratio” means, as of the last day of any fiscal
quarter, the ratio of Consolidated EBITDA for the period of four-fiscal quarters then ending to
Consolidated Interest Expense for such period.

     “Consolidated Interest Expense” means, for any period, the sum (determined without
duplication) of the aggregate gross interest expense of the Borrower and the Consolidated
Subsidiaries for such period, including to the extent included in interest expense under GAAP: (a)
amortization of debt discount, (b) capitalized interest and (c) the portion of any payments or
accruals under Capital Leases allocable to interest expense, plus the portion of any payments or
accruals under Synthetic Leases allocable to interest expense whether or not the same constitutes
interest expense under GAAP.

6

 

     “Consolidated Net Income” means, for any period of determination, the aggregate of the
net income (or loss) of the Borrower and the Consolidated Subsidiaries after allowances for taxes
for such period determined on a consolidated basis in accordance with GAAP; provided that there
shall be excluded from such net income (to the extent otherwise included therein) the following:
(a) the net income of any Person in which the Borrower or any Consolidated Subsidiary has an
interest (which interest does not cause the net income of such other Person to be consolidated with
the net income of the Borrower and the Consolidated Subsidiaries in accordance with GAAP), except
to the extent of the amount of dividends or distributions actually paid in cash during such period
by such other Person to the Borrower or to a Consolidated Subsidiary, as the case may be; (b) the
net income (but not loss) during such period of any Consolidated Subsidiary to the extent that the
declaration or payment of dividends or similar distributions or transfers or loans by that
Consolidated Subsidiary is not at the time permitted by operation of the terms of its charter or
any agreement, instrument or Governmental Requirement applicable to such Consolidated Subsidiary or
is otherwise restricted or prohibited, in each case determined in accordance with GAAP; (c) any
non-cash gains or losses during such period, including any under FAS 123R or FAS 133 and (d) any
non-cash gains or losses attributable to writeups or writedowns of assets.

     “Consolidated Net Worth” means, as of any date of determination, for the Borrower and
its Subsidiaries on a consolidated basis, Shareholders’ Equity of the Borrower and its Subsidiaries
on that date.

     “Consolidated Subsidiaries” means each Subsidiary of the Borrower (whether now
existing or hereafter created or acquired) the financial statements of which shall be consolidated
with the financial statements of the Borrower in accordance with GAAP.

     “Consolidated Total Funded Indebtedness” means, at any date, without duplication, all
Indebtedness of the Borrower and its Consolidated Subsidiaries other than Indebtedness in respect
of accounts payable and accrued expenses, liabilities and obligations to pay the deferred purchase
price of Property or services which are not greater than ninety (90) days delinquent or which are
being contested in good faith by appropriate action and for which adequate reserves have been
maintained in accordance with GAAP.

     “Consolidated Total Leverage Ratio” means the ratio of Consolidated Total Funded
Indebtedness as of the last day of any fiscal quarter to Consolidated EBITDA for the four (4)
fiscal quarter period ending on such date.

     “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. For the purposes of this definition, and without
limiting the generality of the foregoing, any Person that owns directly or indirectly 30% or more
of the Equity Interests having ordinary voting power for the election of the directors or other
governing body of a Person (other than as a limited partner of such other Person) will be deemed to
“control” such other Person. “Controlling” and “Controlled” have meanings
correlative thereto.

     “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

7

 

     “Defaulting Lender” means any Lender, as determined by the Administrative Agent, that
has (a) failed to fund any portion of its Loans or participations in Letters of Credit or Swing
Line Loans within three (3) Business Days of the date required to be funded by it hereunder unless,
with respect to the Loans, the subject of a good faith dispute, (b) notified the Borrower, the
Administrative Agent, the Issuing Bank or any Lender in writing that it does not intend to comply
with any of its funding obligations under this Agreement or has made a public statement to the
effect that it does not intend to comply with its funding obligations under this Agreement unless
the reason such Lender is not complying with such obligation is due to a good faith dispute with
respect to such obligation, (c) otherwise failed to pay over to the Administrative Agent or any
other Lender any other amount required to be paid by it hereunder within three (3) Business Days of
the date when due, unless the subject of a good faith dispute, or (d) become the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian
appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval
of or acquiescence in any such proceeding or appointment or has a parent company that has become
the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee
or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent
to, approval of or acquiescence in any such proceeding or appointment.

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

     “Domestic Subsidiary” means any Subsidiary that is organized under the laws of the
United States of America or any state thereof or the District of Columbia.

     “Effective Date” means the date on which the conditions specified in Section
6.01 are satisfied (or waived in accordance with Section 12.02).

     “Embargoed Person” has the meaning assigned to such term in Section 9.20.

     “Environmental Laws” means any and all Governmental Requirements pertaining in any way
to health, safety, the environment, the preservation or reclamation of natural resources, or the
management, Release or threatened Release of any Hazardous Materials, in effect in any and all
jurisdictions in which the Borrower or any Subsidiary is conducting, or at any time has conducted,
business, or where any Property of the Borrower or any Subsidiary is located, including, the Oil
Pollution Act of 1990 (“OPA”), as amended, the Clean Air Act, as amended, the Comprehensive
Environmental, Response, Compensation, and Liability Act of 1980 (“CERCLA”), as amended,
the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of
1970, as amended, the Resource Conservation and Recovery Act of 1976 (“RCRA”), as amended,
the Safe Drinking Water Act, as amended, the

8

 

Toxic Substances Control Act, as amended, the Superfund Amendments and Reauthorization Act of
1986, as amended, the Hazardous Materials Transportation Law, as amended, and other environmental
conservation or protection Governmental Requirements.

     “Environmental Permit” means any permit, registration, license, notice, approval,
consent, exemption, variance, spill or response plan, or other authorization required under or
issued pursuant to applicable Environmental Laws.

     “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such Equity Interests.

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

     “ERISA Affiliate” means each trade or business (whether or not incorporated) which
together with the Borrower or a Subsidiary would be deemed to be a “single employer” within the
meaning of section 4001(b)(1) of ERISA or subsections (b), (c), (m) or (o) of section 414 of the
Code.

     “ERISA Event” means (a) a “Reportable Event” described in section 4043 of ERISA and
the regulations issued thereunder, (b) the withdrawal of the Borrower, a Subsidiary or any ERISA
Affiliate from a Plan during a plan year in which it was a “substantial employer” as defined in
section 4001(a)(2) of ERISA, (c) the filing of a notice of intent to terminate a Plan or the
treatment of a Plan amendment as a termination under section 4041 of ERISA, (d) the institution of
proceedings to terminate a Plan by the PBGC, (e) receipt of a notice of withdrawal liability
pursuant to section 4202 of ERISA or (f) any other event or condition which might constitute
grounds under section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Plan.

     “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

     “Event of Default” has the meaning assigned to such term in Section 10.01.

     “Excepted Liens” means: (a) Liens for Taxes, assessments or other governmental
charges or levies which are not delinquent or which are being contested in good faith by
appropriate action and for which adequate reserves have been maintained in accordance with GAAP;
(b) Liens in connection with workers’ compensation, unemployment insurance or other social
security, old age pension or public liability obligations which are not delinquent or which are
being contested in good faith by appropriate action and for which adequate reserves have been
maintained in accordance with GAAP; (c) landlord’s liens, maritime liens, liens granted under
storage contracts, operators’, vendors’, carriers’, warehousemen’s, repairmen’s, mechanics’,
suppliers’, workers’, materialmen’s, construction or other like Liens arising in the ordinary
course of business or incident to the operation and maintenance of Properties each of which is in
respect of obligations that are not delinquent or which are being contested in good

9

 

faith by appropriate action and for which adequate reserves have been maintained in accordance
with GAAP; (d) Liens arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of set-off or similar rights and remedies and burdening only deposit
accounts or other funds maintained with a creditor depository institution, provided that no such
deposit account is a dedicated cash collateral account or is subject to restrictions against access
by the depositor in excess of those set forth by regulations promulgated by the Board and no such
deposit account is intended by Borrower or any of its Subsidiaries to provide collateral to the
depository institution; (e) easements, zoning restrictions, servitudes, permits, conditions,
covenants, exceptions or reservations in any Property of the Borrower or any Subsidiary for the
purpose of roads, pipelines, transmission lines, transportation lines or distribution lines, or for
the joint or common use of real estate, rights of way, facilities and equipment, that do not secure
any monetary obligations and which in the aggregate do not materially impair the use of such
Property for the purposes of which such Property is held by the Borrower or any Subsidiary or
materially impair the value of such Property subject thereto; (f) Liens on cash or securities
pledged to secure performance of tenders, surety and appeal bonds, government contracts,
performance and return of money bonds, bids, trade contracts, leases, statutory obligations,
regulatory obligations and other obligations of a like nature incurred in the ordinary course of
business and (g) judgment and attachment Liens not giving rise to an Event of Default, provided
that any appropriate legal proceedings which may have been duly initiated for the review of such
judgment shall not have been finally terminated or the period within which such proceeding may be
initiated shall not have expired and no action to enforce such Lien has been commenced; provided,
further that Liens described in clauses (a) through (d), (f) and (g) shall remain “Excepted Liens”
only for so long as no action to enforce such Lien has been commenced and no intention to
subordinate the first priority Lien granted in favor of the Administrative Agent and the Lenders is
to be hereby implied or expressed by the permitted existence of such Excepted Liens.

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
the Borrower or any Guarantor hereunder or under any other Loan Document, (a) Taxes imposed on or
measured by its overall net income (however denominated), and franchise taxes imposed on it (in
lieu of net income Taxes), by the jurisdiction (or any political subdivision thereof) under the
laws of which such recipient is organized or in which its principal office is located or, in the
case of any Lender, in which its applicable lending office is located, (b) any branch profits taxes
imposed by the United States of America or any similar tax imposed by any other jurisdiction in
which the Borrower or any Guarantor is located, (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Borrower under Section 5.04(b)), any withholding tax
that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a
party to this Agreement (or designates a new lending office) or is attributable to such Foreign
Lender’s failure or inability (other than as a result of a Change in Law) to comply with
Section 5.03(d), except to the extent that such Foreign Lender (or its assignor, if any)
was entitled, at the time of designation of a new lending office (or assignment), to receive
additional amounts with respect to such withholding tax pursuant to Section 5.03(a) or
Section 5.03(b), and (d) any United States withholding Tax that is imposed by FATCA.

     “Executive Order” has the meaning assigned to such term in Section 7.25(a).

10

 

     “Existing Credit Agreement” means that certain Credit Agreement dated as of November
29, 2007 among the Borrower and Bank of America, N.A., as amended.

     “Existing Letters of Credit” means those letters of credit issued and outstanding on
the Effective Date and listed on Schedule 9.02.

     “Existing Senior Notes” means the Borrower’s existing 8.375% senior notes due December
1, 2014 issued pursuant to the Existing Senior Notes Indenture.

     “Existing Senior Notes Indenture” means the indenture dated November 29, 2007, among
the Borrower, the guarantors named therein and The Bank of New York Trust Company, N.A., as
trustee.

     “FATCA” means Sections 1471 through 1474 of the Code (and any amendment thereof or
successor sections thereto) and any regulations or official interpretations thereof.

     “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

     “Fee Letter” means that certain Fee Letter, dated as of February 11, 2011, among the
Administrative Agent, J.P. Morgan Securities LLC and the Borrower.

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

     “Financial Officer” means, for any Person, the chief financial officer, principal
accounting officer, treasurer or controller of such Person. Unless otherwise specified, all
references herein to a Financial Officer means a Financial Officer of the Borrower.

     “Financial Statements” means the financial statements referred to in Section
7.04(a).

     “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Borrower is resident for tax purposes. For purposes of this
definition, the United States of America, each State thereof and the District of Columbia shall be
deemed to constitute a single jurisdiction.

     “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

     “Fund” means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business.

11

 

     “GAAP” means generally accepted accounting principles in the United States of America
as in effect from time to time subject to the terms and conditions set forth in Section
1.04.

     “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 (including any supranational bodies, such as the European Union or the
European Central Bank).

     “Governmental Requirement” means any law, statute, code, ordinance, order,
determination, rule, regulation, judgment, decree, injunction, franchise, permit, certificate,
license, rules of common law, authorization or other directive or requirement, whether now or
hereinafter in effect, of any Governmental Authority.

     “Guarantee and Collateral Agreement” means an agreement executed by the Borrower and
the Guarantors in substantially the form of Exhibit E granting security interests in
certain Collateral and unconditionally guarantying on a joint and several basis, payment of the
Secured Obligations, as the same may be amended, modified or supplemented from time to time.

     “Guarantors” means, collectively, (a) the Subsidiaries listed on Schedule 7.14
and designated as a “Guarantor” thereon, and (b) each other Subsidiary that guarantees the Secured
Obligations pursuant to Section 8.13(a).

     “Hazardous Material” means any substance regulated or as to which liability might
arise under any applicable Environmental Law including: (a) any chemical, compound, material,
product, byproduct, substance or waste defined as or included in the definition or meaning of
“hazardous substance,” “hazardous material,” “hazardous waste,” “solid waste,” “toxic waste,”
“extremely hazardous substance,” “toxic substance,” “contaminant,” “pollutant,” or words of similar
meaning or import found in any applicable Environmental Law; (b) hydrocarbons, petroleum products,
petroleum substances, natural gas, oil, oil and gas waste, crude oil, and any components,
fractions, or derivatives thereof; and (c) radioactive materials, explosives, asbestos or asbestos
containing materials, polychlorinated biphenyls, radon, infectious or medical wastes, to the extent
any of the foregoing are present in quantities or concentrations prohibited under Environmental
Laws.

     “Hedging Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement, whether exchange traded, “over-the-counter”
or otherwise, involving, or settled by reference to, one or more rates, currencies, commodities,
equity or debt instruments or securities, or economic, financial or pricing indices or measures of
economic, financial or pricing risk or value or any similar transaction or any combination of these
transactions.

     “Hedging Termination Value” means, in respect of any one or more Hedging Agreements,
after taking into account the effect of any legally enforceable netting agreement relating to such
Hedging Agreements, (a) for any date on or after the date such Hedging Agreements have been closed
out and termination value(s) determined in accordance therewith,

12

 

such termination value(s) and (b) for any date prior to the date referenced in clause (a), the
amount(s) determined as the mark-to-market value(s) for such Hedging Agreements, as determined by
the counterparties to such Hedging Agreements.

     “Highest Lawful Rate” means, with respect to each Lender, the maximum nonusurious
interest rate, if any, that at any time or from time to time may be contracted for, taken,
reserved, charged or received on the Loans or on other Secured Obligations under laws applicable to
such Lender which are presently in effect or, to the extent allowed by law, under such applicable
laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate
than applicable laws allow as of the date hereof.

     “Immaterial Subsidiary” means (a) any Domestic Subsidiary of the Borrower designated
as an Immaterial Subsidiary which has assets with a net book value of $1,000,000 or less and annual
revenues of $1,000,000 or less; provided that all Domestic Subsidiaries so designated as Immaterial
Subsidiaries may not have at any time, in the aggregate, assets with a net book value exceeding
$5,000,000 or annual revenues exceeding $5,000,000, and (b) any Foreign Subsidiary of the Borrower
designated as an Immaterial Subsidiary which has assets with a net book value of $5,000,000 or less
and annual revenues of $5,000,000 or less. All of the Immaterial Subsidiaries as of the Effective
Date are listed on Schedule 7.14 and designated thereon as Immaterial Subsidiaries.

     “Incur” means, with respect to any Indebtedness or any Person, (a) to create, issue,
incur (by conversion, exchange or otherwise), assume, guarantee or become liable in respect of such
Indebtedness, or (b) the recording, as required pursuant to GAAP or otherwise, of any of such
Indebtedness on the balance sheet of such Person; provided that a change in GAAP that results in an
obligation of such Person that exists at such time and is not classified as Indebtedness becoming
Indebtedness shall not be an Incurrence of Indebtedness. For purposes of this definition, any
Indebtedness having an original issue discount shall be deemed to have been Incurred in an amount
equal to the aggregate principal due at its stated maturity. “Incurrence”, “Incurred” and
“Incurring” shall have correlative meanings.

     “Indebtedness” means, for any Person, the sum of the following (without duplication):
(a) all obligations of such Person for borrowed money or evidenced by bonds, bankers’ acceptances,
debentures, notes or other similar instruments; (b) all obligations of such Person (whether
contingent or otherwise) in respect of letters of credit; (c) all accounts payable and all accrued
expenses, liabilities or other obligations of such Person to pay the deferred purchase price of
Property or services; (d) all obligations under Capital Leases; (e) all obligations under Synthetic
Leases; (f) all Indebtedness (as defined in the other clauses of this definition) of others secured
by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to
be secured by) a Lien on any Property of such Person, whether or not such Indebtedness is assumed
by such Person; (g) all Indebtedness (as defined in the other clauses of this definition) of others
guaranteed by such Person or in which such Person otherwise assures a creditor against loss of the
Indebtedness (howsoever such assurance shall be made) to the extent of the lesser of the amount of
such Indebtedness and the maximum stated amount of such guarantee or assurance against loss; (h)
all obligations or undertakings of such Person to maintain or cause to be maintained the financial
position or covenants of others or to purchase the Indebtedness or Property of others; (i)
obligations to pay for goods or services even if such goods or services are

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not actually received or utilized by such Person; (j) any Indebtedness of a partnership for
which such Person is liable either by agreement, by operation of law or by a Governmental
Requirement but only to the extent of such liability; and (k) Disqualified Capital Stock.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Interest Election Request” means a request by the Borrower to convert or continue a
Borrowing in accordance with Section 2.04.

     “Interest Payment Date” means (a) with respect to any ABR 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 Loan is a part and, in the case of a
Eurodollar Borrowing with an Interest Period of more than three months’ 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 Borrowing and ending (a) seven (7) calendar days thereafter, or (b)
on the numerically corresponding day in the calendar month that is one, two, three or six months
thereafter, as the Borrower may elect; provided that (a) if any Interest Period would end on a day
other than a Business Day, such Interest Period shall be extended to the next succeeding Business
Day unless such next succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day and (b) any Interest Period
pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the last calendar month of such
Interest Period) shall end on the last Business Day of the last calendar month of such Interest
Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and thereafter shall be the effective date of the most recent conversion or
continuation of such Borrowing.

     “Investment” means, for any Person: (a) the acquisition (whether for cash, Property,
services or securities or otherwise) of Equity Interests of any other Person or any agreement to
make any such acquisition (including, without limitation, any “short sale” or any sale of any
securities at a time when such securities are not owned by the Person entering into such short
sale); (b) the making of any deposit with, or advance, loan or capital contribution to, assumption
of Indebtedness of, purchase or other acquisition of any other Indebtedness or equity participation
or interest in, or other extension of credit to, any other Person (including the purchase of
Property from another Person subject to an understanding or agreement, contingent or otherwise, to
resell such Property to such Person, but excluding any such advance, loan or extension of credit
having a term not exceeding ninety (90) days representing the purchase price of inventory or
supplies sold by such Person in the ordinary course of business); (c) the purchase or acquisition
(in one or a series of transactions) of Property of another Person that constitutes a business unit
or (d) the entering into of any guarantee of, or other contingent obligation (including the deposit
of any Equity Interests to be sold) with respect to, Indebtedness or other liability of any other
Person and (without duplication) any amount committed to be advanced, lent or extended to such
Person.

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     “Issuing Bank” means JPMorgan, in its capacity as the issuer of Letters of Credit
hereunder, or other Lenders who agree to act in such capacity. The Issuing Bank may, in its
discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing
Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to
Letters of Credit issued by such Affiliate.

     “JPMorgan” has the meaning assigned to such term in the introductory paragraph hereto.

     “LC Commitment” means, at any time, $250,000,000.

     “LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of
Credit.

     “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements
that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of
any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

     “Lenders” means the Persons listed on Annex I, including, as the context
requires, the Swing Line Lender, and any Person that shall have become a party hereto pursuant to
an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Assumption.

     “Letter of Credit” means any letter of credit issued pursuant to this Agreement or the
Existing Letters of Credit.

     “Letter of Credit Agreements” means all letter of credit applications and other
agreements (including any amendments, modifications or supplements thereto) submitted by the
Borrower, or entered into by the Borrower, with the Issuing Bank relating to any Letter of Credit.

     “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Reuters Screen LIBOR01 Page (or on any successor or substitute page of such
service, or any successor to or substitute for such service, providing rate quotations comparable
to those currently provided on such page of such service, as determined by the Administrative Agent
from time to time for purposes of providing quotations of interest rates applicable to dollar
deposits in the London interbank market) at approximately 11:00 a.m., London time, two (2) Business
Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period. In the event that such rate is not available at such
time for any reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing for such
Interest Period shall be the rate (rounded upwards, if necessary, to the next 1/100 of 1%) at which
dollar deposits of an amount comparable to such Eurodollar Borrowing and for a maturity comparable
to such Interest Period are offered by the principal London office of the Administrative Agent in
immediately available funds in the London interbank market at approximately 11:00 a.m., London
time, two (2) Business Days prior to the commencement of such Interest Period.

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     “Lien” means any interest in Property securing an obligation owed to, or a claim by, a
Person other than the owner of the Property, whether such interest is based on the common law,
statute or contract, and whether such obligation or claim is fixed or contingent, and including but
not limited to the lien or security interest arising from a mortgage, deed of trust, encumbrance,
pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment
for security purposes. The term “Lien” shall include easements, restrictions, servitudes, permits,
conditions, covenants, exceptions or reservations. For the purposes of this Agreement, the Borrower
and its Subsidiaries shall be deemed to be the owner of any Property which they have acquired or
hold subject to a conditional sale agreement, or leases under a financing lease or other
arrangement pursuant to which title to the Property has been retained by or vested in some other
Person in a transaction intended to create a financing.

     “Loans” means either the Revolving Loans or the Swing Line Loans or both the Revolving
Loans and the Swing Line Loans, as the context requires.

     “Loan Documents” means, collectively, this Agreement, the Notes, the Letter of Credit
Agreements, the Letters of Credit, the Fee Letter and the Security Instruments.

     “Loan Parties” means, collectively, the Borrower and the Guarantors.

     “Majority Lenders” means, at any time while no Loans, LC Exposure or Swing Line
Exposure are outstanding, Lenders having more than fifty percent (50%) of the aggregate
Commitments; and at any time while any Loans, LC Exposure or Swing Line Exposure are outstanding,
Lenders holding more than fifty percent (50%) of the outstanding aggregate principal amount of the
Loans, participation interests in Letters of Credit and participation interests in Swing Line Loans
(without regard to any sale by a Lender of a participation in any Loan under Section
12.04(d)); provided that the Commitments and the principal amount of the Loans, participation
interests in Letters of Credit and participation interests in Swing Line Loans of the Defaulting
Lenders (if any) shall be excluded from the determination of Majority Lenders.

     “Material Adverse Effect” means a material adverse change in, or material adverse
effect on (a) the business, Property, condition (financial or otherwise) or results of operations
of the Borrower and the Subsidiaries taken as a whole, (b) the validity or enforceability of any
Loan Document or (c) the rights and remedies of the Administrative Agent, any other Agent, the
Issuing Bank or any Lender under any Loan Document.

     “Material Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Hedging Agreements, of any one or more of the
Borrower and its Subsidiaries in an aggregate principal amount exceeding $30,000,000. For purposes
of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or
any Subsidiary in respect of any Hedging Agreement at any time shall be the Hedging Termination
Value.

     “Material Subsidiary” means any Domestic Wholly-Owned Subsidiary or any Foreign
Wholly-Owned Subsidiary which may guarantee the Secured Obligations pursuant to the Guarantee and
Collateral Agreement without adverse tax consequences which as of the most recently ended fiscal
quarter for which financial statements have been delivered under Section

16

 

8.01(a) or Section 8.01(b) has assets with a net book value of $1,000,000 or
more and annual revenues of $1,000,000 or more; provided the Subsidiaries listed on Schedule
1.01(b) shall not be a Material Subsidiary under any circumstance.

     “Maturity Date” means March 31, 2016.

     “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto that is a
nationally recognized rating agency.

     “Mortgage” means each mortgage, deed of trust or any other document creating and
evidencing a Lien on real or immovable Property or leasehold estates in real or immoveable property
in favor of the Secured Parties, which shall be in a form reasonably satisfactory to the
Administrative Agent, as the same may be amended, modified, supplemented or restated from time to
time in accordance with the Loan Documents.

     “Mortgaged Property” means any real Property owned by the Borrower or any of its
Subsidiaries that is subject to a Mortgage.

     “Notes” means the promissory notes of the Borrower evidencing Revolving Loans or Swing
Line Loans, as applicable, described in Section 2.02(d) and being substantially in the form
of Exhibit A, together with all amendments, modifications, replacements, extensions and
rearrangements thereof.

     “OFAC” has the meaning assigned to such term in Section 7.25(b)(v).

     “Oilfield Intellectual Property” means (a) the services provided by the Loan Parties
and/or their Subsidiaries, including, but not limited to, well servicing, work-over, and drilling
services; (b) all data and/or other information generated or obtained by or on behalf of the Loan
Parties and/or their Subsidiaries in connection with the provision of such services; (c) all
measurement, acquisition, manipulation, and display and all devices and systems used or useful in
measuring, acquiring, manipulating, displaying, and/or otherwise dealing with such data or
information; and (d) all U.S. and foreign patents and trademarks, U.S. and foreign applications for
patents and trademarks, trade secrets, confidential business information, U.S. and foreign
copyrights, and any other intellectual property or intellectual property right associated with
items described in clauses (a) through (c) above.

     “Organization Documents” means: (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non US jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with
the applicable Governmental Authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such entity.

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

     “Participant” has the meaning assigned to such term in Section 12.04(d)(i).

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

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

     “Permitted Acquisition” has the meaning set forth in Section 9.05(k).

     “Permitted Refinancing Debt” means Indebtedness (for purposes of this definition,
“new Debt”) incurred in exchange for, or proceeds of which are used to prepay and
refinance, all or any Senior Notes (the “Refinanced Debt”); provided that (a) such new Debt
is in an aggregate principal amount not in excess of the aggregate principal amount then
outstanding of the Refinanced Debt (or, if the Refinanced Debt is exchanged or acquired for an
amount less than the principal amount thereof to be due and payable upon a declaration of
acceleration thereof, such lesser amount) plus an amount necessary to pay any fees and expenses,
including premiums, related to the Refinanced Debt or the refinancing thereof; (b) such new Debt
has a stated maturity no earlier than the stated maturity of the Refinanced Debt and an average
life no shorter than the average life of the Refinanced Debt; (c) such new Debt does not contain
any covenants which are materially more onerous to the Borrower and its Subsidiaries than those
imposed by the Refinanced Debt; (d) such new Debt is not Incurred by a Person who is not obligated
on the Refinanced Debt unless such Person is the Borrower or becomes a Guarantor; and (e) such new
Debt (and any guarantees thereof) is subordinated in right of payment to the Indebtedness (or, if
applicable, the Guarantee and Collateral Agreement) to at least the same extent as the Refinanced
Debt.

     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

     “Plan” means any employee pension benefit plan, as defined in section 3(2) of ERISA,
which (a) is currently or hereafter sponsored, maintained or contributed to by the Borrower, a
Subsidiary or an ERISA Affiliate or (b) was at any time during the six (6) calendar years preceding
the date hereof, sponsored, maintained or contributed to by the Borrower or a Subsidiary or an
ERISA Affiliate.

     “Prime Rate” means the rate of interest per annum publicly announced from time to time
by the Administrative Agent as its prime rate in effect at its principal office in New York, New
York; each change in the Prime Rate shall be effective from and including the date such change is
publicly announced as being effective. Such rate is set by the Administrative Agent as a general
reference rate of interest, taking into account such factors as the Administrative Agent may deem
appropriate; it being understood that many of the Administrative Agent’s commercial

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or other loans are priced in relation to such rate, that it is not necessarily the lowest or
best rate actually charged to any customer and that the Administrative Agent may make various
commercial or other loans at rates of interest having no relationship to such rate.

     “Property” means any interest in any kind of property or asset, whether real, personal
or mixed, or tangible or intangible (including, without limitation, cash, securities, accounts,
contract rights and Equity Interests or other ownership interests of any Person), whether now in
existence or owned or hereafter acquired.

     “Purchase Money Indebtedness” means Indebtedness, the proceeds of which are used to
finance the acquisition, construction or improvement of inventory, equipment or other Property in
the ordinary course of business.

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

     “Register” has the meaning assigned to such term in Section 12.04(c).

     “Regulation D” means Regulation D of the Board, as the same may be amended,
supplemented or replaced from time to time.

     “Related Parties” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents and advisors of such Person and of such Person’s
Affiliates.

     “Release” means any depositing, spilling, leaking, pumping, pouring, placing,
emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching,
dumping, or disposing in quantities or concentrations prohibited under Environmental Laws.

     “Remedial Work” has the meaning assigned to such term in Section 8.11(a).

     “Responsible Officer” means, as to any Person, the Chief Executive Officer, the
President, any Financial Officer or any Vice President of such Person. Unless otherwise specified,
all references to a Responsible Officer herein shall mean a Responsible Officer of the Borrower.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other Property) with respect to any Equity Interests in the Borrower or any of its
Subsidiaries, or any payment (whether in cash, securities or other Property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any such Equity Interests in the Borrower or any of its Subsidiaries
or any option, warrant or other right to acquire any such Equity Interests in the Borrower or any
of its Subsidiaries.

19

 

     “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of
the outstanding principal amount of such Lender’s Revolving Loans, LC Exposure and Swing Line
Exposure at such time.

     “Revolving Loan” means a loan made to the Borrower pursuant to Section 2.01.

     “S&P” means Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies,
Inc., and any successor thereto that is a nationally recognized rating agency.

     “SEC” means the Securities and Exchange Commission or any successor Governmental
Authority.

     “Secured Hedging Agreement” means any Hedging Agreement of the Borrower or any
Subsidiary with a Secured Hedging Agreement Counterparty.

     “Secured Hedging Agreement Counterparty” means any Person party to any Hedging
Agreement between the Borrower or any Subsidiary and such Person if either (i) at the time such
Hedging Agreement was entered into, such Person was a Lender or Affiliate of a Lender hereunder or
(ii) such Hedging Agreement was in effect on the Effective Date and such Person or its Affiliate
was a Lender on the Effective Date, in each case, after giving effect to all netting arrangements
relating to such Hedging Agreements.

     “Secured Obligations” means any and all amounts owing or to be owing (including
interest accruing at any post-default rate and interest accruing after the filing of any petition
in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating
to the Borrower, any of its Subsidiaries or any other Loan Party, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) by the Borrower, any
Subsidiary or any Guarantor (whether direct or indirect (including those acquired by assumption),
absolute or contingent, due or to become due, now existing or hereafter arising): (a) to the
Administrative Agent, the Issuing Bank or any Lender under any Loan Document; (b) to any Secured
Hedging Agreement Counterparty under any Secured Hedging Agreement; (c) to any Treasury Management
Counterparty under any Treasury Management Agreement; and (d) all renewals, extensions and/or
rearrangements of any of the above.

     “Secured Parties” means, collectively, the Administrative Agent, the Issuing Bank,
each Lender, each Secured Hedging Agreement Counterparty and each Treasury Management Counterparty.

     “Security Instruments” means the Guarantee and Collateral Agreement, the Mortgages,
the other agreements, instruments or certificates described or referred to in Schedule
1.01(a), and any and all other agreements, instruments, consents or certificates now or
hereafter executed and delivered by the Borrower or any other Person (other than Secured Hedging
Agreements, Treasury Management Agreements or participation agreements between any Lender and any
other lender or creditor with respect to any Secured Obligations pursuant to this Agreement) in
connection with, or as security for the payment or performance of the Secured Obligations, the
Notes, this Agreement, or reimbursement obligations under the Letters of Credit, as such agreements
may be amended, modified, supplemented or restated from time to time.

20

 

     “Senior Notes” means any unsecured senior or senior subordinated notes issued by the
Borrower.

     “Senior Notes Indenture” means the Existing Senior Notes Indenture and any other
indenture pursuant to which Senior Notes are issued.

     “Senior Secured Leverage Ratio” means, as of the last day of any fiscal quarter, the
ratio of the principal amount of the Borrower’s Indebtedness under this Agreement and under any
other senior secured Indebtedness to the Consolidated EBITDA for the four (4) quarter fiscal period
ending on such date.

     “Shareholders’ Equity” means, as of any date of determination, consolidated equity of
the Borrower and its Subsidiaries as of that date determined in accordance with GAAP.

     “Solvent” means, with respect to any Person as of any date, that (a) the value of the
assets of such Person (both at fair value and present fair saleable value) is, on the date of
determination, greater than the total amount of liabilities (including contingent and unliquidated
liabilities) of such Person as of such date, (b) as of such date, such Person is able to pay all
liabilities of such Person as such liabilities mature, and (c) as of such date, such Person does
not have unreasonably small capital given the nature of its business. In computing the amount of
contingent or unliquidated liabilities at any time, such liabilities shall be computed at the
amount that, in light of all the facts and circumstances existing at such time, represents the
amount that can reasonably be expected to become an actual or matured liability.

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

     “Subsidiary” means: (a) any Person of which at least a majority of the outstanding
Equity Interests having by the terms thereof ordinary voting power to elect a majority of the board
of directors, manager or other governing body of such Person (irrespective of whether or not at the
time Equity Interests of any other class or classes of such Person shall have or might have voting
power by reason of the happening of any contingency) is at the time directly or indirectly owned or
controlled by (i) another Person, (ii) one or more of such other Person’s Subsidiaries or (iii)
collectively, such other Person and one or more of such other Person’s Subsidiaries, and (b) any
partnership of which such other Person or any of such other Person’s Subsidiaries is a general
partner. Unless otherwise indicated herein, each reference to the term “Subsidiary” means a
Subsidiary of the Borrower; provided that, in no event shall the entities listed on Schedule
1.01(c) be a Subsidiary under any circumstances.

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

     “Swing Line Lender” means JPMorgan.

     “Swing Line Loan” means a Loan made pursuant to Section 2.08.

     “Swing Line Payment Date” means the 15th calendar day and the last Business Day of
each month.

     “Syndication Agent” has the meaning assigned to such term in the introductory
paragraph hereto.

     “Synthetic Leases” means, in respect of any Person, all leases which shall have been,
or should have been, in accordance with GAAP, treated as operating leases on the financial
statements of the Person liable (whether contingently or otherwise) for the payment of rent
thereunder and which were properly treated as indebtedness for borrowed money for purposes of U.S.
federal income taxes, if the lessee in respect thereof is obligated to either purchase for an
amount in excess of, or pay upon early termination an amount in excess of, 80% of the residual
value of the Property subject to such operating lease upon expiration or early termination of such
lease.

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority, including
any interest, additions to tax or penalties applicable thereto.

     “Termination Date” means the earlier of (a) the Maturity Date and (b) the date of
termination of the Commitments.

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

     “Transactions” means, with respect to (a) the Borrower, the execution, delivery and
performance by the Borrower of this Agreement and each other Loan Document and the borrowing of
Loans, the use of the proceeds thereof, the issuance of Letters of Credit hereunder, and the grant
of Liens by the Borrower on Collateral pursuant to the Security Instruments, and (b) each
Guarantor, the execution, delivery and performance by such Guarantor of each Loan Document, to
which it is a party, the guaranteeing of the Secured Obligations and the other obligations under
the Guarantee and Collateral Agreement by such Guarantor and such Guarantor’s grant of Liens by
such Guarantor on Collateral pursuant to the Security Instruments.

     “Treasury Management Agreement” means any agreement governing the provision of
treasury or cash management services, including deposit accounts, funds transfer, automated
clearinghouse, auto-borrow, zero balance accounts, returned check concentration, controlled
disbursement, lockbox, credit cards, account reconciliation and reporting and trade finance
services provided by a Treasury Management Counterparty for the benefit of the Borrower or a
Subsidiary.

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     “Treasury Management Counterparty” means each Lender or Affiliate of a Lender that
enters into a Treasury Management Agreement; provided that if such Person at any time ceases to be
a Lender or an Affiliate of a Lender, as the case may be, such Person shall no longer be a Treasury
Management Counterparty.

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

     “U.S. Dollars” or “$” refers to lawful money of the United States of America.

     “Wholly-Owned Subsidiary” means (a) any Subsidiary of which all of the outstanding
Equity Interests (other than any directors’ qualifying shares mandated by applicable law), on a
fully-diluted basis, are owned by the Borrower or one or more of the Wholly-Owned Subsidiaries or
are owned by the Borrower and one or more of the Wholly-Owned Subsidiaries or (b) any Subsidiary
that is organized in a foreign jurisdiction and is required by the applicable laws and regulations
of such foreign jurisdiction to be partially owned by the government of such foreign jurisdiction
or individual or corporate citizens of such foreign jurisdiction, provided that the Borrower,
directly or indirectly, owns the remaining Equity Interests in such Subsidiary and, by contract or
otherwise, controls the management and business of such Subsidiary and derives economic benefits of
ownership of such Subsidiary to substantially the same extent as if such Subsidiary were a
Wholly-Owned Subsidiary.

     Section 1.02 Types of Loans and Borrowings. For purposes of this Agreement, Loans and
Borrowings, respectively, may be classified and referred to by Type (e.g., a “Eurodollar
Loan” or a “Eurodollar Borrowing”).

     Section 1.03 Terms Generally; Rules of Construction. The definitions of terms herein
shall apply equally to the singular and plural forms of the terms defined. Whenever the context
may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The
words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”. The word “will” shall be construed to have the same meaning and effect as the word
“shall”. Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring to such agreement,
instrument or other document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications set forth in the Loan
Documents), (b) any reference herein to any law or regulation shall be construed, unless otherwise
specified, as referring to such law or regulation as amended, modified, supplemented, codified or
reenacted, in whole or in part, and in effect from time to time, (c) any reference herein to any
Person shall be construed to include such Person’s successors and assigns (subject to the
restrictions contained in the Loan Documents), (d) the words “herein”, “hereof” and “hereunder”,
and words of similar import, shall be construed to refer to this Agreement in its entirety and not
to any particular provision hereof, (e) with respect to the determination of any time period, the
word “from” means “from and including” and the word “to” means “to and including” and (f) any
reference herein to Articles, Sections, Annexes, Exhibits and Schedules shall be construed to refer
to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement. No provision
of this Agreement or any other Loan

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Document shall be interpreted or construed against any Person solely because such Person or
its legal representative drafted such provision.

     Section 1.04 Accounting Terms and Determinations; GAAP; Currency Translations. Unless
otherwise specified herein, all accounting terms used herein shall be interpreted, all
determinations with respect to accounting matters hereunder shall be made, and all financial
statements and certificates and reports as to financial matters required to be furnished to the
Administrative Agent or the Lenders hereunder shall be prepared, in accordance with GAAP, applied
on a basis consistent with the Financial Statements except for changes in which Borrower’s
independent certified public accountants concur and which are disclosed to Administrative Agent on
the next date on which Financial Statements are required to be delivered to the Lenders pursuant to
Section 8.01(a); provided that, unless the Borrower and the Majority Lenders shall
otherwise agree in writing, no such change shall modify or affect the manner in which compliance
with the covenants contained herein is computed such that all such computations shall be conducted
utilizing financial information presented consistently with prior periods. In determining whether
the Borrower or a Subsidiary has transacted in other currencies, compliance shall be calculated as
of the date such transaction is effective converting the currency actually used into U.S. Dollars
at then prevailing exchange rates as reasonably determined by the Borrower.

     Section 1.05 Currency Equivalents Generally. Any amount specified in this Agreement
(other than in Articles II and XI) or any of the other Loan Documents to be in U.S.
Dollars shall also include the equivalent of such amount in any currency other than U.S. Dollars,
such equivalent amount thereof in the applicable currency to be determined by the Administrative
Agent at such time on the basis of the Spot Rate (as defined below) for the purchase of such
currency with U.S. Dollars. For purposes of this Section 1.05, the “Spot Rate” for
a currency means the rate determined by the Administrative Agent to be the rate quoted by the
Person acting in such capacity as the spot rate for the purchase by such Person of such currency
with another currency through its principal foreign exchange trading office at approximately 11:00
a.m. on the date two Business Days prior to the date of such determination; provided that the
Administrative Agent may obtain such spot rate from another financial institution designated by the
Administrative Agent if the Person acting in such capacity does not have as of the date of
determination a spot buying rate for any such currency.

ARTICLE II

The Credits

     Section 2.01 Commitments. Subject to the terms and conditions set forth herein, each
Lender agrees to make Revolving Loans to the Borrower from time to time during the Availability
Period in an aggregate principal amount that will not result in (a) such Lender’s Revolving Credit
Exposure exceeding such Lender’s Commitment or (b) the total Revolving Credit Exposures exceeding
the total Commitments. Within the foregoing limits and subject to the terms and conditions set
forth herein, the Borrower may borrow, repay and reborrow the Revolving Loans.

     Section 2.02 Loans and Borrowings.

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          (a) Borrowings; Several Obligations. Each Revolving Loan shall be made as part
of a Borrowing consisting of Revolving Loans made by the Lenders ratably in accordance with their
respective Commitments. The failure of any Lender to make any Revolving Loan required to be made
by it shall not relieve any other Lender of its obligations hereunder; provided that the
Commitments are several and no Lender shall be responsible for any other Lender’s failure to make
Revolving Loans as required.

          (b) Types of Loans. Subject to Section 3.03, each Borrowing shall be
comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request in accordance
herewith. Each Swing Line Loan shall be an ABR Loan. Each Lender at its option may make any
Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such
Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to
repay such Loan in accordance with the terms of this Agreement.

          (c) Minimum Amounts; Limitation on Number of Borrowings. At the commencement of each
Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate amount that
is an integral multiple of $500,000 and not less than $1,000,000. At the time that each Revolving
Loan ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral
multiple of $100,000 and not less than $500,000; provided that a Revolving Loan ABR Borrowing may
be in an aggregate amount that is equal to the entire unused balance of the total Commitments or
that is required to finance the reimbursement of an LC Disbursement as contemplated by Section
2.07(e). Borrowings of more than one Type may be outstanding at the same time, provided that
there shall not at any time be more than a total of six (6) Eurodollar Borrowings outstanding.
Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to
request, or to elect to convert or continue, any Eurodollar Borrowing if the Interest Period
requested with respect thereto would end after the Maturity Date.

          (d) Notes. The Loans made by each Lender, if requested by such Lender, shall be
evidenced by a single promissory note of the Borrower to such Lender in substantially the form of
Exhibit A, dated, in the case of (i) any Lender party hereto as of the date of this
Agreement, as of the date of this Agreement, or (ii) any Lender that becomes a party hereto
pursuant to an Assignment and Assumption, as of the effective date of the Assignment and
Assumption, payable to the order of such Lender in a principal amount equal to its Commitment, and
otherwise duly completed. In the event that any Lender’s Commitment increases or decreases for any
reason (whether pursuant to Section 2.06, Section 12.04(a) or otherwise), if
requested by such Lender, the Borrower shall deliver or cause to be delivered on the effective date
of such increase or decrease, a new Note payable to the order of such Lender in a principal amount
equal to its Commitment, after giving effect to such increase or decrease, and otherwise duly
completed and such Lender agrees to promptly return the previously issued Note held by such Lender
marked cancelled or otherwise similarly defaced. The date, amount, Type, interest rate and, if
applicable, Interest Period of each Loan made by each Lender, and all payments made on account of
the principal thereof, shall be recorded by such Lender on its books for its applicable Note, and,
prior to any transfer, may be endorsed by such Lender on a schedule attached to such Note or any
continuation thereof or on any separate record maintained by such Lender. Failure to make any such
notation or to attach a schedule shall not affect any Lender’s

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or the Borrower’s rights or obligations in respect of such Loans or affect the validity of
such transfer by any Lender of its Note.

     Section 2.03 Requests for Revolving Loan Borrowings. To request a Revolving Loan
Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone or by
written Borrowing Request in substantially the form of Exhibit B and signed by the Borrower
(a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m., Central Time, three (3)
Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not
later than 11:00 a.m., Central Time, one Business Day before the date of the proposed Borrowing;
provided that no such notice shall be required for any deemed request of a Revolving Loan ABR
Borrowing to finance the reimbursement of an LC Disbursement as provided in Section
2.07(e). Each such telephonic and written Borrowing Request shall be irrevocable and each
telephonic Borrowing Request shall be confirmed promptly by hand delivery, facsimile or e-mail to
the Administrative Agent of a written Borrowing Request. Each such telephonic and written
Borrowing Request shall specify the following information in compliance with Section 2.02:

               (i) the aggregate amount of the requested Borrowing;

               (ii) the date of such Borrowing, which shall be a Business Day;

               (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

               (iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable
thereto, which shall be a period contemplated by the definition of the term “Interest
Period”;

               (v) the location and number of the Borrower’s account to which funds are to be disbursed,
which shall comply with the requirements of Section 2.05.

     If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be
an ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar
Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s
duration. Each Borrowing Request shall constitute a representation that (a) the amount of the
requested Borrowing shall not cause the total Revolving Credit Exposures to exceed the total
Commitments, and (b) each condition precedent set forth in Section 6.02 has been satisfied
with respect to such Borrowing.

     Promptly following receipt of a Borrowing Request in accordance with this Section
2.03, the Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender’s Loan to be made as part of the requested Borrowing.

     Section 2.04 Interest Elections.

          (a) Conversion and Continuance of Revolving Loans. Each Revolving Loan Borrowing
initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a
Eurodollar Borrowing, shall have an initial Interest Period as specified in such

26

 

Borrowing Request. Thereafter, the Borrower may elect to convert such Revolving Loan
Borrowing to a different Type or to continue such Revolving Loan Borrowing and, in the case of a
Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section
2.04. The Borrower may elect different options with respect to different portions of the
affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders
holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be
considered a separate Borrowing.

          (b) Interest Election Requests. To make an election pursuant to this Section
2.04, the Borrower shall notify the Administrative Agent of such election by telephone or by
written Interest Election Request in substantially the form of Exhibit C and signed by the
Borrower by the time that a Borrowing Request would be required under Section 2.03 if the
Borrower were requesting a Borrowing of the Type resulting from such election to be made on the
effective date of such election. Each telephonic and written Interest Election Request shall be
irrevocable and each Interest Election Request shall be confirmed promptly by hand delivery,
facsimile or e-mail to the Administrative Agent.

          (c) Information in Interest Election Requests. Each telephonic and written Interest
Election Request shall specify the following information in compliance with Section 2.02:

               (i) the Borrowing to which such Interest Election Request applies and, if different options
are being elected with respect to different portions thereof, the portions thereof to be allocated
to each resulting Borrowing (in which case the information to be specified pursuant to Section
2.04(c)(ii) and (iii) shall be specified for each resulting Borrowing);

               (ii) the effective date of the election made pursuant to such Interest Election Request, which
shall be a Business Day;

               (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

               (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period contemplated by
the definition of the term “Interest Period”.

     If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one (1)
month’s duration.

          (d) Notice to Lenders by the Administrative Agent. Promptly following receipt of an
Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof
and of such Lender’s portion of each resulting Borrowing.

          (e) Effect of Failure to Deliver Timely Interest Election Request and Events of Default on
Interest Election. If the Borrower fails to deliver a timely Interest Election Request with
respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest Period such

27

 

Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision
hereof, if an Event of Default has occurred and is continuing: (i) no outstanding Borrowing may be
converted to or continued as a Eurodollar Borrowing (and any Interest Election Request that
requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar
Borrowing shall be ineffective) and (ii) unless repaid, each Eurodollar Borrowing shall be
converted to an ABR Borrowing at the end of the Interest Period applicable thereto.

     Section 2.05 Funding of Revolving Loan Borrowings.

          (a) Funding by Lenders. Each Lender shall make each Revolving Loan to be made by it
hereunder on the proposed date thereof by wire transfer of immediately available funds by 12:00
noon, Central Time, to the account of the Administrative Agent most recently designated by it for
such purpose by notice to the Lenders. The Administrative Agent will make such Revolving Loans
available to the Borrower by promptly crediting the amounts so received, in like funds, to an
account of the Borrower maintained with the Administrative Agent in New York, New York and
designated by the Borrower in the applicable Borrowing Request; provided that ABR Loans made to
finance the reimbursement of an LC Disbursement as provided in Section 2.07(e) shall be
remitted by the Administrative Agent to the Issuing Bank. Nothing herein shall be deemed to
obligate any Lender to obtain the funds for its Revolving Loan in any particular place or manner or
to constitute a representation by any Lender that it has obtained or will obtain the funds for its
Revolving Loan in any particular place or manner.

          (b) Funding by the Lenders; Presumption by the Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any
Revolving Loan Borrowing that such Lender will not make available to the Administrative Agent such
Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made
such share available on such date in accordance with Section 2.05(a) and may, in reliance
upon such assumption, make available to the Borrower a corresponding amount. In such event, if a
Lender has not in fact made its share of the applicable Revolving Loan Borrowing available to the
Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to the Borrower to but excluding the
date of payment to the Administrative Agent, at (i) in the case of a payment to be made by such
Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation and (ii) in the case of a
payment to be made by the Borrower, the interest rate applicable to ABR Loans. If the Borrower and
such Lender shall pay such interest to the Administrative Agent for the same or an overlapping
period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest
paid by the Borrower for such period. If such Lender pays its share of the applicable Revolving
Loan Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s
Revolving Loan included in such Revolving Loan Borrowing. Any payment by the Borrower shall be
without prejudice to any claim the Borrower may have against a Lender that shall have failed to
make such payment to the Administrative Agent.

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     Section 2.06 Termination and Reduction of Commitments.

          (a) Scheduled Termination of Commitments. Unless previously terminated, the
Commitments shall terminate on the Maturity Date.

          (b) Optional Termination and Reduction of Commitments.

               (i) The Borrower may at any time terminate, or from time to time reduce, the Commitments;
provided that (a) each reduction of the Commitments shall be in an amount that is an integral
multiple of $5,000,000 and not less than $10,000,000 and (b) the Borrower shall not terminate or
reduce the Commitments if, after giving effect to any concurrent prepayment of the Revolving Loans
in accordance with Section 3.04(a)(ii), the total Revolving Credit Exposures would exceed
the total Commitments.

               (ii) The Borrower shall notify the Administrative Agent of any election to terminate or reduce
the Commitments under Section 2.06(b)(i) at least three (3) Business Days prior to the
effective date of such termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this
Section 2.06(b)(ii) shall be irrevocable, provided that a notice of termination of the
Commitments delivered by the Borrower may state that such notice is conditioned upon the
effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower
(by notice to the Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied.

          (c) Termination and Reductions of Commitments. Any termination or reduction of the
Commitments shall be permanent and may not be reinstated. Each reduction of the Commitments shall
be made ratably among the Lenders in accordance with each Lender’s Applicable Percentage.

          (d) Optional Increase in Commitments.

               (i) Subject to the conditions set forth in Section 2.06(d)(ii), the Borrower may
increase the Commitments then in effect with the prior written consent of the Administrative Agent
(not to be unreasonably withheld or delayed) by increasing the Commitments of a Lender or by
causing a Person that at such time is not a Lender to become a Lender (an “Additional
Lender”).

               (ii) Any increase in the Commitments shall be subject to the following additional conditions:

                    (A) such increase shall not be less than $25,000,000 unless the Administrative Agent otherwise
consents, and no such increase shall be permitted if after giving effect thereto the Commitments
would exceed $500,000,000;

                    (B) no Default shall have occurred and be continuing at the effective date of such increase;

29

 

                    (C) on the effective date of such increase, no Eurodollar Borrowings shall be outstanding or
if any Eurodollar Borrowings are outstanding, then the effective date of such increase shall be the
last day of the Interest Period in respect of such Eurodollar Borrowings unless the Borrower pays
compensation required by Section 5.02;

                    (D) no Lender’s Commitment may be increased without the consent of such Lender;

                    (E) if the Borrower elects to increase the Commitment by increasing the Commitment of a
Lender, the Borrower and such Lender shall execute and deliver to the Administrative Agent a
certificate substantially in the form of Exhibit H (a “Commitment Increase
Certificate”), together with a processing and recordation fee of $3,500, and the Borrower shall
deliver, to the extent requested, a new Note payable to the order of such Lender in a principal
amount equal to its Commitment after giving effect to such increase, and otherwise duly completed;
and

                    (F) if the Borrower elects to increase the Commitment by causing an Additional Lender to
become a party to this Agreement, then the Borrower and such Additional Lender shall execute and
deliver to the Administrative Agent a certificate substantially in the form of Exhibit I
(an “Additional Lender Certificate”), together with an Administrative Questionnaire and a
processing and recordation fee of $3,500, and the Borrower shall deliver, to the extent requested,
a Note payable to the order of such Additional Lender in a principal amount equal to its
Commitment, and otherwise duly completed.

               (iii) From and after the effective date specified in the Commitment Increase Certificate or
the Additional Lender Certificate (or if any Eurodollar Borrowings are outstanding, then the last
day of the Interest Period in respect of such Eurodollar Borrowings, unless the Borrower has paid
compensation required by Section 5.02): (A) the amount of the Commitment shall be
increased as set forth therein, and (B) in the case of an Additional Lender Certificate, any
Additional Lender party thereto shall be a party to this Agreement and the other Loan Documents and
have the rights and obligations of a Lender under this Agreement and the other Loan Documents. In
addition, the Lender or the Additional Lender, as applicable, shall purchase a pro rata portion of
the outstanding Loans (and participation interests in Letters of Credit) of each of the other
Lenders (and such Lenders hereby agree to sell and to take all such further action to effectuate
such sale) such that each Lender (including any Additional Lender, if applicable) shall hold its
Applicable Percentage of the outstanding Loans (and participation interests) after giving effect to
the increase in the Commitment.

               (iv) Upon its receipt of a duly completed Commitment Increase Certificate or an Additional
Lender Certificate, executed by the Borrower and the Lender or the Borrower and the Additional
Lender party thereto, as applicable, the processing and recording fee referred to in Section
2.06(d)(ii), the Administrative Questionnaire referred to in Section 2.06(d)(ii), if
applicable, and the written consent of the Administrative Agent to such increase required by
Section 2.06(d)(i), the Administrative Agent shall accept such Commitment Increase
Certificate or Additional Lender Certificate and record the information contained therein in the
Register required to be maintained by the Administrative Agent pursuant to Section
12.04(c). No

30

 

increase in the Commitment shall be effective for purposes of this Agreement unless it has
been recorded in the Register as provided in this Section 2.06(d)(iv).

     Section 2.07 Letters of Credit.

          (a) General. Subject to the terms and conditions set forth herein, the Borrower may
request the issuance of Letters of Credit denominated in U.S. Dollars for its own account or for
the account of any of its Subsidiaries, in a form reasonably acceptable to the Administrative Agent
and the Issuing Bank, at any time and from time to time during the Availability Period. Subject to
the terms and conditions set forth herein, the Issuing Bank shall promptly issue the requested
Letter of Credit; provided that the aggregate LC Exposure shall not exceed the lesser of (i) the LC
Commitment and (ii) amount equal to the total Commitments less then aggregate Revolving Credit
Exposures then outstanding. In the event of any inconsistency between the terms and conditions of
this Agreement and the terms and conditions of any Letter of Credit Agreement, the terms and
conditions of this Agreement shall control.

          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), the Borrower shall hand deliver or fax (or transmit by electronic communication, if
arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (not less than three (3) Business Days in advance of the requested date of
issuance, amendment, renewal or extension) a notice:

               (i) requesting the issuance of a Letter of Credit or identifying the Letter of Credit to be
amended, renewed or extended;

               (ii) specifying the date of issuance, amendment, renewal or extension (which shall be a
Business Day);

               (iii) specifying the date on which such Letter of Credit is to expire (which shall comply with
Section 2.07(c));

               (iv) specifying the amount of such Letter of Credit;

               (v) specifying the name and address of the beneficiary thereof and such other information as
shall be necessary to prepare, amend, renew or extend such Letter of Credit; and

Each notice shall constitute a representation that after giving effect to the requested issuance,
amendment, renewal or extension, as applicable, that each condition precedent set forth in
Section 6.02 has been satisfied with respect to such Letter of Credit.

     If requested by the Issuing Bank, the Borrower also shall submit a letter of credit
application on the Issuing Bank’s standard form in connection with any request for a Letter of
Credit.

          (c) Expiration Date. Each Performance Letter of Credit shall expire at or prior to
the close of business on the date three (3) years after the date of the issuance of such

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Letter of Credit (or, in the case of any renewal or extension thereof, one year after such
renewal or extension). Each Financial Letter of Credit shall expire at or prior to the close of
business on the date one (1) year after the date of the issuance of such Letter of Credit (or, in
the case of any renewal or extension thereof, one year after such renewal or extension). Each
Letter of Credit may provide for the renewal thereof for additional one (1) year periods; provided
that no such period shall extend beyond the Maturity Date unless on the date which is three (3)
months prior to the Maturity Date the Borrower has provided cash collateral to the Issuing Bank in
an amount equal to 105% of the face amount of all such Letters of Credit then outstanding.
Notwithstanding the foregoing, the Borrower may request Letters of Credit that expire up to two (2)
years after the Maturity Date provided that the Borrower provides cash collateral as set forth
above.

          (d) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each Lender hereby
acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit.
In consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank,
such Lender’s Applicable Percentage of each LC Disbursement made by the Issuing Bank and not
reimbursed by the Borrower on the date due as provided in Section 2.07(e), or of any
reimbursement payment required to be refunded to the Borrower for any reason. Each Lender
acknowledges and agrees that its obligation to acquire participations pursuant to this Section
2.07(d) in respect of Letters of Credit is absolute and unconditional and shall not be affected
by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or the reduction or termination of the
Commitments, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.

          (e) Reimbursement. If the Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative
Agent an amount equal to such LC Disbursement not later than 11:00 a.m., Central Time, on the date
that such LC Disbursement is made, if the Borrower shall have received notice of such LC
Disbursement prior to 9:00 a.m., Central Time, on such date, or, if such notice has not been
received by the Borrower prior to such time on such date, then not later than 11:00 a.m., Central
Time, on (i) the Business Day that the Borrower receives such notice, if such notice is received
prior to 9:00 a.m., Central Time, on the day of receipt, or (ii) the Business Day immediately
following the day that the Borrower receives such notice, if such notice is not received prior to
such time on the day of receipt; provided that the Borrower shall, subject to the conditions to
Borrowing set forth herein, be deemed to have requested, and the Borrower does hereby request under
such circumstances, that such payment be financed with a Revolving Loan ABR Borrowing in an
equivalent amount and, to the extent so financed, the Borrower’s obligation to make such payment
shall be discharged and replaced by the resulting Revolving Loan ABR Borrowing. If the Borrower
fails to make such payment when due, the Administrative Agent shall notify each Lender of the
applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such
Lender’s Applicable Percentage thereof. Promptly following receipt of such notice, each Lender
shall pay to the Administrative Agent its

32

 

Applicable Percentage of the payment then due from the Borrower, in the same manner as
provided in Section 2.05 with respect to Revolving Loans made by such Lender (and
Section 2.05 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and
the Administrative Agent shall promptly pay to the Issuing Bank the amounts so received by it from
the Lenders. Promptly following receipt by the Administrative Agent of any payment from the
Borrower pursuant to this Section 2.07(e), the Administrative Agent shall distribute such
payment to the Issuing Bank or, to the extent that Lenders have made payments pursuant to this
Section 2.07(e) to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as
their interests may appear. Any payment made by a Lender pursuant to this Section 2.07(e)
to reimburse the Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving
Loans as contemplated above) shall not constitute a Revolving Loan and shall not relieve the
Borrower of its obligation to reimburse such LC Disbursement.

          (f) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements as
provided in Section 2.07(e) shall be absolute, unconditional and irrevocable, and shall be
performed strictly in accordance with the terms of this Agreement under any and all circumstances
whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit,
any Letter of Credit Agreement or this Agreement, or any term or provision therein, (ii) any draft
or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in
any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by
the Issuing Bank under a Letter of Credit against presentation of a draft or other document that
does not comply with the terms of such Letter of Credit or any Letter of Credit Agreement, or (iv)
any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that
might, but for the provisions of this Section 2.07(f), constitute a legal or equitable
discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder. Neither
the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties shall
have any liability or responsibility by reason of or in connection with the issuance or transfer of
any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any
of the circumstances referred to in the preceding sentence), or any error, omission, interruption,
loss or delay in transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a drawing thereunder),
any error in interpretation of technical terms or any consequence arising from causes beyond the
control of the Issuing Bank; provided that the foregoing shall not be construed to excuse the
Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by the Borrower to the extent
permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank’s failure
to exercise care when determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of
gross negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a
court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised all requisite
care in each such determination. In furtherance of the foregoing and without limiting the
generality thereof, the parties agree that, with respect to documents presented which appear on
their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank
may, in its reasonable discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or information to the contrary,
or refuse to accept and make payment upon such documents if such documents are not in strict
compliance with the terms of such Letter of Credit.

33

 

          (g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of
Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Borrower by
telephone (confirmed by facsimile) of such demand for payment and whether the Issuing Bank has made
or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving
such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the
Lenders with respect to any such LC Disbursement.

          (h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then, until
the Borrower shall have reimbursed the Issuing Bank for such LC Disbursement (either with its own
funds or a Borrowing under Section 2.07(e)), the unpaid amount thereof shall bear interest,
for each day from and including the date such LC Disbursement is made to but excluding the date
that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to ABR
Loans. Interest accrued pursuant to this Section 2.07(h) shall be for the account of the
Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant
to Section 2.07(e) to reimburse the Issuing Bank shall be for the account of such Lender to
the extent of such payment.

          (i) Cash Collateralization. If (i) any Event of Default shall occur and be continuing
and the Borrower receives notice from the Administrative Agent or the Majority Lenders demanding
the deposit of cash collateral pursuant to this Section 2.07(i), (ii) the Borrower is
required to pay to the Administrative Agent the excess attributable to an LC Exposure in connection
with any prepayment pursuant to Section 3.04(b)(i), or (iii) the Borrower is required to
provide cash collateral to the Issuing Bank for Letters of Credit which will expire after the
Maturity Date pursuant to Section 2.07(c), then the Borrower shall deposit, in an account
with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the
Lenders, an amount in cash equal to, in the case of an Event of Default, the LC Exposure, and in
the case of a payment or deposit required by Section 3.04(b)(i) or Section 2.07(c),
the amount of such excess or deposit as provided in Section 3.04(b)(i) or Section
2.07(c) as of such date plus any accrued and unpaid interest thereon; provided that the
obligation to deposit such cash collateral shall become effective immediately, and such deposit
shall become immediately due and payable, without demand or other notice of any kind, upon the
occurrence of any Event of Default with respect to the Borrower or any Subsidiary described in
Section 10.01(h) or Section 10.01(i). The Borrower hereby grants to the
Administrative Agent, for the benefit of the Issuing Bank and the Lenders, an exclusive first
priority and continuing perfected security interest in and Lien on such account and all cash,
checks, drafts, certificates and instruments, if any, from time to time deposited or held in such
account, all deposits or wire transfers made thereto, any and all investments purchased with funds
deposited in such account, all interest, dividends, cash, instruments, financial assets and other
Property from time to time received, receivable or otherwise payable in respect of, or in exchange
for, any or all of the foregoing, and all proceeds, products, accessions, rents, profits, income
and benefits therefrom, and any substitutions and replacements therefor. The Borrower’s obligation
to deposit amounts pursuant to this Section 2.07(i) shall be absolute and unconditional,
without regard to whether any beneficiary of any such Letter of Credit has attempted to draw down
all or a portion of such amount under the terms of a Letter of Credit, and, to the fullest extent
permitted by applicable law, shall not be subject to any defense or be affected by a right of
set-off, counterclaim or recoupment which the Borrower or any of its Subsidiaries may now or
hereafter have against any

34

 

such beneficiary, the Issuing Bank, the Administrative Agent, the Lenders or any other Person
for any reason whatsoever. Such deposit shall be held as collateral securing the payment and
performance of the Borrower’s and the Guarantor’s obligations under this Agreement and the other
Loan Documents. The Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Other than any interest earned on the investment
of such deposits, which the Borrower may direct and shall be made at the Borrower’s risk and
expense, such deposits shall otherwise not bear interest. Interest or profits, if any, on such
investments shall accumulate in such account. Moneys in such account shall be applied by the
Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been
reimbursed and, to the extent not so applied, shall be held for the satisfaction of the
reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of
the Loans has been accelerated, be applied to satisfy other obligations of the Borrower and the
Guarantors under this Agreement or the other Loan Documents. If the Borrower is required to
provide an amount of cash collateral hereunder as a result of the occurrence of an Event of
Default, and the Borrower is not otherwise required to pay to the Administrative Agent the excess
attributable to an LC Exposure in connection with any prepayment, then such amount (to the extent
not applied as aforesaid) shall be returned to the Borrower within three (3) Business Days after
all Events of Default have been cured or waived.

          (j) Replacement of an Issuing Bank. The Issuing Bank may be replaced or resign at any
time by written agreement among the Borrower, the Administrative Agent, such resigning or replaced
Issuing Bank and, in the case of a replacement, the successor Issuing Bank. The Administrative
Agent shall notify the Lenders of any such resignation or replacement of an Issuing Bank. At the
time any such resignation or replacement shall become effective, the Borrower shall pay all unpaid
fees accrued for the account of the resigning or replaced Issuing Bank pursuant to Section
3.05(b). In the case of the replacement of an Issuing Bank, from and after the effective date
of such replacement, the successor Issuing Bank shall have all the rights and obligations of the
replaced Issuing Bank under this Agreement with respect to Letters of Credit to be issued
thereafter and references herein to the term “Issuing Bank” shall be deemed to refer to
such successor or to any previous Issuing Bank, or to such successor and all previous Issuing
Banks, as the context shall require. After the resignation or replacement of an Issuing Bank
hereunder, the resigning or replaced Issuing Bank shall remain a party hereto and shall continue to
have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters
of Credit issued by it prior to such resignation or replacement, but shall not be required to issue
additional Letters of Credit.

          (k) Existing Letters of Credit. On the Closing Date, without further action, all
Existing Letters of Credit shall be deemed issued under this Agreement.

     Section 2.08 Swing Line Loans.

          (a) General. Subject to the terms and conditions set forth herein, the Swing Line
Lender agrees to make Swing Line Loans to the Borrower from time to time during the Availability
Period, in aggregate amounts that are integral multiples of $100,000 and not less than $100,000,
and in an aggregate principal amount at any time outstanding that will not result in (i) the
aggregate principal amount of outstanding Swing Line Loans exceeding 10% of the aggregate
Commitments or (ii) the total Revolving Credit Exposures exceeding the total

35

 

Commitments; provided that the Swing Line Lender shall not be required to make a Swing Line
Loan to refinance an outstanding Swing Line Loan. Within the foregoing limits and subject to the
terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Swing Line
Loans.

          (b) Requests and Procedures. To request a Swing Line Loan, the Borrower shall notify
the Swing Line Lender of such request by telephone (confirmed by telecopy), not later than 2:00
p.m., Central Time, on the day of a proposed Swing Line Loan. Each such notice shall be
irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Swing Line Lender
of a written Borrowing Request in substantially the form of Exhibit G, and shall specify
the following information in compliance with Section 2.02:

               (i) the aggregate amount of the requested Borrowing;

               (ii) the date of such Borrowing, which shall be a Business Day; and

               (iii) the location and number of the Borrower’s account to which funds are to be disbursed,
which shall comply with the requirements of this Section 2.08.

     Each such Borrowing Request shall constitute a representation that the amount of the requested
Borrowing shall not cause the total Revolving Credit Exposures to exceed the total Commitments.
The Swing Line Lender shall make each Swing Line Loan available to the Borrower by means of a
credit to the general deposit account of the Borrower with the Swing Line Lender by 5:00 p.m.,
Central Time, on the requested date of such Swing Line Loan.

          (c) Participations. The Swing Line Lender may by written notice given to the
Administrative Agent not later than 10:00 a.m., Central Time, on any Business Day require the
Lenders to acquire participations on such Business Day in all or a portion of the Swing Line Loans
outstanding. Such notice shall specify the aggregate amount of Swing Line Loans in which Lenders
will participate. Promptly upon receipt of such notice, the Administrative Agent will give notice
thereof to each Lender, specifying in such notice such Lender’s Applicable Percentage of such Swing
Line Loan. Each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Administrative Agent, for the account of the Swing Line Lender, such
Lender’s Applicable Percentage of such Swing Line Loan or Loans. Each Lender acknowledges and
agrees that its obligation to acquire participations in Swing Line Loans pursuant to this paragraph
is absolute and unconditional and shall not be affected by any circumstance whatsoever, including
the occurrence and continuance of a Default or reduction or termination of the Commitments, and
that each such payment shall be made without any offset, abatement, withholding or reduction
whatsoever. Each Lender shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 2.05 with respect to
Revolving Loans made by such Lender (and Section 2.05 shall apply, mutatis mutandis, to the
payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Swing
Line Lender the amounts so received by it from the Lenders. The Administrative Agent shall notify
the Borrower of any participations in any Swing Line Loan acquired pursuant to this paragraph, and
thereafter payments in respect of such Swing Line Loan shall be made to the Administrative Agent
and not to the Swing Line Lender. Any amounts received by the Swing Line Lender from the Borrower

36

 

(or other party on behalf of the Borrower) in respect of a Swing Line Loan after receipt by
the Swing Line Lender of the proceeds of a sale of participations therein shall be promptly
remitted to the Administrative Agent; any such amounts received by the Administrative Agent shall
be promptly remitted by the Administrative Agent to the Lenders that shall have made their payments
pursuant to this paragraph and to the Swing Line Lender, as their interests may appear; provided
that, any such payment so remitted shall be repaid to the Swing Line Lender or to the
Administrative Agent, as applicable, if and to the extent such payment is required to be refunded
to the Borrower for any reason. The purchase of participations in a Swing Line Loan pursuant to
this paragraph shall not relieve the Borrower of any default in the payment thereof.

          (d) Notice. The Swing Line Lender shall provide to the Administrative Agent daily
notices of the amount of the then outstanding Swing Line Loans.

ARTICLE III

Payments of Principal and Interest; Prepayments; Fees

     Section 3.01 Repayment of Loans. The Borrower hereby unconditionally promises to pay
(a) to the Administrative Agent for the account of each Lender the then unpaid principal amount of
each Revolving Loan on the Termination Date and (b) to the Swing Line Lender the then unpaid
principal amount of each Swing Line Loan on the earliest of (i) the next Swing Line Payment Date or
(ii) the Termination Date.

     Section 3.02 Interest.

          (a) ABR Loans. The Loans comprising each ABR Borrowing (including each Swing Line
Loan) shall bear interest at the Alternate Base Rate plus the Applicable Margin, but in no event to
exceed the Highest Lawful Rate.

          (b) Eurodollar Loans. The Loans comprising each Eurodollar Borrowing shall bear
interest at the sum of (i) the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing, plus (ii) the Applicable Margin, but in no event to exceed the Highest Lawful Rate.

          (c) Post-Default Rate. Notwithstanding the foregoing, if an Event of Default has
occurred and is continuing, or if any principal of or interest on any Loan or any fee or other
amount payable by the Borrower or any other Loan Party hereunder or under any other Loan Document
is not paid when due, whether at stated maturity, upon acceleration or otherwise, then all Loans
outstanding, in the case of an Event of Default, and such overdue amount, in the case of a failure
to pay amounts when due, shall bear interest, after as well as before judgment, at a rate per annum
equal to two percent (2%) plus the rate applicable to ABR Loans as provided in Section
3.02(a), but in no event to exceed the Highest Lawful Rate.

          (d) Interest Payment Dates. Accrued interest on each Loan shall be payable in arrears
on each Interest Payment Date for such Loan and on the Termination Date; provided that (i) interest
accrued pursuant to Section 3.02(c) shall be payable on demand, (ii) in the event of any
repayment or prepayment of any Loan (other than an optional prepayment of an ABR Loan prior to the
Termination Date), accrued interest on the principal amount repaid or prepaid shall be payable on
the date of such repayment or prepayment, and (iii) in the event of any conversion

37

 

of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued
interest on such Loan shall be payable on the effective date of such conversion.

          (e) Interest Rate Computations. All interest hereunder shall be computed on the basis
of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case
interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), except
that interest computed by reference to the Alternate Base Rate at times when the Alternate Base
Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days
in a leap year), and in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate
or LIBO Rate shall be determined by the Administrative Agent, or, in the context of Swing Line
Loans, the Swing Line Lender, and such determination shall be conclusive absent manifest error, and
be binding upon the parties hereto.

     Section 3.03 Alternate Rate of Interest. If prior to the commencement of any Interest
Period for a Eurodollar Borrowing:

          (a) the Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO
Rate or the LIBO Rate for such Interest Period; or

          (b) the Administrative Agent is advised by the Majority Lenders that the Adjusted LIBO Rate or
LIBO Rate, as applicable, for such Interest Period will not adequately and fairly reflect the cost
to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest
Period;

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or facsimile as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective, and (ii) if any
Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR
Borrowing.

     Section 3.04 Prepayments.

          (a) Optional Prepayments.

               (i) The Borrower shall have the right at any time and from time to time to prepay any
Borrowing in whole or in part, subject to prior notice in accordance with Section
3.04(a)(ii).

               (ii) The Borrower shall notify the Administrative Agent by telephone (confirmed by facsimile
or e-mail) of any prepayment (or, in the case of prepayment of a Swing Line Loan, the Swing Line
Lender) hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 11:00
a.m., Central Time, three (3) Business Days before the date of prepayment, (ii) in the case of
prepayment of an ABR Borrowing, not later than 11:00 a.m., Central Time, one (1) Business Day
before the date of prepayment, or (iii) in the case of

38

 

prepayment of a Swing Line Loan, not later than 10:00 a.m., Central Time, on the date of
prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid. Promptly following receipt of
any such notice relating to a Eurodollar Borrowing or a Revolving Loan ABR Borrowing, the
Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of
any Borrowing shall be in an amount that would be permitted in the case of an advance of a
Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Borrowing
shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments pursuant to
Section 3.04(a) shall be accompanied by accrued interest to the extent required by
Section 3.02.

          (b) Mandatory Prepayments.

               (i) If, after giving effect to any termination or reduction of the Commitments pursuant to
Section 2.06(b), the total Revolving Credit Exposures exceeds the total Commitments, then
the Borrower shall (a) prepay the Borrowings on the date of such termination or reduction in an
aggregate principal amount equal to such excess, and (b) if any excess remains after prepaying all
of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the
Lenders an amount equal to such excess to be held as cash collateral as provided in Section
2.07(i).

               (ii) Each prepayment of Borrowings pursuant to Section 3.04(b) shall be applied
ratably to the Loans included in the prepaid Borrowings. Prepayments pursuant to Section
3.04(b) shall be accompanied by accrued interest to the extent required by Section
3.02. Each prepayment of Borrowings pursuant to Section 3.04(b) shall be applied,
first, ratably to any Swing Line Loans then outstanding, second, to any Revolving Loan ABR
Borrowings then outstanding, and, third, to any Eurodollar Borrowings then outstanding, and if more
than one Eurodollar Borrowing is then outstanding, to each such Eurodollar Borrowing in order of
priority beginning with the Eurodollar Borrowing with the least number of days remaining in the
Interest Period applicable thereto and ending with the Eurodollar Borrowing with the most number of
days remaining in the Interest Period applicable thereto.

          (c) No Premium or Penalty. Prepayments permitted or required under this Section
3.04 shall be without premium or penalty, except as required under Section 5.02.

     Section 3.05 Fees.

          (a) Commitment Fees. The Borrower agrees to pay to the Administrative Agent for the
account of each Lender a commitment fee, which shall accrue at the rate per annum of 0.50% on the
average daily amount of the unused amount of the Commitment of such Lender during the period from
and including the Effective Date to but excluding the Termination Date. For purposes of this
Section 3.05(a), Swing Line Loans will not be considered utilizations of the Commitments.
Accrued commitment fees shall be payable in arrears on the last day of March, June, September and
December of each year and on the Termination Date, commencing on the first such date to occur after
the date hereof. All commitment fees shall be computed on the basis of a year of 360 days, unless
such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on
the basis of a year of 365 days (or 366 days in a leap

39

 

year), and shall be payable for the actual number of days elapsed (including the first day but
excluding the last day).

          (b) Letter of Credit Fees. The Borrower agrees to pay (i) to the Administrative Agent
for the account of each Lender a participation fee with respect to its participations in Financial
Letters of Credit, which shall accrue at the same Applicable Margin used to determine the interest
rate applicable to Eurodollar Loans on the average daily amount of such Lender’s LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period
from and including the date of this Agreement to but excluding the later of the date on which such
Lender’s Commitment terminates and the date on which such Lender ceases to have any LC Exposure;
(ii) to the Administrative Agent for the account of each Lender a participation fee with respect to
Performance Letters of Credit at a per annum rate based upon the Borrower’s Consolidated Leverage
Ratio as provided in the Consolidated Leverage Ratio Grid below:

Consolidated Leverage Ratio Grid

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	Consolidated Total 

Leverage Ratio

	 	< 1.5x
	 	≥ 1.5x < 2.5x
	 	≥ 2.5x < 3.5x
	 	≥ 3.5x
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Performance Letter
of Credit Fee Rate

	 	 	1.35	%	 	 	1.50	%	 	 	1.65	%	 	 	1.80	%

; provided that for the period commencing on the Effective Date and ending six months thereafter,
the participation fee for Financial Letters of Credit shall be 2.50% and the participation fee for
Performance Letters of Credit shall be 1.50%; provided further, if an Event of Default has occurred
and is continuing, or if any principal of or interest on any Loan or any fee or other amount
payable by the Borrower or any Guarantor hereunder or under any other Loan Document is not paid
when due, whether at stated maturity, upon acceleration or otherwise, then the participation fee
under clauses (i) and (ii) shall increase by a rate per annum equal to two percent (2%); (iii) to
the Issuing Bank a fronting fee, which shall accrue at the rate of 0.25% per annum on the average
daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the date of this Agreement to but excluding the
later of the date of termination of the Commitments and the date on which there ceases to be any LC
Exposure, provided that in no event shall such fee be less than $500 during any quarter; and (iv)
to the Issuing Bank, for its own account, its standard fees with respect to the issuance,
amendment, transfer, renewal or extension of any Letter of Credit or processing of drawings
thereunder. Participation fees and fronting fees accrued through and including the last day of
March, June, September and December of each year shall be payable on the third (3rd) Business Day
following such last day, commencing on the first such date to occur after the date of this
Agreement; provided that all such fees shall be payable on the Termination Date and any such fees
accruing after the Termination Date shall be payable on demand. Any other fees payable to the
Issuing Bank pursuant to this Section 3.05(b) shall be payable within ten (10) days after
demand. All participation fees and fronting fees shall be computed on the basis of a year of 360
days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be
computed on the basis of a year of 365 days (or 366

40

 

days in a leap year), and shall be payable for the actual number of days elapsed (including the
first day but excluding the last day).

          (c) Administrative Agent Fees. The Borrower agrees to pay to the Administrative
Agent, for its own account, fees payable in the amounts and at the times set forth in the Fee
Letter.

ARTICLE IV

Payments; Pro Rata Treatment; Sharing of Set-offs

     Section 4.01 Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

          (a) Payments by the Borrower. The Borrower shall make each payment required to be
made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or
of amounts payable under Section 5.01, Section 5.02, Section 5.03 or
otherwise) prior to (i) in the case of Swing Line Loans, 10:00 a.m., Central Time, or (ii) in all
other cases, 11:00 a.m., Central Time, on the date when due, in immediately available funds,
without defense, deduction, recoupment, set-off or counterclaim. Fees, once paid, shall be fully
earned and shall not be refundable under any circumstances absent manifest error. Any amounts
received after such time on any date may, in the discretion of the Administrative Agent or Swing
Line Lender, as applicable, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to the Administrative
Agent at its offices specified in Section 12.01, except payments to be made directly to the
Issuing Bank or Swing Line Lender as expressly provided herein and except that payments pursuant to
Section 5.01, Section 5.02, Section 5.03 and Section 12.03 shall be
made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate recipient promptly
following receipt thereof. If any payment hereunder shall be due on a day that is not a Business
Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case
of any payment accruing interest, interest thereon shall be payable for the period of such
extension. All payments hereunder shall be made in U.S. Dollars.

          (b) Application of Insufficient Payments. If at any time insufficient funds are
received by and available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied
(i) first, towards payment of interest and fees then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of interest and fees then due to such parties, and
(ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of principal and
unreimbursed LC Disbursements then due to such parties.

          (c) Sharing of Payments by Lenders. If any Lender shall, by exercising any right of
setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on
any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a
proportion of the aggregate amount of its Loans and other such obligations greater than its pro
rata share thereof as provided herein, then the Lender receiving such greater proportion shall (i)
notify the Administrative Agent of such fact, and (ii) purchase (for cash at

41

 

face value) participations in the Loans and such other obligations of the other Lenders, or
make such other adjustments as shall be equitable, so that the benefit of all such payments shall
be shared by the Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Loans and other amounts owing them; provided that (A) if any
such participations are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price restored to the extent of
such recovery, without interest, and (B) the provisions of this Section 4.01(c) shall not
be construed to apply to (1) any payment made by the Borrower pursuant to and in accordance with
the express terms of this Agreement or (2) any payment obtained by a Lender as consideration for
the assignment of or sale of a participation in any of its Loans or participations in LC
Disbursements to any assignee or participant. Each Loan Party consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against each Loan Party rights of
setoff and counterclaim with respect to such participation as fully as if such Lender were a direct
creditor of each Loan Party in the amount of such participation.

     Section 4.02 Payments by the Borrower; Presumptions by the Administrative Agent.
Unless the Administrative Agent shall have received notice from the Borrower prior to the date on
which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing
Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume
that the Borrower has made such payment on such date in accordance herewith and may, in reliance
upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount
due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or
the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender or the Issuing Bank, with interest
thereon, for each day from and including the date such amount is distributed to it to but excluding
the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation.

     Section 4.03 Certain Deductions by the Administrative Agent. If any Lender shall fail
to make any payment required to be made by it pursuant to Section 2.05(a), Section
2.07(d), Section 2.07(e), Section 4.02 or otherwise hereunder then the
Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), (i)
apply any amounts thereafter received by the Administrative Agent for the account of such Lender
and for the benefit of the Administrative Agent or the Issuing Bank to satisfy such Lender’s
obligations hereunder until all such unsatisfied obligations are fully paid and/or (ii) hold any
such amounts in a segregated account as cash collateral for, and application to, any future funding
obligations of such Lender hereunder, in the case of each of (i) and (ii) above, in any order as
determined by the Administrative Agent in its discretion.

     Section 4.04 Defaulting Lenders. Notwithstanding any provision of this Agreement to
the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply
for so long as such Lender is a Defaulting Lender:

          (a) fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting
Lender pursuant to Section 3.05(a);

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          (b) the Commitment of such Defaulting Lender shall not be included in determining whether all
Lenders or the Majority Lenders have taken or may take any action hereunder (including any consent
to any amendment or waiver pursuant to Section 12.02).

          (c) if any LC Exposure exists at the time a Lender becomes a Defaulting Lender then:

               (i) all or any part of such LC Exposure shall be reallocated among the non-Defaulting Lenders
in accordance with their respective Applicable Percentages but only to the extent (x) the sum of
all non-Defaulting Lenders’ Revolving Credit Exposures plus such Defaulting Lender’s LC Exposure
does not exceed the total of all non-Defaulting Lenders’ Commitments and (y) the conditions set
forth in Section 6.02 are satisfied at such time; and

               (ii) if the reallocation described in clause (i) above cannot, or can only partially, be
effected, the Borrower shall within one (1) Business Day following notice by the Administrative
Agent cash collateralize such Defaulting Lender’s LC Exposure (after giving effect to any partial
reallocation pursuant to clause (i) above) in accordance with the procedures set forth in
Section 2.07(i) for so long as such LC Exposure is outstanding;

               (iii) if the Borrower cash collateralizes any portion of such Defaulting Lender’s LC Exposure
pursuant to this Section 4.04(c), the Borrower shall not be required to pay any fees to
such Defaulting Lender pursuant to Section 3.05(b) with respect to such Defaulting Lender’s
LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;

               (iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to this
Section 4.04(c), then the fees payable to the Lenders pursuant to Section 3.05(a)
and Section 3.05(b) shall be adjusted in accordance with such non-Defaulting Lenders’
Applicable Percentages; or

               (v) if any Defaulting Lender’s LC Exposure is neither cash collateralized nor reallocated
pursuant to this Section 4.04(c), then, without prejudice to any rights or remedies of the
Issuing Bank or any Lender hereunder, all commitment fees that otherwise would have been payable to
such Defaulting Lender (solely with respect to the portion of such Defaulting Lender’s Commitment
that was utilized by such LC Exposure) under Section 3.05(a) and letter of credit fees
payable under Section 3.05(b) with respect to such Defaulting Lender’s LC Exposure shall be
payable to the Issuing Bank until such LC Exposure is cash collateralized and/or reallocated; and

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

               (i) all or any part of such Defaulting Lender’s Swing Line Exposure shall be reallocated among
the Non-Defaulting Lenders in accordance with their respective Applicable Percentages (calculated
without regard to such Defaulting Lender’s Commitment) but only to the extent (x) the sum of all
Non-Defaulting Lenders’ Revolving Credit Exposures plus such Defaulting Lender’s LC Exposure does
not exceed the total of all Non-Defaulting Lenders’ Commitments and (y) the conditions set forth in
Section 6.02 are satisfied at such time;

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               (ii) if the reallocation described in clause (i) above cannot, or can only partially, be
effected, then the Borrower shall within one Business Day following notice by the Administrative
Agent cash collateralize such Defaulting Lender’s Swing Line Exposure (after giving effect to any
partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in
Section 10.02 for so long as such Swing Line Exposure is outstanding; or

               (iii) if the Swing Line Exposure of the Non-Defaulting Lenders is reallocated pursuant to this
Section 4.04(d), then the fees payable to the Lenders pursuant to Section 3.05(a)
and Section 3.05(b) shall be adjusted in accordance with such Non-Defaulting Lenders’
Applicable Percentages (calculated without regard to such Defaulting Lender’s Commitment).

          (e) so long as any Lender is a Defaulting Lender, the Issuing Bank shall not be required to
issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure of
such Defaulting Lender will be 100% covered by the Commitments of the non-Defaulting Lenders and/or
cash collateral will be provided by the Borrower in accordance with Section 4.04(c), and
participating interests in any such newly issued or increased Letter of Credit shall be allocated
among non-Defaulting Lenders in a manner consistent with Section 4.04(c)(i) (and any
Defaulting Lender shall not participate therein). For the avoidance of doubt, the existence of a
Defaulting Lender shall not affect the obligation of the Issuing Bank to issue Letters of Credit
but shall only reduce the LC Commitment by the amount allocated to such Defaulting Lender to the
extent the Defaulting Lender’s obligations under Section 2.07(d) are not reallocated to
other non-Defaulting Lenders or cash collateralized.

     In the event that the Administrative Agent, the Borrower, the Swing Line Lender and the
Issuing Bank each agrees that a Defaulting Lender has adequately remedied all matters that caused
such Defaulting Lender to be a Defaulting Lender, then the LC Exposure of the non-Defaulting
Lenders shall be readjusted to reflect the inclusion of such Defaulting Lender’s Commitment and on
such date such Defaulting Lender shall purchase at par such of the Revolving Loans of the other
Lenders as the Administrative Agent shall determine may be necessary in order for such Defaulting
Lender to hold such Revolving Loans in accordance with its Applicable Percentage.

          (f) So long as any Lender is a Defaulting Lender, the Swing Line Lender shall not be required
to make any Swing Line Loan, unless it is satisfied that the related exposure of such Defaulting
Lender will be 100% covered by the Commitments of the Non-Defaulting Lenders and/or cash collateral
will be provided by the Borrower in accordance with Section 4.04(d), and participating
interests in any such newly made Swing Line Loan shall be allocated among Non-Defaulting Lenders in
a manner consistent with Section 2.08(c) (and Defaulting Lenders shall not participate
therein). For the avoidance of doubt, the existence of a Defaulting Lender shall not affect the
obligation of the Swing Line Lender to make Swing Line Loans but shall only reduce the Swing Line
limit set forth in Section 2.08(a) by the amount allocated to such Defaulting Lender to the
extent the Defaulting Lender’s obligations under Section 2.08(c) are not reallocated to
other non-Defaulting Lenders or cash collateralized.

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ARTICLE V

Increased Costs; Break Funding Payments; Taxes; Illegality

     Section 5.01 Increased Costs.

          (a) Increased Costs Generally. If any Change in Law shall:

               (i) impose, modify or deem applicable any reserve, special deposit or similar requirement
against assets of, deposits with or for the account of, or credit extended or participated in by,
any Lender (except any reserve requirement reflected in the Adjusted LIBO Rate); or

               (ii) impose on any Lender or the Issuing Bank or the London interbank market any other
condition affecting this Agreement or Eurodollar Loans made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan), or to
reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal,
interest or any other amount), then, upon request of such Lender, the Borrower will pay to such
Lender, such additional amount or amounts as will compensate such Lender, for such additional costs
incurred or reduction suffered.

          (b) Capital Requirements. If any Lender or the Issuing Bank determines that any
Change in Law regarding capital requirements has or would have the effect of reducing the rate of
return on such Lender’s or the Issuing Bank’s capital or on the capital of such Lender’s or the
Issuing Bank’s holding company, if any, as a consequence of this Agreement, the Commitments of such
Lender or the Loans made by, or participations in Letters of Credit or Swing Line Loans held by,
such Lender, or the Letters of Credit issued by the Issuing Bank or the Swing Line Loans made by
the Swing Line Lender, to a level below that which such Lender or the Issuing Bank or such Lender’s
or the Issuing Bank’s holding company could have achieved but for such Change in Law (taking into
consideration such Lender’s or the Issuing Bank’s policies and the policies of such Lender’s or the
Issuing Bank’s holding company with respect to capital adequacy), then from time to time the
Borrower will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or
amounts as will compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s
holding company for any such reduction suffered.

          (c) Certificates for Reimbursement. A certificate of a Lender or the Issuing Bank
setting forth the amount or amounts necessary to compensate such Lender or the Issuing Bank or its
holding company, as the case may be, as specified in Section 5.01(a) or (b) and
reasonable detailed calculations therefor shall be delivered to the Borrower shall be conclusive
absent manifest error. The Borrower shall pay such Lender or the Issuing Bank, as the case may be,
the amount shown as due on any such certificate within ten (10) days after receipt thereof.

          (d) Effect of Failure or Delay in Requesting Compensation. Failure or delay on the
part of any Lender or the Issuing Bank to demand compensation pursuant to this Section 5.01
shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such
compensation; provided that the Borrower shall not be required to compensate a Lender or the

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Issuing Bank pursuant to this Section 5.01 for any increased costs incurred or
reductions suffered more than 180 days prior to the date that such Lender or the Issuing Bank, as
the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s or the Issuing Bank’s intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the 180-day period referred to above shall be extended to include the period of
retroactive effect thereof.

     Section 5.02 Break Funding Payments. In the event of (a) the payment of any principal
of any Eurodollar Loan other than on the last day of an Interest Period applicable thereto
(including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan into an
ABR Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to
borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice
delivered pursuant hereto, or (d) the assignment of any Eurodollar Loan other than on the last day
of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to
Section 5.04(a), then, in any such event, the Borrower shall compensate each Lender for the
loss, cost and expense attributable to such event. In the case of a Eurodollar Loan, such loss,
cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be
the excess, if any, of (i) the amount of interest which would have accrued on the principal amount
of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable
to such Loan, for the period from the date of such event to the last day of the then current
Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the
period that would have been the Interest Period for such Loan), over (ii) the amount of interest
which would accrue on such principal amount for such period at the interest rate which such Lender
would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable
amount and period from other banks in the eurodollar market.

     A certificate of any Lender setting forth any amount or amounts that such Lender is entitled
to receive pursuant to this Section 5.02 and reasonable detained calculations therefor
shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower
shall pay such Lender the amount shown as due on any such certificate within ten (10) days after
receipt thereof.

     Section 5.03 Taxes.

          (a) Payments Free of Taxes. Any and all payments by or on account of any obligation
of the Borrower or any Guarantor under any Loan Document shall be made free and clear of and
without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower or any
Guarantor shall be required by applicable law to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that after making all
required deductions (including deductions applicable to additional sums payable under this
Section 5.03(a)), the Administrative Agent, Lender or Issuing Bank, as the case may be,
receives an amount equal to the sum it would have received had no such deductions been made, (ii)
the Borrower or such Guarantor shall make such deductions and (iii) the Borrower or such Guarantor
shall timely pay the full amount deducted to the relevant Governmental Authority in accordance with
applicable law.

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          (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of
Section 5.03(a), the Borrower shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

          (c) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent, each Lender and the Issuing Bank, within ten (10) days after written demand therefor, for
the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes
imposed or asserted on or attributable to amounts payable under this Section 5.03) paid by
the Administrative Agent, such Lender or the Issuing Bank, as the case may be, and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability under this
Section 5.03 delivered to the Borrower by a Lender or the Issuing Bank (with a copy to the
Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender or
the Issuing Bank, shall be conclusive absent manifest error.

          (d) Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by the Borrower or a Guarantor to a Governmental Authority, the Borrower shall
deliver to the Administrative Agent the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of the return reporting such payment or
other evidence of such payment reasonably satisfactory to the Administrative Agent.

          (e) Status of Lenders. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the Borrower is resident
for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments
under this Agreement or any other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or reasonably requested by
the Borrower or the Administrative Agent, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without withholding or at a
reduced rate of withholding. In addition, any Lender, if requested by the Borrower or the
Administrative Agent, shall deliver such other documentation prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the
Administrative Agent to determine whether or not such Lender is subject to backup withholding or
information reporting requirements.

          (f) Tax Refunds. If the Administrative Agent or a Lender determines, in its
reasonable discretion, that it has received a refund of any Taxes or Other Taxes as to which it has
been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section 5.03, it shall pay over such refund to the Borrower (but only to
the extent of indemnity payments made, or additional amounts paid, by the Borrower under this
Section 5.03 with respect to the Taxes or Other Taxes giving rise to such refund), net of
all out-of-pocket expenses of the Administrative Agent or such Lender and without interest (other
than any interest paid by the relevant Governmental Authority with respect to such refund);
provided, that the Borrower, upon the request of the Administrative Agent or such Lender, agrees to
repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed
by

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the relevant Governmental Authority) to the Administrative Agent or such Lender in the event
the Administrative Agent or such Lender is required to repay such refund to such Governmental
Authority. This Section 5.03 shall not be construed to require the Administrative Agent
or any Lender to make available its tax returns (or any other information relating to its taxes
which it deems confidential) to the Borrower or any other Person.

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

     Section 5.04 Mitigation Obligations; Replacement of Lenders.

          (a) Designation of Different Lending Office. If any Lender requests compensation
under Section 5.01, or requires the Borrower to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section 5.03, then
such Lender shall use reasonable efforts to designate a different lending office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment
(i) would eliminate or reduce amounts payable pursuant to Section 5.01 or Section
5.03, as the case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The
Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

          (b) Replacement of Lenders. If any Lender requests compensation under Section
5.01, or if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 5.03, or if any
Lender is a Defaulting Lender or if any Lender shall not consent to a proposed amendment, waiver,
consent or release with respect to any Loan Document that requires the consent of each Lender and
that has been consented to by Lenders holding more than 66-2/3% of the Commitments, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in Section 12.04(a)), all of its interests, rights and
obligations under this Agreement and the related Loan Documents to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts such assignment);
provided that (i) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and participations in LC Disbursements and Swing Line Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder and

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under the other Loan Documents (including any amounts under Section 5.02), from the
assignee (to the extent of such outstanding principal and accrued interest and fees) or the
Borrower (in the case of all other amounts), (ii) in the case of any such assignment resulting from
a claim for compensation under Section 5.01 or payments required to be made pursuant to
Section 5.03, such assignment will result in a reduction in such compensation or payments
thereafter, and (iii) such assignment does not conflict with applicable law. A Lender shall not be
required to make any such assignment or delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and
delegation cease to apply.

     Section 5.05 Illegality. Notwithstanding any other provision of this Agreement, in
the event that it becomes unlawful for any Lender or its applicable lending office to honor its
obligation to make or maintain Eurodollar Loans either generally or having a particular Interest
Period hereunder, then (a) such Lender shall promptly notify the Borrower and the Administrative
Agent thereof and such Lender’s obligation to make such Eurodollar Loans shall be suspended (the
“Affected Loans”) until such time as such Lender may again make and maintain such
Eurodollar Loans and (b) all Affected Loans which would otherwise be made by such Lender shall be
made instead as ABR Loans (and, if such Lender so requests by notice to the Borrower and the
Administrative Agent, all Affected Loans of such Lender then outstanding shall be automatically
converted into ABR Loans on the date specified by such Lender in such notice) and, to the extent
that Affected Loans are so made as (or converted into) ABR Loans, all payments of principal which
would otherwise be applied to such Lender’s Affected Loans shall be applied instead to its ABR
Loans.

ARTICLE VI

Conditions Precedent

     Section 6.01 Effective Date. The Administrative Agent shall notify the Borrower and
the Lenders of the Effective Date, and such notice shall be conclusive and binding. The obligations
of the Lenders to make Loans, the Issuing Bank to issue Letters of Credit and the Swing Line
Lender to make Swing Line Loans hereunder shall not become effective unless each of the following
conditions is satisfied (or waived in accordance with Section 12.02) at or prior to 1:00
p.m., Central Time, on March 31, 2011 (and, in the event such conditions are not so satisfied or
waived, the Commitments shall terminate at such time):

          (a) The Administrative Agent, the Arrangers and the Lenders shall have received all
commitment, facility and agency fees and all other fees and amounts due and payable on or prior to
the Effective Date, including, to the extent invoiced, reimbursement or payment of all reasonable
out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder (including,
without limitation, the reasonable fees and expenses of Vinson & Elkins L.L.P., counsel to the
Administrative Agent).

          (b) The Administrative Agent shall have received a certificate of the Secretary or an
Assistant Secretary of each Loan Party setting forth (i) resolutions of its board of directors (or
its equivalent) with respect to the authorization of such Loan Party to execute and deliver the
Loan Documents to which it is a party and to enter into the Transactions contemplated in those
documents, (ii) the officers of such Loan Party (A) who are authorized to sign the Loan

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Documents to which such Loan Party is a party and (B) who will, until replaced by another
officer or officers duly authorized for that purpose, act as its representative for the purposes of
signing documents and giving notices and other communications in connection with this Agreement and
the Transactions contemplated hereby, (iii) specimen signatures of such authorized officers, and
(iv) the Organization Documents of such Loan Party, certified as being true and complete. The
Administrative Agent and the Lenders may conclusively rely on such certificate until the
Administrative Agent receives notice in writing from such Loan Party to the contrary.

          (c) The Administrative Agent shall have received certificates of the appropriate state
agencies with respect to the existence, qualification and good standing of each Loan Party.

          (d) The Administrative Agent shall have received from each party hereto counterparts (in such
number as may be requested by the Administrative Agent) of this Agreement signed on behalf of such
party.

          (e) The Administrative Agent shall have received duly executed Notes payable to the order of
each Lender that has requested a Note in a principal amount equal to its Commitment, dated as of
the date hereof.

          (f) The Administrative Agent shall have received from each party thereto duly executed
counterparts (in such number as may be requested by the Administrative Agent) of the Security
Instruments. In connection with the execution and delivery of the Security Instruments, the
Administrative Agent shall:

               (i) be reasonably satisfied that the Security Instruments create first priority, perfected
Liens (subject only to Liens contemplated by Section 9.03 which are permitted to attach to or
encumber the Collateral) on all of the material tangible and intangible personal Property of the
Loan Parties (excluding equipment or vehicles subject to certificates of title, deposit accounts
and certain other Property which the Administrative Agent determines the cost of creating and
perfecting a Lien does not warrant such action); and

               (ii) have received certificates, together with undated, blank stock powers for each such
certificate, representing all of the issued and outstanding Equity Interests of each Guarantor, to
the extent certificated and 65% of the issued and outstanding Equity Interests of all Foreign
Subsidiaries owned directly by the Borrower or a Guarantor.

          (g) The Administrative Agent shall have received an opinion of (i) Andrews Kurth LLP, special
counsel to the Borrower, and (ii) local counsel in Maryland, in each case, in form and substance
reasonably satisfactory to the Administrative Agent.

          (h) The Administrative Agent shall have received certificates of insurance coverage of the
Borrower evidencing that the Borrower is carrying insurance in accordance with Section
7.12.

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          (i) The Administrative Agent shall have received a certificate of a Responsible Officer
of the Borrower certifying that the Borrower has received all consents and approvals required by
Section 7.03.

          (j) The Administrative Agent shall have received the audited consolidated financial statements
for the Borrower and its Consolidated Subsidiaries for the fiscal year ended December 31, 2010.

          (k) The Administrative Agent shall have received appropriate UCC search certificates
reflecting no prior Liens encumbering the Properties of the Borrower and the Subsidiaries for
Delaware, Maryland, as applicable, and any other jurisdiction requested by the Administrative
Agent; other than those being assigned or released on or prior to the Effective Date or Liens
permitted by Section 9.03.

          (l) The Administrative Agent shall be reasonably satisfied that after the making of the
initial Loans, the application of the proceeds thereof and after giving effect to the other
Transactions contemplated hereby, the Borrower will have unused capacity under the facility of not
less than $200,000,000, including evidence that the loans and other Indebtedness of the Borrower
under the Existing Credit Agreement shall have been paid in full with the proceeds of the initial
funding and the commitments of the lender thereunder terminated.

          (m) The Administrative Agent shall have received appropriate termination statements, mortgage
releases and such other documentation as shall be necessary to terminate, release or assign to the
Administrative Agent all Liens encumbering the Properties of the Borrower and the Subsidiaries,
other than Liens permitted by Section 9.03.

          (n) The Administrative Agent shall have received a solvency certificate from a Financial
Officer, in form and substance reasonably satisfactory to the Administrative Agent and the Lenders,
certifying that after giving effect to the Transactions on the Effective Date, each of the Loan
Parties is Solvent.

          (o) Each document (including any Uniform Commercial Code financing statement) required by this
Agreement or under law or reasonably requested by the Administrative Agent to be filed, registered
or recorded in order to create in favor of the Administrative Agent, for the benefit of the
Lenders, a perfected Lien on the Collateral described therein, prior and superior in right to any
other Person (other than Liens permitted by Section 9.03), shall be in proper form for
filing, registration or recordation.

          (p) The Administrative Agent shall be reasonably satisfied that there shall be no litigation
seeking to enjoin or prevent the financing or the Transactions contemplated hereunder.

          (q) The Administrative Agent shall have received such other documents as the Administrative
Agent or special counsel to the Administrative Agent may reasonably request.

     Section 6.02 Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing (including the initial funding), of the Issuing Bank to issue, amend,

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renew or extend any Letter of Credit and of the Swing Line Lender to make a Swing Line Loan,
is subject to the satisfaction of the following conditions:

          (a) At the time of and immediately after giving effect to such Borrowing or the issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have
occurred and be continuing.

          (b) The representations and warranties of the Borrower and the Guarantors set forth in this
Agreement and in the other Loan Documents shall be true and correct in all material respects on and
as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such
Letter of Credit, as applicable, except to the extent any such representations and warranties are
expressly limited to an earlier date, in which case, on and as of the date of such Borrowing or the
date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, such
representations and warranties shall continue to be true and correct in all material respects as of
such specified earlier date.

          (c) At the time of and immediately after giving effect to such Borrowing or the issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, no event, development or
circumstance has occurred or shall then exist that has resulted in, or could reasonably be expected
to have, a Material Adverse Effect.

          (d) The making of such Loan or the issuance, amendment, renewal or extension of such Letter of
Credit, as applicable, would not conflict with, or cause any Lender, the Issuing Bank or the Swing
Line Lender to violate or exceed, any applicable Governmental Requirement, and no litigation shall
be pending or threatened, which does or, with respect to any threatened litigation, seeks to,
enjoin, prohibit or restrain, the making or repayment of any Loan, the issuance, amendment,
renewal, extension or repayment of any Letter of Credit or any participations therein or the
consummation of the transactions contemplated by this Agreement or any other Loan Document.

          (e) The receipt by the Administrative Agent of a Borrowing Request in accordance with
Section 2.03 or a request for a Letter of Credit and related Letter of Credit Agreement in
accordance with Section 2.07(b), as applicable.

     Each request for a Borrowing, each request for the issuance, amendment, renewal or extension
of any Letter of Credit and each request for a Swing Line Loan shall be deemed to constitute a
representation and warranty by the Borrower on the date thereof as to the matters specified in
Section 6.02(a) through Section 6.02(d).

ARTICLE VII

Representations and Warranties

     The Borrower (on behalf of itself and its Subsidiaries), and each Guarantor by its execution
of a Guarantee and Collateral Agreement, represents and warrants to the Administrative Agent, the
Issuing Bank and the Lenders that:

     Section 7.01 Organization; Powers. Each of the Borrower and its Subsidiaries is a
legal entity duly organized, validly existing and in good standing under the laws of the
jurisdiction of

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its organization, has all requisite power and authority, and has all material governmental
licenses, authorizations, consents and approvals necessary, to own its assets and to carry on its
business as now conducted, and is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required, except where failure to have such power,
authority, licenses, authorizations, consents, approvals and qualifications could not reasonably be
expected to have a Material Adverse Effect.

     Section 7.02 Authority; Enforceability. The Transactions are within each Loan Party’s
corporate powers and have been duly authorized by all necessary corporate and, if required,
stockholder action (including, without limitation, any action required to be taken by any class of
directors of the Borrower or any other Person, whether interested or disinterested, in order to
ensure the due authorization of the Transactions). Each Loan Document to which a Loan Party is a
party has been duly executed and delivered by such Loan Party and constitutes a legal, valid and
binding obligation of such Loan Party, as applicable, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law.

     Section 7.03 Approvals; No Conflicts. The Transactions (a) do not require any consent
or approval of, registration or filing with, or any other action by, any Governmental Authority or
any other third Person (including shareholders or any class of directors, whether interested or
disinterested, of the Borrower or any other Person), nor is any such consent, approval,
registration, filing or other action necessary for the validity or enforceability of any Loan
Document or the consummation of the transactions contemplated thereby, except such as have been
obtained or made and are in full force and effect other than (i) the recording and filing of the
Security Instruments as required by this Agreement, and (ii) those third party approvals or
consents which, if not made or obtained, would not cause a Default hereunder, or could not
reasonably be expected to have a Material Adverse Effect, (b) will not violate any applicable law
or regulation or any Organization Documents of the Borrower or any Subsidiary, or any order of any
Governmental Authority, (c) will not violate or result in a default under any material indenture,
agreement or other instrument binding upon the Borrower or any Subsidiary, or its Properties, or
give rise to a right thereunder to require any payment to be made by the Borrower or such
Subsidiary and (d) will not result in the creation or imposition of any Lien on any Property of the
Borrower or any Subsidiary (other than the Liens created by the Loan Documents).

     Section 7.04 Financial Condition; No Material Adverse Change.

          (a) The Borrower has heretofore furnished to the Lenders its consolidated balance sheet and
statements of operations, stockholders’ equity and cash flows as of and for the fiscal year ended
December 31, 2010, reported on by Grant Thornton LLP, independent public accountants. Such
financial statements present fairly, in all material respects, the financial position and results
of operations and cash flows of the Borrower and its Consolidated Subsidiaries as of such date and
for such period in accordance with GAAP.

          (b) Since December 31, 2010, there has been no event, development or circumstance that has had
or could reasonably be expected to have a Material Adverse Effect.

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          (c) Neither the Borrower nor any Subsidiary has, on the date hereof after giving effect to the
Transactions, any Material Indebtedness (including Disqualified Capital Stock) or any contingent
liabilities, off-balance sheet liabilities or partnerships, liabilities for taxes, unusual forward
or long-term commitments or unrealized or anticipated losses from any unfavorable commitments,
except for the outstanding Senior Notes or as referred to or reflected or provided for in the
Financial Statements.

     Section 7.05 Litigation. There are no actions, suits, investigations or proceedings
by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the
Borrower, threatened in writing against or affecting the Borrower or any Subsidiary or any of their
Properties (i) that, if adversely determined, could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect or (ii) that involve any Loan Document or the
Transactions.

     Section 7.06 Environmental Matters. Except for such matters that, individually or in
the aggregate, could not reasonably be expected to have a Material Adverse Effect:

          (a) the Borrower and the Subsidiaries and each of their respective Properties and operations
thereon are, and within all applicable statute of limitation periods have been, in material
compliance with applicable Environmental Laws;

          (b) the Borrower and the Subsidiaries have obtained Environmental Permits required for their
respective operations and each of their Properties, with such Environmental Permits being currently
in full force and effect, and none of the Borrower or the Subsidiaries has received any written
notice or otherwise has actual knowledge that any such existing Environmental Permit will be
revoked or that any application for any new Environmental Permit or renewal of any existing
Environmental Permit will be protested or denied;

          (c) there are no claims, demands, suits, orders, inquiries, investigations, written requests
for information or proceedings concerning any violation of, or any liability (including as a
potentially responsible party) under, any applicable Environmental Law that is pending or, to the
Borrower’s knowledge, threatened against the Borrower or any Subsidiary or any of their respective
Properties or as a result of any operations at such Properties;

          (d) none of the Properties of the Borrower or any Subsidiary contain or to the Borrower’s
knowledge have contained any: (i) underground storage tanks; (ii) asbestos-containing materials;
(iii) landfills or dumps; (iv) hazardous waste management units as defined pursuant to RCRA or any
comparable state law; or (v) sites on or nominated for the National Priority List promulgated
pursuant to CERCLA or any state remedial priority list promulgated or published pursuant to any
comparable state law;

          (e) there has been no Release or, to the Borrower’s knowledge, threatened Release, of
Hazardous Materials at, on, under or from the Borrower’s or any Subsidiary’s Properties, there are
no investigations, remediations, abatements, removals, or monitorings of Hazardous Materials
required under applicable Environmental Laws at such Properties and, to the knowledge of the
Borrower, none of such Properties are adversely affected by any Release or

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threatened Release of a Hazardous Material originating or emanating from any other real
property in quantities or concentrations that would require remediation;

          (f) neither the Borrower nor any Subsidiary has received any written notice asserting an
alleged liability or obligation under any applicable Environmental Laws with respect to the
investigation, remediation, abatement, removal, or monitoring of any Hazardous Materials at, under,
or Released or threatened to be Released from any real properties offsite the Borrower’s or any
Subsidiary’s Properties and, to the Borrower’s actual knowledge, there are no conditions or
circumstances that could reasonably be expected to result in the receipt of such written notice;
and

          (g) to the Borrower’s knowledge there has been no exposure of any Person or Property to any
Hazardous Materials as a result of or in connection with the operations and businesses of any of
the Borrower’s or the Subsidiaries’ Properties that could reasonably be expected to form the basis
for a claim for damages or compensation and, to the Borrower’s knowledge, there are no conditions
or circumstances that could reasonably be expected to result in the receipt of notice regarding
such exposure.

     Section 7.07 Compliance with the Laws and Agreements; No Defaults.

          (a) Each of the Borrower and each Subsidiary is in compliance with all Governmental
Requirements applicable to it or its Property and all agreements and other instruments binding upon
it or its Property, and possesses all licenses, permits, franchises, exemptions, approvals and
other governmental authorizations necessary for the ownership of its Property and the conduct of
its business, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

          (b) Neither the Borrower nor any Subsidiary is in default nor has any event or circumstance
occurred which, but for the expiration of any applicable grace period or the giving of notice, or
both, would constitute a default or would require the Borrower or a Subsidiary to Redeem or make
any offer to Redeem under any material indenture, note, credit agreement or instrument pursuant to
which any Material Indebtedness is outstanding or by which the Borrower or any Subsidiary or any of
their Properties is bound.

          (c) No Default has occurred and is continuing.

     Section 7.08 Investment Company Act. Neither the Borrower nor any Subsidiary is an
“investment company” or a company “controlled” by an “investment company,” within the meaning of,
or subject to regulation under, the Investment Company Act of 1940, as amended.

     Section 7.09 Taxes. Each of the Borrower and its Subsidiaries has timely filed or
caused to be filed all Tax returns and reports required to have been filed and has paid or caused
to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in
good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable,
has set aside on its books adequate reserves in accordance with GAAP or (b) to the extent that
failure to do so could not reasonable be expected to result in a Material Adverse Effect. The
charges, accruals and reserves on the books of the Borrower and its Subsidiaries in respect of
Taxes and other governmental charges are, in the reasonable opinion of the Borrower,

55

 

	adequate. No Tax Lien relating to Taxes described in the first sentence of this Section
7.09 has been filed and, to the knowledge of the Borrower, no claim is being asserted with
respect to any such Tax or other such governmental charge.

     Section 7.10 ERISA. Except for such matters that, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect:

          (a) The Borrower, the Subsidiaries and each ERISA Affiliate have complied with ERISA and,
where applicable, the Code regarding each Plan.

          (b) Each Plan is, and has been, established and maintained in compliance with its terms, ERISA
and, where applicable, the Code.

          (c) No act, omission or transaction has occurred which could result in imposition on the
Borrower, any Subsidiary or any ERISA Affiliate (whether directly or indirectly) of (i) either a
civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of section 502 of ERISA or a
tax imposed pursuant to Chapter 43 of Subtitle D of the Code or (ii) breach of fiduciary duty
liability damages under section 409 of ERISA.

          (d) Full payment when due has been made of all amounts which the Borrower, the Subsidiaries or
any ERISA Affiliate is required under the terms of each Plan or applicable law to have paid as
contributions to such Plan as of the date hereof.

          (e) Neither the Borrower, the Subsidiaries nor any ERISA Affiliate sponsors, maintains, or
contributes to an employee welfare benefit plan, as defined in section 3(1) of ERISA, including,
without limitation, any such plan maintained to provide benefits to former employees of such
entities, that may not be terminated by the Borrower, a Subsidiary or any ERISA Affiliate in its
sole discretion at any time without any material liability.

          (f) Neither the Borrower, the Subsidiaries nor any ERISA Affiliate sponsors, maintains or
contributes to, or has at any time in the six-year period preceding the date hereof sponsored,
maintained or contributed to, any employee pension benefit plan, as defined in section 3(2) of
ERISA, that is subject to Title IV of ERISA, section 302 of ERISA or section 412 of the Code.

     Section 7.11 Disclosure; No Material Misstatements. The Borrower has disclosed to the
Administrative Agent and the Lenders all material agreements, instruments and corporate or other
restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it,
that, individually or in the aggregate, could reasonably be expected to result in a Material
Adverse Effect. None of the reports, financial statements, certificates or other information
furnished by or on behalf of the Borrower or any Subsidiary to the Administrative Agent or any
Lender or any of their Affiliates in connection with the negotiation of this Agreement or any other
Loan Document or delivered hereunder or under any other Loan Document (as modified or supplemented
by other information so furnished) contain any material misstatement of fact or omit to state any
material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

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     Section 7.12 Insurance. The Borrower has, and has caused all of its Subsidiaries to
maintain, with financially sound and reputable insurance companies, insurance in such amounts and
against such risks as are customarily maintained by companies engaged in the same or similar
businesses operating in the same or similar locations (including hazard insurance). The
Administrative Agent has been named as additional insured in respect of such liability insurance
policies, and the Administrative Agent has been named as loss payee with respect to property loss
insurance for all items of Collateral.

     Section 7.13 Restriction on Liens. Neither the Borrower nor any of the Subsidiaries
is a party to any material agreement or arrangement (other than (a) Capital Leases creating Liens
and Purchase Money Indebtedness permitted by Section 9.03(c), but then only on the Property
subject of such Capital Lease or Purchase Money Indebtedness, and (b) restrictions under
instruments creating Liens permitted by Section 9.03, but then only on the Property subject
of such Lien), or subject to any order, judgment, writ or decree, which either restricts or
purports to restrict its ability to grant Liens to the Administrative Agent on or in respect of
their Properties to secure the Secured Obligations and the Loan Documents.

     Section 7.14 Subsidiaries. Except as set forth on Schedule 7.14 or as
disclosed in writing to the Administrative Agent (which shall promptly furnish a copy to the
Lenders), which shall be a supplement to Schedule 7.14, the Borrower has no other
Subsidiaries. Except as set forth Schedule 7.14, each Subsidiary on Schedule 7.14
is a Wholly-Owned Subsidiary. Except as set forth on Schedule 7.14 or as disclosed in
writing to the Administrative Agent (which shall promptly furnish a copy to the Lenders), which
shall be a supplement to Schedule 7.14, the Borrower has no Foreign Subsidiaries.

     Section 7.15 Location of Business and Offices. The Borrower’s jurisdiction of
organization is Maryland; the name of the Borrower as listed in the public records of its
jurisdiction of organization is Key Energy Services, Inc.; and the organizational identification
number of the Borrower in its jurisdiction of organization is D00752055 (or, in each case, as set
forth in a notice delivered to the Administrative Agent pursuant to Section 8.01(j) in
accordance with Section 12.01). The Borrower’s principal place of business and chief
executive offices are located at the address specified in Section 12.01 (or as set forth in
a notice delivered pursuant to Section 8.01(j) and Section 12.01(c)).

     Section 7.16 Properties; Titles, Intellectual Property; Licenses; Etc.

          (a) Each of the Borrower and the Subsidiaries has good and valid title to, valid leasehold
interests in, or valid easements, rights of way or other property interests in all of its material
real and personal Property free and clear of all Liens except Liens permitted by Section
9.03.

          (b) All material leases, easements, rights of way and other agreements necessary for the
conduct of the business of the Borrower and the Subsidiaries are valid and subsisting, in full
force and effect, and there exists no default or event or circumstance which with the giving of
notice or the passage of time or both would give rise to a default under any such lease or leases,
which could reasonably be expected to result in a Material Adverse Effect.

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          (c) The Borrower and each Subsidiary owns, or is licensed to use, all trademarks, tradenames,
copyrights, patents and other intellectual property material to its business, and to the Borrower’s
knowledge, the use thereof by the Borrower and such Subsidiary does not infringe upon the rights of
any other Person, except for any such infringements that, individually or in the aggregate, could
not reasonably be expected to result in a Material Adverse Effect.

     Section 7.17 Maintenance of Properties. Except for such acts or failures to act as
could not be reasonably expected to have a Material Adverse Effect, the Properties owned, leased or
used by the Borrower and its Subsidiaries that are necessary to the conduct of their businesses, in
the aggregate, are in good operating condition and repair, subject to ordinary wear and tear.

     Section 7.18 Hedging Agreements. Schedule 7.18, as of the date hereof, and
after the date hereof, each report required to be delivered by the Borrower pursuant to Section
8.01(e), sets forth, a true and complete list of all Hedging Agreements of the Borrower and
each Subsidiary, the material terms thereof (including the type, term, effective date, termination
date and notional amounts or volumes), the net mark to market value thereof, all credit support
agreements relating thereto (including any margin required or supplied) and the counterparty to
each such agreement.

     Section 7.19 Security Instruments.

          (a) Guarantee and Collateral Agreement. The provisions of the Guarantee and
Collateral Agreement are effective to create, in favor of the Administrative Agent for the benefit
of the Secured Parties, a legal, valid and enforceable Lien on, and security interest in, all of
the Collateral described therein, and (i) when financing statements and other filings in
appropriate form are filed in the offices specified in the Guarantee and Collateral Agreement and
(ii) upon the taking of possession or control by the Administrative Agent of the Collateral with
respect to which a security interest may be perfected only by possession or control (which
possession or control shall be given to the Administrative Agent to the extent possession or
control by the Administrative Agent is required by the Guarantee and Collateral Agreement), the
Liens created by the Guarantee and Collateral Agreement shall constitute fully perfected first
priority Liens on, and security interests in, all right, title and interest of the Loan Parties in
the Collateral covered thereby (other than such Collateral in which a security interest cannot be
perfected under the Uniform Commercial Code as in effect at the relevant time in the relevant
jurisdiction), in each case free of all Liens other than Liens permitted by Section 9.03,
and prior and superior to all other Liens other than such Liens.

          (b) Mortgages. If and when executed and delivered, each Mortgage will be effective to
create, in favor of the Administrative Agent (or such other trustee as may be required or desired
under local law) for the benefit of the Secured Parties, legal, valid and enforceable Liens on, and
security interests in, all of the Mortgaged Property thereunder and the proceeds thereof, subject
only to Liens permitted by Section 9.03, and when the Mortgages are filed in the offices
specified on Schedule 7.19 (or, in the case of any Mortgage executed and delivered after
the date thereof in accordance with the provisions of Section 8.12 and Section
8.13, when such Mortgage is filed in the appropriate offices), the Mortgages shall constitute
fully perfected first priority Liens on, and security interests in, all right, title and interest
of the Loan Parties in the

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Mortgaged Property and the proceeds thereof, in each case prior and superior in right to any
other person, other than Liens permitted by such Mortgage.

          (c) Valid Liens. Each Security Instrument delivered pursuant to Section 8.12
or Section 8.13, upon execution and delivery thereof, is effective to create in favor of
the Administrative Agent, for the benefit of the Secured Parties, legal, valid and enforceable
Liens on, and security interests in, all of the Collateral thereunder, and when all appropriate
filings or recordings are made in the appropriate offices as may be required under applicable
Governmental Requirements or possession or control is conferred to the Administrative Agent, such
Security Instrument will constitute fully perfected first priority Liens on, and security interests
in, all right, title and interest of the Loan Parties in such Collateral, in each case with no
other Liens except for applicable Liens permitted by Section 9.03.

     Section 7.20 Use of Loans and Letters of Credit. The proceeds of the Loans and the
Letters of Credit shall be used to pay fees and expenses in connection with the Transactions, to
refinance the Existing Credit Agreement and for working capital, permitted Capital Expenditures,
Permitted Acquisitions and general corporate purposes of the Borrower and its Subsidiaries. The
Borrower and its Subsidiaries are not engaged principally, or as one of its or their important
activities, in the business of extending credit for the purpose, whether immediate, incidental or
ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the
Board). No part of the proceeds of any Loan or Letter of Credit will be used, whether immediate,
incidental or ultimate, to buy or carry margin stock (within the meaning of Regulation T, U or X of
the Board).

     Section 7.21 Solvency. Each Loan Party is Solvent. No Loan Party is planning to take
any action described in Section 10.01(h) or Section 10.01(i).

     Section 7.22 Common Enterprise. Each of the Borrower and its Subsidiaries and their
business operations are closely integrated with one another into a single, interdependent and
collective, common enterprise so that any benefit received by any one of them from the financial
accommodations provided under this Agreement will be to the direct benefit of the others. The
Borrower and its Subsidiaries intend to render services to or for the benefit of each other, to
purchase or sell and supply goods to or from or for the benefit of each other, to make loans,
advances and provide other financial accommodations to or for the benefit of each other and to
provide administrative, marketing, payroll and management services to or for the benefit of each
other (in each case, except as may be prohibited by this Agreement).

     Section 7.23 Broker’s Fees. No broker’s or finder’s fee, commission or similar
compensation will be payable by the Borrower or any Subsidiary with respect to the Transactions.

     Section 7.24 Employee Matters. As of the Effective Date, (a) neither the Borrower nor
any Subsidiary, nor any of their respective employees, is subject to any collective bargaining
agreement, (b) no petition for certification or union election is pending or, to the knowledge of
the Borrower or any Subsidiary, contemplated with respect to the employees thereof and no union or
collective bargaining unit has sought such certification or recognition with respect to the
employees of the Borrower or any Subsidiary, and (c) there are no strikes, slowdowns, work

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stoppages or controversies pending or, to the knowledge of the Borrower, threatened between
the Borrower or any Subsidiary and its respective employees.

     Section 7.25 Anti-Terrorism Laws.

          (a) The Borrower is not, and to the knowledge of the Borrower, none of the Borrower’s
Affiliates, officers or directors is in violation of any Governmental Requirement relating to
terrorism or money laundering (“Anti-Terrorism Laws”), including Executive Order No. 13224
on Terrorist Financing, effective September 24, 2001 (the “Executive Order”), the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, Public Law 107-56, and the Trading with the Enemy Act, 50 U.S.C. App. 1 et
seq., in each case, as amended from time to time.

          (b) The Borrower is not, and to the knowledge of the Borrower, no Affiliate, officer,
director, broker or other agent of the Borrower acting or benefiting in any capacity in connection
with the Loans is any of the following:

               (i) a Person that is listed in the annex to, or is otherwise subject to the provisions of, the
Executive Order;

               (ii) a Person owned or controlled by, or acting for or on behalf of, any Person that is listed
in the annex to, or is otherwise subject to the provisions of, the Executive Order;

               (iii) a Person with which any Lender is prohibited from dealing or otherwise engaging in any
transaction by any Anti-Terrorism Law;

               (iv) a Person that commits, threatens or conspires to commit or supports “terrorism” as
defined in the Executive Order; or

               (v) a Person that is named as a “specially designated national and blocked Person” on the most
current list published by the U.S. Treasury Department Office of Foreign Assets Control
(“OFAC”) at its official website or any replacement website or other replacement official
publication of such list.

          (c) No Loan Party and, to the knowledge of the Borrower, no broker or other agent of any Loan
Party acting in any capacity in connection with the Loans (i) conducts any business or engages in
making or receiving any contribution of funds, goods or services to or for the benefit of any
Person described in paragraph (b) above, (ii) deals in, or otherwise engages in any transaction
relating to, any Property or interests in Property blocked pursuant to the Executive Order, or
(iii) engages in or conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law.

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ARTICLE VIII

Affirmative Covenants

     Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder and all other amounts payable under the Loan Documents
shall have been paid in full and all Letters of Credit shall have expired or terminated and all LC
Disbursements shall have been reimbursed, the Borrower (on behalf of itself and its Subsidiaries)
and each Guarantor by its execution of the Guarantee and Collateral Agreement, covenants and agrees
with the Administrative Agent, the Issuing Bank and the Lenders that:

     Section 8.01 Financial Statements; Other Information. The Borrower will furnish to
the Administrative Agent (the documents required to be delivered pursuant to clauses (a), (b) and
(h) below shall be deemed to have been delivered on the date on which such documents are posted on
the Securities and Exchange Commission’s website at
www.sec.gov and Borrower has given notice to
Administrative Agent of such posting):

          (a) Annual Financial Statements. As soon as available, but in any event in accordance
with then applicable law and not later than seventy-five (75) days after the end of each fiscal
year of the Borrower, its audited consolidated balance sheet and related statements of operations,
stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case
in comparative form the figures for the previous fiscal year, all reported on by Grant Thornton LLP
or other independent public accountants of recognized national standing (without a “going concern”
or like qualification or exception and without any qualification or exception as to the scope of
such audit) to the effect that such consolidated financial statements present fairly in all
material respects the financial condition and results of operations of the Borrower and its
Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied.

          (b) Quarterly Financial Statements. As soon as available, but in any event in
accordance with then applicable law and not later than forty-five (45) days after the end of each
of the first three fiscal quarters of each fiscal year of the Borrower, its consolidated balance
sheet and related statements of operations and cash flows as of the then elapsed portion of the
fiscal year, setting forth in each case in comparative form the figures for the corresponding
period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal
year, all certified by one of its Financial Officers as presenting fairly in all material respects
the financial condition and results of operations of the Borrower and its Consolidated Subsidiaries
on a consolidated basis in accordance with GAAP consistently applied or as prepared in accordance
with the requirements of the SEC, subject to normal year-end audit adjustments and the absence of
footnotes.

          (c) Annual Financial Projections. Concurrently with any delivery of financial
statements under Section 8.01(a), projections for the Borrower and its Consolidated
Subsidiaries for each fiscal year of the Borrower through the end of the fiscal year in which the
Maturity Date occurs.

          (d) Certificate of Financial Officer — Compliance. Concurrently with any delivery of
financial statements under Section 8.01(a) or Section 8.01(b), a certificate of a

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Financial Officer in substantially the form of Exhibit D hereto (i) certifying as to
whether a Default has occurred and, if a Default has occurred, specifying the details thereof and
any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably
detailed calculations demonstrating compliance with Section 9.01 and (iii) stating whether
any change in GAAP or in the application thereof has occurred since the date of the financial
statements referred to in Section 7.04(a) and, if any such change has occurred, specifying
the effect of such change on the financial statements accompanying such certificate.

          (e) Certificate of Financial Officer — Hedging Agreements. Concurrently with any
delivery of financial statements under Section 8.01(a) and Section 8.01(b), a
certificate of a Financial Officer, in form and substance reasonably satisfactory to the
Administrative Agent, setting forth as of the last Business Day of such fiscal quarter or fiscal
year, a true and complete list of all Hedging Agreements of the Borrower and each Subsidiary, the
material terms thereof (including the type, term, effective date, termination date and notional
amounts or volumes), the net mark-to-market value therefor, any new credit support agreements
relating thereto, any margin required or supplied under any credit support document, and the
counterparty to each such agreement.

          (f) Certificate of Insurer — Insurance Coverage. Concurrently with any delivery of
financial statements under Section 8.01(a), a certificate of insurance coverage from each
insurer with respect to the insurance required by Section 8.07, in form and substance
reasonably satisfactory to the Administrative Agent, and, if requested by the Administrative Agent
or any Lender, all copies of the applicable policies.

          (g) Other Accounting Reports. Promptly upon receipt thereof, a copy of each other
report or letter (except standard and customary correspondence) submitted to the Borrower or any of
its Subsidiaries by independent accountants in connection with any annual, interim or special audit
made by them of the books of the Borrower or any such Subsidiary, and a copy of any response by the
Borrower or any such Subsidiary, or the board of directors of the Borrower or any such Subsidiary,
to such letter or report.

          (h) SEC and Other Filings; Reports to Shareholders. Promptly after the same become
publicly available, copies of all periodic and other reports, proxy statements and other materials
filed by the Borrower or any Subsidiary with the SEC, or with any national or foreign securities
exchange, or distributed by the Borrower to its shareholders generally, as the case may be.

          (i) Notices Under Material Instruments. Promptly after the furnishing thereof, copies
of any financial statement or material report or notice furnished to or by any Person pursuant to
the terms of any preferred stock designation, indenture, loan or credit or other similar agreement,
other than this Agreement and not otherwise required to be furnished to the Lenders pursuant to any
other provision of this Section 8.01.

          (j) Information Regarding Loan Parties. Prompt written notice (and in any event not
more than ten (10) Business Days prior thereto) of any change (i) any Loan Party’s corporate name
or in any trade name used to identify such Person in the conduct of its business or in the
ownership of its Properties, (ii) in the location of any Loan Party’s chief executive

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office or principal place of business, (iii) in any Loan Party’s identity or corporate
structure or in the jurisdiction in which such Person is incorporated or formed, (iv) in any Loan
Party’s jurisdiction of organization or such Person’s organizational identification number in such
jurisdiction of organization, and (v) in any Loan Party’s federal taxpayer identification number.

          (k) Notices of Certain Changes. Promptly, but in any event within ten (10) Business
Days after the execution thereof, copies of any amendment, modification or supplement to the
certificate or articles of incorporation, by-laws, any preferred stock designation or any other
Organization Document of the Borrower or any Subsidiary.

          (l) Other Requested Information. Promptly following any request therefor, such other
information regarding the operations, business affairs and financial condition of the Borrower or
any Subsidiary (including, without limitation, any Plan and any reports or other information
required to be filed with respect thereto under the Code or under ERISA), or compliance with the
terms of this Agreement or any other Loan Document, as the Administrative Agent may reasonably
request.

     Section 8.02 Notices of Material Events. The Borrower will furnish to the
Administrative Agent prompt and, in any event, within ten (10) Business Days after acquiring
knowledge thereof, written notice of the following:

          (a) the occurrence of any Default of which the Borrower has knowledge;

          (b) the filing or commencement of, or the threat in writing of, any action, suit, proceeding,
investigation or arbitration by or before any arbitrator or Governmental Authority against or
affecting the Borrower or any Affiliate thereof not previously disclosed in writing to the
Administrative Agent or any material adverse development in any action, suit, proceeding,
investigation or arbitration (whether or not previously disclosed to the Administrative Agent)
that, in either case, if adversely determined, could reasonably be expected to result in a Material
Adverse Effect;

          (c) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that
have occurred, could reasonably be expected to result in liability of the Borrower and its
Subsidiaries in an aggregate amount exceeding $10,000,000; and

          (d) any other development that results in, or could reasonably be expected to result in, a
Material Adverse Effect.

     Each notice delivered under this Section 8.02 shall be accompanied by a statement of a
Responsible Officer of the Borrower setting forth the details of the event or development requiring
such notice and any action taken or proposed to be taken with respect thereto.

     Section 8.03 Existence; Conduct of Business. The Borrower will, and will cause each
Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence and the rights, licenses, permits, consents, privileges and
franchises material to the conduct of its business and maintain, including, if necessary, its
qualification to do business in each other jurisdiction in which its Properties are located or the
ownership of its Properties requires such qualification, except where the failure to do so could

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not reasonably be expected to have a Material Adverse Effect; provided that the foregoing
shall not prohibit any merger, consolidation, liquidation or dissolution permitted under
Section 9.09.

     Section 8.04 Payment of Obligations. The Borrower will, and will cause each
Subsidiary to, pay its obligations, including Tax liabilities of the Borrower and all of its
Subsidiaries before the same shall become delinquent or in default, except where (a) the validity
or amount thereof is being contested in good faith by appropriate proceedings, (b) the Borrower or
such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance
with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected
to result in a Material Adverse Effect or result in the seizure or levy of any material Property of
the Borrower or any Subsidiary.

     Section 8.05 Performance of Obligations under Loan Documents. The Borrower will repay
the Loans according to the reading, tenor and effect thereof, and the Borrower will, and will cause
each Subsidiary to, do and perform every act and discharge all of the obligations to be performed
and discharged by them under the Loan Documents, including, without limitation, this Agreement, at
the time or times and in the manner specified.

     Section 8.06 Operation and Maintenance of Properties. Except, in each case, where the
failure to comply could not reasonably be expected to have a Material Adverse Effect, the Borrower,
at its own expense, will, and will cause each Subsidiary to:

          (a) operate its Properties or cause such Properties to be operated in a careful and efficient
manner in accordance with the practices of the industry and in compliance with all applicable
contracts and agreements and in compliance with all Governmental Requirements, including, without
limitation, applicable Environmental Laws;

          (b) preserve, maintain and keep in good repair, condition and working order (ordinary wear and
tear excepted) all Property material to the conduct of its business, including, without limitation,
all equipment, machinery and facilities; and

          (c) promptly perform or make reasonable and customary efforts to cause to be performed, in
accordance with industry standards, the obligations required by each and all of the assignments,
deeds, leases, sub-leases, contracts and agreements affecting its interests in its material
Properties.

     Section 8.07 Insurance.

          (a) The Borrower will, and will cause each Subsidiary to, maintain, with financially sound and
reputable insurance companies, insurance in such amounts and against such risks as are customarily
maintained by companies engaged in the same or similar businesses operating in the same or similar
locations (including hazard insurance). The loss payable clauses or provisions in any insurance
policy or policies insuring any of the Collateral for the Loans shall be endorsed in favor of and
made payable to the Administrative Agent as its interests may appear and such policies shall name
the Administrative Agent as an “additional insured” and “loss payee” and provide that the insurer
will give at least thirty (30) days’ prior notice of any cancellation to the Administrative Agent.

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          (b) With respect to each portion of the Mortgaged Property of the Borrower or any Subsidiary
on which improvements are located, the Borrower will, and will cause each Subsidiary to, obtain
flood insurance in such total amount as the Administrative Agent or the Majority Lenders may from
time to time reasonably require, if at any time the area in which any improvements located on any
such real property is designated a “flood hazard area” in any Flood Insurance Rate Map published by
the Federal Emergency Management Agency (or any successor agency), and otherwise comply with the
National Flood Insurance Program as set forth in the Flood Disaster Protection Act of 1973, as
amended from time to time.

     Section 8.08 Books and Records; Inspection Rights. The Borrower will, and will cause
each Subsidiary to, keep proper books of record and account in which full, true and correct entries
are made of all dealings and transactions in relation to its business and activities. The Borrower
will, and will cause each Subsidiary to, permit any representatives designated by the
Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its
Properties, to examine and make extracts from its books and records, and to discuss its affairs,
finances and condition with its officers and independent accountants, all at such reasonable times
during normal business hours and as often as reasonably requested; provided that such audits shall
be limited to once per calendar year unless an Event of Default exists and is continuing.

     Section 8.09 Compliance with Laws. The Borrower will, and will cause each Subsidiary
to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to
it or its Property, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

     Section 8.10 Compliance with Material Leaseholds and Agreements. The Borrower will,
and will cause each Subsidiary to, comply with all material leases, agreements, contracts and
instruments binding on it or affecting its Properties or business, except to the extent that such
noncompliance could not reasonably be expected to have a Material Adverse Effect.

     Section 8.11 Environmental Matters.

          (a) Except for matters that individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect, the Borrower shall at its sole expense: (i) comply, and shall
cause its Properties and operations and each Subsidiary and each Subsidiary’s Properties and
operations to comply, with applicable Environmental Laws; (ii) not Release or threaten to Release,
and shall cause each Subsidiary not to Release or threaten to Release, any Hazardous Material on,
under, about or from any of the Borrower’s or its Subsidiaries’ Properties or any other property
offsite the Property to the extent caused by the Borrower’s or any of its Subsidiaries’ operations
except in compliance with applicable Environmental Laws; (iii) timely obtain or file, and shall
cause each Subsidiary to timely obtain or file, Environmental Permits, if any, required
under applicable Environmental Laws to be obtained or filed in connection with the
operation or use of the Borrower’s or its Subsidiaries’ Properties; (iv) promptly commence and
diligently prosecute to completion, and shall cause each Subsidiary to promptly commence and
diligently prosecute to completion, any assessment, evaluation, investigation, monitoring,
containment, cleanup, removal, repair, restoration, remediation or other remedial obligations
(collectively, the “Remedial Work”) in the event any Remedial Work is required under
applicable Environmental Laws because of or in connection

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with the actual or suspected past, present or future Release or threatened Release of any
Hazardous Material on, under, about or from any of the Borrower’s or its Subsidiaries’ Properties;
and (v) conduct, and cause its Subsidiaries to conduct, their respective operations and businesses
in a manner that will not expose any Property or Person to Hazardous Materials that could
reasonably be expected to form the basis for a claim for damages or compensation.

          (b) The Borrower will promptly, but in no event later than ten (10) Business Days after the
receipt of notice by any member of the executive management team of the occurrence of a triggering
event, notify the Administrative Agent and the Lenders in writing of any threatened action,
investigation or inquiry by any Governmental Authority or any threatened demand or lawsuit by any
Person against the Borrower or its Subsidiaries or their Properties of which the Borrower has
knowledge in connection with any Environmental Laws if the Borrower could reasonably anticipate
that such action will result in liability (whether individually or in the aggregate) in excess of
$10,000,000, not fully covered by insurance, subject to normal deductibles.

     Section 8.12 Further Assurances.

          (a) The Borrower at its sole expense will, and will cause each Subsidiary to, promptly execute
and deliver to the Administrative Agent all such other documents, agreements and instruments
reasonably requested by the Administrative Agent to comply with, cure any defects or accomplish the
conditions precedent, covenants and agreements of the Borrower or any Subsidiary, as the case may
be, in the Loan Documents, including the Notes, or to further evidence and more fully describe the
Collateral intended as security for the Secured Obligations, or to correct any omissions in this
Agreement or the Security Instruments, or to state more fully the obligations secured therein, or
to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Security
Instruments or the priority thereof, or to make any recordings, file any notices or obtain any
consents, all as may be reasonably necessary or appropriate, in the sole discretion of the
Administrative Agent, in connection therewith.

          (b) The Borrower hereby authorizes the Administrative Agent to file one or more financing or
continuation statements, and amendments thereto, relative to all or any part of the Collateral
without the signature of the Borrower or any other Guarantor where permitted by law. A carbon,
photographic or other reproduction of the Security Instruments or any financing statement covering
such Collateral or any part thereof shall be sufficient as a financing statement where permitted by
law.

     Section 8.13 Additional Collateral; Additional Guarantors. Subject to the
requirements of Section 9.01(b):

          (a) In the event that the Borrower or any Domestic Subsidiary acquires or forms a Material
Subsidiary or any previously immaterial Subsidiary becomes a Material Subsidiary, the Borrower or
such Subsidiary shall promptly cause such Subsidiary to guarantee the Secured Obligations pursuant
to the Guarantee and Collateral Agreement. In connection with any guaranty, the Borrower shall, or
shall cause such Subsidiary to, (i) execute and deliver a supplement to the Guarantee and
Collateral Agreement executed by such Subsidiary, (ii) cause the owner of the Equity Interests in
such Subsidiary to pledge such Equity Interests (including,

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without limitation, delivery of original stock certificates evidencing the Equity Interests of
such Subsidiary, together with an appropriate undated stock powers for each certificate duly
executed in blank by the registered owner thereof) and (iii) execute and deliver such other
additional closing documents, certificates and legal opinions as shall reasonably be requested by
the Administrative Agent.

          (b) In the event that the Borrower or any Domestic Subsidiary becomes the owner of a Foreign
Subsidiary and which has net book value in excess of $1,000,000, then the Borrower shall, or shall
cause such Domestic Subsidiary to, promptly (i) execute and deliver a supplement to the Guaranty
Agreement to pledge 65% of all the Equity Interests of such Foreign Subsidiary (including, without
limitation, if appropriate, delivery of original stock certificates evidencing such Equity
Interests of such Foreign Subsidiary, together with appropriate stock powers for each certificate
duly executed in blank by the registered owner thereof) and (ii) execute and deliver such other
additional closing documents, certificates and legal opinions as shall reasonably be requested by
the Administrative Agent.

          (c) In the event that the Borrower or any Domestic Subsidiary acquires any property, if such
property, in the judgment of the Administrative Agent, shall not already be subject to a perfected
first priority security interest (subject to Liens permitted by Section 9.03) in favor of
the Administrative Agent for the benefit of the Secured Parties, then the Borrower shall, or cause
such Domestic Subsidiary to, promptly (i) furnish to the Administrative Agent a description of the
property so acquired in detail reasonably satisfactory to the Administrative Agent, (ii) duly
execute and deliver to the Administrative Agent such security agreement supplements and other
security agreements, pledge agreements, and Mortgages as specified by and in form and substance
reasonably satisfactory to the Administrative Agent, securing payment of the Secured Obligations by
the applicable Loan Party under the Loan Documents and constituting Liens on all such properties,
(iii) take whatever action (including the filing of Uniform Commercial Code financing statements,
the giving of notices and the endorsement of notices on title documents) may be necessary or
advisable in the opinion of the Administrative Agent to vest in the Administrative Agent valid and
perfected first priority (subject to Liens permitted by Section 9.03) Liens on such
property, and (iv) execute and deliver to the Administrative Agent such other additional closing
documents, certificates and legal opinions as shall reasonably be requested by the Administrative
Agent.

          (d) At any time during the continuation of any Event of Default, the Borrower shall, and shall
cause each Guarantor to, take such steps as to grant the Administrative Agent, for the benefit of
all Secured Parties, “control” over all material deposit accounts and securities accounts.

          (e) Within ninety (90) days of the Closing Date, the Borrower shall ensure that the
Administrative Agent has a perfected first priority interest in any (i) wells service rigs, (ii)
contract drilling rigs, (iii) heavy duty vehicles or (iv) coiled tubing units, including to the
extent required by applicable law, notation on the certificate of title for such piece of
equipment.

     Section 8.14 ERISA Compliance.

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          (a) The Borrower will promptly furnish and will cause the Subsidiaries and any ERISA Affiliate
to promptly furnish to the Administrative Agent immediately upon becoming aware of the occurrence
of any “prohibited transaction,” as described in section 406 of ERISA or in section 4975 of the
Code, in connection with any Plan or any trust created thereunder, a written notice signed by the
President or the principal Financial Officer, the Subsidiary or the ERISA Affiliate, as the case
may be, specifying the nature thereof, what action the Borrower, the Subsidiary or the ERISA
Affiliate is taking or proposes to take with respect thereto, and, when known, any action taken or
proposed by the Internal Revenue Service or the Department of Labor with respect thereto.

          (b) Except for such matters that, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect, the Borrower will ensure that neither it nor any of its
Subsidiaries, at any time:

               (i) engages in, or permits any ERISA Affiliate to engage in, any transaction in connection
with which the Borrower, a Subsidiary or any ERISA Affiliate could be subjected to either a civil
penalty assessed pursuant to subsections (c), (i), (l) or (m) of section 502 of ERISA or a tax
imposed by Chapter 43 of Subtitle D of the Code.

               (ii) fails to make, or permits any ERISA Affiliate to fail to make, full payment when due of
all amounts which, under the provisions of any Plan, agreement relating thereto or applicable law,
the Borrower, a Subsidiary or any ERISA Affiliate is required to pay as contributions thereto.

               (iii) contributes to or assumes an obligation to contribute to, or permits any ERISA Affiliate
to contribute to or assume an obligation to contribute to (i) any employee welfare benefit plan, as
defined in section 3(1) of ERISA, including, without limitation, any such plan maintained to
provide benefits to former employees of such entities, that may not be terminated by such entities
in their sole discretion at any time without any material liability, or (ii) any employee pension
benefit plan, as defined in section 3(2) of ERISA, that is subject to Title IV of ERISA, section
302 of ERISA or section 412 of the Code.

     Section 8.15 Mortgaged Properties. Subject to the requirements of Section
9.01(b):

          (a) If any of the Collateral consists of Mortgaged Properties, the Borrower covenants to
deliver valid mortgage Liens (pursuant to documentation reasonably satisfactory to the
Administrative Agent) on the fee Properties listed on Schedule 8.16 or to the extent the
Borrower is unable to deliver a mortgage on each of such Properties, the Borrower shall deliver a
mortgage Lien on one or more new facilities having a fair market value reasonably equivalent to
such omitted Property, such evidence of the value of the new facility or facilities to be
reasonably acceptable to the Administrative Agent. In connection with the foregoing, upon the
reasonable request of the Administrative Agent, the Borrower shall deliver (i) flood plain
certifications for all of the Mortgaged Property, (ii) such title information as the Administrative
Agent may reasonably require in form and substance reasonably satisfactory to the Administrative
Agent setting forth the status of title to the properties listed in Schedule 8.16, (iii) an
opinion of (1) Andrews Kurth, LLP, special counsel to the Borrower, and (2) local counsel in
Maryland, in each case, in form and substance reasonably satisfactory to the Administrative

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Agent, as to such mortgage documentation, (iv) certificates of insurance coverage of the
Borrower evidencing that the Borrower is carrying insurance in accordance with Section 7.12
and naming the Administrative Agent as “loss payee” with respect to casualty losses at such site,
and (v) evidence regarding the environmental condition of such Mortgaged Properties which shall be
reasonably satisfactory to the Administrative Agent.

          (b) The Borrower will, and will cause all of its Subsidiaries to have, for all of the
Mortgaged Property that is located in a designated “flood hazard area” in any Flood Insurance Rate
Map published by the Federal Emergency Management Agency (or any successor agency), obtained flood
insurance in such total amount as required by Regulation H of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof, and otherwise complied
with the National Flood Insurance Program as set forth in the Flood Disaster Protection Act of
1973, as it may be amended from time to time.

     Section 8.16 Compliance with Terms of Leaseholds. The Borrower will, and will cause
all of its Subsidiaries to, make all payments and otherwise perform all obligations in respect of
all material leases of real property to which the Borrower or any of its Subsidiaries is or is to
be a party, keep such leases in full force and effect and not allow such leases to lapse or be
terminated or any rights to renew such leases to be forfeited or cancelled, notify the
Administrative Agent of any default by any party with respect to such leases and cooperate with the
Administrative Agent in all respects to cure any such default, and cause each of its Subsidiaries
to do so, except, in any case, where the failure to do so, either individually or in the aggregate,
could not be reasonably likely to have a Material Adverse Effect.

ARTICLE IX

Negative Covenants

     Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder and all other amounts payable under the Loan Documents have
been paid in full and all Letters of Credit have expired or terminated (except for Letters of
Credit cash collateralized pursuant to 2.07(c)) and all LC Disbursements shall have been
reimbursed, the Borrower (on behalf of itself and its Subsidiaries) and each Guarantor by its
execution of the Guarantee and Collateral Agreement) covenants and agrees with the Administrative
Agent, the Issuing Bank and the Lenders that:

     Section 9.01 Financial Covenants.

          (a) Consolidated Interest Coverage Ratio. The Borrower will not, as of the last day
of any fiscal quarter, permit its Consolidated Interest Coverage Ratio to be less than 3.0 to 1.0.

          (b) Minimum Collateral Coverage Ratio. The Borrower will not, as of the last day of
any fiscal quarter, permit its Collateral Coverage Ratio to be less than the following:

	 	 	 
	Fiscal Quarter Ending	 	Ratio
	June 30, 2011 through June 30, 2012

	 	1.85 to 1.00
	September 30, 2012 and thereafter

	 	2.00 to 1.00

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If a Collateral Coverage Deficiency exists, then the Borrower shall notify the Administrative Agent
promptly, but, in any event, no later than five (5) Business Days after delivering financial
statements pursuant to Section 8.01(a) or Section 8.01(b), and shall either (i)
reduce Total Commitments by an amount sufficient to eliminate such Collateral Coverage Deficiency
or (ii) grant to the Administrative Agent, within 45 days of delivery of the financial statements
pursuant to Section 8.01(a) or Section 8.01(b), a perfected first priority Lien on
additional Property having a book value in an amount sufficient to eliminate such Collateral
Coverage Deficiency.

          (c) Senior Secured Leverage Ratio. The Borrower will not, as of the last day of any
fiscal quarter, commencing with the quarter beginning June 30, 2011, permit its Senior Secured
Leverage Ratio to be greater than 2.00 to 1.00.

          (d) Capitalization Ratio. The Borrower will not, as of the last day of any fiscal
quarter, commencing with the quarter beginning June 30, 2011, allow its ratio of Consolidated Total
Funded Indebtedness to Total Capitalization to be more than 45%.

          (e) Consolidated Total Leverage Ratio. Commencing with calendar year 2011, the
Borrower will not make any Capital Expenditure or Investment in a Foreign Subsidiary to the extent
in any calendar year the sum of all Capital Expenditures and Investments in Foreign Subsidiaries
exceed in the aggregate $250,000,000 (plus for each calendar year after 2011, 50% of any unused
portion of such $250,000,000 for the prior calendar year), if, as of the date of such Capital
Expenditure or Investment, pro forma Consolidated Total Leverage Ratio (after giving effect to such
Capital Expenditure or Investment and any concurrent Borrowings) exceeds 3.00 to 1.00.

     Section 9.02 Indebtedness. The Borrower will not, and will not permit any Guarantor
to, directly or indirectly, Incur any Indebtedness unless, after giving pro forma effect to the
Incurrence of such Indebtedness and the receipt and application of the proceeds thereof, (i) no
Default or Event of Default is continuing or would occur as a consequence of such Incurrence and
(ii) the Consolidated Total Leverage Ratio would not exceed 3.0 to 1.0. Notwithstanding the
foregoing limitations in (i) and (ii), the Borrower and its Subsidiaries may Incur:

          (a) the Secured Obligations arising under the Loan Documents or any guaranty of or suretyship
arrangement for the Secured Obligations arising under the Loan Documents;

          (b) accounts payable and accrued expenses, liabilities or other obligations to pay the
deferred purchase price of Property or services, from time to time incurred in the ordinary course
of business, provided that an Incurrence of Indebtedness in respect of any account payable or
accrued expense shall occur on the first day on which such account payable or accrued expense is
greater than sixty (60) days delinquent and not being contested in good faith by appropriate action
and for which adequate reserves have been maintained in accordance with GAAP;

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          (c) Indebtedness (i) under Capital Leases and (ii) that constitutes Purchase Money
Indebtedness; provided that the aggregate amount of all Indebtedness described in this Section
9.02(c) at any one time outstanding shall not to exceed $75,000,000 in the aggregate;

          (d) Indebtedness associated with bonds or surety obligations required by Governmental
Requirements in connection with the operation of the Properties of the Borrower or any Subsidiary;

          (e) intercompany Indebtedness between the Borrower and any Subsidiary or between Subsidiaries
to the extent permitted by Section 9.05(i); provided that such Indebtedness is not held,
assigned, transferred, negotiated or pledged to any Person other than the Borrower or one of its
Wholly-Owned Subsidiaries, and, provided further, that any such Indebtedness owed by a Loan Party
shall be subordinated to the Secured Obligations on terms set forth in the Guarantee and Collateral
Agreement;

          (f) Indebtedness with respect to Senior Notes, including any Permitted Refinancing Debt
(including Permitted Refinancing Debt in respect of the Existing Senior Notes); and

          (g) Indebtedness issued to insurance companies, or their affiliates, to finance insurance
premiums payable to such insurance companies in connection with insurance policies purchased by a
Loan Party in the ordinary course of business.

     Section 9.03 Liens. The Borrower will not, and will not permit any Subsidiary to,
create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter
acquired), except:

          (a) Liens securing the payment of any Secured Obligations pursuant to the Security
Instruments.

          (b) Excepted Liens;

          (c) Liens securing Capital Leases and Purchase Money Indebtedness permitted by Section
9.02(c) but only on the Property under lease or the Property purchased with such Purchase Money
Indebtedness, as applicable;

          (d) Licenses of Oilfield Intellectual Property in the ordinary course of business;

          (e) Liens on property of a Person existing at the time such Person becomes a Subsidiary of the
Borrower; provided that (i) such Liens were not created in contemplation of such Investment, (ii)
such Liens do not extend to any assets other than those of the Person acquired by the Borrower,
(iii) the applicable Indebtedness secured by such Lien is permitted under Section 9.02 and
(iv) as of the date such Person becomes a Subsidiary of the Borrower, the Borrower is in pro forma
compliance with Section 9.01;

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

          (g) Liens on the assets of any Foreign Subsidiary (other than intercompany notes payable to a
Loan Party) which secure Indebtedness permitted pursuant to Section 9.02;

          (h) Liens on unearned premiums in respect of insurance policies securing insurance premium
financing permitted under Section 9.02(g); and

          (i) Liens not otherwise permitted by this Section 9.03 so long as neither (i) the aggregate
outstanding principal amount of the obligations secured thereby nor (ii) the aggregate book value
(determined, in the case of each such Lien, as of the date such Lien is incurred) of the assets
subject thereto exceeds (as to the Borrower and all Subsidiaries) $30,000,000 at any one time,
provided that no such Lien shall extend to or cover any Collateral.

     Section 9.04 Restricted Payments. The Borrower will not, and will not permit any of
its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment, return any capital to its stockholders or make any distribution of its Property
to its Equity Interest holders, except:

          (a) the Borrower may declare and pay dividends with respect to its Equity Interests payable
solely in additional shares of its Equity Interests (other than Disqualified Capital Stock);

          (b) Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests;

          (c) the Borrower and each Subsidiary may purchase, redeem or otherwise acquire its common
Equity Interests with the proceeds received from the substantially concurrent issue of new common
Equity Interests;

          (d) if no Event of Default then exists or would result from the making of such Restricted
Payments, (i) the Borrower may purchase, redeem, or otherwise acquire its common Equity Interests
and/or may pay dividends upon its common Equity Interests in an aggregate amount not to exceed
$200,000,000, and (ii) the Borrower may purchase, redeem, or otherwise acquire its common Equity
Interests in an aggregate amount in excess of $200,000,000 so long as, giving pro forma effect to
any repurchase and related incurrence of Indebtedness, the Borrower is in compliance with
Section 9.01(d).

          (e) the Borrower may repurchase its Equity Interests in connection with the administration of
its equity-based compensation plans from time to time in effect, including (i) in connection with
the cashless exercise of stock options, (ii) the repurchase of restricted stock from employees,
directors and other recipients under such plans at nominal values; provided, that the aggregate
amount of Restricted Payments under clauses (i) and (ii) of this Section 9.04(e) shall not exceed
$5,000,000 in any fiscal year (plus the amount of any unused amounts from any fiscal year occurring
after the Effective Date) and (iii) the repurchase of Equity Interests from employees, directors
and other such recipients to satisfy federal, state or local tax withholding

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obligations of such employees, directors and other recipients with respect to income deemed
earned as the result of options, stock grants or other awards made under such plans; and

          (f) if (i) no Default or Event of Default exists at the time such Restricted Payment is made
or would occur as a consequence of making such Restricted Payment and (ii) after giving pro forma
effect to such Restricted Payment, the Consolidated Total Leverage Ratio would not exceed 2.0 to
1.0, then the Borrower may make Restricted Payments in an aggregate amount not to exceed 50% of
aggregate Consolidated Net Income accrued on a cumulative basis commencing on April 1, 2011 and
ending on the last day of the most recently ended fiscal quarter preceding the date such Restricted
Payment is made for which financial statements have been delivered under Section 8.01(a) or
Section 8.01(b) (or if such aggregate Consolidated Net Income is a loss, minus 100% of such
loss, provided that the amount shall never be less than $0.00).

     Section 9.05 Investments, Loans and Advances. The Borrower will not, and will not
permit any Subsidiary to, make or permit to remain outstanding any Investments in or to any Person,
except that the foregoing restriction shall not apply to:

          (a) Investments that are disclosed to the Lenders in Schedule 9.05;

          (b) accounts receivable arising in the ordinary course of business;

          (c) direct obligations of the United States or any agency thereof, or obligations guaranteed
by the United States or any agency thereof, in each case maturing within one (1) year from the date
of creation thereof;

          (d) commercial paper maturing within one year from the date of creation thereof rated in the
highest grade by S&P or Moody’s;

          (e) deposits maturing within one (1) year from the date of creation thereof with, including
certificates of deposit issued by, any Lender or any office located in the United States of any
other bank or trust company which is organized under the laws of the United States or any state
thereof, has capital, surplus and undivided profits aggregating at least $100,000,000 (as of the
date of such bank or trust company’s most recent financial reports) and has a short term deposit
rating of no lower than A2 or P2, as such rating is set forth from time to time, by S&P or Moody’s,
respectively or, in the case of any Foreign Subsidiary, a bank organized in a jurisdiction in which
the Foreign Subsidiary conducts operations having assets in excess of $500,000,000;

          (f) repurchase obligations of any Lender or of any commercial bank satisfying the requirements
of Section 9.05(e), having a term of not more than 30 days with respect to securities
issued or fully guaranteed or insured by the United States government;

          (g) securities with maturities of six months or less from the date of acquisition backed by
standby letters of credit issued by any Lender or any commercial bank satisfying the requirements
of Section 9.05(e);

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          (h) deposits in money market funds investing exclusively in Investments described in
Section 9.05(c), Section 9.05(d), Section 9.05(e), Section 9.05(f),
or Section 9.05(g);

          (i) Investments (i) made by the Borrower in or to the Guarantors, (ii) made by any Subsidiary
in or to the Borrower or any Guarantor, (iii) made by the Borrower or any Domestic Subsidiary in or
to any Domestic Subsidiary which is not a Guarantor, (iv) made by any Foreign Subsidiary in another
Foreign Subsidiary, or (v) made by the Borrower or any Domestic Subsidiary in any Foreign
Subsidiary or any joint venture (regardless of the type of entity used to form such joint venture)
formed to operate or provide services in a jurisdiction outside of the United States; provided that
at the time of making such Investment, the Borrower is in compliance with Section 9.01(e);

          (j) Investments in stock, obligations or securities received in settlement of debts arising
from Investments permitted under this Section 9.05 owing to the Borrower or any Subsidiary
as a result of a bankruptcy or other insolvency proceeding of the obligor in respect of such debts
or upon the enforcement of any Lien in favor of the Borrower or any of its Subsidiaries; provided
that the Borrower shall give the Administrative Agent prompt written notice in the event that the
aggregate amount of all Investments held at any one time under this Section 9.05(j) exceeds
$500,000;

          (k) any Acquisition, if the following conditions would be satisfied after giving effect
thereto (such Acquisition being a “Permitted Acquisition”):

               (i) any such newly-created or acquired Subsidiary shall comply with the requirements of
Section 8.13;

               (ii) the Person to be (or the property of which is to be) so purchased or otherwise acquired
shall be engaged in substantially the same lines of business as one or more of the businesses of
the Borrower and its Subsidiaries or in a business or businesses reasonably related thereto;

               (iii) (A) immediately before giving effect to such Acquisition, no Event of Default shall have
occurred and be continuing and (B) immediately after giving effect to such Acquisition, on a pro
forma basis, (w) no Default shall have occurred and be continuing, (x) the aggregate amount of the
unused Commitments shall be at least $25,000,000, (y) the pro forma Consolidated Total Leverage
Ratio shall not be greater than 4.00 to 1.00, and (z) the Borrower shall be in pro forma compliance
with the provisions of Section 9.01(a), Section 9.01(b), Section 9.01(c),
and Section 9.01(d); the determinations to be made pursuant to clauses (x) and (y) shall be
made on a pro forma basis with respect to the most recently completed four fiscal quarter period of
the Borrower and assuming that such Acquisition (and all other Acquisitions which, in accordance
with the provisions of the definition of the term “Consolidated Total Leverage Ratio”, are to be
given pro forma effect or which have been made since the last day of such period and prior to the
date of determination) and any Indebtedness incurred or repaid in connection therewith, had been
made, incurred or repaid on the first day of such period (but without any adjustment for projected
cost savings or synergies other than cost savings and synergies realized

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within, or to be realized with, 180 days following the consummation of such Acquisition, as
demonstrated to and as approved by the Administrative Agent in its discretion); and

               (iv) with respect to any Acquisition for which the Acquisition Consideration equals or exceeds
$50,000,000, the Borrower shall have delivered to the Administrative Agent and each Lender, at
least five Business Days prior to the date on which such Acquisition is to be consummated, a
certificate of a Responsible Officer, in form and substance reasonably satisfactory to the
Administrative Agent, certifying that all of the requirement set forth in this Section
9.05(k) have been satisfied or will be satisfied on or prior to the consummation of such
Acquisition;

	 	(l)	 	Investments received in consideration for any disposition permitted under Section
9.10; provided that such transfer or sale shall be on terms reasonably satisfactory to the
Administrative Agent and that the Loan Parties shall take appropriate steps to grant a first
priority Lien in such Investments in favor of the Administrative Agent for the benefit of the
Secured Parties;
	 
	 	(m)	 	advances to officers, directors and employees of the Borrower and Subsidiaries in an
aggregate amount not to exceed $7,500,000 at any time outstanding, for travel, entertainment,
relocation and analogous ordinary business purposes;
	 
	 	(n)	 	any purchases of Equity Interests permitted under Section 9.04;
	 
	 	(o)	 	Investments by Foreign Subsidiaries in the ordinary course of business;
	 
	 	(p)	 	Investments (including Indebtedness and other obligations) received in connection with the
bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations
of, and other disputes with, customers and suppliers in the ordinary course of business; and
	 
	 	(q)	 	other Investments (including controlling interests in Persons in the same or a similar
line of business as the Borrower) not to exceed $25,000,000 in the aggregate at any time, provided
that after giving effect to such Investment, no Default or Event of Default would exist.

     Section 9.06 Nature of Business. The Borrower will not, and will not permit any
Subsidiary to, engage (directly or indirectly) in any business other than those businesses in which
the Borrower and its Subsidiaries are engaged on the Effective Date (or which are reasonably
related thereto or are reasonable extensions thereof but not any trading business or similar
activities) or allow any material change to be made in the character of its business.

     Section 9.07 Proceeds of Loans. The Borrower will not permit the proceeds of the
Loans to be used for any purpose other than those permitted by Section 7.20. Neither the
Borrower nor any Person acting on behalf of the Borrower has taken or will take any action which
might cause any of the Loan Documents to violate Regulations T, U or X or any other regulation of
the Board or to violate Section 7 of the Securities Exchange Act of 1934 or any rule or regulation
thereunder, in each case as now in effect or as the same may hereinafter be in effect.

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     Section 9.08 Sale or Discount of Receivables. Except for receivables obtained by
the Borrower or any Subsidiary out of the ordinary course of business or the settlement of joint
interest billing accounts in the ordinary course of business or discounts granted to settle
collection of accounts receivable or the sale of defaulted accounts arising in the ordinary course
of business in connection with the compromise or collection thereof and not in connection with any
financing transaction, the Borrower will not, and will not permit any Subsidiary to, discount or
sell (with or without recourse) any of its notes receivable or accounts receivable.

     Section 9.09 Mergers, Etc. The Borrower will not, and will not permit any Subsidiary
to, merge into or with or consolidate with any other Person, or permit any other Person to merge
into or consolidate with it, or sell, transfer, lease or otherwise dispose of (whether in one
transaction or in a series of transactions) all or substantially all of its Property to any other
Person (whether now owned or hereafter acquired) (any such transaction, a “consolidation”),
or liquidate or dissolve; provided that the Borrower or any Subsidiary may participate in a
consolidation with any other Person; if:

          (a) (i) no Default is continuing, (ii) any such consolidation would not cause a Default
hereunder, (iii) if the Borrower consolidates with any Person, the Borrower shall be the surviving
Person, and (iv) if any Subsidiary consolidates with any Person (other than the Borrower or another
Subsidiary) and such Subsidiary is not the surviving Person, such surviving Person shall expressly
assume in writing (in form and substance reasonably satisfactory to the Administrative Agent) all
obligations of such Subsidiary under the Loan Documents; and

          (b) any Subsidiary may participate in a consolidation with the Borrower (provided that the
Borrower shall be the continuing or surviving corporation) or any other Subsidiary and if one of
such Subsidiaries is a Wholly-Owned Subsidiary, then the surviving Person shall be a Wholly-Owned
Subsidiary.

     Section 9.10 Sale of Properties. The Borrower will not, and will not permit any
Subsidiary to, sell, assign, convey or otherwise dispose of any Property except for:

          (a) the sale of inventory in the ordinary course of business;

          (b) the sale or transfer of equipment that is obsolete, worn out or no longer necessary for,
or used or useful in, the business of the Borrower or such Subsidiary or is replaced by equipment;

          (c) Dispositions of real property to the extent that proceeds of such Disposition are
reinvested in the business of the Borrower or its Subsidiaries;

          (d) the transfer of Property to another Loan Party or to any Foreign Subsidiary to the extent
permitted by Section 9.05(i);

          (e) the sale of the Borrower’s treasury stock and the sale or issuance of any Subsidiary’s
Capital Stock to the Borrower or any Guarantor;

          (f) the disposition of light vehicles (i.e. cars and pick-up trucks but not heavy trucks or
rigs) in the ordinary course of business;

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          (g) an exchange or “swap” of fixed, tangible assets of the Borrower or any Subsidiary for the
assets of a Person other than the Borrower or any Subsidiary in the ordinary course of business,
provided that (i) the assets received will be used or useful in its business, (ii) the Borrower or
such Subsidiary, as applicable, shall have received reasonable equivalent value for such assets,
such equipment value to be demonstrated to the reasonable satisfaction of the Administration Agent;
provided further that the fair market value of all such assets of the Loan Parties exchanged or
“swapped” in any fiscal year of the Borrower does not exceed $50,000,000, and (iii) after giving
pro forma effect to such disposition and any concurrent grant of collateral, the Borrower complies
with Section 9.01(b);

          (h) dispositions described on Schedule 9.10;

          (i) the disposition of any assets (other than Equity Interests of Guarantors unless 100% of
such Equity Interests are disposed of); provided that if the fair market value of such asset is in
excess of $10,000,000 (i) 75% of the total consideration received in respect of such disposition is
comprised of cash, (ii) within one year of such disposition, the cash proceeds received are used to
acquire assets used in any Loan Party’s business, reinvested in Subsidiaries of the Borrower, or
reinvested in any joint venture permitted under Section 9.05(i) (provided that the Loan
Parties shall take appropriate steps to grant a perfected first priority Lien (subject only to
Liens permitted under Section 9.03) in any such assets in favor of the Administrative
Agent, for the benefit of the Secured Parties, to the extent required by Section 8.13),
(iii) the aggregate book value of all assets disposed of in all dispositions permitted pursuant to
this Section 9.10(i) on a cumulative basis since the Effective Date shall not exceed 15% of the
total book value of all assets of the Borrower and its Subsidiaries (determined as of any date of
determination as of the end of the fiscal quarter of the Borrower most recently ended as of such
date), and (iv) after giving pro forma effect to such disposition and any concurrent grant of
collateral, the Borrower complies with Section 9.01(b); provided that, for purposes of
calculating compliance with the foregoing limitation, the amount of the aggregate book value of all
assets disposed of in such dispositions shall be deemed to be reduced dollar-for-dollar by the book
value of any assets acquired by reinvestment of such proceeds to the extent that the Loan Parties
have granted in favor of the Administrative Agent, for the benefit of the Secured Parties, a first
priority security interest (subject only to Liens permitted under Section 9.03) and have
taken such actions in connection with the granting and perfection thereof as may be required under
Section 8.13;

          (j) dispositions of property constituting Investments permitted under Section 9.05 and
dispositions of property constituting Restricted Payments permitted by Section 9.04;

          (k) licenses of Oilfield Intellectual Property;

          (l) dispositions of drill pipe or down hole equipment lost, abandoned or destroyed in the
ordinary course of business;

          (m) the sale of past due accounts receivable permitted by Section 9.08; and

          (n) any settlement of or payment in respect of, or series of settlements or payments in
respect of, any property or casualty insurance claim or any condemnation proceeding relating to any
asset of the Borrower or any of its Subsidiaries.

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     Section 9.11 Transactions with Affiliates. The Borrower will not, and will not permit
any Subsidiary to, enter into any transaction, including, without limitation, any purchase, sale,
lease or exchange of Property or the rendering of any service, with any Affiliate (other than the
Borrower or any Wholly-Owned Subsidiary) unless such transaction is (a) not prohibited under this
Agreement and (b) upon fair and reasonable terms no less favorable to it than it would obtain in a
comparable arm’s length transaction with a Person not an Affiliate.

     Section 9.12 Subsidiaries. The Borrower will not, and will not permit any Subsidiary
to, create or acquire any additional Subsidiary unless the Borrower gives prior written notice to
the Administrative Agent of such creation or acquisition and complies with Section 8.13(a).
The Borrower shall not, and shall not permit any Subsidiary to, sell, assign or otherwise dispose
of any Equity Interests in any Subsidiary except in compliance with Section 9.10(i).

     Section 9.13 Limitation on Issuance of Equity Interests. The Borrower shall not
permit any Subsidiary to issue any Equity Interest (including by way of sales of treasury stock) or
any options or warrants to purchase, or securities convertible into, any Equity Interest, except
for Equity Interest issued to another Loan Party or a Wholly-Owned Subsidiary. The Borrower and
the Subsidiaries shall comply with Section 8.12 and Section 8.13 with respect to
any such issued Equity Interests.

     Section 9.14 Negative Pledge Agreements; Dividend Restrictions. The Borrower will
not, and will not permit any Subsidiary to, create, incur, assume or suffer to exist any contract,
agreement or understanding (other than this Agreement, the Security Instruments or Capital Leases
creating Liens permitted by Section 9.03(c)) which in any way prohibits or restricts the
granting, conveying, creation or imposition of any Lien on any of its Property in favor of the
Administrative Agent and the Lenders or restricts any Subsidiary from paying dividends or making
distributions to the Borrower or any Guarantor, or which requires the consent of or notice to other
Persons in connection therewith.

     Section 9.15 Hedging Agreements. The Borrower will not, and will not permit any
Subsidiary to, enter into any Hedging Agreements with any Person other than (a) Hedging Agreements
in respect of commodities, currencies or interest rates (i) with an Approved Counterparty and (ii)
that are not speculative in nature. In no event shall any Hedging Agreement contain any
requirement, agreement or covenant for the Borrower or any Subsidiary to post collateral or margin
to secure their obligations under such Hedging Agreement or to cover market exposures.

     Section 9.16 Sale and Leaseback. The Borrower shall not, and shall not permit any
Subsidiary to, enter into any arrangement, directly or indirectly, with any Person whereby it shall
sell or transfer any Property, whether now owned or hereafter acquired, and thereafter rent or
lease such Property which it intends to use for substantially the same purpose or purposes as the
Property being sold or transferred.

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     Section 9.17 Amendments to Organization Documents or Fiscal Year End; Prepayments of
Senior Notes.

          (a) The Borrower shall not, and shall not permit any Subsidiary to, amend, supplement or
otherwise modify (or permit to be amended, supplemented or modified) its Organization Documents in
a manner that would be adverse to the Lenders in any material respect.

          (b) The Borrower shall not, and shall not permit any Subsidiary to, change the last day of its
fiscal year from December 31 of each year, or the last days of the first three fiscal quarters in
each of its fiscal years from March 31, June 30 and September 30 of each year, respectively.

          (c) The Borrower shall not, and shall not permit any Subsidiary to, prior to the date that is
ninety-one (91) days after the Maturity Date: (i) call, make or offer to make any optional or
voluntary Redemption of or otherwise optionally or voluntarily Redeem (whether in whole or in part)
the Senior Notes unless after giving pro forma effect to such Redemption (x) the aggregate amount
of the unused Commitments are at least $25,000,000, (y) the pro forma Consolidated Total Leverage
Ratio is not greater than 3.00 to 1.00 and (z) the Borrower is in pro forma compliance with the
provisions of Section 9.01(a), Section 9.01(b), Section 9.01(c), and
Section 9.01(d); provided that the Borrower may Redeem any Senior Notes in a principal
amount not exceeding the cash proceeds of any sale of Equity Interests (other than Disqualified
Capital Stock) of the Borrower or with the aggregate principal amount of Permitted Refinancing
Debt, or (ii) amend, modify, waive or otherwise change, consent or agree to any amendment,
supplement, modification, waiver or other change to, any of the terms of the Senior Notes or any
Senior Note Indenture if the effect thereof would be to shorten its maturity or average life or
increase the amount of any payment of principal thereof or increase the rate or shorten any period
for payment of interest thereon, provided that the foregoing shall not prohibit the execution of
supplemental indentures to add guarantors if required by the terms of any Senior Indenture provided
such Person complies with Section 8.14(a).

     Section 9.18 Limitation on Capital Expenditures. The Borrower shall not, and the
Borrower shall not permit its Subsidiaries to, make Capital Expenditures if the Borrower is not in
compliance with Section 9.01(e).

     Section 9.19 Anti-Terrorism Law; Anti-Money Laundering.

          (a) The Borrower shall not, and shall not permit any Subsidiary to, directly or indirectly,
(i) knowingly conduct any business or engage in making or receiving any contribution of funds,
goods or services to or for the benefit of any Person described in Section 7.25, (ii)
knowingly deal in, or otherwise engage in any transaction relating to, any Property or interests in
Property blocked pursuant to the Executive Order or any other Anti-Terrorism Law, or (iii)
knowingly engage in or conspire to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law (and the Borrower shall deliver to any Lender any certification or other
evidence requested from time to time by such Lender confirming the Borrower’s and the Subsidiaries’
compliance with this Section 9.19(a)).

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          (b) The Borrower shall not, and shall not permit any Subsidiary to, cause or permit any of the
funds of the Borrower or any Subsidiary that are used to repay the Loans to be derived from any
unlawful activity with the result that the making of the Loans would be in violation of any
Governmental Regulation.

     Section 9.20 Embargoed Person. The Borrower shall not, and shall not permit any
Subsidiary to, permit (a) any of the funds or Properties of the Borrower or any Subsidiary that are
used to repay the Loans to constitute Property of, or be beneficially owned directly or indirectly
by, any Person subject to sanctions or trade restrictions under United States law (“Embargoed
Person” or “Embargoed Persons”) that is identified on (i) the “List of Specially
Designated Nationals and Blocked Persons” maintained by OFAC and/or on any other similar list
maintained by OFAC pursuant to any authorizing statute including, but not limited to, the
International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy
Act, 50 U.S.C. App. 1 et seq., and any Executive Order or Governmental Regulation promulgated
thereunder, with the result that the investment in the Borrower or any Subsidiary (whether directly
or indirectly) is prohibited by a Governmental Regulation, or the Loans would be in violation of a
Governmental Regulation, or (ii) the Executive Order, any related enabling legislation or any other
similar Executive Orders or (b) any Embargoed Person to have any direct or indirect interest, of
any nature whatsoever in the Borrower or any Subsidiary, with the result that the investment in the
Borrower or any Subsidiary (whether directly or indirectly) is prohibited by a Governmental
Regulation or the Loans are in violation of a Governmental Regulation.

ARTICLE X

Events of Default; Remedies

     Section 10.01 Events of Default. One or more of the following events shall constitute
an “Event of Default”:

          (a) The Borrower shall fail to pay any principal of any Loan or any reimbursement obligation
in respect of any LC Disbursement when and as the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment thereof, by acceleration or otherwise.

          (b) The Borrower shall fail to pay any interest on any Loan or any fee or any other amount
(other than an amount referred to in Section 10.01(a)) payable under any Loan Document,
when and as the same shall become due and payable, and such failure shall continue unremedied for a
period of five (5) Business Days.

          (c) Any representation or warranty made or deemed made by or on behalf of any Loan Party in or
in connection with any Loan Document or any amendment or modification of any Loan Document or
waiver under such Loan Document, or in any report, certificate, financial statement or other
document furnished pursuant to or in connection with any Loan Document or any amendment or
modification thereof or waiver thereunder, shall prove to have been incorrect in any material
respect when made or deemed made.

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          (d) The Borrower or any Guarantor shall fail to observe or perform any covenant, condition or
agreement contained in Section 8.01(j), Section 8.02, Section 8.03 or in
Article IX.

          (e) Any Loan Party or any Subsidiary of the Borrower shall fail to observe or perform any
covenant, condition or agreement contained in this Agreement (other than those specified in
Section 10.01(a), Section 10.01(b) or Section 10.01(d) or any other Loan
Document, and such failure shall continue unremedied for a period of thirty (30) days after the
earlier to occur of (i) notice thereof from the Administrative Agent to the Borrower (which notice
will be given at the request of any Lender) or (ii) a Responsible Officer of the Borrower or such
Subsidiary otherwise becoming aware of such default.

          (f) The Borrower or any Subsidiary shall fail to make any payment (whether of principal or
interest and regardless of amount) in respect of any Material Indebtedness, when and as the same
shall become due and payable, subject to any applicable cure periods.

          (g) Any event or condition occurs that results in any Material Indebtedness becoming due prior
to its scheduled maturity or that enables or permits (with or without the giving of notice, the
lapse of time or both) the holder or holders of such Material Indebtedness or any trustee or agent
on its or their behalf to cause such Material Indebtedness to become due, or to require the
Redemption thereof or any offer to Redeem to be made in respect thereof, prior to its scheduled
maturity or require the Borrower or any Subsidiary to make an offer in respect thereof.

          (h) An involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any
Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or
foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for
the Borrower or any Subsidiary or for a substantial part of its assets, and, in any such case, such
proceeding or petition shall continue undismissed for thirty (30) days or an order or decree
approving or ordering any of the foregoing shall be entered.

          (i) The Borrower or any Subsidiary shall (i) voluntarily commence any proceeding or file any
petition seeking liquidation, reorganization or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition
described in Section 10.01(h), (iii) apply for or consent to the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for the Borrower or any
Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, (v) make a general assignment
for the benefit of creditors or (vi) take any action for the purpose of effecting any of the
foregoing; or any stockholder of the Borrower shall make any request or take any action for the
purpose of calling a meeting of the stockholders of the Borrower to consider a resolution to
dissolve and wind-up the Borrower’s affairs.

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          (j) The Borrower or any Guarantor shall become unable, admit in writing its inability or fail
generally to pay its debts as they become due.

          (k) (i) One or more final, non-appealable judgments for the payment of money in an aggregate
amount in excess of $30,000,000 (to the extent not covered by independent third party insurance)
shall be rendered against the Borrower, any other Loan Party or any combination thereof and the
same shall remain undischarged for a period of sixty (60) consecutive days.

          (l) The Loan Documents after delivery thereof shall for any reason, except to the extent
permitted by the terms thereof, cease to be in full force and effect and valid, binding and
enforceable in accordance with their terms against any Loan Party which is a party thereto or shall
be repudiated by any of them, or cease to create a valid and perfected Lien of the priority
required thereby on any of the Collateral purported to be covered thereby, except to the extent
permitted by the terms of this Agreement, or any Loan Party or any of their Affiliates shall so
state in writing.

          (m) An ERISA Event shall have occurred that, in the reasonable opinion of the Majority
Lenders, when together with all other ERISA Events that have occurred, could reasonably be expected
to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding
$30,000,000 in the aggregate.

          (n) A Change in Control shall occur.

     Section 10.02 Remedies.

          (a) In the case of an Event of Default other than one described in Section 10.01(h),
Section 10.01(i) or Section 10.01(j), at any time thereafter during the continuance
of such Event of Default, the Majority Lenders, or the Administrative Agent at the direction of the
Majority Lenders may, by notice to the Borrower, take either or both of the following actions, at
the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall
terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole
(or in part, in which case any principal not so declared to be due and payable may thereafter be
declared to be due and payable), and thereupon the principal of the Loans so declared to be due and
payable, together with accrued interest thereon and all fees and other obligations of the Borrower
and the Guarantors accrued hereunder and under the Loan Documents (including, without limitation,
the payment of cash collateral to secure the LC Exposure as provided in Section 2.07(i)),
shall become due and payable immediately, without presentment, demand, protest, notice of intent to
accelerate, notice of acceleration or other notice of any kind, all of which are hereby waived by
the Borrower and each Guarantor; and in case of an Event of Default described in Section
10.01(h), Section 10.01(i) or Section 10.01(j), the Commitments shall
automatically terminate and the principal of the Loans then outstanding, together with accrued
interest thereon and all fees and the other obligations of the Borrower and the Guarantors accrued
hereunder and the other Loan Documents (including, without limitation, the payment of cash
collateral to secure the LC Exposure as provided in Section 2.07(i)), shall automatically
become due and payable, without presentment, demand, protest or other notice of any kind, all of
which are hereby waived by the Borrower and each Guarantor.

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          (b) In the case of the occurrence of an Event of Default, the Administrative Agent and the
Lenders will have all other rights and remedies available at law and equity.

          (c) All proceeds realized from the liquidation or other disposition of Collateral or otherwise
received after maturity of the Loans, whether by acceleration or otherwise, shall be applied:

               (i) first, to payment or reimbursement of that portion of the Secured Obligations constituting
fees, expenses and indemnities payable to the Administrative Agent in its capacity as such;

               (ii) second, pro rata to payment or reimbursement of that portion of the Secured Obligations
constituting fees, expenses and indemnities payable to the Lenders;

               (iii) third, pro rata to payment of accrued interest on the Loans;

               (iv) fourth, pro rata to payment of (A) principal outstanding on the Loans, (B) Secured
Obligations referred to in clause (b) of the definition of Secured Obligations owing to a Secured
Hedging Agreement Counterparty, (C) Secured Obligations referred to in clause (c) of the definition
of Secured Obligations owing to a Treasury Management Counterparty and (D) any other Secured
Obligations;

               (v) fifth, to serve as cash collateral to be held by the Administrative Agent to secure the LC
Exposure; and

               (vi) sixth, any excess, after all of the Secured Obligations shall have been indefeasibly paid
in full in cash, shall be paid to the Borrower or as otherwise required by any Governmental
Requirement.

ARTICLE XI

The Agents

     Section 11.01 Appointment; Powers. Each of the Lenders and the Issuing Bank hereby
irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent
to take such actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms hereof and the other Loan Documents, together with such actions
and powers as are reasonably incidental thereto.

     Section 11.02 Duties and Obligations of Administrative Agent. The Administrative
Agent shall not have any duties or obligations except those expressly set forth in the Loan
Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing (the use of the term “agent” herein and in the other Loan Documents with
reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or
express) obligations arising under agency doctrine of any applicable law; rather, such term is used
merely as a matter of market custom, and is intended to create or reflect only an administrative
relationship between independent contracting parties), (b) the Administrative Agent shall have no
duty to take any discretionary action or exercise any discretionary powers,

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except as provided in Section 11.03, and (c) except as expressly set forth herein, the
Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Borrower or any of its Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in
any capacity. The Administrative Agent shall be deemed not to have knowledge of any Default unless
and until written notice thereof is given to the Administrative Agent by the Borrower or a Lender,
and shall not be responsible for or have any duty to ascertain or inquire into (i) any statement,
warranty or representation made in or in connection with this Agreement or any other Loan Document,
(ii) the contents of any certificate, report or other document delivered hereunder or under any
other Loan Document or in connection herewith or therewith, (iii) the performance or observance of
any of the covenants, agreements or other terms or conditions set forth herein or in any other Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any
other Loan Document or any other agreement, instrument or document, (v) the satisfaction of any
condition set forth in Article VI or elsewhere herein, other than to confirm receipt of
items expressly required to be delivered to the Administrative Agent or as to those conditions
precedent expressly required to be to the Administrative Agent’s satisfaction, (vi) the existence,
value, perfection or priority of any collateral security or the financial or other condition of the
Borrower and its Subsidiaries or any other obligor or guarantor, or (vii) any failure by the
Borrower or any other Person (other than itself) to perform any of its obligations hereunder or
under any other Loan Document or the performance or observance of any covenants, agreements or
other terms or conditions set forth herein or therein. For purposes of determining compliance with
the conditions specified in Article VI, each Lender shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter required thereunder to
be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative
Agent shall have received written notice from such Lender prior to the proposed closing date
specifying its objection thereto.

     Section 11.03 Action by Administrative Agent. The Administrative Agent shall have no
duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents that the
Administrative Agent is required to exercise in writing as directed by the Majority Lenders (or
such other number or percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 12.02) and in all cases the Administrative Agent shall be fully
justified in failing or refusing to act hereunder or under any other Loan Documents unless it shall
(a) receive written instructions from the Majority Lenders or the Lenders, as applicable, (or such
other number or percentage of the Lenders as shall be necessary under the circumstances as provided
in Section 12.02) specifying the action to be taken and (b) be indemnified to its
satisfaction by the Lenders against any and all liability and expenses which may be incurred by it
by reason of taking or continuing to take any such action. The instructions as aforesaid and any
action taken or failure to act pursuant thereto by the Administrative Agent shall be binding on all
of the Lenders. If a Default has occurred and is continuing, then the Administrative Agent shall
take such action with respect to such Default as shall be directed by the requisite Lenders in the
written instructions (with indemnities) described in this Section 11.03, provided that,
unless and until the Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default as it shall deem advisable in the best interests of the Lenders. In
no event, however, shall the Administrative Agent be required to take any action which exposes the
Administrative

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Agent to personal liability or which is contrary to this Agreement, the Loan Documents or
applicable law. If a Default has occurred and is continuing, neither the Syndication Agent nor the
Co-Documentation Agents shall have any obligation to perform any act in respect thereof. The
Administrative Agent shall not be liable for any action taken or not taken by it with the consent
or at the request of the Majority Lenders or the Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in Section 12.02), and
otherwise the Administrative Agent shall not be liable for any action taken or not taken by it
hereunder or under any other Loan Document or under any other document or instrument referred to or
provided for herein or therein or in connection herewith or therewith INCLUDING ITS OWN ORDINARY
NEGLIGENCE, except for its own gross negligence or willful misconduct.

     Section 11.04 Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The Administrative Agent also may rely upon
any statement made to it orally or by telephone and believed by it to be made by the proper Person,
and shall not incur any liability for relying thereon and each of the Borrower, the Lenders and the
Issuing Bank hereby waives the right to dispute the Administrative Agent’s record of such
statement, except in the case of gross negligence or willful misconduct by the Administrative
Agent. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts. The Administrative Agent may deem and treat the payee of any Note as the holder
thereof for all purposes hereof unless and until a written notice of the assignment or transfer
thereof permitted hereunder shall have been filed with the Administrative Agent.

     Section 11.05 Subagents. The Administrative Agent may perform any and all its duties
and exercise its rights and powers by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its
duties and exercise its rights and powers through their respective Related Parties. The
exculpatory provisions of the preceding Sections of this Article XI shall apply to any such
sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall
apply to their respective activities in connection with the syndication of the credit facilities
provided for herein as well as activities as Administrative Agent.

     Section 11.06 Resignation of Administrative Agent. Subject to the appointment and
acceptance of a successor Administrative Agent as provided in this Section 11.06, the
Administrative Agent may resign at any time by notifying the Lenders, the Issuing Bank and the
Borrower. Upon any such resignation, the Majority Lenders shall have the right, in consultation
with the Borrower and upon the approval of the Borrower (so long as no Event of Default has
occurred and is continuing) which approval shall not be unreasonably withheld, to appoint a
successor. If no successor shall have been so appointed by the Majority Lenders and shall have
accepted such appointment within 30 days after the retiring Administrative Agent gives notice of
its resignation of the retiring Administrative Agent, then the retiring Administrative Agent may,
on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent, which

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shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon
the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its
duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative
Agent shall be the same as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the Administrative Agent’s resignation hereunder, the
provisions of this Article XI and Section 12.03 shall continue in effect for the
benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties
in respect of any actions taken or omitted to be taken by any of them while it was acting as
Administrative Agent.

     Section 11.07 Agents as Lenders. Each bank serving as an Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not an Agent, and such bank and its Affiliates may accept deposits from,
lend money to and generally engage in any kind of business with the Borrower or any Subsidiary or
other Affiliate thereof as if it were not an Agent hereunder.

     Section 11.08 No Reliance. Each Lender acknowledges that it has, independently and
without reliance upon the Administrative Agent, any other Agent or any other Lender and based on
such documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement and each other Loan Document to which it is a party. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent, any other Agent or any other Lender and based on such documents and information as it shall
from time to time deem appropriate, continue to make its own decisions in taking or not taking
action under or based upon this Agreement, any other Loan Document, any related agreement or any
document furnished hereunder or thereunder. The Agents shall not be required to keep themselves
informed as to the performance or observance by the Borrower or any of its Subsidiaries of this
Agreement, the Loan Documents or any other document referred to or provided for herein or to
inspect the Properties or books of the Borrower or its Subsidiaries. Except for notices, reports
and other documents and information expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, no Agent or the Arrangers shall have any duty or responsibility to
provide any Lender with any credit or other information concerning the affairs, financial condition
or business of the Borrower (or any of its Affiliates) which may come into the possession of such
Agent or any of its Affiliates. In this regard, each Lender acknowledges that Vinson & Elkins
L.L.P. is acting in this transaction as special counsel to the Administrative Agent only, except to
the extent otherwise expressly stated in any legal opinion or any Loan Document. Each other party
hereto will consult with its own legal counsel to the extent that it deems necessary in connection
with the Loan Documents and the matters contemplated therein.

     Section 11.09 Administrative Agent May File Proofs of Claim. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Borrower or any of its Subsidiaries, the
Administrative Agent (irrespective of whether the principal of any Loan shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of

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whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled
and empowered, by intervention in such proceeding or otherwise:

          (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans and all other Indebtedness that are owing and unpaid and to file
such other documents as may be necessary or advisable in order to have the claims of the Lenders
and the Administrative Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and the Administrative Agent and their respective agents
and counsel and all other amounts due the Lenders and the Administrative Agent under Section
12.03) allowed in such judicial proceeding; and

          (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same.

     Any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its
agents and counsel, and any other amounts due the Administrative Agent under Section 12.03.
Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Indebtedness or the rights of any Lender or to authorize
the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

     Section 11.10 Authority of Administrative Agent to Release Collateral and Liens. Each
Lender and the Issuing Bank hereby authorizes the Administrative Agent to release any collateral
that is permitted to be sold or released pursuant to the terms of the Loan Documents. Each Lender
and the Issuing Bank hereby authorizes the Administrative Agent to execute and deliver to the
Borrower, at the Borrower’s sole cost and expense, any and all releases of Liens, termination
statements, assignments or other documents reasonably requested by the Borrower in connection with
any release of a Mortgaged Property under Section 8.13(c) or any sale or other disposition
of Property to the extent such sale or other disposition is permitted by the terms of Section
9.10 or is otherwise authorized by the terms of the Loan Documents.

     Section 11.11 The Arrangers, the Syndication Agent and the Co-Documentation Agents.
The Arrangers, the Syndication Agent and the Co-Documentation Agents shall have no duties,
responsibilities or liabilities under this Agreement and the other Loan Documents other than their
duties, responsibilities and liabilities in their capacity as Lenders hereunder.

ARTICLE XII

Miscellaneous

     Section 12.01 Notices.

          (a) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to Section 12.01(b)),

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all notices and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
facsimile, as follows:

               (i) if to the Borrower, to it at the following:

Key Energy Services, Inc.

1301 McKinney, Suite 1800

Houston, Texas 77010

Attn: Marshall Dodson

Phone: 713.651.4531

Fax: 713.651.4556

Email: mdodson@keyenergy.com

               (ii) if to the Administrative Agent or Swing Line Lender to it at the following:

JPMorgan Chase Bank, N.A.

1111 Fannin Street, Floor 10

Houston, TX 77002

Attn: Brenda Alleyne

Fax: 713.427.6307

Email: Brenda.a.alleyne@jpmchase.com

               (iii) if to the Issuing Bank, to it the following:

JPMorgan Chase Bank, N.A.

1111 Fannin Street, Floor 10

Houston, TX 77002

Attn: Brenda Alleyne

Fax: 713.427.6307

Email: Brenda.a.alleyne@jpmchase.com

               (iv) if to any other Lender, to it at its address (or facsimile number) set forth in its
Administrative Questionnaire.

     Notices sent by hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have
been given when sent (except that, if not given during normal business hours for the recipient,
shall be deemed to have been given at the opening of business on the next business day for the
recipient). Notices delivered through electronic communications to the extent provided in
Section 12.01(b) below, shall be effective as provided in Section 12.01(b).

          (b) Electronic Communications.

               (i) Notices and other communications to the Lenders and the Issuing Bank hereunder may be
delivered or furnished by electronic communication (including e-mail and Internet or intranet
websites) pursuant to procedures approved by the Administrative Agent;

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provided that the foregoing shall not apply to notices to any Lender or the Issuing Bank
pursuant to Article II, Article III, Article IV and Article V if
such Lender or the Issuing Bank, as applicable, has notified the Administrative Agent that it is
incapable of receiving notices under such Article(s) by electronic communication. The
Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to procedures approved by it;
provided that approval of such procedures may be limited to particular notices or communications.

               (ii) Unless the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an
acknowledgement from the intended recipient (such as by the “return receipt requested” function, as
available, return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefore.

          (c) Change of Address, Etc. Any party hereto may change its address or facsimile
number for notices and other communications hereunder by notice to the other parties hereto.

     Section 12.02 Waivers; Amendments.

          (a) No failure on the part of the Administrative Agent, the Issuing Bank or any Lender to
exercise and no delay in exercising, and no course of dealing with respect to, any right, power or
privilege, or any abandonment or discontinuance of steps to enforce such right, power or privilege,
under any of the Loan Documents shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege under any of the Loan Documents preclude any other or
further exercise thereof or the exercise of any other right, power or privilege. The rights and
remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder and under the
other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provision of this Agreement or any other Loan Document or consent
to any departure by the Borrower therefrom shall in any event be effective unless the same shall be
permitted by Section 12.02(b), and then such waiver or consent shall be effective only in
the specific instance and for the purpose for which given. Without limiting the generality of the
foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a
waiver of any Default, regardless of whether the Administrative Agent, any Lender or the Issuing
Bank may have had notice or knowledge of such Default at the time.

          (b) Neither this Agreement nor any provision hereof nor any Security Instrument nor any
provision thereof may be waived, amended or modified except pursuant to an agreement or agreements
in writing entered into by the Borrower and the Majority Lenders or by the Borrower and the
Administrative Agent with the consent of the Majority Lenders; provided that no such agreement
shall (i) increase the Commitment of any Lender without the written

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consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or
reduce the rate of interest thereon, or reduce any fees payable hereunder, or reduce any other
Secured Obligations hereunder or under any other Loan Document, without the written consent of each
Lender adversely affected thereby, (iii) postpone the scheduled date of payment or prepayment of
the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable
hereunder, or any other Secured Obligations hereunder or under any other Loan Document, or reduce
the amount of, waive or excuse any such payment, or postpone or extend the Termination Date or
Maturity Date without the written consent of each Lender adversely affected thereby, (iv) release
any Guarantor (except as permitted pursuant to the Guarantee and Collateral Agreement) or release
all or substantially all of the Collateral, without the written consent of each Lender (other than
any Defaulting Lender), (v) modify Section 4.01(b) or Section 4.01(c) in a manner that would alter
the pro rata sharing of payments required thereby, (vi) modify the terms of Section
10.02(c) without the consent of each Lender adversely affected thereby and the consent of each
Person that is adversely affected thereby and a party to a Secured Hedging Agreement which is not a
Lender (or an Affiliate of a Lender) at the time of such agreement or (vii) change any of the
provisions of this Section 12.02(b) or the definition of “Majority Lenders” or any
other provision hereof specifying the number or percentage of Lenders required to waive, amend or
modify any rights hereunder or under any other Loan Documents or make any determination or grant
any consent hereunder or any other Loan Documents, without the written consent of each Lender other
than any Defaulting Lender; provided further that no such agreement shall amend, modify or
otherwise affect the rights or duties of the Administrative Agent, any other Agent, the Swing Line
Lender or the Issuing Bank hereunder or under any other Loan Document without the prior written
consent of the Administrative Agent, such other Agent, the Swing Line Lender or the Issuing Bank,
as the case may be. Notwithstanding the foregoing, any supplement to Schedule 7.14
(Subsidiaries) shall be effective simply by delivering to the Administrative Agent a supplemental
schedule clearly marked as such and, upon receipt, the Administrative Agent will promptly deliver a
copy thereof to the Lenders.

     Section 12.03 Expenses, Indemnity; Damage Waiver.

          (a) Costs and Expenses. The Borrower shall pay (i) all reasonable out-of-pocket
expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees,
charges and disbursements of counsel and other outside consultants for the Administrative Agent) in
connection with the syndication of the credit facilities provided for herein, the preparation,
negotiation, execution, delivery and administration (both before and after the execution hereof and
including advice of counsel to the Administrative Agent as to the rights and duties of the
Administrative Agent and the Lenders with respect thereto) of this Agreement and the other Loan
Documents and any amendments, modifications or waivers of or consents related to the provisions
hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be
consummated), provided that the Arrangers and the Administrative Agent shall be limited to one
primary counsel and one local counsel in each other jurisdiction in which the Borrower, a Guarantor
or any material Collateral is located, (ii) all reasonable costs, expenses, Taxes, assessments and
other charges incurred by any Administrative Agent or any Lender in connection with any filing,
registration, recording or perfection of any security interest contemplated by this Agreement or
any Security Instrument or any other document referred to therein, and (iii) all reasonable
out-of-pocket expenses incurred by the Administrative Agent, the

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Issuing Bank or any Lender (including the fees, charges and disbursements of any counsel for
any Agent, the Issuing Bank or any Lender) in connection with the enforcement or protection of its
rights in connection with this Agreement and the other Loan Documents, including its rights under
this Section 12.03, or in connection with the Loans made or Letters of Credit issued
hereunder, including, without limitation, all such reasonable out-of-pocket expenses incurred
during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit,
provided that the Administrative Agent and the Lenders shall be limited to one primary counsel and
one local counsel in each other jurisdiction in which the Borrower, a Guarantor or any material
Collateral is located.

          (b) INDEMNIFICATION BY THE BORROWER. THE BORROWER SHALL INDEMNIFY EACH AGENT (AND ANY
SUB-AGENT THEREOF), THE ARRANGERS, THE ISSUING BANK AND EACH LENDER, AND EACH RELATED PARTY OF ANY
OF THE FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”) AGAINST, AND HOLD
EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES, PENALTIES, LIABILITIES AND
RELATED EXPENSES, INCLUDING THE REASONABLE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY
INDEMNITEE, INCURRED BY ANY INDEMNITEE OR ASSERTED AGAINST ANY INDEMNITEE BY A THIRD PARTY OR BY
THE BORROWER OR ANY SUBSIDIARY ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF (i) THE
EXECUTION OR DELIVERY OF THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT
CONTEMPLATED HEREBY OR THEREBY, THE PERFORMANCE BY THE PARTIES HERETO OR THE PARTIES TO ANY OTHER
LOAN DOCUMENT OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREUNDER OR THE CONSUMMATION OF THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, (ii) THE FAILURE OF THE BORROWER OR ANY SUBSIDIARY TO
COMPLY WITH THE TERMS OF ANY LOAN DOCUMENT, INCLUDING THIS AGREEMENT, OR WITH ANY GOVERNMENTAL
REQUIREMENT, (iii) ANY INACCURACY OF ANY REPRESENTATION OR ANY BREACH OF ANY WARRANTY OR COVENANT
OF THE BORROWER OR ANY GUARANTOR SET FORTH IN ANY OF THE LOAN DOCUMENTS OR ANY INSTRUMENTS,
DOCUMENTS OR CERTIFICATIONS DELIVERED IN CONNECTION THEREWITH, (iv) ANY LOAN OR LETTER OF CREDIT OR
THE USE OF THE PROCEEDS THEREFROM, INCLUDING, WITHOUT LIMITATION, ANY REFUSAL BY THE ISSUING BANK
TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION
WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT, (v) ANY OTHER
ASPECT OF THE LOAN DOCUMENTS, (vi) THE OPERATIONS OF THE BUSINESS OF THE BORROWER AND ITS
SUBSIDIARIES BY THE BORROWER AND ITS SUBSIDIARIES, (vii) ANY ASSERTION THAT THE LENDERS WERE NOT
ENTITLED TO RECEIVE THE PROCEEDS RECEIVED PURSUANT TO THE SECURITY INSTRUMENTS, (viii) ANY
ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER OR ANY SUBSIDIARY OR ANY OF THEIR PROPERTIES OR
OPERATIONS, INCLUDING, THE PRESENCE, GENERATION, STORAGE, RELEASE, THREATENED RELEASE, USE,
TRANSPORT, DISPOSAL, ARRANGEMENT OF DISPOSAL OR TREATMENT OF HAZARDOUS MATERIALS ON OR AT ANY OF
THEIR PROPERTIES, (ix) THE BREACH OR NON-COMPLIANCE BY

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THE BORROWER OR ANY SUBSIDIARY WITH ANY ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER OR ANY
SUBSIDIARY, (x) THE PAST OWNERSHIP BY THE BORROWER OR ANY SUBSIDIARY OF ANY OF THEIR PROPERTIES OR
PAST ACTIVITY ON ANY OF THEIR PROPERTIES WHICH, THOUGH LAWFUL AND FULLY PERMISSIBLE AT THE TIME,
COULD RESULT IN PRESENT LIABILITY, (xi) THE PRESENCE, USE, RELEASE, STORAGE, TREATMENT, DISPOSAL,
GENERATION, THREATENED RELEASE, TRANSPORT, ARRANGEMENT FOR TRANSPORT OR ARRANGEMENT FOR DISPOSAL OF
HAZARDOUS MATERIALS ON OR AT ANY OF THE PROPERTIES OWNED OR OPERATED BY THE BORROWER OR ANY
SUBSIDIARY OR ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY
PROPERTY OWNED OR OPERATED BY THE BORROWER OR ANY OF ITS SUBSIDIARIES, (xii) ANY ENVIRONMENTAL
LIABILITY RELATED IN ANY WAY TO THE BORROWER OR ANY OF ITS SUBSIDIARIES, OR (xiii) ANY OTHER
ENVIRONMENTAL, HEALTH OR SAFETY CONDITION IN CONNECTION WITH THE LOAN DOCUMENTS, OR (xiv) ANY
ACTUAL OR PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE
FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY, WHETHER BROUGHT BY A THIRD PARTY OR
BY THE BORROWER OR ANY SUBSIDIARY, AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO, AND
SUCH INDEMNITY SHALL EXTEND TO EACH INDEMNITEE NOTWITHSTANDING THE SOLE OR CONCURRENT NEGLIGENCE OF
EVERY KIND OR CHARACTER WHATSOEVER, WHETHER ACTIVE OR PASSIVE, WHETHER AN AFFIRMATIVE ACT OR AN
OMISSION, INCLUDING WITHOUT LIMITATION, ALL TYPES OF NEGLIGENT CONDUCT IDENTIFIED IN THE
RESTATEMENT (SECOND) OF TORTS OF ONE OR MORE OF THE INDEMNITEES OR BY REASON OF STRICT LIABILITY
IMPOSED WITHOUT FAULT ON ANY ONE OR MORE OF THE INDEMNITEES; PROVIDED THAT SUCH INDEMNITY SHALL
NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES,
LIABILITIES OR RELATED EXPENSES (x) ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL
AND NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH
INDEMNITEE OR (y) RESULT FROM A CLAIM BROUGHT BY THE BORROWER OR ANY SUBSIDIARY AGAINST ANY
INDEMNITEE FOR BREACH IN BAD FAITH OF SUCH INDEMNITEE’S OBLIGATIONS HEREUNDER OR UNDER ANY OTHER
LOAN DOCUMENT, IF THE BORROWER OR SUCH SUBSIDIARY HAS OBTAINED A FINAL AND NONAPPEALABLE JUDGMENT
IN ITS FAVOR ON SUCH CLAIM AS DETERMINED BY A COURT OF COMPETENT JURISDICTION; AND PROVIDED FURTHER
THAT THE INDEMNITY SET FORTH HEREIN SHALL NOT APPLY TO DISPUTES BETWEEN LENDERS UNLESS SUCH DISPUTE
RESULTS FROM THE EXISTENCE OF A BREACH OF ANY LOAN DOCUMENT BY A LOAN PARTY.

          (c) Reimbursement by Lenders. To the extent that the Borrower for any reason fails to
pay indefeasibly any amount required by Section 12.03(a) or (b) to be paid by it to
any Agent (or any sub-agent thereof), the Arrangers, the Issuing Bank or any Related Party of any
of the foregoing, each Lender severally agrees to pay to such Agent (or any such sub-agent), the
Arrangers, the Issuing Bank or such Related Party, as the case may be, such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense or

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indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by
or asserted against such Agent (or any such sub-agent), the Arrangers or the Issuing Bank in its
capacity as such, or against any Related Party of any of the foregoing acting for the Agent (or any
such sub-agent), the Arrangers or the Issuing Bank in connection with such capacity.

          (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee,
on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to
direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby or thereby, the
Transactions, any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee
referred to in Section 12.03(b) shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in connection with this
Agreement or the other Loan Documents or the Transactions.

          (e) Payments. All amounts due under this Section 12.03 shall be payable
promptly after written demand therefor.

     Section 12.04 Assignments and Participations.

          (a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including any Affiliate of the Issuing Bank that issues a Letter of
Credit), except that (i) the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of the Administrative Agent and each
Lender, and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder
except (A) to an assignee in accordance with the provisions of Section 12.04(b), (B) by way
of participation in accordance with the provisions of Section 12.04(d), or (C) by way of
pledge or assignment of a security interest subject to the restrictions of Section 12.04(f)
(and any other attempted assignment or transfer by any party hereto shall be null and void).
Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns permitted hereby (including
any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants (to the extent
provided in Section 12.04(d)) and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the Issuing Bank and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

          (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans at the time owing to it); provided that any such
assignments shall be subject to the following conditions:

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               (i) Minimum Amounts.

                    (A) in the case of an assignment of the entire remaining amount of the assigning Lender’s
Commitment and the Loans at the time owing to it or in the case of an assignment to a Lender, an
Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

                    (B) in any case not described in Section 12.04(b)(i)(A), the aggregate amount of the
Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable
Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning
Lender subject to each such assignment (determined as of the date the Assignment and Assumption
with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date) shall not be less than
$5,000,000, unless each of the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed).

               (ii) Required Consents. Subject to the conditions set forth in Section
12.04(b)(i)(B) any Lender may assign to a Lender or an Affiliate of a Lender with the prior
written consent of (such consent not to be unreasonably withheld or delayed):

                    (A) the Borrower provided that no consent shall be required if (x) an Event of Default has
occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an
Affiliate of a Lender or an Approved Fund. The Borrower shall be deemed to have consented to any
such assignment unless it shall object thereto by written notice to the Administrative Agent within
five (5) Business Days after having received notice thereof;

                    (B) the Administrative Agent for assignments in respect of a Commitment or Revolving Credit
Exposure if such assignment is to a Person that is not a Lender with a Commitment, an Affiliate of
such Lender or an Approved Fund with respect to such Lender; and

                    (C) the Issuing Bank for any assignment that increases the obligation of the assignee to
participate in LC Exposure (whether or not then outstanding).

               (iii) Assignment and Assumption. The parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of $3,500, and the assignee, if it is not a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire.

               (iv) No Assignment to Borrower. No such assignment shall be made to the Borrower or
any of the Borrower’s Affiliates or Subsidiaries.

               (v) No Assignment to Natural Persons. No such assignment shall be made to a natural
person.

     Subject to acceptance and recording thereof by the Administrative Agent pursuant to
Section 12.04(c), from and after the effective date specified in each Assignment and
Assumption,

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the assignee thereunder shall be a party to this Agreement and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Section 5.01, Section 5.02, Section 5.03 and
Section 12.03 with respect to facts and circumstances occurring prior to the effective date
of such assignment. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this Section 12.04 shall be treated for purposes of
this Agreement as a sale by such Lender of a participation in such rights and obligations in
accordance with Section 12.04(d).

          (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses of the Lenders, and
the Commitments of, and principal amount of the Loans and LC Disbursements owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and the Borrower, the Administrative Agent, the Issuing Bank and the
Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof
as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.
The Register shall be available for inspection by the Borrower, the Issuing Bank and any Lender, at
any reasonable time and from time to time upon reasonable prior notice. In connection with any
changes to the Register, if necessary, the Administrative Agent will reflect the revisions on
Annex I and forward a copy of such revised Annex I to the Borrower, the Issuing
Bank and each Lender.

          (d) Participations.

               (i) Any Lender may at any time, without the consent of, or notice to the Borrower, the
Administrative Agent, the Issuing Bank or the Swing Line Lender, sell participations to any Person
(other than a natural Person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries)
(each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations
under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it);
provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the performance of such
obligations and (iii) the Borrower, the Administrative Agent, the Issuing Bank and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement.

               (ii) Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such agreement
or instrument may provide that such Lender will not, without the consent of the Participant, agree
to any amendment, modification or waiver described in the proviso to Section 12.02 that
affects such Participant. In addition such agreement must provide that the Participant be bound by
the provisions of Section 12.03. Subject to Section

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12.04(e), the Borrower agrees that each Participant shall be entitled to the benefits
of Section 5.01, Section 5.02 and Section 5.03 to the same extent as if it
were a Lender and had acquired its interest by assignment pursuant to Section 12.04(b). To
the extent permitted by law, each Participant also shall be entitled to the benefits of Section
12.08 as though it were a Lender, provided that such Participant agrees to be subject to
Section 4.01(c) as though it were a Lender.

          (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 5.01 or Section 5.03 than the applicable
Lender would have been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made with the Borrower’s
prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not
be entitled to the benefits of Section 5.03 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 5.03(d) as though it were a Lender

          (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations of such Lender,
including, without limitation, any pledge or assignment to secure obligations to a Federal Reserve
Bank, and this Section 12.04(e) shall not apply to any such pledge or assignment of a
security interest; provided that no such pledge or assignment of a security interest shall release
a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

          (g) Restrictions if Registration Required. Notwithstanding any other provisions of
this Section 12.04, no transfer or assignment of the interests or obligations of any Lender
or any grant of participations therein shall be permitted if such transfer, assignment or grant
would require the Borrower and the Guarantors to file a registration statement with the SEC or to
qualify the Loans under the “Blue Sky” laws of any state.

     Section 12.05 Survival; Revival; Reinstatement.

          (a) All covenants, agreements, representations and warranties made by the Borrower herein and
in the certificates or other instruments delivered in connection with or pursuant to this Agreement
or any other Loan Document shall be considered to have been relied upon by the other parties hereto
and shall survive the execution and delivery of this Agreement and the making of any Loans and
issuance of any Letters of Credit, regardless of any investigation made by any such other party or
on its behalf and notwithstanding that the Administrative Agent, any other Agent, the Issuing Bank
or any Lender may have had notice or knowledge of any Default or incorrect representation or
warranty at the time any credit is extended hereunder, and shall continue in full force and effect
as long as the principal of or any accrued interest on any Loan or any fee or any other amount
payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Commitments have not expired or terminated. The provisions of Section 5.01,
Section 5.02, Section 5.03 and Section 12.03 and Article XI shall
survive and remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of
Credit and the Commitments or the termination of this Agreement, any other Loan Document or any
provision hereof or thereof.

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          (b) To the extent that any payments on the Secured Obligations or proceeds of any Collateral
are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to
be repaid to a trustee, debtor in possession, receiver or other Person under any bankruptcy law,
common law or equitable cause, then to such extent, the Secured Obligations so satisfied shall be
revived and continue as if such payment or proceeds had not been received and the Administrative
Agent’s and the Lenders’ Liens, security interests, rights, powers and remedies under this
Agreement and each Loan Document shall continue in full force and effect. In such event, each Loan
Document shall be automatically reinstated and the Borrower shall take such action as may be
reasonably requested by the Administrative Agent and the Lenders to effect such reinstatement.

     Section 12.06 Counterparts; Integration; Effectiveness; Electronic Execution.

          (a) Counterparts. This Agreement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.

          (b) Integration. This Agreement, the other Loan Documents and any separate letter
agreements with respect to fees payable to the Administrative Agent constitute the entire contract
among the parties relating to the subject matter hereof and thereof and supersede any and all
previous agreements and understandings, oral or written, relating to the subject matter hereof and
thereof. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE
PARTIES HERETO AND THERETO 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.

          (c) Effectiveness. Except as provided in Section 6.01, this Agreement shall
become effective when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof that, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page of this Agreement by facsimile or other electronic
transmission shall be effective as delivery of a manually executed counterpart of this Agreement.

          (d) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

     Section 12.07 Severability. Any provision of this Agreement or any other Loan
Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability
without

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affecting the validity, legality and enforceability of the remaining provisions hereof or
thereof; and the invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.

     Section 12.08 Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender, the Issuing Bank and each of their respective Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by applicable law, to
set off and apply any and all deposits (general or special, time or demand, provisional or final,
in whatever currency) at any time held and other obligations (of whatsoever kind, including,
without limitations obligations under Hedging Agreements, and in whatever currency) at any time
owing by such Lender, the Issuing Bank or any such Affiliate to or for the credit or the account of
the Borrower or any Subsidiary against any and all of the obligations of the Borrower or any
Subsidiary now or hereafter existing under this Agreement or any other Loan Document to such Lender
or the Issuing Bank, irrespective of whether or not such Lender or the Issuing Bank shall have made
any demand under this Agreement or any other Loan Document and although such obligations of the
Borrower or such Subsidiary may be contingent or unmatured or are owed to a branch or office of
such Lender or the Issuing Bank different from the branch or office holding such deposit or
obligated on such Indebtedness. The rights of each Lender, the Issuing Bank and their respective
Affiliates under this Section 12.08 are in addition to other rights and remedies (including
other rights of setoff) that such Lender, the Issuing Bank or their respective Affiliates may have.
Each Lender and the Issuing Bank agrees to notify the Borrower and the Administrative Agent
promptly after any such setoff and application; provided that the failure to give such notice shall
not affect the validity of such setoff and application.

     Section 12.09 GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS.

          (a) THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THE LOAN DOCUMENTS SHALL BE BROUGHT IN THE
COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW
YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HEREBY ACCEPTS FOR ITSELF AND
(TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION,
INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR
PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE AND
DOES NOT PRECLUDE A PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE
HAVING JURISDICTION.

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          (c) EACH PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED
MAIL, POSTAGE PREPAID, TO IT AT THE ADDRESS SPECIFIED IN SECTION 12.01 OR SUCH OTHER
ADDRESS AS IS SPECIFIED PURSUANT TO SECTION 12.01 (OR ITS ASSIGNMENT AND ASSUMPTION), SUCH
SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE
RIGHT OF A PARTY OR ANY HOLDER OF A NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR
TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANOTHER PARTY IN ANY OTHER JURISDICTION.

          (d) EACH PARTY HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY) AND FOR ANY COUNTERCLAIM THEREIN; (ii) IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT
PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL,
EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
DAMAGES; (iii) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVERS, AND (iv) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE LOAN DOCUMENTS AND THE TRANSACTIONS
CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
CONTAINED IN THIS SECTION 12.09.

     Section 12.10 Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

     Section 12.11 Confidentiality. Each of the Administrative Agent, the Issuing Bank and
the Lenders agrees to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective
partners, directors, officers, employees, agents, advisors and other representatives (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information confidential), (b) to the extent
requested by any regulatory authority purporting to have jurisdiction over it (including any
self-regulatory authority, such as the National Association of Insurance Commissioners); provided
Borrower has been given reasonable advance notice thereof and been afforded an opportunity to limit
or protest the disclosure, (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process; provided Borrower has been given reasonable advance

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notice thereof and been afforded an opportunity to limit or protest the disclosure, (d) to any
other party to this Agreement or any other Loan Document, (e) in connection with the exercise of
any remedies hereunder or under any other Loan Document or any suit, action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder,
(f) subject to an agreement containing provisions substantially the same as those of this
Section 12.11, to (i) any assignee of or Participant in, or any prospective assignee of or
Participant in, any of its rights or obligations under this Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any Hedging Agreement relating to the Borrower and
its obligations, (g) with the consent of the Borrower or (h) to the extent such Information (i)
becomes publicly available other than as a result of a breach of this Section 12.11 or (ii)
becomes available to the Administrative Agent, the Issuing Bank, any Lender or any of their
respective Affiliates on a nonconfidential basis from a source other than the Borrower. For
purposes of this Section 12.11, “Information” means all information received from
the Borrower or any Subsidiary relating to the Borrower or any Subsidiary or any of their
respective businesses, other than any such information that is available to the Administrative
Agent, the Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by the
Borrower or a Subsidiary; provided that, in the case of information received from the Borrower or
any Subsidiary after the date hereof, such information is clearly identified at the time of
delivery as confidential. Any Person required to maintain the confidentiality of Information as
provided in this Section 12.11 shall be considered to have complied with its obligation to
do so if such Person has exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

     Section 12.12 Interest Rate Limitation. It is the intention of the parties hereto
that each Lender shall conform strictly to usury laws applicable to it. Accordingly, if the
Transactions contemplated hereby would be usurious as to any Lender 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), then, in that event, notwithstanding anything to the contrary in any
of the Loan Documents or any agreement entered into in connection with or as security for the
Secured Obligations, it is agreed as follows: (i) the aggregate of all consideration which
constitutes interest under law applicable to any Lender that is contracted for, taken, reserved,
charged or received by such Lender under any of the Loan Documents or agreements or otherwise in
connection with the Loans shall under no circumstances exceed the maximum amount allowed by such
applicable law, and any excess shall be canceled automatically and if theretofore paid shall be
credited by such Lender on the principal amount of the Secured Obligations (or, to the extent that
the principal amount of the Secured Obligations shall have been or would thereby be paid in full,
refunded by such Lender to the Borrower); and (ii) in the event that the maturity of the Loans is
accelerated by reason of an election of the holder thereof resulting from any Event of Default
under this Agreement or otherwise, or in the event of any required or permitted prepayment, then
such consideration that constitutes interest under law applicable to any Lender may never include
more than the maximum amount allowed by such applicable law, and excess interest, if any, provided
for in this Agreement or otherwise shall be canceled automatically 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 Secured Obligations (or, to the extent that the principal amount of the
Secured Obligations shall have been or would thereby be paid in full, refunded by such Lender to
the Borrower). All sums paid or agreed to be paid to any Lender for

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the use, forbearance or detention of sums due hereunder shall, to the extent permitted by law
applicable to such Lender, be amortized, prorated, allocated and spread throughout the stated term
of the Loans until payment in full so that the rate or amount of interest on account of any Loans
hereunder does not exceed the maximum amount allowed by such applicable law. If at any time and
from time to time (i) the amount of interest payable to any Lender on any date shall be computed at
the Highest Lawful Rate applicable to such Lender pursuant to this Section 12.12 and (ii)
in respect of any subsequent interest computation period the amount of interest otherwise payable
to such Lender would be less than the amount of interest payable to such Lender computed at the
Highest Lawful Rate applicable to such Lender, then the amount of interest payable to such Lender
in respect of such subsequent interest computation period shall continue to be computed at the
Highest Lawful Rate applicable to such Lender until the total amount of interest payable to such
Lender shall equal the total amount of interest which would have been payable to such Lender if the
total amount of interest had been computed without giving effect to this Section 12.12.

     Section 12.13 EXCULPATION PROVISIONS. EACH OF THE PARTIES HERETO SPECIFICALLY AGREES
THAT IT HAS A DUTY TO READ THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND AGREES THAT IT IS
CHARGED WITH NOTICE AND KNOWLEDGE OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; THAT
IT HAS IN FACT READ THIS AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF THE
TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL
COUNSEL OF ITS CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS; AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS RESULT IN ONE PARTY ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS OF
THE TRANSACTION AND RELIEVING THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY
HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY
EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ON THE BASIS THAT THE PARTY
HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.”

     Section 12.14 Collateral Matters; Hedging Agreements; Treasury Management Agreements.
The benefit of the Security Instruments and of the provisions of this Agreement relating to any
Collateral securing the Secured Obligations shall also extend to and be available to Secured
Hedging Agreement Counterparties and Treasury Management Counterparties on a pro rata basis in
respect of any obligations of the Borrower or any of its Subsidiaries which arise under any such
Secured Hedging Agreement or Treasury Management Agreements. Except as set forth in Section
12.02(b)(v), no Lender or Affiliate of a Lender shall have any voting rights under any Loan
Document as a result of the existence of obligations owed to it under any such Secured Hedging
Agreements or Treasury Management Agreements.

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     Section 12.15 No Third Party Beneficiaries. This Agreement, the other Loan Documents,
and the agreement of the Lenders to make Loans, the Issuing Bank to issue, amend, renew or extend
Letters of Credit and the Swing Line Lender to make Swing Line Loans hereunder are solely for the
benefit of the Borrower, and no other Person (including, without limitation, any Subsidiary of the
Borrower, any obligor, contractor, subcontractor, supplier or materialman) shall have any rights,
claims, remedies or privileges hereunder or under any other Loan Document against the
Administrative Agent, any other Agent, the Issuing Bank or any Lender for any reason whatsoever.
There are no third party beneficiaries.

     Section 12.16 USA Patriot Act Notice. Each Lender hereby notifies the Borrower that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) (the “USA Patriot Act”), it is required to obtain, verify and record
information that identifies the Borrower and its Subsidiaries, which information includes the name
and address of the Borrower and its Subsidiaries and other information that will allow such Lender
to identify the Borrower and its Subsidiaries in accordance with the USA Patriot Act.

[SIGNATURES BEGIN NEXT PAGE]

102

 

     The parties hereto have caused this Agreement to be duly executed as of the day and year
first above written.

	 	 	 	 	 
	BORROWER:  	KEY ENERGY SERVICES, INC.

 	 
	 	By:  	/s/ J. Marshall Dodson
 	 
	 	 	Name:  	J. Marshall Dodson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	ADMINISTRATIVE AGENT: 	 JPMORGAN CHASE BANK, N.A., as Administrative Agent,
Swing Line Lender and Lender

 	 
	 	By:  	/s/ Robert Traband
 	 
	 	 	Name:  	Robert Traband 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	SYNDICATION AGENT:  	BANK OF AMERICA, N.A., as Syndication Agent and Lender

 	 
	 	By:  	/s/ Gary L. Mingle
 	 
	 	 	Name:  	Gary L. Mingle 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	CO-DOCUMENTATION AGENT: 	 CAPITAL ONE, N.A., as Co-Documentation Agent and

Lender

 	 
	 	By:  	/s/ John W. Stam
 	 
	 	 	Name:  	John W. Stam 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	CO-DOCUMENTATION AGENT:  	WELLS FARGO BANK, N.A., as Co-Documentation Agent and
Lender

 	 
	 	By:  	/s/ Brad Ellis
 	 
	 	 	Name:  	Brad Ellis 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	 	COMERICA BANK, as Lender

 	 
	 	By:  	/s/ Cyd Dillahunty
 	 
	 	 	Name:  	Cyd Dillahunty 	 
	 	 	Title:  	Vice President—Texas Division 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	 	CREDIT SUISSE AG, Cayman Islands Branch, as

Lender

 	 
	 	By:  	                          /s/ Nupur Kumar
 	 
	 	 	Name:  	Nupur Kumar 	 
	 	 	Title:  	Vice President 	 

	 	 	 	 	 
	 	By:  	                          /s/ Rahul Parmar
 	 
	 	 	Name:  	Rahul Parmar 	 
	 	 	Title:  	Associate 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	 	MORGAN STANLEY BANK, N.A., as Lender

 	 
	 	By:  	/s/ Ryan Vetsch
 	 
	 	 	Name:  	Ryan Vetsch 	 
	 	 	Title:  	Authorized Signatory 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA, as Lender

 	 
	 	By:  	/s/ Jay T. Sartain
 	 
	 	 	Name:  	Jay T. Sartain 	 
	 	 	Title:  	Authorized Signatory 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA, as Lender

 	 
	 	By:  	/s/ John Frazell
 	 
	 	 	Name:  	John Frazell 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	 	AMEGY BANK, as Lender

 	 
	 	By:  	/s/ G. Scott Collins
 	 
	 	 	Name:  	G. Scott Collins 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	 	COMPASS BANK, as Lender

 	 
	 	By:  	/s/ David C. Moriniere
 	 
	 	 	Name:  	David C. Moriniere 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as
Lender

 	 
	 	By:  	/s/ Michael Getz
 	 
	 	 	Name:  	Michael Getz 	 
	 	 	Title:  	Vice President 	 

	 	 	 	 	 
	 	By:  	                      /s/ Marcus M. Tarkington
 	 
	 	 	Name:  	Marcus M. Tarkington 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	 	HSBC BANK USA, N.A., as Lender

 	 
	 	By:  	/s/ Dale T. Wilson
 	 
	 	 	Name:  	Dale T. Wilson 	 
	 	 	Title:  	Senior Vice President 	 

	 	 	 	 	 
	 	By:  	                       /s/ Bruce Robinson
 	 
	 	 	Name:  	Bruce Robinson 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

 

 

ANNEX I

LIST OF COMMITMENTS

	 	 	 	 	 	 	 	 	 
	Name of Lender	 	Commitment	 	 	Applicable Percentage	 
	JPMorgan Chase Bank, N.A.
	 	$	50,000,000.00	 	 	 	12.5	%
	Bank of America, N.A.
	 	$	45,000,000.00	 	 	 	11.3	%
	Capital One, N.A.
	 	$	40,000,000.00	 	 	 	10.0	%
	Comerica Bank
	 	$	32,833,333.33	 	 	 	8.2	%
	Credit Suisse AG
	 	$	32,833,333.33	 	 	 	8.2	%
	Morgan Stanley Bank, N.A.
	 	$	32,833,333.33	 	 	 	8.2	%
	Royal Bank of Canada
	 	$	32,833,333.33	 	 	 	8.2	%
	The Bank of Nova Scotia
	 	$	32,833,333.33	 	 	 	8.2	%
	Wells Fargo Bank, N.A.
	 	$	32,833,333.33	 	 	 	8.2	%
	Amegy Bank
	 	$	17,000,000.00	 	 	 	4.3	%
	Compass Bank
	 	$	17,000,000.00	 	 	 	4.3	%
	Deutsche Bank Trust Company
Americas
	 	$	17,000,000.00	 	 	 	4.3	%
	HSBC Bank USA, N.A.
	 	$	17,000,000.00	 	 	 	4.3	%
	 
	 	 	 	 	 	 	 	 
	TOTAL
	 	$	400,000,000.00	 	 	 	100.0	%

Annex I

 

EXHIBIT A

FORM OF NOTE

			
	 	 	 
	$[          ]
	 	[               ], 201[   ]

FOR VALUE RECEIVED, Key Energy Services, Inc., a Maryland corporation (the “Borrower”),
hereby promises to pay to [          ] (the “Lender”), at the principal office of JPMorgan
Chase Bank, N.A. (the “Administrative Agent”), at [          ], the principal sum of [          ] Dollars ($[          ]) (or such lesser amount as shall equal the aggregate unpaid principal
amount of the Loans made by the Lender to the Borrower under the Credit Agreement, as hereinafter
defined), in lawful money of the United States of America and in immediately available funds, on
the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on the
unpaid principal amount of each such Loan, at such office, in like money and funds, for the period
commencing on the date of such Loan until such Loan shall be paid in full, at the rates per annum
and on the dates provided in the Credit Agreement.

The date, amount, Type, interest rate, Interest Period and maturity of each Loan made by the Lender
to the Borrower, and each payment made on account of the principal thereof, shall be recorded by
the Lender on its books and, prior to any transfer of this Note, may be endorsed by the Lender on
the schedules attached hereto or any continuation thereof or on any separate record maintained by
the Lender. Failure to make any such notation or to attach a schedule shall not affect any
Lender’s or the Borrower’s rights or obligations in respect of such Loans or affect the validity of
such transfer by any Lender of this Note.

This Note is one of the Notes referred to in the Credit Agreement dated as of March 31, 2011 among
the Borrower, the Administrative Agent, and the other agents and lenders signatory thereto
(including the Lender), and evidences Loans made by the Lender thereunder (such Credit Agreement as
the same may be amended, supplemented or restated from time to time, the “Credit
Agreement”). Capitalized terms used in this Note have the respective meanings assigned to them
in the Credit Agreement.

This Note is issued pursuant to, and is subject to the terms and conditions set forth in, the
Credit Agreement and is entitled to the benefits provided for in the Credit Agreement and the other
Loan Documents. The Credit Agreement provides for the acceleration of the maturity of this Note
upon the occurrence of certain events, for prepayments of Loans upon the terms and conditions
specified therein and other provisions relevant to this Note.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

	 	 	 	 	 
	 	KEY ENERGY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit A - 1

 

 

EXHIBIT B

FORM OF BORROWING REQUEST

[               ], 201[   ]

     Key Energy Services, Inc., a Maryland corporation (the “Borrower”), pursuant to
Section 2.03 of the Credit Agreement dated as of March 31, 2011 (together with all
amendments, restatements, supplements or other modifications thereto, the “Credit
Agreement”) among the Borrower, JPMorgan Chase Bank, N.A., as Administrative Agent and the
other agents and lenders (the “Lenders”) which are or become parties thereto (unless
otherwise defined herein, each capitalized term used herein is defined in the Credit Agreement),
hereby requests a Borrowing as follows:

     (i) Aggregate amount of the requested Borrowing is $[          ];

     (ii) Date of such Borrowing is [               ], 201[   ];

     (iii) Requested Borrowing is to be [an ABR Borrowing] [a Eurodollar Borrowing];

     (iv) In the case of a Eurodollar Borrowing, the initial Interest Period applicable thereto is [               ];

     (v) Location and number of the Borrower’s account to which funds are to be disbursed, which
shall comply with the requirements of Section 2.05 of the Credit Agreement, is as follows:

[___________________]

[___________________]

[___________________]

[___________________]

[___________________]

Exhibit B - 1

 

 

     The undersigned certifies that he/she is the [               ] of the Borrower, and that as
such he/she is authorized to execute this certificate on behalf of the Borrower. The undersigned
further certifies, represents and warrants on behalf of the Borrower that the Borrower is entitled
to receive the requested Borrowing under the terms and conditions of the Credit Agreement.

	 	 	 	 	 
	 	KEY ENERGY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit B - 2

 

 

EXHIBIT C

FORM OF INTEREST ELECTION REQUEST

[               ], 201[   ]

     Key Energy Services, Inc., a Maryland corporation (the “Borrower”), pursuant to
Section 2.04 of the Credit Agreement dated as of March 31, 2011 (together with all
amendments, restatements, supplements or other modifications thereto, the “Credit
Agreement”) among the Borrower, JPMorgan Chase Bank, N.A., as Administrative Agent and the
other agents and lenders (the “Lenders”) which are or become parties thereto (unless
otherwise defined herein, each capitalized term used herein is defined in the Credit Agreement),
hereby makes an Interest Election Request as follows:

     (i) The Borrowing to which this Interest Election Request applies, and if different options
are being elected with respect to different portions thereof, the portions thereof to be allocated
to each resulting Borrowing (in which case the information specified pursuant to (iii) and (iv)
below shall be specified for each resulting Borrowing) is [               ];

     (ii) The effective date of the election made pursuant to this Interest Election Request is [               ], 201[   ];[and]

     (iii) The resulting Borrowing is to be [an ABR Borrowing] [a Eurodollar Borrowing][; and]

     [(iv) [If the resulting Borrowing is a Eurodollar Borrowing] The Interest Period applicable to
the resulting Borrowing after giving effect to such election is [               ]].

     The undersigned certifies that he/she is the [               ] of the Borrower, and that as
such he/she is authorized to execute this certificate on behalf of the Borrower. The undersigned
further certifies, represents and warrants on behalf of the Borrower that the Borrower is entitled
to receive the requested continuation or conversion under the terms and conditions of the Credit
Agreement.

	 	 	 	 	 
	 	KEY ENERGY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit C - 1

 

 

EXHIBIT D

FORM OF CERTIFICATE OF FINANCIAL OFFICER

     The undersigned hereby certifies that he/she is the [               ] of Key Energy Services, Inc.,
a Maryland corporation (the “Borrower”), and that as such he/she is authorized to execute
this certificate on behalf of the Borrower. With reference to the Credit Agreement dated as of
March 31, 2011 (together with all amendments, restatements, supplements or other modifications
thereto being the “Credit Agreement”) among the Borrower, JPMorgan Chase Bank, N.A., as
Administrative Agent, and the other agents and lenders (the “Lenders”) which are or become
a party thereto, and such Lenders, the undersigned represents and warrants as follows (each
capitalized term used herein having the same meaning given to it in the Agreement unless otherwise
specified):

     (a) There exists no Default or Event of Default [or specify Default and describe].

     (b) Attached hereto are the detailed computations necessary to determine whether the Borrower
is in compliance with Section 9.01 as of the end of the [fiscal quarter][fiscal year]
ending [               ].

     (c) Since December 31, 2010, no change in GAAP or in the application thereof has occurred [or
specify such change and the effect thereof on the financial statements].

EXECUTED AND DELIVERED this [               ] day of [               ].

	 	 	 	 	 
	 	KEY ENERGY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit D - 1

 

 

EXHIBIT E

FORM OF GUARANTY AND COLLATERAL AGREEMENT

[See attached]

Exhibit E - 1

 

 

Execution Version

GUARANTEE AND COLLATERAL AGREEMENT

dated as of March 31, 2011

made by

each of the Grantors (as defined herein)

in favor of

JPMorgan Chase Bank, N.A.,

as Administrative Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE I Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Other Definitional Provisions; References
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II Guarantee
	 	 	3	 
	 
	 	 	 	 
	Section 2.01 Guarantee
	 	 	3	 
	Section 2.02 Payments
	 	 	4	 
	 
	 	 	 	 
	ARTICLE III Grant of Security Interest
	 	 	4	 
	 
	 	 	 	 
	Section 3.01 Grant of Security Interest
	 	 	4	 
	Section 3.02 Transfer of Pledged Securities
	 	 	6	 
	Section 3.03 Grantors Remains Liable under Accounts, Chattel Paper and Payment
Intangibles
	 	 	6	 
	 
	 	 	 	 
	ARTICLE IV Acknowledgments, Waivers and Consents
	 	 	7	 
	 
	 	 	 	 
	Section 4.01 Acknowledgments, Waivers and Consents
	 	 	7	 
	Section 4.02 No Subrogation, Contribution or Reimbursement
	 	 	9	 
	 
	 	 	 	 
	ARTICLE V Representations and Warranties
	 	 	10	 
	 
	 	 	 	 
	Section 5.01 Representations in Credit Agreement
	 	 	10	 
	Section 5.02 Benefit to the Guarantor
	 	 	10	 
	Section 5.03 Perfected First Priority Liens
	 	 	10	 
	Section 5.04 Legal Name, Organizational Status, Chief Executive Office
	 	 	10	 
	Section 5.05 Prior Names and Chief Executive Offices
	 	 	10	 
	Section 5.06 Pledged Securities
	 	 	10	 
	Section 5.07 Goods
	 	 	11	 
	Section 5.08 Instruments and Chattel Paper
	 	 	11	 
	Section 5.09 Governmental Obligors
	 	 	11	 
	Section 5.10 Patents and Trademarks
	 	 	11	 
	Section 5.11 Commercial Tort Claims
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VI Covenants
	 	 	11	 
	 
	 	 	 	 
	Section 6.01 Covenants in Credit Agreement
	 	 	12	 
	Section 6.02 Maintenance of Perfected Security Interest; Further Documentation
	 	 	12	 
	Section 6.03 Maintenance of Records
	 	 	12	 
	Section 6.04 Right of Inspection
	 	 	12	 
	Section 6.05 Further Identification of Collateral
	 	 	13	 
	Section 6.06 Changes in Locations, Name, Etc.
	 	 	13	 
	Section 6.07 Compliance with Contractual Obligations
	 	 	13	 
	Section 6.08 Pledged Securities
	 	 	13	 
	Section 6.09 Limitations on Modifications, Waivers, Extensions of Agreements Giving Rise
to Accounts
	 	 	14	 
	Section 6.10 Analysis of Accounts, Etc.
	 	 	14	 
	Section 6.11 Instruments and Tangible Chattel Paper
	 	 	15	 
	Section 6.12 Maintenance of Equipment
	 	 	15	 
	Section 6.13 Patents and Trademarks
	 	 	15	 
	Section 6.14 Commercial Tort Claims
	 	 	16	 

i

 

	 	 	 	 	 

	ARTICLE VII Limitation on Perfection
	 	 	17	 
	 
	 	 	 	 
	Section 7.01 Chattel Paper and Instruments
	 	 	17	 
	Section 7.02 Documents
	 	 	17	 
	Section 7.03 Letter-of-Credit Rights
	 	 	17	 
	Section 7.04 Fixtures
	 	 	17	 
	Section 7.05 Certain Assets
	 	 	18	 
	Section 7.06 Deposit Accounts; Liquid Assets
	 	 	18	 
	Section 7.07 Vehicles
	 	 	18	 
	 
	 	 	 	 
	ARTICLE VIII Remedial Provisions
	 	 	18	 
	 
	 	 	 	 
	Section 8.01 Pledged Securities
	 	 	18	 
	Section 8.02 Collections on Accounts, Etc.
	 	 	19	 
	Section 8.03 Proceeds
	 	 	20	 
	Section 8.04 New York UCC and Other Remedies
	 	 	20	 
	Section 8.05 Private Sales of Pledged Securities
	 	 	21	 
	Section 8.06 Waiver; Deficiency
	 	 	22	 
	Section 8.07 Non-Judicial Enforcement
	 	 	22	 
	 
	 	 	 	 
	ARTICLE IX The Administrative Agent
	 	 	22	 
	 
	 	 	 	 
	Section 9.01 Administrative Agent’s Appointment as Attorney-in-Fact, Etc.
	 	 	22	 
	Section 9.02 Duty of Administrative Agent
	 	 	24	 
	Section 9.03 Financing Statements
	 	 	24	 
	Section 9.04 Authority of Administrative Agent
	 	 	25	 
	 
	 	 	 	 
	ARTICLE X Subordination of Indebtedness
	 	 	25	 
	 
	 	 	 	 
	Section 10.01 Subordination of All Guarantor Claims
	 	 	25	 
	Section 10.02 Claims in Bankruptcy
	 	 	25	 
	Section 10.03 Payments Held in Trust
	 	 	26	 
	Section 10.04 Liens Subordinate
	 	 	26	 
	Section 10.05 Notation of Records
	 	 	26	 
	 
	 	 	 	 
	ARTICLE XI Miscellaneous
	 	 	26	 
	 
	 	 	 	 
	Section 11.01 Waiver
	 	 	26	 
	Section 11.02 Notices
	 	 	26	 
	Section 11.03 Payment of Expenses, Indemnities, Etc.
	 	 	27	 
	Section 11.04 Amendments in Writing
	 	 	27	 
	Section 11.05 Successors and Assigns
	 	 	27	 
	Section 11.06 Invalidity
	 	 	27	 
	Section 11.07 Counterparts
	 	 	28	 
	Section 11.08 Survival
	 	 	28	 
	Section 11.09 Captions
	 	 	28	 
	Section 11.10 No Oral Agreements
	 	 	28	 
	Section 11.11 Governing Law; Submission to Jurisdiction
	 	 	28	 
	Section 11.12 Acknowledgments
	 	 	29	 
	Section 11.13 Additional Grantors
	 	 	30	 
	Section 11.14 Set-Off
	 	 	30	 
	Section 11.15 Releases
	 	 	30	 
	Section 11.16 Reinstatement
	 	 	31	 
	Section 11.17 Acceptance
	 	 	31	 

ii

 

SCHEDULES:

	 	1.	 	Notice Addresses of Guarantors
	 
	 	2.	 	Description of Pledged Securities
	 
	 	3.	 	Filings and Other Actions Required to Perfect Security Interests
	 
	 	4.	 	Correct Legal Name, Location of Jurisdiction of Organization, Organizational
Identification Number, Taxpayor Identification Number and Chief Executive Office
	 
	 	5.	 	Prior Names and Prior Chief Executive Office
	 
	 	6.	 	Patents and Patent Licenses
	 
	 	7.	 	Trademarks and Trademark Licenses
	 
	 	8.	 	Commercial Tort Claims

ANNEX:

	 	1.	 	Form of Assumption Agreement

iii

 

Execution Version

     THIS GUARANTEE AND COLLATERAL AGREEMENT, dated as of March 31, 2011, is made by Key
Energy Services, Inc., a Maryland corporation (the “Borrower”), and each of the other
signatories hereto other than the Administrative Agent (the Borrower and each of the other
signatories hereto other than the Administrative Agent, together with any other Subsidiary of the
Borrower that becomes a party hereto from time to time after the date hereof, the
“Grantors”), in favor of JPMorgan Chase Bank, N.A., as administrative agent (in such
capacity, together with its successors in such capacity, the “Administrative Agent”), for
the banks and other financial institutions (the “Lenders”) from time to time parties to the
Credit Agreement, dated as of March 31, 2011 (as amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”), among the Borrower, the Lenders, the Administrative
Agent, and the other Agents party thereto.

     NOW, THEREFORE, in consideration of the premises and to induce the Administrative Agent and
the Lenders to enter into the Credit Agreement and to induce the Lenders to make their respective
extensions of credit to the Borrower thereunder, each Grantor hereby agrees with the Administrative
Agent, for the ratable benefit of the Lenders, as follows:

ARTICLE I

Definitions

     Section 1.01 Definitions.

          (a) As used in this Agreement, each term defined above shall have the meaning indicated above.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have
the meanings given to them in the Credit Agreement, and the following terms as well as all
uncapitalized terms which are defined in the New York UCC on the date hereof are used herein as so
defined: Accounts, Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, Electronic
Chattel Paper, Equipment, Fixtures, General Intangibles, Goods, Instruments, Inventory, Investment
Property, Letter-of-Credit Rights, Payment Intangibles, Proceeds, Supporting Obligations, and
Tangible Chattel Paper.

          (b) The following terms shall have the following meanings:

     “Account Debtor” shall mean a Person (other than any Grantor) obligated on an Account,
Chattel Paper, or General Intangible.

     “Agreement” shall mean this Guarantee and Collateral Agreement, as the same may be
amended, supplemented or otherwise modified from time to time.

     “Collateral” shall have the meaning assigned such term in Section 3.01.

     “Guarantors” shall mean, collectively, each Grantor other than the Borrower.

     “Issuers” shall mean, collectively, each issuer of a Pledged Security.

     “Liquid Assets” shall mean, all cash and cash equivalents at any time held by any of
the Grantors, including all amounts from time to time held in any checking, saving, deposit or
other account of any of the Grantors, all monies, proceeds or sums due or to become due therefrom
or

 

 

thereon and all documents (including, but not limited to passbooks, certificates and receipts)
evidencing all fund and investments held in such accounts.

     “New York UCC” shall mean the Uniform Commercial Code, as it may be amended, from time
to time in effect in the State of New York.

     “Obligations” shall mean, collectively, all Indebtedness, liabilities and obligations
of the Borrower and each Guarantor to the Administrative Agent, the Issuing Bank, the Lenders and
each Secured Hedging Agreement Counterparty, of whatsoever nature and howsoever evidenced, due or
to become due, now existing or hereafter arising, whether direct or indirect, absolute or
contingent, which may arise under, out of, or in connection with the Credit Agreement, the other
Loan Documents, each Secured Hedging Agreement, each Treasury Management Agreement and all other
agreements, guarantees, notes and other documents entered into by any party in connection
therewith, and any amendment, restatement or modification of any of the foregoing, including, but
not limited to, the full and punctual payment when due of any unpaid principal of the Loans and LC
Exposure, any amounts payable in respect of an early termination under any Secured Hedging
Agreement, interest (including, without limitation, interest accruing at any post-default rate and
interest accruing after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding), fees, reimbursement obligations, guaranty
obligations, penalties, indemnities, legal and other fees, charges and expenses, and amounts
advanced by and expenses incurred in order to preserve any collateral or security interest, whether
due after acceleration or otherwise.

     “Patents” shall mean: (i) all letters patent of the United States and all reissues and
extensions thereof, including, without limitation, any thereof referred to in Schedule 6
hereto, and (ii) all applications for letters patent of the United States and all divisions,
continuations and continuations-in-part thereof or any other country, including, without
limitation, any thereof referred to in Schedule I hereto.

     “Patent License” shall mean all agreements, whether written or oral, providing for the
grant by any Grantor of any right to manufacture, use or sell any invention covered by a Patent,
including, without limitation, any thereof referred to in Schedule 6 hereto.

     “Pledged Securities” shall mean: (i) the equity interests described or referred to in
Schedule 2; and (ii) (a) the certificates or instruments, if any, representing such equity
interests, (b) all dividends (cash, stock or otherwise), cash, instruments, rights to subscribe,
purchase or sell and all other rights and property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such equity interests, (c) all
replacements, additions to and substitutions for any of the property referred to in this
definition, including, without limitation, claims against third parties, (d) the proceeds,
interest, profits and other income of or on any of the property referred to in this definition and
(e) all books and records relating to any of the property referred to in this definition.

     “Secured Parties” shall mean, collectively, the Administrative Agent, each Issuing
Bank, each Lender, each Secured Hedging Agreement Counterparty and each Treasury Management
Counterparty.

-2-

 

     “Securities Act” shall mean the Securities Act of 1933, as amended.

     “Trademarks” shall mean: (i) all trademarks, trade names, corporate names, company
names, business names, fictitious business names, trade styles, service marks, logos and other
source or business identifiers, and the goodwill associated therewith, now existing or hereafter
adopted or acquired, all registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any similar office or
agency of the United States, any State thereof or any other country or any political subdivision
thereof, or otherwise, including, without limitation, any thereof referred to in Schedule 7
hereto, and (ii) all renewals thereof.

     “Trademark License” shall mean any agreement, written or oral, providing for the grant
by any Grantor of any right to use any Trademark, including, without limitation, any thereof
referred to in Schedule 7 hereto.

     “Vehicles” shall mean all cars, trucks, trailers, construction and earth moving
equipment and other vehicles covered by a certificate of title law of any state and, all tires and
other appurtenances to any of the foregoing.

     Section 1.02 Other Definitional Provisions; References. The meanings given to terms
defined herein shall be equally applicable to both the singular and plural forms of such terms.
The gender of all words shall include the masculine, feminine, and neuter, as appropriate. The
words “herein,” “hereof,” “hereunder” and other words of similar import when used in this Agreement
refer to this Agreement as a whole, and not to any particular article, section or subsection. Any
reference herein to a Section shall be deemed to refer to the applicable Section of this Agreement
unless otherwise stated herein. Any reference herein to an exhibit, schedule or annex shall be
deemed to refer to the applicable exhibit, schedule or annex attached hereto unless otherwise
stated herein. Where the context requires, terms relating to the Collateral or any part thereof,
when used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part
thereof.

ARTICLE II

Guarantee

     Section 2.01 Guarantee.

          (a) Each of the Guarantors hereby, jointly and severally, unconditionally and irrevocably,
guarantees to the Administrative Agent, for the ratable benefit of the Secured Parties and each of
their respective successors, endorsees, transferees and assigns, the prompt and complete payment
and performance by the Borrower and the Guarantors when due (whether at the stated maturity, by
acceleration or otherwise) of the Obligations. This is a guarantee of payment and not collection,
and the liability of each Guarantor is primary and not secondary.

          (b) Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum
liability of each Guarantor hereunder and under the other Loan Documents shall in no event exceed
the amount which can be guaranteed by such Guarantor under applicable federal and state laws
relating to the insolvency of debtors.

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          (c) Each Guarantor agrees that the Obligations may at any time and from time to time exceed
the amount of the liability of such Guarantor hereunder without impairing the guarantee contained
in this Article II or affecting the rights and remedies of the Administrative Agent or any
Secured Party hereunder.

          (d) Each Guarantor agrees that if the maturity of any of the Obligations is accelerated by
bankruptcy or otherwise, such maturity shall also be deemed accelerated for the purpose of this
guarantee without demand or notice to such Guarantor. The guarantee contained in this Article
II shall remain in full force and effect until all the Obligations shall have been satisfied by
payment in full, no Letter of Credit shall be outstanding (except any Letter of Credit cash
collateralized in accordance with the terms of the Credit Agreement) and all Secured Hedging
Agreements secured hereby and the Credit Agreement and the aggregate Commitments shall be
terminated, notwithstanding that from time to time during the term of the Credit Agreement, no
Obligations may be outstanding.

          (e) No payment made by the Borrower, any of the Guarantors, any other guarantor or any other
Person or received or collected by the Administrative Agent or any other Secured Party from the
Borrower, any of the Guarantors, any other guarantor or any other Person by virtue of any action or
proceeding or any set-off or appropriation or application at any time or from time to time in
reduction of or in payment of the Obligations shall be deemed to modify, reduce, release or
otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such
payment (other than any payment made by such Guarantor in respect of the Obligations or any payment
received or collected from such Guarantor in respect of the Obligations), remain liable for the
Obligations up to the maximum liability of such Guarantor hereunder until (i) the Obligations are
paid in full, (ii) no Letter of Credit are outstanding (except any Letter of Credit cash
collateralized in accordance with the terms of the Credit Agreement), and (iii) all Secured Hedging
Agreements secured hereby, the Credit Agreement and the aggregate Commitments are terminated.

     Section 2.02 Payments. Each Guarantor hereby agrees and guarantees that payments
hereunder will be paid to the Administrative Agent without set-off or counterclaim in Dollars at
the principal office of the Administrative Agent specified pursuant to the Credit Agreement.

ARTICLE III

Grant of Security Interest

     Section 3.01 Grant of Security Interest. Each Grantor hereby pledges, assigns and
transfers to the Administrative Agent, and grants to the Administrative Agent, for the ratable
benefit of the Secured Parties, a security interest in all of the following property now owned or
at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in
the future may acquire any right, title or interest and whether now existing or hereafter coming
into existence (collectively, the “Collateral”), as collateral security for the prompt and
complete payment and performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations:

     (1) all Accounts;

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     (2) all Chattel Paper (whether Tangible Chattel Paper or Electronic Chattel Paper);

     (3) all Commercial Tort Claims;

     (4) all Deposit Accounts other than payroll, withholding tax and other fiduciary
Deposit Accounts;

     (5) all Documents;

     (6) all General Intangibles (including, without limitation, rights in and under any
Hedging Agreements and other contracts and contract rights);

     (7) all Goods (including, without limitation, all Inventory and all Equipment, but
excluding all Fixtures);

     (8) all Instruments;

     (9) all Investment Property;

     (10) all Letter-of-Credit Rights (whether or not the letter of credit is evidenced by a
writing;

     (11) all Patents;

     (12) all Patent Licenses;

     (13) all Pledged Securities;

     (14) all Supporting Obligations;

     (15) all Trademarks;

     (16) all Vehicles;

     (17) all books and records pertaining to the Collateral; and

     (18) to the extent not otherwise included, all Proceeds and products of any and all of
the foregoing and all collateral security, guarantees and other Supporting Obligations given
with respect to any of the foregoing.

Notwithstanding anything herein to the contrary, in no event shall the Collateral include, and no
Grantor shall be deemed to have granted a security interest in, any of such Grantor’s right, title
or interest (a) in any contracts, instruments, licenses or other agreements, as to which the grant
of a security interest therein would (i) constitute a violation of a valid and enforceable
restriction in favor of a third party on such grant, unless and until any required consents shall
have been obtained or (ii) give any other party to such contract, instrument, license or other
agreement the right to terminate its obligations thereunder in any asset, or (b) the granting of a
security interest in which would be void, voidable or illegal under any applicable Governmental
Requirement,

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that would result in, or permit the termination of the right, title or interest of such Grantor in
or to such asset; provided that any of the foregoing exclusions set forth in clause (a) or (b)
above shall not apply if (x) such prohibition has been waived or such other party has otherwise
consented to the creation hereunder of a security interest in such asset or (y) such prohibition
would be rendered ineffective pursuant to Section 9-406, 9-407 or 9-408 of Article 9 of the New
York UCC or any other Governmental Requirement; and provided further that immediately upon the
ineffectiveness, lapse or termination of any such provision, such Grantor shall be deemed to have
granted a security interest in all its rights, title and interests in and to such contract or
agreement.

     Section 3.02 Transfer of Pledged Securities. All certificates and instruments
representing or evidencing the Pledged Securities shall be delivered to and held pursuant hereto by
the Administrative Agent or a Person designated by the Administrative Agent and, in the case of an
instrument or certificate in registered form, shall be duly indorsed to the Administrative Agent or
in blank by an effective indorsement (whether on the certificate or instrument or on a separate
writing), and accompanied by any required transfer tax stamps to effect the pledge of the Pledged
Securities to the Administrative Agent. Notwithstanding the preceding sentence, all Pledged
Securities must be delivered or transferred in such manner, and each Grantor shall take all such
further action as may be requested by the Administrative Agent, as to permit the Administrative
Agent to be a “protected purchaser” to the extent of its security interest as provided in Section
8-303 of the New York UCC (if the Administrative Agent otherwise qualifies as a protected
purchaser).

     Section 3.03 Grantors Remains Liable under Accounts, Chattel Paper and Payment
Intangibles. Anything herein to the contrary notwithstanding, each Grantor shall remain liable
under each of the Accounts, Chattel Paper and Payment Intangibles to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, all in accordance with
the terms of any agreement giving rise to each such Account, Chattel Paper or Payment Intangible,
except to the extent and after such time as the Administrative Agent forecloses on the agreement
giving rise to such Account, Chattel Paper or Payment Intangible. Neither the Administrative Agent
nor any other Secured Party shall have any obligation or liability under any Account, Chattel Paper
or Payment Intangible (or any agreement giving rise thereto) by reason of or arising out of this
Agreement or the receipt by the Administrative Agent or any such other Secured Party of any payment
relating to such Account, Chattel Paper or Payment Intangible, pursuant hereto, nor shall the
Administrative Agent or any other Secured Party be obligated in any manner to perform any of the
obligations of any Grantor under or pursuant to any Account, Chattel Paper or Payment Intangible
(or any agreement giving rise thereto), to make any payment, to make any inquiry as to the nature
or the sufficiency of any payment received by it or as to the sufficiency of any performance by any
party under any Account, Chattel Paper or Payment Intangible (or any agreement giving rise
thereto), to present or file any claim, to take any action to enforce any performance or to collect
the payment of any amounts which may have been assigned to it or to which it may be entitled at any
time or times, except to the extent and after such time as the Administrative Agent forecloses on
the agreement giving rise to such Account, Chattel Paper or Payment Intangible.

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ARTICLE IV

Acknowledgments, Waivers and Consents

     Section 4.01 Acknowledgments, Waivers and Consents.

          (a) Each Grantor acknowledges and agrees that the obligations undertaken by it under this
Agreement involve the guarantee and the provision of collateral security for the obligations of
Persons other than such Grantor and that such Grantor’s guarantee and provision of collateral
security for the Obligations are absolute, irrevocable and unconditional under any and all
circumstances. In full recognition and furtherance of the foregoing, each Grantor understands and
agrees, to the fullest extent permitted under applicable law and except as may otherwise be
expressly and specifically provided in the Loan Documents, that each Grantor shall remain obligated
hereunder (including, without limitation, with respect to the guarantee made by such Grantor hereby
and the collateral security provided by such Grantor herein) and the enforceability and
effectiveness of this Agreement and the liability of such Grantor, and the rights, remedies, powers
and privileges of the Administrative Agent and the other Secured Parties under this Agreement and
the other Loan Documents shall not be affected, limited, reduced, discharged or terminated in any
way:

               (i) notwithstanding that, without any reservation of rights against any Grantor and without
notice to or further assent by any Grantor, (A) any demand for payment of any of the Obligations
made by the Administrative Agent or any other Secured Party may be rescinded by the Administrative
Agent or such other Secured Party and any of the Obligations continued; (B) the Obligations, the
liability of any other Person upon or for any part thereof or any collateral security or guarantee
therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by,
or any indulgence or forbearance in respect thereof granted by, the Administrative Agent or any
other Secured Party; (C) the Credit Agreement, the other Loan Documents, any Secured Hedging
Agreement and any other documents executed and delivered in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or the
Majority Lenders or all Lenders, as the case may be) may deem advisable from time to time; (D) the
Borrower, any Grantor or any other Person may from time to time accept or enter into new or
additional agreements, security documents, guarantees or other instruments in addition to, in
exchange for or relative to, any Loan Document or Permitted Hedge Agreement, all or any part of the
Obligations or any Collateral now or in the future serving as security for the Obligations; (E) any
collateral security, guarantee or right of offset at any time held by the Administrative Agent or
any other Secured Party for the payment of the Obligations may be sold, exchanged, waived,
surrendered or released; and (F) any other event shall occur which constitutes a defense or release
of sureties generally; and

               (ii) without regard to, and each Grantor hereby expressly waives to the fullest extent
permitted by law any defense now or in the future arising by reason of, (A) the illegality,
invalidity or unenforceability of the Credit Agreement, any other Loan Document, any Secured
Hedging Agreement, any of the Obligations or any other collateral security therefor or guarantee or
right of offset with respect thereto at any time or from time to time held by the Administrative
Agent or any other Secured Party, (B) any defense, set-off or counterclaim (other

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than a defense of payment or performance) which may at any time be available to or be asserted
by any Grantor or any other Person against the Administrative Agent or any other Secured Party, (C)
the insolvency, bankruptcy arrangement, reorganization, adjustment, composition, liquidation,
disability, dissolution or lack of power of any Grantor or any other Person at any time liable for
the payment of all or part of the Obligations or the failure of the Administrative Agent or any
other Secured Party to file or enforce a claim in bankruptcy or other proceeding with respect to
any Person; or any sale, lease or transfer of any or all of the assets of the any Grantor, or any
changes in the shareholders of any Grantor; (D) the fact that any Collateral or Lien contemplated
or intended to be given, created or granted as security for the repayment of the Obligations shall
not be properly perfected or created, or shall prove to be unenforceable or subordinate to any
other Lien, it being recognized and agreed by each of the Grantors that it is not entering into
this Agreement in reliance on, or in contemplation of the benefits of, the validity,
enforceability, collectability or value of any of the Collateral for the Obligations; (E) any
failure of the Administrative Agent or any other Secured Party to marshal assets in favor of any
Grantor or any other Person, to exhaust any collateral for all or any part of the Obligations, to
pursue or exhaust any right, remedy, power or privilege it may have against any Grantor or any
other Person or to take any action whatsoever to mitigate or reduce any Grantor’s liability under
this Agreement or any other Loan Document; (F) any law which provides that the obligation of a
surety or guarantor must neither be larger in amount nor in other respects more burdensome than
that of the principal or which reduces a surety’s or guarantor’s obligation in proportion to the
principal obligation; (G) the possibility that the Obligations may at any time and from time to
time exceed the aggregate liability of such Grantor under this Agreement; or (H) any other
circumstance or act whatsoever, including any action or omission of the type which constitutes, or
might be construed to constitute, an equitable or legal discharge or defense of the Borrower for
the Obligations, or of such Grantor under the guarantee contained in Article II or with
respect to the collateral security provided by such Grantor herein, or which might be available to
a surety or guarantor, in bankruptcy or in any other instance.

          (b) Each Grantor hereby waives to the extent permitted by law: (i) except as expressly
provided otherwise in any Loan Document, all notices to such Grantor, or to any other Person,
including but not limited to, notices of the acceptance of this Agreement, the guarantee contained
in Article II or the provision of collateral security provided herein, or the creation,
renewal, extension, modification, accrual of any Obligations, or notice of or proof of reliance by
the Administrative Agent or any other Secured Party upon the guarantee contained in Article
II or upon the collateral security provided herein, or of default in the payment or performance
of any of the Obligations owed to the Administrative Agent or any other Secured Party and
enforcement of any right or remedy with respect thereto; or notice of any other matters relating
thereto; the Obligations, and any of them, shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee
contained in Article II and the collateral security provided herein and no notice of
creation of the Obligations or any extension of credit already or hereafter contracted by or
extended to the Borrower need be given to any Grantor; and all dealings between the Borrower and
any of the Grantors, on the one hand, and the Administrative Agent and the other Secured Parties,
on the other hand, likewise shall be conclusively presumed to have been had or consummated in
reliance upon the guarantee contained in Article II and on the collateral security provided
herein; (ii) diligence and demand of payment, presentment, protest, dishonor and notice of
dishonor; (iii) any statute of limitations affecting any Grantor’s liability hereunder or the
enforcement thereof;

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(iv) all rights of revocation with respect to the Obligations, the guarantee contained in
Article II and the provision of collateral security herein; and (v) all principles or
provisions of law which conflict with the terms of this Agreement and which can, as a matter of
law, be waived.

          (c) When making any demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Grantor, the Administrative Agent or any other Secured Party may, but shall be under no
obligation to, join or make a similar demand on or otherwise pursue or exhaust such rights and
remedies as it may have against the Borrower, any other Grantor or any other Person or against any
collateral security or guarantee for the Obligations or any right of offset with respect thereto,
and any failure by the Administrative Agent or any other Secured Party to make any such demand, to
pursue such other rights or remedies or to collect any payments from the Borrower, any other
Grantor or any other Person or to realize upon any such collateral security or guarantee or to
exercise any such right of offset, or any release of the Borrower, any Grantor or any other Person
or any such collateral security, guarantee or right of offset, shall not relieve any Grantor of any
obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of the Administrative Agent or any other Secured
Party against any Grantor. For the purposes hereof “demand” shall include the commencement and
continuance of any legal proceedings. Neither the Administrative Agent nor any other Secured Party
shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as
security for the Obligations or for the guarantee contained in Article II or any property
subject thereto.

     Section 4.02 No Subrogation, Contribution or Reimbursement. Notwithstanding any
payment made by any Grantor hereunder or any set-off or application of funds of any Grantor by the
Administrative Agent or any other Secured Party, no Grantor shall be entitled to be subrogated to
any of the rights of the Administrative Agent or any other Secured Party against the Borrower or
any other Grantor or any collateral security or guarantee or right of offset held by the
Administrative Agent or any other Secured Party for the payment of the Obligations, nor shall any
Grantor seek or be entitled to seek any indemnity, exoneration, participation, contribution or
reimbursement from the Borrower or any other Grantor in respect of payments made by such Grantor
hereunder, and each Grantor hereby expressly waives, releases, and agrees not to exercise any all
such rights of subrogation, reimbursement, indemnity and contribution. Each Grantor further agrees
that to the extent that such waiver and release set forth herein is found by a court of competent
jurisdiction to be void or voidable for any reason, any rights of subrogation, reimbursement,
indemnity and contribution such Grantor may have against the Borrower, any other Grantor or against
any collateral or security or guarantee or right of offset held by the Administrative Agent or any
other Secured Party shall be junior and subordinate to any rights the Administrative Agent and the
other Secured Parties may have against the Borrower and such Grantor and to all right, title and
interest the Administrative Agent and the other Secured Parties may have in any collateral or
security or guarantee or right of offset. The Administrative Agent, for the benefit of the Secured
Parties, may use, sell or dispose of any item of Collateral or security as it sees fit without
regard to any subrogation rights any Grantor may have, and upon any disposition or sale, any rights
of subrogation any Grantor may have shall terminate.

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ARTICLE V

Representations and Warranties

     To induce the Administrative Agent and the other Secured Parties to enter into the Credit
Agreement and to induce the Lenders to make their respective extensions of credit to the Borrower
thereunder and to induce the Lenders and Affiliates of the Lenders to enter into Secured Hedging
Agreements, each Grantor hereby represents and warrants to the Administrative Agent and each other
Secured Party that:

     Section 5.01 Representations in Credit Agreement. In the case of each Guarantor, the
representations and warranties set forth in Article VII of the Credit Agreement as they relate to
such Guarantor (in its capacity as a Subsidiary of the Borrower) or to the Loan Documents to which
such Guarantor is a party are true and correct in all material respects, provided that each
reference in each such representation and warranty to the Borrower’s knowledge shall, for the
purposes of this Section 5.01, be deemed to be a reference to such Guarantor’s knowledge.

     Section 5.02 Benefit to the Guarantor. The Borrower is a member of an affiliated
group of companies that includes each Guarantor, and the Borrower and the Guarantors are engaged in
related businesses. Each Guarantor is a Subsidiary of the Borrower and its guaranty and surety
obligations pursuant to this Agreement reasonably may be expected to benefit, directly or
indirectly, it; and it has determined that this Agreement is necessary and convenient to the
conduct, promotion and attainment of the business of such Guarantor and the Borrower.

     Section 5.03 Perfected First Priority Liens. Subject to the limitations on perfection
and method of perfection provided in Article VII, the security interests granted pursuant
to this Agreement (a) upon completion of the filings and other actions specified on Schedule
3 (which, in the case of all filings and other documents referred to on said Schedule, have
been delivered to the Administrative Agent in completed and duly executed form) will constitute
valid perfected security interests in all of the Collateral in favor of the Administrative Agent,
for the ratable benefit of the Secured Parties, as collateral security for such Grantor’s
obligations, enforceable in accordance with the terms hereof against all creditors of such Grantor
and any Persons purporting to purchase any Collateral from such Grantor, and (b) are prior to all
other Liens on the Collateral in existence on the date hereof except for Excepted Liens which have
priority over the Liens on the Collateral by operation of law.

     Section 5.04 Legal Name, Organizational Status, Chief Executive Office. On the date
hereof, the correct legal name of such Grantor, such Grantor’s jurisdiction of organization,
organizational number, taxpayor identification number and the location of such Grantor’s chief
executive office or sole place of business are specified on Schedule 4.

     Section 5.05 Prior Names and Chief Executive Offices. Schedule 5 correctly
sets forth (a) all names and trade names that such Grantor has used in the last five years and (b)
the chief executive office of such Grantor over the last five years (if different from that which
is set forth in Section 5.04).

     Section 5.06 Pledged Securities. The shares (or such other interests) of Pledged
Securities pledged by such Grantor hereunder constitute all the issued and outstanding shares (or

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such other interests) of all classes of the capital stock or other equity interests of each
Issuer owned by such Grantor except in the case of each Issuer that is a Foreign Subsidiary, the
Pledged Securities with respect thereto constitute 65% of all classes of the capital stock or other
equity interests of such Issuer. All the shares (or such other interests) of the Pledged
Securities have been duly and validly issued and are fully paid and nonassessable; and such Grantor
is the record and beneficial owner of, and has good title to, the Pledged Securities pledged by it
hereunder, free of any and all Liens except Excepted Liens or options in favor of, or claims of,
any other Person, except the security interest created by this Agreement.

     Section 5.07 Goods. No portion of the Collateral constituting Goods is in the
possession of a bailee that has issued a negotiable or non-negotiable document covering such
Collateral.

     Section 5.08 Instruments and Chattel Paper. Such Grantor has delivered to the
Administrative Agent all Collateral constituting Instruments and Chattel Paper in each case, with
respect to a monetary obligation or obligations in excess of $5,000,000.00. No Collateral
constituting Chattel Paper or Instruments contains any statement therein to the effect that such
Collateral has been assigned to an identified party other than the Administrative Agent, and the
grant of a security interest in such Collateral in favor of the Administrative Agent hereunder does
not violate the rights of any other Person as a secured party.

     Section 5.09 Governmental Obligors. None of the Account Debtors on such Grantor’s
Accounts, Chattel Paper or Payment Intangibles is a Governmental Authority.

     Section 5.10 Patents and Trademarks. Schedule 6 hereto includes all material
Patents and Patent Licenses owned by such Grantor in its own name as of the date hereof.
Schedule 7 hereto includes all material Trademarks and Trademark Licenses owned by such
Grantor in its own name as of the date hereof. To the knowledge of such Grantor, each Patent and
Trademark is valid, subsisting, unexpired, enforceable and has not been abandoned. Except as set
forth in either such Schedule, none of such Patents and Trademarks is the subject of any licensing
or franchise agreement. To the knowledge of such Grantor, no holding, decision or judgment has
been rendered by any Governmental Authority which would limit, cancel or question the validity of
any Patent or Trademark. No action or proceeding is pending (i) seeking to limit, cancel or
question the validity of any Patent or Trademark, or (ii) which, if adversely determined, would
have a material adverse effect on the value of any Patent or Trademark. For purposes of this
Section 5.10 and Section 6.13, a Patent, Patent License or Trademark shall not be
considered “material” if its failure to exist would not have a Material Adverse Effect.

     Section 5.11 Commercial Tort Claims. As of the Effective Date, no Grantor holds, to
its knowledge, any commercial tort claim with respect to which any litigation or proceeding has
been commenced other than those listed on Schedule 8.

ARTICLE VI

Covenants

     Each Grantor covenants and agrees with the Administrative Agent and the other Secured Parties
that, from and after the date of this Agreement until the Obligations shall have been paid

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in full, no Letter of Credit shall be outstanding (except any Letter of Credit cash
collateralized in accordance with the terms of the Credit Agreement) and the aggregate Commitments
shall have terminated:

     Section 6.01 Covenants in Credit Agreement. In the case of each Guarantor, such
Guarantor shall take, or shall refrain from taking, as the case may be, each action that is
necessary to be taken or not taken, as the case may be, so that no Default or Event of Default is
caused by the failure to take such action or to refrain from taking such action by such Guarantor
or any of its Subsidiaries.

     Section 6.02 Maintenance of Perfected Security Interest; Further Documentation.

          (a) Such Grantor shall defend the security interest created by this Agreement against the
claims and demands of all Persons whomsoever except for Excepted Liens.

          (b) Subject to the limitations on perfection and method of perfection provided in Article
VII, at any time and from time to time, upon the request of the Administrative Agent or any
other Secured Party, and at the sole expense of such Grantor, such Grantor will promptly and duly
give, execute, deliver, indorse, file or record any and all financing statements, continuation
statements, amendments, notices (including, without limitation, notifications to financial
institutions and any other Person), contracts, agreements, assignments, certificates, stock powers
or other instruments, obtain any and all governmental approvals and consents and take or cause to
be taken any and all steps or acts that may be necessary or advisable or as the Administrative
Agent may reasonably request to create, perfect, establish the priority of, or to preserve the
validity, perfection or priority of, the Liens granted by this Agreement or to enable the
Administrative Agent or any other Secured Party to enforce its rights, remedies, powers and
privileges under this Agreement with respect to such Liens or to otherwise obtain or preserve the
full benefits of this Agreement and the rights, powers and privileges herein granted.

          (c) This Section 6.02 and the obligations imposed on each Grantor by this Section
6.02 shall be interpreted as broadly as possible in favor of the Administrative Agent and the
other Secured Parties in order to effectuate the purpose and intent of this Agreement.

     Section 6.03 Maintenance of Records. Such Grantor will keep and maintain at its own
cost and expense satisfactory and complete records of the Collateral, including, without
limitation, a record of all payments received and all credits granted with respect to the Accounts.
For the Administrative Agent’s and the other Secured Parties’ further security, the Administrative
Agent, for the ratable benefit of the Secured Parties, shall have a security interest in all of
such Grantor’s books and records pertaining to the Collateral, and such Grantor shall make
available any such books and records to the Administrative Agent or to its representatives for
review during normal business hours at the request of the Administrative Agent and shall provide
such clerical and other assistance as may be reasonably requested with regard thereto.

     Section 6.04 Right of Inspection. Each Grantor will, and will cause each Subsidiary
to, permit any representatives designated by the Administrative Agent or any Secured Party, upon
reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its
books and records, and to discuss its affairs, finances and condition with its officers and

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independent accountants, all at such reasonable times during normal business hours and as
often as reasonably requested; provided that such audits shall be limited to once per calendar year
unless an Event of Default exists and is continuing.

     Section 6.05 Further Identification of Collateral. Such Grantor will furnish to the
Administrative Agent and the Lenders from time to time, at such Grantor’s sole cost and expense,
statements and schedules further identifying and describing the Collateral and such other reports
in connection with the Collateral as the Administrative Agent may reasonably request, all in
reasonable detail.

     Section 6.06 Changes in Locations, Name, Etc. Such Grantor recognizes that financing
statements pertaining to the Collateral have been or may be filed where such Grantor maintains any
Collateral or is organized. Without limitation of any other covenant herein and except as
permitted in the Credit Agreement, such Grantor will not cause or permit any change to be made (i)
in its name, identity or corporate structure or (ii) to such Grantor’s jurisdiction of
organization, unless such Grantor shall have first (1) notified the Administrative Agent and the
other Secured Parties of such change at least ten (10) days prior to the effective date of such
change, and (2) taken all action reasonably requested by the Administrative Agent or the Majority
Lenders for the purpose of maintaining the perfection and priority of the Administrative Agent’s
security interests under this Agreement. In any notice furnished pursuant to this Section
6.06, such Grantor will expressly state in a conspicuous manner that the notice is required by
this Agreement and contains facts that may require additional filings of financing statements or
other notices for the purposes of continuing perfection of the Administrative Agent’s security
interest in the Collateral.

     Section 6.07 Compliance with Contractual Obligations. Such Grantor will perform and
comply in all material respects with all its contractual obligations relating to the Collateral
(including, without limitation, with respect to the goods or services, the sale or lease or
rendition of which gave rise or will give rise to each Account).

     Section 6.08 Pledged Securities.

          (a) If such Grantor shall become entitled to receive or shall receive any stock certificate or
other instrument (including, without limitation, any certificate or instrument representing a
dividend or a distribution in connection with any reclassification, increase or reduction of
capital or any certificate or instrument issued in connection with any reorganization), option or
rights in respect of the capital stock or other equity interests of any Issuer, whether in addition
to, in substitution of, as a conversion of, or in exchange for, any shares (or such other
interests) of the Pledged Securities, or otherwise in respect thereof, such Grantor shall accept
the same as the agent of the Administrative Agent and the other Secured Parties, hold the same in
trust for the Administrative Agent and the other Secured Parties and deliver the same forthwith to
the Administrative Agent in the exact form received, duly indorsed by such Grantor to the
Administrative Agent, if required, together with an undated stock power or other equivalent
instrument of transfer acceptable to the Administrative Agent covering such certificate or
instrument duly executed in blank by such Grantor and with, if the Administrative Agent so
requests, signature guaranteed, to be held by the Administrative Agent, subject to the terms
hereof, as additional collateral security for the Obligations.

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          (b) Without the prior written consent of the Administrative Agent, such Grantor will not (i)
unless otherwise permitted hereby, vote to enable, or take any other action to permit, any Issuer
to issue any stock or other equity interests of any nature or to issue any other securities or
interests convertible into or granting the right to purchase or exchange for any stock or other
equity interests of any nature of any Issuer, (ii) sell, assign, transfer, exchange or otherwise
dispose of, or grant any option with respect to, the Pledged Securities or Proceeds thereof (except
pursuant to a transaction expressly permitted by the Credit Agreement), (iii) create, incur or
permit to exist any Lien except for Excepted Liens or option in favor of, or any claim of any
Person with respect to, any of the Pledged Securities or Proceeds thereof, or any interest therein,
except for the security interests created by this Agreement or (iv) enter into any agreement or
undertaking restricting the right or ability of such Grantor or the Administrative Agent to sell,
assign or transfer any of the Pledged Securities or Proceeds thereof.

          (c) In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will be
bound by the terms of this Agreement relating to the Pledged Securities issued by it and will
comply with such terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events described in
Section 6.08(a) with respect to the Pledged Securities issued by it and (iii) the terms of
Section 8.01(c) and Section 8.05 shall apply to it, mutatis mutandis, with respect
to all actions that may be required of it pursuant to Section 8.01(c) or Section
8.05 with respect to the Pledged Securities issued by it.

          (d) Such Grantor shall furnish to the Administrative Agent such stock powers and other
equivalent instruments of transfer as may be required by the Administrative Agent to assure the
transferability of and the perfection of the security interest in the Pledged Securities when and
as often as may be reasonably requested by the Administrative Agent.

          (e) The Pledged Securities will at all times constitute not less than (i) 100% of the capital
stock or other equity interests of the domestic Issuer thereof owned by any Grantor or (ii) 65% of
the capital stock or other equity interests of the foreign Issuer thereof owned by any Grantor.
Except as permitted by the Credit Agreement, each Grantor will not permit any Issuer of any of the
Pledged Securities to issue any new shares (or other interests) of any class of capital stock or
other equity interests of such Issuer without the prior written consent of the Administrative
Agent.

     Section 6.09 Limitations on Modifications, Waivers, Extensions of Agreements Giving Rise
to Accounts. Such Grantor will not (i) amend, modify, terminate or waive any provision of any
Chattel Paper, Instrument or material Contract in any manner which could reasonably be expected to
have a Material Adverse Effect, or (ii) fail to exercise promptly and diligently each and every
material right which it may have under any Chattel Paper, Instrument and material Contract (other
than any right of termination). If requested by the Administrative Agent, such Grantor shall
deliver to the Administrative Agent a copy of each material written demand, notice or document
received by it relating in any way to any Chattel Paper, Instrument or Material Contract.

     Section 6.10 Analysis of Accounts, Etc. The Administrative Agent shall have the right
at reasonable intervals from time to time to make test verifications of the Accounts, Chattel

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Paper and Payment Intangibles in any manner and through any medium that it reasonably
considers advisable, and each Grantor, at such Grantor’s sole cost and expense, shall furnish all
such assistance and information as the Administrative Agent may reasonably require in connection
therewith. At reasonable intervals from time to time, upon the Administrative Agent’s request and
at the expense of each Grantor, such Grantor shall furnish to the Administrative Agent reports
showing reconciliations, aging and test verifications of, and trial balances for, the Accounts,
Chattel Paper and Payment Intangibles, and copies of all other documents evidencing, and relating
to, the agreements and transactions which gave rise to the Accounts, Chattel Paper and Payment
Intangibles.

     Section 6.11 Instruments and Tangible Chattel Paper. If any amount payable under or
in connection with any of the Collateral shall be or become evidenced by any Instrument or Tangible
Chattel Paper with face amount in excess of $5,000,000, such Instrument or Tangible Chattel Paper
shall be immediately delivered to the Administrative Agent, duly endorsed in a manner satisfactory
to the Administrative Agent, to be held as Collateral pursuant to this Agreement.

     Section 6.12 Maintenance of Equipment. Such Grantor will maintain each item of
Equipment in good operating condition, ordinary wear and tear excepted, and will provide all
maintenance, service and repairs necessary for such purpose, except where the failure to do so
could not reasonably be expected to have a Material Adverse Effect.

     Section 6.13 Patents and Trademarks.

          (a) Such Grantor (either itself or through licensees) will, except with respect to any
Trademark that such Grantor shall reasonably determine is of negligible economic value to it, (i)
continue to use each Trademark on each and every trademark class of goods applicable to its current
line as reflected in its current catalogs, brochures and price lists in order to maintain such
Trademark in full force free from any claim of abandonment for non-use, (ii) maintain as in the
past the quality of products and services offered under such Trademark, (iii) employ such Trademark
with the appropriate notice of registration, (iv) not adopt or use any mark which is confusingly
similar or a colorable imitation of such Trademark unless the Administrative Agent, for the ratable
benefit of the Secured Parties, shall obtain a perfected security interest in such mark pursuant to
this Agreement, and (v) not (and not permit any licensee or sublicensee thereof to) do any act or
knowingly omit to do any act whereby any Trademark may become invalidated.

          (b) Such Grantor will not, except with respect to any Patent that such Grantor shall
reasonably determine is of negligible economic value to it, do any act, or omit to do any act,
whereby any Patent may become abandoned or dedicated.

          (c) Such Grantor will notify the Administrative Agent and the other Secured Parties
immediately if it knows, or has reason to know, that any application or registration relating to
any Patent or Trademark may become abandoned or dedicated, or of any adverse determination or
development (including, without limitation, the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark Office or any court or
tribunal in any country) regarding such Grantor’s ownership of any Patent or Trademark or its right
to register the same or to keep and maintain the same.

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          (d) Whenever a Grantor, either by itself or through any agent, employee, licensee or designee,
shall file an application for the registration of any Patent or Trademark with the United States
Patent and Trademark Office or any similar office or agency in any other country or any political
subdivision thereof, such Grantor shall report such filing to the Administrative Agent and the
other Secured Parties within ten (10) Business Days after the last day of the fiscal quarter in
which such filing occurs. Upon request of the Administrative Agent, such Grantor shall execute and
deliver any and all agreements, instruments, documents, and papers as the Administrative Agent may
request to evidence the Administrative Agent’s and the other Secured Parties’ security interest in
any Patent or Trademark and the goodwill and General Intangibles of such Grantor relating thereto
or represented thereby, and such Grantor hereby constitutes the Administrative Agent its
attorney-in-fact to execute and file all such writings for the foregoing purposes, all acts of such
attorney being hereby ratified and confirmed; such power being coupled with an interest is
irrevocable until the Obligations are paid in full and the Commitments are terminated.

          (e) Such Grantor will take all reasonable and necessary steps, including, without limitation,
in any proceeding before the United States Patent and Trademark Office, or any similar office or
agency in any other country or any political subdivision thereof, to maintain and pursue each
application (and to obtain the relevant registration) and to maintain each registration of the
Patents and Trademarks, including, without limitation, filing of applications for renewal,
affidavits of use and affidavits of incontestability.

          (f) In the event that any Patent or Trademark included in the Collateral is infringed,
misappropriated or diluted by a third party, such Grantor shall promptly notify the Administrative
Agent after it learns thereof and shall, unless such Grantor shall reasonably determine that such
Patent or Trademark is of negligible economic value to such Grantor which determination such
Grantor shall promptly report to the Administrative Agent, promptly sue for infringement,
misappropriation or dilution, to seek injunctive relief where appropriate and to recover any and
all damages for such infringement, misappropriation or dilution, or take such other actions as such
Grantor shall reasonably deem appropriate under the circumstances to protect such Patent or
Trademark.

          (g) Notwithstanding anything to the contrary contained in this Agreement, the covenants in
this Section 6.13 shall only apply to material Patents and Trademarks.

     Section 6.14 Commercial Tort Claims. If such Grantor shall at any time hold or
acquire a Commercial Tort Claim that satisfies the requirements of the following sentence, such
Grantor shall, within thirty (30) days after such Commercial Tort Claim satisfies such
requirements, notify the Administrative Agent in a writing signed by such Grantor containing a
brief description thereof, and granting to the Administrative Agent in such writing (for the
benefit of the Secured Parties) a security interest therein and in the Proceeds thereof, all upon
the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory
to the Administrative Agent. The provisions of the preceding sentence shall apply only to a
Commercial Tort Claim that satisfies the following requirements: (i) the monetary value claimed by
or payable to the relevant Grantor in connection with such Commercial Tort Claim shall exceed
$5,000,000, and either (ii) (A) such Grantor shall have filed a law suit or counterclaim or
otherwise commenced legal proceedings (including, without limitation, arbitration proceedings)

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against the Person against whom such Commercial Tort Claim is made, or (B) such Grantor and
the Person against whom such Commercial Tort Claim is asserted shall have entered into a settlement
agreement with respect to such Commercial Tort Claim. In addition, to the extent that the
existence of any Commercial Tort Claim held or acquired by any Grantor is disclosed by such Grantor
in any public filing with the Securities Exchange Commission or any successor thereto or analogous
Governmental Authority, or to the extent that the existence of any such Commercial Tort Claim is
disclosed in any press release issued by any Grantor, then, upon the request of the Administrative
Agent, the relevant Grantor shall, within thirty (30) days after such request is made, transmit to
the Administrative Agent a writing signed by such Grantor containing a brief description of such
Commercial Tort Claim and granting to the Administrative Agent in such writing (for the benefit of
the Secured Parties) a security interest therein and in the Proceeds thereof, all upon the terms of
this Agreement, with such writing to be in form and substance satisfactory to the Administrative
Agent.

ARTICLE VII

Limitation on Perfection

     Section 7.01 Chattel Paper and Instruments. The perfection of the security interest
granted in Article III above in, respectively, Chattel Paper (whether tangible or electronic) and
Instruments will, prior to the occurrence of an Event of Default (and after the occurrence of an
Event of Default unless the Administrative Agent has required that further actions are taken with
respect to the perfection thereof), be effected solely by filing an appropriate financing statement
under the applicable Uniform Commercial Code so long as (a) with respect to all Chattel Paper and
Instruments, the aggregate face amount of all such Chattel Paper and Instruments does not exceed
$5,000,000 and (b) with respect to any individual Chattel Paper or Instrument, the face amount
thereof does not exceed $1,000,000.

     Section 7.02 Documents. The perfection of the security interest granted in Article
III above in Documents will, prior to the occurrence of an Event of Default (and after the
occurrence of an Event of Default unless the Administrative Agent has required that further actions
are taken with respect to the perfection thereof), be effected solely by filing an appropriate
financing statement under the applicable Uniform Commercial Code so long as (a) the aggregate value
of the goods covered by all such Documents does not exceed $5,000,000 and (b) the value of the
goods covered by any individual Document does not exceed $1,000,000.

     Section 7.03 Letter-of-Credit Rights. The perfection of the security interest in
Article III above in Letter-of-Credit Rights will be required only with respect to (a) solely
following the occurrence of an Event of Default and request by the Administrative Agent, any
individual Letter-of-Credit Right the face amount of which exceeds $1,000,000 and (b) any Letter of
Credit Rights constituting Supporting Obligations.

     Section 7.04 Fixtures. The perfection of the security interest granted in Article III
above in Fixtures will, prior to the occurrence of an Event of Default (and after the occurrence of
an Event of Default unless the Administrative Agent has required that further actions are taken
with respect to the perfection thereof), be effected solely by filing an appropriate financing
statement with the appropriate Secretary of State under the applicable Uniform Commercial Code
unless a Mortgage Lien has been granted on the Property on which such Fixture is located

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and such Fixture Filing is perfected in connection therewith.

     Section 7.05 Certain Assets. With respect to any personal property of the Grantors
located in or pertaining to a jurisdiction other than the United States or any State thereof, as to
which the security interest granted hereunder may not be perfected by (a) filing financing
statements under the Uniform Commercial Code, (b) filings in the United States Patent and Trademark
Office or the United States Copyright Office, (c) possession or “control” (as defined in Section
8-106 or Article 9 of the Uniform Commercial Code) thereof in the United States, (d) notation as
secured party on any certificate of title issued by the United States or any state thereof, or (e)
compliance with the provisions of any statute, regulation or treaty of the United States or any
State thereof, such Debtor will not be required to take any action necessary to perfect such
security interest under the laws of the jurisdiction in which such property is located or to which
such property pertains.

     Section 7.06 Deposit Accounts; Liquid Assets. The perfection of the security interest
granted in Article III above in any Deposit Accounts and any Liquid Assets will, prior to
the occurrence of an Event of Default (and after the occurrence of an Event of Default unless the
Administrative Agent has required that further actions are taken with respect to the perfection
thereof) be effected solely by filing an appropriate financing statement (or by any automatic or
temporary perfection) under the applicable Uniform Commercial Code.

     Section 7.07 Vehicles. The perfection of the security interest granted in Article
III above in any Vehicles (other than wells service rigs, contract drilling rigs, heavy duty
vehicles and coiled tubing units which Grantors shall have ninety (90) days from the Effective Date
to perfect) for which perfection must be effected by a means other than the filing of an
appropriate financing statement under the applicable Uniform Commercial Code, shall not be
required.

ARTICLE VIII

Remedial Provisions

     Section 8.01 Pledged Securities.

          (a) Unless an Event of Default shall have occurred and be continuing and the Administrative
Agent shall have given notice to the relevant Grantor of the Administrative Agent’s intent to
exercise its corresponding rights pursuant to Section 8.01(b), each Grantor shall be
permitted to receive all cash dividends paid in respect of the Pledged Securities paid in the
normal course of business of the relevant Issuer, to the extent permitted in the Credit Agreement,
and to exercise all voting and corporate rights with respect to the Pledged Securities.

          (b) Subject to Article XI of the Credit Agreement, if an Event of Default shall occur and be
continuing, then at any time in the Administrative Agent’s discretion without notice, (i) the
Administrative Agent shall have the right to receive any and all cash dividends, payments or other
Proceeds paid in respect of the Pledged Securities and make application thereof to the Obligations
in accordance with Section 10.02 of the Credit Agreement, and (ii) any or all of the
Pledged Securities shall be registered in the name of the Administrative Agent or its nominee, and
the Administrative Agent or its nominee may thereafter exercise (x) all voting, corporate and other
rights pertaining to such Pledged Securities at any meeting of shareholders

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(or other equivalent body) of the relevant Issuer or Issuers or otherwise and (y) any and all
rights of conversion, exchange and subscription and any other rights, privileges or options
pertaining to such Pledged Securities as if it were the absolute owner thereof (including, without
limitation, the right to exchange at its discretion any and all of the Pledged Securities upon the
merger, consolidation, reorganization, recapitalization or other fundamental change in the
organizational structure of any Issuer, or upon the exercise by any Grantor or the Administrative
Agent of any right, privilege or option pertaining to such Pledged Securities, and in connection
therewith, the right to deposit and deliver any and all of the Pledged Securities with any
committee, depositary, transfer agent, registrar or other designated agency upon such terms and
conditions as the Administrative Agent may determine), all without liability except to account for
property actually received by it, but the Administrative Agent shall have no duty to any Grantor to
exercise any such right, privilege or option and shall not be responsible for any failure to do so
or delay in so doing.

          (c) Each Grantor hereby authorizes and instructs each Issuer of any Pledged Securities pledged
by such Grantor hereunder (and each Issuer party hereto hereby agrees) to (i) comply with any
written instruction received by it from the Administrative Agent in writing that (x) states that an
Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms
of this Agreement, without any other or further instructions from such Grantor, and each Grantor
agrees that each Issuer shall be fully protected in so complying, and (ii) unless otherwise
expressly permitted hereby, pay any dividends or other payments with respect to the Pledged
Securities directly to the Administrative Agent.

          (d) After the occurrence and during the continuation of an Event of Default, if the Issuer of
any Pledged Securities is the subject of bankruptcy, insolvency, receivership, custodianship or
other proceedings under the supervision of any Governmental Authority, then all rights of the
Grantor in respect thereof to exercise the voting and other consensual rights which such Grantor
would otherwise be entitled to exercise with respect to the Pledged Securities issued by such
Issuer shall cease, and all such rights shall thereupon become vested in the Administrative Agent
who shall thereupon have the sole right to exercise such voting and other consensual rights, but
the Administrative Agent shall have no duty to exercise any such voting or other consensual rights
and shall not be responsible for any failure to do so or delay in so doing.

     Section 8.02 Collections on Accounts, Etc. The Administrative Agent hereby authorizes
each Grantor to collect upon the Accounts, Instruments, Chattel Paper and Payment Intangibles
subject to the Administrative Agent’s direction and control, and the Administrative Agent may
curtail or terminate said authority at any time after the occurrence and during the continuance of
an Event of Default. Upon the written request of the Administrative Agent at any time after the
occurrence and during the continuance of an Event of Default, each Grantor shall notify the Account
Debtors that the applicable Accounts, Chattel Paper and Payment Intangibles have been assigned to
the Administrative Agent for the ratable benefit of the Secured Parties and that payments in
respect thereof shall be made directly to the Administrative Agent. If an Event of Default has
occurred and is continuing, the Administrative Agent may in its own name or in the name of others
communicate with the Account Debtors to verify with them to its satisfaction the existence, amount
and terms of any Accounts, Chattel Paper or Payment Intangibles.

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     Section 8.03 Proceeds. If required by the Administrative Agent at any time after the
occurrence and during the continuance of an Event of Default, any payments of Accounts,
Instruments, Chattel Paper and Payment Intangibles, when collected or received by each Grantor, and
any other cash or non-cash Proceeds received by each Grantor upon the sale or other disposition of
any Collateral, shall be forthwith (and, in any event, within two Business Days) deposited by such
Grantor in the exact form received, duly indorsed by such Grantor to the Administrative Agent if
required, in a special collateral account maintained by the Administrative Agent, subject to
withdrawal by the Administrative Agent for the ratable benefit of the Secured Parties only, as
hereinafter provided, and, until so turned over, shall be held by such Grantor in trust for the
Administrative Agent for the ratable benefit of the Secured Parties, segregated from other funds of
any such Grantor. Each deposit of any such Proceeds shall be accompanied by a report identifying
in reasonable detail the nature and source of the payments included in the deposit. All Proceeds
(including, without limitation, Proceeds constituting collections of Accounts, Chattel Paper,
Instruments) while held by the Administrative Agent (or by any Grantor in trust for the
Administrative Agent for the ratable benefit of the Secured Parties) shall continue to be
collateral security for all of the Obligations and shall not constitute payment thereof until
applied as hereinafter provided. At such intervals as may be agreed upon by each Grantor and the
Administrative Agent, or, if an Event of Default shall have occurred and be continuing, at any time
at the Administrative Agent’s election, the Administrative Agent shall apply all or any part of the
funds on deposit in said special collateral account on account of the Obligations in such order as
the Administrative Agent may elect, and any part of such funds which the Administrative Agent
elects not so to apply and deems not required as collateral security for the Obligations shall be
paid over from time to time by the Administrative Agent to each Grantor or to whomsoever may be
lawfully entitled to receive the same.

     Section 8.04 New York UCC and Other Remedies.

          (a) If an Event of Default shall occur and be continuing, the Administrative Agent, on behalf
of the Secured Parties, may exercise in its discretion, in addition to all other rights, remedies,
powers and privileges granted to them in this Agreement, the other Loan Documents, any Secured
Hedging Agreement and in any other instrument or agreement securing, evidencing or relating to the
Obligations, all rights, remedies, powers and privileges of a secured party under the New York UCC
(whether the New York UCC is in effect in the jurisdiction where such rights, remedies, powers or
privileges are asserted) or any other applicable law or otherwise available at law or equity.
Without limiting the generality of the foregoing, the Administrative Agent, without demand of
performance or other demand, presentment, protest, advertisement or notice of any kind (except any
notice required by law referred to below) to or upon any Grantor or any other Person (all and each
of which demands, defenses, advertisements and notices are hereby waived), may in such
circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part
thereof, and/or may forthwith sell, lease, assign, give option or options to purchase, or otherwise
dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing),
in one or more parcels at public or private sale or sales, at any exchange, broker’s board or
office of the Administrative Agent or any other Secured Party or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit
or for future delivery without assumption of any credit risk. The Administrative Agent or any
other Secured Party shall have the right upon any such public sale or sales, and, to the extent
permitted by law, upon any such

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private sale or sales, to purchase the whole or any part of the Collateral so sold, free of
any right or equity of redemption in any Grantor, which right or equity is hereby waived and
released. If an Event of Default shall occur and be continuing, each Grantor further agrees, at
the Administrative Agent’s request, to assemble the Collateral to the extent feasible and make it
available to the Administrative Agent at places which the Administrative Agent shall reasonably
select, whether at such Grantor’s premises or elsewhere. Any such sale or transfer by the
Administrative Agent either to itself or to any other Person shall be absolutely free from any
claim of right by Grantor, including any equity or right of redemption, stay or appraisal which
Grantor has or may have under any rule of law, regulation or statute now existing or hereafter
adopted. Upon any such sale or transfer, the Administrative Agent shall have the right to deliver,
assign and transfer to the purchaser or transferee thereof the Collateral so sold or transferred.
The Administrative Agent shall apply the net proceeds of any action taken by it pursuant to this
Section 8.04, after deducting all reasonable costs and expenses of every kind incurred in
connection therewith or incidental to the care or safekeeping of any of the Collateral or in any
way relating to the Collateral or the rights of the Administrative Agent and the other Secured
Parties hereunder, including, without limitation, reasonable attorneys’ fees and disbursements, to
the payment in whole or in part of the Obligations, in accordance with Section 10.02 of the
Credit Agreement, and only after such application and after the payment by the Administrative Agent
of any other amount required by any provision of law, including, without limitation, Section 9-615
of the New York UCC, need the Administrative Agent account for the surplus, if any, to any Grantor.
To the extent permitted by applicable law, each Grantor waives all claims, damages and demands it
may acquire against the Administrative Agent or any other Secured Party arising out of the exercise
by them of any rights hereunder. If any notice of a proposed sale or other disposition of
Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at
least 10 days before such sale or other disposition.

          (b) In the event that the Administrative Agent elects not to sell the Collateral, the
Administrative Agent retains its rights to dispose of or utilize the Collateral or any part or
parts thereof in any manner authorized or permitted by law or in equity, and to apply the proceeds
of the same towards payment of the Obligations. Each and every method of disposition of the
Collateral described in this Agreement shall constitute disposition in a commercially reasonable
manner. The Administrative Agent may appoint any Person as agent to perform any act or acts
necessary or incident to any sale or transfer of the Collateral.

     Section 8.05 Private Sales of Pledged Securities. Each Grantor recognizes that the
Administrative Agent may be unable to effect a public sale of any or all the Pledged Securities, by
reason of certain prohibitions contained in the Securities Act and applicable state securities laws
or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted
group of purchasers which will be obliged to agree, among other things, to acquire such securities
for their own account for investment and not with a view to the distribution or resale thereof.
Each Grantor acknowledges and agrees that any such private sale may result in prices and other
terms less favorable than if such sale were a public sale and, notwithstanding such circumstances,
agrees that any such private sale shall be deemed to have been made in a commercially reasonable
manner. The Administrative Agent shall be under no obligation to delay a sale of any of the
Pledged Securities for the period of time necessary to permit the Issuer thereof to register such
securities for public sale under the Securities Act, or under applicable state securities laws,
even if such Issuer would agree to do so. Each Grantor agrees to use its

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best efforts to do or cause to be done all such other acts as may reasonably be necessary to
make such sale or sales of all or any portion of the Pledged Securities pursuant to this
Section 8.05 valid and binding and in compliance with any and all other applicable
Governmental Requirements. Each Grantor further agrees that a breach of any of the covenants
contained in this Section 8.05 will cause irreparable injury to the Administrative Agent
and the other Secured Parties, that the Administrative Agent and the other Secured Parties have no
adequate remedy at law in respect of such breach and, as a consequence, that each and every
covenant contained in this Section 8.05 shall be specifically enforceable against such
Grantor, and such Grantor hereby waives and agrees not to assert any defenses against an action for
specific performance of such covenants.

     Section 8.06 Waiver; Deficiency. Each Grantor waives and agrees not to assert any
rights or privileges which it may acquire under the New York UCC or any other applicable law. Each
Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of
the Collateral are insufficient to pay its Obligations and the fees and disbursements of any
attorneys employed by the Administrative Agent or any other Secured Party to collect such
deficiency. The officers, directors and managers, as applicable, of the Grantors shall in no event
be personably liable for any such deficiency.

     Section 8.07 Non-Judicial Enforcement. The Administrative Agent may enforce its
rights hereunder without prior judicial process or judicial hearing, and to the extent permitted by
law, each Grantor expressly waives any and all legal rights which might otherwise require the
Administrative Agent to enforce its rights by judicial process.

ARTICLE IX

The Administrative Agent

     Section 9.01 Administrative Agent’s Appointment as Attorney-in-Fact, Etc.

          (a) Each Grantor hereby irrevocably constitutes and appoints the Administrative Agent and any
officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact
with full irrevocable power and authority in the place and stead of such Grantor and in the name of
such Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to
take any and all reasonably appropriate action and to execute any and all documents and instruments
which may be reasonably necessary or desirable to accomplish the purposes of this Agreement, and,
without limiting the generality of the foregoing, each Grantor hereby gives the Administrative
Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor,
to do any or all of the following:

               (i) pay or discharge taxes and Liens levied or placed on or threatened against the Collateral,
effect any repairs or any insurance called for by the terms of this Agreement and pay all or any
part of the premiums therefor and the costs thereof;

               (ii) execute, in connection with any sale provided for in Section 8.04 or Section
8.05, any endorsements, assignments or other instruments of conveyance or transfer with respect
to the Collateral; and

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               (iii) (A) direct any party liable for any payment under any of the Collateral to make payment
of any and all moneys due or to become due thereunder directly to the Administrative Agent or as
the Administrative Agent shall direct; (B) take possession of and indorse and collect any checks,
drafts, notes, acceptances or other instruments for the payment of moneys due under any Account,
Instrument, General Intangible, Chattel Paper or Payment Intangible or with respect to any other
Collateral, and to file any claim or to take any other action or proceeding in any court of law or
equity or otherwise deemed appropriate by the Administrative Agent for the purpose of collecting
any and all such moneys due under any Account, Instrument or General Intangible or with respect to
any other Collateral whenever payable; (C) ask or demand for, collect, and receive payment of and
receipt for, any and all moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Collateral; (D) sign and indorse any invoices, freight or express
bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications, notices and other documents in connection with any of the Collateral; (E) receive,
change the address for delivery, open and dispose of mail addressed to any Grantor, and to execute,
assign and indorse negotiable and other instruments for the payment of money, documents of title or
other evidences of payment, shipment or storage for any form of Collateral on behalf of and in the
name of any Grantor; (F) commence and prosecute any suits, actions or proceedings at law or in
equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and
to enforce any other right in respect of any Collateral; (G) defend any suit, action or proceeding
brought against such Grantor with respect to any Collateral; (H) settle, compromise or adjust any
such suit, action or proceeding and, in connection therewith, give such discharges or releases as
the Administrative Agent may deem appropriate; (I) assign any Patent or Trademark (along with the
goodwill of the business to which any such Trademark pertains), throughout the world for such term
or terms, on such conditions, and in such manner, as the Administrative Agent shall in its sole
discretion determine; and (J) generally, sell, transfer, pledge and make any agreement with respect
to or otherwise deal with any of the Collateral as fully and completely as though the
Administrative Agent were the absolute owner thereof for all purposes, and do, at the
Administrative Agent’s option and such Grantor’s expense, at any time, or from time to time, all
acts and things which the Administrative Agent deems necessary to protect, preserve or realize upon
the Collateral and the Administrative Agent’s and the other Secured Parties’ security interests
therein and to effect the intent of this Agreement, all as fully and effectively as such Grantor
might do.

     Anything in this Section 9.01(a) to the contrary notwithstanding, the Administrative
Agent agrees that it will not exercise any rights under the power of attorney provided for in this
Section 9.01(a) unless an Event of Default shall have occurred and be continuing.

          (b) If any Grantor fails to perform or comply with any of its agreements contained herein
within the applicable grace periods as set forth herein or in the Credit Agreement, the
Administrative Agent, at its option, but without any obligation so to do, may perform or comply, or
otherwise cause performance or compliance, with such agreement.

          (c) The expenses of the Administrative Agent incurred in connection with actions undertaken as
provided in this Section 9.01, together with interest thereon at the Post-Default Rate from
the date of payment by the Administrative Agent to the date reimbursed by the

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relevant Grantor, shall be payable by such Grantor to the Administrative Agent on written
demand.

          (d) Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done
by virtue and in compliance hereof. All powers, authorizations and agencies contained in this
Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and
the security interests created hereby are released.

     Section 9.02 Duty of Administrative Agent. The Administrative Agent’s sole duty with
respect to the custody, safekeeping and physical preservation of the Collateral in its possession,
under Section 9-207 of the New York UCC or otherwise, shall be to deal with it in the same manner
as the Administrative Agent deals with similar property for its own account and shall be deemed to
have exercised reasonable care in the custody and preservation of the Collateral in its possession
if the Collateral is accorded treatment substantially equal to that which comparable secured
parties accord comparable collateral. Neither the Administrative Agent, any other Secured Party
nor any of their respective officers, directors, employees or agents shall be liable for failure to
demand, collect or realize upon any of the Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor
or any other Person or to take any other action whatsoever with regard to the Collateral or any
part thereof. The powers conferred on the Administrative Agent and the other Secured Parties
hereunder are solely to protect the Administrative Agent’s and the other Secured Parties’ interests
in the Collateral and shall not impose any duty upon the Administrative Agent or any other Secured
Party to exercise any such powers. The Administrative Agent and the other Secured Parties shall be
accountable only for amounts that they actually receive as a result of the exercise of such powers,
and neither they nor any of their officers, directors, employees or agents shall be responsible to
any Grantor for any act or failure to act hereunder, except for their own gross negligence or
willful misconduct. To the fullest extent permitted by applicable law, the Administrative Agent
shall be under no duty whatsoever to make or give any presentment, notice of dishonor, protest,
demand for performance, notice of non-performance, notice of intent to accelerate, notice of
acceleration, or other notice or demand in connection with any Collateral or the Obligations, or to
take any steps necessary to preserve any rights against any Grantor or other Person or ascertaining
or taking action with respect to calls, conversions, exchanges, maturities, tenders or other
matters relative to any Collateral, whether or not it has or is deemed to have knowledge of such
matters. Each Grantor, to the extent permitted by applicable law, waives any right of marshaling
in respect of any and all Collateral, and waives any right to require the Administrative Agent or
any other Secured Party to proceed against any Grantor or other Person, exhaust any Collateral or
enforce any other remedy which the Administrative Agent or any other Secured Party now has or may
hereafter have against each Grantor, any Grantor or other Person.

     Section 9.03 Financing Statements. Pursuant to the New York UCC and any other
applicable law, each Grantor authorizes the Administrative Agent, its counsel or its
representative, at any time and from time to time, to file or record financing statements,
continuation statements, amendments thereto and other filing or recording documents or instruments
with respect to the Collateral in such form and in such offices as the Administrative Agent
reasonably determines appropriate to perfect the security interests of the Administrative Agent
under this Agreement. Additionally, each Grantor authorizes the Administrative Agent, its counsel
or its representative, at any time and from time to time, to file or record such

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financing statements that describe the collateral covered thereby as “all assets of the
Grantor”, “all personal property of the Grantor” or words of similar effect. A photographic or
other reproduction of this Agreement shall be sufficient as a financing statement or other filing
or recording document or instrument for filing or recording in any jurisdiction, as permitted by
applicable law.

     Section 9.04 Authority of Administrative Agent. Each Grantor acknowledges that the
rights and responsibilities of the Administrative Agent under this Agreement with respect to any
action taken by the Administrative Agent or the exercise or non-exercise by the Administrative
Agent of any option, voting right, request, judgment or other right or remedy provided for herein
or resulting or arising out of this Agreement shall, as between the Administrative Agent and the
other Secured Parties, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the Administrative Agent
and the Grantors, the Administrative Agent shall be conclusively presumed to be acting as agent for
the Secured Parties with full and valid authority so to act or refrain from acting, and no Grantor
shall be under any obligation, or entitlement, to make any inquiry respecting such authority.

ARTICLE X

Subordination of Indebtedness

     Section 10.01 Subordination of All Guarantor Claims. As used herein, the term
“Guarantor Claims” shall mean all debts and obligations of the Borrower or any other Grantor to any
Grantor, whether such debts and obligations now exist or are hereafter incurred or arise, or
whether the obligation of the debtor thereon be direct, contingent, primary, secondary, several,
joint and several, or otherwise, and irrespective of whether such debts or obligations be evidenced
by note, contract, open account, or otherwise, and irrespective of the Person or Persons in whose
favor such debts or obligations may, at their inception, have been, or may hereafter be created, or
the manner in which they have been or may hereafter be acquired by. After and during the
continuation of an Event of Default, no Grantor shall receive or collect, directly or indirectly,
from any obligor in respect thereof any amount upon the Guarantor Claims.

     Section 10.02 Claims in Bankruptcy. In the event of receivership, bankruptcy,
reorganization, arrangement, debtor’s relief or other insolvency proceedings involving any Grantor,
the Administrative Agent on behalf of the Secured Parties shall have the right to prove their claim
in any proceeding, so as to establish their rights hereunder and receive directly from the
receiver, trustee or other court custodian, dividends and payments which would otherwise be payable
upon Guarantor Claims. Each Grantor hereby assigns such dividends and payments to the
Administrative Agent for the benefit of the Secured Parties for application against the Obligations
as provided under Section 10.02 of the Credit Agreement. Should any Agent or Secured Party
receive, for application upon the Obligations, any such dividend or payment which is otherwise
payable to any Grantor, and which, as between such Grantor, shall constitute a credit upon the
Guarantor Claims, then upon payment in full of the Obligations, the intended recipient shall become
subrogated to the rights of the Administrative Agent and the other Secured Parties to the extent
that such payments to the Administrative Agent and the other Secured Parties on the Guarantor
Claims have contributed toward the liquidation of the Obligations, and such subrogation shall be
with respect to that proportion of the Obligations which would have been

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unpaid if the Administrative Agent and the other Secured Parties had not received dividends or
payments upon the Guarantor Claims.

     Section 10.03 Payments Held in Trust. In the event that notwithstanding Section
10.01 and Section 10.02, any Grantor should receive any funds, payments, claims or
distributions which is prohibited by such Sections, then it agrees: (a) to hold in trust for the
Administrative Agent and the other Secured Parties an amount equal to the amount of all funds,
payments, claims or distributions so received, and (b) that it shall have absolutely no dominion
over the amount of such funds, payments, claims or distributions except to pay them promptly to the
Administrative Agent, for the benefit of the Secured Parties; and each Grantor covenants promptly
to pay the same to the Administrative Agent.

     Section 10.04 Liens Subordinate. Each Grantor agrees that, until the Obligations are
paid in full and the aggregate Commitments terminated, any Liens securing payment of the Guarantor
Claims shall be and remain inferior and subordinate to any Liens securing payment of the
Obligations, regardless of whether such encumbrances in favor of such Grantor, the Administrative
Agent or any other Secured Party presently exist or are hereafter created or attach. Without the
prior written consent of the Administrative Agent, no Grantor, during the period in which any of
the Obligations are outstanding or the aggregate Commitments are in effect, shall (a) exercise or
enforce any creditor’s right it may have against any debtor in respect of the Guarantor Claims, or
(b) foreclose, repossess, sequester or otherwise take steps or institute any action or proceeding
(judicial or otherwise, including without limitation the commencement of or joinder in any
liquidation, bankruptcy, rearrangement, debtor’s relief or insolvency proceeding) to enforce any
Lien held by it.

     Section 10.05 Notation of Records. Upon the written request of the Administrative
Agent at any time that Events of Default has occurred and is continuing, all promissory notes and
all accounts receivable ledgers or other evidence of the Guarantor Claims accepted by or held by
any Grantor shall contain a specific written notice thereon that the indebtedness evidenced thereby
is subordinated under the terms of this Agreement.

ARTICLE XI

Miscellaneous

     Section 11.01 Waiver. No failure on the part of the Administrative Agent or any other
Secured Party to exercise and no delay in exercising, and no course of dealing with respect to, any
right, remedy, power or privilege under any of the Loan Documents shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power or privilege under any of the
Loan Documents preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges provided herein are
cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. The
exercise by the Administrative Agent of any one or more of the rights, powers and remedies herein
shall not be construed as a waiver of any other rights, powers and remedies, including, without
limitation, any rights of set-off.

     Section 11.02 Notices. All notices and other communications provided for herein shall
be given in the manner and subject to the terms of Section 12.01 of the Credit Agreement;

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provided that any such notice, request or demand to or upon any Guarantor shall be addressed
to such Guarantor at its notice address set forth on Schedule 1.

     Section 11.03 Payment of Expenses, Indemnities, Etc.

          (a) Each Grantor agrees to pay or promptly reimburse the Administrative Agent and each other
Secured Party for all reasonable out-of-pocket advances, charges, costs and expenses (including,
without limitation, all costs and expenses of holding, preparing for sale and selling, collecting
or otherwise realizing upon the Collateral and all attorneys’ fees, legal expenses and court costs)
incurred by any Secured Party in connection with the exercise of its respective rights and remedies
hereunder, including, without limitation, any reasonable out-of-pocket advances, charges, costs and
expenses that may be incurred in any effort to enforce any of the provisions of this Agreement or
any obligation of any Grantor in respect of the Collateral or in connection with (i) the
preservation of the Lien of, or the rights of the Administrative Agent or any other Secured Party
under this Agreement, (ii) any actual or attempted sale, lease, disposition, exchange, collection,
compromise, settlement or other realization in respect of, or care of, the Collateral, including
all such costs and expenses incurred in any bankruptcy, reorganization, workout or other similar
proceeding, or (iii) collecting against such Grantor under the guarantee contained in Article
II or otherwise enforcing or preserving any rights under this Agreement and the other Loan
Documents to which such Grantor is a party.

          (b) Each Grantor agrees to pay, and to save the Administrative Agent and the other Secured
Parties harmless from, any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever (including,
without limitation, court costs and attorneys’ fees, any and all liabilities with respect to, or
resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be
payable or determined to be payable with respect to any of the Collateral or in connection with any
of the transactions contemplated by this Agreement) incurred because of, incident to, or with
respect to, the Collateral (including, without limitation, any exercise of rights or remedies in
connection therewith) or the execution, delivery, enforcement, performance and administration of
this Agreement, to the extent the Borrower would be required to do so pursuant to Section
12.03 of the Credit Agreement. All amounts for which any Grantor is liable pursuant to this
Section 10.03 shall be due and payable by such Grantor to the Secured Parties upon demand.

     Section 11.04 Amendments in Writing. None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in accordance with
Section 12.02 of the Credit Agreement.

     Section 11.05 Successors and Assigns. This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of the Administrative Agent
and the other Secured Parties and their successors and assigns; provided that no Grantor may
assign, transfer or delegate any of its rights or obligations under this Agreement without the
prior written consent of the Administrative Agent and the Lenders.

     Section 11.06 Invalidity. In the event that any one or more of the provisions
contained in this Agreement or in any of the Loan Documents to which a Grantor is a party shall,
for any

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reason, be held invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provision of this Agreement or such other Loan
Document.

     Section 11.07 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument and any of
the parties hereto may execute this Agreement by signing any such counterpart.

     Section 11.08 Survival. The obligations of the parties under Section 11.03
shall survive the repayment of the Loans and the termination of the Letters of Credit, Secured
Hedging Agreements, Treasury Management Agreements, Credit Agreement and aggregate Commitments. To
the extent that any payments on the Obligations or proceeds of any Collateral are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a
trustee, debtor in possession, receiver or other Person under any bankruptcy law, common law or
equitable cause, then to such extent, the Obligations so satisfied shall be revived and continue as
if such payment or proceeds had not been received and the Administrative Agent’s and the other
Secured Parties’ Liens, security interests, rights, powers and remedies under this Agreement and
each Security Instrument shall continue in full force and effect. In such event, each Security
Instrument shall be automatically reinstated and each Grantor shall take such action as may be
reasonably requested by the Administrative Agent and the other Secured Parties to effect such
reinstatement.

     Section 11.09 Captions. Captions and section headings appearing herein are included
solely for convenience of reference and are not intended to affect the interpretation of any
provision of this Agreement.

     Section 11.10 No Oral Agreements. The Loan Documents (other than the Letters of
Credit) embody the entire agreement and understanding between the parties and supersede all other
agreements and understandings between such parties relating to the subject matter hereof and
thereof. The Loan Documents represent the final agreement 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 11.11 Governing Law; Submission to Jurisdiction.

          (a) This Agreement shall be governed by, and construed in accordance with, the laws of the
state of New York.

          (b) Any legal action or proceeding with respect to this Agreement or any other Loan Documents
to which a Grantor is a party shall be brought in the courts of the State of New York or of the
United States of America for the Southern District of New York, and each of the Lenders, the
Administrative Agent and the Grantors hereby accepts for itself and (to the extent permitted by
law) in respect of its Property, generally and unconditionally, the jurisdiction of the aforesaid
courts. Each of the Lenders, the Administrative Agent and the Grantors hereby irrevocably waives
any objection, including, without limitation, any objection to the laying of venue or based on the
grounds of forum non conveniens, which it may now or hereafter have to the bringing of any such
action or proceeding in such respective jurisdictions. This submission

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to jurisdiction is non-exclusive and does not preclude the Administrative Agent or any Lender
from obtaining jurisdiction over such Grantor in any court otherwise having jurisdiction.

          (c) Each of the Lenders, the Administrative Agent and the Grantors irrevocably consents to the
service of process of any of the aforementioned courts in any such action or proceeding by the
mailing of copies thereof by registered or certified mail, postage prepaid, to such Person at the
address specified on its signature page of this Agreement or the Credit Agreement, as applicable,
such service to become effective thirty (30) days after such mailing. Nothing herein shall affect
the right of the Administrative Agent or any Lender or any holder of a Note or Grantor to serve
process in any other manner permitted by law or to commence legal proceedings or otherwise proceed
against such Grantor in any other jurisdiction.

          (d) Each Grantor, the Administrative Agent and each Lender hereby (i) irrevocably and
unconditionally waive, to the fullest extent permitted by law, trial by jury in any legal action or
proceeding relating to this Agreement or any other Loan Document and for any counterclaim therein;
(ii) irrevocably waive, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any such litigation any special, exemplary, punitive or consequential damages, or
damages other than, or in addition to, actual damages; (iii) certify that no party hereto nor any
representative or agent of counsel for any party hereto has represented, expressly or otherwise, or
implied that such party would not, in the event of litigation, seek to enforce the foregoing
waivers, and (iv) acknowledge that it has been induced to enter into this Agreement, the Loan
Documents and the transactions contemplated hereby and thereby by, among other things, the mutual
waivers and certifications contained in this Section 11.11.

     Section 11.12 Acknowledgments. Each Grantor hereby acknowledges that:

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

          (b) neither the Administrative Agent nor any other Secured Party has any fiduciary
relationship with or duty to any Grantor arising out of or in connection with this Agreement or any
of the other Loan Documents, and the relationship between the Grantors, on the one hand, and the
Administrative Agent and the other Secured Parties, on the other hand, in connection herewith or
therewith is solely that of debtor and creditor; and

          (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Secured Parties or among the Grantors and
the Lenders.

          (d) Each of the parties hereto specifically agrees that it has a duty to read this Agreement
and the Security Instruments and agrees that it is charged with notice and knowledge of the terms
of this Agreement and the Security Instruments; that it has in fact read this Agreement and is
fully informed and has full notice and knowledge of the terms, conditions and effects of this
Agreement; that it has been represented by independent legal counsel of its choice throughout the
negotiations preceding its execution of this Agreement and the Security Instruments; and has
received the advice of its attorney in entering into this Agreement and the Security Instruments;
and that it recognizes that certain of the terms of this Agreement and the

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Security Instruments result in one party assuming the liability inherent in some aspects of
the transaction and relieving the other party of its responsibility for such liability. Each party
hereto agrees and covenants that it will not contest the validity or enforceability of any
exculpatory provision of this Agreement and the Security Instruments on the basis that the party
had no notice or knowledge of such provision or that the provision is not “conspicuous.”

          (e) Each Grantor warrants and agrees that each of the waivers and consents set forth in this
Agreement are made voluntarily and unconditionally after consultation with outside legal counsel
and with full knowledge of their significance and consequences, with the understanding that events
giving rise to any defense or right waived may diminish, destroy or otherwise adversely affect
rights which such Grantor otherwise may have against the Borrower, any other Grantor, the Secured
Parties or any other Person or against any collateral. If, notwithstanding the intent of the
parties that the terms of this Agreement shall control in any and all circumstances, any such
waivers or consents are determined to be unenforceable under applicable law, such waivers and
consents shall be effective to the maximum extent permitted by law.

     Section 11.13 Additional Grantors. Each Subsidiary of the Borrower that is required
to become a party to this Agreement pursuant to Section 8.14 of the Credit Agreement and is
not a signatory hereto shall become a Grantor for all purposes of this Agreement upon execution and
delivery by such Subsidiary of an Assumption Agreement in the form of Annex I hereto.

     Section 11.14 Set-Off. Each Grantor agrees that, in addition to (and without
limitation of) any right of set-off, bankers’ lien or counterclaim a Secured Party may otherwise
have, each Secured Party shall have the right and be entitled (after consultation with the
Administrative Agent), at its option, to offset (i) balances held by it or by any of its Affiliates
for account of any Grantor or any Subsidiary at any of its offices, in Dollars or in any other
currency, and (ii) amounts due and payable to such Lender (or any Affiliate of such Lender) under
any Secured Hedging Agreement, against any principal of or interest on any of such Secured Party’s
Loans, or any other amount due and payable to such Secured Party hereunder, which is not paid when
due (regardless of whether such balances are then due to such Person), in which case it shall
promptly notify the Borrower and the Administrative Agent thereof, provided that such Secured
Party’s failure to give such notice shall not affect the validity thereof.

     Section 11.15 Releases.

          (a) Release Upon Payment in Full. The grant of a security interest hereunder and all
of rights, powers and remedies in connection herewith shall remain in full force and effect until
the Administrative Agent has (i) retransferred and delivered all Collateral in its possession to
the Grantors, and (ii) executed a written release or termination statement and reassigned to the
Grantors without recourse or warranty any remaining Collateral and all rights conveyed hereby.
Upon the complete payment, release or other satisfaction of the Obligations, the termination of the
Letters of Credit (or the cash collateralization of the Letters of Credit in accordance with the
terms of the Credit Agreement), Secured Hedging Agreements secured hereby, Credit Agreement and the
aggregate Commitments and the compliance by the Grantors with all covenants and agreements hereof,
the Administrative Agent, at the written request and

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expense of the Borrower, will promptly release, reassign and transfer the Collateral to the
Grantors and declare this Agreement to be of no further force or effect.

          (b) Further Assurances. If any of the Collateral shall be sold, transferred or
otherwise disposed of by any Grantor in a transaction permitted by the Credit Agreement, then the
Administrative Agent, at the request and sole expense of such Grantor, shall promptly execute and
deliver to such Grantor all releases or other documents reasonably necessary or desirable for the
release of the Liens created hereby on such Collateral and the capital stock of such Grantor. At
the request and sole expense of the Borrower, a Grantor shall be released from its obligations
hereunder in the event that all the capital stock of such Grantor shall be sold, transferred or
otherwise disposed of in a transaction permitted by the Credit Agreement; provided that the
Borrower shall have delivered to the Administrative Agent, at least ten Business Days prior to the
date of the proposed release, a written request for release identifying the relevant Grantor and
the terms of the sale or other disposition in reasonable detail, including the price thereof and
any expenses in connection therewith, together with a certification by the Borrower stating that
such transaction is in compliance with the Credit Agreement and the other Loan Documents.

          (c) Retention in Satisfaction. Except as may be expressly applicable pursuant to
Section 9-620 of the New York UCC, no action taken or omission to act by the Administrative Agent
or the other Secured Parties hereunder, including, without limitation, any exercise of voting or
consensual rights or any other action taken or inaction, shall be deemed to constitute a retention
of the Collateral in satisfaction of the Obligations or otherwise to be in full satisfaction of the
Obligations, and the Obligations shall remain in full force and effect, until the Administrative
Agent and the other Secured Parties shall have applied payments (including, without limitation,
collections from Collateral) towards the Obligations in the full amount then outstanding or until
such subsequent time as is provided in Section 11.15(a).

     Section 11.16 Reinstatement. The obligations of each Grantor under this Agreement
(including, without limitation, with respect to the guarantee contained in Article II and
the provision of collateral herein) shall continue to be effective, or be reinstated, as the case
may be, if at any time payment, or any part thereof, of any of the Obligations is rescinded or must
otherwise be restored or returned by the Administrative Agent or any other Secured Party upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower or any Grantor,
or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee
or similar officer for, the Borrower or any Grantor or any substantial part of its property, or
otherwise, all as though such payments had not been made.

     Section 11.17 Acceptance. Each Grantor hereby expressly waives notice of acceptance
of this Agreement, acceptance on the part of the Administrative Agent and the other Secured Parties
being conclusively presumed by their request for this Agreement and delivery of the same to the
Administrative Agent.

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     IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee and Collateral Agreement
to be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	BORROWER:         	KEY ENERGY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	J. Marshall Dodson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

SIGNATURE PAGE

GUARANTEE AND COLLATERAL AGREEMENT

 

 

	 	 	 	 	 
	GUARANTORS:       	KEY ENERGY SERVICES, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	J. Marshall Dodson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	KEY ENERGY SERVICES CALIFORNIA, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	J. Marshall Dodson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	KEY ENERGY SERVICES (MEXICO), LLC

 	 
	 	By:  	
 	 
	 	 	Name:  	J. Marshall Dodson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

SIGNATURE PAGE

GUARANTEE AND COLLATERAL AGREEMENT

 

 

	 	 	 	 	 
	

ADMINISTRATIVE AGENT:	Acknowledged and Agreed to as

of the date hereof by:

 JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

SIGNATURE PAGE

GUARANTEE AND COLLATERAL AGREEMENT

 

 

Annex I

Assumption Agreement

     ASSUMPTION AGREEMENT, dated as of ________________, 20____, made by ____________________, a
______________ corporation (the “Additional Grantor”), in favor of
__________________________, as administrative agent (in such capacity, the “Administrative
Agent”) for the banks and other financial institutions (the “Lenders”) parties to the
Credit Agreement referred to below. All capitalized terms not defined herein shall have the
meaning ascribed to them in such Credit Agreement.

WITNESSETH:

     WHEREAS, Key Energy Services, Inc. (the “Borrower”), the Lenders, the Administrative
Agent and the other Agents, have entered into a Credit Agreement, dated as of March 31, 2011 (as
amended, supplemented or otherwise modified from time to time, the “Credit Agreement”);

     WHEREAS, in connection with the Credit Agreement, the Borrower and certain of its Subsidiaries
have entered into the Guarantee and Collateral Agreement, dated as of March 31, 2011 (as amended,
supplemented or otherwise modified from time to time, the “Guarantee and Collateral
Agreement”) in favor of the Administrative Agent for the benefit of the Lenders and Affiliates
of the Lenders;

     WHEREAS, the Credit Agreement requires the Additional Grantor to become a party to the
Guarantee and Collateral Agreement; and

     WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption Agreement in
order to become a party to the Guarantee and Collateral Agreement;

     NOW, THEREFORE, IT IS AGREED:

1. Guarantee and Collateral Agreement. By executing and delivering this Assumption
Agreement, the Additional Grantor, as provided in Section 10.13 of the Guarantee and
Collateral Agreement, hereby becomes a party to the Guarantee and Collateral Agreement as a Grantor
thereunder with the same force and effect as if originally named therein as a Grantor and, without
limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities
of a Grantor thereunder and expressly grants to the Administrative Agent, for the benefit of the
Secured Parties (as defined in the Guarantee and Collateral Agreement), a security interest in all
Collateral owned by such Additional Grantor to secure all of such Additional Grantor’s obligations
and liabilities thereunder. The information set forth in Annex 1-A hereto is hereby added
to the information set forth in Schedules 1 through 5 to the Guarantee and
Collateral Agreement. The Additional Grantor hereby represents and warrants that each of the
representations and warranties contained in Article V of the Guarantee and Collateral Agreement is
true and correct on and as the date hereof (after giving effect to this Assumption Agreement) as if
made on and as of such date.

Annex I - 1

 

2. Governing Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed
and delivered as of the date first above written.

	 	 	 	 	 
	 	[ADDITIONAL GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Annex I - 2

 

EXHIBIT F

FORM OF ASSIGNMENT AND ASSUMPTION

          This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Credit Agreement identified
below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment
and Assumption as if set forth herein in full.

          For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement and any other
documents or instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and obligations of the
Assignor under the respective facilities identified below (including any letters of credit and
guarantees included in such facilities) and (ii) to the extent permitted to be assigned under
applicable law, all claims, suits, causes of action and any other right of the Assignor (in its
capacity as a Lender) against any Person, whether known or unknown, arising under or in connection
with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the
loan transactions governed thereby or in any way based on or related to any of the foregoing,
including contract claims, tort claims, malpractice claims, statutory claims and all other claims
at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i)
above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being
referred to herein collectively as the “Assigned Interest”). Such sale and assignment is
without recourse to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

	 	 	 	 	 

	1.

	 	Assignor:
	 	________________________________________
	 
	 	 	 	 
	2.

	 	Assignee:
	 	________________________________________

[and is an Affiliate/Approved Fund of [identify Lender]1]
	 
	 	 	 	 
	3.

	 	Borrower:
	 	Key Energy Services, Inc.
	 
	 	 	 	 
	4.

	 	Administrative Agent:
	 	JPMorgan Chase Bank, N.A., as the administrative agent under the Credit Agreement
	 
	 	 	 	 
	5.

	 	Credit Agreement:
	 	The Credit Agreement dated as of March 31, 2011 among Key Energy Services, Inc., JPMorgan Chase
Bank, N.A., as
Administrative Agent, and the other agents and lenders
parties thereto

 

			
	1	 	Select as applicable.

Exhibit F - 1

 

 

	6.	 	Assigned Interest:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	Amount of	 	 
	 	 	Commitment/Loans	 	Commitment/Loans	 	Percentage Assigned of
	Commitment Assigned	 	for all Lenders	 	Assigned	 	Commitment/Loans2
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 

Effective Date: _____________ ___, 201___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL
BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	 	 
	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	
 	 
	 	 	Title: 	 	 
	 	 	 	 
	 

 

			
	2	 	Set forth, to at least 9 decimals, as a
percentage of the Commitment/Loans of all Lenders thereunder.

Exhibit F- 2

 

 

	 	 	 	 	 
	[Consented to and] Accepted:

JPMORGAN CHASE BANK, N.A., as

Administrative Agent

 	 	 
	By  	 	 	 
	 	Title: 	 	 	 
	 	 	 	 
	 
	[Consented to:]

KEY ENERGY SERVICES, INC.

 	 	 
	By  	
 	 	 
	 	Title: 	 	 	 
	 	 	 	 
	 

Exhibit F - 3

 

 

ANNEX 1

[Credit Agreement dated as of March 31, 2011

among Key Energy Services, Inc., JPMorgan Chase Bank, N.A., as Administrative Agent,

and the other agents and lenders parties thereto]3

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

          1. Representations and Warranties.

          1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under any
Loan Document.

          1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement
that are required to be satisfied by it in order to acquire the Assigned Interest and become a
Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 7.04
thereof, as applicable, and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Assignment and Assumption and to
purchase the Assigned Interest on the basis of which it has made such analysis and decision
independently and without reliance on the Administrative Agent or any other Lender, and (v) if it
is a Foreign Lender, attached to the Assignment and Assumption is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the
Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative
Agent, the Assignor or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in taking or not taking
action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be performed by it as a
Lender.

 

			
	3	 	Describe Credit Agreement at option of
Administrative Agent.

Exhibit F - 4

 

 

          2. Payments. From and after the Effective Date, the Administrative Agent shall
make all payments in respect of the Assigned Interest (including payments of principal, interest,
fees and other amounts) to the Assignor for amounts which have accrued to but excluding the
Effective Date and to the Assignee for amounts which have accrued from and after the Effective
Date.

          3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of New York.

Exhibit F - 5

 

 

EXHIBIT G

FORM OF SWING LINE LOAN BORROWING REQUEST

[               ], 201[   ]

     Key Energy Services, Inc., a Maryland corporation (the “Borrower”), pursuant to
Section 2.08 of the Credit Agreement dated as of March 31, 2011 (together with all
amendments, restatements, supplements or other modifications thereto being the “Credit
Agreement”) among the Borrower, JPMorgan Chase Bank, N.A., as Administrative Agent, and the
other agents and lenders (the “Lenders”) which are or become a party thereto (unless
otherwise defined herein, each capitalized term used herein is defined in the Credit Agreement),
hereby requests a Swing Line Borrowing as follows:

     (i) Aggregate amount of the requested Swing Line Borrowing is $[               ];

     (ii) Date of such Borrowing is [               ], 201[   ];

     (iii) Location and number of the Borrower’s account to which funds are to be disbursed, which
shall comply with the requirements of Section 2.08 of the Credit Agreement, is as follows:

[___________________]

[___________________]

[___________________]

[___________________]

[___________________]

     The undersigned certifies that he/she is the [               ] of the Borrower, and that as
such he/she is authorized to execute this certificate on behalf of the Borrower. The undersigned
further certifies, represents and warrants on behalf of the Borrower that the Borrower is entitled
to receive the requested Borrowing under the terms and conditions of the Credit Agreement.

	 	 	 	 	 
	 	KEY ENERGY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit G - 1

 

 

EXHIBIT H

FORM OF COMMITMENT INCREASE CERTIFICATE

[___________], 201[__]

	 	 	 

	To:

	 	JPMorgan Chase Bank, N.A.,
	 

	 	as Administrative Agent

     The Borrower, the Administrative Agent and certain Lenders have heretofore entered into a
Credit Agreement, dated as of March 31, 2011, (together with all amendments, restatements,
supplements or other modifications thereto, the “Credit Agreement”). Capitalized terms
used but not otherwise defined herein shall have the meaning given to such terms in the Credit
Agreement.

     This Commitment Increase Certificate is being delivered pursuant to Section
2.06(d)(ii)(E) of the Credit Agreement.

     Please be advised that the undersigned Lender has agreed (a) to increase its Commitment under
the Credit Agreement effective [__________], 201[__] from $[__________] to $[__________] and (b)
that it shall continue to be a party in all respect to the Credit Agreement and the other Loan
Documents. The Borrower shall pay the fee payable to the Administrative Agent pursuant to
Section 2.06(d)(ii)(E) of the Credit Agreement.

	 	 	 	 	 
	 	Very truly yours,

KEY ENERGY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit H - 1

 

 

	 	 	 	 	 
	Accepted and Agreed:

JPMorgan Chase Bank, N.A.

as Administrative Agent

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	Accepted and Agreed:

[Lender]

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

Exhibit H - 2

 

 

EXHIBIT I

FORM OF ADDITIONAL LENDER CERTIFICATE

[___________], 201[__]

	 	 	 

	To:

	 	JPMorgan Chase Bank, N.A.,
	 

	 	as Administrative Agent

     The Borrower, the Administrative Agent and certain Lenders have heretofore entered into a
Credit Agreement, dated as of March 31, 2011, (together with all amendments, restatements,
supplements or other modifications thereto, the “Credit Agreement”). Capitalized terms not
otherwise defined herein shall have the meaning given to such terms in the Credit Agreement.

     This Additional Lender Certificate is being delivered pursuant to Section
2.06(d)(ii)(F) of the Credit Agreement.

     Please be advised that [_______________] has agreed, and does hereby agree, (a) to become a
Lender under the Credit Agreement effective [____________] with a Commitment of [____________] and
(b) that it shall be a party in all respects to, and bound as a Lender in all respects by, the
Credit Agreement and the other Loan Documents.

     This Additional Lender Certificate is being delivered to the Administrative Agent together
with (i) an Administrative Questionnaire in the form supplied by the Administrative Agent, duly
completed by the Additional Lender and (ii) the fee payable to the Administrative Agent pursuant to
Section 2.06(d)(ii)(F) of the Credit Agreement. The Borrower shall deliver, to the extent
requested, a Note payable to such Additional Lender in a principal amount equal to its Commitment,
and otherwise duly completed.

	 	 	 	 	 
	 	Very truly yours,

KEY ENERGY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit I - 1

 

 

	 	 	 	 	 
	Accepted and Agreed:

JPMorgan Chase Bank, N.A.,

as Administrative Agent

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	Accepted and Agreed:

[Additional Lender]

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

Exhibit I - 2

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