Document:

exv4w3

 

EXHIBIT 4.3

      

GRANT PRIDECO, INC.

Issuer

and

WELLS FARGO BANK, N.A.

Trustee

SIXTH SUPPLEMENTAL INDENTURE

Dated as of April 18, 2008

To

INDENTURE

Dated as of July 27, 2005

6 1/8% SENIOR NOTES DUE 2015

      

 

 

     SIXTH SUPPLEMENTAL INDENTURE, dated as of April 18, 2008 (this “Supplemental Indenture”),
between Grant Prideco, Inc., a Delaware corporation (the “Company’), and Wells Fargo Bank, N.A., a
national banking corporation, as trustee under the Indenture referred to below (the “Trustee”).

RECITALS OF THE COMPANY

     WHEREAS, the Company and the Trustee are parties to that certain Indenture, dated as of July
27, 2005 (the “Original Indenture”), such Original Indenture, as amended and supplemented from time
to time (including, without limitation, pursuant to this Supplemental Indenture), being referred to
herein as the “Indenture”; and

     WHEREAS, pursuant to Section 10.02 of the Indenture, the Company and the Trustee may amend or
supplement the Indenture with the written consent of the Holders of at least a majority in
principal amount of the Notes outstanding; and

     WHEREAS, National Oilwell Varco, Inc., a Delaware corporation (“National Oilwell Varco”), has
offered to exchange all of the outstanding Notes, upon the terms and subject to the conditions set
forth in its Prospectus, dated March 20, 2008, and in the related Letter of Transmittal and Consent
(the “Exchange Offer”); and

     WHEREAS, in connection with the Exchange Offer, National Oilwell Varco has been soliciting
written consents of the Holders to the amendments to the Original Indenture set forth herein (and
to the execution of this Supplemental Indenture), and National Oilwell Varco has now obtained such
written consents from the Holders of a majority in aggregate principal amount of the outstanding
Notes; and

     WHEREAS, accordingly, this Supplemental Indenture and the amendments set forth herein are
authorized pursuant to Section 10.02 of the Original Indenture; and

     WHEREAS, the execution and delivery of this Supplemental Indenture has been duly authorized by
the parties hereto, and all other acts necessary to make this Supplemental Indenture a valid and
binding supplement to the Indenture effectively amending the Indenture as set forth herein have
been duly taken; and

     NOW, THEREFORE, in consideration of the premises, agreements and obligations set forth herein
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree, for the equal and proportionate benefit of all
Holders of the Notes, as follows:

ARTICLE 1.

RELATION TO INDENTURE; DEFINITIONS

     Section 1.01. Relation to Indenture.

     With respect to the Notes, this Supplemental Indenture constitutes an integral part of the
Indenture.

 

 

     Section 1.02. Definitions.

     For all purposes of this Supplemental Indenture, except as otherwise expressly provided
herein, capitalized terms used herein and not otherwise defined herein shall have the meanings
ascribed thereto in the Original Indenture.

     Section 1.03. General References.

     All references in this Supplemental Indenture to Articles and Sections, unless otherwise
specified, refer to the corresponding Articles and Sections of this Supplemental Indenture; and the
terms “herein”, “hereof”, “hereunder” and any other word of similar import refers to this
Supplemental Indenture.

ARTICLE 2.

AMENDMENTS TO INDENTURE

     Section 2.01. Amendments.

     With respect to all outstanding Notes:

     (a) Sections 4.03, 4.04, 4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.15, 4.16, 4.17,
4.18, 4.19, 4.20, 5.01 and 6.01(c), (d), (f) and (g) of the Original Indenture are hereby
deleted and the Company is hereby released from its obligations thereunder;

     (b) any failure by the Company to comply with the terms of any of the foregoing
Sections of the Original Indenture (whether before or after the execution of this
Supplemental Indenture) shall no longer constitute a Default or an Event of Default under
the Indenture and shall no longer have any other consequence under the Indenture;

     Section 2.02. Deleted Defined Terms.

     In conjunction with the amendments identified in Section 2.01 above, the following defined
terms used in the Indenture are hereby deleted:

     “Acquired Debt”, “Affiliate Transaction”, “Asset Sale Offer”, “Attributable Debt”, “Change of
Control Offer”, “Change of Control Payment”, “Change of Control Payment Date”, “Change of Control
Triggering Event”, “Consolidated Cash Flow”, “Consolidated Net Income”, “Credit Facilities”,
“Designated Non-cash Consideration”, “Domestic Subsidiary”, “Excess Proceeds”, “Existing
Indebtedness”, “Fall-away Covenants”, “Fall-away Event”, “Fixed Charge Coverage Ratio”, “Fixed
Charges”, “Foreign Restricted Subsidiary”, “Investment Grade Rating”, “Liquid Securities”, “Net
Income”, “Permitted Debt”, “Permitted Liens”, “Permitted Refinancing Indebtedness”, “Rating
Agency”, “Rating Category”, “Rating Decline”, “Restricted Investment”, “sale and leaseback
transaction”, and “Total Assets”.

2

 

     Section 2.03. Effectiveness; Operation.

     This Supplemental Indenture shall be effective as of the date hereof. However, the amendments
and other changes to the Original Indenture contemplated hereby shall become operative upon the
first acceptance of the Notes for exchange in the Exchange Offer and the delivery of the
consideration therefor to the Exchange Agent for the Exchange Offer.

ARTICLE 3.

MISCELLANEOUS

     Section 3.01. Certain Trustee Matters.

     The recitals contained herein shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for their correctness.

     The Trustee makes no representations as to the validity or sufficiency of this Supplemental
Indenture or the proper authorization or due execution thereof by the Company.

     Section 3.02. Continued Effect.

     Except as expressly supplemented and amended by this Supplemental Indenture, the Original
Indenture (as supplemented and amended to date) shall continue in full force and effect in
accordance with the provisions thereof, and the Original Indenture (as so supplemented and amended,
and as further supplemented and amended by this Supplemental Indenture) is in all respects hereby
ratified and confirmed. This Supplemental Indenture and all its provisions shall be deemed a part
of the Original Indenture in the manner and to the extent herein and therein provided.

     Section 3.03. Governing Law.

     THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS
SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE
EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     Section 3.04. Counterparts.

     This instrument may be executed in any number of counterparts, each of which shall be deemed
to be an original, but all such counterparts shall together constitute but one and the same
instrument.

3

 

SIGNATURES

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A., as Trustee

 	 
	 	By:  	/s/ Patrick T. Giordano
 	 
	 	 	Name:  	Patrick T. Giordano 	 
	 	 	Title:  	Vice President 	 
	 
	 	GRANT PRIDECO, INC.

 	 
	 	By:  	/s/ Philip A. Choyce
 	 
	 	 	Name:  	Philip A. Choyce 	 
	 	 	Title:  	Vice President 	 

4

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	XL SYSTEMS, L.P.
	 	 	 	 	By Grant Prideco Holding, LLC,
	 

	 	 	 	 	 	its general partner
	 	 	GRANT PRIDECO, L.P.
	 	 	 	 	By Grant Prideco Holding, LLC,
	 

	 	 	 	 	 	its general partner
	 	 	PLEXUS DEEPWATER TECHNOLOGIES LTD.
	 	 	 	 	By Grant Prideco Holding, LLC,
	 

	 	 	 	 	 	its general partner
	 	 	REEDHYCALOG, L.P.
	 	 	 	 	By ReedHycalog, LLC,
	 

	 	 	 	 	 	its general partner
	 	 	XL SYSTEMS INTERNATIONAL, INC.

GP EXPATRIATE SERVICES, INC.

GRANT PRIDECO HOLDING, LLC

GRANT PRIDECO PC COMPOSITES
	 	 	 	 	HOLDINGS, LLC
	 	 	TA INDUSTRIES, INC.

TUBE-ALLOY CAPITAL CORPORATION

TUBE-ALLOY CORPORATION

TAI HOLDING, INC.

INTELLIPIPE, INC.

REEDHYCALOG CORING SERVICES
 INTERNATIONAL, INC.

REEDHYCALOG INTERNATIONAL
	 	 	 	 	HOLDING, LLC
	 	 	REEDHYCALOG NORWAY, LLC

REEDHYCALOG COLOMBIA, LLC

REEDHYCALOG AZERBAIJAN, LLC

REEDHYCALOG ARGENTINA, LLC

REEDHYCALOG KAZAKHSTAN, LLC

REEDHYCALOG CIS, LLC

REEDHYCALOG THAILAND, LLC

REEDHYCALOG, LLC

INTELLISERV, INC.

REEDHYCALOG ANGOLA, LLC

REEDHYCALOG GABON, LLC

REEDHYCALOG CAMEROON, LLC

REEDHYCALOG CONGO, LLC

REEDHYCALOG ROMANIA, LLC

(Signature Page continued on Next Page)

5

 

	 	 	 	 	 	 	 
	 	 	ANDERGAUGE USA, INC.

GRANT PRIDECO TUBE-ALLOY
	 	 	 	 	HOLDING LLC
	 	 	GRANT PRIDECO AB TCA
	 	 	 	 	HOLDING LLC
	 	 	V&M TCA, LP
	 	 	 	 	By Grant Prideco AB TCA Holding LLC,
	 

	 	 	 	 	 	its general partner
	 	 	V&M ATLAS BRADFORD, LP
	 	 	 	 	By Grant Prideco AB TCA Holding LLC,
	 

	 	 	 	 	 	its general partner
	 	 	V&M TUBE-ALLOY, LP
	 	 	 	 	By Grant Prideco Tube-Alloy Holding LLC,
	 

	 	 	 	 	 	its general partner
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Philip A. Choyce
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Philip A. Choyce
	 

	 	 	 	Title:
	 	 Secretary

6

 

	 	 	 	 	 	 	 
	 	 	GRANT PRIDECO USA, LLC

GP USA HOLDING, LLC

GRANT PRIDECO FINANCE, LLC

GRANT PRIDECO EUROPEAN HOLDING, LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ John J. Koach
	 	 	 	 	 
	 	 	 	 	Name: John J. Koach
	 	 	 	 	Title: Vice President, Treasurer, Secretary

7exv10w1

 

Exhibit 10.1

EXECUTION VERSION

 

$2,000,000,000

5-YEAR CREDIT AGREEMENT

Dated as of April 21, 2008

Among

NATIONAL OILWELL VARCO, INC.

as Borrower,

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent, Co-Lead Arranger and Joint Book Runner

DNB NOR BANK ASA,

as Co-Lead Arranger and Joint Book Runner

THE LENDERS PARTY HERETO FROM TIME TO TIME

 

FORTIS BANK S.A./N.V., NEW YORK BRANCH,

THE BANK OF NOVA SCOTIA

AND

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

as Co-Documentation Agents

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Certain Defined Terms
	 	 	1	 
	Section 1.2 Computation of Time Periods
	 	 	16	 
	Section 1.3 Accounting Terms; Changes in GAAP; Foreign Currency Limits
	 	 	16	 
	Section 1.4 Types of Advances
	 	 	17	 
	Section 1.5 Change of Currency
	 	 	17	 
	Section 1.6 Miscellaneous
	 	 	17	 
	 
	 	 	 	 
	ARTICLE II THE ADVANCES AND THE LETTERS OF CREDIT
	 	 	17	 
	 
	 	 	 	 
	Section 2.1 The Advances
	 	 	17	 
	Section 2.2 Method of Borrowing
	 	 	21	 
	Section 2.3 Fees
	 	 	25	 
	Section 2.4 Reduction of Commitments
	 	 	26	 
	Section 2.5 Repayment of Advances
	 	 	26	 
	Section 2.6 Interest
	 	 	26	 
	Section 2.7 Prepayments
	 	 	28	 
	Section 2.8 Breakage Costs
	 	 	28	 
	Section 2.9 Increased Costs
	 	 	29	 
	Section 2.10 Payments and Computations
	 	 	30	 
	Section 2.11 Taxes
	 	 	31	 
	Section 2.12 Illegality
	 	 	34	 
	Section 2.13 Letters of Credit
	 	 	34	 
	Section 2.14 Sharing of Payments, Etc
	 	 	39	 
	Section 2.15 Increase of Commitment
	 	 	39	 
	Section 2.16 Lender Replacement
	 	 	40	 
	Section 2.17 Currency Fluctuations, Mandatory Prepayments and Deposits in the Cash Collateral Accounts
	 	 	41	 
	Section 2.18 Market Disruption
	 	 	42	 
	Section 2.19 Extension of Maturity Date
	 	 	42	 
	 
	 	 	 	 
	ARTICLE III CONDITIONS OF LENDING
	 	 	43	 
	 
	 	 	 	 
	Section 3.1 Conditions Precedent to Initial Borrowings and the Initial Letter of Credit
	 	 	43	 
	Section 3.2 Conditions Precedent for each Borrowing or Letter of Credit
	 	 	44	 
	Section 3.3 Additional Condition Precedent for Initial Borrowing through Authorized Agents
	 	 	45	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	45	 
	Section 4.1 Corporate Existence; Subsidiaries
	 	 	45	 
	Section 4.2 Authorization and Validity
	 	 	46	 
	Section 4.3 Corporate Power
	 	 	46	 
	Section 4.4 Authorization and Approvals
	 	 	46	 
	Section 4.5 Enforceable Obligations
	 	 	46	 
	Section 4.6 Financial Statements
	 	 	46	 
	Section 4.7 True and Complete Disclosure
	 	 	47	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 4.8 Litigation
	 	 	47	 
	Section 4.9 Use of Proceeds
	 	 	47	 
	Section 4.10 Investment Company Act
	 	 	47	 
	Section 4.11 Taxes
	 	 	47	 
	Section 4.12 Pension Plans
	 	 	48	 
	Section 4.13 Condition of Property; Casualties
	 	 	48	 
	Section 4.14 Insurance
	 	 	48	 
	Section 4.15 No Defaults; No Material Adverse Effect
	 	 	48	 
	Section 4.16 Permits, Licenses, etc
	 	 	48	 
	Section 4.17 Compliance with Laws
	 	 	49	 
	 
	 	 	 	 
	ARTICLE V AFFIRMATIVE COVENANTS
	 	 	49	 
	 
	 	 	 	 
	Section 5.1 Compliance with Laws, Etc
	 	 	49	 
	Section 5.2 Insurance
	 	 	49	 
	Section 5.3 Preservation of Existence, Etc
	 	 	49	 
	Section 5.4 Payment of Taxes, Etc
	 	 	49	 
	Section 5.5 Visitation Rights
	 	 	50	 
	Section 5.6 Reporting Requirements
	 	 	50	 
	Section 5.7 Maintenance of Property
	 	 	51	 
	Section 5.8 Use of Proceeds
	 	 	52	 
	Section 5.9 Pari Passu
	 	 	52	 
	 
	 	 	 	 
	ARTICLE VI NEGATIVE COVENANTS
	 	 	52	 
	 
	 	 	 	 
	Section 6.1 Liens, Etc
	 	 	52	 
	Section 6.2 Indebtedness
	 	 	53	 
	Section 6.3 Senior Notes
	 	 	53	 
	Section 6.4 Limitation on Certain Restrictions
	 	 	54	 
	Section 6.5 Merger, Consolidation or Acquisition; Asset Sales
	 	 	54	 
	Section 6.6 Restricted Payments
	 	 	54	 
	Section 6.7 Affiliate Transactions
	 	 	54	 
	Section 6.8 Other Businesses
	 	 	55	 
	Section 6.9 Maximum Leverage Ratio
	 	 	55	 
	 
	 	 	 	 
	ARTICLE VII REMEDIES
	 	 	55	 
	 
	 	 	 	 
	Section 7.1 Events of Default
	 	 	55	 
	Section 7.2 Optional Acceleration of Maturity
	 	 	56	 
	Section 7.3 Automatic Acceleration of Maturity
	 	 	57	 
	Section 7.4 Cash Collateral Account
	 	 	57	 
	Section 7.5 Non-exclusivity of Remedies
	 	 	58	 
	Section 7.6 Right of Set-off
	 	 	58	 
	Section 7.7 Currency Conversion After Maturity
	 	 	58	 
	 
	 	 	 	 
	ARTICLE VIII AGENCY AND ISSUING LENDER PROVISIONS
	 	 	58	 
	 
	 	 	 	 
	Section 8.1 Authorization and Action
	 	 	58	 
	Section 8.2 Administrative Agent’s Reliance, Etc
	 	 	58	 
	Section 8.3 The Administrative Agent and its Affiliates
	 	 	59	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 8.4 Lender Credit Decision
	 	 	59	 
	Section 8.5 Indemnification
	 	 	59	 
	Section 8.6 Successor Administrative Agent and Issuing Lenders
	 	 	60	 
	Section 8.7 Co-Lead Arrangers, Joint Book Runners, other Agency Titles
	 	 	60	 
	 
	 	 	 	 
	ARTICLE IX MISCELLANEOUS
	 	 	61	 
	 
	 	 	 	 
	Section 9.1 Amendments, Etc
	 	 	61	 
	Section 9.2 Notices, Intralinks, Etc
	 	 	61	 
	Section 9.3 No Waiver; Remedies
	 	 	62	 
	Section 9.4 Costs and Expenses
	 	 	62	 
	Section 9.5 Binding Effect
	 	 	63	 
	Section 9.6 Lender Assignments and Participations
	 	 	63	 
	Section 9.7 Indemnification
	 	 	65	 
	Section 9.8 Execution in Counterparts
	 	 	65	 
	Section 9.9 Survival of Representations, etc
	 	 	65	 
	Section 9.10 Severability
	 	 	66	 
	Section 9.11 Usury Not Intended
	 	 	66	 
	Section 9.12 Confidentiality
	 	 	66	 
	Section 9.13 Governing Law; Submission to Jurisdiction
	 	 	67	 
	Section 9.14 Waiver of Jury Trial
	 	 	67	 
	Section 9.15 Waiver of Consequential Damages
	 	 	67	 
	Section 9.16 Judgment Currency
	 	 	68	 
	Section 9.17 Headings Descriptive
	 	 	68	 
	Section 9.18 USA Patriot Act
	 	 	68	 

EXHIBITS:

	 	 	 	 	 
	Exhibit A

	 	-
	 	Form of Assignment and Acceptance
	Exhibit B

	 	-
	 	Form of Compliance Certificate
	Exhibit C

	 	-
	 	Form of Notice of Borrowing
	Exhibit D

	 	-
	 	Form of Notice of Conversion or Continuation
	Exhibit E

	 	-
	 	Form of Revolving Note
	Exhibit F

	 	-
	 	Form of Swingline Note

	 	 	 	 	 
	SCHEDULES:
	 	 	 	 
	 
	Schedule 1.1(a)

	 	-
	 	Revolving Commitments
	Schedule 1.1(b)

	 	-
	 	Mandatory Cost Formulae
	Schedule 1.1(c)

	 	-
	 	Existing Letters of Credit

-iii-

 

5-YEAR CREDIT AGREEMENT

     This 5-YEAR CREDIT AGREEMENT (“Agreement”) is entered into as of April 21, 2008, among
NATIONAL OILWELL VARCO, INC., a Delaware corporation (“Borrower”), WELLS FARGO BANK,
NATIONAL ASSOCIATION, as Administrative Agent (as defined below), Co-Lead Arranger and Joint Book
Runner, DNB NOR BANK ASA, as Co-Lead Arranger and Joint Book Runner, and each Lender (as defined
below).

     The parties hereto agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

     Section 1.1 Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (unless otherwise indicated, such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

     “364-Day Credit Agreement” means that certain 364-Day Credit Agreement dated of even
date herewith among the Borrower, Wells Fargo as the administrative agent, co-lead arranger and
joint book runner, DnB NOR Bank ASA as co-lead arranger and joint book runner and each of the
lenders party thereto from time to time, as amended, supplement, extended or otherwise modified
from time to time.

     “Acquisition” means any transaction, or any series of related transactions,
consummated on or after the date of this Agreement, by which the Borrower or any of its
Subsidiaries (a) acquires any going business or all or substantially all of the assets of any firm,
corporation or limited liability company, or division thereof, whether through purchase of assets,
merger, consolidation or otherwise or (b) directly or indirectly acquires (in one transaction or as
the most recent transaction in a series of related transactions) at least a majority (in number of
votes) of the securities of a corporation which have ordinary voting power for the election of
directors (other than securities having such power only by reason of the happening of a
contingency) or a majority (by percentage of voting power) of the outstanding ownership interests
of a partnership or limited liability company.

     “Additional Lender” has the meaning set forth in Section 2.15.

     “Adjusted Prime Rate” means, for any day, the fluctuating rate per annum of interest
equal to the greater of (a) the Prime Rate in effect on such day and (b) the sum of the Federal
Funds Rate in effect on such day plus 1/2% per annum.

     “Administrative Agent” means Wells Fargo Bank, National Association in its capacity as
administrative agent for the Lenders pursuant to Article VIII and any successor administrative
agent in that capacity pursuant to Section 8.6.

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

     “Advance” means any Swingline Advance or any Revolving Advance.

     “Affiliate” means (a) as to the Borrower or any Subsidiary thereof, (i) any other
Person that, directly or indirectly, through one or more intermediaries, controls, is controlled
by, or is under common control with, such Person or any Subsidiary of such Person or (ii) any other
Person owning beneficially or controlling thirty percent (30%) or more of the equity interests in
such Person, and (b) as to any other

 

 

Person, any other Person that directly or indirectly, through one or more intermediaries,
controls, is controlled by, or is under common control with, such Person. The term “control”
(including the terms “controlled by” or “under common control with”) means the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through ownership of voting securities or other equity interests, by contract or
otherwise. For purposes of clause (b), a Person shall be deemed to control another Person if the
controlling Person owns 10% or more of any class of voting securities (or other ownership
interests) of the controlled Person.

     “Agent’s Fee Letter” means the letter agreement dated as of January 8, 2008 between
the Borrower and Wells Fargo, as modified or amended from time to time.

     “Agreed Currency” means (a) Dollars, (b) Euro, (c) Pounds Sterling, (d) Canadian
Dollars, (e) Norwegian Kroner, and (f) any other Eligible Currency which the Borrower requests the
Administrative Agent to include as an Agreed Currency hereunder and which is acceptable to all
Lenders and, in connection with Letters of Credit, which is acceptable to the applicable Issuing
Lender. If, after the designation of any currency as an Agreed Currency (including any Foreign
Currency designated in clause (b) – (f) above) pursuant to the terms hereof, (x) currency control
or other exchange regulations are imposed in the country in which such currency is issued with the
result that different types of such currency are introduced, (y) such currency, in the reasonable
determination of the Administrative Agent, no longer qualifies as an “Eligible Currency” or (z) in
the reasonable determination of the Administrative Agent, a Dollar Amount of such currency is not
readily calculable, the Administrative Agent shall promptly notify the Lenders and the Borrower,
and such currency shall no longer be an Agreed Currency until such time as the Administrative
Agent, the applicable Issuing Lender, or the Lenders, as required herein, agree to reinstate such
currency as an Agreed Currency.

     “Agreement” means this 5-Year Credit Agreement dated as of April 21, 2008 among the
Borrower, the Administrative Agent, and the Lenders, as it may be amended hereafter in accordance
with its terms.

     “Aggregate Exposure” means the sum of (a) the aggregate outstanding Advances plus (b)
the aggregate Letter of Credit Exposure.

     “Applicable Margin” means, at any time with respect to any Revolving Advance,
Utilization Fees, Facility Fees or letter of credit fees (except as otherwise provided below), the
following percentages based upon the ratings by Moody’s and S&P, respectively, applicable on such
date to the Index Debt:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Eurocurrency	 	 	 	 	 	 
	 	 	 	 	 	 	Rate	 	Prime Rate	 	Facility	 	Utilization
	Tier	 	Index Debt Rating	 	Advances	 	Advances	 	Fees	 	Fees
	 
	 	S&P	 	Moody’s	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1
	 	A+ or higher	 	A1 or higher	 	 	0.180	%	 	 	0.000	%	 	 	0.070	%	 	 	0.050	%
	2
	 	A	 	A2	 	 	0.220	%	 	 	0.000	%	 	 	0.080	%	 	 	0.050	%
	3
	 	A-	 	A3	 	 	0.260	%	 	 	0.000	%	 	 	0.090	%	 	 	0.100	%
	4
	 	BBB+	 	Baa1	 	 	0.320	%	 	 	0.000	%	 	 	0.100	%	 	 	0.100	%
	5
	 	BBB	 	Baa2	 	 	0.450	%	 	 	0.000	%	 	 	0.120	%	 	 	0.100	%
	6
	 	BBB-	 	Baa3	 	 	0.550	%	 	 	0.000	%	 	 	0.150	%	 	 	0.100	%
	7
	 	Lower than BBB-	 	Lower than Baa3	 	 	0.675	%	 	 	0.000	%	 	 	0.200	%	 	 	0.100	%

2

 

For purposes of the foregoing, (a) if either Moody’s or S&P shall not have in effect a rating for
the Index Debt (other than by reason of the circumstances referred to in the penultimate sentence
of this definition),
then such rating agency shall be deemed to have established a rating in Tier 7; (b) if the ratings
established or deemed to have been established by Moody’s and S&P for the Index Debt shall fall
within different Tiers, the Applicable Margin shall be based on the higher of the two ratings
unless one of the two ratings is two or more Tiers lower than the other, in which case the
Applicable Margin shall be determined by reference to the Tier next above that of the lower of the
two ratings; and (c) if the ratings established or deemed to have been established by Moody’s and
S&P for the Index Debt shall be changed (other than as a result of a change in the rating system of
Moody’s or S&P), such change shall be effective as of the date on which it is first announced or
published by the applicable rating agency or, in the absence of such announcement or publication,
on the effective date of such rating. Each change in the Applicable Margin shall apply during the
period commencing on the effective date of such change and ending on the date immediately preceding
the effective date of the next such change. If the rating system of Moody’s or S&P shall change,
or if either such rating agency shall cease to be in the business of rating corporate debt
obligations, the Borrower and the Lenders shall negotiate in good faith to amend this definition to
reflect such changed rating system or the unavailability of ratings from such rating agency and,
pending the effectiveness of any such amendment, the Applicable Margin shall be determined by
reference to the rating most recently in effect prior to such change or cessation. From the
Closing Date until the first such ratings change, if any, the Applicable Margin shall be determined
by reference to Tier 4.

     “Applicable Time” means, with respect to any borrowings and payments in any Designated
Currency, the local time in the place of settlement for such Designated Currency as may be
determined by the Administrative Agent, the applicable Swingline Lender or the applicable Issuing
Lender, as the case may be, to be necessary for timely settlement on the relevant date in
accordance with normal banking procedures in the place of payment.

     “Arrangers” means Wells Fargo, and its successors, in its capacity as co-lead arranger
and DnB NOR Bank ASA, and its successors, in its capacity as co-lead arranger.

     “Assignment and Acceptance” means an assignment and acceptance entered into by a
Lender and an Eligible Assignee, and accepted by the Administrative Agent, in substantially the
form of the attached Exhibit A.

     “Authorized Agent” means each officer of any wholly-owned Subsidiary of the Borrower,
who has been duly authorized and appointed by a Responsible Officer of Borrower to act on behalf of
the Borrower in requesting Advances and Letters of Credit, including, the designation of the
currency, amount, Conversions, continuations and prepayments of, and Interest Periods with respect
to, Advances and the determination of the amounts, terms and beneficiaries of Letters of Credit.

     “Borrower” has the meaning set forth in the preamble to this Agreement.

     “Borrowing” means a Revolving Borrowing or a Swingline Borrowing.

     “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Legal Requirements of, or are in fact closed in,
Texas or in New York and:

     (a) if such day relates to any interest rate settings as to a Eurocurrency Rate Advance
denominated in Dollars, any fundings, disbursements, settlements and payments in Dollars in respect
of any such Eurocurrency Rate Advance, or any other dealings in Dollars to be carried out pursuant
to this Agreement in respect of any such Eurocurrency Rate Advance, means any such day on which
dealings in deposits in Dollars are conducted by and between banks in the London interbank
eurodollar market;

3

 

     (b) if such day relates to any interest rate settings as to a Eurocurrency Rate Advance
denominated in Euro, any fundings, disbursements, settlements and payments in Euro in respect of
any such Eurocurrency Rate Advance, or any other dealings in Euro to be carried out pursuant to
this Agreement in respect of any such Eurocurrency Rate Advance, means a TARGET Day;

     (c) if such day relates to any interest rate settings as to a Eurocurrency Rate Advance
denominated in a currency other than Dollars or Euro, means any such day on which dealings in
deposits in the relevant currency are conducted by and between banks in the London interbank market
for such currency or, if such market is unavailable, then the principal offshore interbank market
for such currency; and

     (d) if such day relates to any fundings, disbursements, settlements and payments in a currency
other than Dollars or Euro in respect of a Eurocurrency Rate Advance denominated in a currency
other than Dollars or Euro, or any other dealings in any currency other than Dollars or Euro to be
carried out pursuant to this Agreement in respect of any such Eurocurrency Rate Advance (other than
any interest rate settings), means any such day on which banks are open for foreign exchange
business in the principal financial center of the country of such currency.

     “Canadian Dollars” means the lawful money of Canada.

     “Canadian Swingline Advance” has the meaning set forth in Section 2.1(b).

     “Canadian Swingline Lender” means The Bank of Nova Scotia as the swing line lender for
the Canadian Swingline Advances, or any successor swing line lender for Canadian Swingline Advances
hereunder.

     “Capital Lease” means, for any Person, any lease of any Property (whether real,
personal or mixed) by that Person as lessee which, in accordance with GAAP, is or should be
accounted for as a capital lease on the balance sheet of that Person.

     “Capitalized Lease Obligations” of a Person means the amount of the obligations of
such Person under Capital Leases which would be shown as a liability on a balance sheet of such
Person prepared in accordance with GAAP.

     “Cash Collateral Accounts” means the special cash collateral account containing cash
deposited pursuant to Sections 2.4(b), 2.13(g), 2.17, 7.2(b), or 7.3(b) to be maintained at the
Administrative Agent’s offices in accordance with Section 7.3.

     “Change in Control” means the acquisition by any Person, or two or more Persons acting
in concert, of beneficial ownership (within the meaning of Rule 13d-3 of the SEC under the
Securities Exchange Act of 1934), directly or indirectly, of securities of the Borrower (or other
securities convertible into such securities) representing 50% or more of the combined voting power
of all outstanding securities of the Borrower entitled to vote in the election of directors, other
than securities having such power only by reason of the happening of a contingency.

     “Closing Date” means the date on which all of the conditions precedent set forth in
Section 3.1 have been satisfied.

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

     “Combined Aggregate Commitments” means, as of any date of determination, the sum of
(a) the aggregate Revolving Commitments under this Agreement and (b) the aggregate “Revolving
Commitments” under, and as defined in, the 364-Day Credit Agreement.

     “Combined Aggregate Exposure” means, as of any date of determination, the sum of (a)
the Aggregate Exposure and (b) the aggregate outstanding principal amount of the advances under the
364-Day Credit Agreement.

     “Compliance Certificate” means a certificate of the Borrower in substantially the form
of the attached Exhibit B.

     “Computation Date” means (a) the last Business Day of each calendar quarter, (b) the
date of any proposed Borrowing, (c) the date of any proposed issuance, increase or extension of a
Letter of Credit, (d) the date of any reduction of Commitments pursuant to Section 2.4 or increase
of Commitments pursuant to Section 2.15, and (e) after an Event of Default has occurred and is
continuing, any other Business Day at the Administrative Agent’s discretion or upon instruction by
the Majority Lenders.

     “Confidential Information” means information that the Borrower furnishes to the
Administrative Agent or any Lender in a writing designated as confidential, but does not include
any such information that is or becomes generally available to the public or that is or becomes
available to the Administrative Agent or such Lender from a source other than the Borrower that is
not, to the Administrative Agent’s or such Lender’s knowledge, acting in violation of a
confidentiality agreement with the Borrower.

     “Consolidated” refers to the consolidation of the accounts of the Borrower and its
Subsidiaries in accordance with GAAP, including, when used in reference to the Borrower, principles
of consolidation consistent with those applied in the preparation of the Financial Statements.

     “Consolidated Net Worth” means at any time the consolidated stockholders’ equity of
the Borrower and its Subsidiaries calculated on a consolidated basis as of such time, determined in
accordance with GAAP.

     “Controlled Group” means all members of a controlled group of corporations and all
trades (whether or not incorporated) under common control which, together with the Borrower, are
treated as a single employer under Section 414 of the Code.

     “Convert”, “Conversion”, and “Converted” each refers to a conversion
of Advances of one Type into Advances of another Type pursuant to Section 2.2(b).

     “Credit Documents” means this Agreement, the Notes, the Letter of Credit Documents,
the Agent’s Fee Letter, and each other agreement, instrument or document executed by the Borrower
or any of its Subsidiaries at any time in connection with this Agreement, including each Notice of
Borrowing.

     “Default” means (a) an Event of Default or (b) any event or condition which with
notice or lapse of time or both would, unless cured or waived, become an Event of Default.

     “Designated Currency” means, (a) for a Revolving Borrowing, the Agreed Currency which
is designated for such Revolving Borrowing, (b) for Swingline Advances, the Agreed Currency which
is designated for such Advances, and (c) for any Letter of Credit, the Agreed Currency in which
such Letter of Credit is issued.

5

 

     “Dollars” and “$” means lawful money of the United States of America.

     “Dollar Amount” of any currency at any date shall mean (i) the amount of such currency
if such currency is Dollars or (ii) the equivalent in Dollars of any amount of such currency if
such currency is any Foreign Currency, calculated using the Exchange Rate.

     “Eligible Assignee” means (a) a commercial bank organized under the laws of the United
States, or any State thereof, and having primary capital of not less than $500,000,000 and approved
by the Administrative Agent, each Issuing Lender, each Swingline Lender and (provided no Default
has occurred and is continuing) the Borrower, which approvals will not be unreasonably withheld,
(b) a commercial bank organized under the laws of any other country which is a member of the
Organization for Economic Cooperation and Development and having primary capital (or its
equivalent) of not less than $500,000,000 and approved by the Administrative Agent, each Issuing
Lender, each Swingline Lender and (provided no Default has occurred and is continuing) the
Borrower, which approvals will not be unreasonably withheld, (c) a Lender and (d) an Affiliate of
the respective assigning Lender with the approval of the Administrative Agent, the Issuing Lenders
and the Swingline Lenders, which approvals will not be unreasonably withheld.

     “Eligible Currency” means any Foreign Currency provided that: (a) quotes for loans in
such currency are available in the London interbank deposit market; (b) such currency is freely
transferable and convertible into Dollars in the London foreign exchange market, (c) no approval of
a Governmental Authority in the country of issue of such currency is required to permit use of such
currency by any Lender or Issuing Lender for making loans or issuing letters of credit, or honoring
drafts presented under letters of credit in such currency, and (d) there is no restriction or
prohibition under any applicable Legal Requirements against the use of such currency for such
purposes.

     “EMU” means the economic and monetary union in accordance with the Treaty of Rome
1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the Amsterdam
Treaty of 1998.

     “Environmental Claim” means any third party (including governmental agencies and
employees) action, lawsuit, claim, demand, regulatory action or proceeding, order, decree, consent
agreement or notice of potential or actual responsibility or violation, including claims or
proceedings under any Environmental Law (“Claims”) or any permit issued under any
Environmental Law, including (a) any and all Claims by Governmental Authorities for enforcement,
cleanup, removal, response, remedial or other actions or damages pursuant to any applicable
Environmental Law, and (b) any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from Hazardous
Substances or arising from alleged injury or threat of injury to health or safety in relation to
the environment.

     “Environmental Laws” means any and all Legal Requirements arising from, relating to,
or in connection with the environment, health or safety, relating to (a) the protection of the
environment, (b) the effect of the environment on human health, (c) emissions, discharges or
releases of Hazardous Substances into surface water, ground water or land, or (d) the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous
Substances or wastes or the clean-up or other remediation thereof.

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

     “Euro” and “EUR” mean the lawful currency of the participating member states
of the EMU.

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     “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of
the Federal Reserve Board (or any successor), as in effect from time to time.

     “Eurocurrency Base Rate” means, (a) the rate per annum (rounded upward to the nearest
whole multiple of 1/100th of 1%) equal to the British Bankers Association LIBOR Rate
(“BBA LIBOR”), as published by Reuters (or other commercially available source providing quotations
of BBA LIBOR as designated by the Administrative Agent from time to time) at approximately 11:00
a.m., London time, two Business Days prior to the commencement of such Interest Period, for
deposits in the relevant currency (for delivery on the first day of such Interest Period) with a
term equivalent to such Interest Period, and (b) if the rate as determined under clause (a) is not
available at such time for any reason, then the rate determined by the Administrative Agent to be
the rate at which deposits in the relevant currency for delivery on the first day of such Interest
Period in immediately available funds in the approximate amount of the Eurocurrency Rate Advance
being made, continued or converted by the Administrative Agent and with a term equivalent to such
Interest Period would be offered by the Administrative Agent’s London Branch (or other branch or
Affiliate of the Administrative Agent) to major banks in the London interbank market for such
currency or, if such market is unavailable, then the principal offshore interbank market for such
currency at their request at approximately 11:00 a.m. (London time) two Business Days prior to the
commencement of such Interest Period.

     “Eurocurrency Rate” means, with respect to a Eurocurrency Rate Advance for the
relevant Interest Period, the interest rate per annum equal to (a) Eurocurrency Base Rate divided
by (b) one minus the reserve percentage (expressed as a decimal, carried out to five decimal
places) in effect on such day, whether or not applicable to any Lender, under regulations issued
from time to time by the Federal Reserve Board for determining the maximum reserve requirement
(including any emergency, supplemental or other marginal reserve requirement) with respect to
Eurocurrency funding (currently referred to as “Eurocurrency liabilities”). It is agreed that for
purposes of this definition, Eurocurrency Rate Advances made hereunder shall be deemed to
constitute Eurocurrency Liabilities as defined in Regulation D and to be subject to the reserve
requirements of Regulation D. The Eurocurrency Rate for each outstanding Eurocurrency Rate
Advance shall be adjusted automatically as of the effective date of any change in the reserve
percentage described in clause (b) above.

     “Eurocurrency Rate Advance” means an Advance which bears interest as provided in
Section 2.6(b).

     “Events of Default” has the meaning set forth in Section 7.1.

     “Exchange Rate” for a currency means the rate determined by the Administrative Agent
to be the rate quoted by the Administrative Agent as the spot rate for the purchase by the
Administrative Agent 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 as of
which the foreign exchange computation is made; provided that the Administrative Agent may obtain
such spot rate from another financial institution designated by the Administrative Agent if the
Administrative Agent does not have as of the date of determination a spot buying rate for any such
currency; and provided further that, as to Letters of Credit, the Administrative Agent may use such
spot rate quoted on the date as of which the foreign exchange computation is made in the case of
any Letter of Credit denominated in a Foreign Currency.

     “Existing Credit Agreements” means (a) that certain Amended and Restated Credit
Agreement dated as of June 21, 2005 among the Borrower, Wells Fargo Bank, National Association, DnB
NOR Bank ASA, each as an administrative agent, and the lenders and other agents party thereto, and
(b) that certain Amended and Restated Credit Agreement dated as of August 31, 2006 among Grant
Prideco, Inc., certain

7

 

subsidiaries thereof as guarantors, Wells Fargo Bank, National Association, as administrative
agent, Bank of America, N.A. as syndication agent, and the lenders and other agents party thereto
as amended.

     “Existing Letters of Credit” means (a) those letters of credit issued by Wells Fargo
prior to the Closing Date, for the account of the Borrower, any Subsidiary of the Borrower, Grant
Prideco, Inc. or any of its Subsidiaries and set forth on Schedule 1.1(c), (b) those letters of
credit issued by JPMorgan Chase Bank, N.A. prior to the Closing Date under the Existing Credit
Agreements for the account of the Borrower or any Subsidiary of the Borrower, and set forth on
Schedule 1.1(c) and (c) those letters of credit issued by The Bank of Nova Scotia prior to the
Closing Date under the Existing Credit Agreements for the account of the Borrower, any Subsidiary
of the Borrower, Grant Prideco, Inc. or any of its Subsidiaries, and set forth on Schedule 1.1(c).

     “Expiration Date” means, with respect to any Letter of Credit, the date on which such
Letter of Credit will expire or terminate in accordance with its terms.

     “Facility” means, collectively, (a) the revolving credit facility described in Section
2.1(a), (b) the Swingline Subfacilities, and (c) the letter of credit subfacility described in
Section 2.13(a).

     “Facility Fees” has the meaning set forth in Section 2.3(a).

     “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal for each day during such period to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is
a Business Day, the average of the quotations for any such day on such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing selected by it.

     “Federal Reserve Board” means the Board of Governors of the Federal Reserve System or
any of its successors.

     “Financial Contract” of a Person means (a) any exchange-traded or over-the-counter
futures, forward, swap or option contract or other financial instrument with similar
characteristics, or (b) any Hedging Transaction.

     “Financial Statements” means the financial statements described in Section 4.6.

     “Foreign Currency” means any currency other than Dollars.

     “Foreign Currency Amount” means with respect to an amount denominated in Dollars, the
equivalent in a Foreign Currency of such amount determined at the Exchange Rate for the purchase of
such Foreign Currency with Dollars, as determined by the Administrative Agent on the Computation
Date applicable to such amount.

     “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, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

     “Foreign Swingline Lender” means the Canadian Swingline Lender, the UK Swingline
Lender or the Norwegian Swingline Lender.

8

 

     “Foreign Swingline Advance” means the Canadian Swingline Advance, the UK Swingline
Advance or the Norwegian Swingline Advance.

     “GAAP” means United States generally accepted accounting principles as in effect from
time to time, applied on a basis consistent with the requirements of Section 1.3.

     “Governmental Authority” means any foreign governmental authority (including any
supra-national bodies such as the European Union or the European Central Bank), the United States
of America, any state of the United States of America and any subdivision of any of the foregoing,
and any agency, central bank, department, commission, board, authority or instrumentality, bureau
or court having jurisdiction over any Lender, the Borrower, or the Borrower’s Subsidiaries or any
of their respective Properties.

     “Hazardous Substance” shall have the meaning assigned to that term in the
Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended by the
Superfund Amendments and Reauthorization Acts of 1986, and shall also include substances regulated
under any other Environmental Law, including pollutants, contaminants, petroleum, petroleum
products, radionuclides, radioactive materials, and medical and infectious waste.

     “Hazardous Waste” means the substances regulated as such pursuant to any Environmental
Law.

     “Hedging Transactions” means any transaction (including an agreement with respect
thereto) now existing or hereafter entered into by a Person which is a rate swap, basis swap,
forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or
equity index option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, forward transaction, currency swap transaction,
cross-currency rate swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions) or any combination thereof, whether linked to
one or more interest rates, foreign currencies, commodity prices, equity prices or other financial
measures.

     “Hedging Obligations” of a Person means, without duplication, any and all obligations
of such Person, whether absolute or contingent and howsoever and whensoever created, arising,
evidenced or acquired (including all renewals, extensions and modifications thereof and
substitutions therefor), under (a) any and all Hedging Transactions, and (b) any and all
cancellations, buy backs, reversals, terminations or assignments of any Hedging Transactions.

     “Indebtedness” of a Person means, without duplication, such Person’s (a) obligations
for borrowed money (regardless of whether such obligations would be, in accordance with GAAP, shown
as a short term debt or long term debt on the consolidated balance sheet of such Person), (b)
obligations representing the deferred purchase price of Property or services (other than accounts
payable arising in the ordinary course of such Person’s business payable on terms customary in the
trade and any other amounts that are being contested and for which adequate reserves have been
established), (c) obligations of others which such Person has directly or indirectly, whether or
not assumed, secured by Liens or payable out of the proceeds or production from Property now or
hereafter owned or acquired by such Person (but, if not otherwise assumed, limited to the extent of
such Property’s fair market value), guaranteed or otherwise provided credit support therefore, (d)
to the extent not included in clause (a) above, any obligations which are evidenced by notes,
acceptances, or other instruments, (e) reimbursement obligations of such Person in respect of drawn
or funded letters of credit, surety bonds, acceptance facilities, or drafts or similar instruments
issued or accepted by banks and other financial institutions for the account of such Person; (f)
obligations of such Person to purchase securities or other Property arising out of or in connection
with the sale of the same or substantially similar securities or

9

 

Property, (g) Capitalized Lease Obligations, (h) Net Mark-to-Market Exposure under Hedging
Transactions and other Financial Contracts, (i) Hedging Obligations, and (j) any other financial
accommodation which in accordance with GAAP would be shown as a short term debt or long term debt
on the consolidated balance sheet of such Person.

     “Index Debt” means senior, unsecured, long-term indebtedness for borrowed money of the
Borrower that is not guaranteed by any other Person or subject to any other credit enhancement.

     “Interest Period” means, for each Eurocurrency Rate Advance comprising part of the
same Borrowing, the period commencing on the date of such Advance or the date of the Conversion of
any Prime Rate Advance into a Eurocurrency Rate Advance and ending on the last day of the period
selected by the Borrower pursuant to the provisions below and Section 2.2 and, thereafter, each
subsequent period commencing on the last day of the immediately preceding Interest Period and
ending on the last day of the period selected by the Borrower pursuant to the provisions below and
Section 2.2. The duration of each such Interest Period shall be one, two, three or six months, in
each case as the Borrower may select upon notice received by the Administrative Agent not later
than 12:00 p.m. (Houston, Texas time) on the day required under Section 2.2 in connection with a
Revolving Borrowing of such Type of Advance; provided, however, that:

          (a) Interest Periods commencing on the same date for Advances comprising part of the same
Borrowing shall be of the same duration;

          (b) whenever the last day of any Interest Period would otherwise occur on a day other than a
Business Day, the last day of such Interest Period shall be extended to occur on the next
succeeding Business Day, provided that if such extension would cause the last day of such
Interest Period to occur in the next following calendar month, the last day of such Interest Period
shall occur on the next preceding Business Day;

          (c) any Interest Period which begins on the last Business Day of a calendar month (or on a day
for which there is no numerically corresponding day in the calendar month at the end of such
Interest Period) shall end on the last Business Day of the calendar month in which it would have
ended if there were a numerically corresponding day in such calendar month; and

          (d) no Interest Period shall end after the Maturity Date.

     “Issuing Lender” means (a) with respect to each Existing Letter of Credit, the Lender
that issued such Letter of Credit, (b) with respect to all other Letters of Credit, Wells Fargo in
its capacity as an issuer of Letters of Credit hereunder and up to three other Lenders designated
in writing to the Administrative Agent by the Borrower (and consented to by such Lender) as an
issuer of Letters of Credit, in their respective capacity as an issuer of Letters of Credit
hereunder, and (c) any Lender acting as a successor issuing lender pursuant to Section 8.6.

     “Legal Requirement” means any law, statute, ordinance, decree, requirement, order,
judgment, injunction, rule, regulation or other restriction (or official interpretation of any of
the foregoing) of, and the terms of any license, permit, concession, grant or franchise issued by,
any Governmental Authority.

     “Lenders” means each of the lenders party to this Agreement, including each Eligible
Assignee that shall become a party to this Agreement pursuant to Section 9.6.

     “Lending Office” means, with respect to each Lender, the “Lending Office” of such
Lender (or an Affiliate of such Lender) designated for each Type of Advance in the Administrative
Questionnaire

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submitted by such Lender or such other office of such Lender (or an Affiliate of such Lender)
as such Lender may from time to time specify to the Administrative Agent and the Borrower as the
office by which its Advances of such Type are to be made and maintained.

     “Letter of Credit” means, individually, any letter of credit issued by any Issuing
Lender under the Facility which is subject to this Agreement, including the letters of credit
described on Schedule 1.1(c).

     “Letter of Credit Documents” means, with respect to any Letter of Credit, such Letter
of Credit and any agreements, documents, and instruments entered into in connection with or
relating to such Letter of Credit.

     “Letter of Credit Exposure” means, at any time, the Dollar Amount of the sum of
(a) the aggregate undrawn maximum face amount of each Letter of Credit at such time and (b) the
aggregate unpaid amount of all Reimbursement Obligations related to Letters of Credit at such time.

     “Letter of Credit Obligations” means the obligations, whether actual or contingent, of
the Borrower under this Agreement in connection with the Letters of Credit.

     “Leverage Ratio” means, as of any date of calculation, the ratio of the Borrower’s
Total Funded Consolidated Indebtedness outstanding on such date to its Total Consolidated
Capitalization outstanding on such date.

     “Lien” means any lien (statutory or otherwise), mortgage, pledge, hypothecation,
assignment, deposit arrangement, charge, deed of trust, security interest, encumbrance or other
type of preferential arrangement, priority or other security agreement of any kind or nature
whatsoever to secure or provide for the payment of any obligation of any Person, whether arising by
contract, operation of law or otherwise (including the interest of a vendor or lessor under any
conditional sale agreement, Capital Lease or other title retention agreement).

     “Majority Lenders” means, as of the date of determination, two or more Lenders holding
more than 50% of the sum of the unutilized aggregate Revolving Commitments plus the Outstandings
(with the aggregate amount of each Lender’s risk participation and funded participation in Letter
of Credit Obligations and in the Swingline Advances being deemed “held” by such Lender for purposes
of this definition).

     “Mandatory Cost Rate” means, with respect to any period, the percentage rate per annum
determined in accordance with Schedule 1.1(c).

     “Mandatory Revolving Borrowing” means a Revolving Borrowing comprised of Prime Rate
Advances or Eurocurrency Rate Advances made to repay a Swingline Advance as provided in Section
2.1(b) or to reimburse an Issuing Lender for unpaid Reimbursement Obligations as provided in
Section 2.13(d).

     “Material Adverse Effect” means a material adverse effect on (a) the business,
Property, condition (financial or otherwise), or results of operations of the Borrower and its
Subsidiaries taken as a whole, (b) the ability of the Borrower to perform its obligations under the
Credit Documents to which it is a party, or (c) the validity or enforceability of any of the Credit
Documents or the rights or remedies of the Administrative Agent or the Lenders thereunder.

     “Maturity Date” means April 21, 2013, as such date may be extended under Section 2.19.

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     “Maximum Rate” means, as to any particular Lender, the maximum nonusurious interest
rate permitted to such Lender under applicable Legal Requirements.

     “Merger” means the merger of Grant Prideco, Inc., a Delaware corporation with and into
NOV Sub, Inc., a Delaware corporation with NOV Sub, Inc. being the surviving entity, all pursuant
to the terms of the Merger Documents.

     “Merger Documents” means the Agreement and Plan of Merger dated as of December 16,
2007 among Grant Prideco, Inc., NOV Sub, Inc. and the Borrower and all other material documents,
agreements and instruments executed by any of the parties thereto and related thereto.

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

     “Multiemployer Plan” means a Plan maintained pursuant to a collective bargaining
agreement or any other arrangement to which the Borrower or any member of the Controlled Group is a
party to which more than one employer is obligated to make contributions.

     “Net Mark-to-Market Exposure” of a Person means, as of any date of determination, the
excess (if any) of all Unrealized Losses over all Unrealized Profits of such Person arising from
Hedging Transactions. Notwithstanding the foregoing, “Net Mark-to-Market Exposure” shall
be determined excluding recognized but unrealized gains and/or losses attributable to commodity,
foreign currency or interest rate derivative instruments determined under the provisions of FASB
133, as the same may be further amended, modified or clarified by the FASB.

     “Norwegian Kroner” or “NOK” means lawful money of the Kingdom of Norway.

     “Norwegian Swingline Advance” has the meaning set forth in Section 2.1(b).

     “Norwegian Swingline Lender” means DnB NOR Bank ASA as the swing line lender for the
Norwegian Swingline Advances, or any successor swing line lender hereunder.

     “Note” means a Revolving Note or a Swingline Note.

     “Notice of Borrowing” means a notice of borrowing in the form of the attached
Exhibit C and signed by a Responsible Officer of the Borrower or by an Authorized Agent on behalf
of the Borrower.

     “Notice of Conversion or Continuation” means a notice of conversion or continuation in
the form of the attached Exhibit D and signed by a Responsible Officer of the Borrower or by an
Authorized Agent on behalf of the Borrower.

     “Obligations” means all Advances, Reimbursement Obligations, and any other fees,
expenses, reimbursements, indemnities or other obligations payable by the Borrower to the
Administrative Agent, the Lenders, the Issuing Lenders, the Swingline Lenders or any other
indemnified party under the Credit Documents.

     “Operating Lease” of a Person means any lease of Property (other than a Capital Lease)
by such Person as lessee which has an original term (including any required renewals and any
renewals effective at the option of the lessor) of one year or more.

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     “Outstandings” means, as of the date of determination, the sum of (a) Dollar Amount of
the aggregate outstanding principal amount of the Revolving Advances and the Swingline Advances
plus (b) the Dollar Amount of the Letter of Credit Exposure.

     “Overnight Rate” means, for any day, (a) with respect to any amount denominated in
Dollars, the greater of (i) the Federal Funds Rate and (ii) an overnight rate determined by the
Administrative Agent, applicable Issuing Lender, or applicable Swingline Lender, as the case may
be, in accordance with banking industry rules on interbank compensation, and (b) with respect to
any amount denominated in a Foreign Currency, the rate of interest per annum at which overnight
deposits in such Foreign Currency, in an amount approximately equal to the amount with respect to
which such rate is being determined, would be offered for such day by a branch or Affiliate of the
Administrative Agent, applicable Issuing Lender or applicable Swingline Lender in the applicable
offshore interbank market for such currency to major banks in such interbank market.

     “Participating Member State” means each state so described in any EMU Legislation.

     “PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any
or all of its functions under ERISA.

     “Permitted Liens” means the Liens permitted to exist pursuant to Section 6.1.

     “Person” means an individual, partnership, corporation (including a business trust),
joint stock company, trust, unincorporated association, limited liability company, joint venture or
other entity, or a government or any political subdivision or agency thereof or any trustee,
receiver, custodian or similar official.

     “Plan” means an employee benefit plan (other than a Multiemployer Plan) maintained for
employees of the Borrower or any member of the Controlled Group and covered by Title IV of ERISA or
subject to the minimum funding standards under Section 412 of the Code.

     “Pounds Sterling” and/or “£” means lawful money of the United Kingdom of Great
Britain and Northern Ireland.

     “Pro Rata Share” means, as to each Lender (a) the ratio (expressed as a percentage) of
such Lender’s Revolving Commitment at such time to the aggregate Revolving Commitments at such
time, (b) if the Revolving Commitments have been terminated, the ratio (expressed as a percentage)
of the sum of such Lender’s aggregate outstanding Revolving Advances and participation interest in
the Letter of Credit Exposure and the Swingline Advances at such time to the aggregate outstanding
Revolving Advances, Swingline Advances, and Letter of Credit Exposure of all the Lenders at such
time, or (c) if the Revolving Commitments have been terminated, all Letter of Credit Obligations
have been paid in full, all Letters of Credit have been terminated or expired and all Advances have
been paid in full, the ratio (expressed as a percentage) that was most recently in effect.

     “Prime Rate” means at any time the rate of interest most recently announced by Wells
Fargo at its principal office in San Francisco, California as its prime rate, whether or not the
Borrower has notice thereof, with the understanding that the Prime Rate is one of Wells Fargo’s
base rates and serves as the basis upon which effective rates of interest are calculated for those
loans making reference thereto, and is evidenced by the recording thereof after its announcement in
such internal publication or publications as Wells Fargo may designate. Each change in the Prime
Rate shall be effective on the day the change is announced by Wells Fargo.

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     “Prime Rate Advance” means an Advance which bears interest as provided in Section
2.6(a). All Prime Rate Advances shall be denominated in Dollars.

     “Property” of any Person means any and all property (whether real, personal, or mixed,
tangible or intangible) or other assets owned, leased or operated by such Person.

     “Register” has the meaning set forth in paragraph (d) of Section 9.6.

     “Reimbursement Obligations” means all of the obligations of the Borrower set forth in
Section 2.13(d).

     “Reportable Event” means any of the events set forth in Section 4043(b) of ERISA and
the regulations issued under such section, with respect to a Plan.

     “Responsible Officer” means the Chief Executive Officer, the President, the Chief
Financial Officer, any Vice President, any Treasurer, any Assistant Treasurer, any Secretary, any
Assistant Secretary or Manager of any Person.

     “Restricted Payment” means (a) any direct or indirect payment (other than scheduled
payments), prepayment, redemption, defeasance, retirement, purchase of, or other acquisition of or
deposit of funds or Property for the payment (other than scheduled payments), prepayment,
redemption, defeasance, retirement, or purchase of Senior Notes, and (b) the making by any Person
of any dividends or other distributions (in cash, property, or otherwise) on, or payment for the
purchase, redemption or other acquisition or retirement of, any shares of any capital stock or
other ownership interests of such Person, other than dividends payable in such Person’s stock or
ownership interests.

     “Revolving Advance” means an advance made by a Lender to the Borrower pursuant to
Section 2.1(a).

     “Revolving Borrowing” means a borrowing consisting of simultaneous Revolving Advances
made by each Lender pursuant to Section 2.1(a) or Converted by each Lender to Revolving Advances of
a different Type pursuant to Section 2.2(b).

     “Revolving Commitment” means, with respect to any Lender, the amount set opposite such
Lender’s name on Schedule 1.1(a) as its Revolving Commitment, or if such Lender has entered into
any Assignment and Acceptance or such Lender is an Additional Lender, the amount set forth for such
Lender as its Revolving Commitment in the Register maintained by the Administrative Agent pursuant
to Section 9.6(d), as such amount may be reduced pursuant to Section 2.4 or increased pursuant to
Section 2.15 or 2.16.

     “Revolving Note” means a promissory note of a Borrower payable to the order of any
Lender, in substantially the form of the attached Exhibit E evidencing Indebtedness of such
Borrower to such Lender resulting from Revolving Advances owing to such Lender.

     “S&P” means Standard & Poor’s Ratings Service, a division of The McGraw-Hill
Companies, Inc., or any successor thereof which is a nationally recognized statistical rating
organization.

     “SEC” means the United States Securities and Exchange Commission.

     “Senior Notes” means any senior debt securities of the Borrower.

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     “Senior Note Documents” means any indenture, note or other agreement evidencing or
governing the Senior Notes, as such indenture, note or other agreement may be amended, supplemented
or otherwise modified as permitted hereby.

     “Subsidiary” of a Person means any corporation, association, partnership, limited
liability company, or other business entity of which more than 50% of the outstanding shares of
capital stock (or other equivalent interests) having by the terms thereof ordinary voting power
under ordinary circumstances to elect a majority of the board of directors or Persons performing
similar functions (or, if there are no such directors or Persons, having general voting power) of
such entity (irrespective of whether at the time capital stock (or other equivalent interests) of
any other class or classes of such entity shall or might have voting power upon the occurrence of
any contingency) is at the time directly or indirectly owned or controlled by such Person, by such
Person and one or more Subsidiaries of such Person or by one or more Subsidiaries of such Person.

     “Swingline Advance” means a US Swingline Advance, Canadian Swingline Advance, a UK
Swingline Advance or a Norwegian Swingline Advance.

     “Swingline Borrowing” means the making of a Swingline Advance by a Swingline Lender
under Section 2.1(b).

     “Swingline Due Date” means the 14th and the last day of each calendar
month.

     “Swingline Lender” means the US Swingline Lender, Canadian Swingline Lender, UK
Swingline Lender or the Norwegian Swingline Lender.

     “Swingline Rate” means, as to any Swingline Advance, the Adjusted Prime Rate or such
other rate per annum agreed to from time to time in writing between the Borrower and the applicable
Swingline Lender.

     “Swingline Note” means a promissory note of the Borrower payable to the order of the
applicable Swingline Lender in substantially the form of the attached Exhibit F, evidencing the
Indebtedness of the Borrower to such Swingline Lender from Swingline Advances owing to such
Swingline Lender.

     “Swingline Subfacilities” means the revolving credit facilities as provided by the
applicable Swingline Lenders, in either case, as provided under Section 2.1(b) as a subfacility of
the Facility.

     “TARGET Day” means any day on which the Trans-European Automated Real-time Gross
Settlement Express Transfer (TARGET) payment system or the TARGET2 payment system (or, if either of
such payment systems cease to be operative, such other payment system (if any) determined by the
Administrative Agent to be a suitable replacement) is open for the settlement of payments in Euro.

     “Termination Event” means (a) the occurrence of a Reportable Event with respect to a
Plan, as described in Section 4043 of ERISA and the regulations issued thereunder (other than a
Reportable Event not subject to the provision for 30-day notice to the PBGC under such
regulations), (b) the withdrawal of the Borrower or any of its Affiliates 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
giving of a notice of intent to terminate a Plan under Section 4041(c) of ERISA, (d) the
institution of proceedings to terminate a Plan by the PBGC, or (e) any other event or condition
which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of
a trustee to administer, any Plan.

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     “Total Consolidated Capitalization” means the sum of the Total Funded Consolidated
Indebtedness and Consolidated Net Worth.

     “Total Funded Consolidated Indebtedness” means at any time the aggregate Dollar Amount
of Indebtedness of the Borrower and its Subsidiaries which is (a) of the type described in clause
(a), (d), (e), (g) or (j) of the definition of “Indebtedness” or (b) of the type described in
clause (c) of the definition of “Indebtedness” to the extent that such lien secures or such
guaranty covers Indebtedness of the type described in clause (a), (d), (e), (g) or (j) of the
definition of “Indebtedness”.

     “Type” has the meaning set forth in Section 1.4.

     “UK Swingline Advance” has the meaning set forth in Section 2.1(b).

     “UK Swingline Lender” means Barclays Bank plc as the swing line lender for the UK
Swingline Advances, or any successor swing line lender hereunder.

     “Unrealized Losses” means, with respect to any Hedging Transaction, the fair market
value of the cost to such Person of replacing such Hedging Transaction as of the date of
determination (assuming such Hedging Transaction were to be terminated as of that date).

     “Unrealized Profits” means, with respect to any Hedging Transaction, the fair market
value of the gain to such Person of replacing such Hedging Transaction as of the date of
determination (assuming such Hedging Transaction were to be terminated as of that date).

     “US Swingline Advance” has the meaning set forth in Section 2.1(b).

     “US Swingline Lender” means Wells Fargo as the swing line lender for the US Swingline
Advances, or any successor swing line lender hereunder.

     “Wells Fargo” means Wells Fargo Bank, National Association.

     Section 1.2 Computation of Time Periods. In this Agreement in the computation of
periods of time from a specified date to a later specified date, the word “from” means “from and
including” and the words “to” and “until” each means “to but excluding”.

     Section 1.3 Accounting Terms; Changes in GAAP; Foreign Currency Limits.

          (a) All accounting terms not specifically defined in this Agreement shall be construed in
accordance with GAAP applied on a consistent basis with those applied in the preparation of the
Financial Statements.

          (b) Unless otherwise indicated, all financial statements of the Borrower, all calculations for
compliance with covenants in this Agreement, and all calculations of any amounts to be calculated
under the definitions in Section 1.1 shall be based upon the Consolidated accounts of the Borrower
and its Subsidiaries in accordance with GAAP.

          (c) If any changes in accounting principles after the Closing Date are required by GAAP or the
Financial Accounting Standards Board of the American Institute of Certified Public Accountants or
similar agencies results in a change in the method of calculation of, or affects the results of
such calculation of, any of the financial covenants, standards or terms found in this Agreement,
then the parties shall enter into and diligently pursue negotiations in order to amend such
financial covenants,

16

 

standards or terms so as to equitably reflect such change, with the desired result that the
criteria for evaluating the Borrower’s and its Consolidated Subsidiaries’ financial condition shall
be the same after such change as if such change had not been made.

          (d) Wherever in this Agreement in connection with a Revolving Borrowing, a Swingline
Borrowing, Conversion, continuation or prepayment of a Eurocurrency Rate Advance, or the issuance,
amendment or extension of a Letter of Credit, an amount (such as a required minimum or multiple
amount) is expressed in Dollars, but such Borrowing, Eurocurrency Rate Advance, or Letter of Credit
is denominated in a Foreign Currency, such amount shall be the equivalent in a Foreign Currency of
such amount determined at the Exchange Rate for the purchase of such Foreign Currency with Dollars,
as determined by the Administrative Agent on the Computation Date applicable to such amount
(rounded to the nearest unit of such Foreign Currency, with 0.5 of a unit being rounded upward).

     Section 1.4 Types of Advances. Advances are distinguished by “Type”. The “Type” of
an Advance refers to the determination whether such Advance is a Eurocurrency Rate Advance, Prime
Rate Advance, a Canadian Swingline Advance, a Norwegian Swingline Advance, UK Swingline Advance, a
US Swingline Advance, each of which constitutes a Type.

     Section 1.5 Change of Currency.

     (a) Each obligation of the Borrower to make a payment denominated in the national currency
unit of any member state of the European Union that adopts the Euro as its lawful currency after
the date hereof shall be redenominated into Euro at the time of such adoption (in accordance with
the EMU Legislation). If, in relation to the currency of any such member state, the basis of
accrual of interest expressed in this Agreement in respect of that currency shall be inconsistent
with any convention or practice in the London interbank market for the basis of accrual of interest
in respect of the Euro, such expressed basis shall be replaced by such convention or practice with
effect from the date on which such member state adopts the Euro as its lawful currency.

     (b) Each provision of this Agreement shall be subject to such reasonable changes of
construction as the Administrative Agent, upon consultation with the Borrower, may from time to
time specify to be appropriate to reflect the adoption of the Euro by any member state of the
European Union and any relevant market conventions or practices relating to the Euro.

     (c) Each provision of this Agreement also shall be subject to such reasonable changes of
construction as the Administrative Agent, upon consultation with the Borrower, may from time to
time specify to be appropriate to reflect a change in currency of any other country and any
relevant market conventions or practices relating to the change in currency.

     Section 1.6 Miscellaneous. 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.” Article, Section, Schedule and Exhibit
references are to Articles and Sections of and Schedules and Exhibits to this Agreement, unless
otherwise specified.

ARTICLE II

THE ADVANCES AND THE LETTERS OF CREDIT

     Section 2.1 The Advances.

          (a) Revolving Advances. Each Lender severally agrees, on the terms and conditions set
forth in this Agreement, to make Revolving Advances to the Borrower from time to time on any

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Business Day prior to the Maturity Date in an aggregate amount not to exceed at any time
outstanding an amount equal to such Lender’s Revolving Commitment less the sum of the Dollar Amount
of (i) the aggregate principal amount of Revolving Advances owing to such Lender at such time, (ii)
such Lender’s Pro Rata Share of the aggregate of the Letter of Credit Exposure at such time, and
(iii) such Lender’s Pro Rata Share of the Swingline Advances; provided that, (A) before and
after giving effect to such Borrowing, the aggregate Dollar Amount of all outstanding Revolving
Advances, Swingline Advances and Letter of Credit Exposure at any time may not exceed the aggregate
Revolving Commitments at such time, (B) such Revolving Advances may be denominated and funded in
any Agreed Currency and (C) before and after giving effect to such Borrowing, the aggregate Dollar
Amount of all outstanding Revolving Advances, Swingline Advances and Letter of Credit Exposure
which are denominated in Norwegian Kroner may not exceed $500,000,000 at any time. Within the
limits of each Lender’s Revolving Commitment, the Borrower may from time to time prepay pursuant to
Section 2.7 and reborrow under this Section 2.1(a).

          (b) Swingline Advances.

     (i) On the terms and conditions set forth in this Agreement, (A) the US Swingline
Lender agrees to, from time-to-time on any Business Day during the period from the date of
this Agreement until the Maturity Date, make advances (“US Swingline Advances”) to
the Borrower in an aggregate principal amount not to exceed $200,000,000 outstanding at any
time and denominated in US Dollars; (B) the Canadian Swingline Lender agrees to, from
time-to-time on any Business Day during the period from the date of this Agreement until the
Maturity Date, make advances (“Canadian Swingline Advances”) to the Borrower in an
aggregate principal amount not to exceed $100,000,000 outstanding at any time and
denominated in Canadian Dollars or US Dollars; (C) the Norwegian Swingline Lender agrees to,
from time-to-time on any Business Day during the period from the date of this Agreement
until the Maturity Date, make advances (“Norwegian Swingline Advances”) to the
Borrower in an aggregate principal amount not to exceed $100,000,000 outstanding at any time
and denominated in Norwegian Kroner or US Dollars; provided that, before and after giving
effect to such Borrowing, the aggregate Dollar Amount of all outstanding Revolving Advances,
Swingline Advances and Letter of Credit Exposure which are denominated in Norwegian Kroner
may not exceed $500,000,000 at any time; and (D) the UK Swingline Lender agrees to, from
time-to-time on any Business Day during the period from the date of this Agreement until the
Maturity Date, make advances (“UK Swingline Advances”) to the Borrower in an
aggregate principal amount not to exceed $100,000,000 outstanding at any time and
denominated in Pounds Sterling or US Dollars;

provided that, (x) with respect to all Swingline Subfacilities, before and after
giving effect to any such Borrowing, the aggregate Dollar Amount of the sum of all
outstanding Revolving Advances, Swingline Advances and the Letter of Credit Exposure may not
exceed the aggregate Revolving Commitments at such time; (y) with respect to all Swingline
Subfacilities, no Swingline Advance shall be made if the statements set forth in Section 3.2
are not true on the date of the making of such Swingline Advance, it being agreed by the
Borrower that the giving of the applicable Notice of Borrowing and the acceptance by the
Borrower of the proceeds of such Swingline Advance shall constitute a representation and
warranty by the Borrower that on the date of such Swingline Advance such statements are
true; and (z) with respect to any Foreign Swingline Advance, whether denominated in US
Dollars or any Foreign Currency, such Foreign Swingline Advance shall be in a minimum amount
of $500,000. Subject to the other provisions hereof, the Borrower may from time-to-time
borrow, prepay (in whole or in part) and reborrow Swingline Advances. Immediately upon the
making of a Swingline Advance, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the applicable Swingline Lender
 a risk participation in such Swingline Advance in an amount equal to its Pro Rata Share of
such Swingline Advance.

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     (ii) Except as provided in the following clause (iv) below, each request for a US
Swingline Advance shall be made pursuant to telephone notice to the US Swingline Lender
given no later than 1:00 p.m. (Houston, Texas time) on the date of the proposed Swingline
Advance, promptly confirmed by a completed and executed Notice of Borrowing telecopied to
the Administrative Agent. The US Swingline Lender will promptly (but in any event prior to
3:00 p.m. (Houston, Texas time) on the date of such proposed US Swingline Advance make such
US Swingline Advance available to the Borrower at the Borrower’s account with the
Administrative Agent or such other accounts as may be designated by the Borrower.

     (iii) Except as provided in the following clause (iv) below, each request for a Foreign
Swingline Advance shall be made pursuant to telephone notice to the applicable Foreign
Swingline Lender, together with a written notice to the Administrative Agent, given no later
than 10:00 a.m. in the Applicable Time specified by the applicable Foreign Swingline Lender,
promptly confirmed by a completed and executed Notice of Borrowing telecopied to the
applicable Foreign Swingline Lender and the Administrative Agent. If, on the date such
request is made, the Dollar Amount of the sum of the outstanding Revolving Advances and the
Letter of Credit Exposure is equal to or less than 50% of the aggregate Revolving
Commitments, then subject to the terms and conditions hereof, the applicable Foreign
Swingline Lender will, not later than 2:00 p.m. (in the Applicable Time) on the borrowing
date specified for such Swingline Advance, make the amount of such Swingline Advance
available at the Borrower’s account with the Administrative Agent or such other accounts as
may be designated by the Borrower. However, if on the date such request is made, the Dollar
Amount of the sum of the outstanding Revolving Advances and the Letter of Credit Exposure is
greater than 50% of the aggregate Revolving Commitments, then (A) promptly after receipt by
the applicable Foreign Swingline Lender of any request for a Foreign Swingline Advance, the
applicable Foreign Swingline Lender will confirm with the Administrative Agent that the
Administrative Agent has also received such request and, if not, the applicable Foreign
Swingline Lender will notify the Administrative Agent of the contents thereof, and (B)
unless the applicable Foreign Swingline Lender has received notice in writing from the
Administrative Agent (including at the request of any Lender) prior to 2:00 p.m. (in the
Applicable Time) on the date of the proposed Swingline Advance directing the applicable
Foreign Swingline Lender not to make such Swingline Advance as a result of the limitations
set forth in the first proviso of Section 2.1(b) above then, subject to the terms and
conditions hereof, the applicable foreign Swingline Lender will, not later than 3:00 p.m.
(in the Applicable Time) on the borrowing date specified for such Swingline Advance, make
the amount of such Swingline Advance available at the Borrower’s account with the
Administrative Agent or such other accounts as may be designated by the Borrower.

     (iv) With respect to Swingline Advances denominated in Dollars, each Swingline Lender
at any time in its sole and absolute discretion may request, on behalf of the Borrower
(which hereby irrevocably authorizes each Swingline Lender to so request on its behalf),
that each Lender make a Prime Rate Advance in an amount equal to such Lender’s Pro Rata
Share of such Swingline Advances in order to refinance such Swingline Advances. With
respect to Foreign Swingline Advances, each Swingline Lender in its sole and absolute
discretion may request, on behalf of the Borrower (which hereby irrevocably authorizes each
Swingline Lender to so request on its behalf), that each Lender make a Eurocurrency Rate
Advance in the same Foreign Currency, in an amount equal to such Lender’s Pro Rata Share of
such Swingline Advances and with Interest Period of one month. The applicable Swingline
Lender shall give the

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Administrative Agent notice of such Mandatory Revolving Borrowing (A) by 12:00 p.m.
(Houston, Texas time) on the date before the proposed Mandatory Revolving Borrowing is to be
made in the case of a Prime Rate Advance and (B) by 12:00 p.m. (Houston, Texas time) on the
fourth Business Day before the date of such proposed Mandatory Revolving Borrowing in the
case of a Eurocurrency Rate Advance denominated in a Foreign Currency, which notice the
Administrative Agent will promptly forward to each Lender. Each Lender shall make its
Revolving Advance available to the Administrative Agent for the account of the applicable
Swingline Lender in immediately available funds by 2:00 p.m. (Houston, Texas time) on the
date requested, and the Borrower hereby irrevocably instructs the applicable Swingline
Lender to apply the proceeds of such Mandatory Revolving Borrowing to the payment of the
outstanding Swingline Advances.

     (v) If for any reason any Swingline Advance cannot be refinanced by a Revolving
Borrowing in accordance with clause (iv) above, the request for the Revolving Advances
submitted by the applicable Swingline Lender as set forth therein shall be deemed to be a
request by such Swingline Lender that each of the Lenders fund its risk participation in the
relevant Swingline Advances and each Lender’s payment to the Administrative Agent for the
account of the applicable Swingline Lender pursuant to clause (iv) above shall be deemed
payment in respect of such participation.

     (vi) If any Lender fails to make available to the Administrative Agent for the account
of the applicable Swingline Lender any amount required to be paid by such Lender pursuant to
the foregoing provisions of this Section 2.1(b) by the time specified in this Section
2.1(b), such Swingline Lender shall be entitled to recover from such Lender (acting through
the Administrative Agent), on demand, such amount with interest thereon for the period from
the date such payment is required to the date on which such payment is immediately available
to such Swingline Lender at a rate per annum equal to the applicable Overnight Rate from
time to time in effect. A certificate of such Swingline Lender submitted to any Lender
(through the Administrative Agent) with respect to any amounts owing under this clause (vi)
shall be conclusive absent manifest error.

     (vii) Each Lender’s obligation to make the Revolving Advances or to purchase and fund
risk participations in Swingline Advances pursuant to this Section 2.1(b) shall be absolute
and unconditional and shall not be affected by any circumstance, including (A) any setoff,
counterclaim, recoupment, defense or other right which such Lender may have against any
Swingline Lender, the Borrower or any other Person for any reason whatsoever, (B) the
occurrence or continuance of a Default, (C) whether or not the conditions precedent in
Section 3.2 have been satisfied, (D) termination of the Revolving Commitments or
acceleration of the Advances, and (E) any other occurrence, event or condition, whether or
not similar to any of the foregoing. No such funding of risk participations shall relieve
or otherwise impair the obligation of the Borrower to repay Swingline Advances, together
with interest as provided herein.

     (viii) At any time after any Lender has purchased and funded a risk participation in a
Swingline Advance, if the applicable Swingline Lender receives any payment on account of
such Swingline Advance, such Swingline Lender will distribute to such Lender its Pro Rata
Share of such payment (appropriately adjusted, in the case of interest payments, to reflect
the period of time during which such Lender’s risk participation was funded) in the same
funds as those received by such Swingline Lender.

     (ix) Each Swingline Lender shall be responsible for invoicing the Borrower for interest
on the Swingline Advances made by such Swingline Lender. Until a Lender funds its

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Prime Rate Advance, Eurocurrency Rate Advance or risk participation pursuant to this
Section 2.1(b) to refinance such Lender’s Pro Rata Share of any Swingline Advance, interest
in respect of such Pro Rata Share shall be solely for the account of the applicable
Swingline Lender.

     (x) The Borrower shall make all payments of principal and interest in respect of any
Swingline Advances directly to the applicable Swingline Lender.

     (xi) For purposes of calculating outstandings under this Agreement (a) on each March
31, June 30, September 30 and December 31, commencing June 30, 2008, and (b) from time to
time as the Administrative Agent may request, each Swingline Lender shall provide the
Administrative Agent with a daily log, in form and detail reasonably acceptable to the
Administrative Agent, setting forth the outstanding Dollar Amount of the Swingline Advances
made by such Swingline Lender using the Exchange Rate as most recently determined by the
Administrative Agent.

          Section 2.2 Method of Borrowing.

          (a) Notice. Each Revolving Borrowing shall be made pursuant to a Notice of Borrowing
and given:

     (i) by the Borrower to the Administrative Agent not later than 12:00 p.m. (Houston,
Texas time) on the fourth Business Day before the date of the proposed Borrowing in the case
of a Eurocurrency Rate Advance denominated in a Foreign Currency,

     (ii) by the Borrower to the Administrative Agent not later than 12:00 p.m. (Houston,
Texas time) on the third Business Day before the date of the proposed Borrowing in the case
of a Eurocurrency Rate Advance denominated in Dollars, and

     (iii) by the Borrower to the Administrative Agent not later than 12:00 p.m. (Houston,
Texas time) one Business Day before the date of the proposed Borrowing in the case of a
Prime Rate Advance.

The Administrative Agent shall give each Lender prompt notice on the day of receipt of timely
Notice of Borrowing of such proposed Borrowing by telecopier. Each Notice of Borrowing shall be by
telephone or telecopier, and if by telephone, confirmed promptly in writing (which confirmation may
be provided by telecopier or with a “PDF” file delivered in an e-mail with a return acknowledgment
requested), specifying the (i) requested date of such Borrowing (which shall be a Business Day),
(ii) requested Type of Advances comprising such Borrowing, (iii) aggregate amount of such
Borrowing, (iv) if such Borrowing is to be comprised of Eurocurrency Rate Advances, the Interest
Period for each such Advance, and (v) the Designated Currency of such Borrowing. In the case of a
proposed Borrowing comprised of Eurocurrency Rate Advances, the Administrative Agent shall promptly
notify each Lender of the applicable interest rate under Section 2.6(b). Each Lender shall, before
3:00 p.m. (Houston, Texas time) on the date of the proposed Borrowing, make available for the
account of its Lending Office to the Administrative Agent at its address referred to in
Section 9.2, or such other location as the Administrative Agent may specify by notice to the
Lenders, in same day funds, such Lender’s Pro Rata Share of such Borrowing. Promptly upon the
Administrative Agent’s receipt of such funds (but in any event not later than 4:00 p.m. (Houston,
Texas time) on the date of the proposed Borrowing) and provided that the applicable conditions set
forth in Article III have been satisfied, the Administrative Agent will make such funds available
to the Borrower at its account with the Administrative Agent.

21

 

          (b) Conversions and Continuations. In order to elect to Convert or continue Advances
comprising part of the same Revolving Borrowing under this Section, the Borrower shall deliver an
irrevocable Notice of Conversion or Continuation to the Administrative Agent at the Administrative
Agent’s office no later than 12:00 p.m. (Houston, Texas time) (i) at least one Business Day in
advance of the proposed conversion date in the case of a Conversion of such Advances to Prime Rate
Advances, (ii) at least three Business Days in advance of the proposed Conversion or continuation
date in the case of a Conversion to, or a continuation of, Eurocurrency Rate Advances denominated
in Dollars; and (iii) at least four Business Days in advance of the proposed Conversion or
continuation date in the case of a Conversion to, or a continuation of, Eurocurrency Rate Advances
denominated in Foreign Currencies. Each such Notice of Conversion or Continuation shall be by
telephone or telecopier, and if by telephone, confirmed promptly in writing (which confirmation may
be provided by telecopier or with a “PDF” file delivered in an e-mail with a return acknowledgment
requested), specifying (A) the requested Conversion or continuation date (which shall be a Business
Day), (B) the Borrowing amount and Type of the Advances to be Converted or continued, (C) whether a
Conversion or continuation is requested, and if a Conversion, into what Type of Advances, and
(D) in the case of a Conversion to, or a continuation of, Eurocurrency Rate Advances, the requested
Interest Period. Promptly after receipt of a Notice of Conversion or Continuation under this
paragraph, the Administrative Agent shall provide each Lender with a copy thereof and, in the case
of a Conversion to or a continuation of Eurocurrency Rate Advances, notify each Lender of the
applicable interest rate under Section 2.6(b). For purposes other than the conditions set forth in
Section 3.2, the portion of Revolving Advances comprising part of the same Revolving Borrowing that
are Converted to Revolving Advances of another Type shall constitute a new Revolving Borrowing.

          (c) Certain Limitations. Notwithstanding anything herein to the contrary:

     (i) each Borrowing (other than a Borrowing of Swingline Advances) shall (A) in the case
of Eurocurrency Rate Advances, be in an aggregate amount not less than $3,000,000 and
greater multiples of $1,000,000 in excess thereof, (B) in the case of Prime Rate Advances,
be in an aggregate amount not less than $500,000 and greater multiples of $100,000 in excess
thereof, and (C) consist of Advances of the same Type made on the same day by the Lenders
according to their Pro Rata Share;

     (ii) at no time shall there be more than eight Interest Periods applicable to
outstanding Eurocurrency Rate Advances;

     (iii) no single Borrowing consisting of Eurocurrency Rate Advances may include Advances
in different currencies;

     (iv) the Borrower may not select Eurocurrency Rate Advances for any Borrowing to be
made, Converted or continued if (A) the aggregate Dollar Amount of such Borrowing is less
than $3,000,000 or (B) a Default or Event of Default has occurred and is continuing;

     (v) (A) if any Lender shall, at any time prior to the making of any requested Borrowing
comprised of Eurocurrency Rate Advances, notify the Administrative Agent that the
introduction of or any change in or in the interpretation of any Legal Requirement makes it
unlawful, or that any central bank or other Governmental Authority asserts that it is
unlawful, for such Lender or its Lending Office to perform its obligations under this
Agreement to make Eurocurrency Rate Advances or to fund or maintain Eurocurrency Rate
Advances, or any Governmental Authority has imposed material restrictions on the authority
of such Lender to purchase or sell, or take deposits of, Dollars or any Foreign Currency in
the applicable interbank

22

 

market, then (1) if the requested Borrowing was of Revolving Advances denominated in
Dollars, such Lender’s Pro Rata Share of such Borrowing shall be made as a Prime Rate
Advance of such Lender, (2) in any event, such Prime Rate Advance shall be considered part
of the same Borrowing and interest on such Prime Rate Advance shall be due and payable at
the same time that interest on the Eurocurrency Rate Advances comprising the remainder of
such Borrowing shall be due and payable, and (3) any obligation of such Lender to make,
continue, or Convert to, Eurocurrency Rate Advances in the affected currency or currencies,
including in connection with such requested Borrowing, shall be suspended until such Lender
notifies the Administrative Agent and the Borrower that the circumstances giving rise to
such determination no longer exist; and (B) such Lender agrees to use commercially
reasonable efforts (consistent with its internal policies and legal and regulatory
restrictions) to designate a different Lending Office if the making of such designation
would avoid the effect of this paragraph and would not, in the reasonable judgment of such
Lender, be otherwise disadvantageous to such Lender;

     (vi) if the Administrative Agent is unable to determine the Eurocurrency Rate for
Eurocurrency Rate Advances comprising any requested Revolving Borrowing, the right of the
Borrower to select Eurocurrency Rate Advances in the affected currency or currencies for
such Borrowing or for any subsequent Borrowing shall be suspended until the Administrative
Agent shall notify the Borrower and the Lenders that the circumstances causing such
suspension no longer exist, and upon receipt by the Borrower of the notice of such
suspension, the Borrower may revoke the pending request or, failing that, each Revolving
Advance comprising such Borrowing shall be made as a Prime Rate Advance in the Dollar Amount
of the originally requested Advance;

     (vii) if the Majority Lenders shall, at least one Business Day before the date of any
requested Borrowing, notify the Administrative Agent that (A) the Eurocurrency Rate for
Eurocurrency Rate Advances comprising such Borrowing will not adequately reflect the cost to
such Lenders of making or funding their respective Eurocurrency Rate Advances, or (B)
deposits are not being offered to banks in the applicable offshore interbank market for such
currency for the applicable amount and Interest Period of such Eurocurrency Rate Advance,
the right of the Borrower to select Eurocurrency Rate Advances in the affected currency or
currencies for such Borrowing or for any subsequent Revolving Borrowing shall be suspended
until the Administrative Agent shall notify the Borrower and the Lenders that the
circumstances causing such suspension no longer exist, and upon receipt by the Borrower of
the notice of such suspension, the Borrower may revoke the pending request or, failing that,
each Advance comprising such Borrowing shall be made as a Prime Rate Advance in the Dollar
Amount of the originally requested Advance;

     (viii) if any Lender shall, at any time prior to the making of any requested Borrowing
comprised of Eurocurrency Rate Advances denominated in a Foreign Currency, notify the
Administrative Agent that, as a result of internal banking policy limitations on fundings in
such Foreign Currency, such Lender can not fund all or any portion of its Pro Rata Share of
such Borrowing, then (A) such portion shall be made as a Prime Rate Advance of such Lender,
and (B) in any event, such Prime Rate Advance shall be considered part of the same Borrowing
and interest on such Prime Rate Advance shall be due and payable at the same time that
interest on the Eurocurrency Rate Advances comprising the remainder of such Borrowing shall
be due and payable;

     (ix) if the Borrower shall fail to select the duration or continuation of any Interest
Period for any Eurocurrency Rate Advance in accordance with the provisions contained in the
definition of “Interest Period” in Section 1.1 and paragraph (a) or (b) above, the

23

 

Administrative Agent will forthwith so notify the Borrower and the Lenders and (A) if
denominated in Dollars, such affected Advances will be made available to the Borrower on the
date of such Borrowing as Prime Rate Advances or, if such affected Advances are existing
Advances, will be Converted into Prime Rate Advances or at the end of Interest Period then
in effect, and (B) if denominated in a Foreign Currency, the Borrower shall be deemed to
have specified an Interest Period of one month for such affected Advances or, if such
affected Advances are existing Advances, such affected Advances will be continued as a
Eurocurrency Rate Advance in the original Designated Currency with an Interest Period of one
month;

     (x) if the Borrower shall fail to specify a currency for any Eurocurrency Rate
Advances, then the Eurocurrency Rate Advances as requested shall be made in Dollars;

     (xi) Revolving Advances may only be Converted or continued as Revolving Advances;

     (xii) Swingline Advances may not be Converted or continued; and

     (xiii) no Revolving Advance may be Converted or continued as a Revolving Advance in a
different currency, but instead must be prepaid in the original Designated Currency of such
Revolving Advance and reborrowed in such new Designated Currency.

          (d) Notices Irrevocable. Each Notice of Borrowing and Notice of Conversion or
Continuation shall be irrevocable and binding on the Borrower.

          (e) Administrative Agent Reliance. Unless the Administrative Agent shall have
received notice from a Lender before the date of any Revolving Borrowing or Mandatory Revolving
Borrowing that such Lender will not make available to the Administrative Agent such Lender’s Pro
Rata Share of such Borrowing, the Administrative Agent may assume that such Lender has made its Pro
Rata Share of such Borrowing available to the Administrative Agent on the date of such Borrowing in
accordance with paragraph (a) of this Section 2.2 and the Administrative Agent may, in reliance
upon such assumption, make available to the Borrower on such date a corresponding amount. If and
to the extent that such Lender shall not have so made its Pro Rata Share of such Borrowing
available to the Administrative Agent, such Lender and the Borrower severally agree to immediately
repay to the Administrative Agent on demand such corresponding amount, together with interest on
such amount, for each day from the date such amount is made available to the Borrower until the
date such amount is repaid to the Administrative Agent, at (i) in the case of the Borrower, the
interest rate applicable on such day to Advances comprising such Borrowing and (ii) in the case of
such Lender, the Overnight Rate for such day. If such Lender shall repay to the Administrative
Agent such corresponding amount and interest as provided above, such corresponding amount so repaid
shall constitute such Lender’s Advance as part of such Borrowing for purposes of this Agreement
even though not made on the same day as the other Advances comprising such Borrowing.

          (f) Lender Obligations Several. The failure of any Lender to make the Advance to be
made by it as part of any Borrowing shall not relieve any other Lender of its obligation, if any,
to make its Advance on the date of such Borrowing. No Lender shall be responsible for the failure
of any other Lender to make the Advance to be made by such other Lender on the date of any
Borrowing.

          (g) Evidence of Obligations.

     (i) The Advances made by each Lender shall be evidenced by one or more accounts or
records maintained by such Lender and by the Administrative Agent in the ordinary

24

 

course of business. The accounts or records maintained by Administrative Agent and the
Lenders shall be conclusive absent manifest error of the amount of the Advances made by such
Lenders to the Borrower and the interest and payments thereon. Any failure to so record or
any error in doing so shall not, however, limit or otherwise affect the obligation of the
Borrower hereunder to pay any amount owing with respect to the Obligations. In the event of
any conflict between the accounts and records maintained by any Lender and the accounts and
records of the Administrative Agent in respect of such matters, the accounts and records of
the Administrative Agent shall control in the absence of manifest error. Upon the request
of any Lender to the Borrower made through the Administrative Agent, the Borrower shall
execute and deliver to such Lender (through the Administrative Agent) the applicable Note or
Notes which shall evidence such Lender’s Advances to the Borrower in addition to such
accounts or records. Each Lender may attach schedules to such Notes and endorse thereon the
date, Type (if applicable), amount, currency and maturity of its Advances and payments with
respect thereto.

     (ii) In addition to the accounts and records referred to in subsection (i) above, each
Lender and the Administrative Agent shall maintain in accordance with its usual practice
accounts or records evidencing the purchases and sales by such Lender of participations in
Letters of Credit and Swingline Advances. In the event of any conflict between the accounts
and records maintained by the Administrative Agent and the accounts and records of any
Lender in respect of such matters, the accounts and records of the Administrative Agent
shall control in the absence of manifest error.

          Section 2.3 Fees.

          (a) Facility Fees. The Borrower agrees to pay to the Administrative Agent for the
account of each Lender, a daily facility fee (the “Facility Fee”) on the amount of such Lender’s
Revolving Commitment at a per annum rate equal to the Applicable Margin for facility fees for the
period from the Closing Date until the Maturity Date, such fees due and payable quarterly in
arrears on the tenth (10th) day after the end of each March, June, September and
December, commencing June 30, 2008, and on the Maturity Date.

          (b) Utilization Fees. Borrower agrees to pay to the Administrative Agent for the
account of each Lender a daily utilization fee (the “Utilization Fee”) on the Dollar Amount
of the sum of such Lender’s outstanding Revolving Advances and Pro Rata Share of the Letter of
Credit Exposure at a per annum rate equal to the Applicable Margin for Utilization Fees, from the
Closing Date until the Maturity Date, such fees are (i) calculated quarterly in arrears for the
period ending on the last day of each March, June, September and December, commencing June 30, 2008
and due and payable on the immediately following 10th Business Day, and (ii) calculated
in arrears and ending on, and due and payable on, the Maturity Date; provided that the
Utilization Fee shall be payable only in respect of each day that the Dollar Amount of the Combined
Aggregate Exposure exceeds 50% of the Combined Aggregate Commitments. For purposes of calculating
such Utilization Fee, outstandings for Eurocurrency Rate Advances denominated in Foreign Currencies
and Letter of Credit Exposure for Letters of Credit denominated in Foreign Currencies shall be
converted to their Dollar Amounts on each date that such Utilization Fee is due hereunder using the
then effective Exchange Rate.

          (c) Letter of Credit Fees. The Borrower agrees to pay to the Administrative Agent for
the pro rata benefit of the Lenders letter of credit fees in respect of all Letters of Credit
outstanding at a rate per annum equal to the Applicable Margin for Eurocurrency Rate Advances
calculated on the maximum amount available from time to time to be drawn under such outstanding
Letters of Credit. All such letter of credit fees shall be (i) calculated quarterly in arrears for
the period ending on the last day of each March, June, September and December, commencing June 30,
2008 and due and payable on the

25

 

immediately following 10th Business Day, and (ii) calculated in arrears and ending
on, and due and payable on, the Maturity Date. In addition, the Borrower agrees to pay to each
Issuing Lender for its own account fronting fees in respect of all Letters of Credit outstanding
and issued by such Issuing Lender equal to the greater of (A) one-eighth percent (1/8%) per annum
of the maximum amount available from time to time to be drawn under such outstanding Letters of
Credit and (B) $500, payable at issuance and on the earlier of each annual anniversary thereafter
or the Maturity Date. The Borrower shall also pay to each Issuing Lender for its own account such
documentary, processing and other charges in connection with the issuance, amendment, transfer,
modification of and draws under Letters of Credit assessed or incurred by such Issuing Lender from
time to time. For purposes of calculating the letter of credit fees, fronting fees and other fees
under this Section 2.3(c), the face amount of each Letter of Credit made in a Foreign Currency
shall be at any time the Dollar Amount of such Letter of Credit as determined on the most recent
Computation Date with respect to such Letter of Credit.

          (d) Administrative Agent Fees. The Borrower agrees to pay when due to the
Administrative Agent for its benefit the fees set forth in the Agent’s Fee Letter.

     Section 2.4 Reduction of Commitments. The Borrower shall have the right, upon at
least three Business Days’ irrevocable notice to the Administrative Agent and the Lenders, to
terminate in whole or reduce ratably in part the unused portion of the Revolving Commitments;
provided that, each partial reduction shall be in the aggregate amount of $3,000,000 or an
integral multiple of $1,000,000 in excess thereof. Any reduction or termination of the Revolving
Commitments pursuant to this Section 2.4 shall be permanent, with no obligation of the Lenders to
reinstate such Revolving Commitments and the commitment fees provided for in Section 2.3(a) shall
thereafter be computed on the basis of the Revolving Commitments, as so reduced.

     Section 2.5 Repayment of Advances.

          (a) Revolving Advances. The Borrower shall repay the outstanding principal amount of
each Revolving Advance on the Maturity Date and, for each Mandatory Revolving Borrowing made on or
after the Maturity Date, on demand, and in any event, in the Designated Currency in which each such
Advance was funded.

          (b) Swingline Advances. The Borrower shall repay the outstanding principal amount of
each Swingline Advance on the earlier of (i) the Swingline Due Date immediately following the date
such Swingline Advance is made by the applicable Swingline Lender and (ii) the Maturity Date.

     Section 2.6 Interest. The Borrower shall pay interest on the unpaid principal amount
of each Advance from the date of such Advance until such principal amount shall be paid in full, at
the following rates per annum:

          (a) Prime Rate Advances. If such Advance is a Prime Rate Advance, a rate per annum
equal at all times to the lesser of (i) the Adjusted Prime Rate in effect from time to time
plus the Applicable Margin and (ii) the Maximum Rate, payable in arrears on the last
Business Day of each calendar quarter, commencing with the calendar quarter ending June 30, 2008,
and on the date such Prime Rate Advance shall be paid in full, provided that if any payment
of principal on any Advance is not made when due, such Advances shall bear interest from the date
such payment was due until such Advances are paid in full, payable on demand, at a rate per annum
equal at all times to the lesser of (A) the rate required to be paid on such Advance immediately
prior to the date on which such amount becomes due plus two percent (2%) and (B) the
Maximum Rate.

26

 

          (b) Eurocurrency Rate Advances. If such Advance is a Eurocurrency Rate Advance,
during the Interest Period for such Advance, a rate per annum equal at all times to the lesser of
(i) the Eurocurrency Rate for such Interest Period plus the Applicable Margin plus
(in the case of a Eurocurrency Rate Advance of any Lender which is lent from a Lending Office in
the United Kingdom or a Participating Member State) the Mandatory Cost Rate and (ii) the Maximum
Rate, payable in arrears on the last day of such Interest Period (provided that for Eurocurrency
Rate Advance with six month Interest Periods, accrued but unpaid interest shall also be due on the
day three months from the first day of such Interest Period), and on the date such Eurocurrency
Rate Advance shall be paid in full; provided that if any payment of principal on any
Advance is not made when due, such Advances shall bear interest from the date such payment was due
until such Advances are paid in full, payable on demand, at a rate per annum equal at all times to
the lesser of (A) the greater of (1) the Adjusted Prime Rate in effect from time to time
plus two percent (2%) and (2) the rate required to be paid on such Advance immediately
prior to the date on which such amount became due (including the Applicable Margin and any
Mandatory Cost Rate) plus two percent (2%) and (B) the Maximum Rate.

          (c) Swingline Advances. If such Advance is a Swingline Advance, a rate per annum
equal at all times to the lesser of (i) the Swingline Rate for such Swingline Advance and (ii) the
Maximum Rate, payable quarterly in arrears on the last Business Day of each calendar quarter,
commencing with the calendar quarter ending June 30, 2008, and on the Maturity Date;
provided that if any payment of principal on any Advance is not made when due, such
Advances shall bear interest from the date such payment was due until such Advances are paid in
full, at a rate per annum equal at all times to the lesser of (A) the rate required to be paid on
such Advance immediately prior to the date on which such amount becomes due plus two
percent (2%) and (B) the Maximum Rate.

          (d) Usury Recapture. As to each Lender, in the event the rate of interest chargeable
under this Agreement or the Notes at any time is greater than the Maximum Rate, the unpaid
principal amount of Obligations owing to such Lender shall bear interest at the Maximum Rate until
the total amount of interest paid or accrued on such Obligations equals the amount of interest
which would have been paid or accrued on such Obligations if the stated rates of interest set forth
in this Agreement had at all times been in effect. In the event, upon payment in full of such
Obligations, the total amount of interest paid or accrued under the terms of this Agreement and the
Notes as to any Lender is less than the total amount of interest which would have been paid or
accrued if the rates of interest set forth in this Agreement had, at all times, been in effect,
then the Borrower shall, to the extent permitted by applicable Legal Requirements, pay the
Administrative Agent for the account of such Lenders an amount equal to the difference between
(i) the lesser of (A) the amount of interest which would have been charged on Obligations owing to
such Lender if the Maximum Rate had, at all times, been in effect and (B) the amount of interest
which would have accrued on such Obligations if the rates of interest set forth in this Agreement
had at all times been in effect and (ii) the amount of interest actually paid or accrued under this
Agreement on such Obligations. In the event any Lender ever receives, collects or applies as
interest any sum in excess of the Maximum Rate, such excess amount shall, to the extent permitted
by law, be applied to the reduction of the principal balance of the Obligations owing to it, and if
no such principal is then outstanding, such excess or part thereof remaining shall be paid to the
Borrower.

          (e) Other Amounts Overdue. If any amount payable under this Agreement other than the
Advances is not paid when due and payable, including accrued interest and fees, then such overdue
amount shall accrue interest hereon due and payable on demand (i) if such amount is in Dollars, at
a rate per annum equal to the lesser of (A) Adjusted Prime Rate plus two percent (2%) and
(B) the Maximum Rate, from the date such amount became due until the date such amount is paid in
full, and (ii) if such amount is in a Foreign Currency, the lesser of (A) the greater of (1) the
Adjusted Prime Rate in effect from time to time plus two percent (2%) and (2) the overnight
Eurocurrency Rate plus the
 Applicable Margin and any Mandatory Cost Rate for Eurocurrency Rate Advances plus two
percent (2%) and (B) the Maximum Rate.

27

 

     Section 2.7 Prepayments.

          (a) Right to Prepay. The Borrower shall have no right to prepay any principal amount
of any Advance except as provided in this Section 2.7.

          (b) Optional Prepayments. The Borrower may elect to prepay any of the Advances, after
giving notice thereof to the Administrative Agent and the Lenders by 12:00 p.m. (Houston, Texas)
for Advances denominated in Dollars and by 12:00 p.m. in the Applicable Time for Revolving Advances
denominated in Foreign Currencies and Swingline Advances made by Foreign Swingline Lenders (i) on
the day of prepayment of any Swingline Advance, (ii) at least three Business Days’ prior to the day
of prepayment of any Eurocurrency Rate Advances and (iii) the day prior to the prepayment of any
Prime Rate Advance. Such notice shall be by telephone or telecopier, and if by telephone,
confirmed promptly in writing, and must state the proposed date and aggregate principal amount of
such prepayment, whether such prepayment should be applied to reduce outstanding Revolving Advances
or Swingline Advances, and if applicable, the relevant Interest Period for the Advances to be
prepaid. If any such notice is given, the Borrower shall prepay Advances comprising part of the
same Borrowing in whole or ratably in part in an aggregate principal amount equal to the amount
specified in such notice, and shall also pay accrued interest to the date of such prepayment on the
principal amount prepaid and amounts, if any, required to be paid pursuant to Section 2.8 as a
result of such prepayment being made on such date; provided, however, that (i) each
partial prepayment of Eurocurrency Rate Advances shall be in an aggregate principal amount of not
less than $3,000,000 and in integral multiples of $1,000,000 in excess thereof, (ii) each partial
prepayment of Prime Rate Advances shall be in an aggregate principal amount of not less than
$500,000 and in integral multiples of $100,000 in excess thereof, (iii) each partial prepayment of
Swingline Advances shall be in an aggregate principal amount of not less than $500,000, and (iv)
any prepayment of an Advance shall be made in the Designated Currency in which such Advance was
funded. Each prepayment pursuant to this Section 2.7(b) shall be accompanied by accrued interest
on the amount prepaid to the date of such prepayment and amounts, if any, required to be paid
pursuant to Section 2.8 as a result of such prepayment being made on such date.

          (c) Ratable Payments. Each payment of any Advance pursuant to this Section 2.7 or any
other provision of this Agreement shall be made in a manner such that all Advances comprising part
of the same Borrowing are paid in whole or ratably in part.

          (d) Effect of Notice. All notices given pursuant to this Section 2.7 shall be
irrevocable and binding upon the Borrower.

     Section 2.8 Breakage Costs. If (a) any payment of principal of any Eurocurrency Rate
Advance is made other than on the last day of the Interest Period for such Advance as a result of
any payment hereunder or the acceleration of the maturity of the Obligations pursuant to
Article VIII or otherwise; (b) the Borrower fails to borrow, Convert, continue, repay or prepay any
Eurocurrency Rate Advance on the date specified in any notice delivered pursuant hereto (other than
default by a Lender), (c) the Borrower fails to make a principal or interest payment with respect
to any Eurocurrency Rate Advance on the date such payment is due and payable, the Borrower shall,
within 10 days of any written demand sent by any Lender to the Borrower (with a copy to the
Administrative Agent), pay to the Administrative Agent for the account of such Lender any amounts
(without duplication of any other amounts payable in respect of breakage costs) required to
compensate such Lender for any additional losses, out-of-pocket costs or expenses which it may
reasonably incur as a result of such payment or nonpayment, including any loss (including loss of
anticipated profits), cost or expense incurred by reason
 of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund
or maintain such Advance.

28

 

     Section 2.9 Increased Costs.

          (a) Eurocurrency Rate Advances. If, due to either (i) introduction of or any change
in or in the interpretation of any Legal Requirement (other than any change by way of imposition or
increase of reserve requirements included in the calculation of the Eurocurrency Rate but including
any change or introduction which would result in the failure of the Mandatory Cost Rate, as
calculated hereunder, to represent the cost to any Lender of complying with the requirements of the
Bank of England and/or the Financial Services Authority or the European Central Bank in relation to
its making, funding or maintaining Eurocurrency Rate Advances), or (ii) compliance with any
guideline or request from any central bank or other Governmental Authority (whether or not having
the force of law), a Lender incurs increase cost related to the making or maintaining Eurocurrency
Rate Advances (or maintaining its obligation to make any Eurocurrency Rate Advances), or the amount
of any sum received or receivable by such Lender hereunder is reduced (whether of principal,
interest or any other amount), then the Borrower shall from time to time, upon demand by such
Lender (with a copy of such demand to the Administrative Agent), promptly pay to the Administrative
Agent for the account of such Lender additional amounts (without duplication of any other amounts
payable in respect of increased costs) sufficient to compensate such Lender for such increased cost
or reduction; provided, however, that, before making any such demand, each Lender
agrees to use commercially reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to designate a different Lending Office if the making of such a
designation would avoid the need for, or reduce the amount of, such increased cost and would not,
in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender. A
certificate as to the amount of such increased cost and detailing the calculation of such cost
submitted to the Borrower and the Administrative Agent by such Lender at the time such Lender
demands payment under this Section shall be conclusive and binding for all purposes, absent
manifest error.

          (b) Capital Adequacy. If any Lender or Issuing Lender determines in good faith that
compliance with any Legal Requirement or any guideline or request from any central bank or other
Governmental Authority (whether or not having the force of law) implemented or effective after the
date of this Agreement affects or would affect the amount of capital required or expected to be
maintained by such Lender or Issuing Lender and that the amount of such capital is increased by or
based upon the existence of Advances made by such Lender, the existence of Letters of Credit issued
or participated in by such Lender or Issuing Lender, the existence of such Lender’s commitment to
lend or Issuing Lender’s commitment to issue Letters of Credit or any Lender’s commitment to risk
participate in Letters of Credit and other commitments of this type, then, upon 30 days prior
written notice by such Lender or Issuing Lender (with a copy of any such demand to the
Administrative Agent), the Borrower shall promptly pay to the Administrative Agent for the account
of such Lender or to Issuing Lender, as the case may be, from time to time as specified by such
Lender or Issuing Lender, additional amounts (without duplication of any other amounts payable in
respect of increased costs) sufficient to compensate such Lender or Issuing Lender, in light of
such circumstances, (i) with respect to such Lender, to the extent that such Lender reasonably
determines such increase in capital to be allocable to the existence of such Lender’s commitment to
lend under this Agreement or its commitment to risk participate in Letters of Credit or its having
made Advances or participated in Letters of Credit and (ii) with respect to such Issuing Lender, to
the extent that such Issuing Lender reasonably determines such increase in capital to be allocable
to its commitment to issue or to the issuance or maintenance of the Letters of Credit. A
certificate as to such amounts and detailing the calculation of such amounts submitted to the
Borrower by such Lender or Issuing Lender shall be conclusive and binding for all purposes, absent
manifest error.

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          (c) Letters of Credit. If any change in any Legal Requirement or in the
interpretation thereof by any court or administrative or Governmental Authority charged with the
administration thereof shall either (i) impose, modify, or deem applicable any reserve, special
deposit, or similar requirement against letters of credit issued by or risk participated in by, or
assets held by, or deposits in or for the account of, any Issuing Lender or any Lender or
(ii) impose on any Issuing Lender or any Lender any other condition regarding the provisions of
this Agreement relating to the Letters of Credit or any Letter of Credit Obligations, and the
result of any event referred to in the preceding clause (i) or (ii) shall be to increase the cost
to any Issuing Lender of issuing or maintaining any Letter of Credit, or increase the cost to such
Lender of its risk participation in any Letter of Credit (which increase in cost shall be
determined by such Issuing Lender’s or such Lender’s reasonable allocation of the aggregate of such
cost increases resulting from such event), then, upon demand by such Issuing Lender or such Lender
(with a copy sent to the Administrative Agent), as the case may be, the Borrower shall pay to the
Administrative Agent (for the account of such Issuing Lender or Lender), as the case may be, from
time to time as specified by such Issuing Lender or such Lender, additional amounts which shall be
sufficient to compensate such Issuing Lender or such Lender for such increased cost. Each Issuing
Lender and each Lender agrees to use commercially reasonable efforts (consistent with internal
policy and legal and regulatory restrictions) to designate a different Lending Office for the
booking of its Letters of Credit or risk participations if the making of such designation would
avoid the effect of this paragraph and would not, in the reasonable judgment of such Issuing Lender
or such Lender, be otherwise disadvantageous to such Issuing Lender or such Lender, as the case may
be. A certificate as to such increased cost incurred by such Issuing Lender or such Lender, as the
case may be, as a result of any event mentioned in clause (i) or (ii) above, and detailing the
calculation of such increased costs submitted by such Issuing Lender or such Lender to the
Borrower, shall be conclusive and binding for all purposes, absent manifest error.

     Section 2.10 Payments and Computations.

          (a) Payment Procedures. Except if otherwise set forth herein, the Borrower shall make
each payment under this Agreement not later than 1:00 p.m. (Houston, Texas time) for payments due
in Dollars and not later than 1:00 p.m. in the Applicable Time for payments due in Foreign
Currencies (and payments due to Foreign Swingline Lenders related to Foreign Swingline Advances),
on the day when due in the Designated Currency as to outstanding Advances and Reimbursement
Obligations, and in Dollars as to all other amounts, to the Administrative Agent at its Lending
Office (or such other location as the Administrative Agent shall designate in writing to the
Borrower) in same day funds. The Administrative Agent will promptly thereafter cause to be
distributed like funds relating to the payment of principal, interest or fees ratably (other than
amounts payable solely to the Administrative Agent, the Issuing Lenders, or a specific Lender
pursuant to Section 2.1(b), 2.3(c), 2.3(d), 2.6(d), 2.6(e), 2.8, 2.9, 2.11, 2.12, 2.13(d), 9.4 or
9.7 but after taking into account payments effected pursuant to Section 7.6) to the Lenders in
accordance with each Lender’s Pro Rata Share for the account of their respective Lending Offices,
and like funds relating to the payment of any other amount payable to any Lender or any Issuing
Lender to such Lender or such Issuing Lender for the account of its Lending Office, in each case to
be applied in accordance with the terms of this Agreement.

          (b) Computations. All computations of interest based on the Adjusted Prime Rate,
interest on Swingline Advances and interest on Eurocurrency Rate Advances denominated in Pounds
Sterling shall be made by the Administrative Agent (or with respect to each Swingline Advance, by
the applicable Swingline Lender) on the basis of a year of 365 or 366 days, as the case may be.
All computations of fees and interest based on the Eurocurrency Rate (other than as set forth in
the immediately preceding sentence), Overnight Rate and the Federal Funds Rate shall be made by the
Administrative Agent on the basis of a year of 360 days. In any case, such computations shall be
made for the actual number of days (including the first day, but excluding the last day) occurring
in the period

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for which such interest or fees are payable. Each determination by the Administrative Agent
(or with respect to each Swingline Advance, by the applicable Swingline Lender) of an interest rate
shall be conclusive and binding for all purposes, absent manifest error.

          (c) Non-Business Day Payments. Whenever any payment shall be stated to be due on a
day other than a Business Day, such payment shall be made on the next succeeding Business Day, and
such extension of time shall in such case be included in the computation of payment of interest or
fees, as the case may be; provided, however, that if such extension would cause payment of
interest on or principal of Eurocurrency Rate Advances to be made in the next following calendar
month, such payment shall be made on the next preceding Business Day.

          (d) Administrative Agent Reliance. Unless the Administrative Agent shall have
received written notice from the Borrower prior to the date on which any payment is due to the
Lenders that the Borrower will not make such payment in full, the Administrative Agent may assume
that the Borrower has made such payment in full to the Administrative Agent on such date and the
Administrative Agent may, in reliance upon such assumption, cause to be distributed to each Lender
on such date an amount equal to the amount then due such Lender. If and to the extent the Borrower
shall not have so made such payment in full to the Administrative Agent, each Lender shall repay to
the Administrative Agent forthwith on demand such amount distributed to such Lender, together with
interest, for each day from the date such amount is distributed to such Lender until the date such
Lender repays such amount to the Administrative Agent, at the Overnight Rate for such day.

          (e) Application of Payments. Whenever any payment received by the Administrative
Agent under this Agreement is insufficient to pay in full all amounts then due and payable under
this Agreement and Notes, such payment shall be distributed and applied by the Administrative Agent
and the Lenders in the following order: first, to the payment of fees and expenses due and
payable to the Administrative Agent under and in connection with this Agreement or any other Credit
Document; second, to the payment of all amounts due and payable under Section 2.11(c),
ratably among the Lenders in accordance with the aggregate amount of such payments owed to each
such Lender; third, to the payment of fees due and payable pursuant to Section 2.3(c),
ratably among the Issuing Lenders in accordance with the aggregate amount of such payments owed to
each such Issuing Lender; fourth, to the payment of all other fees due and payable under
Section 2.3 ratably among the Lenders in accordance with their applicable Revolving Commitments;
and fifth, to the payment of the interest accrued on and the principal amount of all of the
Advances, and the interest accrued on and the principal amount of all Reimbursement Obligations,
regardless of whether any such amount is then due and payable, ratably among the Lenders in
accordance with the aggregate accrued interest plus the aggregate principal amount owed to such
Lender.

     Section 2.11 Taxes.

          (a) No Deduction for Certain Taxes. Any and all payments by the Borrower shall be
made, in accordance with Section 2.10, free and clear of and without deduction for any and all
present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
with respect thereto, excluding, in the case of each Lender, each Issuing Lender, and the
Administrative Agent, taxes imposed on its net income, and franchise taxes imposed on it in lieu
thereof, by the jurisdiction under the laws of which such Lender, such Issuing Lender, or the
Administrative Agent (as the case may be) is organized or any political subdivision of the
jurisdiction (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities being hereinafter referred to as “Taxes”) and, in the case of each Lender and
each Issuing Lender, Taxes by the jurisdiction of such Lender’s Lending Office or any political
subdivision of such jurisdiction. If the Borrower shall be required by law to deduct any Taxes
from or in respect of any sum payable to any Lender, any Issuing Lender, or the Administrative
Agent, (i)

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the sum payable shall be increased as may be necessary so that, after making all required
deductions (including deductions applicable to additional sums payable under this Section 2.11),
such Lender, such Issuing Lender, or the Administrative Agent (as the case may be) receives an
amount equal to the sum it would have received had no such deductions been made; provided,
however, that if the Borrower’s obligation to deduct Taxes is caused solely by such Lender’s, such
Issuing Lender’s, or the Administrative Agent’s failure to provide the forms described in
paragraph (e) of this Section 2.11 and such Lender, such Issuing Lender, or the Administrative
Agent could have lawfully provided such forms, no such increase shall be required; (ii) the
Borrower shall make such deductions; and (iii) the Borrower shall pay the full amount deducted to
the relevant taxation authority or other authority in accordance with applicable Legal
Requirements.

          (b) Other Taxes. In addition, the Borrower agrees to pay any present or future stamp
or documentary taxes or any other excise or property taxes, charges or similar levies which arise
from any payment made or from the execution, delivery or registration of, or otherwise with respect
to, this Agreement or the other Credit Documents (hereinafter referred to as “Other
Taxes”).

          (c) Indemnification. The Borrower hereby indemnifies each Lender, each Issuing
Lender, and the Administrative Agent for the full amount of Taxes or Other Taxes (including any
Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 2.11) paid
by such Lender, such Issuing Lender, or the Administrative Agent (as the case may be) and any
liability (including interest and expenses) arising therefrom or with respect thereto, whether or
not such Taxes or Other Taxes were correctly or legally asserted. Each payment required to be made
by the Borrower in respect of this indemnification shall be made to the Administrative Agent for
the benefit of any party claiming such indemnification within 30 days from the date the Borrower
receives written demand detailing the calculation of such amounts therefor from the Administrative
Agent, any such Issuing Lender, or any such Lender (with a copy of such demand to the
Administrative Agent).

          (d) Evidence of Tax Payments. The Borrower will pay prior to delinquency all Taxes
payable in respect of any payment. Within 30 days after the date of any payment of Taxes, the
Borrower will furnish to the Administrative Agent, at its address referred to in Section 9.2, the
original or a certified copy of a receipt evidencing payment of such Taxes.

          (e) Status of Lenders.

     (i) 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
hereunder or under any other Credit Document shall deliver to the Borrower (with a copy to
the Administrative Agent), at the time or times prescribed by Legal Requirements applicable
to such Lender or as reasonably requested by the Borrower or the Administrative Agent, such
properly completed and executed documentation prescribed by Legal Requirements which such
Lender is lawfully permitted to deliver 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 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.

     (ii) Without limiting the generality of the foregoing, in the event that the Borrower
is resident for tax purposes in the United States, any Foreign Lender shall deliver to
Borrower and the Administrative Agent (in such number of copies as shall be requested by the

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recipient) on or prior to the date on which such Foreign Lender becomes a Lender under
this Agreement (and from time to time thereafter promptly following the request of the
Borrower or the Administrative Agent, but only if such Foreign Lender is legally entitled to
do so), whichever of the following is applicable:

(A) duly completed copies of Internal Revenue Service Form W-8BEN claiming
eligibility for benefits of an income tax treaty to which the United States is a
party,

(B) duly completed copies of Internal Revenue Service Form W-8ECI,

(C) in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, (x) a certificate to the effect
that such Foreign Lender is not (A) a “bank” within the meaning of section
881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the applicable Borrower
within the meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign
corporation” described in section 881(c)(3)(C) of the Code and (y) duly completed
copies of Internal Revenue Service Form W-8BEN, or

(D) any other form prescribed by applicable law as a basis for claiming exemption
from or a reduction in United States Federal withholding tax duly completed together
with such supplementary documentation as may be prescribed by applicable law to
permit the Borrower to determine the withholding or deduction required to be made.

          (iii) Without limiting the obligations of the Lenders set forth above regarding
delivery of certain forms and documents to establish each Lender’s status for U.S.
withholding tax purposes, each Lender agrees promptly to deliver to the Administrative Agent
or the Borrower, as the Administrative Agent or the Borrower shall reasonably request, on or
prior to the Closing Date, and in a timely fashion thereafter following such reasonable
request therefor, such other documents and forms required by any relevant taxing authorities
under the Legal Requirements of any other jurisdiction, duly executed and completed by such
Lender, as are required under such Legal Requirements to confirm such Lender’s entitlement
to any available exemption from, or reduction of, applicable withholding taxes in respect of
all payments to be made to such Lender outside of the United States by the Borrower pursuant
to this Agreement or otherwise to establish such Lender’s status for withholding tax
purposes in such other jurisdiction. Each Lender shall promptly notify the Administrative
Agent of any change in circumstances which would modify or render invalid any such claimed
exemption or reduction. Additionally, the Borrower shall promptly deliver to the
Administrative Agent or any Lender, as the Administrative Agent or such Lender shall
reasonably request, on or prior to the Closing Date, and in a timely fashion thereafter,
such documents and forms required by any relevant taxing authorities under the Legal
Requirements of any jurisdiction, duly executed and completed by the Borrower, as are
required to be furnished by such Lender or the Administrative Agent under such Legal
Requirements in connection with any payment by the Administrative Agent or any Lender of
Taxes or Other Taxes, or otherwise in connection with the Credit Documents, with respect to
such jurisdiction.

          (f) Treatment of Certain Refunds. If the Administrative Agent, a Lender or an Issuing
Lender determines, in its sole 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, it shall pay to the Borrower an amount equal to
such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the
Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund),
net of all out-of-pocket

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expenses of the Administrative Agent, such Lender or such Issuing Lender, as the case may be,
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,
such Lender or such Issuing Lender, agrees to repay the amount paid over to the Borrower (plus any
penalties, interest or other charges imposed by the relevant Governmental Authority) to the
Administrative Agent, such Lender or such Issuing Lender in the event the Administrative Agent,
such Lender or such Issuing Lender is required to repay such refund to such Governmental Authority.
This paragraph shall not be construed to require the Administrative Agent, any Lender or any
Issuing Lender to make available its tax returns (or any other information relating to its taxes
that it deems confidential) to the Borrower or any other Person.

          (g) Mitigation. Each Lender agrees to use commercially reasonable efforts (consistent
with its internal policies and legal and regulatory restrictions) to select a jurisdiction for its
Lending Office or change the jurisdiction of its Lending Office, as the case may be, so as to avoid
the imposition of any Taxes or Other Taxes or to eliminate or reduce the payment of any additional
sums under this Section 2.11 or to eliminate or reduce the payment of interest due to it which is
based on the Mandatory Cost Rate; provided, that no such selection or change of
jurisdiction for its Lending Office shall be made if, in the reasonable judgment of such Lender,
such selection or change would be disadvantageous to such Lender.

     Section 2.12 Illegality. If any Lender shall notify the Administrative Agent and the
Borrower that the introduction of or any change in or in the interpretation of any Legal
Requirement makes it unlawful, or that any central bank or other Governmental Authority asserts
that it is unlawful for such Lender or its Lending Office to perform its obligations under this
Agreement to maintain any Eurocurrency Rate Advances of such Lender then outstanding hereunder or
any Governmental Authority has imposed material restrictions on the authority of such Lender to
purchase or sell, or take deposits of, Dollars or any Foreign Currency in the applicable interbank
market, then, notwithstanding anything herein to the contrary, the Borrower shall, if demanded by
such Lender in its notice, no later than 12:00 p.m. (Houston, Texas time), (a) if not prohibited by
any Legal Requirement to maintain such Eurocurrency Rate Advances for the duration of the Interest
Period, on the last day of the Interest Period for each outstanding Eurocurrency Rate Advance of
such Lender or (b) if prohibited by any Legal Requirement to maintain such Eurocurrency Rate
Advances for the duration of the Interest Period, on the second Business Day following its receipt
of such notice from such Lender, then (i) with respect to Revolving Advances denominated in a
Foreign Currency, prepay such Eurocurrency Rate Advances of such Lender then outstanding and which
are denominated in such affected currency or currencies together with all accrued interest on the
amount so prepaid, and amounts, if any, required to be paid pursuant to Section 2.8 as a result of
such prepayment being made on such date, and (ii) with respect to Revolving Advances denominated in
Dollars, Convert all such Eurocurrency Rate Advances of such Lender then outstanding to Prime Rate
Advances and pay accrued interest on the principal amount Converted to the date of such Conversion
and amounts, if any, required to be paid pursuant to Section 2.8 as a result of such Conversion
being made on such date. Each Lender agrees to use commercially reasonable efforts (consistent
with its internal policies and legal and regulatory restrictions) to designate a different Lending
Office if the making of such designation would avoid the effect of this paragraph and would not, in
the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender.

     Section 2.13 Letters of Credit.

          (a) Issuance of Letters of Credit. Each Issuing Lender, the Lenders and the Borrower
agree that effective as of the Closing Date, the Existing Letters of Credit shall be deemed to have
been issued and maintained under, and to be governed by the terms and conditions of, this Agreement
as Letters of Credit. From time to time from the date of this Agreement until ten days before the
Maturity Date, at the written request of the Borrower given to the applicable Issuing Lender and to
the

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Administrative Agent not later than (i) 12:00 p.m. (Houston, Texas time) on the third Business
Day before the date of the proposed issuance, amendment, or extension of a Letter of Credit
denominated in a Foreign Currency and (ii) 12:00 p.m. (Houston, Texas time) on the second Business
Day (or such later time and date as may be agreed to among the Borrower, the applicable Issuing
Lender and the Administrative Agent) before the date of the proposed issuance, amendment, or
extension of a Letter of Credit denominated in Dollars, the requested Issuing Lender shall, on any
Business Day and on the terms and conditions hereinafter set forth (and, if applicable, subject to
the terms of the applicable Letter of Credit), issue, increase, decrease, amend, or extend the
expiration date of, Letters of Credit for the account of the Borrower (for its own benefit or for
the benefit of any of its Subsidiaries). Promptly after receipt by the applicable Issuing Lender
of such request, the applicable Issuing Lender will confirm with the Administrative Agent that the
Administrative Agent has also received such request and, if not, the applicable Issuing Lender will
notify the Administrative Agent of the contents thereof. With respect to any issuance of or
increase to a Letter of Credit, unless the applicable Issuing Lender has received notice in writing
from the Administrative Agent (including at the request of any Lender) at least one Business Day
prior to the requested date of the proposed issuance or increase, directing the applicable Issuing
Lender not to issue or increase such Letter of Credit as a result of the limitations set forth
clause 2.13(b)(i) below then, subject to the terms and conditions hereof, the applicable Issuing
Lender will issue or increase such Letter of Credit as requested by the Borrower. Letters of
Credit shall be denominated in any Agreed Currency.

          (b) Limitations. No Letter of Credit will be issued (or deemed issued as to the
Existing Letters of Credit), increased, or extended (i) if such issuance, increase, or extension
would cause the sum of the Letter of Credit Exposure plus the aggregate Dollar Amount of
all outstanding Revolving Advances and Swingline Advances at such time to exceed the aggregate
Revolving Commitments; (ii) unless such Letter of Credit has an Expiration Date not later than the
earlier of (A) sixty months after the date of issuance thereof and (B) twenty-four months after the
Maturity Date; (iii) unless such Letter of Credit (or, if applicable, the amendment to a Letter of
Credit) is in form and substance acceptable to the applicable Issuing Lender in its sole
discretion; (iv) unless the Borrower has delivered to the applicable Issuing Lender a completed and
executed letter of credit application on such Issuing Lender’s standard form, which shall contain
terms no more restrictive than the terms of this Agreement; (v) unless such Letter of Credit is
governed by the Uniform Customs and Practice for Documentary Credits (2007 Revision), International
Chamber of Commerce Publication No. 600 (“UCP”), the International Standby Practices (ISP
98), International Chamber of Commerce Publication No. 590 (“ISP”) or any successor to the
UCP or ISP and, to the extent not inconsistent therewith, the New York Uniform Commercial Code, as
in effect from time to time; (vi) if any order, judgment or decree of any Governmental Authority or
arbitrator shall by its terms purport to enjoin or restrain an Issuing Lender from issuing or
providing such Letter of Credit, or any Legal Requirements applicable to such Issuing Lender shall
prohibit the issuance or provision of such type of Letter of Credit generally or such Letter of
Credit in particular or shall impose upon such Issuing Lender with respect to such Letter of Credit
any restriction, reserve or capital requirement (for which such Issuing Lender is not otherwise
compensated hereunder) not in effect on the date hereof or shall impose upon such Issuing Lender
any unreimbursable loss, cost or expense which was not applicable on the date hereof and which such
Issuing Lender in good faith deems material, or (vii) if such increase or extension is of an
Existing Letter of Credit issued by JPMorgan Chase Bank, N.A. or The Bank of Nova Scotia unless the
Borrower has specifically designated such Lender as one of the four Issuing Lender in writing to
the Administrative Agent. If the terms of any letter of credit application referred to in the
foregoing clause (iv) conflicts with the terms of this Agreement, the terms of this Agreement shall
control.

          (c) Participations. With respect to each Letter of Credit described on Schedule 1.1(c)
which is outstanding on the Closing Date, each Lender is deemed to have purchased a participation
in the

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related Letter of Credit Exposure equal to such Lender’s Pro Rata Share of such Letter of
Credit Exposure on the Closing Date. On the date of the issuance or increase of any Letter of
Credit on or after the Closing Date, each Issuing Lender shall be deemed to have sold to each other
Lender and each other Lender shall have been deemed to have purchased from such Issuing Lender a
participation in the Letter of Credit Exposure related to the Letters of Credit issued by such
Issuing Lender equal to such Lender’s Pro Rata Share at such date and such sale and purchase shall
otherwise be in accordance with the terms of this Agreement. Each Issuing Lender shall promptly
deliver to the Administrative Agent by telex, telephone, or telecopy (or by e-mail with a return
receipt requested) which the Administrative Agent will promptly deliver to each such participant
Lender, a notice of each Letter of Credit of such Issuing Lender issued, increased or decreased,
and the Administrative Agent shall also notify each Lender of the actual amount of such Lender’s
participation in such Letter of Credit. Each Lender’s obligation to purchase participating
interests pursuant to this Section, to make a Mandatory Revolving Borrowing as set forth in clause
(d) below, to reimburse such Issuing Lender for such Lender’s Pro Rata Share of any payment under a
Letter of Credit by such Issuing Lender not reimbursed in full by the Borrower, and to fund its
participation interests in Letters of Credit as set forth below, shall be absolute and
unconditional and shall not be affected by any circumstance, including (i) any of the circumstances
described in paragraph (f) or (e) below, (ii) the occurrence and continuance of a Default, (iii) an
adverse change in the financial condition of the Borrower, (iv) any deposit of cash or other
securities as collateral or the provision of any other support for the Borrower’s reimbursement
obligations related thereto, (v) any termination of this Agreement other than a termination in
writing agreed to by each Issuing Lender which expressly provides for a termination of the Lenders’
reimbursement obligations owing to the Issuing Lenders hereunder, and (vi) any other circumstance,
happening or event whatsoever, whether or not similar to any of the foregoing; provided that, a
Lender may have a claim against an Issuing Lender for any such circumstance, happening or event
constituting or arising from gross negligence or willful misconduct on the part of the such Issuing
Lender.

          (d) Reimbursement. Upon receipt from the beneficiary of any Letter of Credit of any
notice of a drawing under such Letter of Credit, the applicable Issuing Lender shall notify the
Borrower and the Administrative Agent thereof (which the Administrative Agent will promptly forward
to the Lenders). No later than 11:00 a.m. on the date of any payment to be made by such Issuing
Lender under a Letter of Credit, the Borrower agrees to pay to such Issuing Lender an amount equal
to any amount paid or to be paid by such Issuing Lender on such date under or in respect of such
Letter of Credit and in the currency paid or to be paid by such Issuing Lender. Notwithstanding
the foregoing, if, after the issuance of any Letter of Credit denominated in a Foreign Currency,
such currency ceases to be an Agreed Currency as provided in the definition of Agreed Currency,
then all payments to be made by the Borrower hereunder in such currency shall instead be made when
due (either directly by the Borrower or through a deemed borrowing under clause (i) below) in
Dollars in an amount equal to the Dollar Amount (as of the date of repayment) of such payment due,
it being the intention of the parties hereto that the Borrower take all risks of the imposition of
any such currency control or exchange regulations. In the event an Issuing Lender makes a payment
pursuant to a request for draw presented under a Letter of Credit and such payment is not promptly
reimbursed by the Borrower as required herein, such Issuing Lender shall give notice of such
payment to the Administrative Agent (which the Administrative Agent will promptly forward to the
Lenders). In such event, the Borrower shall be deemed to have requested a Mandatory Revolving
Borrowing consisting of (i) for unreimbursed drawings under Letters of Credit denominated in
Dollars or in a Foreign Currency which ceased to be an Agreed Currency, Prime Rate Advances, and
(ii) for unreimbursed drawings under Letters of Credit denominated in Foreign Currencies,
Eurocurrency Rate Advances in such Agreed Currency and in the amount of such unreimbursed amount
with an Interest Period of one month; provided that, if the Revolving Commitments have terminated
or otherwise expired, such Eurocurrency Rate Advances shall bear interest at the overnight
Eurocurrency Rate. The applicable Issuing Lender shall give the Administrative Agent notice of
such deemed Borrowing (A) by 12:00 p.m.

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(Houston, Texas time) on the date before the proposed Borrowing is to be made in the case of a
Prime Rate Advance or Eurocurrency Rate Advances bearing interest at the overnight Eurocurrency
Rate and (B) by 12:00 p.m. (Houston, Texas time) on the fourth Business Day before the date of such
proposed Borrowing in the case of a Eurocurrency Rate Advance denominated in a Foreign Currency
with an Interest Period of one month (which notice the Administrative Agent shall promptly give to
each Lender). Each Lender shall, no later than 1:00 p.m. on the Business Day specified in such
notice, promptly make such funds available to the applicable Issuing Lender, in the applicable
currency and in an amount equal to such Lender’s Pro Rata Share of the unreimbursed amount. The
Borrower hereby unconditionally and irrevocably authorizes, empowers, and directs the
Administrative Agent and the Lenders to record and otherwise treat each payment under a Letter of
Credit not immediately reimbursed by the Borrower as a Borrowing comprised of Prime Rate Advances
or Eurocurrency Rate Advances, as applicable, to the Borrower. If for any reason such Mandatory
Revolving Borrowing cannot be made by any Lender, the request for such Mandatory Revolving
Borrowing submitted by the applicable Issuing Lender as set forth herein shall be deemed to be a
request by such Issuing Lender that each of the Lenders fund its risk participation in the relevant
Letter of Credit and each Lender’s payment to the Administrative Agent for the account of the
applicable Issuing Lender pursuant to this clause (d) shall be deemed payment in respect of such
participation. If the funds are not made available by a Lender to the applicable Issuing Lender on
the required date (either as the making of a Revolving Advance or the funding of its participation
interest in such Letters of Credit), such Lender shall pay interest thereon to the applicable
Issuing Lender at a rate per annum equal to the applicable Overnight Rate. At any time after any
Lender has funded its participation in a Letter of Credit, if the applicable Issuing Lender
receives any payment on the applicable Reimbursement Obligation from the Borrower, such Issuing
Lender will distribute to such Lender its Pro Rata Share of such payment (appropriately adjusted,
in the case of interest payments, to reflect the period of time during which such Lender’s
participation was funded) in the same funds as those received by such Issuing Lender. All overdue
Reimbursement Obligations of the Borrower shall bear interest as set forth in Section 2.6(e).

          (e) Obligations Unconditional. The obligations of the Borrower under this Agreement
in respect of each Letter of Credit shall be unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Agreement under all circumstances, notwithstanding
the following circumstances:

     (i) any lack of validity or enforceability of any Letter of Credit Documents;

     (ii) any amendment or waiver of or any consent to departure from any Letter of Credit
Documents;

     (iii) the existence of any claim, set-off, defense or other right which the Borrower or
any Lender or any other Person may have at any time against any beneficiary or transferee of
such Letter of Credit (or any Persons for whom any such beneficiary or any such transferee
may be acting), any Issuing Lender or any other Person or entity, whether in connection with
this Agreement, the transactions contemplated in this Agreement or in any Letter of Credit
Documents or any unrelated transaction;

     (iv) any statement, draft or any other document presented under such Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect to the extent an Issuing Lender would not
be liable therefor pursuant to the following paragraph (f);

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     (v) payment by an Issuing Lender under such Letter of Credit against presentation of a
draft or certificate which does not comply with the terms of such Letter of Credit; or

     (vi) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing;

provided, however, that nothing contained in this paragraph (e) shall be deemed to
constitute a waiver of any remedies of the Borrower in connection with the Letters of Credit.

          (f) Liability of Issuing Lenders. The Borrower assumes all risks of the acts or
omissions of any beneficiary or transferee of any Letter of Credit with respect to its use of such
Letter of Credit. No Issuing Lender nor any of its officers or directors shall be liable or
responsible for, and the Borrower’s obligations hereunder shall not be affected by:

     (i) the use which may be made of any Letter of Credit, any transfer of any Letter of
Credit or any acts or omissions of any beneficiary or transferee in connection therewith;

     (ii) the validity, sufficiency or genuineness of documents, or of any endorsement
thereon, even if such documents should prove to be in any or all respects invalid,
insufficient, fraudulent or forged;

     (iii) payment by any Issuing Lender against presentation of documents which do not
comply with the terms of a Letter of Credit, including failure of any documents to bear any
reference or adequate reference to the relevant Letter of Credit;

     (iv) any adverse change in the relevant exchange rates or in the availability of the
relevant Agreed Currency to the Borrower or in the relevant currency markets generally; or

     (v) any other circumstances whatsoever in making or failing to make payment under any
Letter of Credit (INCLUDING ANY ISSUING LENDER’S OWN NEGLIGENCE),

except that the Borrower shall have a claim against such Issuing Lender, and such Issuing
Lender shall be liable to, and shall promptly pay to, the Borrower, to the extent of any direct, as
opposed to consequential, damages suffered by the Borrower which the Borrower proves were caused by
such Issuing Lender’s willful misconduct or gross negligence. In furtherance and not in limitation
of the foregoing clause (f), the Issuing Lenders may accept documents that appear on their face to
be in order, without responsibility for further investigation, regardless of any notice or
information to the contrary and may refuse to accept documents that are not in strict conformity
with the terms of the Letter of Credit, and any such acceptance or refusal shall not be deemed to
constitute gross negligence or willful misconduct.

          (g) Cash Collateral Account. The Borrower shall, (i) within 10 days prior to the
Maturity Date and (ii) at any time, if an Event of Default has occurred and is continuing, on the
Business Day the Borrower receives written notice from an Issuing Lender or the Administrative
Agent that collateralization is being required pursuant to Section 7.2(b) or Section 7.3(b), either
(A) deposit cash in the Cash Collateral Account held by the Administrative Agent in an amount equal
to the Letter of Credit Exposure as of such date or (B) cause to be issued an irrevocable standby
letter of credit in favor of the applicable Issuing Lender and issued by a bank or other financial
institution acceptable to such Issuing Lender and the Administrative Agent to support the full
amount of the Letter of Credit Exposure as of such date. With respect to Letters of Credit issued
in Foreign Currencies, if the Borrower elects to deposit

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cash into the Cash Collateral Account pursuant to clause (A) above, then at the election of
the Administrative Agent, the Borrower shall be required to either (1) deposit cash with the
Administrative Agent in the Designated Currencies for the Letters of Credit or (2) deposit cash
with the Administrative Agent in Dollars equal to the Dollar Amount of the Letter of Credit
Exposure and, thereafter, deposit additional cash in Dollars at any time and from time to time as
may be reasonably requested by the Administrative Agent in order to protect against the results of
exchange rate fluctuations.

          (h) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of
Credit issued or outstanding hereunder is in support of any obligations of, or is for the account
of, a Subsidiary of the Borrower, the Borrower shall be obligated to reimburse the applicable
Issuing Lender hereunder for any and all drawings under such Letter of Credit. The Borrower hereby
acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures to the
benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the
businesses of such Subsidiaries.

          (i) Information to Administrative Agent from Issuing Lenders. For purposes of
calculating outstandings and Letters of Credit issued under this Agreement (i) on each March 31,
June 30, September 30 and December 31, commencing June 30, 2008, and (ii) from time to time as the
Administrative Agent may request, each Issuing Lender shall provide the Administrative Agent with a
daily log, in form and detail reasonably acceptable to the Administrative Agent, setting forth the
Dollar Amount of all outstanding Letters of Credit issued by such Issuing Lender using the Exchange
Rate as most recently determined by the Administrative Agent.

     Section 2.14 Sharing of Payments, Etc. If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of set-off or otherwise) on
account of its Advances or its share of Letter of Credit Obligations in excess of its Pro Rata
Share of payments on account of the Advances or Letter of Credit Obligations obtained by all the
Lenders, then such Lender shall notify the Administrative Agent and the other Lenders and forthwith
purchase from the other Lenders, such participations in the Advances made by them or Letter of
Credit Obligations held by them as shall be necessary to cause such purchasing Lender to share the
excess payment ratably in accordance with the requirements of this Agreement with each of them;
provided, however, that if all or any portion of such excess payment is thereafter
recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and such
Lender shall repay to the purchasing Lender the purchase price to the extent of such Lender’s
ratable share (according to the proportion of (a) the amount of the participation sold by such
Lender to the purchasing Lender as a result of such excess payment to (b) the total amount of such
excess payment) of such recovery, together with an amount equal to such Lender’s ratable share
(according to the proportion of (i) the amount of such Lender’s required repayment to the
purchasing Lender to (ii) the total amount of all such required repayments to the purchasing
Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the
total amount so recovered. The Borrower agrees that any Lender so purchasing a participation from
another Lender pursuant to this Section 2.14 may, to the fullest extent permitted by law, unless
and until rescinded as provided above, exercise all its rights of payment (including the right of
set-off) with respect to such participation as fully as if such Lender were the direct creditor of
the Borrower in the amount of such participation.

     Section 2.15 Increase of Commitment.

          (a) At any time prior to the Maturity Date, the Borrower may effectuate no more than two
increases in the aggregate Revolving Commitments by an aggregate amount not greater than
$1,000,000,000 (any such increase, a “Commitment Increase”), by designating either one or
more of the existing Lenders (each of which, in its sole discretion, may determine whether and to
what degree to participate in such Commitment Increase) or one or more other banks or other
financial institutions (reasonably acceptable to the Administrative Agent, the Issuing Lenders and
the Swingline Lenders) that

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at the time agree, in the case of any such bank or financial institution that is an existing
Lender to increase its Revolving Commitment as such Lender shall so select (an “Increasing
Lender”) and, in the case of any other such bank or financial institution (an “Additional
Lender”), to become a party to this Agreement; provided, however, that (i) the
aggregate Revolving Commitments shall not at any time exceed $3,000,000,000 and (ii) the minimum
amount of each such Commitment Increase shall not be less than $100,000,000. The sum of the
increases in the Revolving Commitments of the Increasing Lenders plus the Revolving Commitments of
the Additional Lenders upon giving effect to the Commitment Increase shall not in the aggregate
exceed the amount of the Commitment Increase. The Borrower shall provide prompt notice of any
proposed Commitment Increase pursuant to this Section 2.15 to the Administrative Agent and the
Lenders.

          (b) Any Commitment Increase shall become effective upon (i) the receipt by the Administrative
Agent of (A) an agreement in form and substance satisfactory to the Administrative Agent signed by
the Borrower, each Increasing Lender and each Additional Lender, setting forth the new Revolving
Commitment of each such Lender and setting forth the agreement of each Additional Lender to become
a party to this Agreement and to be bound by all the terms and provisions hereof binding upon each
Lender, and (B) such evidence of appropriate authorization on the part of the Borrower with respect
to the Commitment Increase and such opinions of counsel for the Borrower with respect to the
Commitment Increase as the Administrative Agent may reasonably request, and (ii) receipt by the
Administrative Agent of a certificate (the statements contained in which shall be true) of a
Responsible Officer of the Borrower stating that both before and after giving effect to such
Commitment Increase (A) no Event of Default has occurred and is continuing, and (B) all
representations and warranties made by the Borrower in this Agreement are true and correct in all
material respects, unless such representation or warranty relates to an earlier date.

          (c) The Borrower shall prepay any Advances outstanding on the effective date of such
Commitment Increase to the extent necessary to keep the outstanding Revolving Advances ratable with
any revised Pro Rata Share arising from any nonratable increases in the Revolving Commitments under
this Section 2.15.

          (d) Notwithstanding any provision contained herein to the contrary, from and after the date of
any Commitment Increase, all calculations and payments of interest on the Advances shall take into
account the actual Revolving Commitment of each Lender and the principal amount outstanding of each
Advance made by such Lender during the relevant period of time.

     Section 2.16 Lender Replacement.

          (a) Right to Replace. The Borrower shall have the right to replace each Lender
affected by a condition under Sections 2.2(c)(v), 2.2(c)(viii), 2.9, 2.11 or 2.12 for more than 30
days, each Lender that is a Non-Consenting Lender under Section 2.19 and each Lender that is due
interest based on the Mandatory Cost Rate (each such affected Lender, an “Affected Lender”)
in accordance with the procedures in this Section 2.16 and provided that no reduction of the total
Revolving Commitments occurs as a result thereof.

          (b) First Right of Refusal; Replacement.

     (i) Upon the occurrence of any condition permitting the replacement of a Lender, each
Lender which is not an Affected Lender shall have the right, but not the obligation, to
elect to increase its respective Revolving Commitment by an amount not to exceed the amount
of the Revolving Commitments of the Affected Lenders, which election shall be made by
written notice from each such Lender to the Administrative Agent and the Borrower given
within 30 days
 after the date such condition occurs specifying the amount of such proposed increase in
such Lender’s Revolving Commitment.

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     (ii) If the aggregate amount of the proposed increases in Revolving Commitments of all
such Lenders making such an election is in excess of the Revolving Commitments of the
Affected Lenders, (A) the Revolving Commitments of the Affected Lenders shall be allocated
pro rata among such Lenders based on the respective amounts of the proposed increases to
Revolving Commitments elected by each of such Lenders, and (B) the respective commitments of
such Lenders shall be increased by the respective amounts as so allocated so that after
giving effect to such termination and increases the aggregate amount of the Revolving
Commitments of the Lenders will be the same as prior to such termination.

     (iii) If the aggregate amount of the proposed increases to Revolving Commitments of all
Lenders making such an election is less than the Revolving Commitments of the Affected
Lenders, (A) the respective Revolving Commitments of such Lenders shall be increased by the
respective amounts of their proposed increases, and (B) the Borrower shall add additional
Lenders which are Eligible Assignees to this Agreement to replace such Affected Lenders,
which additional Lenders would have aggregate Revolving Commitments no greater than those of
the Affected Lenders minus the amounts thereof assumed by the other Lenders pursuant to such
increases.

          (c) Procedure. Any assumptions of Revolving Commitments pursuant to this Section 2.16
shall be made by the purchasing Lender or Eligible Assignee and the selling Lender by entering into
an Assignment and Assumption and by following the procedures in Section 9.6 for adding a Lender.
In connection with the increase of the Revolving Commitments of any Lender or the introduction of
any Eligible Assignee pursuant to the foregoing paragraph (b), each Lender with an increased
Revolving Commitment and each new Eligible Assignee shall purchase from the Affected Lenders at par
such Lender’s or such new Lender’s ratable share of the outstanding Advances and funded
participations of the Affected Lenders and shall be automatically deemed to have assumed such
Lender’s or such new Lender’s ratable share of the Affected Lenders’ participations in Letter of
Credit Exposure.

     Section 2.17 Currency Fluctuations, Mandatory Prepayments and Deposits in the Cash
Collateral Accounts.

          (a) Not later than 1:00 p.m., Houston, Texas time, on each Computation Date, the
Administrative Agent shall determine the Exchange Rate as of such Computation Date and give notice
thereof to the Borrower, each Lender, Swingline Lender and Issuing Lender. The Exchange Rate so
determined shall become effective on the first Business Day after such Computation Date and shall
remain effective through the next succeeding Computation Date.

          (b) If, on any Computation Date, the Dollar Amount of the sum of the outstanding principal
amount of Revolving Advances plus the outstanding principal amount of Swingline Advances plus the
Letter of Credit Exposure exceeds an amount equal to 102% of the aggregate Revolving Commitments
then in effect, then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders, and the Borrower shall within five (5) Business Days thereafter prepay Advances, or if the
Advances have been repaid or prepaid in full, make deposits into the Cash Collateral Account, such
that after giving effect to such prepayment of Advances or deposits into the Cash Collateral
Account, the Dollar Amount of the sum of the outstanding principal amount of Revolving Advances
plus the outstanding principal amount of Swingline Advances plus the Letter of Credit Exposure does
not exceed the aggregate Revolving Commitments then in effect.

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          (c) If any currency shall cease to be an Agreed Currency as provided in the last sentence of
the definition of “Agreed Currency”, then promptly, but in any event within five (5) Business Days
of receipt of the notice from the Administrative Agent provided for in such sentence, the Borrower
shall repay all Advances funded and denominated in such affected currency or Convert such Advances
into Advances in Dollars or another Agreed Currency, subject to the other terms set forth in
Article II.

          (d) Each prepayment pursuant to this Section 2.17 shall be accompanied by accrued interest on
the amount prepaid to the date of such prepayment and amounts, if any, required to be paid pursuant
to Section 2.8 as a result of such prepayment being made on such date.

          (e) Each payment of any Advance pursuant to this Section 2.17 or any other provision of this
Agreement shall be made in a manner such that all Advances comprising part of the same Borrowing
are paid in whole or ratably in part and each payment of an Advance shall be made in the Designated
Currency in which such Advance was funded.

     Section 2.18 Market Disruption. Notwithstanding the satisfaction of all conditions
referred to herein with respect to any proposed Borrowing consisting of Eurocurrency Advances
denominated in any Foreign Currencies, if there shall occur on or prior to the date of such
Borrowing any change in national or international financial, political or economic conditions or
currency exchange rates or exchange controls which would in the reasonable opinion of the
Administrative Agent or the Majority Lenders, make it impracticable for such Borrowing to be
denominated in the Agreed Currency designated by the Borrower, then the Administrative Agent shall
forthwith give notice thereof to the Borrower and the Lenders, and such Advances shall not
thereafter be denominated and funded in such Agreed Currency but shall, except as otherwise set
forth in Article II, be made on such date in Dollars, in an aggregate principal amount equal to the
Dollar Amount of the aggregate principal amount specified in the related Notice of Borrowing, as
the case may be, as Prime Rate Advances to the Borrower, unless the Borrower notifies the
Administrative Agent at least one Business Day before such date that it elects not to borrow on
such date.

     Section 2.19 Extension of Maturity Date.

          (a) Not earlier than 90 days prior to, nor later than 30 days prior to, each anniversary of
the Closing Date, the Borrower may, upon notice to the Administrative Agent (which shall promptly
notify the Lenders), request a one year extension of the Maturity Date then in effect (the
“Present Maturity Date”). This option may be exercised only twice. Within 30 days of
delivery of such notice, each Lender shall notify the Administrative Agent whether or not it
consents to such extension (which consent may be given or withheld in such Lender’s sole and
absolute discretion). Any Lender not responding within the above time period shall be deemed not
to have consented to such extension. The Administrative Agent shall promptly notify the Borrower
and the Lenders of the Lenders’ responses.

          (b) The Maturity Date shall be extended only if the consenting Lenders (the “Consenting
Lenders”) constitute Majority Lenders and only if the Revolving Commitments of the Consenting
Lenders are at least equal to the Outstandings, after giving effect to the prepayment of Advances
to Non-Consenting Lenders. If so extended, the Maturity Date, as to the Consenting Lenders, shall
be extended to the same date in the following year, effective as of the Maturity Date then in
effect (such extended Maturity Date being the “Extension Maturity Date”). All non
consenting Lenders (“Non-Consenting Lenders”) shall continue to be subject to the Maturity
Date in effect prior to the effectiveness of the Extension Maturity Date (such existing Maturity
Date being the “Present Maturity Date”). The Administrative Agent and the Borrower shall
promptly confirm to the Lenders such extension and the Extension Maturity Date. As a condition
precedent to such extension, the Borrower shall pay or prepay all Advances, interest thereon and
all other amounts due each Non-Consenting Lender on or before the Present Maturity Date, and shall
deliver to the Administrative Agent a certificate of the Borrower (in

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sufficient copies for each Lender) signed by a Responsible Officer of the Borrower (i)
certifying and attaching the resolutions adopted by the Borrower approving or consenting to such
extension and (ii) certifying that, before and after giving effect to such extension, (A) the
representations and warranties contained in Article IV and the other Credit Documents are true and
correct in all material respects, except to the extent that such representations and warranties
expressly relate solely to an earlier date, in which case they shall have been true and correct in
all material respects as of such earlier date, and except that for purposes of this Section 2.19,
the representations and warranties contained in Section 4.6 shall be deemed to refer to the most
recent statements furnished pursuant to subsection (b) of Section 5.6, and (B) no Default exists.
If the Maturity Date has been extended, each Consenting Lender shall automatically be deemed to
have purchased participations in each Letter of Credit, the related Letter of Credit Exposure, and
each Swingline Advance equal to such Consenting Lender’s Pro Rata Share thereof after giving effect
to the departure of the Non-Consenting Lenders and the elimination of their Revolving Commitments.

          (c) This Section shall supersede any provisions in Section 2.14 or 9.1 to the contrary.

          (d) The Borrower shall prepay any Advances outstanding on the Present Maturity Date (and pay
any additional amounts required pursuant to Section 2.8) or borrow additional amounts to the extent
necessary to keep outstanding Revolving Advances ratable with any revised and new Revolving
Commitment of all Consenting Lenders effective as of the Present Maturity Date.

ARTICLE III

CONDITIONS OF LENDING

     Section 3.1 Conditions Precedent to Initial Borrowings and the Initial Letter of
Credit. The obligations of each Lender to make the initial Advance and of any Issuing Lender
to issue an initial Letter of Credit, including the deemed issuance of the Existing Letters of
Credit, shall be subject to the conditions precedent that:

          (a) Documentation. The Administrative Agent shall have received the following duly
executed by all the parties thereto, in form and substance satisfactory to the Administrative
Agent, and in sufficient copies for each Lender:

     (i) this Agreement;

     (ii) the Notes (to the extent requested by any Lender under Section 2.2(g));

     (iii) a certificate from a Responsible Officer of the Borrower dated as of the Closing
Date stating that as of the Closing Date (A) all representations and warranties of the
Borrower set forth in this Agreement and the Credit Documents to which it is a party are
true and correct in all material respects; (B) no Default or Event of Default has occurred
and is continuing; and (C) the conditions in this Section 3.1 have been met;

     (iv) a certificate of the Secretary or an Assistant Secretary of the Borrower dated as
of the date of this Agreement certifying as of the date of this Agreement (A) copies of the
articles or certificate of incorporation and bylaws or other organizational documents of the
Borrower, together with all amendments thereto, (B) resolutions of the Board of Directors of
such Person with respect to the transactions herein contemplated, and (C) the names and true
signatures of officers of the Borrower authorized to sign the Credit Documents to which the
Borrower is a party (including Notices of Borrowing and requests for Letters of Credit).

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     (v) certificate of good standing and existence for the Borrower certified by the
appropriate governmental officer in its jurisdiction of formation;

     (vi) a favorable opinion of each of (A) Haynes and Boone, LLP, counsel to the Borrower,
and (B) Dwight Rettig, general counsel of the Borrower, each dated as of the Closing Date
and in form and substance satisfactory to the Administrative Agent; and

     (vii) such other documents, governmental certificates, and agreements as the
Administrative Agent may reasonably request.

          (b) Representations and Warranties. The representations and warranties contained in
this Agreement and each other Credit Document shall be true and correct in all material respects.

          (c) Fees. (i) All fees, costs, and expenses of Wells Fargo and its affiliates for
which invoices have been presented (including legal fees and expenses of counsel to the
Administrative Agent) to be paid on the Closing Date shall have been paid. (ii) The Borrower shall
have paid to Wells Fargo the fees agreed to pursuant to the terms of the Agent’s Fee Letter.

          (d) Termination of Existing Credit Agreements. The Administrative Agent shall have
received sufficient evidence indicating that contemporaneously with the execution and closing of
this Agreement all obligations of the Borrower to the lenders and agents under the Existing Credit
Agreements shall have been paid in full (other than with respect to the letters of credit issued
thereunder which, on the Closing Date, will constitute Letters of Credit issued hereunder) and the
Existing Credit Agreements shall be terminated (excluding any obligations which expressly survive
the repayment of the amounts owing under the Existing Credit Agreements).

          (e) 364-Day Credit Agreement; Consummation of the Merger. The Administrative Agent
shall have received sufficient evidence indicating that contemporaneously with the closing of this
Agreement and the funding of the initial Advances, or if earlier, the issuance of Letters of Credit
or deemed issuance of Existing Letters of Credit hereunder (i) the 364-Day Credit Agreement shall
have been executed and entered into by the parties thereto and all conditions precedent to the
making of advances thereunder have been met (other than the closing of this Agreement), and (ii)
all actions necessary to consummate the Merger shall have been taken in accordance with Legal
Requirements and in accordance with the terms of the Merger Documents, without amendment or waiver
of any material provision thereof from the forms of such documents provided to and reviewed by the
Administrative Agent (except as consented to by the Administrative Agent which consent shall not be
unreasonably withheld or delayed) and all applicable waiting periods have expired.

          (f) Termination of Bridge Facilities. The Administrative Agent shall have received
sufficient evidence indicating that contemporaneously with the execution and closing of this
Agreement all bridge credit facilities or other financial accommodations made or agreed to be made
by Wells Fargo Bank, N.A. as a lender or administrative agent and related to the Merger (but not
including under this Agreement) shall have been terminated.

     Section 3.2 Conditions Precedent for each Borrowing or Letter of Credit. The
obligation of each Lender to fund an Advance on the occasion of each Borrowing (other than the
Conversion or continuation of any existing Borrowing and other than a Mandatory Revolving
Borrowing) and of each Issuing Lender to issue or increase or extend any Letter of Credit shall be
subject to the further conditions precedent that on the date of such Borrowing or the issuance or
increase or extension of such Letter of Credit the following statements shall be true (and each of
the giving of the applicable Notice of Borrowing and the acceptance by the Borrower of the proceeds
of such Borrowing or the issuance or

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increase or extension of such Letter of Credit shall constitute a representation and warranty
by the Borrower that on the date of such Borrowing or the issuance or increase or extension of such
Letter of Credit such statements are true):

          (a) the representations and warranties contained in this Agreement (other than the
representation and warranty made under Section 4.15(b)) and each of the other Credit Documents are
true and correct in all material respects on and as of the date of such Borrowing or the issuance
or increase or extension of such Letter of Credit, before and after giving effect to such Borrowing
or to the issuance or increase or extension of such Letter of Credit and to the application of the
proceeds from such Borrowing, as though made on and as of such date, except to the extent that any
such representation or warranty expressly relates solely to an earlier date, in which case it shall
have been true and correct in all material respects as of such earlier date; and

          (b) no Default has occurred and is continuing or would result from such Borrowing or from the
application of the proceeds therefrom.

     Section 3.3 Additional Condition Precedent for Initial Borrowing through Authorized
Agents. The obligation of the Lenders (or the Issuing Lenders, as the case may be) to provide
the first Borrowing, Conversion or continuation of an existing Borrowing, or issuance, increase or
extension of a Letter of Credit that is requested by the Borrower through an Authorized Agent
(“First Authorized Agent Request”), shall be subject to the further condition precedent
that on or prior to the date of the First Authorized Agent Request, the Administrative Agent shall
have received from the Borrower (and the applicable Issuing Lender and applicable Swingline Lender
shall have received from the Administrative Agent) a secretary’s certificate (a) confirming that
the resolutions of the Board of Directors of the Borrower delivered in satisfaction of Section
3.1(a)(iv) are still in full force and effect, and have not been amended or revised, (b) attaching
a true and correct copy of the instrument or agreement whereby such officer, or if appropriate, the
director of the applicable Subsidiary of the Borrower was appointed by a Responsible Officer of the
Borrower as an “Authorized Agent” and verifying the incumbency of such Responsible Officer, and (c)
attaching a true and correct copy of an officer’s, or if appropriate, a director’s certificate of
the relevant Subsidiary attesting to the incumbency of the Person so designated as the Authorized
Agent (which shall include a specimen signature of such Person and show that such Person holds one
of the offices specified in the Board Resolutions of the Borrower confirmed in clause (a).)

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants as follows:

     Section 4.1 Corporate Existence; Subsidiaries. Each of the Borrower and its
Subsidiaries is a corporation, partnership or limited liability company duly organized, validly
existing, and in good standing under the laws of the jurisdiction of its formation and in good
standing and qualified to do business in each jurisdiction where its ownership or lease of property
or conduct of its business requires such qualification and where a failure to be qualified or to be
in good standing could reasonably be expected to have a Material Adverse Effect. As of December
31, 2007 and after giving pro forma effect to the Merger, the Borrower has no Subsidiaries other
than (a) the Subsidiaries of Grant Prideco, Inc. listed in an exhibit to the Form 10-K filed by
Grant Prideco, Inc on February 29, 2008 with the SEC for the fiscal year ended December 31, 2007
and (b) the Subsidiaries of the Borrower listed in an exhibit to the Form 10-K filed by the
Borrower on February 29, 2008 with the SEC for the fiscal year ended December 31, 2007.

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     Section 4.2 Authorization and Validity. The execution, delivery, and performance by
the Borrower of the Credit Documents to which it is a party and the consummation of the
transactions contemplated hereby and thereby (a) are within the Borrower’s power and authority, and
(b) have been duly authorized by all necessary corporate action.

     Section 4.3 Corporate Power. The execution, delivery, and performance by the Borrower
of the Credit Documents to which it is a party and the consummation of the transactions
contemplated hereby and thereby (a) do not contravene (i) the Borrower’s articles or certificate of
incorporation, bylaws or other organizational documents or (ii) any Legal Requirement or any
contractual restriction binding on or affecting the Borrower or its Property, the contravention of
which could reasonably be expected to have a Material Adverse Effect, and (b) will not result in or
require the creation or imposition of any Lien prohibited by this Agreement. At the time of each
Borrowing and each issuance, extension or amendment of a Letter of Credit, such Borrowing
(including any requested by an Authorized Agent on behalf of the Borrower) and such issuance,
extension or amendment of a Letter of Credit and the use of the proceeds thereof will be within the
Borrower’s corporate powers, will have been duly authorized by all necessary corporate action,
(A) will not contravene (1) the Borrower’s certificate or articles of incorporation or bylaws or
(2) any Legal Requirement or contractual restriction binding on or affecting the Borrower, the
contravention of which could reasonably be expected to have a Material Adverse Effect, and (B) will
not result in or require the creation or imposition of any Lien prohibited by this Agreement.

     Section 4.4 Authorization and Approvals. No authorization or approval or other action
by, and no notice to or filing with, any Governmental Authority is required for the due execution,
delivery and performance by the Borrower of the Credit Documents to which it is a party or the
consummation of the transactions contemplated thereby. At the time of each Borrowing and each
issuance, extension or amendment of a Letter of Credit, no authorization or approval or other
action by, and no notice to or filing with, any Governmental Authority will be required for such
Borrowing, such issuance, extension or amendment of a Letter of Credit or the use of the proceeds
thereof.

     Section 4.5 Enforceable Obligations. This Agreement, the Notes, and the other Credit
Documents to which the Borrower is a party have been duly executed and delivered by the Borrower.
Each Credit Document is the legal, valid, and binding obligation of the Borrower, enforceable
against the Borrower in accordance with its terms, except as such enforceability may be limited by
any applicable bankruptcy, insolvency, reorganization, moratorium, or similar law affecting
creditors’ rights generally and by general principles of equity (whether considered in proceeding
at law or in equity).

     Section 4.6 Financial Statements. The audited Consolidated balance sheet and related
Consolidated statements of operations, shareholders’ equity and cash flows, of the Borrower and its
consolidated Subsidiaries set forth in the Form 10-K filed by the Borrower on February 29, 2008
with the SEC for the fiscal year ended December 31, 2007, fairly present in all material respects
the Consolidated financial condition of the Borrower and its consolidated Subsidiaries as at such
date and the results of the operations of the Borrower and its consolidated Subsidiaries for the
year ended on such date, and such balance sheet and statements were prepared in accordance with
GAAP. The audited Consolidated balance sheet and related Consolidated statements of operations,
shareholders’ equity and cash flows of Grant Prideco, Inc. and its consolidated Subsidiaries set
forth in the Form 10-K filed by Grant Prideco, Inc. on February 29, 2008 with the SEC for the
fiscal year ended December 31, 2007, fairly present in all material respects the Consolidated
financial condition of Grant Prideco, Inc. and its consolidated Subsidiaries as at such date and
the results of the operations of Grant Prideco, Inc. and its consolidated Subsidiaries for the year
ended on such date, and such balance sheet and statements were prepared in accordance with GAAP.

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     Section 4.7 True and Complete Disclosure. No information, exhibit, report,
representation, warranty, or other statement furnished or made by the Borrower or any Subsidiary
(or on behalf of the Borrower or any Subsidiary) to the Administrative Agent or any Lender in
connection with the negotiation of, or compliance with, this Agreement or any other Credit Document
contains any untrue statement of a material fact or omits to state any material fact necessary to
make the statements contained therein not misleading in any material respect in light of the
circumstances in which they were made as of the date of this Agreement. All projections,
estimates, and pro forma financial information furnished by the Borrower or on behalf of the
Borrower were prepared on the basis of assumptions, data, information, tests, or conditions
believed to be reasonable at the time such projections, estimates, and pro forma financial
information were furnished.

     Section 4.8 Litigation. There is no pending or, to the knowledge of any of their
executive officers, threatened, litigation, arbitration, governmental investigation, inquiry,
action or proceeding affecting the Borrower or any of its Subsidiaries before any court,
Governmental Authority or arbitrator, which could reasonably be expected to have a Material Adverse
Effect or which purports to affect the legality, validity, binding effect or enforceability of this
Agreement, any Note, or any other Credit Document.

     Section 4.9 Use of Proceeds.

          (a) Advances and Letters of Credit. The proceeds of the Advances and the Letters of
Credit will be used by the Borrower (i) to fund the consideration for the Merger, (ii) refinance
existing Indebtedness, (iii) for working capital and general corporate purposes of the Borrower and
its Subsidiaries, and (iv) to support commercial paper issued by the Borrower.

          (b) Regulations. Neither the Borrower nor any of its Subsidiaries has taken any
action that could result in a violation by the Administrative Agent, any Issuing Lender, any
Swingline Lender or any Lender in connection with or relating to this Agreement or any other Credit
Document and the advances and other transactions contemplated hereby and thereby, of Regulations T,
U, or X of the Federal Reserve Board, as the same is in effect from time to time, and all official
rulings and interpretations thereunder or thereof . The Borrower is not engaged and will not
engage, principally or as one of its important activities, in the business of purchasing or
carrying margin stock (within the meaning of Regulation U issued by the Federal Reserve Board), or
extending credit for the purpose of purchasing or carrying margin stock. Following the application
of the proceeds of each Borrowing or drawing under each Letter of Credit, not more than 25% of the
value of the assets (either of the Borrower only or of the Borrower and its Subsidiaries on a
consolidated basis) subject to the provisions of Section 6.1 or Section 6.5 or subject to any
restriction contained in any agreement or instrument between the Borrower and any Lender or any
Affiliate of any Lender relating to Indebtedness and within the scope of Section 7.1(d) will be
margin stock.

     Section 4.10 Investment Company Act. Neither the Borrower nor any of its Subsidiaries
is an “investment company” or a company “controlled” by an “investment company” within the meaning
of the Investment Company Act of 1940, as amended.

     Section 4.11 Taxes. All federal, state, local and foreign tax returns, reports and
statements required to be filed (after giving effect to any extension granted in the time for
filing) by the Borrower, its Subsidiaries or any member of the Controlled Group (hereafter
collectively called the “Tax Group”) have been filed with the appropriate Governmental
Authorities in all jurisdictions in which such returns, reports and statements are required to be
filed, except (a) where contested in good faith and by appropriate proceedings or (b) where the
non-filing thereof could not reasonably be expected to result in a Material Adverse Effect. All
taxes and other impositions due and payable by the Tax Group have been

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timely paid prior to the date on which any fine, penalty, interest, late charge or loss may be
added thereto for non-payment thereof except (i) where contested in good faith and by appropriate
proceedings and as to which adequate reserves have been established or (ii) where the non-payment
thereof could not reasonably be expected to result in a Material Adverse Effect. Neither the
Borrower nor any member of the Tax Group has given, or been requested to give, a waiver of the
statute of limitations relating to the payment of any federal, state, local or foreign taxes or
other impositions.

     Section 4.12 Pension Plans. No Termination Event or Reportable Event has occurred
with respect to any Plan that would result in an Event of Default under Section 7.1(g) or that
could reasonably be expected to result in a Material Adverse Effect, and, except for matters that
could not reasonably be expected to result in a Material Adverse Effect, each Plan has complied
with and been administered in all material respects in accordance with applicable provisions of
ERISA and the Code. No “accumulated funding deficiency” (as defined in Section 302 of ERISA) has
occurred and there has been no excise tax imposed under Section 4971 of the Code except for the
occurrence of such funding deficiency or the imposition of such taxes that could not reasonably be
expected to result in a Material Adverse Effect. Neither the Borrower nor any member of the
Controlled Group has had a complete or partial withdrawal from any Multiemployer Plan for which
there is any withdrawal liability that could reasonably be expected to result in a Material Adverse
Effect or an Event of Default under Section 7.1(g). Except for matters that could not reasonably
result in a Material Adverse Effect, as of the most recent valuation date applicable thereto,
neither the Borrower nor any member of the Controlled Group would become subject to any liability
under ERISA if the Borrower or any Subsidiary of the Borrower has received notice that any
Multiemployer Plan is insolvent or in reorganization.

     Section 4.13 Condition of Property; Casualties. The Borrower and its Subsidiaries
will have good title, free of all Liens other than Permitted Liens, to all of material Property and
assets reflected in the Borrower’s recent Consolidated financial statements provided to
Administrative Agent and the Lenders as owned by the Borrower and its Subsidiaries. All Properties
used or to be used in the continuing operations of the Borrower and each of its Subsidiaries, are
and will continue to be in good repair, working order and condition, normal wear and tear excepted
except to the extent that could not reasonably be expected to result in a Material Adverse Effect.
Since December 31, 2007, neither the business nor the Properties of the Borrower and its
Subsidiaries, taken as a whole, has been affected so to have a Material Adverse Effect, as a result
of any fire, explosion, earthquake, flood, drought, windstorm, accident, strike or other labor
disturbance, embargo, requisition or taking of property or cancellation of contracts, permits or
concessions by a Governmental Authority, riot, activities of armed forces or acts of God or of any
public enemy.

     Section 4.14 Insurance. The Borrower and each of its Subsidiaries carry insurance
with reputable insurers in respect of such of their respective Properties, in such amounts and
against such risks as is customarily maintained by other Persons of similar size engaged in similar
businesses or, self-insure to the extent that is customary for Persons of similar size engaged in
similar businesses.

     Section 4.15 No Defaults; No Material Adverse Effect.

          (a) No Default or Event of Default has occurred and is continuing.

          (b) No Material Adverse Effect has occurred since December 31, 2007.

     Section 4.16 Permits, Licenses, etc. The Borrower and its Subsidiaries possess all
certificates of public convenience, authorizations, permits, licenses, patents, patent rights or
licenses, trademarks, trademark rights, trade names rights and copyrights which are material to the
conduct of its business
 except where the failure to so possess could not reasonably be expected to result in a
Material Adverse Effect.

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     Section 4.17 Compliance with Laws. The Borrower and its Subsidiaries have complied
with all applicable Legal Requirements having jurisdiction over the conduct of their respective
businesses or the ownership of their respective Property except for any failure to comply which
could not reasonably be expected to have a Material Adverse Effect.

ARTICLE V

AFFIRMATIVE COVENANTS

     So long as any Obligation shall remain unpaid, any Letter of Credit shall remain outstanding,
or any Lender shall have any Revolving Commitment hereunder, the Borrower agrees, unless the
Majority Lenders shall otherwise consent in writing, to comply with the following covenants.

     Section 5.1 Compliance with Laws, Etc. The Borrower will, and will cause each of its
Subsidiaries to, comply in all respects with all Legal Requirements to which it or its Properties
may be subject except for any failure to comply which could not reasonably be expected to have a
Material Adverse Effect.

     Section 5.2 Insurance. The Borrower will, and will cause each of its material
Subsidiaries to, maintain insurance with responsible and reputable insurance companies or
associations in such amounts and covering such risks as are usually carried by companies engaged in
similar businesses and owning similar properties in the same general areas in which the Borrower or
such Subsidiary operates, provided that the Borrower or such Subsidiary may self-insure to
the extent and in the manner normal for similarly situated companies of like size, type and
financial condition that are part of a group of companies under common control. Upon the written
request of Administrative Agent, the Borrower shall deliver certificates evidencing such insurance
and copies of the underlying policies to the Administrative Agent and any Lender as they are
available.

     Section 5.3 Preservation of Existence, Etc. The Borrower will, and will cause each of
its Subsidiaries to, preserve and maintain its existence, rights, franchises and privileges in the
jurisdiction of its formation, and qualify and remain qualified, and cause each such Subsidiary to
qualify and remain qualified, as a foreign entity in each jurisdiction in which qualification is
necessary or desirable in view of its business and operations or the ownership of its properties,
and, in each case, where failure to qualify or preserve and maintain its existence, rights,
franchises or privileges could reasonably be expected to have a Material Adverse Effect;
provided, however, that nothing contained in this Section 5.3 shall prevent any transaction
permitted by Section 6.5.

     Section 5.4 Payment of Taxes, Etc. The Borrower will, and will cause each of its
Subsidiaries to, timely file complete and correct United States federal and applicable foreign,
state and local tax returns required by applicable Legal Requirements and pay when due (a) all
taxes, assessments and governmental charges or levies imposed upon it or upon its income, profits
or Property prior to the date on which penalties attach thereto, and (b) all lawful claims which,
if unpaid, might by law become a Lien upon its Property; provided, however, that
neither the Borrower nor any such Subsidiary shall be required to file any such tax returns or pay
or discharge any such tax, assessment, charge, levy, or claim (i) which is being contested in good
faith and by appropriate proceedings, and with respect to which reserves in conformity with GAAP
have been established, or (ii) the non-payment of which could not reasonably be expected to result
in a Material Adverse Effect.

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     Section 5.5 Visitation Rights. The Borrower will, and will cause its material
Subsidiaries to, permit the Administrative Agent or any of its agents or representatives thereof,
and at any time that an Event of Default exists, any Lender or any of its agents or representatives
thereof, to inspect any of the Property, books and financial records of the Borrower and each
material Subsidiary, to examine and make copies of and abstracts from the records and books of
account of the Borrower and each material Subsidiary, and to discuss the affairs, finances and
accounts of the Borrower and each material Subsidiary with, and to be advised as to the same by,
any of their respective officers or directors upon reasonable prior written notice and at such
reasonable times and intervals as may be mutually agreed upon by the Administrative Agent or such
Lender, as applicable, and the Borrower.

     Section 5.6 Reporting Requirements. The Borrower will furnish to the Administrative
Agent:

          (a) Quarterly Financials. As soon as available and in any event not later than 5
Business Days after the Form 10-Q of the Borrower is required to be filed with the SEC (or if no
such requirement exists, then no later than 45 days after each fiscal quarter end), (i) to the
extent not otherwise provided in the Form 10-Q for such fiscal quarter end, the unaudited
Consolidated balance sheets of Borrower as of the end of such quarter and the related unaudited
statements of income, shareholders’ equity and cash flows of the Borrower for the period commencing
at the end of the previous year and ending with the end of such quarter, and the corresponding
figures as at the end of, and for, the corresponding period in the preceding fiscal year, all in
reasonable detail and duly certified with respect to such statements (subject to year-end audit
adjustments) by a senior financial officer of the Borrower as having been prepared in accordance
with GAAP, (ii) the Form 10-Q filed with the SEC for such fiscal quarter end, and (iii) a
Compliance Certificate duly executed by a Responsible Officer;

          (b) Annual Financials. As soon as available and in any event not later than 5
Business Days after the Form 10-K of the Borrower is required to be filed with the SEC (or if no
such requirement exists, then no later than 90 days after each fiscal year end), (i) to the extent
not otherwise provided in the Form 10-K for such fiscal year end, an unqualified (except for
qualifications relating to changes in accounting principles or practices reflecting changes in
generally accepted accounting principles and required or approved by the Borrower’s independent
certified public accountants) audit report and opinion for such year for the Borrower, including
therein audited Consolidated balance sheets of the Borrower and its Consolidated Subsidiaries as of
the end of such fiscal year and the related Consolidated statements of income, shareholders’ equity
and cash flows of the Borrower for such fiscal year, and the corresponding figures as at the end
of, and for, the preceding fiscal year, and, in the case of such Consolidated financial statements
certified by independent certified public accountants of recognized standing acceptable to the
Administrative Agent and including any management letters delivered by such accountants to the
Borrower in connection with such audit, (ii) the Form 10-K filed with the SEC for such fiscal year
end, and (iii) a Compliance Certificate duly executed by a Responsible Officer;

          (c) Securities Law Filings. Promptly after the sending or filing thereof, copies of
all proxy material, reports and other information which the Borrower or any of its Subsidiaries
sends to or files with the SEC or sends to any shareholder of the Borrower or of any of its
Subsidiaries;

          (d) Defaults. Promptly after the occurrence of each Default known to a Responsible
Officer of the Borrower or any of its material Subsidiaries, a statement of a Responsible Officer
of the Borrower setting forth the details of such Default and the actions which the Borrower has
taken and proposes to take with respect thereto;

50

 

          (e) ERISA Notices. Except as to any matter which could not reasonably be expected to
have a Material Adverse Effect, promptly (i) after the Borrower or any of its Subsidiaries knows or
has reason to know that any Termination Event or Reportable Event has occurred, (ii) after receipt
thereof by the Borrower or any of its Subsidiaries from the PBGC, copies of each notice received by
the Borrower or any such Subsidiary of the PBGC’s intention to terminate any Plan or to have a
trustee appointed to administer any Plan; and (iii) after receipt thereof by the Borrower or any of
its Subsidiaries from a Multiemployer Plan sponsor, a copy of each notice received by the Borrower
or any of its Subsidiaries concerning the imposition or amount of withdrawal liability pursuant to
Section 4202 of ERISA;

          (f) Environmental Notices. Promptly upon the knowledge of any Responsible Officer of
the Borrower of receipt thereof by the Borrower or any of its Subsidiaries, a copy of any form of
notice, summons or citation received from the United States Environmental Protection Agency, or any
other Governmental Authority directly engaged in protection of the environment or in overseeing
compliance with Environmental Laws, concerning (i) material violations or alleged violations of
Environmental Laws, which seeks to impose liability therefor and which, based upon information
reasonably available to the Borrower at the time or after such violation, could reasonably be
expected to have a Material Adverse Effect, (ii) any action or omission on the part of the Borrower
or any of its present or former Subsidiaries in connection with Hazardous Waste or Hazardous
Substances which, based upon information reasonably available to the Borrower at the time of such
receipt, could reasonably be expected to have a Material Adverse Effect, (iii) any notice of
potential responsibility under any Environmental Law which could reasonably be expected to have a
Material Adverse Effect, or (iv) the filing of a Lien other than a Permitted Lien upon, against or
in connection with the Borrower, its present or former Subsidiaries, or any of their leased or
owned Property, wherever located;

          (g) Other Governmental Notices or Actions. Promptly after receipt thereof by the
Borrower or any of its Subsidiaries, and the knowledge of such receipt by a Responsible Officer of
the Borrower or any inside counsel of the Borrower, a copy of any written notice, summons,
citation, or proceeding from any Governmental Authority which could reasonably be expected to have
a Material Adverse Effect;

          (h) Material Litigation. Promptly after any Responsible Officer of the Borrower or
any of its Subsidiaries having knowledge thereof, notice of (A) any pending or threatened
litigation, claim or any other action asserting any claim or claims against the Borrower or any of
its Subsidiaries which could reasonably be expected to have a Material Adverse Effect, (B) the
occurrence of any mandatory prepayment event, default or event of default under the Senior Note
Documents, and (C) any litigation or governmental proceeding of the type described in Section 4.8;

          (i) Material Changes. Prompt written notice of any condition or event of which the
Borrower or any Subsidiary has knowledge, which condition or event has resulted or may reasonably
be expected to have resulted in a Material Adverse Effect; and

          (j) Other Information. Such other information respecting the business or Properties,
or the condition or operations, financial or otherwise, of the Borrower, or any of its
Subsidiaries, as any Lender through the Administrative Agent may from time to time reasonably
request.

     Section 5.7 Maintenance of Property. The Borrower will, and will cause each of its
Subsidiaries to, do all things necessary to maintain, preserve, protect and keep its Property in
good repair, and make all necessary and proper repairs, renewals and replacements so that its
business carried on in connection therewith may be properly conducted at all times except to the
extent that the non-maintenance, non-preservation or non-protection of such Property in such
condition could not reasonably be expected to result in a Material Adverse Effect.

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     Section 5.8 Use of Proceeds. The Borrower will, and will cause each Subsidiary to,
use the proceeds of the Advances for the purposes set forth under Section 4.9. The Borrower will
not, nor will it permit any Subsidiary to, use any of the proceeds of the Advances or the Letters
of Credit to purchase or carry any “margin stock” (as defined in Regulation U) in violation of
Regulations T, U or X of the Federal Reserve Board, as the same is from time to time in effect, and
all official rulings and interpretations thereunder or thereof.

     Section 5.9 Pari Passu. The Obligations under this Agreement and the other Credit
Documents of the Borrower shall rank at least pari passu with and be equally and ratably secured as
the Senior Notes and all other senior unsecured Indebtedness of the Borrower.

ARTICLE VI

NEGATIVE COVENANTS

     So long as any Obligation shall remain unpaid, any Letter of Credit shall remain outstanding,
or any Lender shall have any Revolving Commitment, the Borrower agrees, unless the Majority Lenders
otherwise consent in writing, to comply with the following covenants.

     Section 6.1 Liens, Etc. The Borrower will not, or permit any of its Subsidiaries to,
create, assume, incur, or suffer to exist, any Lien of any kind on or in respect of any Property of
the Borrower or any of its Subsidiaries, whether now owned or hereafter acquired, except for the
following (“Permitted Liens”):

          (a) Liens securing the Obligations arising under this Agreement;

          (b) Liens securing other Indebtedness; provided that, the aggregate principal amount of such
Indebtedness at any time does not exceed 15% of the Borrower’s Consolidated Net Worth;

          (c) Liens arising in the ordinary course of business by operation of law in connection with
workers’ compensation, unemployment insurance, old age benefits, social security obligations,
taxes, assessments, statutory obligations or other similar charges; provided, that in each
case the obligation secured is not Indebtedness and is not overdue or, if overdue, is being
contested in good faith by appropriate proceedings and reserves in conformity with GAAP have been
provided therefor

          (d) good faith deposits, pledges or other Liens in connection with (or to obtain or support
letters of credit in connection with) bids, performance bonds, contracts or leases to which the
Borrower or its Subsidiaries are a party in the ordinary course of business; provided, that
in each case the obligation secured is not Indebtedness and is not overdue or, if overdue, is being
contested in good faith by appropriate proceedings and reserves in conformity with GAAP have been
provided therefor;

          (e) mechanics’, workmen, materialmen, landlords’, carriers’ or other similar Liens arising in
the ordinary course of business (or deposits to obtain the release of such Liens) provided,
that in each case the obligation secured is not Indebtedness and is not overdue or, if overdue, is
being contested in good faith by appropriate proceedings and reserves in conformity with GAAP have
been provided therefor;

          (f) Inchoate Liens under ERISA and liens for Taxes not yet due or which are being contested in
good faith by appropriate proceedings and reserves in conformity with GAAP have been provided
therefor;

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          (g) Liens arising out of judgments or awards against the Borrower or any of its Subsidiaries,
or in connection with surety or appeal bonds or the like in connection with bonding such judgments
or awards, the time for appeal from which or petition for rehearing of which shall not have expired
or for which the Borrower or such Subsidiary shall be prosecuting on appeal or proceeding for
review, and for which it shall have obtained a stay of execution or the like pending such appeal or
proceeding for review, and which would not constitute an Event of Default;

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

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

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

          (k) encumbrances, easements, restrictions, servitudes, permits, conditions, covenants,
exceptions or reservations in any property or rights-of-way of a Person for the purpose of roads,
pipelines, transmission lines, transportation lines, distribution lines, removal of gas, oil, coal,
metals, steam, minerals, timber or other natural resources, and other like purposes, or for the
joint or common use of real property, rights-of-way, facilities or equipment, or defects,
irregularity and deficiencies in title of any property or rights-of-way; provided, that in
each case the obligation secured is not Indebtedness and is not overdue or, if overdue, is being
contested in good faith by appropriate proceedings and reserves in conformity with GAAP have been
provided therefore;

          (l) zoning, planning and Environmental Laws and ordinances and municipal regulations;

          (m) financing statements filed by lessors of property (but only with respect to the property
so leased) and Liens under any conditional sale or title retention agreements entered into in the
ordinary course of business; provided, that in each case the obligation secured is not
Indebtedness, and

          (n) rights of lessees of equipment owned by the Borrower or any of its Subsidiaries.

     Section 6.2 Indebtedness.

          (a) The Borrower will not, and will not permit any of its Subsidiaries to, incur or permit to
exist any Indebtedness, unless the Borrower shall be in compliance, on a pro forma basis after
giving effect to such transactions, with the covenants contained in this Article VI recomputed as
of the last day of the most recently ended fiscal quarter of the Borrower as if the transaction in
question had occurred on the first day of each relevant period for testing such compliance.

          (b) Notwithstanding Section 6.2(a), the aggregate principal amount of all Indebtedness of
Subsidiaries of the Borrower (other than such Indebtedness owing to the Borrower or to a Subsidiary
of the Borrower) shall not exceed 15% of the Borrower’s Consolidated Net Worth at any time.

     Section 6.3 Senior Notes. The Borrower will not, and will not permit any Subsidiary
to, make any amendment or modification to the Senior Note Documents other than any such amendment,
supplement, change or modification that could not reasonably be expected to be materially adverse
to the

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Lenders and with respect to which the Borrower has provided to the Administrative Agent and
the Lenders a copy of the amendment promptly after the effective date or the date such amendment is
executed, if later.

     Section 6.4 Limitation on Certain Restrictions. The Borrower will not, nor will it
permit any of its material Subsidiaries to, directly or indirectly, create or otherwise permit to
exist or become effective any restriction on the ability of any of their Subsidiaries to (i) pay
dividends or make any other distributions on its capital stock, or any other interest or
participation in its profits, owned by the Borrower or pay any Indebtedness owed to the Borrower,
or (ii) make loans or advances to the Borrower or any of its Subsidiaries, except in either case
for restrictions existing under or by reason of any applicable Legal Requirement, this Agreement
and the other Credit Documents or in the Senior Note Documents and except for any restrictions
existing in connection with any Subsidiary acquired by the Borrower after the Closing Date which
imposition applies solely on such Subsidiary and its Subsidiaries, in which case the Borrower shall
either promptly cause the removal or release of any such restrictions or not advance the proceeds
of any Borrowing to such Subsidiary even if otherwise permitted by this Agreement. The Borrower
and its Subsidiaries shall not enter into any agreement other than this Agreement, the Credit
Documents and the Senior Note Documents prohibiting the creation or assumption of any Lien upon its
properties, revenues or assets, whether now owned or hereafter acquired (except in connection with
any Permitted Liens provided that restriction is limited to the property already subject to the
Lien), or prohibiting or restricting the ability of the Borrower to amend or otherwise modify this
Agreement or any Credit Document.

     Section 6.5 Merger, Consolidation or Acquisition; Asset Sales.

          (a) The Borrower will not, and will not permit any Subsidiary of the Borrower to, enter into
any Acquisition unless (i) on a pro forma basis, the Borrower is in compliance with Section 6.9
after giving effect to such Acquisition; and (ii) no Default or Event of Default shall have
occurred and be continuing before and after giving effect to such Acquisition.

          (b) The Borrower will not, and will not permit any Subsidiary of the Borrower to, directly or
indirectly, merge or consolidate with any Person (as a result of an Acquisition or otherwise)
unless (i) if the Borrower is being merged or consolidated, the Borrower is the surviving entity,
(ii) on a pro forma basis, the Borrower is in compliance with Sections 6.9 after giving effect to
such merger or consolidation; and (iii) no Default or Event of Event shall have occurred and be
continuing before and after giving effect to such merger or consolidation.

          (c) The Borrower and its Subsidiaries, taken as a whole, shall not sell, transfer or otherwise
dispose of (in one transaction or a series of transactions) all or substantially all of the
Borrower’s and its Subsidiaries’ assets (determined on a Consolidated basis).

     Section 6.6 Restricted Payments. The Borrower will not, and will not permit any of
its Subsidiaries to, make any Restricted Payment, except that (a) a Subsidiary of the Borrower may
make a Restricted Payment to the Borrower or to another Subsidiary of the Borrower, (b) a
Subsidiary of the Borrower may redeem any of its stock held by the Borrower or any Subsidiary of
the Borrower, and (c) the Borrower and its Subsidiaries may make any other Restricted Payment if no
Default has occurred and is continuing or would result therefrom.

     Section 6.7 Affiliate Transactions. The Borrower will not, and will not permit any of
its Subsidiaries to, directly or indirectly enter into or permit to exist any transaction or series
of transactions (including, but not limited to, the purchase, sale, lease or exchange of property,
the making of any investment, the giving of any guaranty, the assumption of any obligation or the
rendering of any service)

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with any of their Affiliates unless such transaction or series of transactions is on terms no
less favorable to the Borrower or the Subsidiary, as applicable, than those that could be obtained
in a comparable arm’s length transaction with a Person that is not such an Affiliate; provided
that, the Borrower and any of its Subsidiaries may guaranty or otherwise assume obligations of an
Affiliate to the extent permitted under Section 6.2 hereof.

     Section 6.8 Other Businesses. The Borrower will not, and will not permit any of its
Subsidiaries to, engage in any line of business other than the business in which the Borrower and
its Subsidiaries, taken as a whole, is presently engaged or other businesses reasonably related
thereto.

     Section 6.9 Maximum Leverage Ratio. The Borrower will not permit its Leverage Ratio
to be greater than 0.50 to 1.0 at the end of any fiscal quarter.

ARTICLE VII

REMEDIES

     Section 7.1 Events of Default. The occurrence of any of the following events shall
constitute an “Event of Default” under any Credit Document:

          (a) Payment. The Borrower shall fail to pay any principal of any Advance or any
Reimbursement Obligation when the same becomes due and payable as set forth in this Agreement, or
any interest on any Note or any fee or other amount payable hereunder or under any other Credit
Document within five Business Days after the same becomes due and payable;

          (b) Representation and Warranties. Any representation or warranty made or deemed to
be made (i) by the Borrower in this Agreement or in any other Credit Document, or (ii) by the
Borrower (or any of its officers) in connection with this Agreement or any other Credit Document,
shall prove to have been incorrect in any material respect when made or deemed to be made;

          (c) Covenant Breaches. (i) The Borrower shall fail to perform or observe any covenant
contained in Sections 5.3 or 5.6, or Article VI of this Agreement, or (ii) the Borrower shall fail
to perform or observe any term or covenant set forth in any Credit Document which is not covered by
clause (i) above or any other provision of this Section 7.1 if such failure shall remain unremedied
for 30 days after the earlier of the date written notice of such default shall have been given to
the Borrower by the Administrative Agent or any Lender or the date a Responsible Officer of the
Borrower has actual knowledge of such default;

          (d) Cross-Defaults. (i) The Borrower or any its Subsidiaries shall fail to pay any
principal of or premium or interest on its Indebtedness which is outstanding in a principal amount
of at least $125,000,000 individually or when aggregated with all such Indebtedness of the Borrower
or its Subsidiaries so in default (but excluding the Obligations) when the same becomes due and
payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise),
and such failure shall continue after the applicable grace period, if any, specified in the
agreement or instrument relating to such Indebtedness; (ii) any other event shall occur or
condition shall exist under any agreement or instrument relating to Indebtedness which is
outstanding in a principal amount of at least $125,000,000 individually or when aggregated with all
such Indebtedness of the Borrower and its Subsidiaries so in default, and shall continue after the
applicable grace period, if any, specified in such agreement or instrument, if the effect of such
event or condition is to accelerate, or to permit the acceleration of, the maturity of such
Indebtedness; (iii) any “Event of Default” under the 364-Day Credit Agreement shall have occurred;
or (iv) any Indebtedness referred to in clause (i), (ii) or (iii) above shall be declared to be due
and payable, or required to be prepaid (other than by a regularly scheduled required prepayment),

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prior to the stated maturity thereof; provided that, for purposes of this subsection
7.1(d), the “principal amount” of the obligations in respect of any Financial Contract at any time
shall be the maximum aggregate amount (giving effect to any netting agreements) that would be
required to be paid if such Financial Contract were terminated at such time;

          (e) Insolvency. The Borrower or any of its Subsidiaries shall generally not pay its
debts as such debts become due, or shall admit in writing its inability to pay its debts generally,
or shall make a general assignment for the benefit of creditors; or any proceeding shall be
instituted by or against the Borrower or any of its Subsidiaries seeking to adjudicate it a
bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief, or composition of it or its debts under any Legal Requirements relating to
bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee or other similar official for it or for any
substantial part of its property and, in the case of any such proceeding instituted against the
Borrower or any such Subsidiary, either such proceeding shall remain undismissed for a period of 30
days or any of the actions sought in such proceeding shall occur; or the Borrower or any of its
Subsidiaries shall take any corporate action to authorize any of the actions set forth above in
this paragraph (e);

          (f) Judgments. Any one or more judgments or orders for the payment of money in excess
of $125,000,000 in the aggregate (reduced for purposes of this paragraph for the amount in respect
of any such judgment or order that a reputable and creditworthy insurer has acknowledged being
payable under any valid and enforceable insurance policy) shall be rendered against the Borrower or
any of its Subsidiaries which, within 30 days from the date any such judgment is entered, shall not
have been discharged or execution thereof stayed pending appeal;

          (g) ERISA. (i) Any Person shall engage in any “prohibited transaction” (as defined in
Section 406 of ERISA or Section 1106 of the Code) involving any Plan, (ii) any “accumulated funding
deficiency” (as defined in Section 302 of ERISA), whether or not waived, shall exist with respect
to any Plan, (iii) a Reportable Event shall occur with respect to, or proceedings shall commence to
have a trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Plan,
which Reportable Event or commencement of proceedings or appointment of a trustee is likely to
result in the termination of such Plan for purposes of Title IV of ERISA, unless such Reportable
Event, proceedings or appointment are being contested by the Borrower in good faith and by
appropriate proceedings, (iv) any Plan shall terminate for purposes of Title IV of ERISA, (v) the
Borrower or any member of the Controlled Group shall incur any liability in connection with a
withdrawal from a Multiemployer Plan or the insolvency (within the meaning of Section 4245 of
ERISA) or reorganization (within the meaning of Section 4241 of ERISA) of a Multiemployer Plan,
unless such liability is being contested by the Borrower in good faith and by appropriate
proceedings, or (vi) any other event or condition shall occur or exist, with respect to a Plan; and
in each case in clauses (i) through (vi) above, such event or condition, together with all other
such events or conditions, if any, could subject the Borrower to any tax, penalty or other
liabilities in the aggregate exceeding $125,000,000; and

          (h) Change of Control. Any Change in Control shall occur.

     Section 7.2 Optional Acceleration of Maturity. If any Event of Default (other than an
Event of Default pursuant to paragraph (e) of Section 7.1) shall have occurred and be continuing,
then, and in any such event,

          (a) the Administrative Agent (i) shall at the request, or may with the consent, of the
Majority Lenders, by notice to the Borrower, declare the obligation of each Lender to make Advances
and the obligation of each Issuing Lender to issue, increase, or extend Letters of Credit to be
terminated,

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whereupon the same shall forthwith terminate, and (ii) shall at the request, or may with the
consent, of the Majority Lenders, by notice to the Borrower, declare all Obligations, including all
interest, Letter of Credit Obligations, and all other amounts payable under this Agreement, to be
forthwith due and payable, whereupon all such Obligations shall become and be forthwith due and
payable in full, without presentment, demand, protest or further notice of any kind (including any
notice of intent to accelerate or notice of acceleration), all of which are hereby expressly waived
by the Borrower, and

          (b) the Borrower shall, on demand of by the Administrative Agent at the request or with the
consent of the Majority Lenders, deposit with the Administrative Agent into the Cash Collateral
Account held with the Administrative Agent an amount of cash equal to the Letter of Credit
Exposure, without presentment, demand, protest or further notice of any kind (including any notice
of intent to accelerate or notice of acceleration), all of which are hereby expressly waived by the
Borrower.

     Section 7.3 Automatic Acceleration of Maturity. If any Event of Default pursuant to
paragraph (e) of Section 7.1 shall occur,

          (a) the obligation of each Lender to make Advances and the obligation of each Issuing Lender
to issue, increase, or extend Letters of Credit shall immediately and automatically be terminated
and all Obligations, including all interest, Letter of Credit Obligations, and all other amounts
payable under this Agreement shall immediately and automatically become and be due and payable in
full, without presentment, demand, protest or any notice of any kind (including any notice of
intent to accelerate or notice of acceleration), all of which are hereby expressly waived by the
Borrower; and

          (b) to the extent permitted by law or court order, the Borrower shall deposit with the
Administrative Agent into the Cash Collateral Account held by the Administrative Agent an amount of
cash equal to the Letter of Credit Exposure, without presentment, demand, protest or further notice
of any kind (including any notice of intent to accelerate or notice of acceleration), all of which
are hereby expressly waived by the Borrower.

     Section 7.4 Cash Collateral Account.

          (a) Pledge. The Borrower hereby pledges, and grants to the Administrative Agent for
the benefit of the Lenders, a security interest in all funds held in the Cash Collateral Account
held by the Administrative Agent from time to time and all proceeds thereof, as security for the
payment of the Obligations, including all Letter of Credit Obligations owing to any Issuing Lender
or any other Lender due and to become due from the Borrower to any Issuing Lender or any other
Lender under this Agreement in connection with the Letters of Credit.

          (b) Application against Letter of Credit Obligations. The Administrative Agent may,
at any time or from time to time apply funds then held in the Cash Collateral Account to the
payment of any Letter of Credit Obligations owing to the Issuing Lenders on a pro rata basis, as
shall have become or shall become due and payable by the Borrower to such Issuing Lenders under
this Agreement in connection with the Letters of Credit.

          (c) Duty of Care. The Administrative Agent shall exercise reasonable care in the
custody and preservation of any funds held in the Cash Collateral Account and shall be deemed to
have exercised such care if such funds are accorded treatment substantially equivalent to that
which the Administrative Agent accords its own property, it being understood that the
Administrative Agent shall not have any responsibility for taking any necessary steps to preserve
rights against any parties with respect to any such funds.

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     Section 7.5 Non-exclusivity of Remedies. No remedy conferred upon the Administrative
Agent or the Lenders is intended to be exclusive of any other remedy, and each remedy shall be
cumulative of all other remedies existing by contract, at law, in equity, by statute or otherwise.

     Section 7.6 Right of Set-off. Upon (a) the occurrence and during the continuance of
any Event of Default and (b) the making of the request or the granting of the consent, if any,
specified by Section 7.2 to authorize the Administrative Agent to declare the Obligations due and
payable pursuant to the provisions of Section 7.2 or the automatic acceleration of the Obligations
pursuant to Section 7.3, each Lender and each Affiliate of a Lender is hereby authorized at any
time and from time to time, to the fullest extent permitted by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any time held and other
Indebtedness at any time owing by such Lender or such Affiliate to or for the credit or the account
of the Borrower against any and all of the obligations of the Borrower now or hereafter existing
under this Agreement, the Note held by such Lender or such Affiliate, and the other Credit
Documents, irrespective of whether or not such Lender or such Affiliate shall have made any demand
under this Agreement, such Note, or such other Credit Documents, and although such obligations may
be unmatured. Each Lender, for itself and on behalf of its Affiliates, agrees to promptly notify
the Borrower and the Administrative Agent after any such set-off and application made by such
Lender or such Affiliate, provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Lender and each Affiliate of a Lender
under this Section are in addition to any other rights and remedies (including other rights of
set-off) which such Lender and such Affiliate may have.

     Section 7.7 Currency Conversion After Maturity. At any time following the occurrence
of an Event of Default and the acceleration of the maturity of the Obligations owed to the Lenders
hereunder, the Lenders shall be entitled to convert, with two (2) Business Days’ prior notice to
the Borrower, any and all or any part of the then unpaid and outstanding Advances denominated in a
Foreign Currency into Advances denominated in Dollars. Any such conversion shall be calculated so
that the principal amount of the resulting Advances shall be the Dollar Amount of the principal
amount of the Advance being converted on the date of conversion. Any accrued and unpaid interest
denominated in such Foreign Currency at the time of any such conversion shall be similarly
converted to Dollars, and such converted Advances and accrued and unpaid interest thereon shall
thereafter bear interest in accordance with the terms hereof.

ARTICLE VIII

AGENCY AND ISSUING LENDER PROVISIONS

     Section 8.1 Authorization and Action. Each Lender hereby appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise such powers under
this Agreement and the other Credit Documents as are delegated to the Administrative Agent by the
terms hereof and of the other Credit Documents, together with such powers as are reasonably
incidental thereto. As to any matters not expressly provided for by this Agreement or any other
Credit Document (including enforcement or collection of the Obligations), the Administrative Agent
shall not be required to exercise any discretion or take any action, but shall be required to act
or to refrain from acting (and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Majority Lenders or all Lenders, and such instructions shall be
binding upon all Lenders and all holders of the Obligations; provided, however, that
Administrative Agent shall not be required to take any action which exposes the Administrative
Agent to personal liability or which is contrary to this Agreement, any other Credit Document, or
applicable Legal Requirements.

     Section 8.2 Administrative Agent’s Reliance, Etc. Neither Administrative Agent nor
any of its respective directors, officers, agents or employees shall be liable for any action taken
or omitted to be

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taken (INCLUDING THE ADMINISTRATIVE AGENT’S OWN NEGLIGENCE) by it or them under or in
connection with this Agreement or the other Credit Documents, except for its or their own gross
negligence or willful misconduct. Without limitation of the generality of the foregoing, the
Administrative Agent: (a) may treat the payee of any Note as the holder thereof until the
Administrative Agent receives written notice of the assignment or transfer thereof signed by such
payee and in form satisfactory to the Administrative Agent; (b) may consult with legal counsel
(including counsel for the Borrower), independent public accountants and other experts selected by
it and shall not be liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (c) makes no warranty or
representation to any Lender and shall not be responsible to any Lender for any statements,
warranties or representations made in or in connection with this Agreement or the other Credit
Documents; (d) shall not have any duty to ascertain or to inquire as to the performance or
observance of any of the terms, covenants or conditions of this Agreement or any other Credit
Document on the part of the Borrower or its Subsidiaries or to inspect the property (including the
books and records) of the Borrower or its Subsidiaries; (e) shall not be responsible to any Lender
for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of
this Agreement or any other Credit Document; and (f) shall incur no liability under or in respect
of this Agreement or any other Credit Document by acting upon any notice, consent, certificate or
other instrument or writing (which may be by telecopier, telegram, cable or telex) believed by it
to be genuine and signed or sent by the proper party or parties.

     Section 8.3 The Administrative Agent and its Affiliates. With respect to its
Revolving Commitments, the Advances made by it and the Letters of Credit issued by it, the
Administrative Agent shall have the same rights and powers under this Agreement as any other Lender
and may exercise the same as though it were not an agent hereunder. The term “Lender” or “Lenders”
shall, unless otherwise expressly indicated, include the Administrative Agent in its individual
capacity. Administrative Agent and its respective Affiliates may accept deposits from, lend money
to, act as trustee under indentures of, and generally engage in any kind of business with, the
Borrower or any of its Subsidiaries, and any Person who may do business with or own securities of
the Borrower or any such Subsidiary, all as if the Administrative Agent were not an agent hereunder
and without any duty to account therefor to the Lenders.

     Section 8.4 Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent, the Arrangers or any other Lender
and based on the financial statements referred to in Section 4.6 and such other documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and without reliance
upon the Administrative Agent, the Arrangers 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 this Agreement.

     Section 8.5 Indemnification. The Lenders severally agree to indemnify the
Administrative Agent, each Arranger and each Issuing Lender (to the extent not reimbursed by the
Borrower), according to their respective Pro Rata Shares from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever (including legal fees) which may be imposed on,
incurred by, or asserted against the Administrative Agent, such Arranger or such Issuing Lender in
any way relating to or arising out of this Agreement or any other Credit Document or any action
taken or omitted by the Administrative Agent, such Arranger or such Issuing Lender under this
Agreement or any other Credit Document (INCLUDING THE ADMINISTRATIVE AGENT’S, THE ARRANGER’S OR
SUCH ISSUING LENDER’S OWN NEGLIGENCE), provided that no Lender shall be liable for any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements found by a final

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judgment by a court of competent jurisdiction to have resulted from the Administrative
Agent’s, such Arranger’s or such Issuing Lender’s gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to (a) reimburse the Administrative Agent promptly
upon demand for its ratable share of any out-of-pocket expenses (including counsel fees) incurred
by the Administrative Agent in connection with the preparation, execution, delivery, modification
or amendment of this Agreement or any other Credit Document, to the extent that the Administrative
Agent is not reimbursed for such expenses by the Borrower and (b) reimburse the Administrative
Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including counsel
fees) incurred by the Administrative Agent in connection with the administration or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement or any other Credit Document, to the extent that
the Administrative Agent is not reimbursed for such expenses by the Borrower. All obligations of
the Lenders provided in this Section 8.5 shall survive any termination of this Agreement and
repayment in full of the Obligations.

     Section 8.6 Successor Administrative Agent and Issuing Lenders. Administrative Agent
and any Issuing Lender may resign at any time by giving written notice thereof to the Lenders and
the Borrower. The Administrative Agent and any Issuing Lender may be removed at any time with or
without cause by the Majority Lenders upon receipt of written notice from such Majority Lenders to
such effect. Any Issuing Lender designated in writing by the Borrower as provided in the
definition of “Issuing Lender” may be removed at any time with or without cause by the Borrower.
Upon receipt of notice of any such resignation or removal (other than a removal of an Issuing
Lender by the Borrower), the applicable Majority Lenders shall have the right to appoint a
successor Administrative Agent or Issuing Lender with, if an Event of Default has not occurred and
is not continuing, the consent of the Borrower, which consent shall not be unreasonably withheld or
delayed. If no successor Administrative Agent or Issuing Lender shall have been so appointed by
the Majority Lenders, and shall have accepted such appointment, within 30 days after the retiring
or removed Administrative Agent’s or Issuing Lender’s giving of notice of resignation or the
Majority Lenders’ removal of the retiring Administrative Agent or Issuing Lender, then the retiring
or removed Administrative Agent or Issuing Lender may, on behalf of the Lenders and the Borrower,
appoint a successor Administrative Agent or Issuing Lender, which shall be a commercial bank
meeting the financial requirements of an Eligible Assignee and, in the case of a Issuing Lender, a
Lender. Upon the acceptance of any appointment as Administrative Agent or Issuing Lender by a
successor Administrative Agent or Issuing Lender, such successor Administrative Agent or Issuing
Lender shall thereupon succeed to and become vested with all the rights, powers, privileges and
duties of the retiring or removed Administrative Agent or Issuing Lender, and the retiring or
removed Administrative Agent or Issuing Lender shall be discharged from its duties and obligations
under this Agreement and the other Credit Documents, except that the retiring or removed Issuing
Lender shall remain the Issuing Lender with respect to any Letters of Credit issued by such Issuing
Lender and outstanding on the effective date of its resignation or removal and the provisions
affecting such Issuing Lender with respect to such Letters of Credit shall inure to the benefit of
the retiring or removed Issuing Lender until the termination of all such Letters of Credit and the
payment of all outstanding Obligations owing to such Issuing Lender. After any retiring or removed
Administrative Agent’s or Issuing Lender’s resignation or removal hereunder as Administrative Agent
or Issuing Lender, the provisions of this Article VIII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Administrative Agent or Issuing Lender under this
Agreement and the other Credit Documents.

     Section 8.7 Co-Lead Arrangers, Joint Book Runners, other Agency Titles. The
Arrangers, Joint Book Runners and any other agents identified on the cover sheet hereof (other than
the Administrative Agent) shall have no duties, obligations or liabilities hereunder in its
capacity as an Arranger, Joint Book Runner and such other agent. The Lenders shall have no right
to replace any Arranger, Joint Book Runner or any such agent, and the Arrangers, Joint Book Runners
and such other
 agents shall not have the right to assign its status as an arranger, book runner or such
agent, as applicable, to any Person.

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ARTICLE IX

MISCELLANEOUS

     Section 9.1 Amendments, Etc. No amendment or waiver of any provision of this
Agreement, the Notes, or any other Credit Document (other than the Agent’s Fee Letter or any Letter
of Credit Document), nor consent to any departure by the Borrower therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Majority Lenders and the Borrower,
and then such waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however,

          (a) no amendment shall increase or extend the Revolving Commitment of any Lender without the
written consent of such Lender;

          (b) no amendment shall amend the definitions of “Eligible Currency” or “Agreed Currency”
(other than as contemplated within such definition) without the written consent of each Lender and
each Issuing Lender;

          (c) no amendment, waiver or consent shall, unless in writing and signed by all the Lenders, do
any of the following: (i) reduce the principal of, or interest on, the Obligations or any fees or
other amounts payable hereunder or under any other Credit Document, (ii) postpone any date fixed
for any payment of principal of, or interest on, the Obligations or any fees or other amounts
payable hereunder, (iii) amend Section 2.14, Section 7.7, this Section 9.1 or any other provision
of this Agreement that requires the pro rata treatment of, or action by, all the Lenders, (iv)
release any Lien in favor of the Administrative Agent for the benefit of the Lenders on any
Property of the Borrower, (v) amend the definition of “Majority Lenders”, or (vi) amend Section
6.5(c) or waive any Event of Default arising therefrom or consent to any departure from the terms
thereof; and

          (d) no amendment, waiver or consent shall, unless in writing and signed by the Administrative
Agent, the Arrangers, the applicable Issuing Lender, or the applicable Swingline Lender in addition
to the Lenders required above to take such action, affect the rights or duties of the
Administrative Agent, the Arrangers, such Issuing Lender, or such Swingline Lender as the case may
be, under this Agreement or any other Credit Document.

     Section 9.2 Notices, Intralinks, Etc.

          (a) Notices. All notices and other communications shall be in writing (including
telecopy or telex) and mailed, telecopied, telexed, hand delivered or delivered by a nationally
recognized overnight courier, if to the Borrower, at its address at 7909 Parkwood Circle Drive,
Houston, Texas 77036, Attention: Treasurer, with a copy to the General Counsel, Telecopy: (713)
346-7995, Telephone: (713) 346-7550; if to any Lender, any Swingline Lender or any Issuing Lender,
at its address for notices specified in its Administrative Questionnaire; if to the Administrative
Agent (including the delivery of a Compliance Certificate), at its address at 1740 Broadway,
C7300-034, Denver, Colorado 80274, Attention: Agency Syndication (telecopy: (303) 863-5531;
telephone: (303) 863-6637), with a copy to 1000 Louisiana Street, 9th Floor, Houston,
Texas 77002, Attention: Eric R. Hollingsworth (telecopy: (713) 739-1087; telephone: (713)
319-1354); if a Notice of Borrowing or a Notice of Conversion or Continuation to the Administrative
Agent at the address for the Administrative Agent specified above; or, as to each party, at such
other address or teletransmission number as shall be designated by such party in a written notice
to the other parties. All such notices and communications shall, when mailed, telecopied,

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telexed or hand delivered or delivered by overnight courier, be effective three days after
deposited in the mails, when telecopy transmission is completed, when confirmed by telex
answer-back or when delivered, respectively, except that notices and communications to the
Administrative Agent, a Swingline Lender or an Issuing Lender pursuant to Article II or VIII shall
not be effective until received by the Administrative Agent, such Swingline Lender or such Issuing
Lender.

          (b) Electronic Postings. (i) The Borrower agrees that the Administrative Agent may
make any material delivered by the Borrower to the Administrative Agent, as well as any amendments,
waivers, consents, and other written information, documents, instruments and other materials
relating to the Borrower, any of its Subsidiaries, or any other materials or matters relating to
this Agreement, the Notes or any of the transactions contemplated hereby (excluding notices
pursuant to Article II, collectively, the “Communications”) available to the Lenders by
posting such notices on an electronic delivery system (which may be provided by the Administrative
Agent, an Affiliate of the Administrative Agent, or any Person that is not an Affiliate of the
Administrative Agent), such as IntraLinks, or a substantially similar electronic system customarily
used by financial institutions for such purposes (the “Platform”). The Borrower
acknowledges that (A) the distribution of material through an electronic medium is not necessarily
secure and that there are confidentiality and other risks associated with such distribution, (B)
the Platform is provided “as is” and “as available” and (C) neither the Administrative Agent nor
any of their respective Affiliates warrants the accuracy, completeness, timeliness, sufficiency, or
sequencing of the Communications posted on the Platform. The Administrative Agent and their
respective Affiliates expressly disclaim with respect to the Platform any liability for errors in
transmission, incorrect or incomplete downloading, delays in posting or delivery, or problems
accessing the Communications posted on the Platform and any liability for any losses, costs,
expenses or liabilities that may be suffered or incurred in connection with the Platform. No
warranty of any kind, express, implied or statutory, including any warranty of merchantability,
fitness for a particular purpose, non-infringement of third party rights or freedom from viruses or
other code defects, is made by the Administrative Agent or any of its respective Affiliates in
connection with the Platform.

     (ii) Each Lender agrees that notice to it (as provided in the next sentence) (a
“Notice”) specifying that any Communication has been posted to the Platform shall for
purposes of this Agreement constitute effective delivery to such Lender of such information,
documents or other materials comprising such Communication. Each Lender agrees (A) to notify, on
or before the date such Lender becomes a party to this Agreement, the Administrative Agent in
writing of such Lender’s e-mail address to which a Notice may be sent (and from time to time
thereafter to ensure that the Administrative Agent have on record an effective e-mail address for
such Lender) and (B) that any Notice may be sent to such e-mail address.

     Section 9.3 No Waiver; Remedies. No failure on the part of any Lender, the
Administrative Agent, or any Issuing Lender to exercise, and no delay in exercising, any right
hereunder or under any other Credit Document shall operate as a waiver thereof; nor shall any
single or partial exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right. The remedies provided in this Agreement and the other Credit
Documents are cumulative and not exclusive of any remedies provided by law.

     Section 9.4 Costs and Expenses. The Borrower agrees to pay on demand (a) all
out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation,
execution, delivery, modification and amendment of this Agreement, the Notes and the other Credit
Documents, (b) all out-of-pocket costs and expenses of the Issuing Lenders and Swingline Lenders in
connection with the administration of this Agreement, the Notes and the other Credit Documents,
including the reasonable out-of-pocket expenses incurred by any Issuing Lender in connection with
the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment
thereunder and (c) all reasonable

62

 

out-of-pocket costs and expenses, if any, of the Administrative Agent, each Arranger, each
Issuing Lender, each Swingline Lender and each Lender (including reasonable counsel fees and
expenses of the Administrative Agent, each Arranger, each Issuing Lender, each Swingline Lender and
each Lender) in connection with the enforcement (whether through negotiations, legal proceedings or
otherwise) of this Agreement and the other Credit Documents after an Event of Default has occurred
and is continuing, and to the extent not included in the foregoing, the costs of any Uniform
Commercial Code financing statement or continuation statement, and any related title or Uniform
Commercial Code search conducted subsequent to such recordation, and other costs usual and
customary in connection with the taking of a Lien.

     Section 9.5 Binding Effect. This Agreement shall become effective when it shall have
been executed by the Borrower and the Administrative Agent, and when the Administrative Agent shall
have, as to each Lender, either received a counterpart hereof executed by such Lender or been
notified by such Lender that such Lender has executed it and thereafter shall be binding upon and
inure to the benefit of the Borrower, the Administrative Agent, each Arranger, each Issuing Lender,
each Swingline Lender and each Lender and their respective successors and assigns, except that the
Borrower shall not have the right to assign its rights or delegate its duties under this Agreement
or any interest in this Agreement without the prior written consent of each Lender, each Swingline
Lender, and each Issuing Lender.

     Section 9.6 Lender Assignments and Participations.

          (a) Assignments. Any Lender may assign to one or more banks or other entities all or
any portion of its rights and obligations under this Agreement (including all or a portion of its
Revolving Commitment, the Advances owing to it, the Notes held by it, if any, and the participation
interest in the Letter of Credit Obligations held by it); provided, however, that
(i) each such assignment shall be of a constant, and not a varying, percentage of all of such
Lender’s rights and obligations under this Agreement as a Lender and shall involve a ratable
assignment of such Lender’s Revolving Commitment and such Lender’s Revolving Advances and shall be
in an amount not less than $5,000,000, (ii) the amount of the resulting Revolving Commitment and
Revolving Advances of the assigning Lender (unless it is assigning all its Revolving Commitment)
and the assignee Lender pursuant to each such assignment (determined as of the date of the
Assignment and Acceptance with respect to such assignment) shall in no event be less than
$10,000,000, (iii) each such assignment shall be to an Eligible Assignee, (iv) the parties to each
such assignment shall execute and deliver to the Administrative Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance, together with the applicable Notes, if
any, subject to such assignment, (v) each Eligible Assignee shall pay to the Administrative Agent a
$4,000 administrative fee; and (vi) the Administrative Agent shall promptly deliver a copy of the
fully executed Assignment and Acceptance to the Administrative Agent. Upon such execution,
delivery, acceptance and recording, from and after the effective date specified in each Assignment
and Acceptance, which effective date shall be at least three Business Days after the execution
thereof, (A) the assignee thereunder shall be a party hereto for all purposes and, to the extent
that rights and obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (B) such Lender thereunder
shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to
such Assignment and Acceptance, relinquish its rights and be released from its obligations under
this Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining
portion of such Lender’s rights and obligations under this Agreement, such Lender shall cease to be
a party hereto) but shall continue to be entitled to the benefits of Sections 2.8, 2.9, 2.11, 9.4,
9.7 and 9.16 with respect to facts and circumstances occurring prior to the effective date of such
assignment. Notwithstanding anything herein to the contrary, any Lender may assign, as collateral
or otherwise, any of its rights under the Credit Documents to any Federal Reserve Bank.

63

 

          (b) Term of Assignments. By executing and delivering an Assignment and Acceptance,
the Lender thereunder and the assignee thereunder confirm to and agree with each other and the
other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance,
such Lender makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement
or any other instrument or document furnished pursuant hereto; (ii) such Lender makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
the Borrower or the performance or observance by the Borrower of any of its obligations under this
Agreement or any other instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement, together with copies of the financial
statements referred to in Section 4.6 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such Assignment and
Acceptance; (iv) such assignee will, independently and without reliance upon the Administrative
Agent, such Lender 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 this Agreement; (v) such assignee appoints and authorizes the Administrative Agent to take
such action as agent on its behalf and to exercise such powers under this Agreement as are
delegated to the Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto; and (vi) such assignee agrees that it will perform in accordance
with their terms all of the obligations which by the terms of this Agreement are required to be
performed by it as a Lender.

          (c) The Register. The Administrative Agent shall maintain at its respective address
referred to in Section 9.2 a copy of each Assignment and Acceptance delivered to and accepted by it
and a register for the recordation of the names and addresses of the respective Lenders and the
Revolving Commitment and principal amount of the Advances owing to, each Lender from time to time
(the “Register”). The entries in the Register shall be conclusive and binding for all
purposes, absent manifest error, and the Borrower, the Administrative Agent, the Issuing Lenders,
and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder
for all purposes of this Agreement. At any reasonable time and from time to time upon reasonable
prior notice, the Register shall be available (i) for inspection by the Borrower, (ii) for
inspection by each Lender as to its Revolving Commitment and principal amount of Advances owing to
it, and (iii) for inspection by each Issuing Lender and each Swingline Lender for purposes of
determining each Lender’s participation interest in Letters of Credit and Swingline Advances.

          (d) Procedures. Upon its receipt of an Assignment and Acceptance executed by a Lender
and an Eligible Assignee, together with the Notes, if any, subject to such assignment, the
Administrative Agent shall, if such Assignment and Acceptance has been completed and is in
substantially the form of the attached Exhibit A, (i) accept such Assignment and Acceptance,
(ii) record the information contained therein in the Register, and (iii) give prompt notice thereof
to the Borrower.

          (e) Participations. Each Lender may sell participations to one or more banks or other
entities in or to all or a portion of its rights and obligations under this Agreement (including
all or a portion of its Revolving Commitment, the Advances owing to it, its participation interest
in the Letter of Credit Obligations, and the Notes held by it, if any); provided,
however, that (i) such Lender’s obligations under this Agreement (including its Revolving
Commitment to the Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations, (iii) such Lender
shall remain the holder of any such Obligations for all purposes of this Agreement, (iv) the
Borrower, the Administrative Agent, and the Issuing Lenders 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, (v) such Lender shall not require the participant’s consent to

64

 

any matter under this Agreement, except for change in the principal amount of any Obligation
in which the participant has an interest, reductions in fees or interest, or extending the Maturity
Date, and (vi) such Lender shall give prompt prior notice to the Borrower of each such
participation to be sold by such Lender. The Borrower hereby agrees that participants shall have
the same rights under Sections 2.8, 2.9, 2.11(c), 9.4 and 9.7 hereof as the Lender to the extent of
their respective participations. Notwithstanding the foregoing and so long as no Event of Default
has occurred and is continuing, upon the receipt of notice by the Borrower of the sale of a
participation by any Lender to one or more banks or other entities (other than an Affiliate of such
Lender) in or to all or a portion of its rights and obligations under this Agreement (each such
bank or other entity, a “Proposed Participant”), the Borrower shall have the right, but not
the obligation, to select additional lenders to replace such Proposed Participant on the same terms
and conditions as the Proposed Participant upon prompt written notice from the Borrower to the
Administrative Agent and the Lender selling such participation. The Borrower shall have ten days
from the date of its receipt of notice of the proposed sale of such participation to the Proposed
Participant to select replacement lenders to replace such Proposed Participant. If the Borrower
does not select any replacement lenders or does not elect to select any replacement lenders the
applicable Lender may sell such participation to the Proposed Participant.

     Section 9.7 Indemnification. The Borrower shall indemnify the Administrative Agent,
each Arranger, each Lender (including any lender which was a Lender hereunder prior to any full
assignment of its Revolving Commitment), each Issuing Lender, each Swingline Lender and each
affiliate thereof and their respective directors, officers, employees and agents from, and
discharge, release, and hold each of them harmless against, any and all losses, liabilities, claims
or damages to which any of them may become subject, insofar as such losses, liabilities, claims or
damages arise out of or result from (i) the execution or delivery of this Agreement or any
agreement or instrument contemplated hereby, the performance by the parties hereto of their
respective obligations hereunder or the consummation of the Merger or any other transactions
contemplated hereby, (ii) any actual or proposed use by the Borrower or any Affiliate of the
Borrower of the proceeds of any Advance or Letter of Credit, (iii) any breach by the Borrower of
any provision of this Agreement or any other Credit Document, (iv) any Environmental Claim or
requirement of Environmental Laws concerning or relating to the present or previously-owned or
operated properties, or the operations or business, of the Borrower or any of its Subsidiaries, and
(v) any investigation, litigation or other proceeding (including any threatened investigation or
proceeding) relating to the foregoing, and the Borrower shall reimburse the Administrative Agent,
each Arranger, the Issuing Lender, each Swingline Lender and each Lender, and each affiliate
thereof and their respective directors, officers, employees and agents, upon demand for any
reasonable out-of-pocket expenses (including legal fees) incurred in connection with any such
losses, liabilities, claims, damages, investigation, litigation, Environmental Claim or
requirement, or other proceeding; and EXPRESSLY INCLUDING ANY SUCH LOSSES, LIABILITIES, CLAIMS,
DAMAGES, OR EXPENSE INCURRED BY REASON OF THE PERSON BEING INDEMNIFIED’S OWN NEGLIGENCE, BUT
EXCLUDING ANY SUCH LOSSES, LIABILITIES, CLAIMS, DAMAGES OR EXPENSES FOUND BY A FINAL JUDGMENT BY A
COURT OF COMPETENT JURISDICTION TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF
THE PERSON TO BE INDEMNIFIED.

     Section 9.8 Execution in Counterparts. This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement.

     Section 9.9 Survival of Representations, etc. All representations and warranties
contained in this Agreement or made in writing by or on behalf of the Borrower in connection
herewith shall survive

65

 

the execution and delivery of this Agreement and the Credit Documents, the making of the
Advances and any investigation made by or on behalf of the Lenders, none of which investigations
shall diminish any Lender’s right to rely on such representations and warranties. All obligations
of the Borrower provided for in Sections 2.8, 2.9, 2.11, 9.4, 9.7 and 9.16 shall survive any
termination of this Agreement and repayment in full of the Obligations.

     Section 9.10 Severability. In case one or more provisions of this Agreement or the
other Credit Documents shall be invalid, illegal or unenforceable in any respect under any
applicable Legal Requirement, the validity, legality and enforceability of the remaining provisions
contained herein or therein shall not be affected or impaired thereby.

     Section 9.11 Usury Not Intended. It is the intent of the Borrower and each Lender in
the execution and performance of this Agreement and the other Credit Documents to contract in
strict compliance with applicable usury laws, including conflicts of law concepts, governing the
Advances of each Lender including such applicable Legal Requirements of the State of Texas and the
United States of America from time to time in effect. In furtherance thereof, each Lender and the
Borrower stipulate and agree that none of the terms and provisions contained in this Agreement or
the other Credit Documents shall ever be construed to create a contract to pay, as consideration
for the use, forbearance or detention of money, interest at a rate in excess of the Maximum Rate
and that for purposes hereof “interest” shall include the aggregate of all charges which constitute
interest under such laws that are contracted for, charged or received under this Agreement. In the
event that the Obligations are accelerated by reason of any 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 may never
include more than the Maximum Rate and excess interest, if any, provided for in this Agreement or
otherwise shall be canceled automatically as of the date of such acceleration or prepayment and, if
theretofore paid, shall be credited on the applicable Obligations (or, if the applicable
Obligations shall have been paid in full, refunded to the Borrower). The provisions of this Section
shall control over all other provisions of this Agreement or the other Credit Documents which may
be in apparent conflict herewith.

     Section 9.12 Confidentiality. None of the Administrative Agent, Issuing Lenders or
Lenders shall disclose any Confidential Information to any Person without the consent of the
Borrower, other than (a) to the Administrative Agent’s, Issuing Lender’s or Lender’s Affiliates and
their officers, directors, employees, agents and advisors, (b) to actual or prospective Eligible
Assignees and participants and their officers, directors, employees, agents and advisors, (c) to
any direct, indirect, actual or prospective counterparty (and its advisor) to any swap, derivative
or securitization transaction related to the obligations under this Agreement, and then, in any
event, only on a confidential basis, (d) as required by any law, rule or regulation or judicial
process, (e) as requested or required by any state, Federal or foreign authority or examiner
(including the National Association of Insurance Commissioners or any similar organization or
quasi-regulatory authority) regulating such Issuing Lender, such Lender or Administrative Agent, or
to insurers, insurance brokers or direct or indirect providers of credit protection when required
by it, provided that, prior to any such disclosure, such Person shall undertake to preserve the
confidentiality of any Confidential Information relating to the Borrower received by it from such
Issuing Lender, such Lender or Administrative Agent, (f) to any rating agency when required by it,
provided that, prior to any such disclosure, such rating agency shall undertake to preserve the
confidentiality of any Confidential Information relating to the Borrower received by it from such
Issuing Lender, such Lender or Administrative Agent, (g) in connection with any litigation or
proceeding to which Administrative Agent, such Issuing Lender or such Lender or any of its
Affiliates may be a party or (h) in connection with the exercise of any right or remedy under this
Agreement or any other Credit Document. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN,
nothing in

66

 

this Agreement shall (a) restrict the Administrative Agent, any Issuing Lender or any Lender
from providing information to any bank or other regulatory or governmental authorities, including
the Federal Reserve Board and its supervisory staff; (b) require or permit the Administrative
Agent, any Issuing Lender or any Lender to disclose to the Borrower that any information will be or
was provided to the Federal Reserve Board or any of its supervisory staff; or (c) require or permit
the Administrative Agent, any Issuing Lender or any Lender to inform the Borrower of a current or
upcoming Federal Reserve Board examination or any nonpublic Federal Reserve Board supervisory
initiative or action.

     Section 9.13 Governing Law; Submission to Jurisdiction.

     (a) This Agreement, the Notes and the other Credit Documents shall be governed by, and
construed and enforced in accordance with, the laws of the State of New York without regard to
conflict of law principles thereof.

     (b) Any legal action or proceeding with respect to this Agreement or any other Credit
Document may be brought in the courts of the state of New York sitting in New York City or of the
United States for the Southern District of such state, and by execution and delivery of this
Agreement, the Borrower, the Administrative Agent, each Issuing Lender, each Swingline Lender and
each Lender consents, for itself and in respect of its property, to the non-exclusive
jurisdiction of those courts. The Borrower, the Administrative Agent, each Issuing Lender, each
Swingline Lender and each Lender irrevocably waives any objection, including 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 action or proceeding in such jurisdiction in respect of this
Agreement or any other Credit Document or other document related thereto.

     (c) The Borrower irrevocably consents to the service of any and all process in any such
action or proceeding by the mailing of copies of such process to it at the address specified for
it in this Agreement.

     (d) Nothing in this Section 9.13 shall affect the right of the Administrative Agent, any
Issuing Lender, any Swingline Lender or any other Lender to serve legal process in any other
manner permitted by law or affect the right of the Administrative Agent, any Issuing Lender, any
Swingline Lender or any other Lender to bring any action or proceeding against the Borrower in
the courts of any other jurisdiction.

     Section 9.14 Waiver of Jury Trial. The Borrower, the Issuing Lenders, the
Swingline Lenders, the Lenders and the Administrative Agent hereby irrevocably waive any and all
right to trial by jury in respect of any legal proceeding, directly or indirectly (whether sounding
in tort, contract or otherwise), arising out of or relating to this Agreement, any other Credit
Document, any of the transactions contemplated hereby, or the relationship established
hereunder.

     Section 9.15 Waiver of Consequential Damages. To the extent permitted by
applicable law, Borrower shall not assert, and the Borrower hereby waives, any claim against any
other party hereto and each affiliate thereof and their respective directors, officers, employees
and agents, 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 or any other Credit Document, the Merger, any Advance or Letter of Credit or the use
of the proceeds thereof.

67

 

     Section 9.16 Judgment Currency. If for the purposes of obtaining judgment in any
court it is necessary to convert a sum due from the Borrower hereunder in the currency expressed to
be payable herein (the “specified currency”) into another currency, the parties hereto agree, to
the fullest extent that they may effectively do so, that the rate of exchange used shall be that at
which in accordance with usual and customary banking procedures the Administrative Agent could
purchase the specified currency with such other currency at any of the Administrative Agent’s
offices in the United States of America on the Business Day preceding that on which final,
non-appealable judgment is given. The obligations of the Borrower in respect of any sum due to any
Lender, any Issuing Lender or the Administrative Agent hereunder shall, notwithstanding any
judgment in a currency other than the specified currency, be discharged only to the extent that on
the Business Day following receipt by such Lender, such Issuing Lender or the Administrative Agent
(as the case may be) of any sum adjudged to be so due in such other currency such Lender, such
Issuing Lender or the Administrative Agent (as the case may be) may in accordance with normal,
reasonable banking procedures purchase the specified currency with such other currency. If the
amount of the specified currency so purchased is less than the sum originally due to such Lender,
such Issuing Lender or the Administrative Agent, as the case may be, in the specified currency, the
Borrower agrees, to the fullest extent that it may effectively do so, as a separate obligation and
notwithstanding any such judgment, to indemnify such Lender, such Issuing Lender or the
Administrative Agent, as the case may be, against such loss, and if the amount of the specified
currency so purchased exceeds (a) the sum originally due to any Lender, such Issuing Lender or the
Administrative Agent, as the case may be, in the specified currency and (b) any amounts shared with
other Lenders as a result of allocations of such excess as a disproportionate payment to such
Lender under Section 2.14, each Lender, Issuing Lender or the Administrative Agent, as the case may
be, agrees to promptly remit such excess to the Borrower. All obligations of the Borrower provided
in this Section 9.16 shall survive any termination of this Agreement and repayment in full of the
Obligations.

     Section 9.17 Headings Descriptive. The headings of the several Sections and
paragraphs of the Agreement are inserted for convenience only and shall not in any way affect the
meaning or construction of any provision of this Agreement.

     Section 9.18 USA Patriot Act. Each Lender that is subject to the Act (as hereinafter
defined) and the Administrative Agent (for itself and not on behalf of any 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 “Act”), it is required to obtain, verify and
record information that identifies the Borrower, which information includes the name and address of
the Borrower and other information that will allow such Lender or the Administrative Agent, as
applicable, to identify the Borrower in accordance with the Act.

This written agreement and the Credit Documents, as defined in this Agreement, represent the
final agreement among the parties and may not be contradicted by evidence of prior,
contemporaneous, or subsequent oral agreements of the parties.

[Remainder of page left intentionally blank]

68

 

     EXECUTED as of the date first above written.

	 	 	 	 	 
	 	NATIONAL OILWELL VARCO, INC.

 	 
	 	By:  	/s/ Daniel L. Molinaro
 	 
	 	 	Daniel L. Molinaro 	 
	 	 	Vice President & Treasurer 	 
	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK,

          NATIONAL ASSOCIATION

as Administrative Agent, Co-Lead Arranger, Joint Book
Runner, a Swingline Lender, a Issuing Lender and a

Lender

 	 
	 	By:  	/s/ Eric R. Hollingsworth
 	 
	 	 	Eric R. Hollingsworth 	 
	 	 	Senior Vice President 	 
	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	DNB NOR BANK ASA,
	 	 	as Co-Lead Arranger, Joint Book Runner, a Swingline
Lender and a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas Tangen
	 

	 	 	 	 
	 

	 	Name:
	 	Thomas Tangen
	 

	 	 	 	 
	 

	 	Title:
	 	First Vice President
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Henrik Asland
	 

	 	 	 	 
	 

	 	Name:
	 	Henrik Asland
	 

	 	 	 	 
	 

	 	Title:
	 	Senior Vice President
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Linda Terry
	 

	 	 	 	 
	 

	 	Name:
	 	Linda Terry
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President & Manager
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	 
	 

	 	 	 	 
	 

	 	Title:
	 	 
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	FORTIS BANK S.A./N.V., NEW YORK BRANCH
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Diran Cholakian
	 

	 	 	 	 
	 

	 	Name:
	 	Diran Cholakian
	 

	 	 	 	 
	 

	 	Title:
	 	Director
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Kathleen DeLathauwer
	 

	 	 	 	 
	 

	 	Name:
	 	Kathleen DeLathauwer
	 

	 	 	 	 
	 

	 	Title:
	 	Director
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA
	 	 	as a Swingline Lender and a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David G. Mills
	 

	 	 	 	 
	 

	 	Name:
	 	David G. Mills
	 

	 	 	 	 
	 

	 	Title:
	 	Director
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	 
	 

	 	 	 	 
	 

	 	Title:
	 	 
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	WACHOVIA BANK, N.A.
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Leanne S. Phillips
	 

	 	 	 	 
	 

	 	Name:
	 	Leanne S. Phillips
	 

	 	 	 	 
	 

	 	Title:
	 	Director
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Shelley A. McGregor
	 

	 	 	 	 
	 

	 	Name:
	 	Shelley A. McGregor
	 

	 	 	 	 
	 

	 	Title:
	 	Senior Vice President
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	CITIBANK, N.A.
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Amy Pincu
	 

	 	 	 	 
	 

	 	Name:
	 	Amy Pincu
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas Okamoto
	 

	 	 	 	 
	 

	 	Name:
	 	Thomas Okamoto
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	BARCLAYS BANK PLC
	 	 	as a Swingline Lender and a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Colin Goss
	 

	 	 	 	 
	 

	 	Name:
	 	Colin Goss
	 

	 	 	 	 
	 

	 	Title:
	 	Director
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	 
	 

	 	 	 	 
	 

	 	Title:
	 	 
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	SKANDINAVISKA ENSKILDA BANKEN AB (PUBL), as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Penny Neville-Park
	 

	 	 	 	 
	 

	 	Name:
	 	PENNY NEVILLE-PARK
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Michael I Dicks
	 

	 	 	 	 
	 

	 	Name:
	 	Michael I Dicks
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	BNP PARIBAS
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gregory George
	 

	 	 	 	 
	 

	 	Name:
	 	Gregory George
	 

	 	 	 	 
	 

	 	Title:
	 	Managing Director
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard Hawthorne
	 

	 	 	 	 
	 

	 	Name:
	 	Richard Hawthorne
	 

	 	 	 	 
	 

	 	Title:
	 	Director
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	LLOYDS TSB BANK plc
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mario Del Duca
	 

	 	 	 	 
	 

	 	Name:
	 	Mario Del Duca
	 

	 	 	 	 
	 

	 	Title:
	 	Associate Director Corporate Banking USA D029
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Carlos Lopez
	 

	 	 	 	 
	 

	 	Name:
	 	Carlos Lopez
	 

	 	 	 	 
	 

	 	Title:
	 	Associate Director Corporate Banking USA L007
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	EXPORT DEVELOPMENT CANADA
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Brian Craig
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Craig
	 

	 	 	 	 
	 

	 	Title:
	 	Senior Financiing Manager
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Vivianne Bouchard
	 

	 	 	 	 
	 

	 	Name:
	 	Vivianne Bouchard
	 

	 	 	 	 
	 

	 	Title:
	 	Financing Manager
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	FOKUS BANK, NORWEGIAN BRANCH OF
	 	 	DANSKE BANK, as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Toril Nag
	 

	 	 	 	 
	 

	 	Name:
	 	Toril Nag
	 

	 	 	 	 
	 

	 	Title:
	 	Senior Vice President
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Svein Terje Hoiland
	 

	 	 	 	 
	 

	 	Name:
	 	Svein Terje Hoiland
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	NORDEA BANK NORGE ASA, as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Tom C. Kuhnle
	 

	 	 	 	 
	 

	 	Name:
	 	TOM C. KUHNLE
	 

	 	 	 	 
	 

	 	Title:
	 	SVP
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Simen Heum Listerud
	 

	 	 	 	 
	 

	 	Name:
	 	SIMEN HEUM LISTERUD
	 

	 	 	 	 
	 

	 	Title:
	 	VP
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	BANCO BILBAO VIZCAYA ARGENTARIA S.A.
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Peter Tommaney
	 

	 	 	 	 
	 

	 	Name:
	 	PETER TOMMANEY
	 

	 	 	 	 
	 

	 	Title:
	 	Senior Vice President
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Guilherme Gobbo
	 

	 	 	 	 
	 

	 	Name:
	 	Guilherme Gobbo
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President Global Corporate Banking
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Kevin S. McFadden
	 

	 	 	 	 
	 

	 	Name:
	 	Kevin S. McFadden
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	 
	 

	 	 	 	 
	 

	 	Title:
	 	 
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	SVENSKA HANDELSBANKEN AB (PUBL)
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stefan Nilsson
	 

	 	 	 	 
	 

	 	Name:
	 	Stefan Nilsson
	 

	 	 	 	 
	 

	 	Title:
	 	General Manager
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas Lerner
	 

	 	 	 	 
	 

	 	Name:
	 	Thomas Lerner
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	STANDARD CHARTERED BANK
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Benjamin Velazouez A2657
	 

	 	 	 	 
	 

	 	Name:
	 	BENJAMIN VELAZOUEZ A2657
	 

	 	 	 	 
	 

	 	Title:
	 	DIRECTOR
SYNDICATIONS, AMERICAS
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Robert K. Reddington
	 

	 	 	 	 
	 

	 	Name:
	 	ROBERT K. REDDINGTON
	 

	 	 	 	 
	 

	 	Title:
	 	AVP/CREDIT DOCUMENTATION
CREDIT RISK CONTROL
STANDARD CHARTERED BANK N.Y.
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	BAYERISCHE HYPO-UND VEREINSBANK AG,
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ K.-H. Janke
	 

	 	 	 	 
	 

	 	Name:
	 	K.-H. Janke
	 

	 	 	 	 
	 

	 	Title:
	 	AVP
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ H.-H. Wilckens
	 

	 	 	 	 
	 

	 	Name:
	 	H.-H. Wilckens
	 

	 	 	 	 
	 

	 	Title:
	 	SVP
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	FIFTH THIRD BANK,
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mike Mendenhall
	 

	 	 	 	 
	 

	 	Name:
	 	Mike Mendenhall
	 

	 	 	 	 
	 

	 	Title:
	 	VP
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	NATIONAL BANK OF EGYPT,
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mr. Hassan Eissa
	 

	 	 	 	 
	 

	 	Name:
	 	Mr. Hassan Eissa
	 

	 	 	 	 
	 

	 	Title:
	 	General Manager
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	PNC BANK NATIONAL ASSOCIATION
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ W. J. Bowne
	 

	 	 	 	 
	 

	 	Name:
	 	W. J. Bowne
	 

	 	 	 	 
	 

	 	Title:
	 	Managing Director
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

	 	 	 	 	 
	 	 	ABU DHABI INTERNATIONAL INC.
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David J Young
	 

	 	 	 	 
	 

	 	Name:
	 	David J Young
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Nagy S Kolta
	 

	 	 	 	 
	 

	 	Name:
	 	Nagy S Kolta
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice President
	 

	 	 	 	 

Signature Page to 5-Year Credit Agreement

(National Oilwell Varco, Inc.)

 

 

Schedule 1.1(a)

Revolving Commitments

	 	 	 	 	 
	 	 	Revolving
	Lender	 	Commitment
	Wells Fargo Bank, N.A.
	 	$	186,666,666.67	 
	DnB NOR Bank ASA
	 	$	186,666,666.67	 
	The Bank of Tokyo-Mitsubishi UFJ, Ltd.
	 	$	153,333,333.33	 
	Fortis Bank S.A./N.V., New York Branch
	 	$	153,333,333.33	 
	The Bank of Nova Scotia
	 	$	153,333,333.33	 
	Wachovia Bank, N.A.
	 	$	113,333,333.33	 
	Bank of America, N.A.
	 	$	113,333,333.33	 
	Citibank, N.A.
	 	$	83,333,333.33	 
	JPMorgan Chase Bank, NA
	 	$	83,333,333.33	 
	Barclays Bank PLC
	 	$	83,333,333.33	 
	Skandinaviska Enskilda Banken AB (publ)
	 	$	83,333,333.33	 
	BNP Paribas
	 	$	83,333,333.33	 
	Lloyds TSB Bank plc
	 	$	83,333,333.33	 
	Export Development Canada
	 	$	60,000,000.00	 
	Fokus Bank, Norwegian Branch of Danske Bank
	 	$	60,000,000.00	 
	Nordea Bank Norge ASA
	 	$	60,000,000.00	 
	Banco Bilbao Vizcaya Argentaria S.A.
	 	$	50,000,000.00	 
	US Bank National Association
	 	$	33,333,333.33	 
	Svenska Handelsbanken AB (publ)
	 	$	33,333,333.33	 
	Standard Chartered Bank
	 	$	33,333,333.33	 
	Bayerische Hypo-und Vereinsbank AG
	 	$	33,333,333.33	 
	Fifth Third Bank
	 	$	23,333,333.33	 
	National Bank of Egypt
	 	$	20,000,000.00	 
	PNC Bank National Association
	 	$	16,666,666.67	 
	Abu Dhabi International Bank Inc.
	 	$	16,666,666.67	 
	TOTAL:
	 	$	2,000,000,000.00	 

Schedule 1.1(a)

 

 

SCHEDULE 1.1(b)

MANDATORY COST RATE

	1.	 	The Mandatory Cost Rate (to the extent applicable) is an addition to the interest rate
otherwise payable to compensate Lenders for the cost of compliance with:

	 	(a)	 	the requirements of the Bank of England and/or the Financial Services Authority
(or, in either case, any other authority which replaces all or any of its functions);
or
	 
	 	(b)	 	the requirements of the European Central Bank.

	2.	 	On the first day of each Interest Period (or as soon as possible thereafter) the
Administrative Agent shall calculate, as a percentage rate, a rate (the “Additional Cost
Rate”) for each Lender, in accordance with the paragraphs set out below. The Mandatory
Cost Rate will be calculated by the Administrative Agent as a weighted average of the Lenders’
Additional Cost Rates (weighted in proportion to the percentage participation of each Lender
in the relevant Advance) and will be expressed as a percentage rate per annum. The
Administrative Agent will, at the request of the Borrower or any Lender, deliver to the
Borrower or such Lender as the case may be, a statement setting forth the calculation of any
Mandatory Cost Rate.

	3.	 	The Additional Cost Rate for any Lender lending from a Lending Office in a Participating
Member State will be the percentage notified by that Lender to the Administrative Agent. This
percentage will be certified by such Lender in its notice to the Administrative Agent to be
its reasonable determination of the cost (expressed as a percentage of such Lender’s
participation in all Advances made from such Lending Office) of complying with the minimum
reserve requirements of the European Central Bank in respect of Advances made from that
Lending Office.

	4.	 	The Additional Cost Rate for any Lender lending from a Lending Office in the United Kingdom
will be calculated by the Administrative Agent as follows:

	 	(a)	 	in relation to any Advance in Pounds Sterling:

	 	 	 	 	 
	 

	 	AB+C(B-D)+E x 0.01
	 	per cent per annum
	 

	 	 	 	 
	 

	 	100 — (A+C)	 	 

	 	(b)	 	in relation to any Advance in any currency other than Pounds Sterling:

	 	 	 	 	 	 	 
	 

	 	 	E x 0.01	 	 	per cent per annum
	 

	 	 
	 

	 	 	300	 	 	 

Where:

	 	“A” 	 	is the percentage of Eligible Liabilities (assuming these to be in excess of
any stated minimum) which that Lender is from time to time required to maintain as an
interest free cash ratio deposit with the Bank of England to comply with cash ratio
requirements.
	 
	 	“B” 	 	is the percentage rate of interest (excluding the Applicable Margin, the
Mandatory Cost Rate and any interest charged on overdue amounts pursuant to the first
sentence of Section 2.6(b)) payable for the relevant Interest Period of such
Advance.

Schedule 1.1(b)

 

 

	 	“C” 	 	is the percentage (if any) of Eligible Liabilities which that Lender is
required from time to time to maintain as interest bearing Special Deposits with the
Bank of England.
	 
	 	“D” 	 	is the percentage rate per annum payable by the Bank of England on interest
bearing Special Deposits.
	 
	 	“E” 	 	is designed to compensate Lenders for amounts payable under the Fees Rules and
is calculated by the Administrative Agent as being the average of the most recent rates
of charge supplied by the Lenders to the Administrative Agent pursuant to paragraph
7 below and expressed in pounds per £1,000,000.

	5.	 	For the purposes of this Schedule:

	 	(a)	 	“Eligible Liabilities” and “Special Deposits” have the meanings
given to them from time to time under or pursuant to the Bank of England Act 1998 or
(as may be appropriate) by the Bank of England;
	 
	 	(b)	 	“Fees Rules” means the rules on periodic fees contained in the FSA
Supervision Manual or such other law or regulation as may be in force from time to time
in respect of the payment of fees for the acceptance of deposits;
	 
	 	(c)	 	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under
the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee
required pursuant to the Fees Rules but taking into account any applicable discount
rate); and
	 
	 	(d)	 	“Tariff Base” has the meaning given to it in, and will be calculated in
accordance with, the Fees Rules.

	6.	 	In application of the above formulae, A, B, C and D will be included in the formulae as
figures and not as percentages (i.e. 5% will be included in the formula as 5 and not as 0.05).
A negative result obtained by subtracting D from B shall be taken as zero. The resulting
figures shall be rounded to four decimal places.

	7.	 	If requested by the Administrative Agent or the Borrower, each Lender with a Lending Office
in the United Kingdom or a Participating Member State shall, as soon as practicable after
publication by the Financial Services Authority, supply to the Administrative Agent and the
Borrower, the rate of charge payable by such Lender to the Financial Services Authority
pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services
Authority (calculated for this purpose by such Lender as being the average of the Fee Tariffs
applicable to such Lender for that financial year) and expressed in pounds per £1,000,000 of
the Tariff Base of such Lender.

	8.	 	Each Lender shall supply any information required by the Administrative Agent for the purpose
of calculating its Additional Cost Rate. In particular, but without limitation, each Lender
shall supply the following information in writing on or prior to the date on which it becomes
a Lender:

	 	(a)	 	the jurisdiction of the Lending Office out of which it is making available its
participation in the relevant Advance; and

Schedule 1.1(b)

 

 

	 	(b)	 	any other information that the Administrative Agent may reasonably require for
such purpose.

Each Lender shall promptly notify the Administrative Agent in writing of any change to the
information provided by it pursuant to this paragraph.

	9.	 	The percentages of each Lender for the purpose of A and C above and the rates of charge of
each Lender for the purpose of E above shall be determined by the Administrative Agent based
upon the information supplied to it pursuant to paragraphs 7 and 8 above and
on the assumption that, unless a Lender notifies the Administrative Agent to the contrary,
each Lender’s obligations in relation to cash ratio deposits and Special Deposits are the same
as those of a typical bank from its jurisdiction of incorporation with a Lending Office in the
same jurisdiction as its Lending Office.

	10.	 	The Administrative Agent shall have no liability to any Person if such determination results
in an Additional Cost Rate which over- or under-compensates any Lender and shall be entitled
to assume that the information provided by any Lender pursuant to paragraphs 3,
7 and 8 above is true and correct in all respects.

	11.	 	The Administrative Agent shall distribute the additional amounts received as a result of the
Mandatory Cost Rate to the Lenders on the basis of the Additional Cost Rate for each Lender
based on the information provided by each Lender pursuant to paragraphs 3, 7
and 8 above.

	12.	 	Any determination by the Administrative Agent pursuant to this Schedule in relation to a
formula, the Mandatory Cost Rate, an Additional Cost Rate or any amount payable to a Lender
shall, in the absence of manifest error, be conclusive and binding on all parties hereto.

	13.	 	The Administrative Agent may from time to time, after consultation with the Borrower and the
Lenders, determine and notify to all parties any amendments which are required to be made to
this Schedule in order to comply with any change in law, regulation or any requirements from
time to time imposed by the Bank of England, the Financial Services Authority or the European
Central Bank (or, in any case, any other authority which replaces all or any of their
respective functions) and any such determination shall, in the absence of manifest error, be
conclusive and binding on all parties hereto.

Schedule 1.1(b)

 

 

Schedule 1.1(c)

Existing Letters of Credit

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Foreign	 	 
	Wells Fargo	 	 	 	 	 	 	 	 	 	Currency	 	Outstanding Amt in
	Reference	 	NOV Reference	 	Beneficiary Name	 	Expiry Date	 	Issue Date	 	Outstanding Amt	 	USD
	00000000447092
	 	00000000447092	 	LUMBERMENS MUTUAL CASUALTY CO.	 	01 Jun 2008	 	02 Jul 2002	 	 	863,000.00	 	 	 	863,000.00	 
	00000000454601
	 	00000000454601	 	PACIFIC EMPLOYERS INSURANCE CO.	 	01 Sep 2008	 	27 Aug 2002	 	 	2,650,000.00	 	 	 	2,650,000.00	 
	00000000481263
	 	00000000481263	 	KCA DEUTAG DRILLING INC.	 	01 Oct 2008	 	23 May 2003	 	 	6,490,771.79	 	 	 	6,490,771.79	 
	00000000483638
	 	00000000483638	 	ACE AMERICAN INSURANCE	 	01 Jun 2008	 	30 May 2003	 	 	29,632,705.00	 	 	 	29,632,705.00	 
	00000000529801
	 	00000000529801	 	THE HONGKONG AND SHANGHAI BANKING	 	20 Oct 2008	 	20 Oct 2004	 	 	700,000.00	 	 	 	700,000.00	 
	00000000535475
	 	00000000535475	 	HSBC BANK PLC	 	15 Jan 2009	 	13 Jan 2005	 	 	120,000.00	 	 	 	236,640.00	 
	00000000552905
	 	00000000552905	 	THE HONGKONG & SHANGHAI BANKING	 	30 Oct 2008	 	08 Sep 2005	 	 	975,868.00	 	 	 	975,868.00	 
	00000000552911
	 	00000000552911	 	THE HONGKONG & SHANGHAI BANKING	 	15 Apr 2009	 	08 Sep 2005	 	 	1,287,130.00	 	 	 	1,287,130.00	 
	00000000559434
	 	00000000559434	 	BANK OF CHINA	 	30 Oct 2008	 	08 Dec 2005	 	 	2,170,434.80	 	 	 	2,170,434.80	 
	00000000559436
	 	00000000559436	 	BANK OF CHINA	 	30 Oct 2008	 	08 Dec 2005	 	 	1,000,172.10	 	 	 	1,000,172.10	 
	00000000559557
	 	00000000559557	 	BANK OF CHINA	 	30 Apr 2008	 	08 Dec 2005	 	 	2,170,435.80	 	 	 	2,170,435.80	 
	00000000559576
	 	00000000559576	 	BANK OF CHINA	 	30 Apr 2008	 	08 Dec 2005	 	 	1,000,172.10	 	 	 	1,000,172.10	 
	00000000559997
	 	00000000559997	 	THE HONGKONG & SHANGHAI BANKING	 	30 Jan 2009	 	14 Dec 2005	 	 	860,850.00	 	 	 	860,850.00	 
	00000000560173
	 	00000000560173	 	THE HONGKONG & SHANGHAI BANKING	 	11 Feb 2009	 	16 Dec 2005	 	 	1,153,654.20	 	 	 	1,153,654.20	 
	00000000563969
	 	00000000563969	 	THE HONGKONG & SHANGHAI BANKING	 	30 Sep 2008	 	06 Feb 2006	 	 	1,102,936.00	 	 	 	1,102,936.00	 
	00000000563978
	 	00000000563978	 	THE HONGKONG & SHANGHAI BANKING	 	14 Jul 2009	 	06 Feb 2006	 	 	3,057,125.00	 	 	 	3,057,125.00	 
	00000000563979
	 	00000000563979	 	THE HONGKONG & SHANGHAI BANKING	 	14 May 2010	 	06 Feb 2006	 	 	3,057,125.00	 	 	 	3,057,125.00	 
	00000000563996
	 	00000000563996	 	THE HONGKONG & SHANGHAI BANKING	 	14 Jul 2009	 	06 Feb 2006	 	 	3,057,125.00	 	 	 	3,057,125.00	 
	00000000564002
	 	00000000564002	 	HSBC BANK PLC	 	01 Nov 2008	 	06 Feb 2006	 	 	1,024,097.20	 	 	 	1,024,097.20	 
	00000000568969
	 	00000000568969	 	AFIANZADORA ASERTA S.A. DE C.V.	 	16 Jul 2009	 	10 Apr 2006	 	 	399,650.75	 	 	 	399,650.75	 
	00000000571582
	 	00000000571582	 	DAEWOO SHIPBUILDING AND MARINE	 	15 Sep 2009	 	16 May 2006	 	 	6,494,741.40	 	 	 	6,494,741.40	 
	00000000573334
	 	00000000573334	 	FIANZAS MONTERREY S.A.	 	26 Apr 2009	 	09 Jun 2006	 	 	400,000.00	 	 	 	400,000.00	 
	00000000574919
	 	00000000574919	 	ING FIANZAS COMERCIAL AMERICA S.A.	 	17 Jul 2008	 	30 Jun 2006	 	 	335,965.03	 	 	 	335,965.03	 
	00000000574986
	 	00000000574986	 	THE HONGKONG AND SHANGHAI BANKING	 	30 Nov 2008	 	30 Jun 2006	 	 	1,277,106.00	 	 	 	1,277,106.00	 
	00000000574987
	 	00000000574987	 	THE HONGKONG & SHANGHAI BANKING	 	30 Nov 2009	 	30 Jun 2006	 	 	2,554,212.00	 	 	 	2,554,212.00	 
	00000000575055
	 	00000000575055	 	THE HONGKONG AND SHANGHAI BANKING	 	30 Apr 2009	 	07 Jul 2006	 	 	1,277,106.00	 	 	 	1,277,106.00	 
	00000000575056
	 	00000000575056	 	THE HONGKONG & SHANGHAI BANKING	 	30 Apr 2010	 	07 Jul 2006	 	 	2,554,212.00	 	 	 	2,554,212.00	 
	00000000577327
	 	00000000577327	 	AFIANZADORA SOFIMEX S.A.	 	28 Aug 2008	 	03 Aug 2006	 	 	371,671.20	 	 	 	371,671.20	 
	00000000578024
	 	00000000578024	 	BRITISH ARAB COMMERCIAL BANK LTD	 	01 Jun 2008	 	14 Aug 2006	 	 	23,918,486.70	 	 	 	23,918,486.70	 

Schedule 1.1(c)

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Foreign	 	 
	Wells Fargo	 	 	 	 	 	 	 	 	 	Currency	 	Outstanding Amt in
	Reference	 	NOV Reference	 	Beneficiary Name	 	Expiry Date	 	Issue Date	 	Outstanding Amt	 	USD
	00000000579295
	 	00000000579295	 	DAEWOO SHIPBUILDING AND MARINE	 	15 Apr 2010	 	01 Sep 2006	 	 	7,468,225.05	 	 	 	7,468,225.05	 
	00000000579673
	 	00000000579673	 	TRANSCANADA PIPELINES LIMITED	 	02 Nov 2008	 	02 Nov 2006	 	 	3,500,000.00	 	 	 	3,424,992.66	 
	00000000580211
	 	00000000580211	 	THE HONGKONG & SHANGHAI BANKING	 	30 Nov 2009	 	14 Sep 2006	 	 	1,277,106.00	 	 	 	1,277,106.00	 
	00000000580216
	 	00000000580216	 	THE HONGKONG & SHANGHAI BANKING	 	15 Dec 2010	 	14 Sep 2006	 	 	2,554,212.00	 	 	 	2,554,212.00	 
	00000000581869
	 	00000000581869	 	DAEWOO SHIPBUILDING AND MARINE	 	31 Oct 2010	 	06 Oct 2006	 	 	7,518,689.65	 	 	 	7,518,689.65	 
	00000000581987
	 	00000000581987	 	HONGKONG AND SHANGHAI BANKING CORP	 	30 Jan 2010	 	11 Oct 2006	 	 	303,103.00	 	 	 	303,103.00	 
	00000000583539
	 	00000000583539	 	THE HONGKONG AND SHANGHAI BANKING	 	01 Jun 2008	 	01 Nov 2006	 	 	1,654,403.00	 	 	 	1,654,403.00	 
	00000000583540
	 	00000000583540	 	THE HONGKONG AND SHANGHAI BANKING	 	30 Jul 2008	 	01 Nov 2006	 	 	6,114,249.00	 	 	 	6,114,249.00	 
	00000000586698
	 	00000000586698	 	THE HONGKONG AND SHANGHAI BANKING	 	30 Dec 2008	 	15 Dec 2006	 	 	2,554,211.00	 	 	 	2,554,211.00	 
	00000000586699
	 	00000000586699	 	THE HONGKONG AND SHANGHAI BANKING	 	28 Feb 2009	 	15 Dec 2006	 	 	2,554,211.00	 	 	 	2,554,211.00	 
	00000000587845
	 	00000000587845	 	ING FIANZAS COMERCIAL AMERICA S.A	 	10 Sep 2008	 	04 Jan 2007	 	 	765,755.00	 	 	 	765,755.00	 
	00000000589510
	 	00000000589510	 	THE HONGKONG AND SHANGHAI BANKING	 	14 Feb 2011	 	29 Jan 2007	 	 	3,630,335.00	 	 	 	3,630,335.00	 
	00000000589512
	 	00000000589512	 	HONGKONG & SHANGHAI BANKING CORP	 	28 Feb 2010	 	29 Jan 2007	 	 	3,630,335.00	 	 	 	3,630,335.00	 
	00000000591107
	 	00000000591107	 	HONGKONG & SHANGHAI BANKING CORP	 	01 Jun 2008	 	20 Feb 2007	 	 	2,205,871.00	 	 	 	2,205,871.00	 
	00000000591464
	 	00000000591464	 	SINGLE BUOY MOORINGS, INC.	 	21 Nov 2010	 	26 Feb 2007	 	 	3,034,998.00	 	 	 	3,034,998.00	 
	00000000591768
	 	00000000591768	 	BRITISH ARAB COMMERCIAL BANK LTD	 	31 May 2008	 	02 Mar 2007	 	 	1,335,000.00	 	 	 	1,335,000.00	 
	00000000591776
	 	00000000591776	 	BRITISH ARAB COMMERCIAL BANK LTD	 	30 Nov 2009	 	02 Mar 2007	 	 	890,000.00	 	 	 	890,000.00	 
	00000000592018
	 	00000000592018	 	PERVOURALSKY NOVOTRUBNY WORKS	 	15 May 2008	 	06 Mar 2007	 	 	843,440.00	 	 	 	843,440.00	 
	00000000592178
	 	00000000592178	 	SOCIETE GENERALE	 	30 Jul 2009	 	08 Mar 2007	 	 	1,033,603.80	 	 	 	1,637,125.06	 
	00000000592187
	 	00000000592187	 	SOCIETE GENERALE	 	30 Jul 2009	 	08 Mar 2007	 	 	516,801.90	 	 	 	818,562.53	 
	00000000594217
	 	00000000594217	 	HONGKONG & SHANGHAI BANKING CORP	 	30 Jul 2008	 	09 Apr 2007	 	 	1,569,793.00	 	 	 	1,569,793.00	 
	00000000596498
	 	00000000596498	 	HSBC BANK AUSTRALIA LIMITED	 	11 May 2009	 	11 May 2007	 	 	376,800.00	 	 	 	376,800.00	 
	00000000596515
	 	00000000596515	 	PT CITRA TUBINDO TBK	 	30 Jun 2008	 	11 May 2007	 	 	560,000.00	 	 	 	560,000.00	 
	00000000597768
	 	00000000597768	 	HSBC BANK PLC	 	30 Jul 2008	 	30 May 2007	 	 	1,677,784.67	 	 	 	1,677,784.67	 
	00000000597770
	 	00000000597770	 	HSBC BANK PLC	 	30 Jul 2008	 	30 May 2007	 	 	1,676,363.42	 	 	 	1,676,363.42	 
	00000000598016
	 	00000000598016	 	NOR OFFSHORE PTE, LTD.	 	06 Jun 2008	 	05 Jun 2007	 	 	6,186,000.00	 	 	 	6,186,000.00	 
	00000000599150
	 	00000000599150	 	THE HONGKONG AND SHANGHAI BANKING	 	30 Nov 2009	 	18 Jun 2007	 	 	2,266,515.00	 	 	 	2,266,515.00	 
	00000000599160
	 	00000000599160	 	THE HONGKONG AND SHANGHAI BANKING	 	15 Nov 2010	 	19 Jun 2007	 	 	2,266,515.00	 	 	 	2,266,515.00	 
	00000000600704
	 	00000000600704	 	HONGKONG & SHANGHAI BANKING CORP	 	30 Jul 2008	 	11 Jul 2007	 	 	2,093,057.00	 	 	 	2,093,057.00	 
	00000000600824
	 	00000000600824	 	THE HONGKONG AND SHANGHAI BANKING	 	30 Jun 2008	 	12 Jul 2007	 	 	2,009,795.00	 	 	 	2,009,795.00	 
	00000000600917
	 	00000000600917	 	DAEWOO SHIPBUILDING AND MARINE	 	28 Feb 2011	 	13 Jul 2007	 	 	6,802,255.85	 	 	 	6,802,255.85	 
	00000000601080
	 	00000000601080	 	FEDERAL STATE UNITARY ENTERPRISE	 	01 Feb 2009	 	19 Jul 2007	 	 	385,592.60	 	 	 	385,592.60	 
	00000000601247
	 	00000000601247	 	DANIELI AND C. OFFICINE MECCANICHE	 	30 Oct 2008	 	19 Jul 2007	 	 	557,537.50	 	 	 	557,537.50	 
	00000000601618
	 	00000000601618	 	ZURICH AMERICAN INSURANCE COMPANY	 	24 Jul 2008	 	25 Jul 2007	 	 	13,040,000.00	 	 	 	13,040,000.00	 

Schedule 1.1(c)

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Foreign	 	 
	Wells Fargo	 	 	 	 	 	 	 	 	 	Currency	 	Outstanding Amt in
	Reference	 	NOV Reference	 	Beneficiary Name	 	Expiry Date	 	Issue Date	 	Outstanding Amt	 	USD
	00000000602294
	 	JU290006	 	JIANG YIN XING CHENG SPECIAL STEEL	 	15 Nov 2008	 	03 Aug 2007	 	 	300,000.00	 	 	 	300,000.00	 
	00000000603063
	 	00000000603063	 	BANKMUSCAT SAOG	 	20 Sep 2008	 	15 Aug 2007	 	 	714,748.00	 	 	 	714,748.00	 
	00000000603079
	 	00000000603079	 	THE HONGKONG AND SHANGHAI BANKING	 	30 Nov 2009	 	15 Aug 2007	 	 	2,554,211.00	 	 	 	2,554,211.00	 
	00000000603090
	 	00000000603090	 	THE HONGKONG AND SHANGHAI BANKING	 	30 Apr 2009	 	15 Aug 2007	 	 	2,554,211.00	 	 	 	2,554,211.00	 
	00000000603094
	 	00000000603094	 	NATIONAL BANK OF KUWAIT	 	28 Nov 2008	 	15 Aug 2007	 	 	3,714,491.20	 	 	 	3,714,491.20	 
	00000000603535
	 	00000000603535	 	BANK OF CHINA	 	16 May 2009	 	22 Aug 2007	 	 	2,810,000.00	 	 	 	2,810,000.00	 
	00000000603635
	 	00000000603635	 	COMMERCIAL BANK OF KUWAIT S.A.K.	 	05 Feb 2009	 	23 Aug 2007	 	 	1,741,991.67	 	 	 	1,741,991.67	 
	00000000603904
	 	00000000603904	 	FEDERAL STATE UNITARY ENTERPRISE	 	17 Aug 2008	 	28 Aug 2007	 	 	696,662.00	 	 	 	696,662.00	 
	00000000603973
	 	NAOIL-1000SYN	 	FEDERAL STATE UNITARY ENTERPRISE	 	17 Aug 2008	 	29 Aug 2007	 	 	348,331.00	 	 	 	348,331.00	 
	00000000606801
	 	NOV-10000SYN	 	THE HONGKONG AND SHANGHAI BANKING	 	15 Feb 2011	 	12 Oct 2007	 	 	1,560,497.00	 	 	 	1,560,497.00	 
	00000000606802
	 	00000000606802	 	THE HONGKONG AND SHANGHAI BANKING	 	28 Feb 2010	 	15 Oct 2007	 	 	340,000.00	 	 	 	340,000.00	 
	00000000606933
	 	00000000606933	 	THE HONGKONG AND SHANGHAI BANKING	 	30 Jun 2008	 	16 Oct 2007	 	 	2,679,727.00	 	 	 	2,679,727.00	 
	00000000607075
	 	00000000607075	 	BARIVEN S.A. C/O PDVSA SERVICES,	 	30 Oct 2008	 	17 Oct 2007	 	 	683,850.00	 	 	 	683,850.00	 
	00000000607514
	 	00000000607514	 	EUROBANK TEKFEN A.S.	 	23 Jul 2011	 	24 Oct 2007	 	 	447,655.00	 	 	 	447,655.00	 
	00000000607564
	 	00000000607564	 	HSBC BANK AUSTRALIA LIMITED	 	11 May 2009	 	25 Oct 2007	 	 	376,800.00	 	 	 	376,800.00	 
	00000000607586
	 	00000000607586	 	PDVSA SERVICES, INC.,	 	08 Aug 2008	 	25 Oct 2007	 	 	1,048,837.56	 	 	 	1,048,837.56	 
	00000000607686
	 	00000000607686	 	BANK OF CHINA	 	16 Oct 2008	 	29 Oct 2007	 	 	1,085,217.90	 	 	 	1,085,217.90	 
	00000000607734
	 	00000000607734	 	BANK OF CHINA	 	16 Oct 2008	 	29 Oct 2007	 	 	500,086.05	 	 	 	500,086.05	 
	00000000608543
	 	NAOIL-RIG	 	HONGKONG & SHANGHAI BANKING CORP.	 	30 Apr 2008	 	09 Nov 2007	 	 	360,000.00	 	 	 	360,000.00	 
	00000000608835
	 	HYDRA-1020SYN	 	BRITISH ARAB COMMERCIAL BANK LTD	 	25 Jan 2009	 	14 Nov 2007	 	 	372,591.50	 	 	 	372,591.50	 
	00000000609107
	 	00000000609107	 	BARALONGB	 	31 Dec 2009	 	19 Nov 2007	 	 	3,507,798.00	 	 	 	3,507,798.00	 
	00000000609765
	 	00000000609765	 	BANK OF CHINA	 	30 Nov 2009	 	28 Nov 2007	 	 	417,000.00	 	 	 	417,000.00	 
	00000000610235
	 	00000000610235	 	HONGKONG & SHANGHAI BANKING CORP	 	30 Apr 2010	 	05 Dec 2007	 	 	4,890,000.00	 	 	 	4,890,000.00	 
	00000000610236
	 	00000000610236	 	THE HONGKONG AND SHANGHAI BANKING	 	14 Nov 2011	 	05 Dec 2007	 	 	2,445,000.00	 	 	 	2,445,000.00	 
	00000000610297
	 	00000000610297	 	HONGKONG & SHANGHAI BANKING CORP	 	01 Aug 2009	 	06 Dec 2007	 	 	995,759.70	 	 	 	995,759.70	 
	00000000610305
	 	00000000610305	 	HONGKONG & SHANGHAI BANKING CORP	 	15 May 2009	 	06 Dec 2007	 	 	995,759.70	 	 	 	995,759.70	 
	00000000610614
	 	4974895P	 	KOREA EXCHANGE BANK	 	14 Nov 2011	 	12 Dec 2007	 	 	19,094,242.00	 	 	 	19,094,242.00	 
	00000000610756
	 	00000000610756	 	SWIBER ENGINEERING LTD.	 	05 Jan 2010	 	13 Dec 2007	 	 	5,738,040.00	 	 	 	5,738,040.00	 
	00000000610937
	 	00000000610937	 	HONGKONG & SHANGHAI BANKING CORP	 	01 Aug 2009	 	14 Dec 2007	 	 	1,028,321.70	 	 	 	1,028,321.70	 
	00000000611461
	 	00000000611461	 	BRITISH ARAB COMMERCIAL BANK LTD	 	30 Dec 2009	 	21 Dec 2007	 	 	1,573,719.50	 	 	 	1,573,719.50	 
	00000000611468
	 	00000000611468	 	BRITISH ARAB COMMERCIAL BANK LTD	 	30 Dec 2009	 	21 Dec 2007	 	 	1,604,342.10	 	 	 	1,604,342.10	 
	00000000611613
	 	00000000611613	 	BANK OF CHINA	 	30 Jun 2009	 	26 Dec 2007	 	 	1,290,000.00	 	 	 	1,290,000.00	 
	00000000612485
	 	00000000612485	 	ANHUI TIANDA OIL PIPE COMPANY	 	31 May 2009	 	11 Jan 2008	 	 	394,000.00	 	 	 	394,000.00	 
	00000000614674
	 	00000000614674	 	BARIVEN, S.A.	 	11 Mar 2009	 	15 Feb 2008	 	 	493,669.98	 	 	 	493,669.98	 

Schedule 1.1(c)

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Foreign	 	 
	Wells Fargo	 	 	 	 	 	 	 	 	 	Currency	 	Outstanding Amt in
	Reference	 	NOV Reference	 	Beneficiary Name	 	Expiry Date	 	Issue Date	 	Outstanding Amt	 	USD
	00000000615122
	 	00000000615122	 	HONGKONG AND SHANGHAI BANKING CORP	 	30 May 2008	 	25 Feb 2008	 	 	303,816.75	 	 	 	303,816.75	 
	00000000616068
	 	00000000616068	 	TIANJIN PIPE INTERNATIONAL ECONOMI	 	15 Aug 2009	 	10 Mar 2008	 	 	614,310.00	 	 	 	614,310.00	 
	00000000617341
	 	00000000617341	 	BANK OF CHINA LIMITED	 	31 Jan 2010	 	24 Mar 2008	 	 	743,850.00	 	 	 	743,850.00	 
	00000000618046
	 	00000000618046	 	BRITISH ARAB COMMERCIAL BANK LTD	 	30 Jan 2010	 	02 Apr 2008	 	 	3,092,869.90	 	 	 	3,092,869.90	 
	00000000618259
	 	00000000618259	 	HSBC BANK (CHINA) COMPANY LTD.	 	15 May 2009	 	07 Apr 2008	 	 	5,430,580.95	 	 	 	5,430,580.95	 
	00000000618262
	 	00000000618262	 	HSBC BANK (CHINA) COMPANY LTD.	 	15 May 2009	 	07 Apr 2008	 	 	3,620,387.30	 	 	 	3,620,387.30	 
	00000000618759
	 	00000000618759	 	BANCO COMERCIAL PORTUGUES SA	 	29 Oct 2011	 	14 Apr 2008	 	 	2,789,770.00	 	 	 	2,789,770.00	 
	00000000903032
	 	5320	 	HSBC BANK PLC	 	30 Jul 2011	 	27 Oct 2006	 	 	6,650,000.00	 	 	 	6,650,000.00	 
	00000000903035
	 	QGP-SO17510-NOV	 	SINGLE BUOY MOORINGS, INC.	 	02 Sep 2009	 	27 Oct 2006	 	 	2,899,713.80	 	 	 	2,899,713.80	 
	00000000903036
	 	SO17530-NOV	 	SINGLE BUOY MOORINGS, INC.	 	22 Feb 2010	 	27 Oct 2006	 	 	2,669,046.75	 	 	 	2,669,046.75	 
	00000000903421
	 	JU292006	 	THE HONGKONG AND SHANGHAI BANKING	 	02 Mar 2009	 	17 Apr 2007	 	 	2,554,211.00	 	 	 	2,554,211.00	 
	00000000903422
	 	00000000903422	 	THE HONGKONG AND SHANGHAI BANKING	 	31 Dec 2008	 	17 Apr 2007	 	 	2,554,211.00	 	 	 	2,554,211.00	 
	00000000903840
	 	146606AR	 	BRITISH ARAB COMMERCIAL BANK LTD	 	30 Jul 2009	 	14 Sep 2007	 	 	3,082,864.60	 	 	 	3,082,864.60	 
	00000000903857
	 	00000000903857	 	KOREA EXCHANGE BANK	 	30 Jul 2009	 	19 Sep 2007	 	 	23,641,363.00	 	 	 	23,641,363.00	 
	00000000903899
	 	7967-1B	 	SWIBER ENGINEERING LTD.	 	05 Jan 2010	 	03 Oct 2007	 	 	5,738,040.00	 	 	 	5,738,040.00	 
	00000000904028
	 	20842	 	DELBA DRILLING INTERNATIONAL	 	31 Mar 2010	 	26 Nov 2007	 	 	5,621,262.10	 	 	 	5,621,262.10	 
	00000000904165
	 	SP143-77	 	STANDARD CHARTERED BK PHILIPPINES	 	15 Jul 2008	 	25 Jan 2008	 	 	360,000.00	 	 	 	360,000.00	 
	00000000904167
	 	COSL1	 	INDUSTRIAL & COMM'L BANK OF CHINA	 	15 Sep 2009	 	28 Jan 2008	 	 	10,165,027.36	 	 	 	10,165,027.36	 
	00000000904168
	 	COSL1A	 	INDUSTRIAL & COMM'L BANK OF CHINA	 	01 Oct 2009	 	28 Jan 2008	 	 	1,605,004.32	 	 	 	1,605,004.32	 
	 
	 	 	 	 	 	 	 	 	 	Subtotal:	 	 	351,250,115.45	 

Continued:

Schedule 1.1(c)

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Foreign	 	 
	Wells Fargo	 	 	 	 	 	Expiry	 	 	 	Currency	 	Outstanding Amt in
	Reference	 	Grant Prideco Reference	 	Beneficiary Name	 	Date	 	Issue Date	 	Outstanding Amt	 	USD
	00000000457779
	 	00000000457779	 	ENTERGY GULF STATES, INC.	 	15 Dec 2008	 	20 Sep 2002	 	 	25,000.00	 	 	 	25,000.00	 
	00000000900265
	 	VAM 7,600 TUBE	 	VALLOUREC & MANNESMANN TUBES	 	15 May 2008	 	13 Apr 2004	 	 	7,600.00	 	 	 	7,600.00	 
	00000000900802
	 	DREX2 120,000 RH	 	HSBC BANK EGYPT	 	01 Dec 2008	 	23 Sep 2004	 	 	120,000.00	 	 	 	120,000.00	 
	00000000901364
	 	AUD 10,878.40 RH	 	HSBC BANK AUSTRALIA LIMITED	 	30 Apr 2009	 	11 Mar 2005	 	 	10,898.48	 	 	 	10,124.69	 
	00000000901527
	 	RASGAS 70000 RHD	 	HSBC BANK - MIDDLE EAST	 	28 Feb 2009	 	18 Apr 2005	 	 	75,000.00	 	 	 	75,000.00	 
	00000000901712
	 	OGDC 24000 RH	 	HONGKONG & SHANGHAI BANKING CORP.	 	15 Jan 2009	 	20 Jun 2005	 	 	24,000.00	 	 	 	24,000.00	 
	00000000902195
	 	DUBAI 137478 RHM	 	HSBC BANK MIDDLE EAST	 	31 Jan 2009	 	30 Dec 2005	 	 	137,478.00	 	 	 	37,430.37	 
	00000000902405
	 	GULF 76390 GPSI	 	HSBC BANK EGYPT	 	28 Aug 2008	 	16 Mar 2006	 	 	76,390.00	 	 	 	76,390.00	 
	00000000902683
	 	HIND10000RH62306	 	HONGKONG & SHANGHAI BANKING CORP.	 	31 Aug 2008	 	26 Jun 2006	 	 	10,000.00	 	 	 	10,000.00	 
	00000000902729
	 	KOD4846240RHI707	 	HONGKONG & SHANGHAI BANKING CORP.	 	27 Jul 2008	 	10 Jul 2006	 	 	48,462.40	 	 	 	48,462.40	 
	00000000902751
	 	KOD48462RH70706	 	HONGKONG & SHANGHAI BANKING CORP.	 	28 Jul 2008	 	18 Jul 2006	 	 	48,462.40	 	 	 	48,462.40	 
	00000000902895
	 	REL31618RH090506	 	HONGKONG & SHANGHAI BANKING CORP.	 	01 May 2008	 	06 Sep 2006	 	 	31,618.00	 	 	 	31,618.00	 
	00000000902917
	 	OGDC3749TA091506	 	HONGKONG & SHANGHAI BANKING CORP.	 	05 Feb 2009	 	18 Sep 2006	 	 	1,874.95	 	 	 	1,874.95	 
	00000000902963
	 	REL620RHI092906	 	HONGKONG & SHANGHAI BANKING CORP.	 	30 May 2008	 	03 Oct 2006	 	 	620.00	 	 	 	620.00	 
	00000000903104
	 	RIL438RH112806	 	HONGKONG & SHANGHAI BANKING CORP.	 	30 Jun 2008	 	28 Nov 2006	 	 	438.00	 	 	 	438.00	 
	00000000903114
	 	OGDC158880RH1206	 	HSBC-KARACHI	 	31 Oct 2008	 	13 Dec 2006	 	 	79,440.00	 	 	 	79,440.00	 
	00000000903130
	 	NDC45876GP121306	 	HSBC BANK MIDDLE EAST	 	07 Sep 2008	 	13 Dec 2006	 	 	45,876.00	 	 	 	45,876.00	 
	00000000903188
	 	RIL3,343RH010807	 	HONGKONG & SHANGHAI BANKING CORP.	 	30 Aug 2008	 	09 Jan 2007	 	 	3,343.00	 	 	 	3,343.00	 
	00000000903252
	 	GULF20168GP20507	 	HSBC BANK EGYPT	 	29 Jul 2008	 	06 Feb 2007	 	 	20,168.00	 	 	 	20,168.00	 
	00000000903254
	 	HIN5000RHIN12907	 	HONGKONG & SHANGHAI BANKING CORP.	 	27 Oct 2008	 	01 Feb 2007	 	 	5,000.00	 	 	 	5,000.00	 
	00000000903295
	 	EXMOBI1958521607	 	HSBC BANK MALAYSIA BERHAD	 	02 Jun 2011	 	20 Feb 2007	 	 	19,585.00	 	 	 	19,585.00	 

Schedule 1.1(c)

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Foreign	 	 
	Wells Fargo	 	 	 	 	 	Expiry	 	 	 	Currency	 	Outstanding Amt in
	Reference	 	Grant Prideco Reference	 	Beneficiary Name	 	Date	 	Issue Date	 	Outstanding Amt	 	USD
	00000000903328
	 	NDC913914GP22707	 	HSBC BANK MIDDLE EAST	 	11 Sep 2008	 	28 Feb 2007	 	 	9,139.14	 	 	 	9,139.14	 
	00000000903334
	 	OGDC2320TA12507	 	HONGKONG & SHANGHAI BANKING CORP.	 	15 Apr 2009	 	20 Dec 2007	 	 	2,320.00	 	 	 	2,320.00	 
	00000000903387
	 	OGDC42368TA33007	 	HONGKONG & SHANGHAI BANKING CORP.	 	30 Dec 2008	 	02 Apr 2007	 	 	43,314.00	 	 	 	43,314.00	 
	00000000903388
	 	ONGC11781RH33007	 	HONGKONG & SHANGHAI BANKING CORP.	 	30 Jul 2008	 	02 Apr 2007	 	 	11,781.00	 	 	 	11,781.00	 
	00000000903418
	 	TURK768322S41207	 	EUROBANK TEKFEN A.S.	 	15 Nov 2008	 	13 Apr 2007	 	 	17,683.22	 	 	 	17,683.22	 
	00000000903419
	 	TURK6333660S4137	 	EUROBANK TEKFEN A.S.	 	15 Nov 2008	 	13 Apr 2007	 	 	63,336.60	 	 	 	63,336.60	 
	00000000903462
	 	ENT75000RH42707	 	ENTERGY GULF STATES INC	 	01 Jan 2009	 	02 May 2007	 	 	75,000.00	 	 	 	75,000.00	 
	00000000903636
	 	NDC415196GP62607	 	HSBC BANK MIDDLE EAST	 	31 Aug 2008	 	05 Jul 2007	 	 	415,196.00	 	 	 	415,196.00	 
	00000000903655
	 	RIL2,388RH070207	 	HONGKONG & SHANGHAI BANKING CORP.	 	30 Apr 2008	 	09 Jul 2007	 	 	2,388.00	 	 	 	2,388.00	 
	00000000903854
	 	RIL10,600RH91807	 	HONGKONG & SHANGHAI BANKING CORP.	 	30 Jul 2008	 	19 Sep 2007	 	 	10,600.00	 	 	 	10,600.00	 
	00000000903855
	 	RIL3,041RH091807	 	HONGKONG & SHANGHAI BANKING CORP.	 	31 Aug 2008	 	19 Sep 2007	 	 	3,041.00	 	 	 	3,041.00	 
	00000000903898
	 	RIL2,712RH100207	 	HONGKONG AND SHANGHAI BANKING CORP	 	30 Jul 2008	 	02 Oct 2007	 	 	2,712.00	 	 	 	2,712.00	 
	00000000903980
	 	JOG17000RH021308	 	HONGKONG & SHANGHAI BANKING CORP.	 	30 May 2009	 	14 Feb 2008	 	 	17,000.00	 	 	 	17,000.00	 
	00000000903981
	 	PEL30000RHMNOV07	 	HONGKONG & SHANGHAI BANKING CORP.	 	17 Mar 2009	 	02 Nov 2007	 	 	30,000.00	 	 	 	30,000.00	 
	00000000904112
	 	RIL9,821RH010708	 	HONGKONG & SHANGHAI BANKING CORP.	 	31 Jul 2008	 	08 Jan 2008	 	 	9,821.00	 	 	 	9,821.00	 
	00000000904121
	 	SON640,614RH1908	 	BRITISH ARAB COMMERCIAL BANK LTD	 	02 Mar 2011	 	15 Jan 2008	 	 	640,614.00	 	 	 	640,614.00	 
	00000000904138
	 	ENF178829GP11508	 	BRITISH ARAB COMMERCIAL BANK LTD	 	30 Jun 2009	 	18 Jan 2008	 	 	178,829.00	 	 	 	178,829.00	 
	00000000904140
	 	ONGC12400RH11608	 	HONGKONG & SHANGHAI BANKING CORP.	 	30 Jun 2008	 	17 Jan 2008	 	 	12,400.00	 	 	 	12,400.00	 
	00000000904143
	 	OGDC31150RH22508	 	HONGKONG & SHANGHAI BANKING CORP.	 	31 Jul 2009	 	27 Feb 2008	 	 	31,150.00	 	 	 	31,150.00	 
	00000000904144
	 	OGDCRH100K11508	 	HONGKONG & SHANGHAI BANKING CORP.	 	30 Jul 2008	 	18 Jan 2008	 	 	100,000.00	 	 	 	100,000.00	 
	00000000904197
	 	ONGC5049RH020508	 	HONGKONG & SHANGHAI BANKING CORP.	 	30 Jul 2008	 	05 Feb 2008	 	 	5,049.00	 	 	 	5,049.00	 
	00000000904209
	 	RAS250000RH21208	 	HSBC BANK - MIDDLE EAST	 	31 Jan 2010	 	21 Feb 2008	 	 	250,000.00	 	 	 	250,000.00	 
	00000000904221
	 	ENTP115KGP022008	 	BRITISH ARAB COMMERCIAL BANK LTD	 	23 Nov 2008	 	22 Feb 2008	 	 	115,814.23	 	 	 	115,814.23	 

Schedule 1.1(c)

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Foreign	 	 
	Wells Fargo	 	 	 	 	 	Expiry	 	 	 	Currency	 	Outstanding Amt in
	Reference	 	Grant Prideco Reference	 	Beneficiary Name	 	Date	 	Issue Date	 	Outstanding Amt	 	USD
	00000000904226
	 	ENTP6,762GP22108	 	BRITISH ARAB COMMERCIAL BANK LTD	 	23 Nov 2008	 	22 Feb 2008	 	 	6,762.41	 	 	 	6,762.41	 
	00000000904227
	 	ENTP6,302GP22108	 	BRITISH ARAB COMMERCIAL BANK LTD	 	23 Nov 2008	 	22 Feb 2008	 	 	6,302.39	 	 	 	6,302.39	 
	00000000904228
	 	ENTP52,470GP2210	 	BRITISH ARAB COMMERCIAL BANK LTD	 	23 Nov 2008	 	22 Feb 2008	 	 	52,470.53	 	 	 	52,470.53	 
	00000000904240
	 	NDC143418GP30308	 	HSBC BANK MIDDLE EAST	 	01 Aug 2009	 	04 Mar 2008	 	 	143,418.00	 	 	 	143,418.00	 
	00000000904287
	 	VSP7500RHM031108	 	HONGKONG & SHANGHAI BANKING CORP.	 	15 Sep 2008	 	12 Mar 2008	 	 	7,500.00	 	 	 	7,500.00	 
	00000000904288
	 	VSP17500RHM31108	 	HONGKONG & SHANGHAI BANKING CORP.	 	23 Sep 2008	 	12 Mar 2008	 	 	21,500.00	 	 	 	21,500.00	 
	00000000904306
	 	VSP1500RH031808	 	HONGKONG & SHANGHAI BANKING CORP.	 	16 Sep 2008	 	19 Mar 2008	 	 	1,500.00	 	 	 	1,500.00	 
	00000000904325
	 	PCV4400RH032708	 	HONG KONG & SHANGHAI BANKING	 	31 Mar 2010	 	28 Mar 2008	 	 	4,400.00	 	 	 	4,400.00	 
	00000000904343
	 	KAR25000RH040108	 	ABN AMRO BANK	 	09 Jun 2008	 	02 Apr 2008	 	 	25,000.00	 	 	 	25,000.00	 
	 
	 	 	 	 	 	 	 	 	 	Subtotal:	 	 	3,006,474.33	 

Continued:

Schedule 1.1(c)

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Foreign	 	 	 	 
	Wells Fargo	 	Grant Prideco	 	 	 	 	 	 	 	Currency	 	 	Outstanding Amt in	 
	Reference	 	Reference	 	Beneficiary Name	 	Expiry Date	 	Issue Date	 	Outstanding Amt	 	 	USD
	00000000900286
	 	00000000900286	 	ACE AMERICAN INSURANCE COMPANY	 	15 Apr 2009	 	19 Apr 2004	 	 	1,322,508.00	 	 	 	1,322,508.00	 
	00000000901562
	 	AIG-NAT 2095000	 	NATIONAL UNION FIRE INSURANCE CO O	 	01 May 2008	 	27 Apr 2005	 	 	526,000.00	 	 	 	526,000.00	 
	00000000901816
	 	COPI 41353 RHJAK	 	HONGKONG & SHANGHAI BANKING CORP.	 	19 Jul 2008	 	20 Mar 2006	 	 	41,353.75	 	 	 	41,353.75	 
	00000000902718
	 	TOTAL750KXL0630	 	HSBC FRANCE	 	28 Aug 2008	 	12 Jul 2006	 	 	750,000.00	 	 	 	750,000.00	 
	00000000902780
	 	CAR250000072507	 	HSBC BANK MALAYSIA BERHAD	 	03 Mar 2011	 	28 Jul 2006	 	 	250,000.00	 	 	 	250,000.00	 
	00000000902846
	 	TOTAL233KXL82206	 	HSBC FRANCE	 	15 Feb 2011	 	23 Aug 2006	 	 	233,854.00	 	 	 	233,854.00	 
	00000000903140
	 	PV47472GP121506	 	BANK FOR FOREIGN TRADE OF VIETNAM	 	09 Jul 2009	 	19 Dec 2006	 	 	47,472.20	 	 	 	47,472.20	 
	 
	 	 	 	 	 	 	 	 	 	Subtotal:	 	 	3,171,187.95	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Foreign	 	 
	JPMorgan Chase	 	 	 	 	 	 	 	 	 	Currency	 	Outstanding Amt in
	Bank Reference	 	NOV Reference	 	Beneficiary Name	 	Expiry Date	 	Issue Date	 	Outstanding Amt	 	USD
	L5LS-578630
	 	2148	 	HYUNDAI HEAVY INDUSTRIES CO., LTD.	 	30 Nov 2010	 	14 Mar 2008	 	 	 	 	 	 	28,641,363.00	 
	 
	 	 	 	 	 	 	 	 	 	Subtotal:	 	 	28,641,363.00	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Bank of	 	 	 	 	 	 	 	 	 	 	 	 
	Nova Scotia	 	 	 	 	 	 	 	 	 	Foreign	 	 
	(Scotiabank)	 	 	 	 	 	 	 	 	 	Currency	 	Outstanding Amt in
	Reference	 	NOV Reference	 	Beneficiary Name	 	Expiry Date	 	Issue Date	 	Outstanding Amt	 	USD
	239393
	 	 	 	ENAFOR	 	06 July 2008	 	04 Apr 2006	 	 	3,013,933.00	 	 	 	3,013,933.00	 
	267337
	 	 	 	OILLAND	 	23 Apr 2008	 	14 Dec 2007	 	 	68,000.00	 	 	 	68,000.00	 
	 
	 	 	 	 	 	 	 	 	 	Subtotal:	 	 	3,081,933	 

Total for all Existing Letters of Credit: $389,151,073.73 

Schedule 1.1(c)

 

 

EXHIBIT A

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 [the][each]1 Assignor
identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2
Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and
agreed that the rights and obligations of [the Assignors][the Assignees]3 hereunder are
several and not joint.]4 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][each] 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][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and
assumes from [the Assignor][the respective Assignors], 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][the respective Assignors’]
rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] 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][the respective Assignors] under the respective facilities
identified below (including without limitation any letters of credit, guarantees, and swingline
loans 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][the respective Assignors (in their respective capacities as Lenders)] 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, but not limited to, 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 by [the][any] Assignor to [the][any] Assignee pursuant to clauses
(i) and (ii) above being referred to herein collectively as [the][an] “Assigned Interest”).
Each such sale and assignment is without recourse to [the][any] Assignor and, except as expressly
provided in this Assignment and Assumption, without representation or warranty by [the][any]
Assignor.

	 	 	 	 	 
	1. Assignor[s]:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	2. Assignee[s]:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

 

			
	1	 	For bracketed language here and elsewhere in this form
relating to the Assignor(s), if the assignment is from a single Assignor,
choose the first bracketed language. If the assignment is from multiple
Assignors, choose the second bracketed language.
	 
	2	 	For bracketed language here and elsewhere in this form
relating to the Assignee(s), if the assignment is to a single Assignee, choose
the first bracketed language. If the assignment is to multiple Assignees,
choose the second bracketed language.
	 
	3	 	Select as appropriate.
	 
	4	 	Include bracketed language if there are either multiple Assignors
or multiple Assignees.

Exhibit A

Page 1 of 5 

 

	 	 	 	 	 
	 	 	[for each Assignee, indicate Affiliate of [identify Lender]
	 
	 	 	 	 
	3.

	 	Borrower:
	 	NATIONAL OILWELL VARCO, INC.
	 
	 	 	 	 
	4.

	 	Administrative Agent:
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 
	5.

	 	Credit Agreement:
	 	The $2,000,000,000 5-Year Credit Agreement
dated as of April 21, 2008 among Borrower,
the Lenders parties thereto, the
Administrative Agent, and the other agents
parties thereto.
	 
	 	 	 	 
	6.

	 	Assigned Interest[s]:	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Aggregate	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount of	 	 	Amount of	 	 	Percentage	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Revolving	 	 	Revolving	 	 	Assigned of	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Commitment/	 	 	Commitment/	 	 	Revolving	 	 	 	 
	 	 	 	Assignee	 	 	Facility	 	 	Advances for all	 	 	Advances	 	 	Commitment/	 	 	CUSIP	 
	Assignor[s]	 	[s]	 	 	Assigned	 	 	Lenders5	 	 	Assigned8	 	 	Advances6	 	 	Number	 
	 
	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	%	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	%	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	%	 	 	 	 	 

[7. Trade Date:                                    ]7

Effective Date:                      ___, 20___[TO BE INSERTED BY THE 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[S]

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	ASSIGNEE[S]

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

Consented to and Accepted:

 

			
	5	 	Amount to be adjusted by the counterparties to take
into account any payments or prepayments made between the Trade Date and the
Effective Date.
	 
	6	 	Set forth, to at least 9 decimals, as a percentage of
the Commitment/Advances of all Lenders thereunder.
	 
	7	 	To be completed if the Assignor(s) and the Assignee(s)
intend that the minimum assignment amount is to be determined as of the Trade
Date.

Exhibit A

Page 2 of 5 

 

	 	 	 	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as 

Administrative Agent	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	[Consented to:]8	 	 
	 
	 	 	 	 
	[NAME OF ISSUING LENDERS]	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	[NAME OF SWINGLINE LENDERS]	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	NATIONAL OILWELL VARCO, INC.	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 

 

			
	8	 	Borrower’s consent not necessary if Event of Default exists.

Exhibit A

Page 3 of 5 

 

ANNEX 1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties.

1.1 Assignor[s]. [The][Each] Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of [the][the relevant] Assigned Interest, (ii) [the][such] 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 Credit Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit 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 Credit 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 Credit Document.

1.2. Assignee[s]. [The][Each] 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 meets all the requirements set forth in the definition of “Eligible
Assignee” under the Credit Agreement (subject to such consents, if any, as may be required
thereunder), (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][the relevant] Assigned
Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect
to decisions to acquire assets of the type represented by the Assigned Interest and either it, or
the person exercising discretion in making its decision to acquire the Assigned Interest, is
experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement,
and has received or has been accorded the opportunity to receive copies of the most recent
financial statements delivered pursuant to Section 5.6 thereof, as applicable, and such other
documents and information as it deems appropriate to make its own credit analysis and decision to
enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, (vi) it
has, independently and without reliance upon the Administrative 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 Assignment and Assumption and to purchase [the][such] Assigned
Interest, and (vii) 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][such] Assignee; and (b) agrees that (i) it will, independently and
without reliance on the Administrative Agent, [the][any] 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 Credit Documents, and (ii) it will
perform in accordance with their terms all of the obligations which by the terms of the Credit
Documents are required to be performed by it as a Lender.

2. Payments. From and after the Effective Date, the Administrative Agent shall make all
payments in respect of [the][each] Assigned Interest (including payments of principal, interest,
fees and other amounts) to [the][the relevant] Assignee whether such amounts have accrued prior to,
on or after the Effective Date. The Assignor[s] and the Assignee[s] shall make all appropriate
adjustments in payments by the Administrative Agent for periods prior to the Effective Date or with
respect to the making of this assignment directly between themselves.

Exhibit A

Page 4 of 5 

 

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 A

Page 5 of 5 

 

EXHIBIT B

COMPLIANCE CERTIFICATE

     This certificate dated as of                      ___, 20___is prepared pursuant to Section 5.6 [(a)]
[(b)] of the 5-Year Credit Agreement dated as of April 21, 2008 (as it may be amended in accordance
with its terms, the “Credit Agreement”) among National Oilwell Varco, Inc. (the “Borrower”), the
Lenders, Wells Fargo Bank, National Association, as Administrative Agent, and the other agents
named therein. Unless otherwise defined in this certificate, capitalized terms that are defined in
the Credit Agreement shall have the meaning set forth in the Credit Agreement.

     The Borrower hereby certifies to the Administrative Agents and the Lenders as follows:

     A. The attached financial statements are (check one) [ ] quarterly financial statements dated
                    , [ ] annual financial statements dated                     , and fairly
present on a consolidated basis the balance sheet, statements of income and retained earnings and
cash flows of the Borrower covered thereby as of the date thereof and for the period covered
thereby, other than the omission of any footnotes as permitted at such time by the SEC and subject
to normal year-end audit adjustments for any such financial statements that are quarterly financial
statements.

     B. As of the date of the attached financial statements and with respect to the Borrower on a
consolidated basis:

     C. The compliance with the provisions of Section 6.9 is as follows:

	 	 	 
	Leverage Ratio
	Actual	 	Required
	___to 1.00
	 	0.50 to 1.00

     D. No Default has occurred or is continuing and all of the representations and warranties made
by the Borrower in the Credit Agreement and each other Credit Document (other than the
representation and warranty made under Section 4.15(b) of the Credit Agreement) are true and
correct in all material respects as if made on this date, except to the extent that such
representations and warranties expressly relate solely to an earlier date, in which case they are
true and correct in all material respects as of such earlier date.

     Executed this ___day of                     , 20___.

	 	 	 	 	 
	 	 	NATIONAL OILWELL VARCO, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Exhibit B

Page 1 of 1 

 

EXHIBIT C

NOTICE OF BORROWING

[DATE]

Wells Fargo Bank, National Association,

as Administrative Agent under the Credit Agreement herein described

1740 Broadway

C7300-034

Denver, Colorado 80274

Attention: Agency Syndication

Ladies and Gentlemen:

The undersigned, NATIONAL OILWELL VARCO, INC., a Delaware corporation (the “Borrower”), refers to
the 5-Year Credit Agreement dated as of April 21, 2008 (as the same may be further amended or
modified from time to time, the “Credit Agreement,” the defined terms of which are used in this
Notice of Borrowing unless otherwise defined in this Notice of Borrowing) among the Borrower, the
Lenders, Wells Fargo Bank, National Association as the Administrative Agent and hereby gives you
irrevocable notice pursuant to Section 2.2(a) of the Credit Agreement that the undersigned hereby
requests a Revolving Borrowing, and in connection with that request sets forth below the
information relating to such Revolving Borrowing (the “Proposed Borrowing”) as required by
Section 2.2(a) of the Credit Agreement:

     (a) The Business Day of the Proposed Borrowing is                     , 20_ .

     (b) The Proposed Borrowing will be a Revolving Borrowing composed of [Prime Rate
Advances] [Eurocurrency Rate Advances].

     (c) The aggregate amount of the Proposed Borrowing is $                    .

     (d) The Interest Period for each Eurocurrency Rate Advance made as part of the Proposed
Borrowing is [___month[s]].

     [(e) The Designated Currency of the Proposed Borrowing is                     .]

The undersigned hereby certifies that the following statements are true on the date hereof, and
will be true on the date of the Proposed Borrowing:

               (1) the representations and warranties contained in the Credit Agreement and each of the
other Credit Documents (other than the representation and warranty made under Section 4.15(b) of
the Credit Agreement)* are true and correct in all material respects on and as of the
date of Proposed Borrowing, before and after giving effect to such Proposed Borrowing and to the
application of the proceeds from such Proposed Borrowing, as though made on and as of the date of
such Proposed

 

			
	*	 	This parenthetical shall not apply with respect to the
Notice of Borrowing made for the initial Advance under the Credit Agreement.

Exhibit C
Page 1 of 2 

 

Borrowing, except to the extent that any such representation or warranty expressly relates
solely to an earlier date, in which case such representations and warranties are true and correct
in all material respects as of such earlier date; and

          (2) no Default has occurred and is continuing or would result from the Proposed Borrowing or
from the application of the proceeds therefrom.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	NATIONAL OILWELL VARCO, INC.,
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Exhibit C

Page 2 of 2 

 

EXHIBIT D

NOTICE OF CONVERSION OR CONTINUATION

[Date]

Wells Fargo Bank, National Association,

as Administrative Agent under the Credit Agreement herein described

1740 Broadway

C7300-034

Denver, Colorado 80274

Attention: Agency Syndication

Ladies and Gentlemen:

The undersigned, National Oilwell Varco, Inc., a Delaware corporation (the “Borrower”), refers to
the
5-Year Credit Agreement dated as of April 21, 2008, (as the same may be further amended or modified
from time to time, the “Credit Agreement,” the defined terms of which are used in this Notice of
Conversion or Continuation unless otherwise defined in this Notice of Conversion or Continuation),
among the Borrower, the Lenders, Wells Fargo Bank, National Association as the Administrative
Agent, and the other agents named therein and hereby gives you irrevocable notice pursuant to
Section 2.2(b) of the Credit Agreement that the undersigned hereby requests a Conversion or
continuation of an outstanding Revolving Borrowing, and in connection with that request sets forth
below the information relating to such Conversion or continuation (the “Proposed Borrowing”) as
required by Section 2.2(b) of the Credit Agreement:

     (a) The Business Day of the Proposed Borrowing is                     , 20_ .

     (b) The Proposed Borrowing will be a composed of [Prime Rate Advances] [Eurocurrency
Rate Advances].

     (c) The aggregate amount of the Revolving Borrowing to be Converted or continued is $
                     and consists of [Prime Rate Advances] [Eurocurrency Rate Advances].

     (d) The Proposed Borrowing consists of [a Conversion to [Prime Rate Advances]
[Eurocurrency Rate Advances]] [a continuation of [Prime Rate Advances] [Eurocurrency Rate
Advances]].

     (e) The Interest Period for each Eurocurrency Rate Advance made as part of the Proposed
Borrowing is [___month[s]].

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	NATIONAL OILWELL VARCO, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Exhibit D

Page 1 of 1 

 

EXHIBIT E

FORM OF REVOLVING NOTE

			
	 	 	 
	$                                        
	 	                    , 20___

     For value received, the undersigned NATIONAL OILWELL VARCO, INC., a Delaware corporation
(“Borrower”), hereby promises to pay to the order of                                          (“Lender”) the
principal amount of
                     and ___/100 Dollars ($        ) or, if less, the aggregate
outstanding principal amount of each Revolving Advance (as defined in the Credit Agreement referred
to below) made by the Lender to the Borrower, together with interest on the unpaid principal amount
of each such Revolving Advance from the date of such Revolving Advance until such principal amount
is paid in full, at such interest rates, and at such times, as are specified in the Credit
Agreement.

     This Revolving Note is one of the Revolving Notes referred to in, and is entitled to the
benefits of, and is subject to the terms of, the 5-Year Credit Agreement dated as of April 21, 2008
(as the same may be further amended or modified from time to time, the “Credit Agreement”), among
the Borrower, the lenders party thereto from time to time (including the Lender), Wells Fargo Bank,
National Association, as Administrative Agent, and the other agents named therein. Capitalized
terms used in this Revolving Note that are defined in the Credit Agreement and not otherwise
defined in this Revolving Note have the meanings assigned to such terms in the Credit Agreement.
The Credit Agreement, among other things, (a) provides for the making of Revolving Advances by the
Lender to the Borrower from time to time in an aggregate amount not to exceed at any time
outstanding the Dollar Amount first above mentioned and (b) contains provisions for acceleration of
the maturity of this Revolving Note upon the happening of certain events stated in the Credit
Agreement and for prepayments of principal prior to the maturity of this Revolving Note upon the
terms and conditions specified in the Credit Agreement.

     Both principal and interest are payable in the Designated Currency of the Revolving Advances
to the Administrative Agent at 1000 Louisiana, 9th Floor, Houston, Texas 77002 (or at
such other location or address as may be specified by the Administrative Agent to the Borrower) in
same day funds. The Lender shall record all Revolving Advances and payments of principal made
under this Revolving Note, but no failure of the Lender to make such recordings shall affect the
Borrower’s repayment obligations under this Revolving Note.

     Except as specifically provided in the Credit Agreement, the Borrower hereby waives
presentment, demand, protest, notice of intent to accelerate, notice of acceleration, and any other
notice of any kind. No failure to exercise, and no delay in exercising, any rights hereunder on
the part of the holder of this Note shall operate as a waiver of such rights.

Exhibit E
Page 1 of 2 

 

     This Revolving Note shall be governed by, and construed and enforced in accordance with, the
laws of the state of New York without regard to conflict of law principles thereof.

     THIS WRITTEN NOTE, TOGETHER WITH THE OTHER CREDIT DOCUMENTS, AS DEFINED IN THE CREDIT
AGREEMENT, REPRESENT THE FINAL AGREEMENT BETWEEN THE BORROWER AND THE LENDER WITH RESPECT TO THE
SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE BORROWER AND THE LENDER.

	 	 	 	 	 
	 	 	NATIONAL OILWELL VARCO, INC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Exhibit E

Page 2 of 2 

 

EXHIBIT F

FORM OF SWINGLINE NOTE

			
	 	 	 
	$                                        
	 	                    , 20___

     For value received, the undersigned NATIONAL OILWELL VARCO, INC., a Delaware corporation
(“Borrower”), hereby promises to pay to the order of                                          (“Swingline Lender”)
the principal amount of                      and ___/100 Dollars ($       ) or, if less, the
aggregate outstanding principal amount of each Swingline Advance (as defined in the Credit
Agreement referred to below) made by the Swingline Lender to the Borrower, together with interest
on the unpaid principal amount of each such Swingline Advance from the date of such Swingline
Advance until such principal amount is paid in full, at such interest rates, and at such times, as
are specified in the Credit Agreement.

     This Swingline Note is one of the Swingline Notes referred to in, and is entitled to the
benefits of, and is subject to the terms of, the 5-Year Credit Agreement dated as of April 21, 2008
(as the same may be further amended or modified from time to time, the “Credit Agreement”), among
the Borrower, the lenders party thereto from time to time (including the Swingline Lender), Wells
Fargo Bank, National Association, as Administrative Agent, and the other agents named therein.
Capitalized terms used in this Swingline Note that are defined in the Credit Agreement and not
otherwise defined in this Swingline Note have the meanings assigned to such terms in the Credit
Agreement. The Credit Agreement, among other things, (a) provides for the making of Swingline
Advances by the Swingline Lender to the Borrower from time to time in an aggregate amount not to
exceed at any time outstanding the Dollar Amount first above mentioned and (b) contains provisions
for acceleration of the maturity of this Swingline Note upon the happening of certain events stated
in the Credit Agreement and for prepayments of principal prior to the maturity of this Swingline
Note upon the terms and conditions specified in the Credit Agreement.

     Both principal and interest are payable in the Designated Currency of the Swingline Advances
to the Swingline Lender at                                                              (or at such other location or
address as may be specified by the Swingline Lender to the Borrower) in same day funds. The
Swingline Lender shall record all Swingline Advances and payments of principal made under this
Swingline Note, but no failure of the Swingline Lender to make such recordings shall affect the
Borrower’s repayment obligations under this Swingline Note.

     Except as specifically provided in the Credit Agreement, the Borrower hereby waives
presentment, demand, protest, notice of intent to accelerate, notice of acceleration, and any other
notice of any kind. No failure to exercise, and no delay in exercising, any rights hereunder on
the part of the holder of this Note shall operate as a waiver of such rights.

Exhibit F

Page 1 of 2 

 

     This Swingline Note shall be governed by, and construed and enforced in accordance with, the
laws of the state of New York without regard to conflict of law principles thereof.

     THIS WRITTEN NOTE, TOGETHER WITH THE OTHER CREDIT DOCUMENTS, AS DEFINED IN THE CREDIT
AGREEMENT, REPRESENT THE FINAL AGREEMENT BETWEEN THE BORROWER AND THE SWINGLINE LENDER WITH RESPECT
TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE BORROWER AND THE SWINGLINE LENDER.

	 	 	 	 	 
	 	 	NATIONAL OILWELL VARCO, INC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Exhibit F

Page 2 of 2

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