Document:

Credit Agreement

 Exhibit 10.1 
 [Execution] 
  
  
  
 $250,000,000 
 CREDIT AGREEMENT 
 among 
 DMLP, LTD. 
 TALON EXPLORATION, LTD., 
 TRANSATLANTIC TURKEY, LTD. and 
 PETROLEUM EXPLORATION MEDITERRANEAN INTERNATIONAL PTY. LTD., 
 as Borrowers,

 INCREMENTAL PETROLEUM (SELMO) PTY. LTD., 
 TRANSATLANTIC WORLDWIDE, LTD., 
 TRANSATLANTIC PETROLEUM (USA) CORP. and 

TRANSATLANTIC PETROLEUM LTD., as Guarantors, 
 THE LENDERS PARTY HERETO 
 FROM TIME TO TIME 
 as Lenders, 
 and

 STANDARD BANK PLC, 
 as LC Issuer, Administrative Agent, 
 Collateral Agent and Technical Agent

 Dated as of December 21, 2009 
  
  
  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
			
	ARTICLE 1	 	 DEFINITIONS
	  	1
			
	 1.1  
	 	 Defined Terms
	  	1
	 1.2  
	 	 Other Definitional Provisions
	  	25
	 1.3  
	 	 Cross References
	  	26
			
	ARTICLE 2	 	 THE COMMITMENTS AND CREDIT EXTENSIONS
	  	26
			
	 2.1  
	 	 Establishment of the Credit Facility
	  	26
	 2.2  
	 	 Loans
	  	26
	 2.3  
	 	 Borrowings and Continuations of Loans
	  	26
	 2.4  
	 	 Letters of Credit
	  	28
	 2.5  
	 	 Prepayments
	  	33
	 2.6  
	 	 Termination or Reduction of Commitments; Increase of Commitments
	  	35
	 2.7  
	 	 Repayment of Loans
	  	36
	 2.8  
	 	 Interest
	  	36
	 2.9  
	 	 Fees
	  	36
	 2.10
	 	 Computation of Interest and Fees
	  	37
	 2.11
	 	 Payment Procedures; Clawback
	  	37
	 2.12
	 	 Evidence of Indebtedness
	  	38
	 2.13
	 	 Sharing of Payments by Lenders
	  	39
			
	ARTICLE 3	 	 BORROWING BASE
	  	39
			
	 3.1  
	 	 Initial Borrowing Base
	  	39
	 3.2  
	 	 Scheduled Redeterminations
	  	39
	 3.3  
	 	 Interim Redeterminations
	  	41
	 3.4  
	 	 Standards for Redetermination
	  	41
	 3.5  
	 	 Borrowing Base Deficiency
	  	42
	 3.6  
	 	 Operational Lock-Up
	  	42
			
	ARTICLE 4	 	 TAXES AND YIELD PROTECTION
	  	43
			
	 4.1  
	 	 Taxes
	  	43
	 4.2  
	 	 Increased Costs
	  	43
	 4.3  
	 	 Mitigation Obligations
	  	45
	 4.4  
	 	 Breakage Costs
	  	45
	 4.5  
	 	 Survival
	  	45
			
	ARTICLE 5	 	 CONDITIONS PRECEDENT
	  	45
			
	 5.1  
	 	 Conditions to Closing
	  	45
	 5.2  
	 	 Collection Accounts
	  	48
	 5.3  
	 	 Conditions to Credit Extension to Talon
	  	49
			
	ARTICLE 6	 	 REPRESENTATIONS AND WARRANTIES
	  	49
			
	 6.1  
	 	 Existence; Subsidiaries
	  	49
	 6.2  
	 	 Capacity; Authorization; Non-Contravention
	  	49
	 6.3  
	 	 Governmental Authorizations; Other Consents
	  	49
	 6.4  
	 	 Binding Effect
	  	49
	 6.5  
	 	 Financial Statements; No Material Adverse Effect
	  	50
	 6.6  
	 	 Disclosure
	  	50
	 6.7  
	 	 Litigation
	  	50
	 6.8  
	 	 No Default
	  	50
	 6.9  
	 	 Ownership of Properties
	  	50
	 6.10
	 	 Indebtedness; Liens
	  	51

  

 -ii- 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
			
	 6.11
	 	 Compliance with Law
	  	51
	 6.12
	 	 Environmental Compliance
	  	51
	 6.13
	 	 Insurance
	  	51
	 6.14
	 	 Use of Proceeds
	  	51
	 6.15
	 	 Investment Company Act
	  	51
	 6.16
	 	 Taxes
	  	51
	 6.17
	 	 Pension Plans
	  	52
	 6.18
	 	 Solvency
	  	52
	 6.19
	 	 Hedge Agreements
	  	52
	 6.20
	 	 Eligible Contracts; Hydrocarbon Licenses
	  	52
	 6.21
	 	 Accounts
	  	52
	 6.22
	 	 Status of Obligations
	  	52
	 6.23
	 	 Immunity from Suit
	  	52
			
	ARTICLE 7	 	 AFFIRMATIVE COVENANTS
	  	53
			
	 7.1  
	 	 Financial Statements; Reporting
	  	53
	 7.2  
	 	 Information on Hydrocarbon Interests
	  	54
	 7.3  
	 	 Notices
	  	56
	 7.4  
	 	 Payment of Obligations
	  	57
	 7.5  
	 	 Preservation of Existence
	  	57
	 7.6  
	 	 Compliance with Contractual Obligations and Law
	  	57
	 7.7  
	 	 Maintenance of Properties
	  	57
	 7.8  
	 	 Maintenance of Insurance
	  	58
	 7.9  
	 	 Books and Records; “Know-Your-Client” Information
	  	58
	 7.10
	 	 Inspection Rights
	  	58
	 7.11
	 	 Use of Proceeds
	  	59
	 7.12
	 	 Additional Collateral; Additional Subsidiaries, etc
	  	59
	 7.13
	 	 Collection Accounts
	  	61
	 7.14
	 	 Hydrocarbon Hedge Agreement
	  	63
	 7.15
	 	 Status of Obligations
	  	63
	 7.16
	 	 Designated Hedge Agreement
	  	63
	 7.17
	 	 Local Block Account
	  	63
			
	ARTICLE 8	 	 NEGATIVE COVENANTS
	  	63
			
	 8.1  
	 	 Indebtedness
	  	63
	 8.2  
	 	 Liens
	  	64
	 8.3  
	 	 Agreements Restricting Liens
	  	66
	 8.4  
	 	 Merger or Consolidation; Fundamental Changes
	  	66
	 8.5  
	 	 Disposals
	  	66
	 8.6  
	 	 Restricted Payments
	  	67
	 8.7  
	 	 Investments
	  	67
	 8.8  
	 	 Transactions with Affiliates
	  	68
	 8.9  
	 	 Sales and Leasebacks
	  	68
	 8.10
	 	 Change of Business; Change of Country Focus
	  	68
	 8.11
	 	 Change in Organic Documents
	  	68
	 8.12
	 	 Change in Fiscal Periods or Accounting Principles
	  	68
	 8.13
	 	 Modification of Certain Agreements
	  	68
	 8.14
	 	 Limits on Speculative Hedges
	  	69
	 8.15
	 	 Restrictions on Accounts
	  	69
	 8.16
	 	 Local Blocked Account
	  	69
	 8.17
	 	 Financial Covenants
	  	69

  

 -iii- 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
			
	ARTICLE 9	 	 EVENTS OF DEFAULT
	  	70
			
	 9.1  
	 	 Events of Default
	  	70
	 9.2  
	 	 Automatic Acceleration
	  	72
	 9.3  
	 	 Optional Acceleration
	  	73
	 9.4  
	 	 Application of Funds
	  	73
	 9.5  
	 	 Borrowers’ Right to Cure
	  	74
			
	ARTICLE 10	 	 GUARANTEE
	  	75
			
	 10.1  
	 	 Guarantee
	  	75
	 10.2  
	 	 Obligations Unconditional
	  	75
	 10.3  
	 	 Waiver of Presentment
	  	76
	 10.4  
	 	 Reinstatement
	  	76
	 10.5  
	 	 Subrogation
	  	76
	 10.6  
	 	 Continuing Guarantee
	  	76
	 10.7  
	 	 Instrument for the Payment of Money
	  	76
	 10.8  
	 	 General Limitation on Guarantee Obligations
	  	76
	 10.9  
	 	 Joint and Several Liability of Borrowers
	  	77
			
	ARTICLE 11	 	 AGENCY PROVISIONS
	  	77
			
	 11.1  
	 	 Appointment and Authority
	  	77
	 11.2  
	 	 Rights as a Lender
	  	77
	 11.3  
	 	 Exculpatory Provisions
	  	77
	 11.4  
	 	 Reliance by Agents
	  	78
	 11.5  
	 	 Delegation of Duties
	  	78
	 11.6  
	 	 Resignation of Agents
	  	79
	 11.7  
	 	 Non-Reliance on Agents and Other Lenders
	  	79
	 11.8  
	 	 No Other Duties
	  	79
	 11.9  
	 	 Indemnification
	  	80
	 11.10
	 	 Indemnified Matters
	  	80
	 11.11
	 	 Administrative Agent May File Proofs of Claim
	  	80
	 11.12
	 	 Collateral and Guarantee Matters
	  	81
			
	ARTICLE 12	 	 MISCELLANEOUS
	  	81
			
	 12.1  
	 	 Amendments
	  	81
	 12.2  
	 	 Notices
	  	83
	 12.3  
	 	 No Waiver; Cumulative Remedies
	  	85
	 12.4  
	 	 Survival of Representations and Warranties
	  	85
	 12.5  
	 	 Payment of Expenses and Taxes
	  	85
	 12.6  
	 	 Indemnification
	  	85
	 12.7  
	 	 Successors and Assigns
	  	86
	 12.8  
	 	 Right of Set-off
	  	88
	 12.9  
	 	 Delinquent Lenders
	  	88
	 12.10
	 	 Counterparts
	  	89
	 12.11
	 	 Severability
	  	89
	 12.12
	 	 Other Transactions
	  	89
	 12.13
	 	 Integration
	  	89
	 12.14
	 	 GOVERNING LAW
	  	90
	 12.15
	 	 SUBMISSION TO JURISDICTION; WAIVERS
	  	90
	 12.16
	 	 Acknowledgments
	  	91
	 12.17
	 	 USA PATRIOT Act Notice
	  	91
	 12.18
	 	 Confidential Information
	  	91

  

 -iv- 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
			
	 12.19
	 	 Public Information
	  	92
	 12.20
	 	 WAIVER OF JURY TRIAL
	  	92
	 12.21
	 	 Judgment Currency
	  	92
	 12.22
	 	 Australian Entities Reorganization
	  	93

  

 -v- 

 SCHEDULES: 
  

			
	 Schedule I
	  	 Commitments

	 Schedule II
	  	 Funding Office and Wire Instructions

	 Schedule III
	  	 Disclosure Schedule

	 Schedule IV
	  	 Organization Chart

	 Schedule V
	  	 Hydrocarbon Licenses

 EXHIBITS: 
  

			
	 EXHIBIT A
	  	 Form of Note

	 EXHIBIT B
	  	 Form of Notice of Borrowing

	 EXHIBIT C
	  	 Form of Letter of Credit

	 EXHIBIT D
	  	 Form of Compliance Certificate

	 EXHIBIT E
	  	 Form of Assignment Agreement

 CREDIT AGREEMENT 
 THIS CREDIT AGREEMENT (this “Agreement”) is entered into as of December 21, 2009 among (1) DMLP, LTD., a Bahamas
international business company (“DMLP”), (2) PETROLEUM EXPLORATION MEDITERRANEAN INTERNATIONAL PTY. LTD. (ABN 35 121 104 167), an Australian proprietary company (“PEMI”), (3) TALON EXPLORATION, LTD., a
corporation duly organized and validly existing under the laws of Bahamas (“Talon”), (4) TRANSATLANTIC TURKEY, LTD., a corporation duly organized and validly existing under the laws of Bahamas (“TAT”, and
together with DMLP, PEMI and Talon, each a “Borrower” and, collectively, the “Borrowers”)), (5) the Guarantors (as defined herein), (6) each of the lenders party hereto from time to time (the
“Lenders”), (7) STANDARD BANK PLC, as the letter of credit issuer (in such capacity, the “LC Issuer”) and (8) STANDARD BANK PLC, as administrative agent (in such capacity, the “Administrative
Agent”), collateral agent (in such capacity, the “Collateral Agent”) and technical agent (in such capacity, the “Technical Agent”). 
 ARTICLE 1 
 DEFINITIONS 
 1.1 Defined Terms. As used in this Agreement, the following terms shall have the meanings specified in this Section 1.1.

 “Abandonment Date” means (i) in respect of the Borrowers’ Selmo field operations,
December 31, 2023 and (ii) in respect of the Borrowers’ Thrace Basin operations, December 31, 2012. 
 “Affiliate” means, as to a specified Person, another Person that directly or indirectly is in Control of, is Controlled by, or is under common Control with, such specified Person. 
 “Aggregate Facility Exposure” means, at any time, the sum of (a) the principal amounts of all Loans made by all
Lenders and outstanding at such time and (b) the aggregate amount of the LC Outstandings (if any) at such time. 
 “Agents” means, collectively, the Administrative Agent, the Collateral Agent and the Technical Agent. 
 “Agreement” means this Credit Agreement, together with all exhibits and schedules hereto, as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms hereof.

 “Applicable Law” means, as to any Person, property or transaction, all present and future laws, treaties,
statutes, regulations, judgments and decrees (in each case, whether international, foreign, federal, state, provincial, territorial or local) applicable to or binding upon such Person, property or transaction and all applicable requirements,
directives, orders and policies of any Governmental Authority having or purporting to have authority over such Person, property or transaction. 
 “Applicable Margin” means 6.25% per annum. 
 “Arrangers” means, collectively, Standard Bank Plc and BNP Paribas. 
 “Assignment
Agreement” is defined in Section 12.7(c). 

 “Australian Security Documents” means the following documents, each
governed by the laws of Australia, and in form and substance satisfactory to the Collateral Agent (as the same may be amended, amended and restated, supplemented or otherwise modified from time to time): 
  

	 	(a)	an equitable mortgage over all of the issued shares in PEMI; 

  

	 	(b)	a fixed and floating charge over all of the assets and undertaking of PEMI; 

  

	 	(c)	a fixed and floating charge over all of the assets and undertaking of Incremental Petroleum (Selmo); and 

  

	 	(d)	any other document reasonably required by the Collateral Agent to be executed in connection with the creation, attachment and/or perfection of the security interests to
be granted pursuant to the foregoing. 

 “Authorized Officer” means, relative to any Person,
those of its officers, or the officers of its general partners or managing members (as applicable), whose signatures and incumbency shall have been certified to the Administrative Agent pursuant to Section 5.1(k) or Section
7.12(b)(iv). 
 “Bahamas Security Documents” means the following documents, each governed by the laws of
The Bahamas, and in form and substance satisfactory to the Collateral Agent (as the same may be amended, amended and restated, supplemented or otherwise modified from time to time): 
  

	 	(a)	pledge agreements granting Security Interests in all of the Equity Interests in each of DMLP; Talon and TAT, respectively; and 

  

	 	(b)	any other document reasonably required by the Collateral Agent to be executed in connection with the creation, attachment and/or perfection of the security interests to
be granted pursuant to the foregoing. 

 “BNP Paribas” means BNP Paribas (Suisse) SA. 

“Borrowers” is defined in the introductory paragraph hereto. 
 “Borrowing” means a borrowing consisting of Loans, having the same Interest Period, made by each Lender on the same
Borrowing Date and pursuant to the same Notice of Borrowing in accordance with ARTICLE 2. 
 “Borrowing
Base” means: 
 (a) at any time prior to the Commitment Reduction Date, the lesser of (i) $250,000,000 and
(ii) the Present Value at such time (as further reduced if necessary to meet the requirements of Section 3.4); and 
 (b) at any time on or after the Commitment Reduction Date, the lesser of (i) $250,000,000 (but only if the Supermajority Lenders consent to such amount and subject to Section 12.1(b)), (ii) the aggregate Commitments of
all Lenders in effect at such time (but only if the Supermajority Lenders do not consent to such amount in clause (i)) and (iii) the Present Value at such time (as further reduced if necessary to meet the requirements of
Section 3.4). 
  

 2 

 “Borrowing Base Deficiency” means, on any date of determination, a
situation where (a) the aggregate outstanding amount of the Loans plus the LC Outstandings (if any) at such time, exceeds (b) the Borrowing Base then in effect. 
 “Borrowing Base Deficiency Notice” is defined in Section 3.5. 
 “Borrowing Base Deficiency Cure Notice” is defined in Section 3.5. 
 “Borrowing
Date” means any Business Day requested by a Borrower as a date on which Loans are to be made pursuant to this Agreement. 
 “Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in (a) Istanbul, Turkey, (b) London, England or (c) New York, New York are authorized or required by law to
close; provided that with respect to payments of principal and interest on Loans, such day is also a day for trading by and between banks in Dollar deposits in the London interbank market. 
 “Capital Expenditure” means, for the Borrowers and their respective Subsidiaries for any period, the sum of, without
duplication, all items of expenditure that are capital in nature made, directly or indirectly, by such Person or any of its Subsidiaries during such period in connection with the exploration, development and/or production of Hydrocarbons or the
acquisition or replacement of plant, equipment and fixed assets that have been or should be capitalized on the balance sheet of such Person in accordance with GAAP. 
 “Capital Lease Obligations” means, as to any Person, the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real
or personal property, or a combination thereof, to the extent such obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person in accordance with GAAP. 
 “Cash Collateral Account” means an interest-bearing cash collateral account established by a Borrower with the Collateral
Agent into which cash collateral for any Letter of Credit shall be deposited from time to time, and in respect of which the Collateral Agent shall have sole dominion and control and exclusive rights of withdrawal therefrom. 
 “Cash Collateralize” means, with respect to any Letter of Credit, the deposit in a Cash Collateral Account of cash
denominated in the same currency as such Letter of Credit as security for the LC Obligations in respect of such Letter of Credit in an amount not less than 105% of the then undrawn face amount of such Letter of Credit. 
 “Casualty Event” means, with respect to the assets or property of any Borrower or its Subsidiaries, any loss of or damage
to, or any condemnation or other taking of, such assets or property which results in a reduction of the Borrowers’ Proved Reserves and for which such Borrower or its Subsidiaries receives Casualty Proceeds. 
 “Casualty Proceeds” means all proceeds of insurance and other monetary compensation received by a Borrower or any of its
Subsidiaries in connection with a Casualty Event. 
 “Casualty Reinvestment Deferred Amount” means, with
respect to a Casualty Event, any portion of the Casualty Proceeds that, as a result of the delivery of a Casualty Reinvestment Notice, is not applied to prepay the Loans pursuant to Section 2.5(b)(ii). 
  

 3 

 “Casualty Reinvestment Notice” means, in connection with a Casualty Event,
a written notice executed by a Responsible Officer of the relevant Borrower certifying to the Collateral Agent that (a) no Default or Event of Default has occurred and is continuing as of the date of such notice, (b) the assets or property
that have suffered loss or damage are necessary for the business of such Borrower or its Subsidiaries and (c) such Borrower or its Subsidiaries intend to use all or part of the Casualty Proceeds to replace or repair such assets or property.

 “Casualty Reinvestment Prepayment Amount” means, with respect to a Casualty Event, any Casualty Reinvestment
Deferred Amount relating thereto minus any amount spent by the relevant Borrower or its Subsidiaries prior to the Casualty Reinvestment Prepayment Date to replace or repair assets or property that have suffered loss or damage as a result of
such Casualty Event. 
 “Casualty Reinvestment Prepayment Date” means, with respect to any Casualty Event, the
earlier of (a) the date falling one hundred and eighty (180) days after such Casualty Event and (b) the date on which a Borrower shall have determined not to, or failed to, or shall have otherwise ceased to, replace or repair assets
or property that suffered loss or damage as a result of such Casualty Event. 
 “Change of Control” means the
occurrence of any of the following events: 
  

	 	(a)	the failure by the Parent to own, of record and beneficially, all of the Equity Interests in PEMI, DMLP, Talon and TAT or to exercise, directly or indirectly,
day-to-day management and operational control of PEMI, DMLP, Talon and TAT; 

  

	 	(b)	the failure by PEMI, DMLP, Talon and TAT to own or hold, directly or indirectly, all of the interests granted to each respective Borrower pursuant to any Hydrocarbon
License set forth on Schedule V hereto (excluding, for the avoidance of doubt, any royalty or other interests therein retained by the GDPA, EMRA or any Governmental Authority issuing such Hydrocarbon License); or 

  

	 	(c)	(i) N. Malone Mitchell, 3rd shall cease for any reason to be the executive chairman of the board of directors of the Parent at any time, (ii) the Permitted
Investors shall cease to own of record and beneficially at least 35% of the common equity interests of the Parent or (iii) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), excluding the Permitted Investors, shall become, or obtain rights (whether by means or warrants, options or otherwise) to become, the “beneficial owner” (as defined
in Rules 13(d)-3 and 13(d) 5 under the Exchange Act), directly or indirectly, of more than 35% of the outstanding common Equity Interests of the Parent entitled to vote for members of the board of directors or equivalent governing body of the Parent
on a fully-diluted basis. 

 “Closing Date” means the date on which all of the conditions
precedent specified in Section 5.1 have been satisfied or waived by the Administrative Agent, acting on the directions of the Majority Lenders. 
 “Collateral” means all assets subject to a Lien pursuant to each Security Document. 
 “Collection Accounts” means the Local Collection Account and the Offshore Collection Account. 
 “Combined” refers to the consolidation of financial reporting in accordance with GAAP. 
  

 4 

 “Combined Current Assets” means, for any Measurement Period, the aggregate
of the Borrowers’ and their Subsidiaries’ unrestricted aggregate cash on hand, marketable securities, prepaid deposits refundable on demand, receivables and oil and gas inventory expected to be realized within twelve (12) months,
minus all trade receivables more than ninety (90) days past due, all as determined on a Combined basis in accordance with GAAP; provided that (a) for the purposes of determining the Current Ratio, the aggregate unused and
uncancelled portion of the Commitments (if any) at such time shall be added to, and constitute part of, the Combined Current Assets, (b) the portion of any oil and gas inventory to which any Person (other than an Obligor) is entitled shall be
excluded from the calculation of Combined Current Assets and (c) non-cash gains arising from unliquidated Hedge Agreements shall be excluded from the calculation of Combined Current Assets. 
 “Combined Current Liabilities” means, for any Measurement Period, the aggregate of the Borrowers’ and their
Subsidiaries’ aggregate liabilities falling due within twelve (12) months (including, without limitation, any long term debt falling due within twelve (12) months, accounts payable, taxes, and payments in lieu of taxes and required
dividends), all as determined on a Combined basis in accordance with GAAP, provided that non-cash losses arising from unliquidated Hedge Agreements shall be excluded from the calculation of Combined Current Liabilities. 
 “Combined Net Income” means, for any Measurement Period, the net income (or loss) of the Borrowers’ and their
Subsidiaries but excluding any extraordinary items (including any net non-cash gains or losses during such Measurement Period arising from the sale, exchange, retirement or other Disposal of capital assets other than in the ordinary course of
business, and any write up or write down of assets during such Measurement Period), all as determined on a Combined basis in accordance with GAAP. 
 “Commitment” means, as to each Lender, the obligation of such Lender to advance Loans or to participate in LC Issuances in an aggregate principal or face amount at any time outstanding up
to but not exceeding: 
  

	 	(a)	as to each Lender party to this Agreement as of the Closing Date, the amount set forth opposite the name of such Lender in Schedule I under the caption
“Commitment Amount”; and 

  

	 	(b)	as to any other Lender, the aggregate amount of the Commitments of the other Lenders acquired by it pursuant to Section 12.7 of this Agreement,

 as the same may be increased or reduced from time to time pursuant to this Agreement. 
 “Commitment Fee Rate” means, as to each Lender, 3.125% per annum of the unused and uncancelled portion of its
Commitment. 
 “Commitment Period” means the period from and including the Closing Date to the Commitment
Termination Date. 
 “Commitment Reduction Date” means March 21, 2011, the date falling fifteen
(15) months after the Closing Date. 
 “Commitment Reduction Amount” means an amount (rounded upwards to
the nearest Dollar) equal to 14.3% of (a) the aggregate Commitments of all Lenders in effect on the Commitment Reduction Date or (b) if the Commitments have been terminated, the outstanding principal amount of the Loans plus the LC
Outstandings (if any) at such time (as the same may be further effected by the provisions of Section 3 hereunder). 
  

 5 

 “Commitment Termination Date” means, the earliest of: 
  

	 	(a)	the Maturity Date; 

  

	 	(b)	the date on which the Commitments are terminated in full or reduced to zero pursuant to this Agreement; and 

  

	 	(c)	the date on which any Commitment Termination Event occurs. 

 “Commitment Termination Event” means any of the following: 
  

	 	(a)	the occurrence of any Event of Default described in Section 9.1(f); or 

  

	 	(b)	the occurrence of any other Event of Default and either (i) all or any portion of the Loans shall have been declared to be due and payable pursuant to ARTICLE
9 or (ii) the Administrative Agent, acting on the direction of the Majority Lenders, shall have given notice to the Borrowers that the Commitments have been terminated. 

 “Compliance Certificate” means a certificate duly completed and executed by a Responsible Officer of the Borrowers
substantially in the form of Exhibit D or in such other form as the Administrative Agent, acting on the directions of the Majority Lenders, may from time to time approve for the purpose of monitoring the Borrowers’ compliance with
the financial covenants contained herein. 
 “Confidential Information” is defined in Section 12.18.

 “Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of
any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 
 “Control” of a Person means the power, directly or indirectly, either to (a) vote 10% or more of the Equity Interests having ordinary voting power for the election of directors, managing directors, managing general
partners or any equivalent body or (b) veto, direct or cause the direction of the management and policies of such Person. 
 “Credit Extension” means (a) a Loan by any Lender and (b) an LC Issuance by the LC Issuer. 
 “Credit Facility” means the credit facility established under this Agreement pursuant to which (a) each Lender shall advance Loans and participate in LC Issuances in accordance with this Agreement and (b) the LC
Issuer shall issue Letters of Credit for the account of a Borrower in accordance with this Agreement. 
 “Current
Ratio” means, for any Measurement Period, the ratio of (a) Combined Current Assets to (b) Combined Current Liabilities. 
  

 6 

 “Default” means any Event of Default or any condition, occurrence or event
that, after the giving of notice or the lapse of time (or both), would constitute an Event of Default. 
 “Delinquent
Credit” means, with respect to any Lender, any Loan or LC Participation required to be funded by such Lender hereunder and not funded by the required date (after giving effect to any applicable grace period). 
 “Delinquent Lender” means, at any time, any Lender (a) with a Delinquent Credit at such time, (b) with a
Delinquent Payment at such time, (c) as to which (i) a voluntary or involuntary case (or comparable proceeding under Applicable Law) has been commenced and is in effect with respect to such Lender at such time, (ii) an administrator,
administrative receiver, receiver, receiver and manager, liquidator, provisional liquidator, trustee, custodian, conservator or other similar official has been appointed under Applicable Law with respect to such Lender or for all or any substantial
part of such Lender’s assets at such time or (iii) such Lender or its parent company has made a general assignment for the benefit of its creditors or has otherwise been adjudicated as, or determined by any Governmental Authority having
regulatory authority over such Lender, its parent company or their respective assets to be, insolvent or bankrupt or (d) that has notified the Borrowers, any Agent or the LC Issuer Bank in writing that it does not intend to comply with any of
its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or under any other agreement in which it has previously committed to extend
credit. 
 “Delinquent Payment” means, with respect to any Lender, any amount required to be paid over by such
Lender to any Agent, the LC Issuer or any other Lender hereunder or under any other Loan Document and not paid by the required date (after giving effect to any applicable grace period). 
 “Delinquent Period” means, with respect to any Delinquent Lender: 
  

	 	(a)	obligated in respect of a Delinquent Credit, the period commencing on the date the applicable Delinquent Credit was required to be extended to a Borrower under this
Agreement (after giving effect to any applicable grace period) and ending on the earlier of the following: (i) the date on which such Delinquent Credit has been funded or reduced to zero and (ii) the date on which the Borrowers and the
Majority Lenders agree, in their sole discretion, to waive the application of Section 12.9 with respect to such Delinquent Credit; 

  

	 	(b)	obligated in respect of a Delinquent Payment, the period commencing on the date the applicable Delinquent Payment was required to have been paid to any Agent, the LC
Issuer or other Lender hereunder or under any other Loan Document (after giving effect to any applicable grace period) and ending on the earlier of the following: (i) the date on which such Delinquent Payment is paid to such Agent, the LC
Issuer or such Lender together with any applicable accrued interest thereon and (ii) the date on which such Agent, the LC Issuer or such Lender (as applicable) agrees, in its sole discretion, to waive the application of Section 12.9 with
respect to such Delinquent Payment; and 

  

	 	(c)	as to which any event referred to in clause (c) of the definition of “Delinquent Lender” has occurred, the period commencing on the date such
event occurred and ending on the earlier of the following: (i) the date on which such event is determined by the Majority Lenders in their reasonable good faith judgment to no longer exist and (ii) the date on which the Borrowers and the
Majority Lenders agree, in their sole discretion, to waive the application of Section 12.9 with respect to such Delinquent Lender. 

  

 7 

 “Designated Hedge Agreement” means each Hedge Agreement entered into by a
Borrower or any of its Subsidiaries with a Designated Hedge Counterparty. 
 “Designated Hedge Counterparty”
means, at the time a Borrower or any of its Subsidiaries enters into a Hedge Agreement and so long as Standard Bank Plc or BNP Paribas (as applicable) is a Lender at such time, Standard Bank Plc, BNP Paribas or any of their respective Affiliates
counterparty to such Hedge Agreement. 
 “Designated Hedge Obligations” means all obligations of a Borrower or
any of its Subsidiaries under each Designated Hedge Agreement (including obligations under any transaction entered into pursuant to the terms thereof). 
 “Disclosure Schedule” means Schedule III. 
 “Dispose” means, with respect to any property, any sale, lease, sale and leaseback, assignment, conveyance, farm-out, license, transfer or other disposition of all or any part of such property, and
“Disposal” shall have a correlative meaning. 
 “Dollar” and “$” mean the
lawful currency of the United States. 
 “Dollar Equivalent” shall mean, with respect to a non-Dollar
denominated amount at any time, the amount in Dollars required to purchase such non-Dollar denominated amount for delivery at such time, as determined by an Agent on the basis of the Spot Rate. 
 “EBITDAX” means, for any Measurement Period and without duplication, Combined Net Income for such Measurement Period plus,
to the extent deducted in calculating such Combined Net Income, the sum of the following for such Measurement Period: (a) Interest Expense, (b) income tax expense, (c) depreciation and amortization expense, (d) amortization of
intangibles (including, but not limited to, goodwill) and organization costs, (e) any extraordinary, unusual or non-recurring non-cash expenses or losses, (f) any other non-cash charges, minus, to the extent included in calculating
such Combined Net Income, the sum of (i) any extraordinary, unusual or non-recurring income or gains (including, whether or not otherwise specified as a separate item in calculating such Combined Net Income, gains on the sales of assets outside
of the ordinary course of business) and (ii) any other non-cash income or gains, all as determined on a Combined basis in accordance with GAAP, and (g) expenses incurred in connection with oil and gas exploration activities entered into in
the ordinary course of business, and (h) transaction costs, expenses and fees incurred in connection with the negotiation, execution, and delivery of this Agreement and the other Loan Documents. 
 “Edirne Gas Sale Agreement” means that certain Natural Gas Sales Agreement dated December 14, 2009 between Petroleum
Exploration Mediterranean International Pty. Ltd., as seller, Petrako Petro, Dogal Gaz, Isaat, Taahhut Isleri v. Dis Ticaret Ltd., Şti Edirne Enerji Petrol Arma 

retim ve Ticaret AŞ., as gas owners, and AKSA Dogalgaz Toptan Satis, as buyer. 
 “Eligible Assignee” means (a) any Lender, (b) any Subsidiary or Affiliate of a Lender or (c) any other commercial bank or financial institution approved by the Administrative Agent and the LC Issuer in their
sole discretion; provided that at no time shall an Obligor, a Delinquent Lender or a Subsidiary or Affiliate of a Delinquent Lender be considered an “Eligible Assignee”. 
  

 8 

 “Eligible Contract” means: 
  

	 	(a)	each Eligible Contract specified in Item 6.20 of the Disclosure Schedule; 

  

	 	(b)	any other purchase agreement entered into between any Borrower or any of its Subsidiaries and an Eligible Offtaker that provides for the purchase by such Eligible
Offtaker of Hydrocarbons produced pursuant to the Hydrocarbon Licenses and has a minimum offtake term of twelve (12) months; and 

  

	 	(c)	any other Person approved by the Majority Lenders in writing. 

 “Eligible Offtaker” shall mean: 
  

	 	(a)	each of Turkiye Petrolleri A.O., Turkiye Petrol Rafinerileri A.S., and AKSA Dogalgaz Toptan Satis; 

  

	 	(b)	in the case of Hydrocarbon Interests operated by any Borrower or its Subsidiaries, any buyer required by Applicable Law; 

  

	 	(c)	in the case of Hydrocarbon Interests not operated by a Borrower or its Subsidiaries, any buyer approved by the operator thereof; and 

  

	 	(d)	any other Person approved by the Majority Lenders in writing. 

 “EMRA” shall mean the Energy Market Regulatory Authority of Turkey, and any successor thereto. 
 “English Security Documents” means the following documents, each governed by English law, and in form and substance satisfactory to the Collateral Agent (as the same may be amended,
amended and restated, supplemented or otherwise modified from time to time): 
  

	 	(a)	a security over cash agreement granting a Security Interest in the Offshore Collection Account; and 

  

	 	(b)	any other document reasonably required by the Collateral Agent to be executed in connection with the creation, attachment and/or perfection of the security interests to
be granted pursuant to the foregoing. 

 “Environment” means, without limitation, all of the
following media: 
  

	 	(a)	land, including surface land, sub-surface strata, sea bed and riverbed under water (as defined in clause (b) below) and any natural or man-made structures;

  

	 	(b)	water, including coastal and inland waters, navigable water, surface water, ground water, drinking water supplies and waters in surface and sub-surface strata; and

  

	 	(c)	air, including indoor and outdoor air and air within buildings and other man-made or natural structure above or below ground, and includes any living organism or
systems supported by any such media. 

  

 9 

 “Environmental Law” means all applicable federal, state, provincial,
territorial, local and foreign laws, statutes, ordinances, codes, rules, standards and regulations, now or hereafter in effect, and any applicable judicial or administrative interpretation thereof, including any applicable judicial or administrative
order, consent decree, order or judgment, in each case above, to the extent imposing liability or standards of conduct for or relating to the regulation and protection of human health, the environment and natural resources (including ambient air,
surface water, groundwater, land surface and subsurface strata). 
 “Environmental Liability” means any and all
liabilities, obligations, penalties, claims, damages (including consequential damages), costs and/or expenses of any kind (including attorneys’ fees reasonably incurred at tribunal, trial and appellate levels, experts’ fees and
disbursements and expenses incurred in investigating, defending or prosecuting any action, claim or proceeding) in connection with or arising from: 
  

	 	(a)	any misrepresentation, inaccuracy or breach of any warranty, contained or referred to in Section 6.12; 

  

	 	(b)	any violation or purported violation by any Borrower or any of its Subsidiaries of any Environmental Law; 

  

	 	(c)	any Release or threatened Release or presence of any Hazardous Material on, at, in, under, from or in the vicinity of any property owned or formerly owned by any
Borrower or any of its Subsidiaries; or 

  

	 	(d)	any removal, remediation, cleanup, closure, restoration, reclamation, landscape rehabilitation or other response activity under any Environmental Law on, at, in, under,
from or in the vicinity of any property owned or formerly owned by any Borrower or any of its Subsidiaries or occupied or used by any Borrower or any of its Subsidiaries in connection with their respective oil and gas and/or mining-related
activities. 

 “Equipment” means any drilling rig and its substructure, engine, braking system,
drill pipe, drill collar and related equipment and parts. 
 “Equity Interests” means, as to any Person,
(a) any and all shares, interests, participations, rights or other equivalents (however designated, whether voting or non-voting) of or interests in corporate or capital stock, including shares of preferred or preference stock of such Person,
(b) all partnership interests (whether general or limited) of such Person, (c) all membership interests or limited liability company interests in such Person, (d) all beneficial interests in a trust or similar entity, (e) all
other equity or ownership interests in such Person of any other type and (f) all warrants, rights or options to purchase or otherwise acquire any of the foregoing. 
 “Event of Default” means any of the events specified in Section 9.1. 
 “Facility Exposure” means, for any Lender at any time, the sum of (a) the principal amount of Loans made by such Lender and outstanding at such time and (b) such Lender’s
share of the LC Outstandings (if any) at such time. 
 “Fee Letter” means the letter agreement dated as of the
Closing Date between the Arrangers and the Parent. 
  

 10 

 “Fiscal Quarter” means any period of three (3) consecutive calendar
months ending on the last day of March, June, September or December. 
 “Fiscal Year” means any period of
twelve (12) consecutive calendar months ending on December 31. 
 “Funded Debt” means, for any
Person, the sum of, without duplication, (a) the outstanding principal amount of all of such Person’s obligations, whether current or long-term, for borrowed money and all obligations evidenced by bonds, debentures, notes, loan agreements
or other similar instruments, plus (b) the outstanding principal amount of all purchase money Indebtedness of such Person, plus (c) all direct obligations of such Person arising under letters of credit, bankers’
acceptances, bank guaranties, surety bonds and similar instruments, plus (d) all obligations in respect of the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business),
plus (e) Indebtedness of such Person in respect of capital leases and Synthetic Obligations, plus (f) all Guarantee Obligations of such Person with respect to outstanding Indebtedness of the types specified in clauses
(a) through (e) above of other Persons, plus (g) all Indebtedness of the types referred to in clauses (a) through (f) above of any partnership or joint venture (other than a joint venture that is itself a corporation
or limited liability company) in which such Person is a general partner or joint venturer, unless such Indebtedness is expressly made non-recourse to such Person. 
 “Funding Office” means the office specified in Schedule II as the funding office of the Administrative Agent, the LC Issuer and each Lender, or such other office as may be
specified from time to time by each of them as its funding office upon giving no less than five (5) Business Days’ prior written notice thereof to the Administrative Agent and the Borrowers. 
 “GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of
the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board, consistently applied and as in effect from time to time. If any
“Accounting Change” (as defined below) occurs that results in a change in the method of calculating financial covenants or other standards in this Agreement, the Obligors and the Administrative Agent, acting on the directions of the
Majority Lenders, shall enter into good faith negotiations to amend the applicable provisions of this Agreement so as to equitably reflect such Accounting Changes with the desired result that the criteria for evaluating a Borrower’s or any of
its Subsidiaries’ financial condition shall be the same after giving effect to such Accounting Changes, as if such Accounting Changes had not occurred. Until such time as such amendments shall have been effected, all financial covenants and
standards in this Agreement shall continue to be calculated as if such Accounting Changes had not occurred. “Accounting Changes” means any change in accounting principles required or promulgated by the Accounting Principles Board,
the American Institute of Certified Public Accountants and the Financial Accounting Standards Board (or any generally recognized successor to each such organization). 
 “Governmental Authority” means any nation, government, state, province, territory or municipality or any political subdivision, agency, authority, instrumentality, regulatory body, court,
central bank of any of the foregoing or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government. 
 “GDPA” means the Turkish General Directorate of Petroleum Affairs, an agency of the Ministry of Energy and Natural
Resources of the Government of Turkey, and any successor thereto. 
  

 11 

 “Guarantee Obligation” means, as to any Person (the “guaranteeing
person”), any obligation of (a) the guaranteeing person or (b) another Person (including any bank under any letter of credit) to induce the creation of which the guaranteeing person has issued a reimbursement, counterindemnity or
similar obligation, in either case guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligations (the “primary obligations”) of any other third Person (the “primary obligor”) in any
manner, whether directly or indirectly, or otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the
lesser of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the
terms of the instrument embodying such Guarantee Obligation, unless such primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation
shall be such guaranteeing person’s maximum reasonably anticipated liability in respect thereof as determined by the Collateral Agent in good faith. 
 “Guarantors” means (a) Incremental Petroleum (Selmo), (b) TransAtlantic Worldwide, Ltd., (c) TransAtlantic Petroleum (USA) Corp., (d) the Parent and (e) the
Subsidiary Guarantors. 
 “Hazardous Material” means, without limitation, any petroleum product, raw material,
physical agent, airborne contaminant, biological agent, assayable biological contaminant, chemical product or intermediate, chemical by-product, flammable material, explosive, radioactive substances, asbestos in any form that is or could become
friable, urea formaldehyde foam insulation, polychlorinated biphenyls, chemicals defined under Environmental Law as hazardous substances, hazardous wastes, extremely hazardous wastes, solid wastes, toxic substances, pollutants, contaminants or words
of similar meaning that are now or hereafter defined, prohibited, limited or regulated in any way under any Environmental Law. 
 “Hedge Agreement” means any transaction or agreement to provide or obtain any option, future, swap, forward, cap, floor, collar or analogous arrangement (or any combination of the foregoing) in respect of interests rates,
exchange rates, commodity prices, bond indices, bond prices, equity indices, equity prices, or any other subject matter, either generally or subject to specific contingencies. 
 “Hedge Agreement Value” means, for each Hedge Agreement on any date of determination, an amount equal to: (a) in the
case of a Hedge Agreement documented pursuant to the Master Agreement (Multicurrency-Cross Border) published by the International Swap and Derivatives Association, Inc. (the “Master Agreement”), the amount, if any, that would be
payable by any Obligor or any of its Subsidiaries to its counterparty to such Hedge Agreement, as if (i) such Hedge Agreement were being terminated early on such date of determination and (ii) such Obligor or Subsidiary were the sole
“Affected Party”; (b) in the case of a Hedge Agreement traded on an exchange, the mark-to-market value of such Hedge Agreement, which will be the unrealized loss on such Hedge Agreement to the Obligor or Subsidiary of an Obligor party
to such Hedge Agreement based on the settlement price of such Hedge Agreement on such date of determination; or (c) in all other cases, the mark-to-market value of such Hedge Agreement, which will be the unrealized loss on such Hedge Agreement
to the Obligor or Subsidiary of an Obligor party to such Hedge Agreement determined as the amount, if any, by which (i) the present value of the future cash flows to be paid by such Obligor or Subsidiary exceeds (ii) the present value of
the future cash flows to be received by such Obligor or Subsidiary pursuant to such Hedge Agreement. Capitalized terms used and not otherwise defined in this definition shall have the respective meanings specified in the above described Master
Agreement. 
  

 12 

 “Hydrocarbon Hedge Agreement” means a Hedge Agreement between any Borrower
or any of its Subsidiaries and one or more financial institutions, providing such Borrower or any of its Subsidiaries with protection against fluctuations in the price of Hydrocarbons. 
 “Hydrocarbon Interests” means, to the extent any Borrower or any of its Subsidiaries may now or hereafter have any right,
title or interest therein, fee mineral interests, term mineral interests, farm-out interests, royalties, overriding royalties, net profit interests, carried interests, working interests, production payments and similar mineral interests, interests
in Hydrocarbon storage and/or transportation facilities, and all unsevered and unextracted Hydrocarbons in, under, or attributable to such properties and interests arising from any Hydrocarbon License. 
 “Hydrocarbon Licenses” means any concession, lease, license, permit or other agreement, contract, conveyance or instrument
pursuant to which any Borrower or any of its Subsidiaries is entitled to enter upon any property to prospect, explore or develop such property for the production of Hydrocarbons or to produce Hydrocarbons from such property, and shall be deemed to
include (a) any permit granted by the GDPA, EMRA or any other Governmental Authority to conduct geological investigations concerning the presence of Hydrocarbons in any area, (b) any license granted by the GDPA, EMRA or any other
Governmental Authority to explore for Hydrocarbons in any area and (c) any lease granted by the GDPA, EMRA or any other Governmental Authority to produce Hydrocarbons from any area. 
 “Hydrocarbons” means oil, gas, coal seam gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, and
all other liquid and gaseous hydrocarbons produced or to be produced in conjunction therewith from a well bore, and all products, by-products and other substances derived therefrom or the processing thereof, and all other minerals and substances
produced in conjunction with such substances (including sulfur, geothermal steam, water, carbon dioxide, helium, and any and all minerals, ores, or substances of value and the products therefrom). 
 “Incremental Petroleum (Selmo)” means, Incremental Petroleum (Selmo) Pty. Ltd. (ACN 106 568 432), an Australian proprietary
company. 
 “Indebtedness” means, as to any Person on any date of determination, without duplication:

  

	 	(a)	all indebtedness of such Person for borrowed money and all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments;

  

	 	(b)	all obligations of such Person, contingent or otherwise, in respect of the face amount of all (i) letters of credit (whether or not drawn) or
(ii) bankers’ acceptances or similar facilities, in each case issued for the account of such Person; 

  

	 	(c)	all Capital Lease Obligations of such Person; 

  

	 	(d)	all Synthetic Obligations of such Person; 

  

	 	(e)	all obligations of such Person under Hedge Agreements, each valued at the Hedge Agreement Value thereof; 

  

 13 

	 	(f)	all obligations of such Person to pay the deferred purchase price of property or services (other than current trade payables that are incurred in the ordinary course of
such Person’s business and are not overdue for a period of more than ninety (90) days); 

  

	 	(g)	all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person;

  

	 	(h)	the liquidation value of all redeemable preferred Equity Interests or other preferred Equity Interests of such Person; 

  

	 	(i)	all obligations of such Person owing in connection with any volumetric or production prepayments; 

  

	 	(j)	any obligations of such Person which would be required to be disclosed on such Person’s balance sheet as a liability in accordance with GAAP and which would be
payable more than twelve (12) months from the date of creation thereof (other than reserves for taxes and for contingent obligations); 

  

	 	(k)	all obligations of the kind referred to in clauses (a) through (j) above secured by (or for which the holder of such obligation has an existing
right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation; and

  

	 	(l)	all Guarantee Obligations of such Person in respect of obligations of the kind referred to in clauses (a) through (k) above.

 For the avoidance of doubt, the Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is
not liable therefor. 
 “Independent Reserves Engineer” means (a) William M. Cobb & Associates,
Inc., (b) RPS Energy, (c) DeGolyer & McNaughton or (d) such other firm of independent petroleum engineers, acceptable to the Technical Agent and the Majority Lenders, with adequate expertise in the matters required in
connection with the preparation and delivery of an Independent Reserves Report. 
 “Independent Reserves
Report” means a report prepared by the Independent Reserves Engineer, in form and substance reasonably satisfactory to the Technical Agent and the Majority Lenders, with respect to the Hydrocarbon Interests in Turkey which are included in
the Borrowing Base. Without prejudice to the foregoing, the Independent Reserves Report shall (a) specify the location, quantity, and type of the Proved Reserves attributable to such Hydrocarbon Interests, (b) contain a projection of the
rate of production of such Hydrocarbon Interests, (c) contain an estimate of the net operating revenues to be derived from the production and sale of Hydrocarbons from such Proved Reserves based on product price and cost escalation assumptions
provided by the Technical Agent, (d) take into account any “over-produced” status under gas balancing arrangements, (e) be prepared utilizing the price assumptions used by the Technical Agent at such time in evaluating its oil
and gas loans generally and taking into account any Designated Hedge Agreement that is a Hydrocarbon Hedge Agreement (or any other Designated Hedge Agreement providing a Borrower or any of its Subsidiaries with protection against fluctuations in
respect of the net operating revenues referred to in

  

 14 

 
paragraph (c) of this definition) then in effect and the characteristics of the Hydrocarbons being produced from such Hydrocarbon Interests and (f) contain such other information as is
customarily obtained from and provided in such reports or is otherwise reasonably requested by the Technical Agent. 
 “Interest Coverage Ratio” means, for any Measurement Period, the ratio of (a) EBITDAX for such Measurement Period minus Non-Discretionary Capital Expenditure, to (b) Interest Expense for such Measurement
Period. 
 “Interest Expense” means, for any Measurement Period, the total interest expense of the Borrowers
and their Subsidiaries accrued for such Measurement Period (calculated without regard to any limitations on the payment thereof, and including all interest and fees incurred in connection with any Indebtedness, all capitalized interest, all
commitment fees, all fees, commissions and discounts owed in respect of letters of credit and bankers’ acceptance financing, net amounts payable under any Interest Hedge Agreement (other than caps or collars)), but excluding any interest paid
in kind or non-cash interest expense and any interest incurred on subordinated intercompany debt between or among any of the Obligors or interest on equity that has been recapitalized into subordinated debt), all as determined on a Combined basis in
accordance with GAAP. 
 “Interest Hedge Agreement” means a Hedge Agreement between any Borrower or any of its
Subsidiaries and one or more financial institutions, providing for the exchange of nominal interest obligations between the Borrower or any of its Subsidiaries and such financial institution or the cap of the interest rate on any Indebtedness of
such Borrower or any of its Subsidiaries. 
 “Interest Payment Date” means: 
  

	 	(a)	as to any Loan, the last day of its Interest Period; and 

  

	 	(b)	the date of any repayment or prepayment of any Loan. 

 “Interest Period” means, as to any Loan: 
  

	 	(a)	initially, the period commencing on the Borrowing Date of such Loan and ending on the last day of the calendar month in which such Borrowing Date occurs; and

  

	 	(b)	thereafter, each period commencing on the last day of the preceding Interest Period applicable to such Loan and ending three (3) months thereafter;

 provided that: 
  

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

  

	 	(ii)	no Interest Period shall extend beyond the Commitment Termination Date; 

  

 15 

	 	(iii)	each Loan advanced as part of the same Borrowing shall have the same Interest Period; and 

  

	 	(iv)	the Administrative Agent shall be entitled to adjust the length of an Interest Period to ensure that it ends on a day which coincides with a Repayment Date.

 “Internal Reserves Report” means a report prepared by the Borrowers, certified by a
Responsible Officer of the Borrowers and reviewed and approved by the Independent Reserves Engineer, in form and substance satisfactory to the Technical Agent and the Majority Lenders, with respect to the Hydrocarbon Interests in Turkey which are
included in the Borrowing Base. Without prejudice to the foregoing, the Internal Reserves Report shall (a) specify the location, quantity, and type of the Proved Reserves attributable to such Hydrocarbon Interests, (b) contain a projection
of the rate of production of such Hydrocarbon Interests, (c) contain an estimate of the net operating revenues to be derived from the production and sale of Hydrocarbons from such Proved Reserves based on product price and cost escalation
assumptions provided by the Technical Agent, (d) take into account any “over-produced” status under gas balancing arrangements and (e) contain such other information as is customarily obtained from and provided in such reports or
is otherwise reasonably requested by the Technical Agent. 
 “Investments” means, as to a specified Person,
(a) any advance, loan or extension of credit (by way of entry into of a Guarantee Obligation or otherwise) or capital contribution to another Person, including through the purchase of any bonds, notes, debentures or other debt securities,
(b) any acquisition or purchase of Equity Interests in another Person, (c) any acquisition, whether by purchase, merger or otherwise, of the assets of another Person, or a business line or unit or a division of another Person and
(d) any acquisition or purchase of a fee mineral interest, term mineral interest, farm-out interest, royalty interest, net profit interest, carried interest, working interest, production payment or similar mineral interest, whether pursuant to
a farm-in agreement, production sharing agreement, joint venture arrangement or otherwise. 
 “LC Application”
means any request by a Borrower for the issuance of a Letter of Credit duly completed and executed on the LC Issuer’s standard form letter of credit application submitted to the LC Issuer (with a copy to the Administrative Agent) and accepted
by the LC Issuer. 
 “LC Documents” means all Letters of Credit, LC Applications, and all other agreements,
documents, and instruments entered into in connection with or relating thereto. 
 “LC Honor Date” is defined
in Section 2.4(d). 
 “LC Issuance” means the issuance of any Letter of Credit by the LC Issuer for the
account of a Borrower in accordance with this Agreement, and shall include any extension thereof or any amendment thereto that increases the face amount or extends the expiry date of such Letter of Credit. 
 “LC Obligations” means all obligations of a Borrower owed in connection with each Letter of Credit at such time, including
any Unpaid Drawings. 
 “LC Outstandings” means, on any date of determination, the sum of (a) the
aggregate undrawn maximum face amount of all Letters of Credit at such time, plus (b) the aggregate amount of all Unpaid Drawings at such time. 
  

 16 

 “LC Participant” means each Lender that acquires an LC Participation
pursuant to the terms of this Agreement. 
 “LC Participation” means an undivided interest and participation in
a Letter of Credit purchased by an LC Participant from the LC Issuer pursuant to the terms of this Agreement. 
 “Letter
of Credit” means any standby letter of credit or documentary letter of credit issued by the LC Issuer for the account of a Borrower pursuant to Section 2.4 substantially in the form of Exhibit C or in such other form as the LC
Issuer may from time to time approve in writing. 
 “Leverage Ratio” means, for any Measurement Period, the
ratio of (a) the aggregate Funded Debt of the Borrowers and their Subsidiaries (whether incurred pursuant to this Agreement or otherwise) as at the end of such Measurement Period, to (b) that portion of EBITDAX attributable to the
Borrowers and their Subsidiaries only for such Measurement Period. 
 “LIBOR” means with respect to each day
during each Interest Period, the rate per annum determined by the Administrative Agent as the rate for deposits in Dollars for a period equal to such Interest Period commencing on the first day of such Interest Period (a) appearing on Reuters
LIBOR 01 page as of 11:00 a.m. (London, England time) two (2) Business Days prior to the beginning of such Interest Period or (b) if such rate does not appear on Reuters LIBOR 01 page, the rate per annum (rounded upwards to the nearest
1/16 of 1%) determined by reference to (x) such other comparable publicly available service for displaying an average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest
Period) with a term equal to such period as may be selected by the Administrative Agent and determined as of 11:00 a.m. (London, England time) two (2) Business Days prior to the beginning of such Interest Period or (y) in the absence of
such availability, by reference to the rate at which the Administrative Agent is offered deposits in Dollars at or about 11:00 a.m. (London, England time), two (2) Business Days prior to the beginning of such Interest Period in the interbank
eurodollar market where its eurodollar operations are then being conducted for delivery on the first day of such Interest Period for the number of days comprised therein. 
 “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien or right of subrogation or analogous right (statutory or other), charge, collateral or
non-accessory security or other security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement and any capital
lease having substantially the same economic effect as any of the foregoing). 
 “Liquid Investments” means:

  

	 	(a)	marketable direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the Federal Government of the United States
and backed by the full faith and credit of the United States maturing within one hundred and eighty (180) days from the date of any acquisition thereof; 

  

	 	(b)	 negotiable certificates of deposit, time deposits, or other similar banking arrangements maturing within one hundred and eighty (180) days from
the date of acquisition thereof (“bank debt securities”), issued by (i) any Lender (or any Affiliate of any Lender), (ii) any other bank or trust company so long as such certificate of deposit is pledged to secure a
Borrower’s

  

 17 

	 	 
or any of its Subsidiaries’ ordinary course of business bonding requirements or (iii) any other bank or trust company which has combined capital and surplus and undivided profit of not
less than $500,000,000, if at the time of deposit or purchase, such bank debt securities are rated not less than “AA” (or the then equivalent) by the rating service of Standard & Poor’s Ratings Group or not less than
“Aa” (or the then equivalent) by the rating service of Moody’s Investors Service, Inc.; 

  

	 	(c)	commercial paper issued by (i) any Lender (or any Affiliate of any Lender) or (ii) any other Person if at the time of purchase such commercial paper is rated
not less than “A-1” (or the then equivalent) by the rating service of Standard & Poor’s Ratings Group or not less than “P-1” (or the then equivalent) by the rating service of Moody’s Investors Service, Inc.;

  

	 	(d)	deposits in money market funds investing exclusively in investments described in clauses (a), (b) and (c) above;

  

	 	(e)	repurchase agreements having a term of not more than thirty (30) days relating to investments described in clauses (a), (b) and
(c) above with a market value at least equal to the consideration paid in connection therewith, with any Person who regularly engages in the business of entering into repurchase agreements and has a combined capital and surplus and
undivided profit of not less than $500,000,000, if at the time of entering into such agreement the debt securities of such Person are rated not less than “AAA” (or the then equivalent) by the rating service of Standard &
Poor’s Ratings Group or not less than “Aaa” (or the equivalent) by the rating service of Moody’s Investors Service, Inc.; and 

  

	 	(f)	such other instruments as the Administrative Agent may from time to time approve in writing. 

 “Loan” means each loan advanced to a Borrower pursuant to Section 2.3 as part of a Borrowing, or the principal
amount outstanding for the time being of that loan. 
 “Loan Documents” means this Agreement, the LC Documents,
the Security Documents, the Notes, the Fee Letter, each Designated Hedge Agreement, each Notice of Borrowing, each Compliance Certificate and each other agreement, certificate, document or instrument executed and delivered in connection with this
Agreement or any other Loan Document, whether or not specifically mentioned herein or therein. 
 “Local Blocked
Account” means the commercial deposit account (A/C No. TR 31-0006-4000-0014-2400-3708-10) established with Turkiye Is Bankasi A.S. for the purpose of receiving Turkish Lira-denominated payments owing to Talon under any Eligible Contract.

 “Local Collection Account” means the collective reference to (i) the commercial deposit account (A/C
No. 6299149) and (ii) the commercial deposit account (A/C No. 6297527) established with the Local Collection Account Bank for the purpose of receiving Turkish Lira-denominated payments due to each of PEMI and DMLP, respectively, and
any of their respective Subsidiaries under each Eligible Contract. 
 “Local Collection Account Bank” means
Turkiye Garanti Bankasi A.S. or any other depository bank in Turkey acceptable to the Collateral Agent. 
 “Majority
Lenders” means, at any time, (a) Lenders holding in aggregate at least 51% of the Commitments at such time or (b) if the Commitments have been terminated, Lenders holding in aggregate at least 51% of the outstanding principal
amount of the Loans

  

 18 

 
plus the LC Outstandings (if any) at such time; provided that, for purposes of determining the “Majority Lenders” while any Delinquent Period is in effect, the Commitments
of, and the aggregate outstanding principal amount of the Loans plus the LC Outstandings (if any) held or deemed held by, the relevant Delinquent Lender shall be excluded. 
 “Material Adverse Effect” means a material adverse effect on, or a material adverse change in, (a) the business,
assets (including Hydrocarbon Interests in Turkey), condition (financial or otherwise), or results of operations of the Parent, the Borrowers and their Subsidiaries, taken as a whole, (b) any Obligor’s ability to perform its material
obligations under any Loan Document or (c) the validity and enforceability of any Loan Document or the rights and remedies of any Secured Party hereunder or under any other Loan Document. 
 “Material Contract” means any contract (other than the Hydrocarbon Licenses) to which any Borrower or any of its
Subsidiaries is a party which (a) involves an aggregate consideration payable to or by either Borrower or any Subsidiary of $1,000,000 (or, if denominated in a non-Dollar currency, the Dollar Equivalent thereof) or (b) if breached or
terminated, could reasonably be expected to have a Material Adverse Effect. 
 “Maturity Date” means the
earlier of (a) the Scheduled Maturity Date and (b) the Reserve Tail Date. 
 “Measurement
Period” means, on any date of determination, the most recently completed four (4) Fiscal Quarters of the Borrowers; provided that, for the purposes of determining the amount of any item included in the calculation of a financial
ratio or financial covenant set forth in Section 8.17, (a) for the first Fiscal Quarter ending after the Closing Date, such amount for the Measurement Period then ended shall equal such item for such Fiscal Quarter multiplied by four
(4), (b) for the second Fiscal Quarter ending after the Closing Date, such amount for the Measurement Period then ended shall equal such item for the two Fiscal Quarters then ended multiplied by two (2) and (c) for the third Fiscal
Quarter ending after the Closing Date, such amount for the Measurement Period then ended shall equal such item for the three Fiscal Quarters then ended multiplied by one and one-third (1 1/3). 
 “Net Cash Proceeds” means, in connection with any sale, lease, sale and leaseback, assignment, conveyance, transfer or
other Disposal of any property or any sale or issuance of Equity Interests by any Borrower or its Subsidiaries, the proceeds received therefrom in the form of cash or cash equivalents, net of attorneys’ fees reasonably incurred, transaction
fees, banking fees and other customary out-of-pocket fees and expenses actually incurred by such Borrower or its Subsidiaries in connection therewith. 
 “Non-Discretionary Capital Expenditure” means, at any time, Capital Expenditure incurred by the Borrowers and their Subsidiaries to replace or repair existing fixed assets so as to
maintain then current levels of profitability of their respective businesses in accordance with prudent market practice by Persons engaged in a similar business, owning similar assets and operating in similar localities to the Borrowers and their
Subsidiaries, but excluding Capital Expenditure incurred to improve existing assets or increase production from existing assets (whether through the drilling of additional wells, the drilling of horizontal wells, the drilling of sidetrack wells in
existing fields, or otherwise). 
 “Note” means a promissory note of the Borrowers payable to each Lender,
substantially in the form of Exhibit A (as such promissory note may be amended, endorsed or otherwise modified from time to time), evidencing the aggregate Indebtedness of the Borrowers to such Lender resulting from outstanding Loans,
and all other promissory notes accepted from time to time by such Lender in substitution therefor or renewal thereof. 
  

 19 

 “Notice of Borrowing” means a request for Loans substantially in the form
of Exhibit B signed by a Responsible Officer of the Borrowers. 
 “Obligations” means, (a) the
unpaid principal of and interest on the Loans (including interest accruing after the maturity of the Loans, after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or similar proceeding relating to any
Borrower), (b) the LC Obligations, (c) the Designated Hedge Obligations and (d) all other obligations and liabilities of any Obligor, whether direct or indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, that may arise under, out of, or in connection with any Loan Document, whether on account of principal, interest, fees, reimbursements, indemnities, costs, expenses or otherwise. 
 “Obligors” means, collectively, the Borrowers and the Guarantors. 
 “Offshore Collection Account” means the collective reference to (i) commercial deposit account (A/C
No. 100131528), (ii) commercial deposit account (A/C No. 100131498), (iii) commercial deposit account (A/C No. 100131501) and (iv) commercial deposit account (A/C No. 100131517) established by each of PEMI, DMLP,
Talon and TAT, respectively, with the Offshore Collection Account Bank for the purpose of receiving Dollar denominated payments due to each respective Borrower and its Subsidiaries under any Eligible Contract. 
 “Offshore Collection Account Bank” means Standard Bank Plc or any other depository bank acceptable to the Collateral
Agent in its discretion. 
 “Operating Budget” is defined in Section 7.2(d). 
 “Operational Lock-Up Event” means (a) the occurrence and continuation of an Event of Default or (b) the
occurrence and continuation of a Borrowing Base Deficiency. 
 “Organic Document” means, relative to any
Obligor, as applicable, its certificate of incorporation, by-laws, certificate of partnership, partnership agreement, certificate of formation, deed of foundation, deed of association, articles of association, articles of incorporation, articles of
amalgamation, limited liability company agreement or operating agreement and all shareholder agreements, voting trusts and similar arrangements applicable to shares, partnership interests, limited liability company interests or other Equity
Interests in any such Obligor. 
 “Original Reserves” means, in relation to each Hydrocarbon Interest in
Turkey, the quantities of Hydrocarbons forecast in the Independent Reserves Report delivered under Section 5.1(g) and included in the determination of Present Value to be produced from such Hydrocarbon Interest from the Closing Date up
to (and including) the Abandonment Date shown in such Independent Reserves Report for such Hydrocarbon Interest. 
 “Parent” means Transatlantic Petroleum Ltd. (Registered No. 43496), a company organized under the laws of Bermuda. 
 “Participant” is defined in Section 12.7(b). 
 “Permitted Investors” means N. Malone Mitchell, 3rd and any other Person that, directly or indirectly, is Controlled by him and primarily engages in making equity or debt investments in one or more entities. 
  

 20 

 “Person” means an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature. 
 “Present Value” means, on any date of determination, the present value (using the average of the discount rates then customarily utilized by the Technical Agent for reserve valuation
purposes, which, as at the Closing Date, is a 10% discount rate) of the projected future net revenues attributable to production of oil or gas (measured by volume unit or BOE (barrels of oil) equivalent, and not sales price) from Hydrocarbon
Interests in Turkey that constitute Proved Developed Producing Reserves or Proved Undeveloped Reserves (as selected by the Technical Agent in its discretion) as set forth in the most recent Independent Reserves Report delivered pursuant to
Section 3.2 as at such date, calculated by the Technical Agent pursuant to ARTICLE 3 based on the price assumptions used by the Technical Agent as at such date in evaluating its oil and gas loans generally and adjusted to give effect
to applicable commodity prices (or caps or floors) under Hydrocarbon Hedge Agreements permitted hereunder and covering such production. 
 “Pro Rata Share” means, as to each Lender at any time, the ratio (expressed as a percentage) of (a) such Lender’s Commitment to the aggregate Commitments of all Lenders at such
time or (b) if the Commitments have been terminated, the outstanding principal amount of the Loans plus the LC Outstandings (if any) owed to such Lender to the aggregate outstanding principal amount of the Loans plus the LC Outstandings (if
any) owed to all Lenders at such time. 
 “Proved Developed Producing Reserves” means, on any date of
determination, Proved Developed Reserves in respect of which Hydrocarbons are being extracted through existing wells with existing equipment and operating methods as at such date pursuant to the terms of a Hydrocarbon License and in accordance with
Applicable Law, where such Turkey Hydrocarbon License is expressed to be effective for a period of no less than thirty-six (36) months from such date of determination. 
 “Proved Developed Reserves” means, on any date of determination, Proved Reserves which are expected to be recovered through
existing wells with existing equipment and operating methods. Additional Hydrocarbons expected to be recovered through the application of fluid injection or other improved recovery techniques for supplementing the natural forces and mechanisms of
primary recovery shall be included as Proved Developed Reserves only after testing by a pilot project or after operation of an installed program has confirmed through production response, in each case to the Technical Agent’s reasonable
satisfaction, that increased recovery will be achieved. 
 “Proved Reserves” means, on any date of
determination, the quantities of Hydrocarbons demonstrated by geological and engineering data with a high degree of certainty to be recoverable in future years under existing economic and operating conditions and from known reservoirs attributable
to Hydrocarbon Interests in Turkey, as determined in accordance with the standards set forth in National Instrument 51-101 “Standards of Disclosure for Oil and Gas Activities” (NI 51-101) established by the Canadian Securities
Administrators and Rule 4-10 of Regulation S-X (17 CFR 210) promulgated by the United States Securities and Exchange Commission. 
 “Proved Undeveloped Reserves” means, on any date of determination, Proved Reserves which are expected to be recovered from new wells on undrilled acreage for which the existence and recoverability of such reserves can be
estimated with reasonable certainty, or from existing wells where a relatively major expenditure is required for recompletion. 
  

 21 

 “Register” is defined in Section 12.7(d). 
 “Release” means, without limitation, any release, spilling, emission, leaking, pumping, pouring, injecting, depositing,
disposal, discharge, dispersal, leaching, dumping or migration into the indoor or outdoor Environment, including the movement of Hazardous Materials through ambient air, soil, surface water, groundwater, wetlands, land or subsurface strata.

 “Remaining Reserves” means, in relation to each Hydrocarbon Interest in Turkey and any date, the quantities
of Hydrocarbons forecast in the then current Reserve Report to be produced by that Hydrocarbon Interest in the period from that date up to (and including) the Abandonment Date shown in such Reserve Report for such Hydrocarbon Interest. 

“Repayment Date” means each of the following dates: 
  

	 	(a)	June 21, 2011; 

  

	 	(b)	September 21, 2011; 

  

	 	(c)	December 21, 2011; 

  

	 	(d)	March 21, 2012; 

  

	 	(e)	June 21, 2012; 

  

	 	(f)	September 21, 2012; and 

  

	 	(g)	the Maturity Date, 

 provided that if any Repayment Date would otherwise fall on a day that is not a Business Day, such Repayment Date shall instead occur on the next succeeding Business Day. 
 “Reserve Tail Date” means the last day of the period for which the Borrowing Base was most recently redetermined in
accordance with Section 3.2 immediately preceding the first date (reflected in the then current Reserve Report) on which the aggregate Remaining Reserves for all Hydrocarbon Interests in Turkey is forecast to be 25% (or less) of the
aggregate Original Reserves for such Hydrocarbon Interests. 
 “Reserves Report” means either an Independent
Reserves Report or an Internal Reserves Report. 
 “Responsible Officer” means, as to any Person that is a
corporate entity, such Person’s chief executive officer, president, chief financial officer and any vice-president or such other equivalent office holder as the Administrative Agent may reasonably approve; provided that, with respect to
financial matters, the chief financial officer of such Person shall be the Responsible Officer. 
 “Restricted
Payment” means, with respect to any Person, (a) any direct or indirect dividend or distribution (whether in cash, securities or other property), or any direct or indirect payment of any kind (whether in cash, securities or other
property) in consideration for, or otherwise in connection with, any purchase, redemption, defeasance, retirement or other acquisition or ownership of any Equity Interest of such Person, or any options, warrants or rights to acquire or purchase any
Equity Interest of such Person and (b) any principal or interest payments on, or redemptions of, subordinated debt of such Person; provided that the term “Restricted Payment” shall not include any dividend or distribution
payable solely in Equity Interests of such Person or warrants, options or other rights to purchase such Equity Interests. 
  

 22 

 “Scheduled Maturity Date” means December 21, 2012. 
 “Secured Parties” shall mean the Lenders, the LC Issuer, each Designated Hedge Counterparty, each Agent and each of their
respective successors and permitted assigns from time to time. 
 “Security Documents” means the Australian
Security Documents, the Bahamas Security Documents, the English Security Documents, the Turkish Security Documents and all other security documents granting a Security Interest on any property of any Person to secure the obligations and liabilities
of any Obligor under any Loan Document. 
 “Security Interest” in any property means a Lien which
(a) exists in favor of the Collateral Agent for the ratable benefit of the Secured Parties, (b) is superior to all Liens or rights of any other Person in the property encumbered thereby (subject only to Liens permitted under
Section 8.2), (c) secures the payment in full of the Obligations and (d) is legal, valid, enforceable and perfected. 
 “Solvent” means, as to any Person on any date of determination, that on such date (a) the fair value of the total assets of such Person (both at fair valuation and at present fair
saleable value) is greater than the total liabilities of such Person (including contingent liabilities), (b) the present fair saleable value of the total assets of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and matured, (c) such Person is able to realize upon its assets and pay its debts and other liabilities, contingent obligations, and other commitments as they mature in the
normal course of business, (d) such Person does not intend to, and does not believe that it will, incur debts and other liabilities beyond such Person’s ability to pay such debts and other liabilities as they mature and (e) such
Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s assets would constitute unreasonably small capital after giving due consideration to current and anticipated
future capital requirements and current and anticipated future business conduct and prevailing practice in the industry in which such Person is engaged. In computing the amount of contingent liabilities at any time, such liabilities shall be
computed in the amount which, in light of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
 “Spot Rate” means, on any date of determination, the rate quoted by Standard Bank Plc or any Lender to an Agent as its spot
rate for the purchase of any non-Dollar currency with Dollars through its principal foreign exchange trading office at approximately 11.00 a.m. (London, England time) on such date of determination (or at such other time on such date of determination
if such Agent reasonably determines that the volume of trades at approximately 11.00 a.m. (London, England time) in respect of such currency is insufficient to permit the establishment of an appropriate spot rate for the purchase of such non-Dollar
currency with Dollars). 
 “Subsidiary” of a Person means any corporate entity of which more than 50% of the
outstanding Equity Interests having ordinary voting power to elect or appoint a majority of the board of directors or similar governing body of such corporate entity is at the time directly or indirectly owned or Controlled by such Person, by such
Person and one or more other Subsidiaries of such Person, or by one or more other Subsidiaries of such Person. 
  

 23 

 “Subsidiary Guarantor” means each Subsidiary of a Borrower that becomes a
Guarantor under this Agreement in accordance with Section 7.12(b)(iii). 
 “Supermajority
Lenders” means, at any time, (a) Lenders holding in aggregate at least 66 2/3% of the Commitments at such time or (b) if the Commitments have been terminated, Lenders holding in aggregate at least 66 2/3% of the outstanding principal amount of the Loans plus the LC
Outstandings (if any) at such time; provided that, for purposes of determining the “Supermajority Lenders” while any Delinquent Period is in effect, the Commitments of, and the aggregate outstanding principal amount of the
Loans plus the LC Outstandings (if any) held or deemed held by, the relevant Delinquent Lender shall be excluded. 
 “Synthetic Obligations” means as to any Person, the obligations of such Person to pay rent or other amounts under any lease (including leases that may be terminated by the lessee at any time) of any property (whether real,
personal or mixed) (a) that is not a capital lease in accordance with GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so leased for federal income tax purposes, other than any such lease under which
such Person is the lessor. 
 “TransAtlantic Petroleum (USA) Corp.” means TransAtlantic Petroleum (USA) Corp.,
a Colorado corporation, the sole limited partner of TAT. 
 “TransAtlantic Worldwide, Ltd.” means TransAtlantic
Worldwide, Ltd., a Bahamas corporation, the sole general partner of TAT and the sole stockholder of Talon. 
 “Turkish
Lira” means the lawful currency of Turkey. 
 “Turkish Security Documents” means the following
documents, each governed by the laws of Turkey, and in form and substance satisfactory to the Collateral Agent (as the same may be amended, amended and restated, supplemented or otherwise modified from time to time): 
  

	 	(a)	a receivables pledge agreement granting a Security Interest over all of the present and future receivables payable to the relevant Borrower and its Subsidiaries under
each Eligible Contract, and the receivables payable under each property insurance policy required to be maintained by such Borrower and its Subsidiaries pursuant to Section 7.8; 

  

	 	(b)	each receivables payment instruction letter, instructing the Eligible Offtaker named therein to make payments due to the relevant Borrower and its Subsidiaries under
the applicable Eligible Contract to the applicable Local Collection Account; 

  

	 	(c)	a pledge agreement in respect of all of the rights of the relevant Borrower and its Subsidiaries under the Hydrocarbon Licenses and the Hydrocarbon Interests pertaining
thereto (the “Turkey License Pledge Agreement”); 

  

	 	(d)	an account pledge agreement granting a Security Interest over all of the present and future receivables payable to the relevant Borrower and its Subsidiaries under each
Eligible Contract, including provisions pursuant to which the Local Collection Account Bank agrees to hold all monies deposited in the Local Collection Account in accordance with the instructions of the Collateral Agent (for the ratable benefit of
the Secured Parties) following the Local Collection Account Bank’s receipt of a notice to such effect from the Collateral Agent delivered in accordance with the terms thereof; 

  

 24 

	 	(e)	a commercial enterprise pledge agreement granting a Security Interest over substantially all of the present and future movable assets of the Borrowers; and

  

	 	(f)	any other document reasonably required by the Collateral Agent to be executed in connection with the creation, attachment and/or perfection of the security interests to
be granted pursuant to the foregoing. 

 “Unpaid Drawing” means, with respect to any Letter of
Credit, the aggregate amount of all draws made on such Letter of Credit that have not been reimbursed by the Borrowers or converted to a Loan pursuant to Section 2.4(d), and, in each case, all interest that accrues on each such draw pursuant
to this Agreement. 
 “Viking” means Viking International Limited, a company duly incorporated and validly
existing under the laws of Bermuda. 
 “Viking Equipment” means certain drilling rigs and related equipment the
ownership of which is transferred from Viking to a Borrower or a Subsidiary of a Borrower. 
 1.2 Other Definitional
Provisions. 
 (a) Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings
when used in the other Loan Documents or any certificate or other document made or delivered pursuant hereto or thereto. 
 (b)
As used herein and in the other Loan Documents and any certificate or other document made or delivered pursuant hereto or thereto: 
  

	 	(i)	accounting terms relating to the Borrowers and their Subsidiaries not defined in Section 1.1 and accounting terms partly defined in Section 1.1,
to the extent not defined, shall have the respective meanings given to them under GAAP; 

  

	 	(ii)	the words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”; 

  

	 	(iii)	the word “incur” shall be construed to mean incur, create, issue, assume, become liable in respect of or suffer to exist (and the words
“incurred” and “incurrence” shall have correlative meanings), and 

  

	 	(iv)	the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties (whether real or personal), including cash, Equity Interests, securities, revenues, accounts, leasehold interests and contract rights. 

  

 25 

 (c) The words “hereof”, “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Article, Schedule, Exhibit and analogous references are to this Agreement unless otherwise
specified. 
 (d) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of
such terms. 
 1.3 Cross References. Unless otherwise specified, references in a Loan Document to any Article, Section,
Schedule, Exhibit or Annex are references to such Article or Section of, or Schedule, Exhibit or Annex to, such Loan Document, and references in any Article, Section or definition to any clause are references to such clause of such Article, Section
or definition. 
 ARTICLE 2 
 THE COMMITMENTS AND CREDIT EXTENSIONS 
 2.1 Establishment of the Credit
Facility. On the Closing Date, and subject to and upon the terms and conditions of this Agreement and the other Loan Documents, the Lenders and the LC Issuer agree to establish the Credit Facility for the benefit of the Borrowers. 
 2.2 Loans. During the Commitment Period, each Lender agrees to advance Loans to the Borrowers from time to time pursuant to such
Lender’s Commitment subject to the terms and conditions of this Agreement; provided that no Loan shall be made or continued if, after giving effect thereto, (a) the Aggregate Facility Exposure would exceed the lesser of (i) the
aggregate Commitments of all Lenders at such time and (ii) the Borrowing Base or (b) the Facility Exposure of any Lender would exceed the aggregate amount of such Lender’s Commitment. Each Loan shall be denominated in Dollars, and
each Lender will advance its share of the Loan requested in each Borrowing ratably in accordance with such Lender’s Pro Rata Share of such Borrowing. Within the limits of each Lender’s Commitment, the Borrower may repay, prepay and
re-borrow Loans during the Commitment Period in accordance with the provisions hereof. 
 2.3 Borrowings and Continuations of
Loans. 
  

	 	(a)	Borrowings. 

 (i) Notice of Borrowing. Each Borrowing shall be made pursuant to a duly completed and executed irrevocable Notice of Borrowing delivered to the Administrative Agent not later than noon (London, England time) at least three
(3) Business Days prior to the requested Borrowing Date (or, in respect of the initial Borrowing to be made on the Closing Date, such shorter period as the Administrative Agent may in its sole discretion agree to). Each Borrowing shall be in a
minimum amount of $1,000,000 or a whole multiple of $500,000 in excess thereof. Promptly after receipt of a Notice of Borrowing, the Administrative Agent shall notify each Lender thereof. Each Lender shall make available to the Administrative Agent
not later than 3:00 p.m. (London, England time) on the requested Borrowing Date in same day funds an amount equal to its Pro Rata Share of such Borrowing. Subject to fulfillment of the applicable conditions precedent in ARTICLE 5, the
Administrative Agent shall, following its receipt of such funds, make the same available to the Borrowers at their account with the Administrative Agent or with such other financial institution reasonably approved by the Administrative Agent.

  

 26 

 (ii) Lender Obligations Several. The failure of any Lender to advance
a Loan to be made by it as part of any Borrowing shall not relieve any other Lender of its obligation to do so. No Lender shall be responsible for the failure of any other Lender to advance a Loan on the requested Borrowing Date. 
  

	 	(b)	Certain Limitations. Notwithstanding anything in this Agreement to the contrary: 

 (i) (x) at no time shall there be more than five (5) different Interest Periods applicable to outstanding Loans and
(y) if two (2) or more Loans have an Interest Period ending on the same date and the Borrowers do not specify that such Loans will be continued as separate Loans in a notice of continuation delivered to the Administrative Agent in
accordance with Section 2.3(b)(ii), such Loans will be consolidated into a single Loan on the last day of the then current Interest Period and, if continued, treated as a single Loan in any subsequent Interest Periods; 
 (ii) the Borrowers may elect to continue any Loan having a rate of interest based on LIBOR by delivering a notice of
continuation to the Administrative Agent not later than noon (London, England time) at least three (3) Business Days prior to the end of the relevant Interest Period for such Loan. Promptly after receipt of a notice of continuation, the
Administrative Agent shall advise each Lender that it has received such a notice and notify each Lender of its determination of LIBOR and the applicable interest rate with respect to such Loan; provided that if no such notice of continuation
is delivered, the Borrowers shall be deemed to have elected to continue such Loan with an Interest Period of three (3) months, and provided further that no Loan may be continued beyond its then existing Interest Period if a Default under
Section 9.1(a) or 9.1(f) or any Event of Default has occurred and is continuing, in which case such Loan shall bear interest in accordance with Section 2.8(c); 
 (iii) if prior to the first day of any Interest Period, any Lender reasonably determines (which determination shall be
conclusive and binding on the Borrowers) that the introduction of or any change in or in the interpretation of any Applicable Law makes it unlawful, or any Governmental Authority asserts that it is unlawful, for such Lender to make or continue any
Loan having a rate of interest based on LIBOR, then the Borrowers’ right to continue any such Loan and (if the Commitment Termination Date has not then occurred) such Lender’s obligation to advance any such Loan shall be suspended and each
such outstanding Loan of that Lender having a rate of interest based on LIBOR shall be converted to and maintained as a Loan whose interest rate is based on a rate readily ascertainable by the Administrative Agent on the last day of its then
existing Interest Period as the cost of funding such Loan (and which may include (x) the rate certified by such Lender to the Administrative Agent as the rate that reflects such Lender’s cost of funding its Loan or (y) the average of
the rates determined by Standard Bank Plc and BNP Paribas to be their internal prime or similar interest rate for such day, with any change in the rate made by Standard Bank Plc or BNP Paribas taking effect on the Business Day following such change)
until such Lender notifies the Borrowers that the circumstances causing such suspension no longer exist, whereupon the provisions of this Agreement otherwise applicable to the continuation or (if the Commitment Termination Date has not then
occurred) advance of Loans having a rate of interest based on LIBOR shall again apply; 
  

 27 

 (iv) if prior to the first day of any Interest Period, the Administrative
Agent reasonably determines (which determination shall be conclusive and binding on the Borrowers) that by reason of circumstances affecting the London interbank market, adequate and reasonable means do not exist for ascertaining LIBOR for such
Interest Period, then the Borrowers’ right to continue any Loan having a rate of interest based on LIBOR and (if the Commitment Termination Date has not then occurred) each Lender’s obligation to advance any such Loan shall be suspended
and each such outstanding Loan shall be converted to and maintained as a Loan whose interest rate is based on a rate readily ascertainable by the Administrative Agent on the last day of its then existing Interest Period as the cost of funding such
Loan (and which may include (x) the rate certified by such Lender to the Administrative Agent as the rate that reflects such Lender’s cost of funding its Loan or (y) the average of the rates determined by Standard Bank Plc and BNP
Paribas to be their internal prime or similar interest rate for such day, with any change in the rate made by Standard Bank Plc or BNP Paribas taking effect on the Business Day following such change) until the Administrative Agent, acting on the
direction of the Majority Lenders, notifies the Borrowers that the circumstances causing such suspension no longer exist, whereupon the provisions of this Agreement otherwise applicable to the continuation or (if the Commitment Termination Date has
not then occurred) advance of Loans having a rate of interest based on LIBOR shall again apply; and 
 (v) if
prior to the first day of any Interest Period, the Majority Lenders notify the Administrative Agent that in their reasonable determination (which determination shall be conclusive and binding on the Borrowers), LIBOR does not adequately and fairly
reflect the cost to the Majority Lenders of advancing or maintaining any Loan having a rate of interest based on LIBOR for such Interest Period, then the Borrowers’ right to continue any such Loan and (if the Commitment Termination Date has not
then occurred) each Lender’s obligation to advance any such Loan shall be suspended and each such outstanding Loan shall be converted to and maintained as a Loan whose interest rate is based on a rate readily ascertainable by the Administrative
Agent on the last day of its then existing Interest Period as the cost of funding such Loan (and which may include (x) the rate certified by such Lender to the Administrative Agent as the rate that reflects such Lender’s cost of funding
its Loan or (y) the average of the rates determined by Standard Bank Plc and BNP Paribas to be their internal prime or similar interest rate for such day, with any change in the rate made by Standard Bank Plc or BNP Paribas taking effect on the
Business Day following such change) until the Administrative Agent, acting on the direction of the Majority Lenders, notifies the Borrowers that the circumstances causing such suspension no longer exist, whereupon the provisions of this Agreement
otherwise applicable to the continuation or (if the Commitment Termination Date has not then occurred) advance of Loans having a rate of interest based on LIBOR shall again apply. 
 2.4 Letters of Credit. 
 (a) LC Issuances. Subject to the terms and conditions of this Agreement, the LC Issuer agrees to issue from time to time on any Business Day from the Closing Date to (but excluding) the Commitment
Termination Date, Letters of Credit for the account of a

  

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Borrower, and to amend or extend Letters of Credit previously issued by it in accordance with this Agreement and to honor drawings thereunder, and the Lenders severally agree to participate in
Letters of Credit issued for the account of such Borrower and any drawings thereunder; provided that no LC Issuance will be made: 
 (i) if such LC Issuance would cause the LC Outstandings (if any) to exceed the lesser of (A) $10,000,000 and (B) the aggregate unused and uncancelled portion of the Commitments; 
 (ii) if such LC Issuance would cause the Facility Exposure of any Lender to exceed such Lender’s Commitment; 

(iii) if such Letter of Credit has an expiration date later than one (1) year after the date of issuance thereof;
provided that, if any Letter of Credit has an expiration date that occurs after the Commitment Termination Date, such Borrower shall Cash Collateralize its LC Obligations in respect of such Letter of Credit promptly and in any event no later
than sixty (60) days prior to the Commitment Termination Date, and provided further that such Letter of Credit may contain language providing for its automatic renewal for an additional term of one (1) year upon its scheduled
expiration date in the absence of prior written notice from the LC Issuer to the relevant Borrower stating that such Letter of Credit will not be renewed upon its then scheduled expiration date; 
 (iv) unless such Letter of Credit and the other LC Documents in respect thereof are in form and substance acceptable to the
LC Issuer in its sole discretion; 
 (v) unless such Letter of Credit is a standby letter of credit not
supporting the repayment of indebtedness for borrowed money of any Person; 
 (vi) unless such Letter of Credit
is denominated and payable in Dollars; 
 (vii) in the case of an LC Issuance involving an amendment to an
existing Letter of Credit, if the LC Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof, or if the beneficiary of such Letter of Credit does not accept the proposed amendment to
such Letter of Credit; 
 (viii) unless such Borrower has delivered to the LC Issuer and the Administrative Agent
a duly completed and executed irrevocable LC Application; 
 (ix) unless such Letter of Credit is governed by
(1) if a standby letter of credit, the International Standby Practices (1998) published by the Institute of International Banking Law & Practice (or any successor to such publication) or (2) if a documentary letter of credit,
the Uniform Customs and Practice for Documentary Credits (2007 Revision) published by the International Chamber of Commerce (or any successor to such publication); or 
 (x) if any LC Participant is a Delinquent Lender or is then in default of its obligation to fund its LC Participation under
Section 2.4(d) in respect of any Letter of Credit, unless (i) the LC Issuer is reasonably satisfied that one or more Lenders will assume the entire LC Participation of such Delinquent Lender or (ii) such Delinquent Lender has
provided cash 
 collateral or other credit support or made other arrangements to the LC Issuer’s reasonable satisfaction to
ensure its ability to fund its LC Participation in respect of the relevant Letter of Credit. 
  

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 Within the foregoing limits, and subject to the terms and conditions hereof,
such Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly such Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon
and reimbursed. For the avoidance of doubt, if the terms of any LC Application conflict with this Agreement, this Agreement shall prevail. 
 (b) LC Issuances. Each LC Issuance shall be effected pursuant to a duly completed and executed irrevocable LC Application, given by a Borrower not later than noon (London, England time), four
(4) Business Days before the date of the proposed LC Issuance. In the case of a request for an initial issuance of a Letter of Credit, such LC Application shall specify in form and substance satisfactory to the LC Issuer: (i) the proposed
issuance date of the requested Letter of Credit (which shall be a Business Day), (ii) the amount thereof, (iii) the expiry date thereof, (iv) the name and address of the beneficiary thereof, (v) the documents to be presented by
such beneficiary in case of any drawing thereunder, (vi) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder and (vii) such other matters as the LC Issuer may require. In the case of a
request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and substance satisfactory to the LC Issuer, (1) the Letter of Credit to be amended, (2) the proposed date of amendment
thereof (which shall be Business Day), (3) the nature of the proposed amendment and (4) such other matters as the LC Issuer may require. Additionally, such Borrower shall furnish to the LC Issuer and the Administrative Agent such other
documents and information pertaining to such required amendment, including any LC Documents, as the LC Issuer or the Administrative Agent may require. Promptly after receipt of such LC Application, the LC Issuer shall notify each other Lender and
the Administrative Agent thereof and, subject to fulfillment of the applicable conditions in ARTICLE 5, shall make such LC Issuance on the date of the proposed LC Issuance. 
 (c) LC Participations. Upon the date of each LC Issuance, the LC Issuer shall be deemed to have sold to each other Lender having a
Commitment, and each such Lender (an “LC Participant”) having a Commitment shall be deemed irrevocably and unconditionally to have purchased and received from the LC Issuer, without recourse or warranty, an undivided interest and
participation in such Letter of Credit equal to such Lender’s Pro Rata Share at such date of the face amount of such Letter of Credit (an “LC Participation”). The LC Issuer shall promptly notify the Administrative Agent and each LC
Participant of each LC Issuance and the amount of its LC Participation and each Lender’s Commitment shall be deemed to have been utilized and reduced by the amount of its LC Participation; provided that if any Letter of Credit (i) has been
Cash Collateralized or (ii) is backed by a standby letter of credit from a financial institution acceptable to the LC Issuer in its sole discretion, such standby letter of credit to be on terms satisfactory to the Administrative Agent and the
Lenders, then each Lender’s Commitment shall be deemed not to have been utilized to the extent of such Lender’s Pro Rata Share of the amount of such Cash Collateralization or the undrawn amount of the standby letter of credit from time to
time (as the case may be). 
 (d) Drawings and Reimbursements. Upon receipt from the beneficiary of any Letter of Credit
of any draw request under such Letter of Credit, the LC Issuer shall notify the Borrowers and the Administrative Agent thereof. Not later than 11:00 a.m.

  

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(London, England time) on the date of any payment by the LC Issuer under a Letter of Credit (each such date, an “LC Honor Date”), the Borrowers shall reimburse the LC Issuer in an
amount equal to that paid by the LC Issuer to the beneficiary pursuant to such draw request. If the LC Issuer makes a payment pursuant to such draw request and the Borrowers fail to reimburse the LC Issuer in respect thereof by 11:00 a.m. (London,
England time) on the LC Honor Date, the LC Issuer shall give the Administrative Agent notice of the Borrowers’ failure and the Administrative Agent shall promptly notify each LC Participant of the amount necessary to reimburse the LC Issuer in
full for such payment and each LC Participant’s Pro Rata Share thereof. In such event, the Borrowers shall be deemed to have requested a Borrowing of Loans to be disbursed three (3) Business Days after the LC Honor Date in an amount equal
to the unreimbursed amount, without regard to the minimum and multiples specified in Section 2.3(a)(i) for the principal amount of Loans, and upon such notice from the Administrative Agent to each LC Participant, each LC Participant shall
make a Loan to the Borrowers not later than 3:00 p.m. (London, England time) on the date that is three (3) Business Days after the LC Honor Date, which Loan shall be in same day funds in an amount equal to such LC Participant’s Pro
Rata Share of such Borrowing and otherwise in accordance with the provisions of Section 2.3(a). The proceeds of each such Loan shall be paid from each LC Participant to the Administrative Agent who, in turn, will disburse such proceeds
to the LC Issuer to reimburse the LC Issuer for such LC Participant’s Pro Rata Share of the amount necessary to reimburse the LC Issuer in full. If such reimbursement is not made by any LC Participant to the LC Issuer by 3:00 p.m. (London,
England time) on the third Business Day after the LC Honor Date, such LC Participant shall pay interest on its Pro Rata Share thereof to the LC Issuer at a rate per annum equal to the interest that would have then accrued if the payment so
made by the LC Issuer pursuant to such draw request was instead a Loan from the LC Issuer to such LC Participant pursuant to the terms hereof. The Borrowers hereby unconditionally and irrevocably authorize, empower, and direct the Administrative
Agent and the LC Participants to record and otherwise treat such reimbursements by the LC Participants to the LC Issuer initially as Loans with a three (3) month Interest Period under a Borrowing requested by the Borrowers to reimburse the LC
Issuer which have been transferred to the LC Participants at the Borrowers’ request. 
 (e) Repayment of
Participations. (i) At any time after the LC Issuer has made a payment under any Letter of Credit and has received from any LC Participant reimbursement for such LC Participant’s Pro Rate Share of the payment so made by the LC Issuer,
if the Administrative Agent receives for the account of the LC Issuer any payment in respect of the related payment by the LC Issuer under the relevant draw request or interest thereon (whether directly from the Borrowers or otherwise, and including
payments under any standby letter of credit issued to back a Letter of Credit and proceeds of cash collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute to such LC Participant its Pro Rata Share thereof in
the same funds as those received by the Administrative Agent. 
 (f) Obligations Unconditional. The obligations of the
Borrowers under this Agreement in respect of each Letter of Credit shall be unconditional and irrevocable, and shall be paid strictly in accordance with this Agreement under all circumstances, including: 
 (i) any lack of validity or enforceability of any LC Document; 
 (ii) any amendment or waiver of, or any consent to or departure from, any LC Document; 
  

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 (iii) the existence of any claim, set off, defense, or other right which the
Borrowers 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), the LC Issuer, or any other person or entity, whether in connection
with this Agreement, the transactions contemplated by this Agreement or in any LC Document, or any unrelated transaction; 
 (iv) any statement 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; 
 (v) payment by the LC Issuer under such Letter of Credit against presentation of a draw
request or other document which does not comply with the terms of such Letter of Credit; or 
 (vi) any other
circumstance whatsoever, whether or not similar to any of the foregoing, 
 provided, however, that
nothing contained in this clause (f) shall be deemed to constitute a waiver of any remedies of the Borrowers in connection with such Letter of Credit or the Borrowers’ rights under Section 2.4(g). 
 (g) Liability of LC Issuer. The Borrowers assume all risks of any act or omission of any beneficiary or transferee of any Letter of
Credit with respect to its use of such Letter of Credit. Neither the LC Issuer, any LC Participant nor any of their respective officers or directors shall be liable or responsible for: 
 (i) the use which may be made of any Letter of Credit or any act or omission of any beneficiary or transferee in connection
therewith; 
 (ii) the validity, sufficiency, or genuineness of any document, or of any endorsement thereon, even
if such document should prove to be in any or all respects invalid, insufficient, fraudulent, or forged; 
 (iii)
payment by the LC Issuer against presentation of any document which does not comply with the terms of a Letter of Credit, including failure of any document to bear any reference or adequate reference to the relevant Letter of Credit; or 

(iv) any other circumstances whatsoever in making or failing to make payment under any Letter of Credit (including the LC
Issuer’s own negligence), 
 provided that the Borrowers shall have a claim against the LC Issuer, and the
LC Issuer shall be liable to the Borrowers, to the extent of any direct, as opposed to consequential, damages suffered by the Borrowers which are found by a final, non-appealable judgment of a court of competent jurisdiction to have resulted by
reason of the LC Issuer’s willful misconduct or gross negligence in determining whether documents presented under a Letter of Credit were in compliance with the terms of such Letter of Credit (and in such case the reimbursement obligations of
the LC Participants to the LC Issuer under

  

 32 

 
Section 2.4(d) shall be suspended). Notwithstanding anything in the foregoing to the contrary, the LC Issuer may accept any document that appears on its face to be in order, without
responsibility for further investigation, regardless of any notice or information to the contrary. 
 (h) Cash Collateral
Account. 
 (i) If a Borrower is required to deposit funds in the Cash Collateral Account pursuant to this
Agreement or any Loan Document, then such Borrower shall establish the Cash Collateral Account and shall execute any document and Security Agreement, including the LC Issuer’s standard form assignment of deposit accounts, that the LC Issuer
requests in connection therewith to grant in favor of the Collateral Agent, for the benefit of the LC Issuer, a first priority Lien in respect of the Cash Collateral Account and the funds therein as security for the payment in full of the
Obligations. 
 (ii) So long as no Event of Default exists, (A) the Collateral Agent may apply the funds
held in the Cash Collateral Account only to the reimbursement of any LC Obligations and (B) the Collateral Agent shall release to the relevant Borrower at such Borrower’s written request any funds held in the Cash Collateral Account in an
amount up to but not exceeding the excess, if any (immediately prior to the release of any such funds), of the total amount of funds held in the Cash Collateral Account over the LC Outstandings (if any). Following the occurrence and at any time
during the continuation of any Event of Default, the Collateral Agent may, subject to Section 2.13 and Section 9.4(e), and in consultation with the LC Issuer and the Majority Lenders, apply any funds held in the Cash Collateral Account
to the Obligations regardless of any LC Outstandings (if any) that may remain outstanding. 
 (iii) The
Collateral 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 Collateral Agent accords its own property, it being understood that the Collateral Agent shall not have any responsibility for taking any necessary steps to preserve rights against any parties with respect to any such funds. 
 2.5 Prepayments. 
 (a) Optional. Each Borrower may at any time and from time to time voluntarily prepay the Loans, in whole or in part, by delivering to the Administrative Agent no later than 11:00 a.m. (London, England time) at least three
(3) Business Days prior to the proposed prepayment date, irrevocable written notice specifying the proposed prepayment date and the aggregate principal amount of such prepayment. Each such voluntary prepayment shall be in an amount equal to
$500,000 or a whole multiple of $100,000 in excess thereof (or, if less, the aggregate outstanding principal amount of the Loans, as the case may be). If any such notice is given, the amount specified in such notice shall be due and payable on the
date specified therein. 
  

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 (b) Mandatory. Each Borrower shall make a mandatory prepayment of the Loans in each
of the following circumstances: 
 (i) Disposal. If a Borrower or any of its Subsidiaries Disposes of any
property pursuant to Section 8.5(d), which results in the realization by such Person of Net Cash Proceeds in excess of $500,000 (or, if denominated in a non-Dollar currency, the Dollar Equivalent thereof calculated as of the date of receipt)
whether as a single Disposal or a series of related Disposals, such Borrower shall (and shall ensure that such Subsidiary will), no later than the last day of the Interest Period in which such Net Cash Proceeds are realized (A) apply an amount
equal to such Net Cash Proceeds to prepay the Loans and (B) if such prepayment occurs during the Commitment Period and if so required by the Majority Lenders, reduce the aggregate Commitments by an amount equal to such Net Cash Proceeds.

 (ii) Casualty Event. If a Borrower or any of its Subsidiaries receives Casualty Proceeds in excess of
$500,000 (or, if denominated in a non-Dollar currency, the Dollar Equivalent thereof calculated as of the date of receipt), such Borrower shall (and shall ensure that such Subsidiary will) no later than the last day of the Interest Period in which
such Casualty Proceeds are received (A) apply an amount equal to such Casualty Proceeds to prepay the Loans and (B) if such prepayment occurs during the Commitment Period and if so required by the Majority Lenders, reduce the aggregate
Commitments by an amount equal to such Casualty Proceeds; provided that if a Casualty Reinvestment Notice has been delivered in respect of the relevant Casualty Event, then such Borrower shall (and shall ensure that such Subsidiary will) no
later than the last day of the Interest Period in which the Casualty Reinvestment Prepayment Date occurs (C) apply an amount equal to the Casualty Reinvestment Prepayment Amount to prepay the Loans and (D) if such prepayment occurs during
the Commitment Period and if so required by the Majority Lenders, reduce the aggregate Commitments by an amount equal to the Casualty Reinvestment Prepayment Amount. 
 (iii) Illegality. If any Lender notifies the Administrative Agent and the Borrowers that the introduction of or any
change in or in the interpretation of any Applicable Law makes it unlawful, or any Governmental Authority asserts that it is unlawful, for such Lender to maintain any Loan outstanding hereunder, then such Lender’s Commitment shall be reduced to
zero and the Borrowers shall (if not prohibited by Applicable Law) prepay all outstanding Loans of such Lender no later than 11:00 a.m. (London, England time) on the last day of the then existing Interest Period for such Loans (or within such
earlier time as may be required by Applicable Law). 
 (iv) Loans Exceed Commitments. On the date of each
reduction of the aggregate Commitments pursuant to the provisions of this Agreement (including any reduction of the Commitments pursuant to Section 2.6), the Borrowers shall prepay the Loans to the extent, if any, that the aggregate unpaid
principal amount of all Loans plus the LC Outstandings (if any) exceeds the lesser of (A) the aggregate Commitments as so reduced and (B) the Borrowing Base. 
 (v) Acceleration. Immediately upon any acceleration of the maturity of any Loans pursuant to Section 9.2
or Section 9.3, the Borrowers shall prepay all Loans in full unless, pursuant to Section 9.3, only a portion of all the Loans is so accelerated (in which case the portion so accelerated shall be so prepaid). 
  

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 (c) No Additional Right; Interest; Ratable Prepayment. The Borrowers shall have no
right to prepay any Loan except as provided in this Section 2.5, and all notices given pursuant to this Section 2.5 shall be irrevocable and binding upon each Borrower. Each prepayment of any Loan shall be accompanied by accrued interest on
the principal amount prepaid to the date of such prepayment and breakage costs, if any, required to be paid pursuant to Section 4.4. Subject to Section 12.9(b), the amount of each prepayment shall be applied ratably to the
principal amount of each Lender’s Loans in accordance with its Pro Rata Share and each prepayment occurring on or after the Commitment Reduction Date shall be applied to reduce in inverse order the remaining amortization payments required in
respect of the then outstanding principal amount of the Loans pursuant to Section 2.7. 
 2.6 Termination or Reduction
of Commitments; Increase of Commitments. 
 (a) Optional. The Borrowers may, upon at least three (3) Business
Days’ irrevocable notice to the Administrative Agent, voluntarily terminate the unused and uncancelled portion of the Commitments in whole or reduce in part any unused and uncancelled portion of the Commitments. Unless otherwise stated in this
Agreement, each such reduction of the Commitments shall be in a minimum amount of $1,000,000 and in a whole multiple of $250,000 in excess thereof. Any such termination or reduction of the Commitments shall be permanent, and shall be applied to each
Lender’s Commitment in accordance with its Pro Rata Share; provided that while a Delinquent Period is in effect, the Borrowers may exercise their rights under Section 12.9(d) to reduce the Commitments of the relevant Delinquent Lender
before reducing each other Lender’s Commitment in accordance with its Pro Rata Share. 
 (b) Mandatory.
Notwithstanding anything in this Agreement to the contrary, on each Repayment Date, the aggregate Commitments of all Lenders then in effect shall be permanently reduced by an amount equal to the Commitment Reduction Amount (or, if the amount of the
aggregate Commitments at such time is less than the Commitment Reduction Amount, an amount equal to such Commitments). Each such reduction shall be applied to each Lender’s Commitment in accordance with its Pro Rata Share at such time, and
shall take effect without any further action on the part of such Lender, any Borrower, any Obligor, any Secured Party or any other Person. 
 (c) Increase of Commitments. The Borrowers shall have the right to increase the aggregate Commitments by obtaining additional funding commitments either from one or more of the Lenders (it being
understood that no Lender shall have, or be deemed to have, an obligation to provide a portion of any such increase in the Commitments merely by reason of being a party hereto) or any other commercial bank or financial institution generally engaged
in the business of providing corporate loans on a revolving basis; provided that (i) the aggregate amount of all such increases hereunder shall not result in the aggregate Commitments exceeding $250,000,000 at any time, (ii) any Person
that provides such increase shall be subject to the approval of the Majority Lenders and the LC Issuer, such approval not to be unreasonably withheld, conditioned or delayed, (iii) any such Person assumes all of the rights and obligations of a
“Lender” hereunder on terms substantially similar to those contained in the Assignment Agreement but otherwise pursuant to an assumption agreement in form and substance reasonably satisfactory to the Administrative Agent (acting on the
directions of the Majority Lenders) between such Person, the Borrowers and the Administrative Agent and (iv) as a condition precedent to any such increase, the Borrowers shall deliver to the Administrative Agent a certificate of each Obligor
signed by a Responsible Officer of such Obligor certifying and attaching the resolutions adopted by such Obligor approving or consenting to such increase, and certifying that, before and after giving effect to such

  

 35 

 
increase, the representations and warranties contained in this Agreement and the other Loan Documents are true and correct in all material respects with the same effect as if then made (unless
stated to relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date). 
 2.7 Repayment of Loans. Subject to Section 12.9(b), on each Repayment Date, the Borrowers shall repay to the Administrative Agent, for the ratable benefit of the Lenders, an outstanding
principal amount of the Loans equal to the Commitment Reduction Amount. 
 2.8 Interest. 
 (a) Loans. On each Interest Payment Date, the Borrowers shall pay interest in respect of the outstanding principal amount of each Loan
at a rate per annum equal at all times during the Interest Period for such Loan to LIBOR for such Interest Period plus the Applicable Margin; provided that if any circumstance in Section 2.3(b)(iii), Section 2.3(b)(iv) or
Section 2.3(b)(v) occurs which results in any Loan being maintained on a basis other than LIBOR, the Borrowers shall pay interest in respect of the outstanding principal amount of such Loan at a rate per annum equal to the alternative
rate identified in Section 2.3(b)(iii), Section 2.3(b)(iv) or Section 2.3(b)(v), as applicable plus the Applicable Margin at the end of each Fiscal Quarter or at such other times as may be reasonably determined by the
Administrative Agent. 
 (b) Additional Interest; Mandatory Costs. If any Lender is required to maintain any reserves with
respect to liabilities or assets consisting of or including Eurocurrency Liabilities (as defined in Regulation D of the Board of Governors of the Federal Reserve System of the United States of America) or to comply with any applicable requirements
of the European Central Bank, the Bank of England, the Financial Services Authority or any other Governmental Authority in connection with the advance or continuation of any Loan (including any marginal, special, emergency or supplemental reserves),
then the Borrowers shall pay to such affected Lender additional interest on the unpaid principal amount of such Loan from its effective date until its repayment in full, to compensate such Lender for its cost of compliance therewith. Such additional
interest shall be determined by such Lender and notified to the Borrowers through the Administrative Agent (such notice to include the calculation of such additional interest, which calculation shall be conclusive in the absence of manifest error).
Any additional interest shall be due and payable on each Interest Payment Date following the date of the Administrative Agent’s notice to the Borrowers to pay any such amount. 
 (c) Default Interest. If a Default under Section 9.1(a) or 9.1(f) or an Event of Default shall have occurred and be
continuing, then all Loans (whether or not then due) shall bear interest at a rate per annum equal to the rate that would otherwise be applicable thereto pursuant to this Section 2.8 plus an additional 2.00% per annum. In
addition, all amounts (other than the principal amount of the Loans) not paid when due hereunder (including, to the extent permitted by Applicable Law, all overdue interest and fees) shall bear interest at a rate per annum equal to the rate
that would have been payable if such overdue amount had been deemed to constitute a Loan with an Interest Period of three (3) months initially borrowed on the date such amount became overdue, plus an additional 2.00% per annum.

  

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 2.9 Fees. The Borrowers shall pay the following fees, all of which shall be fully
earned and nonrefundable when paid (regardless of whether any Borrowing contemplated by this Agreement is requested), shall be paid in immediately available funds when due, shall not be subject to any counterclaim or set off and shall be in addition
to, and not in lieu of, and any other fees, reimbursements of out-of-pocket costs and expenses payable by any Borrower under this Agreement or any other Loan Document: 
 (a) Commitment Fee. Subject to Section 12.9(e), the Borrowers shall pay to the Administrative Agent for the account of each Lender a commitment fee at a per annum rate equal to the
Commitment Fee Rate on the average daily unused and uncancelled portion of such Lender’s Commitment, from the Closing Date until the Commitment Termination Date. The commitment fees shall be due and payable in arrears on the last day of each
Fiscal Quarter after the Closing Date (and continuing thereafter through and including the Commitment Termination Date) and shall be fully earned and nonrefundable when paid, regardless of whether any Borrowing contemplated by this Agreement is
requested. 
 (b) Letter of Credit Fees. Subject to Section 12.9(e), the Borrowers shall pay to the Administrative
Agent for the pro rata benefit of the LC Issuer and the LC Participants a per annum letter of credit fee for each Letter of Credit issued hereunder in an amount equal to the Applicable Margin multiplied by the face amount of such Letter of
Credit for the period such Letter of Credit is to be outstanding; provided that, for any Letter of Credit that is (i) Cash Collateralized or (ii) backed by a standby letter of credit issued by a financial institution acceptable to the LC
Issuer in its sole discretion, then the per annum letter of credit fee for such Letter of Credit shall be an amount equal to 1.00% multiplied by the face amount of such Letter of Credit for the period such Letter of Credit is outstanding. On
each date of issuance of any Letter of Credit, the Borrowers shall pay to the LC Issuer, solely for its own account, a fronting fee in an amount equal to 0.25% of the original maximum amount available to be drawn under such Letter of Credit. Each
letter of credit fee shall be payable in advance on the date of the issuance of the Letter of Credit, and, in the case of an increase in the face amount or extension of the expiry date of such Letter of Credit only, on the date of such increase or
extension. Without prejudice to the foregoing, the Borrowers also shall pay to the LC Issuer, solely for its own account, promptly on demand such other usual and customary fees associated with any transfers, amendments, drawings, negotiations or
re-issuances of any Letter of Credit. Such fees and charges shall be due and payable on demand and shall be nonrefundable. 
 2.10 Computation of Interest and Fees. All computations of interest and fees shall be made by the Administrative Agent, on the basis of a year of three hundred and sixty (360) days, in each case for the actual number of days
(including the first day, but excluding the last day) occurring in the period for which such interest or fees are payable. Each determination by the Administrative Agent of an interest rate or fee shall be conclusive and binding for all purposes,
absent manifest error. 
 2.11 Payment Procedures; Clawback. 
 (a) Payments by Borrowers. The Borrowers and each other Obligor shall make each payment required of it under this Agreement and under
any other Loan Document not later than 11:00 a.m. (London, England time) on the date due in Dollars to the Administrative Agent at its Funding Office, or such other location as the Administrative Agent may designate in writing to the Borrowers or
such Obligor in same day funds without deduction, set off, or counterclaim of any kind. Upon its actual receipt of such payment in same day funds without deduction, set off, or counterclaim of any kind, the Administrative Agent shall promptly
thereafter calculate and cause to be distributed ratably to each Lender in accordance with such Lender’s Pro Rata Share at each Lender’s respective Funding Office or to an account of such Lender at a bank in New York City as notified to
the

  

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Administrative Agent at least five (5) Business Days prior to such distribution, like funds relating to the payment of principal, interest, fees or any other amounts (other than amounts
payable solely to the Administrative Agent, the LC Issuer, or a specific Lender), and like funds relating to the payment of interest, fees or any other amounts payable to the LC Issuer for its account at its Funding Office, in each case to be
applied in accordance with this Agreement. If the Administrative Agent makes a payment to a Lender or the LC Issuer in circumstances where the Administrative Agent was for any reason not in actual receipt of same day funds for such payment without
deduction, set off or counterclaim (it being understood that the Administrative Agent shall have no obligation to make such a payment unless and until it actually receives such funds from the Borrowers), then such Lender or the LC Issuer (as the
case may be) shall on demand therefor promptly refund such payment to the Administrative Agent together with accrued interest thereon from the date of its receipt of such payment to the date such refund is received by the Administrative Agent, such
interest to be based on the rate determined by the Administrative Agent as its cost of funding for such payment. 
 (b)
Non-Business Day Payments. If any payment of principal on a Loan becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended to the next succeeding Business Day unless the result of such extension would
be to extend such payment into another calendar month, in which event such payment shall be made on the immediately preceding Business Day. In the case of any extension of any payment of principal on a Loan pursuant to the preceding sentence,
interest thereon shall be payable at the applicable interest rate during such extension as determined by the Administrative Agent in its reasonable discretion. In the case of fees or any other amount under a Loan Document (other than principal or
interest) that becomes due and payable on a day other than a Business Day, such amount shall be payable on the next succeeding Business Day. 
 2.12 Evidence of Indebtedness. 
 (a) Records of Loans. The Loans made
by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in accordance with its usual practice in the ordinary course of business. The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Loans made by the Lenders to the Borrowers 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 Borrowers 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 made through the Administrative Agent, the Borrowers shall
execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender’s Loans in addition to such accounts or records. Each Lender may attach schedules to its Note and endorse thereon the date, amount
and maturity of its Loans and payments with respect thereto. 
 (b) Records of Letters of Credit. Without prejudice to
Section 2.12(a), each Lender and the Administrative Agent shall maintain in accordance with its usual practice in the ordinary course of business, one or more accounts or records evidencing each purchase and sale by such Lender of
participations in Letters of Credit. 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. 
  

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 2.13 Sharing of Payments by Lenders. 
 (a) General. Subject to Section 2.13(b), 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 Loans or LC Outstandings (if any) in excess of its Pro Rata Share, such Lender (the “Purchasing Lender”) shall promptly notify the Administrative Agent to such effect and
shall be deemed to have forthwith purchased from the other Lenders (other than any Delinquent Lender) participations in their Loans or LC Outstandings (if any) as shall be necessary to cause the Purchasing Lender to share the excess payment received
ratably with such other Lenders; provided that if all or any portion of such excess payment is thereafter recovered by each of such Lenders, the Purchasing Lender’s purchase from such Lender shall be rescinded and such Lender shall repay to the
Purchasing Lender the purchase price to the extent of its Pro Rata Share of such recovery. The Borrowers agree that any Purchasing Lender that is deemed to have purchased a participation from another Lender may, to the fullest extent permitted by
Applicable Law, exercise all its rights (including the right of set off) with respect to such participation as fully as if such Lender were the direct creditor of the Borrowers in the amount of such participation. 
 (b) Exceptions. Section 2.13(a) shall not apply to (i) any payment made by an Obligor to a Lender pursuant to and in
accordance with the express terms of this Agreement or any other Loan Document, (ii) any consideration received by a Lender in relation to any participation granted by it or any assignment made by it in accordance with and pursuant to
Section 12.7 and (iii) any payment obtained by a Lender in accordance with and pursuant to Section 12.9. In addition, nothing in this Section 2.13 shall at any time require a Lender to share with a Delinquent Lender any
payment received by such Lender during the relevant Delinquent Period. 
 ARTICLE 3 
 BORROWING BASE 
 3.1
Initial Borrowing Base. The initial Borrowing Base in effect on the Closing Date shall be $30,000,000. Such initial Borrowing Base shall be subject to redetermination from time to time in accordance with this ARTICLE 3. 
 3.2 Scheduled Redeterminations. 
 (a) Independent Reserves Report. 
 (i) Closing Date
Delivery. On the Closing Date, the Borrowers shall deliver to the Technical Agent and each Lender a reserves report dated as of May 7, 2009 from RPS Energy with respect to the Hydrocarbon Interests included or to be included in the
Borrowing Base. 
  

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 (ii) Subsequent Deliveries. Within ninety (90) days after
December 31 in each year, commencing with December 31, 2009, the Borrowers shall deliver to the Technical Agent an Independent Reserves Report dated effective as of such December 31, and such other information as may be reasonably
requested by the Technical Agent or any Lender with respect to the Hydrocarbon Interests included or to be included in the Borrowing Base. Within thirty (30) days after the Technical Agent’s receipt of such Independent Reserves Report and
other information, the Technical Agent shall deliver to each Lender the Technical Agent’s recommendation for the redetermined Borrowing Base. Within ten (10) days after the Lenders’ receipt of the Technical Agent’s
recommendation, the Technical Agent and the Majority Lenders shall redetermine the Borrowing Base in accordance with Section 3.4, and the Technical Agent shall promptly notify the Administrative Agent, the Borrowers and the Lenders of the
amount of the Borrowing Base as so redetermined provided that if the Majority Lenders do not agree on a redetermined Borrowing Base, the lowest redetermined amount among the Lenders will prevail. If the redetermined amount is lower than the
Borrowing Base existing prior to such redetermination, the Borrowing Base shall be equal to the redetermined amount one (1) Business Day after such notification. If the redetermined amount is greater than the Borrowing Base existing prior to
such redetermination, the express written approval of the Supermajority Lenders shall be required before the redetermined amount may take effect, failing which the Borrowing Base shall remain the same as that existing prior to such redetermination.

 (b) Internal Reserves Reports. Within forty-five (45) days after June 30 in each year, commencing with
June 30, 2010, the Borrowers shall deliver to the Technical Agent and the Independent Reserves Engineer an Internal Reserves Report dated effective as of such June 30, and such other information as may be reasonably requested by the
Technical Agent, the Independent Reserves Engineer or any Lender with respect to the Hydrocarbon Interests included or to be included in the Borrowing Base. Within thirty (30) days after the Technical Agent’s receipt of such Internal
Reserves Report and other information and the completion of the Independent Reserves Engineer’s review of such Report and other information, the Technical Agent shall deliver to each Lender the Technical Agent’s and Independent
Engineer’s recommendation for the redetermined Borrowing Base. Within ten (10) days after the Lenders’ receipt of the Technical Agent’s and Independent Engineer’s recommendation, the Technical Agent and the Majority Lenders
shall redetermine the Borrowing Base in accordance with Section 3.4, and the Technical Agent shall promptly notify the Administrative Agent, the Borrowers and the Lenders of the amount of the Borrowing Base as so redetermined provided that if
the Majority Lenders do not agree on a redetermined Borrowing Base, the lowest redetermined amount among the Lenders will prevail. If the redetermined amount is lower than the Borrowing Base existing prior to such redetermination, the Borrowing Base
shall be equal to the redetermined amount one (1) Business Day after such notification. If the redetermined amount is greater than the Borrowing Base existing prior to such redetermination, the express written approval of the Supermajority
Lenders shall be required before the redetermined amount may take effect, failing which the Borrowing Base shall remain the same as that existing prior to such redetermination. 
 (c) Late Delivery. If the Borrowers do not furnish to the Technical Agent and the Lenders the Independent Reserves Report, Internal
Reserves Report or other information specified in clauses (a) or (b) above by the required date, (i) the obligation of the Lenders to advance a Loan hereunder and the obligation of the LC Issuer to issue a Letter of Credit hereunder
shall be only at the option of any such Lender or LC Issuer, respectively and (ii) the Technical Agent and the Lenders may nonetheless

  

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redetermine the Borrowing Base from time to time thereafter in their sole discretion until the Technical Agent and the Lenders receive the relevant Independent Reserves Report, Internal Reserves
Report, or other information, as applicable, whereupon the Technical Agent and the Lenders shall redetermine the Borrowing Base as otherwise specified in this ARTICLE 3. 
 (d) Representation and Warranty. Each delivery of an Internal Reserves Report by the Borrowers to the Technical Agent and the Lenders
shall constitute a representation and warranty by the Borrowers to the Technical Agent and the Lenders that (i) the Borrowers have rights with respect to the Hydrocarbon Interests specified therein pursuant to the terms of the Hydrocarbon
Licenses and (ii) on and as of the date of such Reserves Report each Hydrocarbon Interest described as “proved developed” therein was developed for oil and/or gas, and the wells pertaining to such Hydrocarbon Interests described
therein as “producing wells” were each producing oil and gas in paying quantities, except for wells that were utilized as water or gas injection wells or as water disposal wells. Concurrently with the delivery of each Independent Reserves
Report to the Technical Agent, the Borrowers shall deliver a certificate of the Borrowers, signed by a Responsible Officer of the Borrowers, representing and warranting as to the truth, completeness and accuracy of the statements set forth in
clauses (i) and (ii) of the immediately preceding sentence in respect of such matters as covered in such Independent Reserves Report. 
 3.3 Interim Redeterminations. With effect from the first anniversary of the Closing Date, and in addition to the scheduled redeterminations of the Borrowing Base provided for in Section 3.2,
the Majority Lenders shall have the right to require one (1) interim redetermination of the Borrowing Base during any period of twelve (12) consecutive months upon giving the Technical Agent and the Borrowers at least ten
(10) days’ prior written notice to such effect, and the Borrowers shall have the right to require one (1) interim determination of the Borrowing Base during any period of twelve (12) consecutive months upon giving the Technical
Agent and the Lenders at least ten (10) days’ prior written notice to such effect. In connection with any redetermination of the Borrowing Base under this Section 3.3, the Borrowers shall provide the Technical Agent with such
supporting information regarding the Borrowers’ business (including the Hydrocarbon Interests, the Proved Reserves, and production relating thereto) as the Technical Agent or any Lender may reasonably request, including, in the case of requests
for an increase to the Borrowing Base of $1,000,000 or more, an updated Independent Reserves Report. Within thirty (30) days after the Technical Agent’s receipt of a request for an interim determination under this Section 3.3
together with such supporting information (if any) referred to in the previous sentence, the Technical Agent shall deliver to each Lender the Technical Agent’s recommendation for the redetermined Borrowing Base. Within ten (10) days after
the Lenders’ receipt of the Technical Agent’s recommendation, the Technical Agent and the Majority Lenders shall redetermine the Borrowing Base in accordance with Section 3.4, and the Technical Agent shall promptly notify the
Administrative Agent, the Borrowers and the Lenders of the amount of the Borrowing Base as so redetermined provided that if the Majority Lenders do not agree on a redetermined Borrowing Base, the lowest redetermined amount among the Lenders
will prevail. If the redetermined amount is lower than the Borrowing Base existing prior to such redetermination, the Borrowing Base shall be equal to the redetermined amount one (1) Business Day after such notification. If the redetermined
amount is greater than the Borrowing Base existing prior to such redetermination, express written approval of the Supermajority Lenders shall be required before the redetermined amount may take effect, failing which the Borrowing Base shall remain
the same as that existing prior to such redetermination. 
 3.4 Standards for Redetermination. Each redetermination of
the Borrowing Base by the Technical Agent and the Majority Lenders pursuant to this ARTICLE 3 shall be made (i) in the sole discretion of the Technical Agent and the Majority Lenders (but in

  

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accordance with the other provisions of this Section 3.4), (ii) in accordance with the Technical Agent’s and the Majority Lenders’ customary internal standards and practices
for valuing and redetermining the value of Hydrocarbon Interests in connection with reserve based oil and gas loan transactions, (iii) in conjunction with the most recent Independent Reserves Report or Internal Reserves Report (as applicable)
or other information received by the Technical Agent or any Lender relating to the Hydrocarbon Interests, the Proved Reserves and production relating thereto and (iv) based upon the estimated Present Value pursuant to the terms of the
Hydrocarbon Licenses as determined by the Technical Agent and the Majority Lenders. In valuing and redetermining the Borrowing Base, the Technical Agent and the Majority Lenders may also consider the business, financial condition, and Indebtedness
of the Borrowers and any of their Subsidiaries, any Hydrocarbon Hedge Agreements and such other factors as the Technical Agent and the Majority Lenders customarily deem appropriate, and shall be satisfied that the Present Value is at least equal to
125% of the projected future net cash flows attributable to Proved Developed Producing Reserves at such time and that such projected future net revenues will be sufficient to meet scheduled payments of principal, interest and fees under this
Agreement and the other Loan Documents as and when they become due. In that regard, the Borrowers acknowledge that the determination of the Borrowing Base contains an equity cushion (market value in excess of loan value), which is essential for the
adequate protection of the Technical Agent and the Lenders. No Proved Reserves shall be included or considered for inclusion in the Borrowing Base unless the Technical Agent shall have received, at the Borrowers’ expense, Security Documents,
filings, legal opinions and such other appropriate documentary evidence satisfactory in form and substance to the Technical Agent confirming the existence of a Security Interest in the Hydrocarbon Licenses and the Hydrocarbon Interests pertaining
thereto (to the fullest extent permissible under the laws of Turkey). At all times after the Technical Agent has given the Borrowers notification of a redetermination of the Borrowing Base under this ARTICLE 3, the Borrowing Base shall be
equal to the redetermined amount until the Borrowing Base is again redetermined in accordance with this ARTICLE 3. 
 3.5
Borrowing Base Deficiency. If a Borrowing Base Deficiency occurs, the Technical Agent shall deliver to the Administrative Agent, the Borrowers and the Lenders as soon as reasonably practicable thereafter a notice to such effect (the
“Borrowing Base Deficiency Notice”). The Borrowers shall cure the Borrowing Base Deficiency within forty-five (45) days after receipt of such Borrowing Base Deficiency Notice. In addition, the Borrowers shall deliver to the
Technical Agent and the Administrative Agent (for delivery to the Lenders) within fifteen (15) days after receipt of such Borrowing Base Deficiency Notice, a written statement (the “Borrowing Base Deficiency Cure Notice”)
indicating which one or combination of the following actions it intends to take to cure the Borrowing Base Deficiency: 
 (a) a
prepayment of all or any part of the Loans pursuant to Section 2.5(a); 
 (b) Cash Collateralizing the LC Outstandings (if
any) then in existence; or 
 (c) a security interest in additional Collateral, such security interest and such additional
Collateral to be acceptable to the Collateral Agent and each Lender in its sole discretion. 
 3.6 Operational Lock-Up.
Following the occurrence of a Borrowing Base Deficiency, all amounts deposited in the Collection Accounts shall be retained therein, and no withdrawals may be made therefrom except in accordance with Section 7.13. 
  

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 ARTICLE 4 
 TAXES AND YIELD PROTECTION 
 4.1 Taxes. 
 (a) No Deduction for Certain Taxes. Any and all payments by each Obligor shall be made free and clear of and without
deduction for any and all present and future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding, in the case of each Secured Party, taxes imposed on its income by the jurisdiction under
the laws of which such Secured Party 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 Secured Party, Taxes by the jurisdiction of such Secured Party’s Funding Office or any political subdivision of such jurisdiction. If any Obligor shall be required by law to deduct any Taxes
from or in respect of any sum payable to any Secured Party, (i) 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 4.1), such Secured Party receives an amount equal to the sum it would have received had no such deductions been made; (ii) such Obligor shall make such deductions; and (iii) such Obligor shall pay the full amount deducted to
the relevant taxation authority or other authority in accordance with Applicable Law. 
 (b) Other Taxes.
In addition, each Obligor shall pay (i) any present and future stamp or documentary taxes or any other excise or property taxes, intangible or mortgage recording taxes, charges or similar levies and (ii) any value added taxes imposed by
the jurisdiction in which the Obligor is resident, in each of (i) and (ii) arising from any payment made or from the execution, delivery, enforcement or registration of, or otherwise with respect to, this Agreement, the Notes, or the other
Loan Documents (hereinafter referred to as “Other Taxes”). 
 (c) Indemnification for
Taxes. Each Obligor indemnifies each Secured Party for the full amount of Taxes and Other Taxes (including any Taxes and Other Taxes imposed by any jurisdiction on amounts payable under this Section 4.1) paid by such Secured Party 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 an Obligor in respect of this indemnification
shall be made to the Administrative Agent for the benefit of any party claiming such indemnification within thirty (30) days from the date such Obligor receives written demand therefor from the Administrative Agent on behalf of itself as
Administrative Agent or any such Secured Party. If any Secured Party receives a refund in respect of any Taxes paid by an Obligor under this clause (c), such Secured Party shall promptly pay to such Obligor such Obligor’s share of such
refund as reasonably determined by such Secured Party. 
 4.2 Increased Costs. 
 (a) Change in Law. If, due to either (i) the introduction of or any change in or in the interpretation of any
Applicable Law after the Closing Date or (ii) the compliance with any guideline or request from any Governmental Authority (whether or not having the force of law) that becomes effective after the Closing Date, there shall be any increase in
the cost to any Secured Party of agreeing to make or making, funding, or maintaining any Credit Extension (whether as a result of any consequent change in its basis of taxation, any consequent introduction of additional regulatory fees or deposits
or otherwise), then each

  

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Borrower shall from time to time, upon demand by such Secured Party (with a copy of such demand to the Administrative Agent), immediately pay to the Administrative Agent for the account of such
Secured Party such additional amounts as shall be sufficient to compensate such Secured Party for such increased cost. A certificate as to the amount of such increased cost and detailing the calculation of such cost submitted to such Borrower and
the Administrative Agent by such Secured Party shall be conclusive and binding for all purposes, absent manifest error. 
 (b) Capital Adequacy. If any Lender determines in good faith that compliance with any Applicable Law or any guideline or request from any Governmental Authority (whether or not having the force of law) that becomes effective after
the Closing Date affects or would affect the amount of capital required or expected to be maintained by such Lender or any corporation controlling such Lender and that the amount of such capital is increased by or based upon the existence of such
Lender’s Commitment or the LC Issuer’s commitment to issue Letters of Credit, then, upon ten (10) days’ prior written notice by such Lender or the LC Issuer (with a copy of any such demand to the Administrative Agent), each
Borrower shall immediately pay to the Administrative Agent for the account of such Lender or the LC Issuer from time to time as specified by it, such additional amounts as shall be sufficient to compensate such Lender or the LC Issuer, 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 and (ii) with respect to the LC Issuer, to
the extent that the LC Issuer reasonably determines such increase in capital to be allocable 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 such
Borrower by such Lender or the LC Issuer shall be conclusive and binding for all purposes, absent manifest error. 
 (c) Letters of Credit. If any change in any law or regulation or in the interpretation thereof by any Governmental Authority charged with the administration thereof that becomes effective after the Closing Date shall either
(i) impose, modify, or deem applicable any reserve, special deposit, or similar requirement against letters of credit issued by, or assets held by, or deposits in or for the account of, the LC Issuer or (ii) impose on the LC Issuer any
other condition regarding any Letter of Credit or any LC Outstandings (if any), and the result of any event referred to in the preceding clause (i) or (ii) shall be to increase the cost to the LC Issuer of issuing or maintaining any Letter
of Credit (which increase in cost shall be determined by the LC Issuer’s reasonable allocation of the aggregate of such cost increases resulting from such event), then, upon demand by the LC Issuer, each Borrower shall pay to the LC Issuer,
from time to time as specified by the LC Issuer, such additional amounts as shall be sufficient to compensate the LC Issuer for such increased cost. A certificate as to such increased cost incurred by the LC Issuer, as a result of any event
mentioned in the preceding clause (i) or (ii), and detailing the calculation of such increased costs submitted by the LC Issuer to such Borrower, shall be conclusive and binding for all purposes, absent manifest error. 
 (d) Clawback Limitation. Failure or delay on the part of any Lender or the LC Issuer to demand compensation pursuant
to this Section 4.2 shall not constitute a waiver of such Lender’s or the LC Issuer’s right to demand such compensation; provided that no Borrower shall be required to compensate a Lender or the LC Issuer pursuant to this
Section 4.2 for any increased costs incurred or reductions suffered more than one hundred and eighty (180) days prior to the date that such Lender or the LC Issuer, as the case may be, notifies such Borrower of the event giving rise to
such increased costs or reductions and of such Lender’s or the LC Issuer’s intention to claim compensation therefor (except that, if the event giving rise to such increased costs or reductions is retroactive, then the one hundred and
eighty (180) day period referred to above shall be extended to include the period of retroactive effect thereof). 
  

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 4.3 Mitigation Obligations. If any Lender or the LC Issuer requests compensation
under Section 4.1 or Section 4.2, then such Lender or the LC Issuer shall use reasonable efforts to designate a different Funding Office for funding or booking its Loans or Letters of Credit, or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender or the LC Issuer, such designation or assignment (i) would eliminate or reduce amounts payable by each Borrower pursuant to Section 4.1 or
Section 4.2 in the future and (ii) would not subject such Lender or the LC Issuer to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender or the LC Issuer, as the case may be. Each Borrower hereby
agrees to pay all costs and expenses incurred by any Lender or the LC Issuer in connection with any such designation or assignment; provided that such costs and expenses incurred by any Lender or the LC Issuer in connection with any such
designation or assignment are not greater than amounts payable under Section 4.1 or Section 4.2. 
 4.4
Breakage Costs. Each Borrower agrees to indemnify each Lender on demand for, and to hold each Lender harmless from, any Tax, loss or expense that such Lender may sustain or incur as a consequence of (a) each Borrower’s failure to
borrow or continue any Loan after requesting the same, (b) each Borrower’s failure to make any prepayment of Loans after such Borrower has given a notice thereof, (c) the making of a prepayment of Loans on a day that is not the last
day of an Interest Period with respect thereto or (d) receipt by an LC Participant pursuant to Section 2.4(e) of its Pro Rata Share of the amount necessary to reimburse the LC Issuer in full for any payment made by it under a Letter of
Credit. Such indemnification may include an amount equal to the excess, if any, of (i) the amount of interest that would have accrued on the amount so prepaid, or not so borrowed or continued, for the period from the date of such prepayment or
of such failure to borrow or continue to the last day of such Interest Period (or, in the case of a failure to borrow or continue, the Interest Period that would have commenced on the date of such failure) in each case at the applicable rate of
interest for such Loans provided for herein (excluding, however, the Applicable Margin included therein, if any) over (ii) the amount of interest (as reasonably determined by such Lender) that would have accrued to such Lender on such
amount by placing such amount on deposit for a comparable period with leading banks in the London interbank market. A certificate as to any amounts payable pursuant to this Section 4.4 submitted by such Lender to each Borrower through the
Administrative Agent shall be conclusive absent manifest error. 
 4.5 Survival. All of the Borrowers’ obligations
under this ARTICLE 4 shall survive the termination of the Commitments and the payment in full of the Obligations. 
 ARTICLE 5 
 CONDITIONS PRECEDENT 
 5.1 Conditions to Closing. The agreement of the LC Issuer and each Lender to make its initial Credit Extension to any Borrower other than Talon hereunder is subject to the satisfaction of the
following conditions precedent: 
 (a) Credit Agreement. This Agreement shall have been duly executed and
delivered by the parties thereto. 
  

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 (b) Notes. The Notes shall have been duly executed and delivered by the Borrowers.

 (c) Security Documents. The Security Documents (other than the Turkey License Pledge Agreement and the applicable
commercial enterprise pledge agreement) shall have been duly executed and delivered by the parties thereto, together with (to the extent applicable) share certificates, direction letters, acknowledgement notices, public registrations and any other
documents in connection with the attachment, perfection or priority of the Liens created thereby as the Collateral Agent may reasonably require and any consents required in connection therewith (including, without limitation, all consents from the
Gas Owners (as defined in the Edirne Gas Sale Agreement) to the assignment of receivables by PEMI under the Edirne Gas Sale Agreement) shall have been obtained. 
 (d) Loan Documents; Fee Letter. (i) The Fee Letter shall have been duly executed and delivered by the parties thereto, and (ii) each other Loan Document to be delivered on the Closing
Date shall have been duly executed and delivered by the parties thereto in form and substance satisfactory to the Majority Lenders. 
 (e) Hydrocarbon Licenses; Eligible Contracts. The Collateral Agent shall have received (i) a copy of each Hydrocarbon License held by the Borrowers in effect on the Closing Date and (ii) a duly executed copy of each
Eligible Contract (and, if such Eligible Contract is not in the English language, a certified English language translation thereof if requested by the Collateral Agent) in respect of which the rights to the receivables payable thereunder shall have
been duly pledged for the benefit of the Collateral Agent in accordance with the relevant Security Document. 
 (f)
Governmental Authorizations. The Administrative Agent and the Collateral Agent shall have received evidence to their reasonable satisfaction that all governmental authorizations (including, if necessary, written approval from the GDPA and
EMRA) and third-party consents necessary in connection with the transactions contemplated by the Loan Documents have been obtained and are in full force and effect. 
 (g) Independent Reserves Report. The Technical Agent and the Lenders shall have received a reserves report, in form and substance satisfactory to them, in respect of the Hydrocarbon Interests dated
as of May 7, 2009 from RPS Energy, together with such other information as may be reasonably requested by them with respect to the Hydrocarbon Interests included or to be included in the Borrowing Base. 
 (h) Insurance Policies. The Collateral Agent shall have received a certificate of insurance in respect of each insurance policy
required to be maintained by the Borrowers and their Subsidiaries pursuant to Section 7.8. 
 (i) Process Agent.
The Administrative Agent shall have received evidence to its reasonable satisfaction that (i) CT Corporation System shall have agreed to act as agent for service of process on behalf of each Obligor in the State of New York and (ii) Law
Debenture Trust Services shall have agreed to act as agent for service of process on behalf of each Obligor in England. 
 (j)
Event of Default. The Administrative Agent shall have received from a Responsible Officer of the Borrowers a certificate stating that no Default or Event of Default has occurred and is continuing as of the Closing Date or could reasonably be
expected to occur as a result of the transactions contemplated on the Closing Date. 
  

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 (k) Officer’s Certificates; Resolutions, etc. The Administrative Agent shall
have received from each Obligor, as applicable, (1) a copy of a good standing certificate (or, if such concept does not exist under the laws of such Obligor’s jurisdiction of organization, an equivalent thereof reasonably acceptable to the
Administrative Agent to the extent available or practicable) in respect of such Obligor, dated a date reasonably close to the Closing Date and (2) a certificate, dated the Closing Date, duly executed and delivered by an Authorized Officer for
such Obligor as to: 
 (i) resolutions of each such Obligor’s board of directors or managing director(s) (or
other managing body) then in full force and effect authorizing the execution, delivery and performance of each Loan Document to be executed by such Obligor and the transactions contemplated hereby and thereby and any other resolutions of each such
Obligor’s board of directors or managing director(s) (or other managing body) or Affiliates then in full force and effect authorizing any other action necessary or desirable in the sole discretion of the Administrative Agent to effectuate such
transactions; 
 (ii) the incumbency and signatures of those of its officers authorized to act with respect to
each Loan Document to be executed by such Obligor; and 
 (iii) the full force and validity of each Organic
Document of such Obligor and attaching copies thereof. 
 (l) Due Diligence. The Administrative Agent shall have
completed, and be satisfied in all respects with the scope and results of, its ongoing due diligence investigation of the business, assets (including the Hydrocarbon Interests), management, operations and prospects of the Obligors and contingent
liabilities and obligations of the Obligors. 
 (m) Fees, Expenses, etc. The Administrative Agent shall have received for
its own account and for the account of each Lender, as applicable, (i) all fees, costs and expenses due and payable pursuant to the Fee Letter and Section 2.9 and (ii) all costs and expenses due and payable pursuant to
Section 12.5 for which invoices have been presented. 
 (n) Legal Opinions. The Administrative Agent shall
have received a favorable legal opinion, each to be dated on or about the Closing Date and in form and substance satisfactory to the Administrative Agent, from (i) Mallesons Stephen Jaques, Australian counsel to the Administrative Agent,
(ii) Higgs &Johnson, Bahamas counsel to the Administrative Agent, (iii) Conyers Dill and Pearman, Bermuda counsel to the Parent, (iv) Pekin & Bayar, Turkish counsel to the Administrative Agent, (v) Holme
Roberts & Owen LLP, special Colorado counsel to Transatlantic Petroleum (USA) Corp., and (vi) Jones Day, special New York and English counsel to the Administrative Agent. 
 (o) Financial Statements. The Administrative Agent shall have received a copy of the audited consolidated balance sheet and statement
of income and of cash flows of the Parent and its Subsidiaries for the Fiscal Year ending December 31, 2008 and shall be satisfied with the contents thereof. 
  

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 (p) Know your Customer Documentation. The Administrative Agent shall have received,
and be reasonably satisfied in form and substance with, all documentation and other information required by bank regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the
USA PATRIOT Act, the United Kingdom Proceeds of Crime Act 2002 and the United Kingdom Money Laundering Regulations 2003. 
 (q)
Turkiye Garanti Bankasi A.S. The Administrative Agent and the Collateral Agent shall be satisfied that the credit facility with Turkiye Garanti Bankasi A.S. and all extensions of credit thereunder and Liens in respect thereof shall have been
effectively terminated and cancelled under applicable law. 
 (r) Collection Accounts. The Collateral Agent shall be
satisfied that the Collection Accounts have been established. 
 (s) Edirne Gas Sale Agreement. The Edirne Gas Sale
Agreement shall be in full force and effect. 
 (t) Use of Proceeds. The Lenders shall have received a statement from the
Parent setting forth (in detail reasonably satisfactory to the Lenders) the intended uses of proceeds of the Extensions of Credit hereunder. 
 (u) Miscellaneous. Each of the Administrative Agent and the Collateral Agent shall have received such other documents and information reasonably requested by it in connection with the transactions
contemplated by the Loan Documents. 
 5.2 All Loans. The obligation of each Lender to make or continue any Loan, and the
obligation of the LC Issuer to make any LC Issuance, shall be subject to the satisfaction of each of the following additional conditions precedent: 
 (a) Compliance with Warranties, No Default, etc. Both before and after giving effect to any Loan or any LC Issuance (as the case may be) to be made or continued, the following statements shall be
true and correct: 
 (i) as to the initial Credit Extension hereunder, the representations and warranties in each
Loan Document shall, in each case, be true and correct with the same effect as if then made (unless stated to relate solely to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date);

 (ii) as to any subsequent Credit Extension hereunder, the representations and warranties in each Loan Document
shall, in each case, be true and correct in all material respects with the same effect as if then made (unless stated to relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material
respects as of such earlier date); and 
 (iii) no Default or Event of Default shall have then occurred and be
continuing. 
 (b) Satisfactory Legal Form; Delivery. All documents required to be delivered pursuant to Section
2.3(a)(i) and Section 2.4(b), respectively, shall have been duly executed and delivered to the Administrative Agent in accordance with the provisions thereof by or on behalf of the Borrowers (including, without limitation, any Notice of
Borrowing and LC Application) and shall be reasonably satisfactory in form and substance to the Administrative Agent; and the Administrative Agent shall have received all information, approvals, opinions, documents or instruments as it may have
reasonably requested. 
  

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 5.3 Conditions to Credit Extensions to Talon. In addition to the conditions set forth
in Sections 5.1 and 5.2, the agreement of the LC Issuer and each Lender to make any Credit Extension to Talon hereunder is subject to the Administrative Agent having received evidence to its satisfaction of Talon having registered with the GDPA the
change of name from “Energy Operations Turkey, LLC-Ankara, Turkey Branch” to “Talon Exploration, Ltd.-Ankara, Turkey Branch”. 
 ARTICLE 6 
 REPRESENTATIONS AND WARRANTIES 
 To induce the Lenders, the LC Issuer and each Agent to enter into this Agreement, each Obligor hereby makes the following representations
and warranties in this ARTICLE 6: 
 6.1 Existence; Subsidiaries. Each Obligor is duly organized, validly existing
and in good standing (if such concept exists under the laws of such Obligor’s jurisdiction of organization) under the laws of its jurisdiction of formation, and qualified to do business in each jurisdiction where its ownership or lease of
property or conduct of its business requires such qualification. As at the Closing Date, each Borrower has no Subsidiaries. Schedule IV sets forth the name and jurisdiction of organization of each Obligor and, as to each Obligor that is a
Subsidiary of a Borrower, the percentage of each class of Equity Interests owned directly or indirectly by each Borrower. 
 6.2
Capacity; Authorization; Non-Contravention. The execution, delivery, and performance by each Obligor of each Loan Document to which it is a party and the consummation of the transactions contemplated thereby (a) are within such
Obligor’s corporate powers, (b) have been duly authorized by all necessary corporate action, (c) do not contravene such Obligor’s constitutional documents or any Applicable Law or Contractual Obligation of such Obligor and
(d) will not result in the creation or imposition of any Lien prohibited by this Agreement. 
 6.3 Governmental
Authorizations; Other Consents. Other than any filing required to be made in connection with the perfection of the Liens under the Security Documents, no consent, order, authorization, or approval or other action by, and no notice to or filing
with, any Governmental Authority (including the GDPA and EMRA) or any other Person is required for the due execution and delivery by each Obligor of each Loan Document to which it is a party, the performance of its obligations thereunder or the
consummation of the transactions contemplated thereby. 
 6.4 Binding Effect. Each Loan Document to which an Obligor is a
party has been duly executed and delivered by such Obligor, and constitutes a legal, valid, and binding obligation of such Obligor, enforceable against it 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. 
  

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 6.5 Financial Statements; No Material Adverse Effect. The Borrowers have delivered to
the Administrative Agent a copy of the audited Consolidated balance sheet and statement of income and of cash flows of the Parent and its Subsidiaries for the Fiscal Year ending December 31, 2008, and such financial statements are accurate and
complete in all material respects and present fairly the financial condition of the Parent and its Subsidiaries in accordance with GAAP. As of the Closing Date, there has been no material adverse change in the business, assets, condition (financial
or otherwise), results of operations or prospects of the Parent and its Subsidiaries, taken as a whole, since December 31, 2008. As of the date of the financial statements most recently delivered pursuant to Section 7.1, there were no
material contingent obligations, liabilities for taxes, unusual forward or long term commitments, or unrealized or anticipated losses of the Borrowers (except as disclosed therein) for which adequate reserves have not been set aside in accordance
with GAAP. Since the date of the financial statements most recently delivered pursuant to Section 7.1, no event or circumstance has occurred that could reasonably be expected to have a Material Adverse Effect. 
 6.6 Disclosure. All written information (excluding projections, estimates and pro forma financial information) furnished by or on
behalf of any Obligor to any Secured Party in connection with this Agreement or any other Loan Document is accurate and complete in all material respects on the date as of which such information was furnished, and does not contain any untrue
statement of material fact or omit to state any material fact necessary to make the statements contained therein not misleading at such time. All projections, estimates and pro forma financial information furnished by or on behalf of any Obligor to
any Secured Party were prepared on the basis of assumptions, data, information, tests, or conditions believed in good faith to be reasonable at the time such projections, estimates, and pro forma financial information were furnished. 
 6.7 Litigation. Except as specified in Item 6.7 of the Disclosure Schedule, to the best of each Obligor’s knowledge after
due inquiry, there is no pending or threatened action or proceeding involving any Obligor 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 any Loan Document. To the best of each Obligor’s knowledge after due inquiry, there is no pending or threatened action or proceeding instituted against any Obligor which seeks to
adjudicate such Obligor as bankrupt or insolvent, or which seeks its liquidation, administration, winding up, reorganization, or which seeks a composition of its debts under any Applicable Law relating to bankruptcy, administration, insolvency,
reorganization or relief of debtors, or which seeks the entry of an order for the appointment of an administrator, administrative receiver, receiver, receiver and manager, liquidator, provisional liquidator, trustee, custodian, conservator or other
similar official for such Obligor or for any substantial part of its property. 
 6.8 No Default. No Obligor is in
default under or with respect to, or a party to, any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing or would result from
the consummation of the transactions contemplated by this Agreement or any other Loan Document. 
 6.9 Ownership of
Properties. Each Obligor has good and indefeasible title to, or valid license, leasehold or other rights in, all of its properties necessary for the conduct of its business as is customary in the oil and gas industry, except for such defects in
title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each property of the Obligor necessary for the ordinary conduct of its business is in good repair, working order and condition (ordinary
wear and tear excepted) and such property has not been materially and adversely affected as a result of any fire, explosion, earthquake, flood, drought, windstorm, hurricane, accident, strike or other labor disturbance, embargo, requisition,
expropriation, cancellation of contracts, permits, or concessions (including any Hydrocarbon License) by a Governmental Authority, riot, activities of armed forces, acts of god or any public enemy. 
  

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 6.10 Indebtedness; Liens. Other than as permitted pursuant to Section 8.1, the
Borrowers and their Subsidiaries have no Indebtedness. Other than as permitted pursuant to Section 8.2, none of the properties of the Borrowers and their Subsidiaries is subject to any Lien. All filings, recordings, registrations, third party
consents and other actions to be taken by the Obligors that are necessary to create and perfect the Liens provided for in the Security Documents have been or will be made, obtained and taken in all relevant jurisdictions in a timely manner, and the
provisions of the Security Documents are effective to create in favor of the Collateral Agent for the benefit of the Secured Parties a Security Interest (subject to the Liens permitted by Section 8.2) on all right, title and interest of each
Obligor in the Collateral described therein. 
 6.11 Compliance with Law. Each Obligor is in compliance with all
Applicable Law, except to the extent non-compliance could not reasonably be expected to have a Material Adverse Effect. 
 6.12
Environmental Compliance. Without prejudice to Section 6.11, each Obligor has obtained all permits under Environmental Law necessary for the exercise of its rights with respect to, and operation of, its properties and the conduct of
its business, and has at all times been and is in compliance with all applicable Environmental Law, except to the extent noncompliance could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. To the best
of each Obligor’s knowledge after due inquiry, none of the present or previously owned or operated properties of such Obligor has been investigated or identified as a potential site for removal, remediation, cleanup, closure, restoration,
reclamation, or other response activity under any Environmental Law or has been the site of any Release of Hazardous Materials from present or past activities. 
 6.13 Insurance. The properties of the Borrowers and their Subsidiaries are insured with financially sound and reputable insurance companies (not being Affiliates thereof), in such amounts, with
such deductibles and covering such risks as are customarily maintained by Persons engaged in the oil and gas exploration and production industry and owning or operating in similar localities where the Borrowers and their Subsidiaries are based.

 6.14 Use of Proceeds. Each Credit Extension will be used by the Borrowers for the purposes described in Section
7.11. The Borrowers are not engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System), and no Credit Extension
will be used to purchase or carry any margin stock in violation of Regulation T, U or X of the Board of Governors of the Federal Reserve System. 
 6.15 Investment Company Act. No Obligor is an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company
Act of 1940, as amended from time to time. 
 6.16 Taxes. All tax returns required to be filed by or on behalf of each
Obligor have been duly filed on a timely basis or appropriate extensions have been obtained except where the failure to so file could not reasonably be expected to have a Material Adverse Effect, and are true, complete and correct. All taxes shown
to be payable on such tax returns or on subsequent assessments with respect thereto have been paid in full on a timely basis, and no other taxes are payable by each Obligor with respect to items or periods covered by such tax returns, except in each
case to the extent of any taxes that are being contested in good faith and for which adequate reserves in accordance with GAAP shall have been set aside. 
  

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 6.17 Pension Plans. Each Obligor is in compliance in all material respects with all
Applicable Law relating to any pension plans or employee benefit plans. Without prejudice to the foregoing, no “reportable event,” as defined in Section 4043 of the Employee Retirement Income Security Act of 1974
(“ERISA”), has occurred or is reasonably expected to occur and no Obligor maintains any employee pension benefit plan which is subject to the provisions of Title IV of ERISA. 
 6.18 Solvency. Both before and after giving effect to any Credit Extension, each Obligor is and will be, together with its
Subsidiaries on a Consolidated basis, Solvent. 
 6.19 Hedge Agreements. Item 6.19 of the Disclosure Schedule
contains a true, correct and complete list of all Hydrocarbon Hedge Agreements, Interest Hedge Agreements and any other Hedge Agreement to which each Borrower and any of its Subsidiaries is a party as of the date hereof. 
 6.20 Eligible Contracts; Hydrocarbon Licenses. Item 6.20 of the Disclosure Schedule contains a true, correct and complete list
of all Eligible Contracts in effect and all Hydrocarbon Licenses to which each Borrower and its Subsidiaries has rights, and a copy of each such duly executed Eligible Contract and Hydrocarbon License, certified by a Responsible Officer of the
relevant Borrower as being true, complete and in full force and effect, has been delivered to the Collateral Agent, together with, (if requested by the Collateral Agent) a certified English language translation thereof to the extent such Eligible
Contract or Hydrocarbon License is not in the English language). 
 6.21 Deposit Accounts. Item 6.21 of the
Disclosure Schedule contains a true, correct and complete list of all deposit accounts, securities accounts and commodities accounts in which each Borrower and any of its Subsidiaries has an interest. The Local Collection Account and the other
deposit accounts set forth on Item 6.21 and identified as accounts maintained in Turkey are the only deposit accounts of any Borrower maintained in Turkey. 
 6.22 Status of Obligations. The Obligations constitute direct, secured, unsubordinated and unconditional obligations of the Borrowers and the Guarantors, ranking at least pari passu with the
claims of all of the Borrowers’ and the Guarantor’s other creditors, except those creditors whose claims are mandatorily preferred under Applicable Law. 
 6.23 Immunity from Suit. Neither the Obligors nor any of their respective assets is entitled to immunity from suit, execution, attachment or other legal process in any jurisdiction. The entry by
each Obligor into this Agreement and the other Loan Documents to which it is party constitutes, and the exercise of its respective rights and performance of and compliance with its respective obligations under this Agreement and the other Loan
Documents will constitute, private and commercial acts done and performed for private and commercial purposes. 
  

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 ARTICLE 7 
 AFFIRMATIVE COVENANTS 
 Each Obligor covenants with the Secured Parties that,
until all Commitments have been terminated and all Obligations (other than contingent Obligations not then due and payable) have been paid in full, it shall, and shall cause each of its Subsidiaries to, perform the obligations in this ARTICLE
7. 
 7.1 Financial Statements; Reporting. 
 (a) Annual Financial Statements. As soon as available, but in any event within ninety (90) days after the end of each Fiscal
Year, commencing with the Fiscal Year ending December 31, 2009, the Borrowers shall deliver to the Administrative Agent (with sufficient copies for each Lender) a copy of (i) the audited consolidated balance sheet of the Parent and the
related audited consolidated statements of income and of cash flows for such Fiscal Year and (ii) the audited Combined balance sheet of the Borrowers (which shall include their Subsidiaries) as at the end of such Fiscal Year and the related
audited Combined statements of income and of cash flows for such Fiscal Year, in the case of each of (i) and (ii) setting forth in comparative form the figures for the previous Fiscal Year, reported on without a going concern or like
qualification or exception, or qualification arising out of the scope of the audit, by KPMG LLP or another “Big Four” US firm of independent certified public accountants otherwise reasonably acceptable to the Administrative Agent.

 (b) Quarterly Financial Statements. As soon as available, but in any event not later than forty-five (45) days
after the end of each of the first three (3) Fiscal Quarters of each Fiscal Year, commencing with the Fiscal Quarter ending March 31, 2010, the Borrowers shall deliver to the Administrative Agent (with sufficient copies for each Lender) a
copy of (i) the unaudited consolidated balance sheet of the Parent and the related unaudited consolidated statements of income and of cash flows for such Fiscal Quarter and the portion of the Fiscal Year through the end of such Fiscal Quarter
and (ii) the unaudited Combined balance sheet of the Borrowers (which shall include their Subsidiaries) as at the end of such Fiscal Quarter and the related unaudited Combined statements of income and of cash flows for such Fiscal Quarter and
the portion of the Fiscal Year through the end of such Fiscal Quarter, in the case of each of (i) and (ii) setting forth in comparative form the figures for such Fiscal Quarter in the previous Fiscal Year, certified by a Responsible
Officer of the Borrowers as being fairly stated in all material respects (subject to normal year-end audit adjustments and the absence of footnotes). 
 (c) GAAP Reporting. All financial statements required to be delivered pursuant to Section 7.1(a) and Section 7.1(b) shall be complete and correct in all material respects and shall be
prepared in reasonable detail and in accordance with GAAP applied consistently throughout the periods reflected therein. 
 (d)
Compliance Certificate. Concurrently with the delivery of the financial statements pursuant to Section 7.1(a) and Section 7.1(b), the Borrowers shall deliver to the Administrative Agent (with sufficient copies for each Lender) a
Compliance Certificate containing the information and calculations necessary for determining compliance by the Borrowers and their Subsidiaries with the provisions of Section 8.17 and certifying as to the truth and correctness in all material
respects of the representations and warranties in each Loan Document (unless stated to relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date)
and that no Default or Event of Default shall have then occurred and be continuing. 
  

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 (e) Reporting. Unless the same shall be publicly available, promptly after the same
becomes available, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders of the Parent, and copies of all annual, regular, periodic and special reports and registration statements which
the Parent may file or be required to file with the Canadian Securities Administrators or the United States Securities and Exchange Commission under Applicable Law. 
 (f) Local Collection Account. Not later than ten (10) days after the end of each calendar month, the Borrowers shall deliver to the Administrative Agent (i) a statement from the Local
Collection Account Bank displaying, as of the last day of such calendar month, the overall balance in each Local Collection Account and all credits and debits in respect of such Local Collection Account in such calendar month, (ii) a statement,
prepared by the Borrowers, detailing the aggregate amount withdrawn by the Borrowers in such calendar month, and (iii) a statement as to the purposes for which such withdrawals were applied by the Borrowers, in each case certified by a
Responsible Officer of the Borrowers as being true, correct and complete. 
 (g) Other Information. Promptly upon request
therefor, any other information regarding the business, assets (including Hydrocarbon Interests in Turkey), condition (financial or otherwise), results of operations or prospects of the Borrowers and their Subsidiaries or any other Obligor, to the
extent such information is reasonably required by the Administrative Agent or the Majority Lenders in connection with their assessment of the ability of any Obligor to comply with the terms of this Agreement and any other Loan Document. All costs
and expenses incurred in connection with the provision of such information shall be borne by the Borrowers. 
 7.2
Information on Hydrocarbon Interests. 
 (a) Reserves Reports. 
 (i) Independent Reserves Report. The Borrowers shall deliver to the Technical Agent an Independent Reserves Report in
accordance with Section 3.2(a). 
 (ii) Internal Reserves Reports. The Borrowers shall deliver to
the Technical Agent an Internal Reserves Report in accordance with Section 3.2(b). 
 (iii) Accuracy of
Reserves Reports. The Borrowers hereby undertake to ensure that the information contained in each Internal Reserves Report and any other information delivered in connection therewith is true and correct in all material respects. 
 (b) Hydrocarbon Production Forecast. As soon as available, but in any event no later than twenty (20) days after the end of each
month, commencing with the month ending January 31, 2010, the Borrowers shall deliver to the Technical Agent and each Lender that requests a copy thereof, a Hydrocarbon production forecast in form and substance reasonably satisfactory to the
Technical Agent. Such production forecast shall contain the Borrowers’ good faith projections for production volumes, revenues, expenses, taxes and Capital Expenditure in respect of the Hydrocarbon Interests for the immediately following twelve
(12) month period, and the underlying assumptions and data used in preparing the same. 
  

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 (c) Hydrocarbon Production Report. As soon as available but in any event no later
than twenty (20) days after the end of each month, commencing with the month ending January 31, 2010, the Borrowers shall deliver to the Technical Agent and each Lender that requests a copy thereof, a Hydrocarbon production report in form
and substance reasonably satisfactory to the Technical Agent. Such production report shall contain information regarding the production volumes, revenues, expenses, taxes and Capital Expenditure in respect of the Hydrocarbon Interests for the Fiscal
Quarter most recently ended. 
 (d) Field Development Plan / Annual Budget. Concurrently with the delivery of the
financial statements pursuant to Section 7.1(a), the Borrowers shall deliver to the Technical Agent (with sufficient copies for each Lender) a field development plan and annual budget (the “Operating Budget”) in respect of the
business and operations of the Borrowers and their Subsidiaries for the twelve (12) month period commencing from the end of the previous Fiscal Year, such Operating Budget to contain the Borrowers’ good faith estimates relating to
(i) general corporate overhead and administrative expenses, (ii) Capital Expenditure in respect of Hydrocarbon Interests, (iii) Hydrocarbons to be sold under Eligible Contracts, (iv) EBITDAX and (v) taxes and royalties for
such period, in each case broken down on a calendar month basis, as well as the underlying assumptions and data used in preparing the same, such Operating Budget to be otherwise in form and substance reasonably satisfactory to the Technical Agent.

 (e) Site Visits. The Borrowers shall, and shall cause each of their Subsidiaries to, permit representatives of each
Agent (at their sole risk) to visit and inspect any location that is the subject of a Hydrocarbon License upon giving no less than twenty (20) Business Days’ prior written notice and to discuss the business, assets (including the
Hydrocarbon Interests in Turkey), condition (financial or otherwise), results of operations or prospects of the Borrowers and any of their Subsidiaries, with any applicable officers and employees of the Borrowers who participate in such site visits
and, consistent with the provisions of Section 7.10, to follow up with its certificated public accountants. The Borrowers shall, and shall cause each of their Subsidiaries to, bear all costs and expenses incurred by such Agent in connection
with any such visit, inspection or examination; provided, that so long as no Event of Default shall have occurred and be continuing, the Borrowers shall not be obliged to bear such costs and expenses for more than one (1) such visit, inspection
or examination in any calendar year. 
 (f) Eligible Contracts. No later than sixty (60) days before the expiry of
any Eligible Contract, the Borrowers shall notify the Collateral Agent, the Technical Agent and the Lenders as to whether or not it proposes to renew such Eligible Contract and, if so, the material terms on which it proposes to effect such renewal.
No later than fourteen (14) days prior to executing the definitive documentation for any renewed Eligible Contract, the Borrowers shall provide the Technical Agent, the Collateral Agent and the Lenders with a copy thereof (and if such
documentation is not in the English language, a certified English language translation thereof), together with any other information relating thereto as the Collateral Agent or the Technical Agent may reasonably request. 
  

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 (g) Other Reports. Each Borrower shall, and shall cause each of its Subsidiaries to,
deliver the reports required pursuant to Article 63 of the Petroleum Communiqué published in the Turkish Official Gazette dated July 17, 1989 (No. 20224). 
 7.3 Notices. The Borrowers shall, through the Administrative Agent, furnish to the Secured Parties the following notices within the time periods specified below: 
 (a) notice of any Default, Event of Default or default under, termination of, entry into or renewal of, any Hydrocarbon License, Eligible
Contract or Material Contract, as soon as possible after the occurrence thereof and in any event within five (5) Business Days after any Borrower or any other Obligor knows of such occurrence; 
 (b) notice of any proposed amendment, restatement, supplement, waiver or other modification to, the terms contained in any Hydrocarbon
License, Eligible Contract or Material Contract, as soon as possible and in any event within five (5) Business Days after any Borrower or any other Obligor knows of such proposal; 
 (c) notice of the commencement of, or any material adverse development with respect to, any litigation, investigation or proceeding involving
an Obligor, that if adversely determined, could reasonably be expected to have a Material Adverse Effect, as soon as possible and in any event within five (5) Business Days after any Borrower or any other Obligor knows of such occurrence;

 (d) notice of the receipt of any summons, order or citation concerning any violation or alleged violation of Environmental Law
involving an Obligor that could reasonably be expected to have a Material Adverse Effect, or which seeks to impose any Environmental Liability on an Obligor that could reasonably be expected to have a Material Adverse Effect, as soon as possible and
in any event within five (5) Business Days after any Borrower or any other Obligor receives any such summons, order or citation; 
 (e) notice of any other development or event that has had or could reasonably be expected to have a Material Adverse Effect, as soon as possible and in any event within five (5) Business Days after any Borrower or any other Obligor
obtains knowledge thereof; 
 (f) notice of any incident, event or circumstance that could reasonably be expected to result in:

 (i) the production, recovery or transportation of Hydrocarbons with respect to any Hydrocarbon Interest being
suspended or interrupted for a period of five (5) consecutive days or more; 
 (ii) material physical damage
to any plant or equipment being used in the production, recovery or transportation of Hydrocarbons with respect to any Hydrocarbon Interest; 
 (iii) any amendment, restatement, supplement or modification to the most recent Operating Budget; or 
 (iv) any enlargement of, or reduction in, the percentage interest of any Borrower or any of its Subsidiaries in any Hydrocarbon Interest, 
  

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 in each case, as soon as possible and in any event within five (5) Business Days after
any Borrower or any other Obligor obtains knowledge thereof; 
 (g) within thirty (30) days prior to renewal thereof,
renewal notices in respect of all insurance policies required to be maintained by any Borrower or any of its Subsidiaries pursuant to Section 7.8; and 
 (h) notice of the occurrence of any event that could reasonably be expected to give rise to an obligation to make a mandatory prepayment pursuant to Section 2.5(b), as soon as possible and in any
event within five (5) Business Days after any Borrower or any other Obligor knows of such occurrence. 
 Each notice
pursuant to this Section 7.3 shall be accompanied by a statement of a Responsible Officer of the Borrowers setting forth details of the occurrence referred to therein and stating what action each Borrower or the relevant Obligor proposes
to take with respect thereto. In addition, each notice delivered pursuant to this Section 7.3 shall also include, to the extent requested by the Administrative Agent, copies of all material documentation relating to the applicable
occurrence or event. 
 7.4 Payment of Obligations. Each Obligor shall pay, discharge or otherwise satisfy at or before
maturity or before they become delinquent, as the case may be, all its material obligations of whatever nature, except to the extent any amount or validity thereof is being contested in good faith and for which adequate reserves in accordance with
GAAP shall have been set aside. 
 7.5 Preservation of Existence. Except as otherwise expressly permitted under this
Agreement, each Obligor shall preserve, renew and keep in full force and effect its existence and take all reasonable action to maintain all rights necessary or desirable in the normal conduct of its business. 
 7.6 Compliance with Contractual Obligations and Law. Each Obligor shall comply with its Contractual Obligations (including its
obligations under each Hydrocarbon License, Eligible Contract and Material Contract) and all Applicable Law (including all Environmental Law and, to the extent relevant, under each Hydrocarbon License), except to the extent that failure to comply
therewith could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 7.7
Maintenance of Properties. 
 (a) Each Obligor shall maintain, preserve, protect and keep all of its and their respective
properties (other than properties that such Obligor determines in its commercially reasonable, good faith judgment to be obsolete, worn out, depleted or economically inefficient) in good repair, working order and condition (ordinary wear and tear
excepted), and make necessary repairs, renewals and replacements so that the business carried on by such Obligor may be properly conducted at all times; 
 (b) The Borrowers shall, and shall ensure that their Subsidiaries will, maintain in effect Eligible Contracts in respect of all Hydrocarbons produced pursuant to the Hydrocarbon Licenses; and 

(c) Subject to Section 8.13, the Borrowers shall at all times be the licensees under the Hydrocarbon Licenses. 
  

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 7.8 Maintenance of Insurance. Each Obligor shall maintain insurance in respect of its
business with financially sound and reputable insurance companies (not being Affiliates of any Obligor), in such amounts, with such deductibles and covering such risks as are customarily maintained by Persons in a similar business, operating in
similar localities to the Obligor. Without limiting the foregoing, all such insurance policies shall name the Collateral Agent as loss payee in the case of property insurance and designate the Collateral Agent as an additional insured in the case of
liability insurance and if requested by the Collateral Agent) provide that no cancellation or modification of the policies will be made without thirty (30) days’ prior written notice to the Collateral Agent and be in addition to any
requirements to maintain specific types of insurance contained in the other Loan Documents. 
 7.9 Books and Records;
“Know-Your-Client” Information. 
 (a) Each Borrower shall, and shall ensure that each of its Subsidiaries will,
maintain proper books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied shall be made of all financial transactions and matters involving the assets and business of the Borrower or such
Subsidiary, as the case may be. 
 (b) Each Obligor shall promptly provide the Administrative Agent from time to time upon
request with all documentation and other information required by any Lender or bank regulatory authority under applicable “know-your-customer” and anti-money laundering statutes, rules and regulations, including without limitation the USA
PATRIOT Act, the United Kingdom Proceeds of Crime Act 2002 and the United Kingdom Money Laundering Regulations 2003. 
 7.10
Inspection Rights. 
 (a) General. Without prejudice to Section 7.2(e), each Borrower shall, and shall
ensure that each of its Subsidiaries will, permit representatives and independent contractors of each Agent or any Lender to visit and inspect any of its properties to examine its corporate, financial and operating records, and make copies thereof
or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the expense of such Borrower and at such reasonable times during normal business hours and as often as
may be reasonably desired upon reasonable advance notice to such Borrower (but, so long as no Event of Default shall have occurred and be continuing, no more than twice in any calendar year); provided that if an Event of Default has occurred and is
then continuing, each Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours. 
 (b) Hydrocarbon Interests. If the Majority Lenders at any time determine that the production, recovery or transportation of
Hydrocarbons with respect to any Hydrocarbon Interest may be impeded or prejudiced in a manner that could reasonably be expected to have a Material Adverse Effect, they shall be entitled to obtain such reports, conduct such investigations and
consult with such professional advisors as they may reasonably require (including, without limitation, appointing an independent environmental expert, insurance advisor or legal advisors) with a view to assessing the ability of the Borrowers and any
other Obligor to comply with the terms of this Agreement and any other Loan Document. All costs and expenses incurred by the Majority Lenders in connection with such reports, investigations or consultations shall be borne by the Borrowers; provided
that, if no Event of Default has occurred or is then continuing, the Borrowers shall only bear such costs and expenses up to an aggregate amount not to exceed US$50,000 in each Fiscal Year. Each Borrower shall, and shall ensure that each of its
Subsidiaries will, co-operate fully with any Person preparing such report, or carrying out such investigation. 
  

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 7.11 Use of Proceeds. The Borrowers shall apply the proceeds of each Credit Extension
solely as follows: 
 (a) for the working capital, general and administrative purposes of the Borrowers and their
Subsidiaries provided that general and administrative expenses will be funded from direct or indirect capital contributions from the Parent until the Administrative Agent and Technical Agent are reasonably satisfied that the Borrowing Base supports
the funding of such expenses; 
 (b) to finance development, production, storage, marketing, processing and/or
transportation activities of the Borrowers and their Subsidiaries in respect of Hydrocarbon Interests in Turkey; and 
 (c) to pay the closing costs and fees owed by any Obligor to each Arranger, each Agent, the LC Issuer and the Lenders in connection with the transactions contemplated by this Agreement and the Loan Documents. 
 7.12 Additional Collateral; Additional Subsidiaries; Further Assurances, etc. 
 (a) New Property. With respect to any Hydrocarbon Interests acquired or owned after the Closing Date by any Borrower or any of its
Subsidiaries (including, without limitation, any Eligible Contract, any receivables payable under such Eligible Contract, any property insurance policy and any proceeds payable thereunder) as to which the Collateral Agent does not have a Security
Interest and in respect of which such Borrower or such Subsidiary is legally entitled to grant a Security Interest to the Collateral Agent, such Borrower or such Subsidiary shall promptly notify the Collateral Agent in writing thereof, and if
requested by the Collateral Agent: 
 (i) execute and deliver to the Collateral Agent such additional Security
Documents and/or amendments to the Security Documents or such other documents (including a certified English language translation, to the extent such documents are not in the English language) as the Collateral Agent deems necessary or advisable to
grant to the Collateral Agent, a Security Interest in such Hydrocarbon Interests; 
 (ii) take all actions
necessary or reasonably requested by the Collateral Agent, to grant in favor of the Collateral Agent a Security Interest in such Hydrocarbon Interests; and 
 (iii) deliver to the Collateral Agent customary legal opinions relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the
Collateral Agent. 
 (b) New Subsidiaries. With respect to any new Subsidiary created or acquired after the Closing Date
by any Borrower or any of its Subsidiaries, such Borrower or such Subsidiary shall promptly: 
 (i) execute and
deliver to the Collateral Agent such amendments to the Security Documents or such other documents as the Collateral Agent deems necessary or advisable to grant in favor of the Collateral Agent, a Security Interest in all Equity Interests of such new
Subsidiary that are owned by such Borrower or such Subsidiary; 
  

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 (ii) deliver to the Collateral Agent the certificates (if any) representing
such Equity Interests, together with undated stock or other analogous powers, in blank, executed and delivered by an Authorized Officer of such Borrower or such Subsidiary, as the case may be; 
 (iii) cause such new Subsidiary to become a party to this Agreement as a Subsidiary Guarantor, and take such actions as the
Collateral Agent deems necessary or advisable to grant in favor of the Collateral Agent, a Security Interest in the property of such new Subsidiary in respect of which such new Subsidiary is legally entitled to grant a Security Interest to the
Collateral Agent; 
 (iv) deliver to the Collateral Agent a certificate of the Secretary or an Assistant
Secretary of such new Subsidiary as to the matters set forth in Section 5.1(k) (together with appropriate attachments) and a copy of a good standing certificate for such new Subsidiary (or, if such concept does not exist under the laws of
such new Subsidiary’s jurisdiction of organization, a reasonable equivalent to the extent available or practicable), dated a date reasonably acceptable to the Collateral Agent; and 
 (v) deliver to the Collateral Agent customary legal opinions relating to the matters described above, which opinions shall be
in form and substance, and from counsel, reasonably satisfactory to the Collateral Agent. 
 (c) Viking Equipment. In the
event ownership of any Viking Equipment is transferred to any Borrower or any Subsidiary thereof, (i) such Viking Equipment shall be free and clear of all Liens upon such transfer, (ii) such Viking Equipment shall be located in Turkey and
(iii) such Borrower or Subsidiary will (1) cause such Viking Equipment to be subject to a commercial enterprise pledge in favor of the Collateral Agent under the laws of Turkey which will be registered with the applicable Trade Registry in
Turkey within thirty (30) days of the effective date of such transfer of ownership and (y) if a subsequent filing becomes necessary, within thirty (30) days after written request from the Collateral Agent to do so and (2) in each
case (1)(x) and (1)(y), the Lenders shall have received a satisfactory opinion of their Turkish counsel as to the duly perfected security interest in and Lien on the collateral thereunder. 
 (d) Further Assurances. Each Obligor shall, after notice thereof from any Agent, do all such further acts and things and execute and
deliver all such further documents as shall be reasonably requested by such Agent in order to give effect to this Agreement, the Security Documents and any other Loan Document and shall cause the same to be registered wherever, in the opinion of
such Agent, such registration may be required or advisable to preserve, perfect or validate or continue the perfected status of any deemed or other Lien granted pursuant to a Security Document or to enable each Lender to exercise and enforce its
rights hereunder with respect to such deemed or other Lien. In the case of the applicable commercial enterprise pledge agreements, (i) the Obligors will ensure that (x) each such commercial enterprise pledge agreement pursuant to which
Equipment of a Borrower shall be pledged will be duly executed and submitted for registration with the applicable Trade Registry in Turkey within twenty (20) days of the Closing Date and (y) if a subsequent filing becomes necessary, within
twenty (20) days after written request from the Collateral Agent to do so and (ii) in each case (i)(x) and (i)(y), the Lenders shall have received a satisfactory opinion of their Turkish counsel as to the duly perfected security interest
in and Lien on the collateral thereunder. In the event that such a pledge is not capable of being registered due to the actions of the applicable Governmental Authorities

  

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(including the GDPA), and a written evidence of the refusal decision obtained from the applicable Governmental Authorities (including the GDPA) is provided to the Lenders, then the Obligors shall
be released from their obligation to establish such a commercial enterprise pledge. 
 (e) Turkey License Pledge
Agreement. If, due to either a change in market practice or GDPA practice or policy or the introduction of or any change in or in the interpretation of any Applicable Law or guidelines or requests of the GDPA after the Closing Date, the GDPA
accepts for registration pledge agreements in respect of the rights of debtors under hydrocarbon licenses, the Borrowers will enter into the Turkey License Pledge Agreement (or such relevant agreement in the form required by the applicable
provisions of the Applicable Law at such time) and provide written evidence which shall be obtained from the GDPA that the Agreement has been submitted to be registered with the GDPA within sixty (60) days of such change. 
 (f) Change of Registered Branch Name. On or before January 31, 2010, Talon shall submit for registration with the GDPA the change
of name from “Energy Operations Turkey, LLC-Ankara, Turkey Branch” to “Talon Exploration, Ltd.-Ankara, Turkey Branch”. To the extent necessary or desirable, in the reasonable discretion of the Administrative Agent, any
Hydrocarbon License registered in the name of Energy Operations Turkey, LLC (formerly a Delaware limited liability company and continued as Talon) shall be modified, or Talon shall take any action necessary or desirable, in the reasonable discretion
of the Administrative Agent, to properly reflect Talon as the holder thereof, either directly or through its Ankara, Turkey Branch. 
 7.13 Collection Accounts. 
 (a) Establishment. The Borrowers shall (or shall cause their Subsidiaries to)
establish and maintain the following deposit accounts on or before the Closing Date: 
 (i) the Local Collection
Account; and 
 (ii) the Offshore Collection Account. 
 The Borrowers shall not open any deposit account in replacement of any Collection Account except with the Collateral
Agent’s prior written consent, it being acknowledged and agreed that such consent may be conditioned upon the Collateral Agent’s receipt of a deposit account control agreement and/or such other Security Document as the Collateral Agent may
require in respect of the proposed replacement deposit account. In addition, unless a Security Interest exists with respect to each such account no later than three (3) Business Days following its opening, no Borrower shall, nor permit any of
its Subsidiaries to, open or maintain any deposit account, securities account or commodity account with any Person except for the accounts specified in Item 6.21 of the Disclosure Schedule provided that no Borrower shall open or
maintain a deposit account in Turkey other than the Local Collection Account and the accounts specified in Item 6.21. 
 (b) Payments into Collection Accounts. 
 (i) Pursuant to instruction letters in form and
substance satisfactory to the Collateral Agent, the Borrowers shall (or shall cause their Subsidiaries to) instruct each Eligible Offtaker via notary public or registered mail to deposit all Turkish Lira denominated amounts due to the Borrowers and
any of their Subsidiaries under each Eligible Contract in the

  

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applicable Local Collection Account, submit evidence to the Administrative Agent that such instruction has been served as stated above, and shall use its best efforts to ensure that each such
Eligible Offtaker provides written acknowledgement of its agreement to do so in form and substance satisfactory to the Collateral Agent. 
 (ii) Pursuant to instruction letters in form and substance satisfactory to the Collateral Agent, the Borrowers shall (or shall cause their Subsidiaries to) instruct each Eligible Offtaker via notary
public or registered mail to deposit all Dollar denominated amounts due to the Borrowers and any of their Subsidiaries under each Eligible Contract in the applicable Offshore Collection Account, submit evidence to the Administrative Agent that such
instruction has been served as stated above, and shall use its best efforts to ensure that each such Eligible Offtaker provides written acknowledgement of its agreement to do so in form and substance satisfactory to the Collateral Agent. 

(c) No Operational Lock-Up Event. If so requested, the Collateral Agent shall, on a weekly basis, transfer all amounts standing to
the credit of a Collection Account into another deposit account designated by the Borrowers by way of a written request (or written standing instruction). Unless the Collateral Agent otherwise agrees, all such transfers shall occur on or after 11:00
a.m. (London, England time) on each Monday (or if such day is not a Business Day, the immediately following Business Day), and all costs and expenses incurred by the Collateral Agent in connection with such transfers shall be borne by the Borrowers;
provided that no such transfer shall be made if an Operational Lock-Up Event or Event of Default has then occurred and is continuing, or could reasonably be expected to result therefrom. 
 (d) Operational Lock-Up Event. If an Operational Lock-Up Event or Event of Default has occurred and is continuing, the Borrowers shall
cease to have the right to request any transfer from any Collection Account and no amounts standing to the credit of any Collection Account may be withdrawn except with the prior written consent of the Collateral Agent and the Lenders; provided that
for each calendar month during the continuation of a Borrowing Base Deficiency, the Collateral Agent may permit the Borrowers to withdraw an amount not exceeding 110% of their general corporate overhead and administrative expenses for such month as
set forth in the most recent Operating Budget, and provided further that the Collateral Agent may, in its sole and absolute discretion, upon receipt of tax invoices or other supporting documentary evidence to its reasonable satisfaction, permit
withdrawals for the purpose of paying royalties or other amounts due to the applicable Governmental Authority in respect of any Hydrocarbon License or any third party (not being an Obligor) under any farm-in, farm-out, production sharing agreement
or analogous contractual arrangement in respect of the Hydrocarbon Licenses. 
 (e) Resolution of Operational Lock-Up
Event. If (i) an Operational Lock-Up Event has occurred, and thereafter a sixty (60) day period shall have passed during which no Default or Event of Default shall have occurred and any Borrowing Base Deficiency giving rise to such
Operational Lock-Up Event shall have been cured or (ii) an Event of Default has occurred, but is thereafter remedied or waived, then in the case of each of (i) and (ii) above, any amounts standing to the credit of any Collection
Account may again be transferred in accordance with Section 7.13(c) as if no Operational Lock-Up Event or Event of Default had occurred in the first place. 
  

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 (f) Collection Accounts as Collateral. For the avoidance of doubt, each Borrower
acknowledges and agrees that the Collection Accounts and all amounts standing to the credit thereof from time to time shall constitute Collateral for the payment in full of the Obligations. 
 7.14 Hydrocarbon Hedge Agreement. At least one of the Borrowers shall maintain a Designated Hedge Agreement providing commodity price
support in respect of at least 30% of the anticipated production volumes attributable to Proved Developed Producing Reserves (as determined by the Technical Agent with reference to the most recent Independent Reserves Report delivered to the
Technical Agent under Section 3.2(a)(ii)) and shall maintain such commodity price support at all times from the initial delivery of the Independent Reserves Report under Section 3.2(a)(ii) until the Scheduled Maturity Date,
such commodity price support and such Designated Hedge Agreement to be otherwise satisfactory to the Majority Lenders. If required by the Majority Lenders, the Borrowers shall promptly execute a Security Document granting a Security Interest in
respect of all of its right, title and interest in such Designated Hedge Agreement. 
 7.15 Status of Obligations. The
Obligors shall ensure that the Obligations constitute direct, secured, unsubordinated and unconditional obligations of the Borrowers and the Guarantors, ranking at least pari passu with the claims of all of each Borrower’s and each
Guarantor’s other creditors, except those creditors whose claims are mandatorily preferred under Applicable Law. 
 7.16
Designated Hedge Agreement. A Designated Hedge Agreement shall have been duly executed and delivered by the parties thereto on or before December 23, 2009, providing commodity price support at all times from the date entered into until
the date of initial delivery to the Technical Agent of the Independent Reserves Report under Section 3.2(a)(ii), in respect of anticipated production volumes attributable to Proved Developed Producing Reserves at (i) 800 bbl/day for
2010, (ii) 700 bbl/day for 2011 and (iii) 600 bbl/day for 2012, such agreement to be in form and substance satisfactory to the Majority Lenders and, if required by the Majority Lenders, a Security Document shall have been executed granting
a Security Interest in respect of all of the relevant Borrower’s right, title and interest in such Designated Hedge Agreement. 
 7.17 Local Blocked Account. Upon or before establishing a Collection Account with the Local Collection Account Bank in accordance with Section 7.13(a) for the purpose of receiving Turkish Lira-denominated payments under
any Eligible Contract, Talon shall have closed the Local Blocked Account and transferred any balances therein at the direction of the Collateral Agent. 
 ARTICLE 8 
 NEGATIVE COVENANTS 
 Each Obligor covenants with the Secured Parties that, until all Commitments have been terminated and all Obligations (other than contingent
Obligations not then due and payable) have been paid in full, it shall, and shall cause each of its Subsidiaries to, perform the obligations in this ARTICLE 8. 
 8.1 Indebtedness. Each Borrower shall not, and shall not permit any of its Subsidiaries to, create, issue, incur, assume, become liable in respect of or permit to exist any Indebtedness, except:

 (a) Indebtedness in respect of the Obligations; 
 (b) Indebtedness evidencing the deferred purchase price of any newly acquired specific fixed asset consisting of personal property, or incurred to finance all or part of the acquisition of equipment of
such Borrowers or any of its Subsidiaries (pursuant

  

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to purchase money security interest Indebtedness or otherwise, whether owed to the seller or a third party); provided that such Indebtedness is incurred within ninety (90) days of the
acquisition of such property and in respect of Capital Lease Obligations; and provided further that the aggregate amount of all Indebtedness outstanding pursuant to this clause (b) shall not at any time exceed $5,000,000 (or, if denominated in a
non-Dollar currency, the Dollar Equivalent thereof calculated as of the date of such acquisition); 
 (c) Indebtedness pursuant
to any Hydrocarbon Hedge Agreement or Interest Hedge Agreement (in each case, not being a Designated Hedge Agreement); provided that such Hedge Agreement otherwise complies with the terms of Section 8.14; 
 (d) Indebtedness of an Obligor to another Obligor that is subordinated in priority and right of payment to the Obligations on terms
reasonably satisfactory to the Majority Lenders; 
 (e) Indebtedness of the Borrowers with respect to standby letters of credit,
bank guarantees, indemnities, sureties or bonds provided to any Governmental Authority or other Person and assuring payment of contingent liabilities of the Borrowers and their Subsidiaries in connection with the operations of their respective
businesses or the operation of the Hydrocarbon Interests, including with respect to plugging, facility removal, environmental remediation and abandonment of its Hydrocarbon Interests, in an aggregate amount not to exceed $2,500,000 (or, if
denominated in a non-Dollar currency, the Dollar Equivalent thereof calculated as of the date of such incurrence) at any time; and 
 (f) Indebtedness described in Item 8.1(f) of the Disclosure Schedule. 
 For the avoidance of doubt, nothing in
this Section 8.1 shall restrict the Parent or its Subsidiaries (other than the Borrowers and their respective Subsidiaries) from issuing, incurring, assuming, or becoming liable in respect of any Indebtedness. 
 8.2 Liens. Each Borrower shall not, and shall not permit any of its Subsidiaries to, create, assume, incur, or permit to exist any
Lien upon any of its property (including Hydrocarbon Interests, accounts receivable and Equity Interests in Subsidiaries or other Persons), whether now owned or hereafter acquired, except: 
 (a) Liens securing payment of the Obligations; 
 (b) purchase money Liens securing Indebtedness of the type permitted under Section 8.1(b) incurred to finance the acquisition of specific fixed assets or equipment; provided that (i) such Lien
is created within sixty (60) days of the incurrence of such Indebtedness, (ii) the principal amount of the Indebtedness secured thereby does not exceed the lesser of the cost or the fair market value of such fixed assets or equipment,
(iii) such Lien encumbers only the fixed assets or equipment that are financed by such Indebtedness and does not attach to any other assets of such Borrower or any of its Subsidiaries and (iv) the amount of Indebtedness secured thereby is
not increased; 
 (c) Liens for taxes, assessments or other governmental charges or levies not at the time delinquent (provided
that no foreclosure, sale or other enforcement proceedings in respect thereof have been initiated) or that are being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have
been set aside; 
  

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 (d) carrier’s, warehousemen’s, mechanics’, materialmen’s,
repairmen’s, landlords’ or other similar Liens arising by operation of law in the ordinary course of business in respect of obligations that are not yet due or that are being diligently contested in good faith by appropriate proceedings
and for which adequate reserves in accordance with GAAP shall have been set aside; 
 (e) Liens in favor of operators and
non-operators under joint operating agreements arising in the ordinary course of business to secure amounts owing by such Borrower or any of its Subsidiaries that are not yet due or that are being diligently contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with GAAP shall have been set aside; 
 (f) obligations of such
Borrower or any of its Subsidiaries in respect of royalty payments, overriding royalty payments, net profit interests, production payments, reversionary interests, calls on production, preferential purchase rights and other deductions from the
proceeds of Hydrocarbon production, that do not secure Indebtedness for borrowed money and that are taken into account in computing the net revenue interests and working interests of such Borrower or any of its Subsidiaries warranted in the Security
Documents; 
 (g) Liens created by, or arising under any Applicable Law (in contrast with Liens voluntarily granted) in the
ordinary course of business of such Borrower or any of its Subsidiaries in connection with workers’ compensation, unemployment insurance, employers’ health tax or other social security or statutory obligations that secure amounts that are
not yet due or that are being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside; 
 (h) Liens arising under operating agreements, unitization and pooling agreements and orders, farm-out agreements, gas balancing agreements
and other related agreements, in each case that are customary in the oil, gas and mineral production business and that are entered into by such Borrower or any of its Subsidiaries in the ordinary course of business that are taken into account in
computing the net revenue interests and working interests of such Borrower or any of its Subsidiaries warranted in the Security Documents, to the extent that any such Lien does not materially detract from the value of the property encumbered by such
Lien or materially impair the use thereof in the operation of the business of such Borrower or any of its Subsidiaries; 
 (i)
Liens arising pursuant to deposits to secure the performance of bids, trade contracts, Hydrocarbon Licenses, or performance bonds and other obligations of a like nature incurred in the ordinary course of business of such Borrower or any of its
Subsidiaries; 
 (j) bankers’ Liens, rights of setoff and other similar Liens existing solely with respect to cash and
temporary investments on deposit in one or more accounts maintained by such Borrower or any of its Subsidiaries (other than the Collection Accounts), in each case granted in the ordinary course of business in favor of the bank or financial
institution with which such accounts are maintained, securing amounts owing to such bank or financial institution with respect to cash management and operating account arrangements; provided that in no case shall any such Liens secure (either
directly or indirectly) the repayment of any Indebtedness; 
 (k) judgment Liens in existence for less than forty-five
(45) days after the entry thereof or with respect to which execution has been stayed or the payment of which is covered in full (subject to a customary deductible) by insurance maintained with responsible insurance companies and that do not
otherwise result in an Event of Default under Section 9.1(g); 
  

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 (l) easements, rights-of-way, zoning restrictions and other similar encumbrances, and minor
defects in the chain of title that are customarily accepted in the oil and gas financing industry, none of which materially detracts from the value of the property encumbered thereby or materially impairs the use thereof in the operation of the
business of such Borrower or any of its Subsidiaries; 
 (m) Liens, if any, granted in favor of the LC Issuer to cash
collateralize or otherwise secure the obligations of an LC Participant that is a Delinquent Lender to fund risk participations hereunder; and 
 (n) Liens specified in Item 8.2 of the Disclosure Schedule. 
 8.3 Agreements
Restricting Liens. Except as permitted by this Agreement, each Borrower shall not, and shall not permit any of its Subsidiaries to, enter into or suffer to exist or become effective any agreement that prohibits or limits the ability of such
Borrower or such Subsidiary to create, incur, assume or suffer to exist any Lien upon any of its property, whether now owned or hereafter acquired, other than this Agreement and the Loan Documents and any other agreement giving rise to a Lien
permitted under Section 8.2(b), or which requires the consent of or notice to other Persons in connection therewith. 
 8.4 Merger or Consolidation; Fundamental Changes. Each Borrower shall not, and shall not permit any of its Subsidiaries to, enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution) or otherwise change its corporate form, except that (a) any Borrower may be merged or consolidated with or into another Borrower, (b) any Subsidiary of such Borrower may be merged or consolidated with or into
the Borrower (provided that the Borrower shall be the continuing or surviving Person), (c) any Subsidiary of such Borrower may be merged or consolidated with or into a Subsidiary Guarantor, and (d) the Reorganization (as defined in
Section 12.22) shall be permitted on the terms set forth in Section 12.22 hereof. 
 8.5 Disposals. Each
Borrower shall not, and shall not permit any of its Subsidiaries to, Dispose of any of its property (including the Hydrocarbon Interests, accounts receivable and Equity Interests in Subsidiaries or other Persons) or business, except for: 

(a) any sale of Hydrocarbons pursuant to Eligible Contracts entered into in the ordinary course of its business; 
 (b) any Disposal of equipment that is (i) obsolete, worn out, depleted or economically inefficient, (ii) no longer necessary for
the business of such Person or (iii) contemporaneously replaced by equipment of at least comparable value and use; 
 (c)
any entry into an operating agreement, unitization and pooling agreement, farm-out agreements and any other analogous agreements, in each case that is customary in the oil, gas and mineral production business and that is entered into in the ordinary
course of its business; 
 (d) Disposals of property having a fair market value not to exceed $1,000,000 (or, if denominated in a
non-Dollar currency, the Dollar Equivalent thereof calculated as of the date of such Disposal) in any single transaction or series of related transactions in any Fiscal Year, provided that such property does not constitute Collateral included in the
Borrowing Base or (to the extent not constituting Collateral) Hydrocarbon Interests included in the Borrowing Base; 
  

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 (e) Disposals of Hydrocarbon Interests not constituting Proved Reserves pursuant to farm-ins
and farm-outs and transfers of royalty interests, overriding royalty interests, net revenue interests and other similar transfers, all pursuant to exploration and development activity in the ordinary course of business of such Borrower and its
Subsidiaries; 
 (f) Disposals of Viking Equipment to Viking or any Subsidiary of the Parent provided that, upon such Disposals
(i) no Borrower or Subsidiary (as applicable) shall have any payment or other obligations (actual, contingent or otherwise) in respect of such Viking Equipment, (ii) if such Borrower or Subsidiary (as applicable) retains title to such
Viking Equipment, such Viking Equipment shall at all times be free and clear of all Liens other than any Lien in favor of the Collateral Agent, and (iii) to a Subsidiary of a Parent which is not an Obligor, and in which case such transferring
Borrower or Subsidiary (as applicable) does not retain title to such Viking Equipment, all Liens on such Viking Equipment in favor of the Collateral Agent shall automatically terminate upon the consummation of such Disposals; 
 (g) Disposals consisting of transfers of ownership of Equipment located in Turkey from one Borrower to another Borrower on terms reasonably
satisfactory to the Collateral Agent provided that, after giving effect to such Disposals, (i) such Equipment remains in Turkey and (ii) (x) a commercial enterprise pledge agreement or amendment thereto, as applicable, will have been
duly executed by the applicable Borrower and registered with the applicable Trade Registry in Turkey within thirty (30) days and (y) if a subsequent filing becomes necessary, within thirty (30) days after written request from the
Collateral Agent to do so and (iii) in each case (ii)(x) and (ii)(y), the Lenders shall have received a satisfactory opinion of their Turkish counsel as to the duly perfected security interest in and Lien on the collateral thereunder; and

 (h) the Reorganization. 
 8.6 Restricted Payments. Each Borrower shall not, and shall not permit any of its Subsidiaries to, make any Restricted Payments; provided that each Subsidiary of a Borrower may make
Restricted Payments to such Borrower. 
 8.7 Investments. Each Borrower shall not, and shall not permit any of its
Subsidiaries to, purchase, make, incur, assume or permit to exist any Investment, except: 
 (a) Liquid Investments; 

(b) trade and customer accounts receivable which are for goods furnished or services rendered in the ordinary course of business and are
payable in accordance with customary trade terms; 
 (c) creation of any additional Subsidiaries in accordance with Section
7.12(b); 
 (d) acquisition of Hydrocarbon Interests, provided that such Hydrocarbon Interests are subject to a Security
Interest; 
 (e) Investments existing on the Closing Date and specified in Item 8.7(d) of the Disclosure Schedule; and

  

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 (f) the Collection Accounts and the accounts listed on Item 6.21 and
Item 8.15 of the Disclosure Schedule. 
 8.8 Transactions with Affiliates. Except as expressly permitted
under this Agreement, each Borrower shall not, and shall not permit any of its Subsidiaries to, be party with or enter into any transaction with any Affiliate unless such transaction is entered into on fair and reasonable terms comparable to the
terms that would be available to such Borrower or such Subsidiary in an arm’s length transaction with a Person that is not an Affiliate. 
 8.9 Sales and Leasebacks. Each Borrower shall not, and shall not permit any of its Subsidiaries to, enter into any arrangement with any Person providing for the Disposal of any property to such
Person if, at the time or thereafter, such Borrower or any of its Subsidiaries leases back such property or any part thereof which such Borrower or any of its Subsidiaries intends to use for substantially the same purpose as the property that was
Disposed. 
 8.10 Change of Business; Change of Country Focus. Each Borrower shall not, and shall not permit any of its
Subsidiaries to (i) engage in any business or business activity, own any assets or assume any liabilities or obligations except as necessary in connection with, or reasonably related to, its business as an independent oil and gas exploration
and production company and (ii) without the prior written consent of the Majority Lenders, operate or carry on business in any jurisdiction other than its jurisdiction of formation and Turkey. 
 8.11 Change in Organic Documents. Each Borrower shall not, and shall not permit any of its Subsidiaries to, amend, supplement, modify
or restate its Organic Documents, or to amend its name or change its jurisdiction of organization, in each case without the prior written consent of the Majority Lenders, unless any such change, as advised to the Majority Lenders, could not
reasonably be expected to have a Material Adverse Effect. 
 8.12 Change in Fiscal Periods or Accounting Principles. Each
Borrower shall not, and shall not permit any of its Subsidiaries to, (i) permit its Fiscal Year to end on a day other than December 31 or change its method of determining Fiscal Quarters or (ii) alter the accounting principles used by
it on the Closing Date in calculating financial covenants or other standards in this Agreement. 
 8.13 Modification of
Certain Agreements. Each Borrower shall not, and shall not permit any of its Subsidiaries to, terminate any Hydrocarbon License, Eligible Contract or Material Contract other than those Hydrocarbon Licenses whose value is determined, in such
Borrower’s reasonable business judgment, to be immaterial to warrant their continuation and are terminated in the ordinary course of such Borrower’s business. Without the prior written consent of the Majority Lenders, each Borrower shall
not, and shall not permit any of its Subsidiaries to, amend, restate, supplement, waive or otherwise modify, or consent or agree to any amendment, restatement, supplement, waiver or other modification to or, the terms contained in: 
 (a) the Hydrocarbon Licenses, except to the extent any amendments or modifications thereto are required by any applicable Governmental
Authority; 
 (b) each Eligible Contract; and 
 (c) each Material Contract, 
  

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 unless any such amendment, restatement, supplement, waiver or other modification, as advised
to the Majority Lenders, could not reasonably be expected to have a Material Adverse Effect and the Majority Lenders are promptly notified of such amendment, restatement, supplement, waiver or other modification and, if requested by them, are
promptly provided with a copy of the same. 
 8.14 Limits on Speculative Hedges. Each Borrower shall not, and shall not
permit any of its Subsidiaries to create, incur or assume a speculative position in any commodities market or futures market or enter into any Hedge Agreement for speculative purposes. Without prejudice to the foregoing, each Borrower shall not, and
shall not permit any of its Subsidiaries to enter into any Hydrocarbon Hedge Agreement, Interest Hedge Agreement or any other Hedge Agreement: 
 (a) other than as part of its normal business operations, as a risk management strategy and/or as a hedge against changes resulting from market conditions related to the operations of such Borrower or any
of its Subsidiaries; 
 (b) being a Hydrocarbon Hedge Agreement that, when aggregated with any other Hydrocarbon Hedge Agreement
then in effect, covers notional volumes in excess of 75% of the reasonably projected production volumes attributable to Proved Developed Reserves for the period from and including the Closing Date to the Maturity Date; or 
 (c) that is longer than three (3) years in duration. 
 8.15 Restrictions on Accounts. Unless a Security Interest exists with respect to each such account and is otherwise permitted to be opened and maintained hereunder, each Borrower shall not, and
shall not permit any of its Subsidiaries to, open or maintain any deposit account, securities account or commodity account with any Person except for the Collection Accounts, the accounts set forth in Item 6.21 and the accounts specified
in Item 8.15 of the Disclosure Schedule. 
 8.16 Local Blocked Account. Talon shall not withdrawal or transfer any
funds in the Local Blocked Account received pursuant to any Eligible Contract, except for transfers to a Collection Account or a deposit account established in accordance with Section 7.13(a). 
 8.17 Financial Covenants. 
 (a) Current Ratio. The Borrowers shall not permit the Current Ratio to be less than 1.10 to 1.00 as of the last day of any Measurement Period occurring on or after March 31, 2010. 

(b) Leverage Ratio. The Borrowers shall not permit the Leverage Ratio to be greater than 2.50 to 1.00 as of the
last day of any Measurement Period occurring on or after March 31, 2010. 
 (c) Interest Coverage
Ratio. The Borrowers shall not permit the Interest Coverage Ratio to be less than 4.00 to 1.00 as of the last day of any Measurement Period occurring on or after March 31, 2010. 
  

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 ARTICLE 9 
 EVENTS OF DEFAULT 
 9.1 Events of Default. Each of the following events or
occurrences shall constitute an “Event of Default”: 
 (a) Non-Payment of Obligations. Each Borrower or
any Guarantor shall fail to pay (i) the principal amount of any Loan when the same is due and payable, (ii) any interest on any Loan or any fee hereunder within five (5) days of the date in which the same became due and payable or
(iii) any other amount payable to any Secured Party hereunder or under any other Loan Document within five (5) days of the date in which the same became due and payable (other than, in the cases of (ii) and (iii) above, any
default in a payment owing to any Agent for its own account, which in each case (ii) and (iii) shall be an immediate Event of Default upon such failure provided that any such default resulting solely from a technical or administrative
error shall not constitute an Event of Default unless such default continues unremedied for a period of five (5) days); 
 (b) Breach of Representation or Warranty. Any representation or warranty made or deemed made by any Obligor herein or in any other Loan Document or that is contained in any certificate, document or financial or other statement
furnished by it at any time under or in connection with this Agreement or any such other Loan Document shall prove to have been inaccurate in any material respect on or as of the date made or deemed made; 
 (c) Non-Performance of Certain Covenants and Obligations. Any Obligor shall default in the observance or performance of any covenant
or obligation contained in Section 3.5, Section 7.3, Section 7.5, Section 7.11, Section 7.12(c), Section 7.12 (d), Section 7.12 (e), Section 7.12(f), Section 7.13,
Section 7.16 or ARTICLE 8; 
 (d) Non-Performance of Other Covenants and Agreements. Any Obligor shall
default in the observance or performance of any other covenant or obligation contained in this Agreement or any other Loan Document (other than as provided in clauses (a) through (c) of this Section 9.1) and if capable of remedy,
such default shall remain unremedied for five (5) Business Days after the occurrence thereof; 
 (e) Cross-Default.
Each Borrower, any Guarantor or any of their respective 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 $1,000,000 (or, if denominated in a non-Dollar
currency, the Dollar Equivalent thereof), individually or when aggregated with all such Indebtedness of such Borrower, any Guarantor or any of their respective Subsidiaries so in default (but excluding Indebtedness evidenced by the Notes) 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 $1,000,000 (or, if denominated in a non-Dollar
currency, the Dollar Equivalent thereof), individually or when aggregated with all such Indebtedness of such Borrower, such Guarantor or any of their 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; or (iii) any such Indebtedness shall be declared to be due and payable, or required
to be prepaid (other than by a regularly scheduled required prepayment), prior to the stated maturity thereof; 
  

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 (f) Bankruptcy, Insolvency, etc. 
 (i) Any Obligor shall (A) commence any case, proceeding or other action under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, administration, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
seeking a moratorium, reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts or (B) apply for, consent to or acquiesce in the appointment of an administrator,
administrative receiver, receiver, receiver and manager, liquidator, provisional liquidator, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets or (C) make a general assignment for
the benefit of its creditors; or 
 (ii) there shall be commenced against any Obligor any case, proceeding or
other action of a nature referred to in clause (i)(A) above or any Obligor shall permit or suffer to exist the appointment of an administrator, administrative receiver, receiver, receiver and manager, liquidator, provisional liquidator,
trustee, custodian, conservator or other similar official described in clause (i)(B) above that, in either case, (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed
or undischarged for a period of fifteen (15) days or (C) is consented to or acquiesced in by such Obligor; or 
 (iii) there shall be commenced against any Obligor, whether before a court or other Governmental Authority, any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against
all or any substantial part of its assets that results in the entry of an order for any such relief that shall not have been vacated, discharged, stayed or bonded pending appeal within sixty (60) days from the entry thereof; 
 (iv) any Obligor shall become insolvent under Applicable Law or generally fail to pay, or shall admit in writing or otherwise
its inability or unwillingness generally to pay, its debts as they become due; or 
 (v) any Obligor shall take
any action authorizing or in furtherance of, any of the acts described in clause (i), (ii), (iii) or (iv) above; 
 (g) Judgments. Any judgment or order for the payment of money in excess of $1,000,000 (or, if denominated in a non-Dollar currency, the Dollar Equivalent thereof) shall be rendered against any
Obligor and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be any period of thirty (30) consecutive days during which a stay of enforcement of such judgment
or order, by reason of a pending appeal or otherwise, shall not be in effect; 
 (h) Change of Control. Any Change of
Control shall occur provided that, if N. Malone Mitchell, 3rd ceases to be the executive chairman of the board of directors of the Parent by reason of death or disability, such event shall constitute an immediate Default, but shall not constitute
and Event of Default unless the Parent shall not have appointed a successor reasonably acceptable to the Lenders within 60 days of the occurrence of such event; 
  

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 (i) Loan Document. Any provision of any Loan Document shall for any reason cease to
be valid and binding on any Obligor party thereto, or any Obligor shall so assert in writing; 
 (j) Impairment of Security,
etc. The Collateral Agent shall fail to have, not less than five (5) Business Days after any request therefor by the Collateral Agent to the Borrowers, a Security Interest in any portion of the Collateral in respect of which the Borrowers
or any of their Subsidiaries having rights therein, or the power to transfer rights therein to a third party, is entitled to grant a Security Interest to the Collateral Agent, or any Security Document shall at any time and for any reason cease to
create the Lien on the Collateral purported to be subject to such Security Document in accordance with the terms thereof, or cease to be in full force and effect, or shall be contested by any Obligor thereto, or any Obligor shall create or purport
to create any Lien (other than a Lien permitted under Section 8.2(b)) in any portion of the Collateral in favor of any third party or effects or purports to effect any Disposal other than as expressly permitted by this Agreement; 

(k) Casualty. Loss, theft, substantial damage or destruction of a material portion of the Collateral the subject of any Security
Document not fully covered by insurance (except for deductibles and allowing for the depreciated value of such Collateral) shall have occurred; 
 (l) Other Material Events. Other than those permitted under Section 8.13, any (i) suspension, revocation, termination or material adverse modification of any Hydrocarbon License (or any
action authorizing or made in furtherance of any such suspension, revocation, termination or material adverse modification), including pursuant to any seizure, compulsory acquisition, expropriation or nationalization by or under the direction of any
Governmental Authority or (ii) military, governmental or other occupation of any Borrower’s or any of its Subsidiaries’ oil and gas production facilities in Turkey by force for a period exceeding thirty (30) days; and 

(m) Material Adverse Effect. The occurrence of any event or circumstance having a Material Adverse Effect. 
 At any time after the occurrence of an Event of Default, the Administrative Agent shall at the request of, or may with the consent of, the
Majority Lenders deliver to the Borrowers a notice specifying that an Event of Default has occurred and is continuing, and for purposes of the Security Documents, such notice shall be conclusive and binding evidence of the occurrence and
continuation of an Event of Default. For the avoidance of doubt, an Event of Default shall be deemed to be continuing unless it has been remedied (if capable of remedy) or waived in accordance with this Agreement. 
 9.2 Automatic Acceleration. If an Event of Default specified in Section 9.1(f) occurs, then: 
 (a) the obligation of each Lender and the LC Issuer to make any further Credit Extension shall (if the Commitment Termination Date has not
then occurred) terminate, and all principal, interest, fees and other amounts payable under this Agreement and the other Loan Documents shall be and become forthwith due and payable in full, without notice of intent to demand, demand, presentment
for payment, notice of nonpayment, protest, notice of protest, grace, notice of dishonor, notice of intent to accelerate, notice of acceleration, and all other notices, all of which are hereby expressly waived by the Borrowers; 
  

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 (b) the Borrowers shall Cash Collateralize their LC Obligations in respect of all
outstanding Letters of Credit (if any) at such time; and 
 (c) the Collateral Agent shall at the request of, or may with the
consent of, the Majority Lenders proceed to enforce its rights and remedies under the Security Documents and any other Loan Document for the ratable benefit of the Secured Parties. 
 9.3 Optional Acceleration. If an Event of Default (other than an Event of Default specified in Section 9.1(f)) occurs,
then: 
 (a) the Administrative Agent (i) shall at the request, or may with the consent, of the Majority Lenders, by notice
to the Borrowers (if the Commitment Termination Date has not then occurred), terminate the obligation of each Lender and the LC Issuer to make any further Credit Extension, whereupon the same shall forthwith terminate with effect from the date of
such notice and (ii) shall at the request, or may with the consent, of the Majority Lenders, by notice to the Borrowers, declare all principal, interest, fees and other amounts payable under this Agreement and the other Loan Documents to be and
become forthwith due and payable in full (which declaration shall be conclusive evidence that the amounts determined therein as due and payable have become due and payable), whereupon all such amounts shall be and become forthwith due and payable in
full with effect from the date of such notice, without notice of intent to demand, demand, presentment for payment, notice of nonpayment, protest, notice of protest, grace, notice of dishonor, notice of intent to accelerate, notice of acceleration,
and all other notices, all of which are hereby expressly waived by the Borrowers; 
 (b) the Borrowers shall, upon demand of the
Administrative Agent (acting at the request of, or with the consent of, the Majority Lenders), Cash Collateralize their LC Obligations in respect of all outstanding Letters of Credit (if any) at such time; and 
 (c) the Collateral Agent shall at the request of, or may with the consent of, the Majority Lenders proceed to enforce its rights and remedies
under the Security Documents and any other Loan Document for the ratable benefit of the Secured Parties. 
 9.4 Application
of Funds. After the exercise of remedies pursuant to Section 9.3 (or after the Loans have automatically become immediately due and payable and the LC Obligations have automatically been required to be Cash Collateralized pursuant to
Section 9.2), any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order: 
 (a) first, to satisfy that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of legal counsel and other professional
advisors to each Agent) payable to each Agent in its capacity as such; 
 (b) second, to satisfy that portion of the
Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders and the LC Issuer (including fees, charges and disbursements of counsel to the respective Lenders and the
LC Issuer) and amounts payable under ARTICLE 4, ratably among them in proportion to their respective Pro Rata Shares; 
  

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 (c) third, to satisfy of that portion of the Obligations constituting accrued and
unpaid letter of credit fees and interest on the Loans, LC Outstandings (if any) and other Obligations, ratably among the Lenders and the LC Issuer in proportion to their respective Pro Rata Shares; 
 (d) fourth, to satisfy that portion of the Obligations constituting unpaid principal of the Loans, LC Outstandings (if any) and
amounts owing under Designated Hedge Agreements, ratably among the Lenders and the LC Issuer in proportion to their respective Pro Rata Shares and the Designated Hedge Counterparties; 
 (e) fifth, to the Collateral Agent for deposit into the Cash Collateral Account to Cash Collateralize the portion of the LC
Obligations comprised of the aggregate undrawn amount of the then outstanding Letters of Credit (if any) and to be applied to satisfy drawings under such Letters of Credit as and when they occur; provided that if any amount remains in the Cash
Collateral Account after all Letters of Credit have either been fully drawn, expired or terminated, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above; and 
 (f) sixth, the balance, if any, after all of the Obligations have been paid in full, to the Borrowers or the relevant Obligor or as
otherwise required by Applicable Law. 
 9.5 Borrowers’ Right to Cure. 
 (a) Notwithstanding anything to the contrary in Section 8.17 (and the definitions related thereto) and Section 9.1, in the
event of any Event of Default under any covenant set forth in Section 8.17(b) or Section 8.17(c), the Borrowers may at their option cure such Event of Default with an injection of cash by way of equity contribution or loans into any
Borrower or Borrowers, directly or indirectly, from the Parent (provided that if such cash injection is in the form of a loan, such loan is subordinated to the Obligations on terms reasonably satisfactory to the Majority Lenders) (such equity
contribution and/or loans, an “Equity Cure Injection”) in an amount which, when added to EBITDAX for the applicable Measurement Period, would result in the Borrowers complying with Section 8.17(b) or Section 8.17(c) (as
applicable), provided that the Borrowers’ rights under this Section 9.5 may not be exercised on more than two (2) occasions per year during the period from the Closing Date until the Maturity Date. 
 (b) Each Equity Cure Injection must be made within ten (10) Business Days of the delivery of the relevant Compliance Certificate under
Section 7.1(d) which shows the Borrowers’ failure to comply with Section 8.17(b) or Section 8.17(c). 
 (c) To the extent that any Equity Cure Injection is made in a particular period to enable the cure of a breach under Section 8.17(b) or Section 8.17(c) in respect of a previous Measurement Period, only that portion of the
Equity Cure Injection necessary to cure such Event of Default under Section 8.17 for such applicable Measurement Period shall be treated as increasing EBITDAX for the purpose of calculating the financial covenants in Section 8.17 in
respect of that Measurement Period by an amount equal to such portion of the relevant Equity Cure Injection. The parties hereby acknowledge that this clause (c) shall not be relied on for purposes of calculating any financial ratios other than
as applicable to Section 8.17(b) or Section 8.17(c) and shall not result in any adjustment to EBITDAX or any other amounts, other than the amount of EBITDAX referred to in the immediately preceding sentence. 
 (d) If, after giving effect to the recalculation referred to in Section (c), the relevant test under Section 8.17 is met, then
the requirements thereof shall be deemed to have been satisfied as at the relevant original date of testing as though there has been no failure to comply with such test and any Default or Event of Default occasioned thereby shall be deemed to have
been remedied for the purposes of this Agreement and the other Loan Documents. 
  

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 (e) The proceeds of each Equity Cure Injection may be used by the Borrowers for general
corporate purposes provided that in the period commencing on the date on which an Equity Cure Injection is made and ending on the first date thereafter on which a Compliance Certificate delivered by the Borrowers to the Administrative Agent in
accordance with Section 7.1(d) demonstrates that the Borrowers are in compliance with Section 8.17, the Borrowers shall not make or pay, or permit to be made or paid, any dividend or distribution (whether in cash or in kind) in
relation to their respective share capital, any redemption or reduction of their respective share capital, any payments in respect of any loans made available to them by any Affiliate or any other distribution to any of their respective
shareholders. 
 ARTICLE 10 
 GUARANTEE 
 10.1 Guarantee. The Guarantors hereby jointly and severally
guarantee to the Secured Parties the prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) of the Obligations strictly in accordance with the terms thereof. The Guarantors hereby further jointly and severally
agree that if any Borrower shall fail to pay in full when due any of the Obligations, the Guarantors shall promptly pay the same, without any demand or notice whatsoever, and that if any extension of time is given for the payment of any of the
Obligations, the same shall be promptly paid in full when due (whether at extended maturity, by acceleration or otherwise) strictly in accordance with the terms thereof. Any and all payments made by the Guarantors shall be made in accordance with
the terms of Section 4.1, mutatis mutandis. 
 10.2 Obligations Unconditional. The obligations of each
Guarantor under Section 10.1 are absolute and unconditional, joint and several, irrespective of the value, validity or enforceability of the obligations of each Borrower under this Agreement or any other Loan Document and irrespective of any
other circumstance which might otherwise constitute a legal or equitable discharge or defense in favor of any Guarantor or such Borrower (other than payment in full of the Obligations), it being the intent of this Section 10.2 that the
obligations of each Guarantor hereunder shall be absolute and unconditional, joint and several, under any and all circumstances. Without limiting the generality of the foregoing, it is agreed that the occurrence of any one or more of the following
shall, to the fullest extent permitted by Applicable Law, not alter or impair the obligations of each Guarantor hereunder which shall remain absolute and unconditional as described above: 
 (a) any waiver or any grant of an extension of time in respect of the performance of the Obligations or any part thereof; 
 (b) any acceleration of the maturity of the Obligations or any part thereof; 
 (c) any act or omission carried out in respect of any provision of this Agreement and any Loan Document; 
 (d) any amendment, restatement or modification of the Obligations or any part thereof; 
 (e) any waiver by a Secured Party of any right under this Agreement or any Loan Document in respect of the Obligations or any part thereof;

  

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 (f) any failure to perfect any Lien in respect of any Collateral, or any failure of such
Lien to constitute a valid and enforceable security interest in respect of such Collateral; 
 (g) any substitution, release or
exchange effected in respect of any Collateral; or 
 (h) any additional guarantee given in favor of the Secured Parties in
respect of the Obligations or any part thereof. 
 10.3 Waiver of Presentment. Each Guarantor hereby expressly waives
diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that any Secured Party first exhaust any right, power or remedy it may have against any Borrower or any Guarantor under this Agreement or any other
Loan Document, or against any other Person under any other guarantee of, or security for, any of the Obligations. Each Guarantor agrees that its obligations pursuant to this ARTICLE 10 shall not be affected by any assignment or participation
entered into by any Bank pursuant to Section 12.7. 
 10.4 Reinstatement. The obligations of each Guarantors under
this ARTICLE 10 shall automatically be reinstated if for any reason any payment by or on behalf of any Borrower or any Guarantor in respect of the Obligations is rescinded, or must be otherwise restored by any Secured Party, whether as a
result of any proceedings in bankruptcy or reorganization or otherwise. Each Guarantor jointly and severally agrees to indemnify each Secured Party on demand for all costs and expenses (including, without limitation, attorney’s fees) incurred
by it in connection with such rescission or restoration, including any such costs and expenses incurred in defending any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy,
insolvency or similar law. 
 10.5 Subrogation. Until all Commitments have been terminated and all Obligations (other
than contingent Obligations not then due and payable) have been paid in full, each Guarantor hereby waives all rights of subrogation or contribution it may have in respect of any Borrower or any Guarantor, whether arising by contract or operation of
law or otherwise by reason of any payment made by it pursuant to this ARTICLE 10. 
 10.6 Continuing Guarantee.
The guarantee in this ARTICLE 10 is a continuing guarantee, and shall apply to all Obligations whenever arising. 
 10.7
Instrument for the Payment of Money. Each Guarantor hereby acknowledges that the guarantee in this ARTICLE 10 constitutes an instrument for the payment of money, and agrees that any Secured Party, at its sole option, in the event of a
dispute by such Guarantor in the payment of any moneys due hereunder, shall have the right to bring motion-action under New York CPLR Section 3213. 
 10.8 General Limitation on Guarantee Obligations. In any action or proceeding involving any bankruptcy, insolvency, reorganization or other Applicable Law in the jurisdiction of organization of any
Guarantor affecting the rights of creditors generally, if the obligations of any Guarantor under this ARTICLE 10 would otherwise be held or determined to be void, invalid or unenforceable, or subordinated to the claims of any other creditors,
then, notwithstanding anything in this Agreement to the contrary, the amount of such liability shall, without any further action by such Guarantor, any Secured Party or any other Person, be automatically limited and reduced to the highest amount
that would be valid and enforceable and not subordinated to the claims of other creditors as determined in such action or proceeding. 
  

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 10.9 Joint and Several Liability of Borrowers. Without prejudice to the provisions of
this ARTICLE 10 but subject to any Applicable Law in the jurisdiction of organization of any Borrower affecting the rights of creditors generally, in consideration of the financial accommodation to be provided by the Lenders under this
Agreement and the Designated Hedge Counterparties under the Designated Hedge Agreements, for the mutual benefit, directly and indirectly, of each Borrower and in consideration of the undertakings of each Borrower to accept joint and several
liability for the obligations of each other Borrower, each Borrower hereby irrevocably and unconditionally accepts joint and several liability with each other Borrower with respect to the prompt payment in full when due (whether at stated maturity,
by acceleration or otherwise) of the Obligations of, each Borrower and all other amounts from time to time owing to the Secured Parties by each Borrower under this Agreement and all of the other Loan Documents, in each case strictly in accordance
with the terms hereof and thereof. 
 ARTICLE 11 
 AGENCY PROVISIONS 
 11.1 Appointment and Authority. Each of the Lenders and
the LC Issuer hereby irrevocably appoints Standard Bank Plc to act on its behalf as the Administrative Agent, the Collateral Agent and the Technical Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent, the
Collateral Agent and the Technical Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent, the Collateral Agent and the Technical Agent by the terms hereof or thereof, together with such
actions and powers as are reasonably incidental thereto. The provisions of this ARTICLE 11 are solely for the benefit of the Secured Parties, and neither the Borrowers nor any other Obligor shall have rights as a third party beneficiary of
any of such provisions. Each of the Secured Parties hereby irrevocably appoints and authorizes the Collateral Agent to act as the agent of such Secured Party for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by
any Obligor to secure any of the Obligations, together with such powers and discretion as are reasonably incidental thereto. 
 11.2 Rights as a Lender. Each Agent shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not an Agent, and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include Standard Bank Plc serving as the Administrative Agent, as the Collateral Agent or as the Technical Agent hereunder in its individual
capacity. Standard Bank Plc and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with any Obligor or any Subsidiary or other
Affiliate thereof as if it were not an Agent and without any duty to account therefor to the Lenders. 
 11.3 Exculpatory
Provisions. No Agent shall have any duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, each Agent: 
 (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

 (b) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights
and powers expressly contemplated hereby or by the other Loan Documents that an Agent is required to exercise as directed in writing by the Majority Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein
or in the other Loan Documents), provided that no Agent shall be required to take any action that, in its opinion or the opinion of its counsel, may expose such Agent to liability or that is contrary to any Loan Document or Applicable Law; and

  

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 (c) shall not, except as expressly set forth herein and in the other Loan Documents, have
any duty to disclose, and shall not be liable for the failure to disclose, any information relating to any Borrower or any of its Affiliates that is communicated to or obtained by Standard Bank Plc or any of its Affiliates in any capacity.

 No Agent shall be liable for any action taken or not taken by it (i) with the consent or at the request of the Majority
Lenders or (ii) in the absence of its own gross negligence or willful misconduct. No Agent shall be deemed to have knowledge of any Default unless and until notice describing such Default is given to such Agent by an Obligor, a Lender or the LC
Issuer. No Agent shall be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any
certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or
the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or the creation, perfection or priority of any Lien
purported to be created by the Security Documents, (v) the value or the sufficiency of any Collateral or (v) the satisfaction of any condition precedent set forth in ARTICLE 5 or elsewhere herein, other than to confirm receipt of
items expressly required to be delivered to such Agent. 
 11.4 Reliance by Agents. Each Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution)
believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. Each Agent may also rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and
shall not incur any liability for relying thereon. Without prejudice to the foregoing, in determining compliance with any condition hereunder to any Credit Extension that by its terms must be fulfilled to the satisfaction of a Lender or the LC
Issuer, the Administrative Agent may presume that such condition is satisfactory to such Lender or the LC Issuer unless the Administrative Agent shall have received notice to the contrary from such Lender or the LC Issuer prior to the making of such
Credit Extension. Each Agent may engage, rely on and consult with legal counsel (who may be counsel for the Borrowers), independent accountants and other professional advisors or experts selected by it, in its sole discretion and at the cost of the
Borrowers, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants, professional advisors or experts. 
 11.5 Delegation of Duties. Each Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub-agents appointed by such Agent. Each Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Affiliates. The
exculpatory provisions of Section 11.3 and this ARTICLE 11 shall apply to any such sub-agent and to the Affiliates of such Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities performed as an Agent. 
  

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 11.6 Resignation of Agents. Each Agent may at any time give notice of its resignation
to the Borrowers and the Secured Parties. Upon receipt of any such notice of resignation, the Majority Lenders shall have the right, in consultation with the Borrowers, to appoint another Person or an Affiliate of a Lender to succeed such Agent. If
no such successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within thirty (30) days after the retiring Agent gives notice of its resignation, then the retiring Agent may on behalf of the
Secured Parties, appoint a successor Agent meeting the qualifications set forth above; provided that if the retiring Agent shall notify the Borrowers and the Secured Parties that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice and (a) the retiring Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that if the retiring Agent is the
Collateral Agent, the Collateral Agent shall continue to hold any Collateral held by it on behalf of the Secured Parties under any of the Loan Documents until such time as a successor Collateral Agent is appointed) and (b) all payments,
communications and determinations to be made by, to or through such Agent shall instead be made by or to the relevant Obligor or Secured Party directly, until such time as a successor Agent is appointed as provided for above in this Section
11.6. Upon the acceptance of a successor’s appointment as an Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Agent, and the retiring Agent
shall be discharged from all of its duties and obligations hereunder and under any other Loan Document (if not already discharged therefrom as provided above), and the retiring Agent shall cooperate in good faith to effectuate the transfer of its
role to the successor Agent, including the execution and delivery of such assignments, modifications, documents, certificates and further assurances as such successor Agent may reasonably request. The fees payable by the Borrowers to a successor
Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrowers and such successor. After the retiring Agent’s resignation hereunder and under the other Loan Documents, the provisions of this ARTICLE
12, ARTICLE 5 and Section 11.4 shall continue in effect for the benefit of such retiring Agent, its sub-agents and their respective Affiliates in respect of any actions taken or omitted to be taken by any of them while the retiring
Agent was acting as an Agent. In addition, if any Lender serving as an Agent is or becomes a Delinquent Lender, the Majority Lenders or (so long as no Default or Event of Default has then occurred and is continuing) the Borrowers, may, but shall not
be obligated to, require the resignation of such Agent in accordance with the terms of this Section 11.6; provided that such Agent shall not be required to resign if, as a result of the expiry of the Delinquent Period prior thereto,
the circumstances entitling the Majority Lenders or the Borrowers to require such resignation cease to apply. 
 11.7
Non-Reliance on Agents and Other Lenders. Each Lender and the LC Issuer acknowledges that it has, independently and without reliance upon any Agent or any other Lender or any of their Affiliates and based on such documents and information as
it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and to make Credit Extensions hereunder. Each Lender and the LC Issuer also acknowledges that it will, independently and without reliance upon any
Agent or any other Lender or any of their Affiliates and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement,
any other Loan Document or any related agreement or any document furnished hereunder or thereunder. 
 11.8 No Other
Duties. Notwithstanding anything in this Agreement to the contrary, the Arrangers shall have no powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as an Agent, a
Lender or the LC Issuer hereunder. 
  

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 11.9 Indemnification. The Lenders shall indemnify each Agent in its capacity as such
(to the extent not reimbursed by the Borrowers and without limiting the obligation of the Borrowers to do so), ratably according to their respective Pro Rata Shares in effect on the date on which indemnification is sought under this Section (or, if
indemnification is sought after the date upon which the Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with such Pro Rata Shares immediately prior to such date), from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans and other Obligations) be imposed on,
incurred by or asserted against such Agent in any way relating to or arising out of, the Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein, or the other transactions
contemplated hereby or thereby or any action taken or omitted by such Agent under or in connection with any of the foregoing; provided, however, that no Lender shall be liable for the payment of any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and non-appealable decision of a court of competent jurisdiction to have resulted from such Agent’s gross negligence or willful
misconduct. The agreements in this Section shall survive the termination of this Agreement and the payment in full of all Obligations. 
 11.10 Indemnified Matters. Notwithstanding anything to the contrary in this Agreement, each Agent shall be entitled to include as part of any amount payable to it under Section 11.9, Section 12.5 and/or Section
12.6, a sum representing the cost to such Agent in terms of management time and other resources calculated on the basis of such reasonable daily or hourly rates as such Agent may notify to the Borrower or the Lenders (as the case may be) for
such purpose, and such sum shall be in addition to any fees or other amounts paid or payable to such Agent under this Agreement or the other Loan Documents. Each Borrower shall promptly on demand reimburse any Lender for amounts actually paid by
such Lender pursuant to this Section 11.10. 
 11.11 Administrative Agent May File Proofs of Claim. In case of the
pendency of any proceeding under any judicial proceeding relative to any Obligor, the Administrative Agent (irrespective of whether the principal of any Loan or LC Obligation shall then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrowers) shall be entitled and empowered, by intervention in such proceeding or otherwise: 
 (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, LC Obligations and
all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the LC Issuer and the Administrative Agent (including any claim for the compensation,
expenses, disbursements and advances of the Lenders, the LC Issuer and the Administrative Agent and their respective agents and counsel) allowed in such judicial proceeding; and 
 (b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same, 
 and any administrator, administrative receiver, receiver, receiver and manager, liquidator, provisional liquidator, trustee, custodian,
conservator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the LC Issuer to make such payments to the Administrative Agent and, if the Administrative Agent shall consent to the making of such
payments directly to the Lenders and the LC Issuer, to pay to the Administrative Agent any amount due for the compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the
Administrative

  

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Agent under this Agreement and any other Loan Document. Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of
any Lender or the LC Issuer any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the LC Issuer to authorize the Administrative Agent to vote in respect of the claim of any Lender
or the LC Issuer or in any such proceeding. 
 11.12 Collateral and Guarantee Matters. The Lenders and the LC Issuer
irrevocably authorize the Collateral Agent, at its option and in its discretion: 
 (a) to release any Lien on any property
granted to or held by the Collateral Agent under any Loan Document (i) upon the termination of the Commitments and the payment in full of all Obligations (other than contingent Obligations not then due and payable), (ii) that is Disposed
or to be Disposed as part of or in connection with any Disposal permitted hereunder or under any other Loan Document or (iii) if approved, authorized or ratified in writing in accordance with Section 12.1; 
 (b) to release any Guarantor from its guarantee of the Obligations if such Person ceases to be a Subsidiary as a result of a transaction
permitted hereunder; and 
 (c) to subordinate any Lien granted to or held by the Collateral Agent under any Loan Document to the
holder of any Lien on such property that is permitted under Section 8.2. 
 Upon request by the Collateral Agent at any time, the
Majority Lenders will confirm in writing the Collateral Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its guarantee of the Obligations pursuant to this
Section 11.12. In each case as specified in this Section 11.12, the Collateral Agent will, at the Borrowers’ expense, execute and deliver to the applicable Obligor such documents as such Obligor may reasonably request to evidence
the release of such item of Collateral from the assignment and security interest granted under the Security Documents or to subordinate its interest in such item, or to release such Guarantor from its guarantee of the Obligations, in each case in
accordance with the terms of the Loan Documents and this Section 11.12. 
 ARTICLE 12 
 MISCELLANEOUS 
 12.1
Amendments. No amendment or waiver of any provision of this Agreement or any other Loan Document (except the Fee Letter), and no consent to any departure by any Borrower or any other Obligor therefrom, shall be effective unless made in
writing signed by the Majority Lenders and the Borrowers or the applicable Obligor (and in the case of the other Loan Documents (except the Fee Letter) all other parties thereto), as the case may be, and acknowledged by the Administrative Agent, and
each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. If the Administrative Agent receives notice of any amendment or waiver requested by the Borrowers with respect to this
Agreement or any other Loan Document, it shall give notice to the Lenders accordingly. Unless the Administrative Agent advises otherwise, the Lenders shall have ten (10) Business Days to respond to the request for such amendment or waiver. If
no response is received from a Lender within such time, the Administrative Agent shall be entitled to treat such failure to respond as a rejection by such Lender of the requested amendment or waiver. Notwithstanding anything in this Agreement to the
contrary, no such amendment, waiver or consent shall: 
 (a) waive any condition precedent specified in ARTICLE 5, without
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 (b) extend or increase the Commitment of any Lender, without the written consent of such
Lender; 
 (c) postpone any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees
or other amounts due to each Lender hereunder or under such other Loan Document, without the written consent of each Lender entitled to such amount; 
 (d) reduce the principal of, or the rate of interest specified herein on, any Loan or LC Participation, or any fees or other amounts payable hereunder or under any other Loan Document, without the written
consent of each Lender entitled to such amount; 
 (e) change Section 9.4 in a manner that would alter the pro rata
sharing of payments required thereby without the written consent of each Lender or the order of application thereof without the written consent of each Lender entitled to such amount; 
 (f) change any provision of this Section 12.1, Section 12.9 or the definition of “Eligible Assignee” or
“Majority Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written
consent of each Lender; 
 (g) amend, modify or waive any provision of ARTICLE 3 or ARTICLE 11 or any other
provision hereunder or under any other Loan Document that affects the rights or duties of any Agent without the written consent of such Agent; 
 (h) amend, modify or waive any provision of Section 2.4 without the written consent of the LC Issuer; 
 (i) except as permitted by Section 11.12, release all or any part of the Collateral, without the written consent of each Secured Party; or 
 (j) except as permitted by Section 11.12, release any Guarantor from its guarantee of the Obligations, without the written consent of
each Secured Party. 
 Notwithstanding anything in this Agreement to the contrary, no Delinquent Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that (i) the Commitment of such Delinquent Lender may not be increased or extended without its prior written consent and (ii) any amendment, waiver or consent
requiring the consent of all Lenders or each affected Lender that by its terms affects any Delinquent Lender in a manner that is materially and disproportionately adverse to such Delinquent Lender compared with the other affected Lenders shall
require the consent of such Delinquent Lender. 
  

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 12.2 Notices. 
 (a) Communications in writing. Unless otherwise stated, any communication to be made under or in connection with this Agreement and
(unless otherwise provided therein) the other Loan Documents shall be made in writing and may be made by fax, letter or, subject to Section 12.2(d), e-mail, and any communications made in accordance with this Section 12.2 shall
constitute admissible and legally valid written evidence in any investigation, litigation or other proceeding based hereon, or arising out of, under, or in connection with this Agreement or any other Loan Document. All such communications shall
either be in the English language or, if not in English and if so required by the Administrative Agent, be accompanied by a certified English translation thereof in which case the certified English translation shall prevail in the event of any
inconsistency or ambiguity with the original communication to the fullest extent permitted by applicable law. 
 (b)
Addresses. The address, fax number or e-mail address (and the department or officer, if any, for whose attention the communication is to be made) of each party for any communication or document to be made or delivered under or in connection
with this Agreement and the other Loan Documents is: 
 (i) in the case of any Obligor, as specified below the
name of such Obligor on the signature pages hereof; 
 (ii) in the case of the Administrative Agent, the
Collateral Agent or the Technical Agent, as specified below its name on the signature pages hereof; 
 (iii) in
the case of the LC Issuer and any Lender, as specified below its name on the signature pages hereof or as notified in writing to the Administrative Agent on or prior to the date on which it becomes a party, 
 or any substitute address, fax number or e-mail address or department or officer as such party may notify to the Administrative Agent (or as
the Administrative Agent may notify to the other parties, if a change is made by the Administrative Agent) by not less than five (5) Business Days’ prior notice. Promptly upon receipt of notification of a change in address, fax number or
e-mail pursuant to this Section 12.2, the Administrative Agent shall notify the other parties of such change. 
 (c)
Delivery. Any communication or document made or delivered by one party to another under or in connection with this Agreement or the other Loan Documents will only be effective: 
 (i) if by way of fax, when received in legible form; 
 (ii) if by way of letter, when it has been left at the relevant address or five (5) Business Days after being deposited
in the post postage prepaid in an envelope addressed to it at that address; 
 (iii) if by way of e-mail, when a
delivery receipt is received by the sender confirming that the e-mail has been delivered to the recipient’s correct e-mail address (including, without limitation, by means of the “return receipt requested” function or a return e-mail
acknowledgment); and 
  

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 (iv) if a particular department or officer is specified as part of its
address details provided under Section 12.2(b), if addressed to that department or officer. 
 Any communication or
document delivered in accordance with this Section 12.2 after 4:00 p.m. (London, England time) on a Business Day, or on a day which is not a Business Day, will be deemed to have been delivered at 10:00 a.m. (London, England time) on the next
Business Day. Any communication or document to be made or delivered to an Agent will be effective only when actually received by such Agent and then only if it is expressly marked for the attention of or delivered to the e-mail address of the
department or officer identified with such Agent’s signature below (or any substitute department or officer as such Agent shall specify for this purpose). All notices from an Obligor to any Secured Party or from any Secured Party to an Obligor
shall be sent through the Administrative Agent. Any communication or document made or delivered to an Obligor in accordance with this Section 12.2 will be deemed to have been made or delivered to such Obligor. 
 (d) Limitation on use of e-mail. Electronic mail (“e-mail”) shall not be used by any Obligor for any of the
following communications to be made under or in connection with this Agreement or the other Loan Documents (except where the Administrative Agent expressly requires that an Obligor provide electronic versions of such communications, in which case
the relevant Obligor shall promptly do so without prejudice to its obligations to deliver the same in paper form): 
 (i) delivery of a Notice of Borrowing; 
 (ii) provision of any financial statements under Section
7.1, unless, within five (5) Business Days of their being provided, hard copies of such financial statements are delivered to the Administrative Agent; 
 (iii) delivery of a Compliance Certificate; 
 (iv) provision of any notice or other information under Section 7.3; 
 (v) any other notice or correspondence in respect of which an Agent, acting reasonably, requires a hard-copy signature; or

 (vi) any Secured Party which has notified the Administrative Agent that it does not wish to receive any notice
or other communication by e-mail. 
 (e) Use of websites. Except as provided below, each Agent may deliver
any information under this Agreement or the other Loan Documents to the Secured Parties and/or the Obligors by posting it on to an electronic website if such Agent designates a website for this purpose and supplies each Secured Party and/or each
Obligor (as applicable) with the address of and any relevant password specifications for the website and notifies the Secured Parties and/or the Obligors (as applicable) if the relevant password specifications for the website are changed. Such Agent
must promptly upon becoming aware of its occurrence, notify the Secured Parties and/or the Obligors (as applicable) if the website or any information on the website is infected by any electronic virus or similar malicious software, in which event
such Agent may make available to the Secured Parties and/or the Obligors (as applicable) any information to be delivered under this Agreement in paper form. 
  

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 12.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of any Secured Party, any right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by law or contract. 
 12.4 Survival of Representations and Warranties. All representations and
warranties made hereunder, in the other Loan Documents and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the making of the Credit
Extensions hereunder. 
 12.5 Payment of Expenses and Taxes. Each Borrower agrees (a) to pay or reimburse each
Secured Party for all out-of-pocket costs and expenses reasonably incurred in connection with the negotiation, preparation, execution and delivery of, and any amendment, supplement or modification to, this Agreement and the other Loan Documents and
any other documents prepared in connection herewith or therewith, and the consummation and administration of the transactions contemplated hereby and thereby, including the fees and disbursements of counsel and notarization, filing and recording
fees and expenses, (b) to pay or reimburse each Secured Party for all costs and expenses incurred in connection with (i) the enforcement or preservation of any rights under this Agreement, the other Loan Documents and any such other
documents and (ii) the negotiation of any restructuring or “work-out”, whether or not consummated, of any Obligations and (c) to pay, indemnify, and hold each Secured Party harmless from, any and all recording and filing fees and
any and all liabilities with respect to, or resulting from any delay in paying, stamp, excise and other taxes, if any, that may be payable or determined to be payable in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or in respect of, this Agreement and any other Loan Documents. All amounts due under this
Section 12.5 shall be payable not later than ten (10) days after written demand therefor. Statements of amounts payable by each Borrower pursuant to this Section 12.5 shall be submitted to the Borrower at the
“Address for Notices” specified below the name of such Borrower on the signature pages hereof, and to the attention of the contact person specified therein, or to such other contact person or address as may be hereafter designated by such
Borrower in a written notice to each Secured Party. The agreements in this Section 12.5 shall survive the making of the Credit Extensions hereunder, the payment in full of the Obligations and the termination of all Commitments.

 12.6 Indemnification. In consideration of the execution and delivery of this Agreement by the Secured Parties, each
Borrower hereby indemnifies, exonerates and holds each of them and each of their respective officers, directors, employees and agents in their capacities as such (each, an “Indemnitee”) free and harmless from and against any and all
actions, causes of action, suits, claims, losses, costs, liabilities and damages, and all expenses incurred in connection with any of the foregoing (irrespective of whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought), including attorneys’ fees and disbursements reasonably incurred, whether incurred in connection with actions between or among the parties hereto or the parties hereto and third parties, and agrees to reimburse each
Indemnitee upon demand for all legal and other expenses reasonably incurred by it in connection with investigating, preparing to defend or defending, or providing evidence in or preparing to serve or serving as a witness with respect to, any claim,
litigation, investigation or proceeding relating to any of the foregoing (collectively, the “Indemnified Liabilities”), incurred by the Indemnitees or any of them as a result of, or arising out of, or relating to: 
 (i) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of any Credit
Extension; 
  

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 (ii) the execution, delivery, enforcement, performance and administration of
this Agreement, the other Loan Documents and any agreement executed and delivered in connection therewith; 
 (iii) any investigation, litigation or proceeding related to any environmental cleanup, audit, noncompliance with or liability under any Environmental Law or other matter relating to the protection of the environment applicable to the
operations of such Borrower or any of its Subsidiaries or any of the Hydrocarbon Interests; 
 (iv) the presence
on or under, or the Releases from, any property owned or operated by any Obligor of any Hazardous Material regardless of whether caused by, or within the control of, such Obligor; or 
 (v) any Environmental Liability arising as a result of property owned, leased or operated by any Obligor (the indemnification
herein shall survive the payment in full of the Obligations and the termination of all Commitments, regardless of whether such Environmental Liability is caused by, or within the control of, such Obligor); 
 except to the extent that Indemnified Liabilities arising for the account of a particular Indemnitee are found by a final, non-appealable judgment of a
court of competent jurisdiction to have resulted by reason of such Indemnitee’s gross negligence or willful misconduct. Without limiting the foregoing, and to the extent permitted by Applicable Law, each Borrower agrees not to assert and to
cause its Subsidiaries not to assert, and hereby waives and agrees to cause its Subsidiaries to so waive, all rights for contribution or any other rights of recovery with respect to all claims, demands, penalties, fines, liabilities, settlements,
damages, costs and expenses of whatever kind or nature, under or related to Environmental Law, that any of them might have by statute or otherwise against any Indemnitee. It is expressly understood and agreed that to the extent that any Indemnitee
is strictly liable under any Environmental Law, each Obligor’s obligation to such Indemnitee under this indemnity shall likewise be without regard to fault on the part of any Obligor with respect to the violation or condition that results in
any Environmental Liability of an Indemnitee. If and to the extent that the foregoing undertaking may be unenforceable for any reason, each Obligor agrees to make the maximum contribution to the payment and satisfaction of each of the Indemnified
Liabilities that is permissible under Applicable Law. The agreements in this Section 12.6 shall survive the making of the Credit Extensions hereunder, the payment in full of the Obligations and the termination of all Commitments.

 12.7 Successors and Assigns. 
 (a) Successors and Assigns Generally. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns, provided
that (i) no Obligor may assign or transfer any of its rights or obligations under this Agreement without the prior written consent of all of the Lenders and (ii) any assignment or participation by a Lender of any of its rights and
obligations hereunder shall be effected in accordance with this Section 12.7. 
  

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 (b) Participations. Each Lender may at any time grant participations in any of its rights
under this Agreement or under any of the Notes to any Person (a “Participant”), provided that in the case of any such participation: 
 (i) the Participant shall not have any rights under this Agreement or any of the other Loan Documents, including rights of consent, approval or waiver (the Participant’s rights against such Lender in
respect of such participation to be those set forth in the agreement executed by such Lender in favor of the Participant relating thereto); 
 (ii) such Lender’s obligations under this Agreement (including, without limitation, its Commitments hereunder) shall remain unchanged; 
 (iii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations;

 (iv) such Lender shall remain the holder of the Obligations owing to it and of any Note issued to it for all
purposes of this Agreement; and 
 (v) the Borrowers, the Agents, and the other Lenders shall continue to deal
solely and directly with the selling Lender in connection with such Lender’s rights and obligations under this Agreement, and all amounts payable by the Borrowers hereunder shall be determined as if such Lender had not sold such participation,

 and provided further that no Lender shall transfer, grant or sell any participation under which the
Participant shall have rights to approve any amendment to or waiver of this Agreement or any other Loan Document. 
 (c)
Assignments by Lender. Each Lender (the “Assignor”) may assign all or any part of its Loans, LC Participations and/or Commitments and its rights and obligations hereunder to one or more Eligible Assignees, each of which shall
become a party to this Agreement as a Lender by execution of an assignment and acceptance agreement in substantially the form attached hereto as Exhibit E (an “Assignment Agreement”) to be executed by the Assignor, an Eligible
Assignee and acknowledged by the Administrative Agent; provided, that (i) if such assignment is in respect of less than all of the rights and obligations of the Assignor, then, unless otherwise agreed to by the Administrative Agent, such
assignment shall be in an aggregate principal amount of at least $5,000,000 or a whole multiple of $500,000 in excess thereof and (ii) each Borrower shall cooperate with the Assignor, such Eligible Assignee and the Administrative Agent to
facilitate such assignment, including, if instructed by the Assignor or the Administrative Agent, providing to such Eligible Assignee copies of all documentation and other information required by bank regulatory authorities under applicable
“know-your-customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act, the United Kingdom Proceeds of Crime Act 2002 and the United Kingdom Money Laundering Regulations 2003. Upon its receipt of an Assignment
Agreement executed by the Assignor and an Eligible Assignee, together with a registration and processing fee of $3,500 for its own account, the Administrative Agent shall promptly record the information contained therein in the Register (as defined
in clause (d) below). Upon such execution, delivery, acceptance and recording, then, from and after the settlement date specified in such Assignment Agreement, the Assignee thereunder shall be a party to this Agreement and, to the extent provided in
the Assignment Agreement, shall have the rights and obligations of the Assignor hereunder with Loans and/or Commitments as specified therein and y) the Assignor thereunder shall, to the extent provided in the assignment and acceptance agreement, be
released from its obligations under this Agreement. 
  

 87 

 (d) Register. The Administrative Agent shall maintain a register (the
“Register”) on which the Administrative Agent shall record the name and address of each Lender, and the Commitments of, and principal amounts of the Loans and LC Obligations owing to, each Lender pursuant to the terms hereof from
time to time. The entries in the Register shall be conclusive absent manifest error, and the Borrowers, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as the owner
thereof for all purposes of this Agreement, notwithstanding notice to the contrary; provided that the Administrative Agent’s failure to make any recording, or any error by the Administrative Agent in making such recording, shall not affect each
Borrower’s or any other Obligor’s liabilities in respect of the Loans and LC Obligations. 
 12.8 Right of
Set-off. In addition to any rights now or hereafter granted under Applicable Law or otherwise, and not by way of limitation of any such rights, upon the occurrence and during the continuance of an Event of Default, each Agent, each Lender and
the LC Issuer is hereby authorized at any time and from time to time, without presentment, demand, protest or other notice of any kind to any Borrower or to any other Person, any such notice being hereby expressly waived, to set off and to
appropriate and apply any and all deposits (general or special) and any other Indebtedness at any time held or owing by such Agent, such Lender or the LC Issuer (including, without limitation, by branches, agencies and Affiliates of such Agent, such
Lender or the LC Issuer wherever located) to or for the credit or the account of any Borrower against and on account of the Obligations, regardless of whether or not such Agent, such Lender or the LC Issuer shall have made any demand hereunder and
regardless of whether or not such Obligations shall be contingent or unmatured. Each Agent, each Lender and the LC Issuer agrees to promptly notify the relevant Borrower after any such set off and application, but failure to give such notice shall
not affect the validity of such set off and application. 
 12.9 Delinquent Lenders. Notwithstanding anything in this
Agreement to the contrary, if any Lender becomes a Delinquent Lender, then, to the extent permitted by Applicable Law: 
 (a)
while the relevant Delinquent Period is in effect, such Delinquent Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in Section 12.1; 
 (b) until such time as all Delinquent Credits with respect to such Delinquent Lender have been funded, its Pro Rata Share of any repayment or
prepayment of the Loans shall be applied to satisfy its obligation to fund such Delinquent Credits; 
 (c) until such time as all
Delinquent Payments with respect to such Delinquent Lender have been paid in full together with any applicable accrued interest thereon, the Administrative Agent shall apply any amounts thereafter received by the Administrative Agent for the account
of such Delinquent Lender to satisfy such Delinquent Lender’s obligation to make such Delinquent Payments; 
 (d) while the
relevant Delinquent Period is in effect, the Borrowers may reduce all or any portion of the unused Commitments of such Delinquent Lender under Section 2.6(a) before reducing the unused Commitments of any other Lender; 
  

 88 

 (e) any Delinquent Lender with a Delinquent Credit shall not be entitled to receive any
commitment fee pursuant to Section 2.9(a) during its Delinquent Period, and the Borrowers shall not be required to pay any such fee that otherwise would have been required to have been paid to such Delinquent Lender during its Delinquent
Period; 
 (f) any Delinquent Lender with a Delinquent Credit shall not be entitled to receive its share of any letter of credit
fee pursuant to Section 2.9(b) during its Delinquent Period and such fee shall instead be paid to the LC Issuer (or if the entire LC Participation of such Delinquent Lender has been assumed by one or more Lenders, such fee shall be ratably
allocated among such Lenders as their interests may appear), unless such Delinquent Lender has provided cash collateral or other credit support or made other arrangements to the LC Issuer’s satisfaction to ensure its ability to fund its future
LC Participation in respect of any relevant Letter of Credit; and 
 (g) the Borrowers may, at their sole expense and effort,
upon ten (10) Business Days’ notice to such Delinquent Lender and the Administrative Agent, require the Delinquent Lender to assign and delegate all of its rights, interests and obligations under this Agreement to an Eligible Assignee;
provided that if the Borrowers elect to exercise such right with respect to a Delinquent Lender, (i) such Delinquent Lender shall have received payment of an amount equal to the outstanding principal of its Loans and LC Participations, accrued
interest thereon, accrued fees and all other amounts then payable to it hereunder and the other Loan Documents, net of any amounts owing to any Agent, Lender or the LC Issuer, from the Eligible Assignee (to the extent of such outstanding principal
and accrued interest and fees) or the Borrowers (in the case of all other amounts), (ii) the Eligible Assignee shall have paid in full all amounts then due and payable by the Delinquent Lender to any Agent, Lender or the LC Issuer hereunder and
the other Loan Documents, (iii) such Delinquent Lender shall execute and deliver an Assignment Agreement and (iv) such Delinquent Lender shall not be required to make any such assignment if, as a result of the expiry of the Delinquent
Period prior thereto, the circumstances entitling the Borrowers to require such assignment and delegation cease to apply. 
 12.10 Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed signature page of this Agreement by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart hereof. 
 12.11 Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction. 
 12.12 Other Transactions. Nothing contained herein shall preclude any
Secured Party or any of its Affiliates from engaging in any transaction, in addition to those contemplated by the Loan Documents, with each Borrower or any of its Affiliates in which such Borrower or such Affiliate is not restricted hereby from
engaging with any other Person. 
 12.13 Integration. This Agreement and the other Loan Documents constitute the entire
understanding among the parties hereto with respect to the subject matter hereof and thereof and supersede any prior agreements, written or oral, with respect thereto. 
  

 89 

 12.14 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.  
 12.15 SUBMISSION TO JURISDICTION; WAIVERS. (a) EACH OBLIGOR HEREBY IRREVOCABLY CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN, NEW YORK
CITY, AND APPELLATE COURTS FROM ANY THEREOF, IN ANY LITIGATION OR OTHER PROCEEDING BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, ANY LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR
ACTIONS OF A SECURED PARTY OR AN OBLIGOR IN CONNECTION HEREWITH OR THEREWITH; PROVIDED THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE SECURED PARTY’S OPTION, IN THE COURTS OF ANY
JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND; PROVIDED FURTHER THAT NOTHING HEREIN SHALL LIMIT THE RIGHT OF A SECURED PARTY TO BRING PROCEEDINGS AGAINST AN OBLIGOR IN THE COURTS OF ANY OTHER JURISDICTION. 

(b) EACH OBLIGOR IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE
WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES SPECIFIED IN SECTION 12.2. EACH OBLIGOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION THAT IT MAY HAVE OR HEREAFTER MAY
HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO IN CLAUSE (a) ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT EACH OBLIGOR HAS OR
HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, SUCH
OBLIGOR HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THE LOAN DOCUMENTS. EACH OBLIGOR HEREBY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT THAT IT MAY HAVE TO
CLAIM OR RECOVER IN ANY LEGAL ACTION OR PROCEEDING REFERRED TO IN THIS SECTION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES. 
 (c) TO THE EXTENT THAT ANY OBLIGOR MAY, IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BEFORE A COURT OF TURKEY OR ELSEWHERE ARISING OUT OF OR IN CONNECTION WITH ANY FINANCE DOCUMENT, BE ENTITLED TO
THE BENEFIT OF ANY PROVISIONS OF LAW REQUIRING ANY FINANCE PARTY IN SUCH SUIT, ACTION OR PROCEEDING TO POST SECURITY FOR THE COSTS OF ANY OBLIGOR, AS THE CASE MAY BE (CAUTIO JUDICATUM SOLVI), OR TO POST A BOND OR TO TAKE SIMILAR
ACTION, THE OBLIGORS HEREBY IRREVOCABLY WAIVE SUCH BENEFIT, IN EACH CASE TO THE FULLEST EXTENT NOW OR HEREAFTER PERMITTED UNDER THE LAWS OF TURKEY OR, AS THE CASE MAY BE, SUCH OTHER JURISDICTION. 
  

 90 

 (d) WITHOUT LIMITING THE GENERALITY OF ANY OF THE FOREGOING, EACH OBLIGOR AGREES,
WITHOUT PREJUDICE TO THE ENFORCEMENT OF A JUDGMENT OBTAINED IN THE COURTS OF ANY UNITED STATES FEDERAL OR NEW YORK STATE AND APPELLATE COURTS FROM ANY THEREOF, ACCORDING TO THE PROVISIONS OF ARTICLE 54 OF THE INTERNATIONAL PRIVATE AND PROCEDURE LAW
OF TURKEY (LAW NO. 5718), THAT, IN THE EVENT THAT SUCH OBLIGOR IS SUED IN A COURT IN TURKEY IN CONNECTION WITH ANY LOAN DOCUMENT, SUCH JUDGMENT SHALL CONSTITUTE CONCLUSIVE EVIDENCE OF THE EXISTENCE AND AMOUNT OF THE CLAIM AGAINST IT PURSUANT TO THE
PROVISIONS OF THE SECOND SENTENCE OF ARTICLE 287 OF CIVIL PROCEDURE CODE OF TURKEY (LAW NO. 1086) AND ARTICLES 58 AND 59 OF THE INTERNATIONAL PRIVATE AND PROCEDURE LAW OF TURKEY (LAW NO. 5718). 
 12.16 Acknowledgments. Each Obligor hereby acknowledges that: 
 (a) it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents; 
 (b) each Agent and each other Secured Party has no fiduciary relationship with or duty to it arising out of or in connection with this
Agreement or any of the other Loan Documents, and the relationship between each Agent and each other Secured Party, on the one hand, and each Borrower, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

 (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among each Obligor and the Lender. 
 12.17 USA PATRIOT Act Notice. Each Lender, the LC Issuer
and each Agent hereby notifies the Obligors that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), the United Kingdom Proceeds of Crime Act
2002 and the United Kingdom Money Laundering Regulations 2003 (as amended) or similar legislation in another country, it is required to obtain, verify and record information (and, if applicable, to provide such information particularly to an
assignee) that identifies each Obligor and each of its shareholders, directors and/or officers, which information includes or may include the name and address of each such Person, the Organic Documents of each Obligor and such other information that
will allow each Secured Party to comply with its obligations under the Patriot Act, the United Kingdom Proceeds of Crime Act 2002 and the United Kingdom Money Laundering Regulations 2003(as amended) or such similar legislation in another country.
 
 12.18 Confidential Information. Each Secured Party agrees to hold all Confidential Information provided to it
by any Obligor pursuant to this Agreement in accordance with its customary procedures for handling confidential information of this nature; provided, that nothing herein shall prevent each Lender from disclosing any such information
(a) to any Participant or Eligible Assignee (or any prospective Participant or Eligible Assignee) that agrees to be bound by this Section 12.18, (b) on a confidential basis to its employees, directors, agents, attorneys, accountants
and other professional advisers or those of any of its Affiliates, (c) upon the request or demand of any Governmental Authority, (d) in response to any order of any court or other Governmental Authority or as may otherwise be required
pursuant to any Applicable Law, (e) if requested or required to do so in connection with any litigation or similar proceeding, (f) that has been publicly disclosed without violation of this Section 12.18, (g) to the National
Association of Insurance Commissioners or any similar organization or other regulatory body or any nationally recognized rating agency, in each case, in any country or other jurisdiction, that requires access to information about the Lender’s
investment portfolio

  

 91 

 
in connection with ratings issued with respect to the Lender or (h) in connection with the exercise of any if its rights, powers or remedies hereunder or under any other Loan Document.
Except as may be required by an order of a court of competent jurisdiction and to the extent specified therein, each Lender shall not be obligated or required to return any materials furnished to it pursuant to any Loan Document by any Obligor. For
purposes of this Section, “Confidential Information” means all information received from any Obligor or any Affiliate thereof relating to any Obligor or any Affiliate thereof or their respective businesses, other than any such
information that is available to each Lender on a nonconfidential basis prior to disclosure by any Obligor or any Affiliate thereof, provided that, in the case of information received from an Obligor or any such Affiliate after the date
hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Confidential Information as provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Confidential Information as such Person would accord to its own confidential information. 
 12.19 Public Information. The Parent hereby acknowledges that each Agent may make available to the Lenders and the LC Issuer
materials and/or information provided by or on behalf of the Parent, the Borrowers or any other Obligor (collectively, the “Materials”) by posting such Materials on IntraLinks or another similar electronic system (the
“Platform”) and that certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to the Parent or its securities, and who may be
engaged in investment and other market-related activities with respect to the Parent’s securities. The Parent hereby agrees that (w) all Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked
“PUBLIC” which, at a minimum, means that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking any Materials “PUBLIC,” the Parent shall be deemed to have authorized each Agent and the
Lenders to treat such Materials as not containing any material non-public information (although the parties acknowledge that such information may still be confidential, sensitive and/or proprietary) with respect to the Parent or its securities for
purposes of United States federal and state securities laws, (y) all Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated as “Public Side Information”, and (z) each
Agent shall be entitled to treat any Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform that is not designated as “Public Side Information.” For purposes of clarification,
(i) any materials not marked “PUBLIC” shall be deemed to be material non-public information and (ii) notwithstanding the foregoing, the Parent shall be under no obligation to mark any particular Material “PUBLIC”.

 12.20 WAIVER OF JURY TRIAL. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE TO THE FULLEST EXTENT
PERMITTED BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, EACH LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN) OR ACTIONS OF THE PARTIES IN CONNECTION THEREWITH. EACH OBLIGOR ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY)
AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR EACH LENDER TO ENTER INTO THE LOAN DOCUMENTS. 
  

 92 

 12.21 Judgment Currency. If, under any Applicable Law and whether pursuant to a
judgment being made or registered against an Obligor or the bankruptcy of the Obligor or for any other reason, any payment under or in connection with this Agreement or any Loan Document is made or falls to be satisfied in a currency (the
“Payment Currency”) other than Dollars, then to the extent that the amount of such payment actually received by an Agent or any Secured Party when converted into Dollars at the applicable rate of exchange at such time, falls short
of the amount due under or in connection with this Agreement or such Loan Document, the Obligors, as a separate and independent obligation, shall indemnify and hold harmless such Agent and such Secured Party against the amount of such shortfall. For
the purposes of this Section, “rate of exchange” means the rate at which an Agent or the relevant Secured Party is able on or about the date of such payment to purchase Dollars with the Payment Currency and shall take into account any
premium and other costs of exchange actually incurred with respect thereto. 
 12.22 Australian Entities Reorganization.
Notwithstanding any other provision of this Agreement, each of Incremental Petroleum (Selmo) and PEMI may be reorganized under Bahamian law (such transaction, the “Reorganization”) provided that (i) such Reorganization
will be consummated in compliance with all applicable laws (including the laws of Australia and the Bahamas) and all necessary or desirable (in the reasonable discretion of the Agents) consents, approvals and filings shall have been obtained in
compliance with such laws, (ii) the Collateral Agent will continue at all times following such Reorganization to have under all applicable laws (and all jurisdictions as the Collateral Agent reasonably requests) a valid, legal and first
priority perfected security interest in all the assets of, and (in the case of PEMI) all of the equity interests in, Incremental Petroleum (Selmo) and PEMI for the benefit of the Secured Parties, (iii) all documents and instruments, including
all filings required by law or reasonably requested by the Collateral Agent to be executed, filed, registered or recorded to create or continue the Liens intended to be created by the Security Documents (in each case, including any supplements
thereto) and perfect such Liens to the extent required by, and with the priority required by, the Security Documents, shall have been filed, registered or recorded, (iv) each Obligor shall have obtained all consents and approvals required to be
obtained by it in connection with (a) the execution and delivery of all Security Documents (or supplements thereto) to which it is a party and the granting by it of the Liens thereunder and (b) the performance of its obligations
thereunder, (v) no Default or Event of Default exists at the time of the Reorganization or is expected to occur or continue as a result thereof, (vi) no security interest purported to be created by any Security Document shall cease to be a
valid and perfected security interest (perfected as or having the priority required by this Agreement or the relevant Security Document and subject to such limitations and restrictions as are set forth herein and therein) in the securities, assets
or properties covered thereby as a result of the Reorganization, (vii) the Guarantees of any of the Obligations shall continue to be in full force and effect, (viii) the Obligations shall continue to constitute senior secured indebtedness
of the Obligors and continue to be legal, valid and binding obligations of the parties thereto, enforceable in accordance with their terms, (ix) no Material Adverse Effect could result from the Reorganization and (x) the Lenders shall have
received legal opinions from all applicable counsel to the Obligors, acceptable in form and substance to the Lenders, confirming the matters set forth in clauses (iii), (iv), (v), (vi), (vii), (viii) and (ix) above. 
 [Remainder of page left blank intentionally.] 
  

 93 

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

			
	DMLP, LTD., as Borrower
		
	By:	 	 /s/ Matthew W. McCann

		 	Name: Matthew W. McCann
		 	Title: Chief Executive Officer
	
	Address for Notices:
	
	Trident Corporate Services (Bahamas) Limited
	1st Floor
	Kings Court
	Bay Street
	P.O. Box N-3944
	Nassau
	Bahamas
	
	Attention: Manager
	Tel: +1 242 322 6154
	Fax: +1 242 328 1064
	E-mail: bahamas@tridenttrust.com
	
	With a copy to:
	
	5910 N. Central Expressway
	Suite 1755
	Dallas, Texas 75206
	USA
	
	Attention: Jeffrey S. Mecom
	Tel.: +1 214 265 4795
	Fax: +1 214 265 4711
	Email: jeff.mecom@tapcor.com

			
	PETROLEUM EXPLORATION MEDITERRANEAN INTERNATIONAL PTY. LTD., as Borrower
		
	By:	 	 /s/ Matthew W. McCann

		 	Name: Matthew W. McCann
		 	Title: Director
	
	Address for Notices:
	
	20 Howard Street
	Perth
	Western Australia 6000
	Australia
	
	Tel: +1 214 265 4795
	Fax: +1 214 265 4711
	E-mail: jeff.mecom@tapcor.com
	
	With a copy to:
	
	5910 N. Central Expressway
	Suite 1755
	Dallas, Texas 75206
	USA
	
	Attention: Jeffrey S. Mecom
	Tel.: +1 214 265 4795
	Fax: +1 214 265 4711
	Email: jeff.mecom@tapcor.com

			
	TALON EXPLORATION, LTD., as Borrower
		
	By:	 	 /s/ Matthew W. McCann

		 	Name: Matthew W. McCann
		 	Title: Chief Executive Officer
		
	By:	 	 /s/ Jeffrey S. Mecom

		 	Name: Jeffrey S. Mecom
		 	Title: Vice President & Secretary
	
	Address for Notices:
	
	Trident Corporate Services (Bahamas) Limited
	1st Floor
	Kings Court
	Bay Street
	P.O. Box N-3944
	Nassau
	Bahamas
	
	Attention: Manager
	Tel: +1 242 322 6154
	Fax: +1 242 328 1064
	E-mail: bahamas@tridenttrust.com
	
	With a copy to:
	
	5910 N. Central Expressway
	Suite 1755
	Dallas, Texas 75206
	USA
	
	Attention: Jeffrey S. Mecom
	Tel.: +1 214 265 4795
	Fax: +1 214 265 4711
	Email: jeff.mecom@tapcor.com

			
	TRANSATLANTIC TURKEY. LTD., as Borrower
		
	By:	 	 /s/ Matthew W. McCann

		 	Name: Matthew W. McCann
		 	Title: Chief Executive Officer
		
	By:	 	  

		 	Name: Jeffrey S. Mecom
		 	Title: Vice President & Secretary
	
	Address for Notices:
	
	Trident Corporate Services (Bahamas) Limited
	1st Floor
	Kings Court
	Bay Street
	P.O. Box N-3944
	Nassau
	Bahamas
	
	Attention: Manager
	Tel: +1 242 322 6154
	Fax: +1 242 328 1064
	E-mail: bahamas@tridenttrust.com
	
	With a copy to:
	
	5910 N. Central Expressway
	Suite 1755
	Dallas, Texas 75206
	USA
	
	Attention: Jeffrey S. Mecom
	Tel.: +1 214 265 4795
	Fax: +1 214 265 4711
	Email: jeff.mecom@tapcor.com

			
	TRANSATLANTIC WORLDWIDE, LTD., as Guarantor
		
	By:	 	 /s/ Matthew W. McCann

		 	Name: Matthew W. McCann
		 	Title: Chief Executive Officer
	
	Address for Notices:
	
	Trident Corporate Services (Bahamas) Limited
	1st Floor
	Kings Court
	Bay Street
	P.O. Box N-3944
	Nassau
	Bahamas
	
	Attention: Manager
	Tel: +1 242 322 6154
	Fax: +1 242 328 1064
	E-mail: bahamas@tridenttrust.com
	
	With a copy to:
	
	5910 N. Central Expressway
	Suite 1755
	Dallas, Texas 75206
	USA
	
	Attention: Jeffrey S. Mecom
	Tel.: +1 214 265 4795
	Fax: +1 214 265 4711
	Email: jeff.mecom@tapcor.com

			
	TRANSATLANTIC PETROLEUM (USA) CORP., as Guarantor
		
	By:	 	 /s/ Matthew W. McCann

		 	Name: Matthew W. McCann
		 	Title: Chief Executive Officer

  

	
	Address for Notices:
	
	5910 N. Central Expressway
	Suite 1755
	Dallas, Texas 75206
	USA
	
	Attention: Jeffrey S. Mecom
	Tel: +1 214 265 4795
	Fax: +1 214265 4711
	E-mail: jeff.mecom@tapcor.com

			
	INCREMENTAL PETROLEUM (SELMO) PTY. LTD., as Guarantor
		
	By:	 	 /s/ Matthew W. McCann

		 	Name: Matthew W. McCann
		 	Title: Director

  

	
	Address for Notices:
	
	20 Howard Street
	Perth
	Western Australia 6000
	Australia
	
	Tel: +1 214 265 4795
	Fax: +1 214 265 4711
	E-mail: jeff.mecom@tapcor.com
	
	With a copy to:
	
	5910 N. Central Expressway
	Suite 1755
	Dallas, Texas 75206
	USA
	
	Attention: Jeffrey S. Mecom
	Tel.: +1 214 265 4795
	Fax: +1 214 265 4711
	Email: jeff.mecom@tapcor.com

			
	TRANSATLANTIC PETROLEUM LTD.,
	as Guarantor
		
	By:	 	 /s/ Matthew W. McCann

		 	Name: Matthew W. McCann
		 	Title: Chief Executive Officer

  

	
	Address for Notices:
	
	Canon’s Court
	22 Victoria Street
	Hamilton HM 12
	Bermuda
	
	Tel: +1 214 265 4795
	Fax: +1 214 265 4711
	
	With a copy to:
	
	5910 N. Central Expressway
	Suite 1755
	Dallas, Texas 75206
	USA
	
	Attention: Jeffrey S. Mecom
	Tel.: +1 214 265 4795
	Fax: +1 214 265 4711
	Email: jeff.mecom@tapcor.com
	
	With an additional copy to:
	
	Porter & Hedges, L.L.P.
	1000 Main Street, 36th Floor
	Houston, Texas 77002
	
	Attention: Nick H. Sorensen
	Tel.: +1 713-226-6677
	Fax: +1 713-226-6277
	Email: nsorensen@porterhedges.com

			
	STANDARD BANK PLC, as LC Issuer and a Lender
		
	By:	 	 /s/ Martin Revoredo

		 	Name: Martin Revoredo
		 	Title: Director
		
	By:	 	 /s/ Richard M. Noritake

		 	Name: Richard M. Noritake
		 	Title: Managing Director

  

	
	 Address for Notices:
  
 Standard Bank Plc
 c/o Standard Americas,
Inc.
 320 Park Avenue
 19th
Floor
 New York, NY 10022
 United
States of America
 Attention: Robert Anastasio
 Tel: +(1) 212 407 5061
 Fax: +(1) 212 407 5178
 Email: NewYork-BATM@standardny.com
  
 With a copy to:
  
 Standard Americas, Inc.
 320 Park Avenue
 19th Floor
 New York, NY 10022
 United States of
America
 Attention: Fred Baloutch
 Tel:
+1 (212) 407 5130
 Fax: +1 (212) 407 5178
 Email: fred.baloutch@standardny.com

			
	STANDARD BANK PLC, as Administrative Agent
		
	By:	 	 /s/ Giovanni Palazzo

		 	Name: Giovanni Palazzo
		 	Title: Manager, Agency
		
	By:	 	 /s/ Mark Heptinstall

		 	Name: Mark Heptinstall
		 	Title: Manager, Agency

  

	
	 Address for Notices:
  
 Standard Bank Plc
 20 Gresham Street
 London EC2V 7JE
 Phone: +44 (0) 20 3145 8823

 Telefax: +44 (0) 20 3189 8828
 Email: London-LoansAdmin@standardbank.com
 Attention: Head of Loans Administration
  
 Contact for credit purposes:
  
 Standard Bank Plc
 20 Gresham Street
 London EC2V 7JE 19th Floor
 Phone: +44 (0) 20 3145 8745
 Telefax: +44
(0) 20 3189 8828
 Email: London.Agency@standardbank.com
 Attention: Ann Turner Maynard

			
	STANDARD BANK PLC, as Collateral Agent
		
	By:	 	 /s/ Martin Revoredo

		 	Name: Martin Revoredo
		 	Title: Director
		
	By:	 	 /s/ Richard M. Noritake

		 	Name: Richard M. Noritake
		 	Title: Managing Director

  

	
	 Address for Notices:
  
 Standard Bank Plc
 c/o Standard Americas,
Inc.
 320 Park Avenue
 19th
Floor
 New York, NY 10022
 United
States of America
 Attention: Robert Anastasio
 Tel: +(1) 212 407 5061
 Fax: +(1) 212 407 5178
 Email: NewYork-BATM@standardny.com
  
 With a copy to:
  
 Standard Americas, Inc.
 320 Park Avenue
 19th Floor
 New York, NY 10022
 United States of
America
 Attention: Fred Baloutch
 Tel:
+1 (212) 407 5130
 Fax: +1 (212) 407 5178
 Email: fred.baloutch@standardny.com

			
	STANDARD BANK PLC, as Technical Agent
		
	By:	 	 /s/ Martin Revoredo

		 	Name: Martin Revoredo
		 	Title: Director
		
	By:	 	 /s/ Richard M. Noritake

		 	Name: Richard M. Noritake
		 	Title: Managing Director

  

	
	 Address for Notices:
  
 Standard Bank Plc
 c/o Standard Americas,
Inc.
 320 Park Avenue
 19th
Floor
 New York, NY 10022
 United
States of America
 Attention: Robert Anastasio
 Tel: +(1) 212 407 5061
 Fax: +(1) 212 407 5178
 Email: NewYork-BATM@standardny.com
  
 With a copy to:
  
 Standard Americas, Inc.
 320 Park Avenue
 19th Floor
 New York, NY 10022
 United States of
America
 Attention: Fred Baloutch
 Tel:
+1 (212) 407 5130
 Fax: +1 (212) 407 5178
 Email: fred.baloutch@standardny.com

			
	BNP PARIBAS, as Lender
		
	By:	 	 /s/ Amber Chi

		 	Name: Amber Chi
		 	Title: Director
		
	By:	 	 /s/ Christophe Nerguararian

		 	Name: Christophe Nerguararian
		 	Title:

  

			
	 Address for Notices:
  
 BNP Paribas (Suisse) SA
 Energy & Commodities Structured Debt / Middle Office
 Place de Hollande 2, Geneva
CH-1211
 Switzerland
 Attention:
Philippe Riboni / Johnny Akiki
 Tel: +41 58 212 2454 / +41 58 212 2661
 Fax: +41 58 212 2150

	 E-mail:
	 	philippe.riboni@bnpparibas.com / johnny.akiki@bnpparibas.com
	
	 With a copy to:
  
 BNP Paribas (Suisse) SA
 Energy &
Commodities Structured Debt
 Place de Hollande 2, Geneva CH-1211
 Switzerland
 Attention: Christophe Nerguararian / Amber Chi
 Tel.: +41 58 212 2932 / +41 58 212 2430
 Fax: +41 58
212 2371

	Email:	 	christophe.nerguararian@bnpparibas.com / amber.chi@bnpparibas.comSecond Amended Credit Agreement dated 6-19-2009

 Exhibit 10.3 
 SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
 Dated as of June 19, 2009

 among 
 TEXAS INDUSTRIES, INC., 
 as the Borrower, 
 BANK OF AMERICA, N.A., 
 as Administrative Agent, Swing Line Lender 
 and 
 L/C Issuer,

 UBS SECURITIES LLC, 
 as Syndication Agent, 
 WELLS FARGO BANK, NATIONAL ASSOCIATION, 
 and 
 COMERICA BANK,

 as Co-Documentation Agents, 
 and 
 The Other Lenders Party Hereto 
 BANC OF AMERICA SECURITIES LLC, 
 as 
 Sole Lead Arranger and Sole Book Manager 

 TABLE OF CONTENTS 
  

					
	 Section
	  	Page
		
	 ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	  	1
	   1.01
	    	 Defined Terms
	  	1
	   1.02
	    	 Other Interpretive Provisions
	  	32
	   1.03
	    	 Accounting Terms
	  	32
	   1.04
	    	 Rounding
	  	33
	   1.05
	    	 Times of Day
	  	33
	   1.06
	    	 Letter of Credit Amounts
	  	33
		
	 ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS
	  	33
	   2.01
	    	 Revolving Loans
	  	33
	   2.02
	    	 Borrowings, Conversions and Continuations of Loans
	  	34
	   2.03
	    	 Letters of Credit
	  	35
	   2.04
	    	 Swing Line Loans
	  	44
	   2.05
	    	 Prepayments
	  	47
	   2.06
	    	 Termination or Reduction of Commitments
	  	49
	   2.07
	    	 Repayment of Loans
	  	49
	   2.08
	    	 Interest
	  	50
	   2.09
	    	 Fees
	  	51
	   2.10
	    	 Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate
	  	51
	   2.11
	    	 Evidence of Debt
	  	52
	   2.12
	    	 Payments Generally; Administrative Agent’s Clawback
	  	53
	   2.13
	    	 Sharing of Payments by Lenders
	  	54
	   2.14
	    	 Increase in Commitments
	  	55
		
	 ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY
	  	56
	   3.01
	    	 Taxes
	  	56
	   3.02
	    	 Illegality
	  	59
	   3.03
	    	 Inability to Determine Rates
	  	59
	   3.04
	    	 Increased Costs; Reserves on Eurodollar Rate Loans
	  	60
	   3.05
	    	 Compensation for Losses
	  	61
	   3.06
	    	 Mitigation Obligations; Replacement of Lenders
	  	62
	   3.07
	    	 Survival
	  	62
		
	 ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	  	62
	   4.01
	    	 Conditions of Initial Credit Extension
	  	62
	   4.02
	    	 Conditions to all Credit Extensions
	  	65
		
	 ARTICLE V. REPRESENTATIONS AND WARRANTIES
	  	66
	   5.01
	    	 Existence, Qualification and Power; Compliance with Laws
	  	66
	   5.02
	    	 Authorization; No Contravention
	  	66
	   5.03
	    	 Governmental Authorization; Other Consents
	  	66

  

 i 

					
	   5.04
	    	 Binding Effect
	  	66
	   5.05
	    	 Financial Statements; No Material Adverse Effect; No Internal Control Event
	  	67
	   5.06
	    	 Litigation
	  	67
	   5.07
	    	 No Default
	  	67
	   5.08
	    	 Ownership of Property; Liens
	  	67
	   5.09
	    	 Environmental Compliance
	  	68
	   5.10
	    	 Insurance
	  	68
	   5.11
	    	 Taxes
	  	69
	   5.12
	    	 ERISA Compliance
	  	69
	   5.13
	    	 Subsidiaries; Equity Interests
	  	70
	   5.14
	    	 Margin Regulations; Investment Company Act
	  	70
	   5.15
	    	 Disclosure
	  	70
	   5.16
	    	 Compliance with Laws
	  	70
	   5.17
	    	 Intellectual Property; Licenses, Etc.
	  	71
	   5.18
	    	 Common Enterprise
	  	71
	   5.19
	    	 Solvent
	  	71
	   5.20
	    	 Taxpayer Identification Number
	  	71
	   5.21
	    	 Security Interests
	  	71
		
	 ARTICLE VI. AFFIRMATIVE COVENANTS
	  	72
	   6.01
	    	 Financial Statements
	  	72
	   6.02
	    	 Certificates; Other Information
	  	73
	   6.03
	    	 Notices
	  	75
	   6.04
	    	 Payment of Obligations
	  	76
	   6.05
	    	 Preservation of Existence, Etc.
	  	76
	   6.06
	    	 Maintenance of Properties
	  	76
	   6.07
	    	 Maintenance of Insurance
	  	77
	   6.08
	    	 Compliance with Laws
	  	77
	   6.09
	    	 Books and Records
	  	77
	   6.10
	    	 Inspection Rights
	  	77
	   6.11
	    	 Use of Proceeds
	  	78
	   6.12
	    	 Further Assurances
	  	78
	   6.13
	    	 Additional Subsidiaries
	  	78
	   6.14
	    	 Collateral
	  	78
	   6.15
	    	 Administration of Deposit Accounts
	  	80
		
	 ARTICLE VII. NEGATIVE COVENANTS
	  	82
	   7.01
	    	 Liens
	  	82
	   7.02
	    	 Investment
	  	82
	   7.03
	    	 Debt
	  	82
	   7.04
	    	 Fundamental Changes
	  	84
	   7.05
	    	 Dispositions
	  	84
	   7.06
	    	 Restricted Payments
	  	85
	   7.07
	    	 Change in Nature of Business
	  	85
	   7.08
	    	 Transactions with Affiliates
	  	85
	   7.09
	    	 Burdensome Agreements
	  	85

  

 ii 

					
	   7.10
	    	 Use of Proceeds
	  	86
	   7.11
	    	 Financial Covenant
	  	86
	   7.12
	    	 Sale and Leaseback
	  	86
	   7.13
	    	 Sale or Discount of Receivables
	  	86
	   7.14
	    	 Debt Modifications
	  	86
	   7.15
	    	 Debt Payments
	  	86
		
	 ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES
	  	87
	   8.01
	    	 Events of Default
	  	87
	   8.02
	    	 Remedies Upon Event of Default
	  	89
	   8.03
	    	 Application of Funds
	  	89
		
	 ARTICLE IX. ADMINISTRATIVE AGENT
	  	90
	   9.01
	    	 Appointment and Authority
	  	90
	   9.02
	    	 Rights as a Lender
	  	91
	   9.03
	    	 Exculpatory Provisions
	  	91
	   9.04
	    	 Reliance by Administrative Agent
	  	92
	   9.05
	    	 Delegation of Duties
	  	93
	   9.06
	    	 Resignation of Administrative Agent
	  	93
	   9.07
	    	 Non-Reliance on Administrative Agent and Other Lenders
	  	94
	   9.08
	    	 No Other Duties, Etc.
	  	94
	   9.09
	    	 Administrative Agent May File Proofs of Claim
	  	94
	   9.10
	    	 Collateral and Guaranty Matters
	  	95
	   9.11
	    	 Cash Management Obligations and Swap Obligations
	  	96
		
	 ARTICLE X. MISCELLANEOUS
	  	96
	 10.01
	    	 Amendments, Etc.
	  	96
	 10.02
	    	 Notices; Effectiveness; Electronic Communication
	  	97
	 10.03
	    	 No Waiver; Cumulative Remedies
	  	99
	 10.04
	    	 Expenses; Indemnity; Damage Waiver
	  	100
	 10.05
	    	 Payments Set Aside
	  	102
	 10.06
	    	 Successors and Assigns
	  	102
	 10.07
	    	 Treatment of Certain Information; Confidentiality
	  	106
	 10.08
	    	 Right of Setoff
	  	107
	 10.09
	    	 Interest Rate Limitation
	  	107
	 10.10
	    	 Counterparts; Integration; Effectiveness
	  	108
	 10.11
	    	 Survival of Representations and Warranties
	  	108
	 10.12
	    	 Severability
	  	108
	 10.13
	    	 Replacement of Lenders
	  	108
	 10.14
	    	 Governing Law; Jurisdiction; Etc.
	  	109
	 10.15
	    	 Waiver of Jury Trial
	  	110
	 10.16
	    	 No Advisory or Fiduciary Responsibility
	  	111
	 10.17
	    	 USA PATRIOT Act Notice
	  	111
	 10.18
	    	 2005 Indenture
	  	111
	 10.19
	    	 Ratification of Loan Documents
	  	111
	 10.20
	    	 ENTIRE AGREEMENT
	  	112

  

 iii 

			
	 SIGNATURES
	  	S-1

  

 iv 

			
	 SCHEDULES

		
	   1.01
	 	 Existing Letters of Credit

	   2.01
	 	 Commitments and Applicable Percentages

	   5.13
	 	 Subsidiaries; Other Equity Investments; Equity Interests in the Borrower

	   6.15
	 	 Deposit Accounts

	   7.01
	 	 Existing Liens

	   7.02(d)
	 	 Existing Investments

	   7.03(c)
	 	 Existing Debt

	 10.02
	 	 Administrative Agent’s Office; Certain Addresses for Notices

	
	 EXHIBITS

		
		 	 Form of

		
	 A
	 	 Assignment and Assumption

	 B
	 	 Compliance Certificate

	 C
	 	 Guaranty

	 D
	 	 Opinion Matters

	 E
	 	 Revolving Loan Note

	 F
	 	 Revolving Loan Notice

	 G
	 	 Swing Line Loan Notice

	 H
	 	 Swing Line Note

	 I
	 	 Borrowing Base Certificate

	 J
	 	 Security Agreement

  

 v 

 SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
 This SECOND AMENDED AND RESTATED CREDIT AGREEMENT (“Agreement”) is entered into as of June 19, 2009,
among TEXAS INDUSTRIES, INC., a Delaware corporation (the “Borrower”), each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), and BANK OF AMERICA,
N.A., as Administrative Agent, Swing Line Lender and L/C Issuer. 
 The Borrower, the Lenders and the
Administrative Agent are parties to that certain First Amended and Restated Credit Agreement, dated as of August 15, 2007 (as amended by a First Amendment dated January 28, 2008, a Second Amendment dated March 20, 2008 and a Third
Amendment dated November 21, 2008, the “Existing Credit Agreement”). 
 The parties hereto
wish to amend and restate the Existing Credit Agreement in its entirety as provided herein. 
 In consideration
of the mutual covenants and agreements herein contained, the parties hereto covenant and agree that the Existing Credit Agreement is hereby amended and restated in its entirety as follows, and do hereby further agree as follows: 
 ARTICLE I. 
 DEFINITIONS AND ACCOUNTING TERMS 
 1.01 Defined Terms. As used in this Agreement, the
following terms shall have the meanings set forth below: 
 “Accounts” has the meaning given to
such term in the UCC, including all rights to payment for goods sold or leased or for services rendered. 
 “Account Debtor” means a Person who is obligated under an Account, chattel paper or general intangible. 
 “Accounts Formula Amount” means 85% of the Value of Eligible Accounts. 
 “Acquisition” means the acquisition by any Person of (a) a majority of the Equity Interests of another Person, (b) all or substantially all of the assets of another Person or
any operating division of another Person or (c) all or substantially all of a line of business of another Person, in each case whether or not involving a merger or consolidation with such other Person. 
 “Acquisition Consideration” means the consideration given by the Borrower or any of its Subsidiaries for an
Acquisition, including but not limited to the sum of (without duplication) (a) the fair market value of any cash, property (other than Equity Interests issued in respect of such Acquisition) or services given, plus (b) the amount of any
Debt assumed, incurred or guaranteed (to the extent not otherwise included) in connection with such Acquisition by the Borrower or any of its Subsidiaries. 
  

 1 

 “Adjusted Net Earnings From Operations” means, with respect
to any fiscal period of any Person (the “subject Person”), net income of the subject Person on a consolidated basis after provision for income taxes for such fiscal period, as determined in conformity with GAAP and reported on the
financial statements for such fiscal period, excluding any and all of the following included in such net income: (a) gain, to the extent in excess of $5,000,000, or loss arising from the sale of any capital assets (including sales of surplus
operating assets and real estate); (b) gain or loss arising from any write-up or write-down in the book value of any asset; (c) earnings of any other Person, substantially all of the assets of which have been acquired by the subject Person
in any manner, to the extent realized by such other Person prior to the date of Acquisition; (d) earnings of any other Person (excluding Wholly-Owned Subsidiaries) in which the subject Person has an ownership interest unless (and only to the
extent) such earnings shall actually have been received by the subject Person in the form of cash distributions; (e) earnings of any Person to which assets of the subject Person shall have been sold, transferred, or disposed of, or into which
subject Person shall have been merged, or which has been a party with the subject Person to any consolidation or other form of reorganization, prior to the date of such transaction; (f) gain arising from the acquisition of debt or equity
securities of the subject Person or from cancellation or forgiveness of Debt; and (g) gain or loss arising from extraordinary items, as determined in conformity with GAAP, or from any other non-recurring transaction. 
 “Administrative Agent” means Bank of America in its capacity as administrative agent under any of the Loan
Documents, or any successor administrative agent. 
 “Administrative Agent’s Office” means
the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 10.02, or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders. 
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the
Administrative Agent. 
 “Affiliate” means, with respect to any Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 
 “Aggregate Commitments” means the Commitments of all Lenders. 
 “Aggregates” means all stone, sand, gravel, limestone and similar minerals, including, but not limited to, all such materials that constitute “as-extracted collateral” under the
UCC (but excluding oil and gas). 
 “Agreement” means this Second Amended and Restated Credit
Agreement. 
 “Applicable Law” means (a) in respect of any Person, all provisions of Laws
applicable to such Person, and all orders and decrees of all courts and determinations of arbitrators applicable to such Person and (b) in respect of contracts made or performed in the State of Texas, “Applicable Law” shall
also mean the laws of the United States of America, including, without limitation the foregoing, 12 USC Sections 85 and 86, as amended to the date hereof and as the

  

 2 

 
same may be amended at any time and from time to time hereafter, and any other statute of the United States of America now or at any time hereafter prescribing the maximum rates of interest on
loans and extensions of credit, and the laws of the State of Texas. 
 “Applicable Percentage”
means, with respect to each Lender at any time, the percentage (carried out to the ninth decimal place), the numerator of which is the amount of the Commitment of such Lender at such time and the denominator of which is the Aggregate Commitments at
such time; provided that if the commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02 or if the Aggregate Commitments have expired,
then the Applicable Percentage of each Lender shall be determined based on the Applicable Percentage of such Lender most recently in effect, giving effect to any subsequent assignments. The initial Applicable Percentage of each Lender is set forth
opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable. 
 “Applicable Rate” means the following percentages per annum, based upon the Leverage Ratio as set forth in the most recent Compliance Certificate received by the
Administrative Agent pursuant to Section 6.02(a): 
  

												
	 Pricing
Level
	  	 Leverage Ratio
	  	Commitment
Fee	 	 	Applicable Margin
for Eurodollar Rate
Loans and Letters
of Credit	 	 	Applicable
Margin for
Base Rate
Loans	 
	 1
	  	< 2.50 to 1.00	  	0.500	% 	 	3.500	% 	 	2.500	% 
	 2
	  	< 3.50 to 1.00 but 3 2.50 to 1.00	  	0.500	% 	 	3.750	% 	 	2.750	% 
	 3
	  	< 4.00 to 1.00 but 3 3.50 to 1.00	  	0.500	% 	 	3.750	% 	 	2.750	% 
	 4
	  	< 4.50 to 1.00 but 3 4.00 to 1.00	  	0.750	% 	 	3.750	% 	 	2.750	% 
	 5
	  	3 4.50 to 1.00	  	0.750	% 	 	4.000	% 	 	3.000	% 

 Any increase or decrease in the Applicable Rate resulting from a change in the
Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(a) with respect to the annual or quarterly financial statements delivered
under Section 6.01(a) or (b); provided, however, that if a Compliance Certificate is not delivered when due in accordance with such Section, then Pricing Level 5 shall apply as of the first Business Day after the
date on which such Compliance Certificate was required to have been delivered. The Applicable Rate in effect from the Closing Date through and including the date the Compliance Certificate is delivered pursuant to Section 6.02(a) for the
fiscal year ending May 31, 2009 shall be determined based upon Pricing Level 3. 
 “Approved
Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
  

 3 

 “Arranger” means Banc of America Securities LLC, in its
capacity as sole lead arranger and sole book manager. 
 “Assignee Group” means two or more
Eligible Assignees that are Affiliates of one another or two or more Approved Funds managed by the same investment advisor. 
 “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by
Section 10.06(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit A or any other form approved by the Administrative Agent. 
 “Audited Financial Statements” means the audited consolidated balance sheet of the Borrower and its Subsidiaries for the fiscal year ended May 31, 2008, and the
related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year of the Borrower and its Subsidiaries, including the notes thereto. 
 “Auto-Extension Letter of Credit” has the meaning specified in Section 2.03(b)(iii).

 “Availability” means, as of any date of determination, the remainder of (a) the
Borrowing Base as at such date minus (b) the Total Outstandings as at such date. 
 “Availability
Period” means the period from and including the Closing Date to the earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments pursuant to Section 2.06, and (c) the date of
termination of the commitment of each Lender to make Revolving Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to Section 8.02. 
 “Availability Reserve” means the sum (without duplication) of (a) the Inventory Reserve; (b) the Rent and Charges Reserve; (c) the Bank Product
Reserve; (d) the Tax Reserve; (e) the Royalty Reserve; (f) the Dilution Reserve; (g) the Rolling Stock Reserve, (h) the aggregate amount of liabilities that are secured by Liens upon Borrowing Base Collateral that are senior
to the Administrative Agent’s Liens (but imposition of any such reserve shall not waive an Event of Default arising therefrom); and (i) such additional reserves, in such amounts and with respect to such matters, as the Administrative Agent
in its Credit Judgment may elect to impose from time to time. 
 “Bank of America” means Bank
of America, N.A. and its successors. 
 “Bank Product Reserve” means the aggregate amount of
reserves established by the Administrative Agent from time to time in its Credit Judgment in respect of (a) Cash Management Obligations, (b) Swap Obligations, and (c) other banking products or services as may be requested by the
Borrower or any of its Subsidiaries, other than Letters of Credit. 
 “Base
Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate in effect for such day plus  1/2 of 1%, (b) the rate of interest in effect for such day as
publicly announced from time to time by Bank of America as its “prime rate”, and (c) the rate of interest in effect for such day under this Agreement for a Borrowing of a 

  

 4 

 
Eurodollar Rate Loan (exclusive of the Applicable Rate) with an Interest Period of one month beginning on such day (or if such day is not a Business Day, the immediately preceding Business Day)
plus 1%. The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing
some loans, which may be priced at, above, or below such announced rate. Any change in the Federal Funds Rate, the prime rate or the rate for such Eurodollar Rate Loans shall be effective from and including the effective date of such change in the
Federal Funds Rate, the prime rate or the rate for such Eurodollar Rate Loans. 
 “Base Rate
Loan” means a Loan that bears interest based on the Base Rate. 
 “Borrower” has the
meaning specified in the introductory paragraph hereto. 
 “Borrower Materials” has the meaning
specified in Section 6.02. 
 “Borrowing” means a Revolving Borrowing or a Swing
Line Borrowing, as the context may require. 
 “Borrowing Base” means, as of any date of
determination, an amount equal to the lesser of (a) the Aggregate Commitments; or (b) the sum of the Accounts Formula Amount, plus the Inventory Formula Amount, plus the Rolling Stock Formula Amount, minus the Availability Reserve.

 “Borrowing Base Certificate” means a certificate substantially in the form of Exhibit
I. 
 “Borrowing Base Collateral” means Accounts, Inventory and Eligible Rolling Stock.

 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial
banks are authorized to close under the Laws of, or are in fact closed in, the state where the Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate Loan, means any such day on which dealings in Dollar
deposits are conducted by and between banks in the London interbank eurodollar market. 
 “Capital
Expenditures” means all liabilities incurred, expenditures made or payments due (whether or not made) by the Borrower or any of its Subsidiaries that are required to be accounted for as capital expenditures under GAAP. 
 “Capital Lease Obligations” means, for any Person, the obligations of such Person to pay rent or other
amounts under a lease of (or other agreement conveying the right to use) real and/or personal property, which obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person under GAAP. For purposes
of this Agreement, the amount of such Capital Lease Obligations shall be the capitalized amount thereof, determined in accordance with GAAP. 
 “Cash Collateralize” has the meaning specified in Section 2.03(g). 
  

 5 

 “Cash Equivalents” means: (a) United States dollars;
(b) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof)
maturing, unless such securities are deposited to defease any Debt, not more than twelve months from the date of acquisition; (c) certificates of deposit and eurodollar time deposits with maturities of twelve months or less from the date of
acquisition, bankers’ acceptances with maturities not exceeding twelve months and overnight bank deposits, in each case, with any domestic commercial bank having capital and surplus in excess of $500,000,000 and a rating at the time of
acquisition thereof of P-1 or better from Moody’s or A-1 or better from S&P; (d) repurchase obligations with a term of not more than seven days for underlying securities of the types described in clauses (b) and (c) above
entered into with any financial institution meeting the qualifications specified in clause (c) above; (e) commercial paper having the highest rating obtainable from Moody’s or S&P and in each case maturing within six months after
the date of acquisition; (f) securities issued and fully guaranteed by any state, commonwealth or territory of the United States of America, or by any political subdivision or taxing authority thereof, rated at least “A” by
Moody’s or S&P and having maturities of not more than twelve months from the date of acquisition; and (g) money market funds at least 95% of the assets of which constitute Cash Equivalents of the kinds described in clauses
(a) through (f) of this definition. 
 “Cash Management Documents” means all
agreements, instruments and other documents entered into with respect to Cash Management Obligations. 
 “Cash Management Obligations” means, with respect to any Lender or an Affiliate thereof, any obligations owed to such Person by the Borrower or any of its Subsidiaries which arise as a direct result of (a) commercial
credit card and merchant card services provided by such Lender or its Affiliate to the Borrower or any such Subsidiary, or (b) the deposit, collection and other cash management, treasury or deposit services provided by such Lender or its
Affiliate to the Borrower or any such Subsidiary, including without limitation all of the obligations of the Borrower or any of its Subsidiaries to such Lender or its Affiliate for overdrafts, for returned checks and other returned items and for
credit extended under, or as a result of, cash management, treasury and deposit agreements. 
 “Change
in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any Law, (b) any change in any Law, or in the administration, interpretation or application thereof by
any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of Law) by any Governmental Authority. 
 “Change of Control” means (a) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a
series of related transactions, of all or substantially all of the properties or assets of the Borrower and its Subsidiaries, taken as a whole, to any “person” or “group” (as such terms are used for purposes of Sections 13(d) and
14(d) of the Securities Exchange Act, whether or not applicable), (b) any “person” or “group” (as such terms are used for purposes of Sections 13(d) and 14(d) of the Securities Exchange Act, whether or not applicable) is or
becomes the “beneficial owner”, directly or indirectly, of more than 35% of the total voting power in the aggregate of all classes

  

 6 

 
of Equity Interests of the Borrower then outstanding normally entitled to vote in elections of directors, (c) during any period of 24 consecutive months after the Closing Date, individuals
who at the beginning of such 24-month period constituted the board of directors of the Borrower (together with any new directors whose election by such board of directors or whose nomination for election by the shareholders of the Borrower was
approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority
of the board of directors of the Borrower then in office, or (d) any “Change of Control” as defined in the Senior Notes shall occur in respect thereof. 
 “Closing Date” means the date of this Agreement, which the parties hereto acknowledge is the date that all the conditions precedent in Section 4.01 are
satisfied or waived in accordance with Section 10.01. 
 “Co-Documentation Agents”
means Wells Fargo Bank, National Association and Comerica Bank, in their capacity as co-documentation agents under any of the Loan Documents, or any successors thereto. 
 “Code” means the Internal Revenue Code of 1986. 
 “Collateral” has the meaning specified in Section 6.14 of this Agreement. 
 “Collateral Documents” means, collectively, the Security Agreement and any other agreement or document, together with all related financing statements and stock powers, executed and
delivered in connection with this Agreement to create or perfect a Lien on any Collateral in favor of the Administrative Agent for the benefit of the Secured Parties. 
 “Commitment” means, as to each Lender, its obligation to (a) make Loans to the Borrower pursuant to Section 2.01, (b) purchase participations
in L/C Obligations, and (c) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01, or in the
Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement. 
 “Commitment Fee” has the meaning specified in Section 2.09(a). 
 “Compliance Certificate” means a certificate substantially in the form of Exhibit B. 
 “Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of
any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 
  

 7 

 “Credit Extension” means each of the following:
(a) Revolving Borrowing, (b) an L/C Credit Extension, and (c) a Swing Line Borrowing. 
 “Credit Judgment” means the Administrative Agent’s judgment exercised in good faith, based upon its consideration of any factor that it believes (a) could adversely affect the quantity, quality, mix or value of
Borrowing Base Collateral (including any Applicable Law that may inhibit collection of an Account), the enforceability or priority of the Administrative Agent’s Lien, or the amount that the Administrative Agent and Lenders could receive in
liquidation of any Collateral; (b) suggests that any collateral report or financial information delivered by any Loan Party is incomplete, inaccurate or misleading in any material respect; (c) materially increases the likelihood of any
proceeding under Debtor Relief Laws involving a Loan Party; or (d) creates or could result in a Default or Event of Default. In exercising such judgment, the Administrative Agent may consider any factors that could increase the credit risk of
lending to the Borrower on the security of the Collateral. 
 “Debt” means, with respect to any
Person, without duplication, (a) debt of such Person for borrowed money, (b) all debt of such Person evidenced by bonds, notes, debentures or similar instruments or bankers’ acceptances or letters of credit (or reimbursement
obligations in respect thereof); (c) the balance deferred and unpaid by such Person of the purchase price of any property which purchase price is due more than six months after the date of placing such property in service or taking delivery and
title thereto, except any such balance that constitutes an accrued expense or trade payable, (d) all obligations of others secured by any Lien (other than Liens referred to in clauses (b), (c), (d), (e), (g) or (i) of the definition
of Permitted Liens) on any property or asset owned by such Person, whether or not the obligation secured thereby shall have been assumed, (e) to the extent not otherwise included, all Capitalized Lease Obligations of such Person, all
obligations of such Person with respect to leases constituting part of a sale and leaseback arrangement, all Guaranties by such Person of Debt of other Persons, and all obligations of such Person under Swap Contracts, (f) any “withdrawal
liability” of such Person, as such term is defined under part I of Subtitle E of Title IV of ERISA, (g) all Synthetic Lease Obligations of such Person, and (h) all preferred stock issued by such Person and required by the terms
thereof to be redeemed, or for which mandatory sinking fund payments are due, by a fixed date prior to one year after the Maturity Date. 
 “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally. 
 “Default” means any event or condition that constitutes an Event of Default or that, with the giving of any
notice, the passage of time, or both, would be an Event of Default. 
 “Default Rate” means
(a) when used with respect to Obligations other than Letter of Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate for Base Rate Loans plus (iii) 2% per annum;
provided, however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate)

  

 8 

 
otherwise applicable to such Loan plus 2% per annum, and (b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus 2% per annum. 
 “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Loans,
participations in L/C Obligations or participations in Swing Line Loans required to be funded by it hereunder within one Business Day of the date required to be funded by it hereunder unless such failure has been cured, (b) has otherwise failed
to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within one Business Day of the date when due, unless the subject of a good faith dispute or unless such failure has been cured, or
(c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding. 
 “Depreciation” means depreciation and depletion expense as determined in accordance with GAAP. 
 “Dilution Reserve” means a reserve established by the Administrative Agent from time to time in an amount equal to the amount by which bad debt write-downs or write-offs, discounts,
returns, promotions, credits, credit memos and other dilutive items with respect to Accounts during the previous 12 months exceeds 5.0% of gross sales for such period. 
 “Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction) of any
property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith, but excluding licenses of intellectual property and
leases of real property entered into in the ordinary course of business and the granting of Permitted Liens. 
 “Dividend” means, as to any Person, any declaration or payment of any dividend (other than a stock dividend) on, or the making of any distribution to any holder of, any shares of capital stock (or other equity or beneficial
interest) of such Person (other than salaries, bonuses and loans to employees made or paid in the ordinary course of business). 
 “Dollar” and “$” mean lawful money of the United States. 
 “Domestic Subsidiary” means any Subsidiary that is organized under the laws of any political subdivision of the United States. 
 “Dominion Account” means a special account established by the Borrower at Bank of America, over which the
Administrative Agent has, or is entitled to have immediately upon the occurrence of a Trigger Period, exclusive control for withdrawal purposes (except as otherwise provided in Section 2.07(c)). 
 “EBITDA” means, for any period, determined in accordance with GAAP on a consolidated basis for the Borrower
and its Subsidiaries, the sum of (a) Adjusted Net Earnings From Operations for such period, plus (b) to the extent deducted in the determination of Adjusted Net Earnings from Operations for such period, (i) Interest Expense, plus
(ii) federal, state, local and foreign income taxes, plus (iii) Depreciation, amortization and other non-recurring non-cash

  

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charges (excluding any non-cash charge to the extent that it represents an accrual of or reserve for cash payments in any future period), plus (iv) non-cash charges in respect of stock based
compensation expenses (excluding any such non-cash charge to the extent that it represents an accrual of or reserve for cash payments in any future period), minus (c) to the extent included in the determination of Adjusted Net Earnings from
Operations for such period, non-cash credits. 
 “Eligible Account” means an Account owing to
any Loan Party that arises in the ordinary course of business from the sale of goods or rendition of services, is payable in Dollars and is deemed by the Administrative Agent, in its Credit Judgment, to be an Eligible Account. Without limiting the
foregoing, no Account shall be an Eligible Account if (a) it is unpaid for more than the earlier of 30 days after the original due date or 90 days after the original invoice date; (b) 50% or more of the Accounts owing by the Account Debtor
are not Eligible Accounts under the foregoing clause; (c) when aggregated with other Accounts owing by the Account Debtor, it exceeds 5.0% of the aggregate Eligible Accounts (or such higher percentage, not to exceed 15.0%, as the Administrative
Agent may establish for the Account Debtor from time to time); (d) it does not conform in any material respect with a covenant or representation herein or in the Security Agreement; (e) it is owing by a creditor or supplier, or is
otherwise subject to a potential offset, counterclaim, dispute, deduction, discount, recoupment, reserve, defense, chargeback, credit or allowance (but ineligibility shall be limited to the amount thereof); (f) a proceeding under Debtor Relief
Laws has been commenced by or against the Account Debtor; or the Account Debtor has suspended or ceased doing business, is liquidating, dissolving or winding up its affairs, or is not Solvent; or the applicable Loan Party is not able to bring suit
or enforce remedies against the Account Debtor through judicial process; (g) the Account Debtor is organized or has its principal offices or assets outside the United States or Canada; (h) it is owing by a Government Authority, unless the
Account Debtor is the United States or any department, agency or instrumentality thereof and the Account has been assigned to the Administrative Agent in compliance with the Assignment of Claims Act; (i) it is not subject to a duly perfected,
first priority Lien in favor of the Administrative Agent, or is subject to any other Lien except for Permitted Liens that are subordinate to the Administrative Agent’s Lien and Liens for Taxes not yet due and payable; (j) the goods giving
rise to it have not been delivered to and accepted by the Account Debtor, the services giving rise to it have not been accepted by the Account Debtor, or it otherwise does not represent a final sale; (k) it is evidenced by chattel paper or an
instrument of any kind, or has been reduced to judgment; (l) its payment has been extended, the Account Debtor has made a partial payment, or it arises from a sale on a cash-on-delivery basis; (m) it arises from a sale to an Affiliate,
from a sale on a bill-and-hold, guaranteed sale, sale-or-return, sale-on-approval, consignment, or other repurchase or return basis, or from a sale to a Person for personal, family or household purposes; (n) it represents a progress billing or
retainage; or (o) it includes a billing for interest, fees or late charges, but ineligibility shall be limited to the extent thereof. In calculating delinquent portions of Accounts under clauses (a) and (b), credit balances owing to
Account Debtors and more than 90 days old shall not be netted against such Accounts. 
 “Eligible
Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d) any other Person (other than a natural person) approved by (i) the Administrative Agent, the L/C Issuer and the Swing Line
Lender, and (ii) unless an Event of Default has occurred and is continuing, the Borrower (each such approval not to be unreasonably withheld or

  

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delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or Subsidiaries. 
 “Eligible Inventory” means Inventory owned by a Loan Party that the Administrative Agent, in its
Credit Judgment, deems to be Eligible Inventory. Without limiting the foregoing, no Inventory shall be Eligible Inventory unless it (a) is finished goods, raw materials (including Aggregates), cement, coal or clinker, and not work-in-process
(other than cement or clinker), packaging or shipping materials, labels, samples, display items, bags, replacement parts or manufacturing supplies (other than coal and unless otherwise permitted by the Administrative Agent in its discretion);
(b) is not held on consignment, nor subject to any deposit or downpayment; (c) is in new and saleable condition (if held for sale rather than use) and is not damaged, defective, shopworn or otherwise unfit for sale; (d) is not
slow-moving, obsolete or unmerchantable, and does not constitute returned or repossessed goods; (e) meets all standards imposed by any Governmental Authority, and does not constitute hazardous materials under any Environmental Law;
(f) conforms in all material respects with the covenants and representations herein and in the Security Agreement; (g) is subject to the Administrative Agent’s duly perfected, first priority Lien, and no other Lien except for
Permitted Liens that are subordinate to the Administrative Agent’s Lien and Liens for Taxes not yet due and payable; (h) is within the continental United States, is not in transit except between locations of the Loan Parties, and is not
consigned to any Person; (i) is not subject to any warehouse receipt or negotiable document; (j) is not subject to any license or other arrangement that restricts any Loan Party’s or the Administrative Agent’s right to dispose of
such Inventory, unless the Administrative Agent has received an appropriate Lien Waiver; (k) is not located on leased premises or in the possession of a warehouseman, processor, repairman, mechanic, shipper, freight forwarder or other Person,
unless the lessor or such Person has delivered a Lien Waiver or an appropriate Rent and Charges Reserve has been established; (l) is not located at a site where the Inventory Formula Amount calculated for such site individually is less than
$50,000; and (m) is reflected in the details of a current perpetual inventory report satisfactory to the Administrative Agent. Unless otherwise permitted by the Administrative Agent in its Credit Judgment, 5.0% of all otherwise Eligible
Inventory which is stored in piles and the quantity of which is measured by an approximation method shall be deemed ineligible. 
 “Eligible Rolling Stock” means Rolling Stock owned by a Loan Party that the Administrative Agent, in its Credit Judgment, deems to be Eligible Rolling Stock. Without limiting the
foregoing, no Rolling Stock shall be Eligible Rolling Stock unless it (a) is subject to the Administrative Agent’s duly perfected, first priority Lien and no other Lien except for (i) Permitted Liens that are subordinate to the
Administrative Agent’s Lien, (ii) Liens for Taxes not yet due and payable, and (iii) statutory Liens securing amounts not yet due and payable in respect of repairs; (b) conforms in all material respects with the covenants and
representations herein and in the Security Agreement; (c) is in good working order, condition and repair (ordinary wear and tear excepted); (d) is used or usable in the ordinary course of business of a Loan Party; (e) is located in
the continental United States; (f) satisfies in all material respects all Applicable Law with respect to such Rolling Stock; (g) is not subject to any licensing or similar requirement that would limit the right of the Administrative Agent
to sell or otherwise dispose of such Rolling Stock; (h) is insured in accordance with the requirements of this Agreement; (i) in the case of a truck, tractor, trailer or other motor vehicle used on the highways or in interstate

  

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commerce, (i) is evidenced by a certificate of title in the name of a Loan Party and in the possession of the Administrative Agent, (ii) is properly registered in the name of a Loan
Party in one of the states of the United States, and (iii) the Administrative Agent’s Lien is noted on the certificate of title therefor; and (j) in the case of a railcar or locomotive used in interstate commerce, (i) is properly
registered in the name of a Loan Party with the Association of American Railroads, (ii) is covered by a reporting mark issued by the Association of American Railroads and provided to the Administrative Agent, and (iii) the Administrative
Agent’s Lien thereon is on file with the Surface Transportation Board of the U.S. Department of Transportation. 
 “Enforcement Action” means any action to enforce any Secured Obligations or Loan Documents or to realize upon any Collateral (whether by judicial action, self-help, notification of Account Debtors, exercise of setoff or
recoupment, or otherwise). 
 “Environmental Laws” means any and all Federal, state, local, and
foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems. 
 “Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Borrower, any other Loan Party or any of their respective Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other
consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 
 “Environmental Permit” means any permit, license, order, approval or other authorization under Environmental Law material to business of the Borrower or any Subsidiary. 
 “Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other
ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities
convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all
of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any
date of determination. 
 “ERISA” means the Employee Retirement Income Security Act of 1974.

  

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 “ERISA Affiliate” means any trade or business (whether or
not incorporated) under common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

 “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that
is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization;
(d) the filing of a notice of intent to terminate a Pension Plan, the treatment of a Pension Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or
Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition
of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate. 
 “Eurodollar Rate” means, for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum 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 Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period. If such rate is not available at such time for any reason,
then the “Eurodollar Rate” for such Interest Period shall be the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in
the approximate amount of the Eurodollar Rate Loan being made, continued or converted by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch to major banks in the London
interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period. 
 “Eurodollar Rate Loan” means a Loan that bears interest at a rate based on the Eurodollar Rate. 
 “Event of Default” has the meaning specified in Section 8.01. 
 “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the L/C Issuer or any other
recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however denominated, including Texas “margin” or “gross receipts”
tax), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized or in which its principal office is located or, in the case

  

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of any Lender, in which its applicable Lending Office is located, (b) any branch profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which the
Borrower is located and (c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 10.13), any withholding tax that is imposed on amounts payable to such Foreign Lender at the
time such Foreign Lender becomes a party hereto (or designates a new Lending Office) or is attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to provide the documentation described in
Section 3.01(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 3.01(a). 
 “Existing Credit Agreement”
has the meaning specified in the second introductory paragraph hereto. 
 “Existing Letters of
Credit” means the letters of credit set forth on Schedule 1.01. 
 “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on
such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions
on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward,
if necessary, to a whole multiple of  1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by the Administrative Agent. 
 “Fee Letter” means the letter agreement, dated June 19, 2009 among the Borrower, the Administrative Agent and the Arranger. 
 “Fixed Charge Coverage Ratio” means the ratio, determined on a consolidated basis for the Borrower and its Subsidiaries for the most recent twelve months, of (a) EBITDA minus
Capital Expenditures (except for Capital Expenditures (i) financed with borrowed money other than Loans or (ii) paid during the fiscal year ended May 31, 2009 for capital improvements at the Borrower’s facilities known as Oro
Grande and Hunter (provided, that up to $10,000,000 of Capital Expenditures incurred prior to May 31, 2009 for improvements at such facilities may be paid following such date and still be excluded from Capital Expenditures for the purposes of
this definition)) and cash taxes paid, to (b) Fixed Charges. 
 “Fixed Charges” means the
sum of (a) Interest Expense (other than payment-in-kind), (b) principal payments made on borrowed money (including the principal portion of payments in respect of Capital Lease Obligations) other than Loans, (c) Restricted Payments
(other than Dividends payable to the Borrower or a Guarantor or payable solely in stock) made, and (d) the Rolling Stock Depreciation Amount. 
  

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 “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 Subsidiary” means each Subsidiary of the Borrower which is organized under the laws
of a jurisdiction other than the United States of America or any state or commonwealth thereof. 
 “FRB” means the Board of Governors of the Federal Reserve System of the United States. 
 “Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its
activities. 
 “GAAP” means generally accepted accounting principles in the United States set
forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be
approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied. 
 “Governmental Authority” means the government of the United States or any other nation, or of any political
subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank). 
 “Granting Lender” has the meaning specified in Section 10.06(h). 
 “Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Debt or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Debt or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Debt or other obligation of the payment or performance of
such Debt or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Debt
or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Debt or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof
(in whole or in part), or (b) any Lien on any assets of such Person securing any Debt or other obligation of any other Person, whether or not such Debt or other obligation is assumed by such

  

 15 

 
Person (or any right, contingent or otherwise, of any holder of such Debt to obtain any such Lien). The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable
amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in
good faith. The term “Guarantee” as a verb has a corresponding meaning. 
 “Guarantied
Obligations” means, collectively, (a) the Obligations, (b) all Swap Obligations owed to any Guarantied Party, (c) all Cash Management Obligations, (d) any and all out-of-pocket expenses (including, without limitation,
expenses and reasonable counsel fees and expenses of any Guarantied Party) incurred by any Guarantied Party in enforcing its rights under this Agreement, any other Loan Document, or any Swap Contract or in respect of any Cash Management Obligations,
and (e) all present and future amounts in respect of the foregoing that would become due but for the operation of any provision of Debtor Relief Laws, and all present and future accrued and unpaid interest in respect of the foregoing,
including, without limitation, post-petition interest if any Loan Party voluntarily or involuntarily becomes subject to any Debtor Relief Laws. 
 “Guarantied Parties” means, collectively, (a) the Administrative Agent, (b) the Lenders, (c) any Lender or any Affiliate of any Lender that is a party to any Swap Contract
with the Borrower or any Subsidiary of the Borrower, (d) any Lender or any Affiliate of any Lender that is owed any Cash Management Obligation (provided that at the time such Cash Management Obligations arose such Lender is a party to the
Credit Agreement), and (e) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document; provided that any Person that ceases to be a Lender (and any Affiliate of such Person) shall be a Guarantied
Party only with respect to transactions under Swap Contracts that were entered into during or prior to the time that such Person was a Lender. 
 “Guarantors” means, collectively, each Material Domestic Subsidiary including, without limitation, each Subsidiary listed on Schedule 5.13 hereto. 
 “Guaranty” means the Guaranty made by the Guarantors, substantially in the form of Exhibit C, and
shall include any Guaranty Supplement executed thereto and defined therein. 
 “Hazardous
Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law. 
 “Highest Lawful Rate” means at the particular time in question the maximum rate of interest which, under Applicable Law, any Lender is then permitted to charge on the Obligations. If the
maximum rate of interest which, under Applicable Law, any Lender is permitted to charge on the Obligations shall change after the date hereof, the Highest Lawful Rate shall be automatically increased or decreased, as the case may be, from time to
time as of the effective time of each change in the Highest Lawful Rate without notice to the Borrower. For purposes of

  

 16 

 
determining the Highest Lawful Rate under Applicable Law, on each day, if any, that Chapter 303 of the Texas Finance Code establishes the Highest Lawful Rate, such rate shall be the weekly
ceiling computed in accordance with Section 303.003 for that day. 
 “Honor Date” has the
meaning specified in Section 2.03(c)(i). 
 “Impacted Lender” means (a) a
Defaulting Lender or (b) a Lender as to which (i) the L/C Issuer has a good faith belief that such Lender has defaulted in fulfilling its obligations under one or more syndicated credit facilities or (ii) an entity that Controls such
Lender has been deemed insolvent or becomes subject to any Debtor Relief Laws. 
 “Increase Effective
Date” has the meaning specified in Section 2.14(d). 
 “Indemnified Taxes”
means Taxes other than Excluded Taxes. 
 “Indemnitees” has the meaning specified in
Section 10.04(b). 
 “Information” has the meaning specified in
Section 10.07. 
 “Interest Expense” means, for any period of calculation,
calculated for the Borrower and its Subsidiaries on a consolidated basis determined in accordance with GAAP, interest expense (including interest expense pursuant to Capitalized Lease Obligations) for such period. 
 “Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the last day of each
Interest Period applicable to such Loan and the Maturity Date; provided, however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the respective dates that fall every three months after the beginning of
such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the first Business Day of each month and the Maturity Date. 
 “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the date such Eurodollar
Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and ending on the date one, two, three or six months thereafter, as selected by the Borrower in its Revolving Loan Notice; provided that: 
 (i) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the
next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day; 
 (ii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and 
 (iii) no Interest Period shall extend beyond the Maturity Date. 
  

 17 

 “Internal Control Event” means a material weakness in, or
material fraud that involves management or other employees who have a significant role in, the Borrower’s internal controls over financial reporting, in each case as described in the Securities Laws. 
 “Inventory” has the meaning given to such term in the UCC, including all goods intended for sale, lease,
display or demonstration; all work in process; and all raw materials (including Aggregates), and other materials and supplies of any kind that are or could be used in connection with the manufacture, printing, packing, shipping, advertising, sale,
lease or furnishing of such goods, or otherwise used or consumed in the Borrower’s business (but excluding equipment). 
 “Inventory Formula Amount” means the lesser of (i) 65% of the Value of Eligible Inventory; or (ii) 85% of the NOLV Percentage of the Value of Eligible Inventory. 
 “Inventory Reserve” means a reserve established by the Administrative Agent from time to time in its Credit
Judgment to reflect factors that may negatively impact the Value of Inventory, including change in salability, obsolescence, seasonality, theft, shrinkage, imbalance, change in composition or mix, markdowns and vendor chargebacks. 
 “Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person of or
in another Person, whether by means of (a) the purchase or other acquisition of capital stock or other securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other
acquisition of any other debt or Equity Interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor Guarantees Debt of such other Person, or (c) the
purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute a business unit. For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested,
without adjustment for subsequent increases or decreases in the value of such Investment. 
 “IP
Rights” has the meaning specified in Section 5.17. 
 “IRS” means the
United States Internal Revenue Service. 
 “ISP” means, with respect to any Letter of Credit,
the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance). 
 “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit Application, and any
other document, agreement and instrument entered into by the L/C Issuer and the Borrower or in favor of the L/C Issuer and relating to any such Letter of Credit. 
 “Laws” means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative
orders, directed duties, requests, licenses, authorizations and

  

 18 

 
permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law. 
 “L/C Advance” means, with respect to each Lender, such Lender’s funding of its participation in any L/C Borrowing in accordance with its Applicable Percentage.

 “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter of
Credit which has not been reimbursed on the date when made or refinanced as a Revolving Borrowing. 
 “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the increase of the amount thereof. 
 “L/C Issuer” means Bank of America in its capacity as issuer of Letters of Credit hereunder, or any
successor issuer of Letters of Credit hereunder. 
 “L/C Obligations” means, as at any date of
determination, the aggregate amount available to be drawn under all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts, including all L/C Borrowings, plus all fees and other amounts due and owing with respect
to Letters of Credit. For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06. For all purposes of this Agreement, if
on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the
amount so remaining available to be drawn. 
 “Lender” has the meaning specified in the
introductory paragraph hereto and, as the context requires, includes the Swing Line Lender. 
 “Lending
Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Borrower and the
Administrative Agent. 
 “Letter of Credit” means any letter of credit issued hereunder, and
shall include the Existing Letters of Credit. A Letter of Credit may be a commercial letter of credit or a standby letter of credit. 
 “Letter of Credit Application” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer. 

“Letter of Credit Expiration Date” means the day that is seven days prior to the Maturity Date then in
effect (or, if such day is not a Business Day, the next preceding Business Day). 
 “Letter of Credit
Fee” has the meaning specified in Section 2.03(i). 
 “Letter of Credit
Sublimit” means an amount equal to $50,000,000. The Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Commitments. 
  

 19 

 “Leverage Ratio” means, as of any date of determination,
for the Borrower and its Subsidiaries consolidated in accordance with GAAP, the ratio of (a) Total Debt as of such date of determination to (b) EBITDA for the most recent four consecutive fiscal quarters ending on or before such date of
determination. 
 “Lien” means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or
other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing). 
 “Lien Waiver” means an agreement, in form and substance satisfactory to the Administrative Agent, by which
(a) for any material Borrowing Base Collateral located on leased premises, the lessor waives or subordinates any Lien it may have on such Collateral, and agrees to permit the Administrative Agent to enter upon the premises and remove such
Collateral or to use the premises to store or dispose of such Collateral; (b) for any material Borrowing Base Collateral held by a warehouseman, processor, shipper, customs broker or freight forwarder, such Person waives or subordinates any
Lien it may have on such Collateral, agrees to hold any documents in its possession relating to such Collateral as agent for the Administrative Agent, and agrees to deliver such Collateral to the Administrative Agent upon request; (c) for any
material Borrowing Base Collateral held by a repairman, mechanic or bailee, such Person acknowledges the Administrative Agent’s Lien, waives or subordinates any Lien it may have on such Collateral, and agrees to deliver such Collateral to the
Administrative Agent upon request; and (d) for any material Borrowing Base Collateral subject to a licensor’s intellectual property rights, the licensor grants to the Administrative Agent the right, vis-à-vis such licensor, to
enforce the Administrative Agent’s Liens with respect to such Collateral, including the right to dispose of it with the benefit of the intellectual property, whether or not a default exists under any applicable license. 
 “Loan” means an extension of credit by a Lender to the Borrower under Article II in the form of a
Revolving Loan or a Swing Line Loan. 
 “Loan Documents” means this Agreement, each Note, each
Issuer Document, the Fee Letter, the Guaranty, the Collateral Documents, and any other agreement or document executed, delivered or performable by any Loan Party in connection herewith. 
 “Loan Parties” means, collectively, the Borrower and each Guarantor. 
 “Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect upon,
the operations, business, properties, liabilities (actual or contingent) or condition (financial or otherwise) of the Borrower or the Borrower and its Subsidiaries taken as a whole; (b) a material impairment of the ability of the Loan Parties,
taken as a whole, to perform their obligations under the Loan Documents; (c) a material adverse effect upon the legality, validity, binding effect or enforceability against any Loan Party of any Loan Document to which it is a party; or
(d) a material adverse effect on the validity, perfection or priority of a Lien in favor of

  

 20 

 
the Administrative Agent for the benefit of the Secured Parties on any material portion of the Collateral. 
 “Material Domestic Subsidiary” means any Domestic Subsidiary that has assets in excess of $10,000. 
 “Maturity Date” means (a) August 15, 2012 or (b) such earlier date as (i) the
Obligations become due and payable pursuant to this Agreement (whether by acceleration or otherwise) or (ii) there shall exist an Event of Default under Section 8.01(f) of this Agreement. 
 “Minimum Covenant Threshold” means (a) the Fixed Charge Coverage Ratio is greater than 1.10 to 1.00,
and (b) Availability exceeds the greater of $50,000,000 or 25% of the Aggregate Commitments. 
 “Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the
preceding five plan years, has made or been obligated to make contributions. 
 “Net Cash
Proceeds” means: 
 (a) with respect to the sale of any asset by the Borrower or any
Subsidiary, the excess, if any, of (i) the sum of cash and cash equivalents received in connection with such sale (including any cash received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but
only as and when so received) over (ii) the sum of (A) the principal amount of any Debt that is secured by such asset and that is required to be repaid in connection with the sale thereof (other than Debt under the Loan Documents),
(B) the out-of-pocket expenses incurred by the Borrower or any Subsidiary in connection with such sale and (C) income taxes reasonably estimated to be actually payable within two years of the date of the relevant asset sale as a result of
any gain recognized in connection therewith; and 
 (b) with respect to the sale of any Equity
Interest by the Borrower, the excess of (i) the sum of the cash and cash equivalents received in connection with such sale over (ii) the underwriting discounts and commissions, and other out-of-pocket expenses, incurred by the Borrower in
connection with such sale. 
 “Net Recovery Proceeds” means, with respect to any Recovery
Event, the gross cash proceeds (net of reasonable fees, costs and taxes actually incurred and paid (or to be paid) in connection with such Recovery Event and any required permanent payment of Debt (other than Debt secured pursuant to the Collateral
Documents) which is secured by the property that is the subject of such Recovery Event) received by the respective Person in connection with such Recovery Event. 
 “NOLV” means the net orderly liquidation value of Rolling Stock expected to be realized at an orderly, negotiated sale held within a reasonable period of time, net
of all liquidation

  

 21 

 
expenses, as determined from the most recent appraisal of the Loan Parties’ Rolling Stock performed by an appraiser and on terms reasonably satisfactory to the Administrative Agent.

 “NOLV Percentage” means the net orderly liquidation value of Inventory, expressed as a
percentage of Value expected to be realized at an orderly, negotiated sale held within a reasonable period of time, net of all liquidation expenses, as determined from the most recent appraisal of the Loan Parties’ Inventory performed by an
appraiser and on terms reasonably satisfactory to the Administrative Agent. 
 “Non-Extension Notice
Date” has the meaning specified in Section 2.03(b)(iii). 
 “Notes” means
collectively, the Revolving Loan Notes and the Swing Line Note. 
 “Obligations” means all
advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan or Letter of Credit, in each case whether direct or indirect (including those acquired by
assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party of any proceeding under any Debtor Relief Laws naming such
Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. 
 “Off-Balance Sheet Liabilities” means, with respect to any Person as of any date of determination thereof, without duplication and to the extent not included as a liability on the
consolidated balance sheet of such Person and its Subsidiaries in accordance with GAAP: (a) with respect to any asset securitization transaction (including any accounts receivable purchase facility) (i) the unrecovered investment of
purchasers or transferees of assets so transferred, and (ii) any other payment, recourse, repurchase, hold harmless, indemnity or similar obligation of such Person or any of its Subsidiaries in respect of assets transferred or payments made in
respect thereof, other than limited recourse provisions that are customary for transactions of such type and that neither (x) have the effect of limiting the loss or credit risk of such purchasers or transferees with respect to payment or
performance by the obligors of the assets so transferred nor (y) impair the characterization of the transaction as a true sale under applicable Laws (including Debtor Relief Laws); (b) the monetary obligations under any financing lease or
so-called “synthetic,” tax retention or off-balance sheet lease transaction which, upon the application of any Debtor Relief Law to such Person or any of its Subsidiaries, would be characterized as indebtedness for borrowed money;
(c) the monetary obligations under any sale and leaseback transaction which does not create a liability on the consolidated balance sheet of such Person and its Subsidiaries; (d) any other monetary obligation arising with respect to any
other transaction which upon the application of any Debtor Relief Law to such Person or any of its Subsidiaries, would be characterized as indebtedness for borrowed money, or (e) any transaction structured to provide tax deductibility as
interest expense of any dividend or similar payment. 
 “Organization Documents” means,
(a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability
company, the

  

 22 

 
certificate or articles of formation or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership,
joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the
jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity. 
 “Other Taxes” means all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or under any
other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document. 
 “Outstanding Amount” means (i) with respect to Revolving Loans and Swing Line Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of Revolving Loans and Swing Line Loans, as the case may be, occurring on such date; and (ii) with respect to any L/C Obligations on any date, the amount of such L/C Obligations on such date after giving
effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any reimbursements by the Borrower of Unreimbursed Amounts. 
 “Overadvance” means if the Total Outstandings at any time exceed the Borrowing Base. 
 “Overadvance Loan” means a Loan made pursuant to Section 2.01(b) when an Overadvance exists or
is caused by the funding thereof. 
 “Participant” has the meaning specified in
Section 10.06(d). 
 “PBGC” means the Pension Benefit Guaranty Corporation.

 “Pension Plan” means any “employee pension benefit plan” (as such term is defined
in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any ERISA Affiliate contributes or has an
obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years. 
 “Permitted Liens” means, as applied to any Person: 
 (a) any Lien in favor of the Administrative Agent to secure the Secured Obligations (including, without
limitation, L/C Obligations, obligations in respect of Swap Contracts and Cash Management Obligations, to the extent included within the definition of Secured Obligations); 
 (b) (i) Liens on real estate for real estate taxes not yet delinquent, (ii) Liens on leasehold interests
created by the lessor in favor of any mortgagee of the leased premises,

  

 23 

 
and (iii) Liens for taxes, assessments, governmental charges, levies or claims that are being diligently contested in good faith by appropriate proceedings and for which adequate reserves
shall have been set aside on such Person’s books, but only so long as no foreclosure, restraint, sale or similar proceedings have been commenced with respect thereto; 
 (c) Liens of carriers, landlords, warehousemen, mechanics, laborers and materialmen and other similar Liens
incurred in the ordinary course of business for sums not yet due or being contested in good faith, if such reserve or appropriate provision, if any, as shall be required by GAAP shall have been made therefore; 
 (d) Liens incurred in the ordinary course of business in connection with worker’s compensation,
unemployment insurance or similar legislation, other than Liens imposed by ERISA; 
 (e)
Easements, right-of-way, restrictions and other similar encumbrances on real property which do not materially interfere with the ordinary conduct of the business of such Person; 
 (f) Liens created to secure Debt permitted by Section 7.03(d), which is incurred solely for the
purpose of financing the acquisition or construction of equipment, real property or other fixed assets and incurred at the time of acquisition or construction, so long as each such Lien shall at all times be confined solely to the asset or assets so
acquired or constructed (and proceeds thereof), and refinancings thereof so long as any such Lien remains solely on the asset or assets acquired or constructed and the amount of Debt related thereto is not increased. 
 (g) Liens in respect of judgments or awards for which appeals or proceedings for review are being prosecuted
and in respect of which a stay of execution upon any such appeal or proceeding for review shall have been secured, provided that (i) such Person shall have established adequate reserves for such judgments or awards, (ii) such judgments or
awards shall be fully insured and the insurer shall not have denied coverage, or (iii) such judgments or awards shall have been bonded to the reasonable satisfaction of the Administrative Agent; 
 (h) Any Liens existing on the Closing Date which are described on Schedule 7.01 and which are
acceptable to the Lenders, and Liens resulting from the refinancing of the related Debt, provided that the Debt secured thereby shall not be increased and the Liens shall not cover additional assets of the Borrower or any Subsidiary; 
 (i) Liens filed of record out of an abundance of caution by lessors of personal property, so long as each
such Lien shall at all times be confined solely to the asset or assets so leased (including additions and accessions thereto and proceeds of insurance thereon); and 
  

 24 

 (j) Liens that secure Debt permitted by
Section 7.03(k); provided, that such Liens (i) do not attach to any of the Borrowing Base Collateral and (ii) with respect to any other Collateral, are junior in priority to the Administrative Agent’s Lien thereon.

 “Person” means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other entity. 
 “Petty Cash
Accounts” mean one or more deposit accounts maintained by the Loan Parties for the petty cash needs of their local operations. 
 “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by the Borrower or, with respect to any such plan that is subject to
Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate. 
 “Platform” has the
meaning specified in Section 6.02. 
 “Public Lender” has the meaning specified in
Section 6.02. 
 “Recovery Event” means the receipt by any Loan Party of any cash
insurance proceeds or condemnation awards payable (a) by reason of theft, loss, physical destruction, damage, taking or similar event with respect to any Collateral and (b) under any policy of insurance required to be maintained under any
Loan Document. 
 “Register” has the meaning specified in Section 10.06(c).

 “Registered Public Accounting Firm” has the meaning specified in the Securities Laws and
shall be independent of the Borrower as prescribed by the Securities Laws. 
 “Related Parties”
means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents and advisors of such Person and of such Person’s Affiliates. 
 “Release” has the meaning specified under any Environmental Law. 
 “Rent and Charges Reserve” means the aggregate of (a) all past due rent and other amounts owing by any
Loan Party to any landlord, warehouseman, processor, repairman, mechanic, shipper, freight forwarder, broker or other Person who possesses any Borrowing Base Collateral or could assert a Lien on any such Collateral; and (b) a reserve at least
equal to three months rent and other charges that could be payable to any such Person (unless it has executed a Lien Waiver), in each case limited to the Value of such Borrowing Base Collateral. 
 “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events
for which the 30 day notice period has been waived. 
 “Request for Credit Extension” means
(a) with respect to a Revolving Borrowing or a conversion or continuation of Revolving Loans, a Revolving Loan Notice, (b) with respect to an

  

 25 

 
L/C Credit Extension, a Letter of Credit Application, and (c) with respect to a Swing Line Loan, a Swing Line Loan Notice. 
 “Required Lenders” means, as of any date of determination, Lenders having more than 50% of the Aggregate
Commitments or, if the commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02, Lenders holding in the aggregate more than 50% of the Total
Outstandings (with the aggregate amount of each Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “held” by such Lender for purposes of this definition); provided that the
Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders. 
 “Response” has the meaning specified under any Environmental Law. 
 “Responsible Officer” means the chief executive officer, president, chief financial officer, chief
accounting officer, treasurer or assistant treasurer of a Loan Party. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate,
partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party. 
 “Restricted Debt Payments” has the meaning specified in Section 7.15. 
 “Restricted Payment” means (i) any Dividend or other distribution (whether in cash, securities or other property) with respect to any capital stock or other
Equity Interest of the Borrower or any Subsidiary, or (ii) any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation
or termination of any such capital stock or other Equity Interest, or on account of any return of capital to the Borrower’s stockholders, partners or members (or the equivalent Person thereof). 
 “Revolving Borrowing” means a borrowing consisting of simultaneous Revolving Loans of the same Type and, in
the case of Eurodollar Rate Loans, having the same Interest Period made by each of the Lenders pursuant to Section 2.01. 
 “Revolving Loan” has the meaning specified in Section 2.01 and includes any Overadvance Loan. 
 “Revolving Loan Note” means a promissory note made by the Borrower in favor of a Lender evidencing Revolving Loans made by such Lender, substantially in the form of
Exhibit E. 
 “Revolving Loan Notice” means a notice of (a) a Revolving Borrowing,
(b) a conversion of Revolving Loans from one Type to the other, or (c) a continuation of Revolving Loans, pursuant to Section 2.02(a) which, if in writing, shall be substantially in the form of Exhibit F. 
  

 26 

 “Rolling Stock” means all locomotives, railcars,
automobiles, trucks, trailers, tractors, bulldozers, scrapers, loaders, forklifts and other motor vehicles and mobile equipment of a Person. 
 “Rolling Stock Depreciation Amount” means an amount equal to the amount per month that the Loan Parties depreciate the value of all Eligible Rolling Stock on their books; provided, that
if the Loan Parties’ depreciation methodology results in an average life greater than five years for Eligible Rolling Stock, then the Rolling Stock Depreciation Amount shall be an amount determined by the Administrative Agent in its Credit
Judgment. 
 “Rolling Stock Determination Date” means each date on which the Administrative
Agent receives a third party appraisal, in form and detail satisfactory to it, calculating the NOLV of all Eligible Rolling Stock. 
 “Rolling Stock Formula Amount” means, as of any Rolling Stock Determination Date, the lesser of (a) $30,000,000, or (b) 85% of the NOLV of Eligible Rolling Stock; provided, that
in the period between Rolling Stock Determination Dates the Rolling Stock Formula Amount shall be (i) reduced on the first day of each month by the Rolling Stock Depreciation Amount, (ii) reduced at the time of any casualty or Disposition
of Eligible Rolling Stock by the portion of the Rolling Stock Formula Amount attributable to such Eligible Rolling Stock, (iii) reduced at the time that any previously Eligible Rolling Stock is no longer Eligible Rolling Stock by the portion of
the Rolling Stock Formula Amount attributable to such Eligible Rolling Stock, and (iv) increased by 85% of the purchase price paid for any newly acquired Eligible Rolling Stock net of any discounts, rebates or credits and excluding any fees,
expenses, sales taxes, other taxes, delivery charges and other “soft” costs. Prior to the first Rolling Stock Determination Date, the Rolling Stock Formula Amount shall be zero. 
 “Rolling Stock Reserve” means a reserve established by the Administrative Agent from time to time in its
Credit Judgment for the amount of all fees, taxes and other amounts payable at the time in question in respect of all licenses, registrations and other permits for Eligible Rolling Stock. 
 “Royalty Reserve” means a reserve established by the Administrative Agent from time to time in its Credit
Judgment for the amount of all the Loan Parties’ accrued and unpaid royalties owing to the owners of quarry, mine or pit sites leased or operated by the Loan Parties. 
 “Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002. 
 “SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions. 
 “Secured Obligations” means, collectively, (a) the Obligations, (b) all Swap Obligations owed to
any Secured Party, (c) all Cash Management Obligations, and (d) all present and future amounts in respect of the foregoing that would become due but for the operation of any provision of Debtor Relief Laws, and all present and future
accrued and unpaid interest in respect of the foregoing, including, without limitation, post-petition interest if any Loan Party voluntarily or

  

 27 

 
involuntarily becomes subject to any Debtor Relief Laws; provided, however, that for any of the Swap Obligations or the Cash Management Obligations to be included as “Secured
Obligations”, the applicable Secured Party and Loan Party must have previously provided written notice to the Administrative Agent of (i) the existence of such Swap Obligations or Cash Management Obligations, (ii) the maximum dollar
amount of obligations arising thereunder to be included as a Bank Product Reserve (“Bank Product Amount”), and (iii) the methodology to be used by such parties in determining the amounts owing with respect thereto from time to
time. No Bank Product Amount may be established or increased at any time that a Default or Event of Default exists, or if a reserve in such amount would cause an Overadvance. 
 “Secured Parties” means, collectively, (a) the Administrative Agent, (b) the Lenders, (c) any Lender or any Affiliate of any Lender that is a party to
any Swap Contract with the Borrower or any Subsidiary of the Borrower, (d) any Lender or any Affiliate of any Lender that is owed any Cash Management Obligation (provided that at the time such Cash Management Obligations arose such Lender is a
party to the Credit Agreement), and (e) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document; provided that any Person that ceases to be a Lender (and any Affiliate of such Person) shall be a
Secured Party under the preceding clause (c) only with respect to transactions under Swap Contracts that were entered into during or prior to the time that such Person was a Lender. 
 “Securities Laws” means the Securities Act of 1933, the Securities Exchange Act of 1934, Sarbanes-Oxley and
the applicable accounting and auditing principles, rules, standards and practices promulgated, approved or incorporated by the SEC or the Public Company Accounting Oversight Board, as each of the foregoing may be amended and in effect on any
applicable date hereunder. 
 “Security Agreement” means the Amended and Restated Security
Agreement executed by the Borrower and its Material Domestic Subsidiaries in favor of the Administrative Agent for the benefit of the Secured Parties, substantially in the form of Exhibit J. 
 “Senior Notes” means the 2005 Senior Notes and other unsecured senior notes of the Borrower due 2013 or
thereafter, provided that the terms (excluding interest rates and fees, which, however shall be comparable to market interest rates and fees charged to companies of financial condition similar to the Borrower at the time such other senior notes are
issued), provisions and covenants governing such other senior notes taken as a whole (a) are not more restrictive on the Borrower and its Subsidiaries than this Agreement and (b) do not provide greater enforcement rights to the holder of
such other senior notes than the enforcement rights of the Administrative Agent and the Lenders under the Loan Documents; provided that terms, provisions and covenants substantially the same as those in the 2005 Indenture shall be deemed to satisfy
the requirements of clauses (a) and (b) of this definition. 
 “Solvent” means, with
respect to any Person, as of any date of determination, that the fair value of the assets of such Person (at fair valuation) is, on the date of determination, greater than the total amount of liabilities (including contingent and unliquidated
liabilities) of such Person as of such date, that the present fair saleable value of the assets of such Person will, as of such date, be greater than the amount that will be required to pay the probable liability of such Person on its

  

 28 

 
debts as such debts become absolute and matured, and that, as of such date, such Person will be able to pay all liabilities of such Person as such liabilities mature and such Person does not have
unreasonably small capital with which to carry on its business. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities will be computed at the amount which, in light of all the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability discounted to present value at rates believed to be reasonable by such Person acting in good faith. 
 “SPC” has the meaning specified in Section 10.06(h). 
 “Subordinated Debt” means all Debt of the Borrower or any Subsidiary which shall be subordinated, on terms
satisfactory to the Required Lenders, to the Obligations. 
 “Subsidiary” of a Person means a
corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or
both, by such Person. Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower. 
 “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward
bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, or any other
similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange
Master Agreement, or any other master agreement to the extent governing contracts of the kinds described in clause (a) of this definition (any such master agreement, together with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement. 
 “Swap Obligations”
means any and all obligations under or in connection with or otherwise owed by the Borrower or any Subsidiary to any Lender or any Affiliate of a Lender in respect of a Swap Contract. 
 “Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the
effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination
value(s), and (b) for

  

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any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other
readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender). 
 “Swing Line” means the revolving credit facility made available by the Swing Line Lender pursuant to Section 2.04. 
 “Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section 2.04.

 “Swing Line Lender” means Bank of America in its capacity as provider of Swing Line Loans,
or any successor swing line lender hereunder. 
 “Swing Line Loan” has the meaning specified in
Section 2.04(a). 
 “Swing Line Loan Notice” means a notice of a Swing Line
Borrowing pursuant to Section 2.04(b) which, if in writing, shall be substantially in the form of Exhibit G. 
 “Swing Line Note” means a promissory note made by the Borrower in favor of the Swing Line Lender evidencing Swing Line Loans made by such Swing Line Lender, substantially in the form of
Exhibit H. 
 “Swing Line Sublimit” means an amount equal to the lesser of
(a) $15,000,000 and (b) the Aggregate Commitments. The Swing Line Sublimit is part of, and not in addition to, the Aggregate Commitments. 
 “Syndication Agent” means UBS Securities LLC, in its capacity as syndication agent under any of the Loan Documents, or any successor syndication agent. 
 “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so-called
synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such
Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment). 
 “Tax Reserve” means a reserve established by the Administrative Agent from time to time in its Credit Judgment for the amount of all the Loan Parties’ accrued and unpaid sales, use and excise taxes. 
 “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments,
fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 
 “Total Debt” means, as of any date of determination, determined for the Borrower and its Subsidiaries on a consolidated basis determined in accordance with GAAP, the sum (without
duplication) of (a) all principal outstanding under the Loan Documents, (b) all principal

  

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obligations evidenced by a promissory note or otherwise representing borrowed money, (c) all reimbursement obligations for letters of credit that have been drawn upon and remain outstanding,
and (d) all Capitalized Lease Obligations. 
 “Total Outstandings” means the aggregate
Outstanding Amount of all Loans and all L/C Obligations. 
 “Trigger Period” means any of the
following periods: (a) any period commencing on the day that an Event of Default occurs and ending on the day that all Events of Default are cured or waived, and (b) any period commencing on the day that Availability is less than the
greater of $40,000,000 or 20% of the Aggregate Commitments at any time and continuing until, during the preceding 60 consecutive days, Availability has been equal to or exceeded the greater of $40,000,000 or 20% of the Aggregate Commitments at all
times. 
 “2005 Indenture” means that certain Indenture, dated as of July 6, 2005, among
the Borrower, certain Subsidiaries of the Borrower and Wells Fargo Bank, National Association, as trustee, providing for the issuance of the 2005 Senior Notes. 
 “2005 Senior Notes” means those certain 7.25% Senior Notes due 2013 of the Borrower issued pursuant to the 2005 Indenture. 
 “Type” means, with respect to a Loan, its character as a Base Rate Loan or a Eurodollar Rate Loan.

 “UCC” means the Uniform Commercial Code of Texas or, where applicable to specific
collateral, any other relevant state. 
 “Unfunded Pension Liability” means the excess of a
Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412
of the Code for the applicable plan year. 
 “United States” and “U.S.” mean
the United States of America. 
 “Unreimbursed Amount” has the meaning specified in
Section 2.03(c)(i). 
 “Value” means (a) for Inventory other than Aggregates,
its value determined on the basis of the lower of cost or market, calculated on a first-in, first-out basis, and excluding any portion of cost attributable to intercompany profit among the Borrower and its Affiliates; (b) for Inventory
consisting of Aggregates, its fair market value (provided, that if following the Closing Date the Borrower carries Aggregates on its balance sheet, then the Value of Inventory consisting of Aggregates shall be the lower of cost or market); and
(c) for an Account, its face amount, net of any returns, rebates, discounts (calculated on the shortest terms), credits, allowances or Taxes (including sales, excise or other taxes) that have been or could be claimed by the Account Debtor or
any other Person. 
  

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 “Wholly-Owned Subsidiary” when used to determine the
relationship of a Subsidiary to a Person, means a Subsidiary all of the issued and outstanding Equity Interests (other than directors’ qualifying shares) of which shall at the time be owned by such Person or one or more of such Person’s
Wholly-Owned Subsidiaries or by such Person and one or more of such Person’s Wholly-Owned Subsidiaries. 
 1.02 Other Interpretive Provisions. With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document: 
 (a) The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase
“without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.” Unless the context requires otherwise, (i) any definition of or reference to any
agreement, instrument or other document (including any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words
“herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision
thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear,
(v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or
regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and contract rights. 
 (b) In the
computation of periods of time from a specified date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but
excluding;” and the word “through” means “to and including.” 
 (c)
Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document. 
 1.03 Accounting Terms. 
 (a) Generally. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial
calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a

  

 32 

 
manner consistent with that used in preparing the Audited Financial Statements, except as otherwise specifically prescribed herein. 
 (b) Changes in GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior
to such change therein and (ii) the Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation
between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. 
 1.04 Rounding. Any financial ratios required to be maintained by the Borrower pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the
number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number). 
 1.05 Times of Day. Unless otherwise specified, all references herein to times of day shall be references to Central time (daylight or standard, as applicable). 
 1.06 Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall
be deemed to be the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or
more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount
is in effect at such time. 
 ARTICLE II. 
 THE COMMITMENTS AND CREDIT EXTENSIONS 
 2.01 Revolving
Loans. 
 (a) Subject to the terms and conditions set forth herein, each Lender severally agrees to make
loans (each such loan, a “Revolving Loan”) to the Borrower from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount of such Lender’s
Commitment; provided, however, that after giving effect to any Revolving Borrowing, (i) the Total Outstandings shall not exceed the Borrowing Base, and (ii) the aggregate Outstanding Amount of the Revolving Loans of any
Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s
Commitment. Within the limits of the Borrowing Base, and subject to

  

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the other terms and conditions hereof, the Borrower may borrow under this Section 2.01, prepay under Section 2.05, and reborrow under this Section 2.01.
Revolving Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. 
 (b)
Notwithstanding Section 2.01(a)(i) to the contrary and unless its authority to do so has been revoked by the Required Lenders, the Administrative Agent may require Lenders to honor requests for Overadvance Loans and to forbear from
requiring the Borrower to cure an Overadvance, (i) when no other Default exists, as long as (w) the Overadvance does not continue for more than 30 consecutive days (and no Overadvance may exist for at least five consecutive days thereafter
before further Overadvance Loans are required), and (x) the Overadvance does not exceed 10% of the Borrowing Base; and (ii) regardless of whether a Default exists, if the Administrative Agent discovers an Overadvance not previously known
by it to exist, as long as from the date of such discovery the Overadvance (y) is not increased by more than $2,000,000, and (z) does not continue for more than 30 consecutive days. In no event shall Overadvance Loans be required that
would cause the Total Outstandings to exceed the Aggregate Commitments. Any funding of an Overadvance Loan or sufferance of an Overadvance shall not constitute a waiver by the Administrative Agent or Lenders of the Default caused thereby. The
Administrative Agent may require the Borrower to repay an Overadvance at any time in accordance with Section 2.05(c). In no event shall the Borrower or any other Loan Party be deemed a beneficiary of this Section nor authorized to
enforce any of its terms. Overadvance Loans may only be Base Rate Loans. 
 2.02 Borrowings, Conversions and
Continuations of Loans. 
 (a) Each Borrowing, each conversion of Loans from one Type to the other, and each
continuation of Eurodollar Rate Loans shall be made upon the Borrower’s irrevocable notice to the Administrative Agent, which may be given by telephone or another means permitted by Section 10.02. Each such notice must be received
by the Administrative Agent not later than 11:00 a.m. (i) three Business Days prior to the requested date of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate
Loans, and (ii) on the requested date of any Borrowing of Base Rate Loans. Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written
Revolving Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower. Each Borrowing of, conversion to or continuation of Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a whole multiple of
$1,000,000 in excess thereof. Except as provided in Sections 2.03(c) and 2.04(c), each Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof. Each
Revolving Loan Notice (whether telephonic or written), shall specify (A) whether the Borrower is requesting a Borrowing, a conversion of Loans from one Type to the other, or a continuation of Eurodollar Rate Loans, (B) the requested date
of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (C) the principal amount of Loans to be borrowed, converted or continued, (D) the Type of Loans to be borrowed or to which existing Loans are
to be converted, and (E) if applicable, the duration of the Interest Period with respect thereto. If the Borrower fails to specify a Type of Loan in a Revolving Loan Notice or if the Borrower fails to give a timely notice requesting a
conversion or continuation, then the applicable Loans shall be

  

 34 

 
made as, or converted to, Base Rate Loans. Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to the
applicable Eurodollar Rate Loans. If the Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such Revolving Loan Notice but fails to specify an Interest Period, it will be deemed to have specified an
Interest Period of one month. 
 (b) Following receipt of a Revolving Loan Notice, the Administrative Agent
shall promptly notify each Lender of the amount of its Applicable Percentage of the applicable Loans, and if no timely notice of a conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the
details of any automatic conversion to Base Rate Loans described in the preceding subsection. In the case of a Revolving Borrowing, each Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at
the Administrative Agent’s Office not later than 1:00 p.m. on the Business Day specified in the Revolving Loan Notice. Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if such Borrowing is the initial
Credit Extension, Section 4.01), the Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the Borrower on the
books of Bank of America with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Borrower; provided,
however, that if, on the date the Revolving Loan Notice with respect to such Borrowing is given by the Borrower, there are L/C Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied to the payment in full
of any such L/C Borrowings, and second, shall be made available to the Borrower as provided above. 
 (c)
Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted only on the last day of an Interest Period for such Eurodollar Rate Loan. During the existence of a Default, no Loans may be requested as, converted to or
continued as Eurodollar Rate Loans without the consent of the Required Lenders. 
 (d) The Administrative Agent
shall promptly notify the Borrower and the Lenders of the interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of such interest rate. At any time that Base Rate Loans are outstanding, the Administrative Agent
shall notify the Borrower and the Lenders of any change in Bank of America’s prime rate used in determining the Base Rate promptly following the public announcement of such change. 
 (e) After giving effect to all Borrowings, all conversions of Loans from one Type to the other, and all continuations of
Loans as the same Type, there shall not be more than five Interest Periods in effect with respect to Loans. 
 2.03 Letters of Credit. 
 (a) The Letter of Credit Commitment. 
 (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in reliance upon
the agreements of the Lenders set forth in this Section 2.03, (1)

  

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from time to time on any Business Day during the period from the Closing Date until the Letter of Credit Expiration Date, to issue Letters of Credit for the account of the Borrower, and to amend
or extend Letters of Credit previously issued by it, in accordance with subsection (b) below, and (2) to honor drawings under the Letters of Credit; and (B) the Lenders severally agree to participate in Letters of Credit issued for
the account of the Borrower and any drawings thereunder; provided that after giving effect to any L/C Credit Extension with respect to any Letter of Credit, (x) the Total Outstandings shall not exceed the Borrowing Base, (y) the
aggregate Outstanding Amount of the Revolving Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount
of all Swing Line Loans shall not exceed such Lender’s Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit. Each request by the Borrower for the issuance or amendment of a Letter
of Credit shall be deemed to be a representation by the Borrower that the L/C Credit Extension so requested complies with the conditions set forth in the proviso to the preceding sentence. Within the foregoing limits, and subject to the terms and
conditions hereof, the Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly the Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have
been drawn upon and reimbursed. All Existing Letters of Credit shall be deemed to have been issued pursuant hereto, and from and after the Closing Date shall be subject to and governed by the terms and conditions hereof. 
 (ii) The L/C Issuer shall not issue any Letter of Credit, if: 
 (A) subject to Section 2.03(b)(iii), the expiry date of such requested Letter of Credit would
occur more than twelve months after the date of issuance or last extension, unless the Required Lenders have approved such expiry date; or 
 (B) the expiry date of such requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless all the Lenders have approved such expiry date. 
 (iii) The L/C Issuer shall not be under any obligation to issue any Letter of Credit if: 
 (A) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to
enjoin or restrain the L/C Issuer from issuing such Letter of Credit, or any Law applicable to the L/C Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the L/C Issuer
shall prohibit, or request that the L/C Issuer refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the L/C Issuer with respect to such Letter of Credit any restriction, reserve or
capital requirement (for which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or

  

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expense which was not applicable on the Closing Date and which the L/C Issuer in good faith deems material to it; 
 (B) the issuance of such Letter of Credit would violate one or more policies of the L/C Issuer; 

(C) except as otherwise agreed by the Administrative Agent and the L/C Issuer, such Letter of Credit is in
an initial stated amount less than $100,000, in the case of a commercial Letter of Credit, or $100,000, in the case of a standby Letter of Credit; 
 (D) such Letter of Credit is to be denominated in a currency other than Dollars; or 
 (E) a default of any Lender’s obligations to fund under Section 2.03(c) exists or any Lender is at such time a Defaulting Lender hereunder, unless the L/C Issuer has
entered into satisfactory arrangements with the Borrower or such Lender to eliminate the L/C Issuer’s risk with respect to such Lender. 
 (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be permitted at such time to issue such Letter of Credit in its amended form under the terms
hereof. 
 (v) The L/C Issuer shall be under no obligation to amend any Letter of Credit if
(A) the L/C Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter of
Credit. 
 (vi) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and the L/C Issuer shall have all of the benefits and immunities (A) provided to the Administrative Agent in Article IX with respect to any acts taken or omissions suffered by
the L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used in Article IX included
the L/C Issuer with respect to such acts or omissions, and (B) as additionally provided herein with respect to the L/C Issuer. 
 (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of Credit. 
 (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Borrower delivered to the L/C Issuer (with a copy to the Administrative Agent) in
the form of a Letter of Credit Application, appropriately completed and signed by a Responsible Officer of the Borrower. Such Letter of Credit Application must be received by the L/C Issuer and the Administrative Agent not later than 10:00 a.m. at
least two Business Days (or such later date and time as the Administrative Agent and the L/C Issuer may agree in a particular instance in their sole discretion) prior to the proposed

  

 37 

 
issuance date or date of amendment, as the case may be. In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail
satisfactory to the L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary
thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder; and (G) such other matters
as the L/C Issuer may require. In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the L/C Issuer (1) the Letter of Credit to be
amended; (2) the proposed date of amendment thereof (which shall be a Business Day); (3) the nature of the proposed amendment; and (4) such other matters as the L/C Issuer may require. Additionally, the Borrower shall furnish to the
L/C Issuer and the Administrative Agent such other documents and information pertaining to such requested Letter of Credit issuance or amendment, including any Issuer Documents, as the L/C Issuer or the Administrative Agent may require. 

(ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit Application from the Borrower and, if not, the L/C Issuer will provide the Administrative Agent with a copy thereof. Unless
the L/C Issuer has received written notice from any Lender, the Administrative Agent or any Loan Party, at least one Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that one or more applicable
conditions contained in Article IV shall not then be satisfied, then, subject to the terms and conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the Borrower or enter into the
applicable amendment, as the case may be, in each case in accordance with the L/C Issuer’s usual and customary business practices. Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably
and unconditionally agrees to, purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount equal to the product of such Lender’s Applicable Percentage times the amount of such Letter of Credit. 
 (iii) If the Borrower so requests in any applicable Letter of Credit Application, the L/C Issuer may, in its
sole and absolute discretion, agree to issue a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter of Credit must permit the L/C
Issuer to prevent any such extension at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non-Extension Notice
Date”) in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued. Unless otherwise directed by the L/C Issuer, the Borrower shall not be required to make a specific request to the L/C Issuer for any such
extension. Once an Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to have authorized (but may not require) the L/C Issuer to permit the extension of such Letter of Credit at any time to an

  

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expiry date not later than the Letter of Credit Expiration Date; provided, however, that the L/C Issuer shall not permit any such extension if (A) the L/C Issuer has determined
that it would not be permitted, or would have no obligation, at such time to issue such Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of
Section 2.03(a) or otherwise), or (B) it has received notice (which may be by telephone or in writing) on or before the day that is five Business Days before the Non-Extension Notice Date (1) from the Administrative Agent that
the Required Lenders have elected not to permit such extension or (2) from the Administrative Agent, any Lender or the Borrower that one or more of the applicable conditions specified in Section 4.02 is not then satisfied, and in
each such case directing the L/C Issuer not to permit such extension. 
 (iv) Promptly after its
delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C Issuer will also deliver to the Borrower and the Administrative Agent a true and complete copy of
such Letter of Credit or amendment. 
 (c) Drawings and Reimbursements; Funding of Participations.

 (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under
such Letter of Credit, the L/C Issuer shall notify the Borrower and the Administrative Agent thereof. Not later than 11:00 a.m. on the date of any payment by the L/C Issuer under a Letter of Credit (each such date, an “Honor Date”),
the Borrower shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to the amount of such drawing. If the Borrower fails to so reimburse the L/C Issuer by such time, the Administrative Agent shall promptly notify each
Lender of the Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such Lender’s Applicable Percentage thereof. In such event, the Borrower shall be deemed to have requested a
Revolving Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in Section 2.02 for the principal amount of Base Rate Loans,
but subject to the amount of the unutilized portion of the Commitment and the conditions set forth in Section 4.02 (other than the delivery of a Revolving Loan Notice). Any notice given by the L/C Issuer or the Administrative Agent
pursuant to this Section 2.03(c)(i) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

 (ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i) make funds
available to the Administrative Agent for the account of the L/C Issuer at the Administrative Agent’s Office in an amount equal to its Applicable Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in
such notice by the Administrative Agent, whereupon, subject to the provisions of Section 2.03(c)(iii), each Lender that so makes funds available shall be deemed to have made a Base Rate Loan to the Borrower in such amount. The
Administrative Agent shall remit the funds so received to the L/C Issuer. 
  

 39 

 (iii) With respect to any Unreimbursed Amount that is not
fully refinanced by a Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 cannot be satisfied or for any other reason, the Borrower shall be deemed to have incurred from the L/C Issuer an L/C Borrowing in the
amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the Default Rate. In such event, each Lender’s payment to the Administrative
Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.03. 
 (iv) Until each Lender funds its
Revolving Loan or L/C Advance pursuant to this Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender’s Applicable Percentage of such amount shall be solely
for the account of the L/C Issuer. 
 (v) Each Lender’s obligation to make Revolving Loans
or L/C Advances to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c), 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 the L/C Issuer, the Borrower or any other Person for any reason whatsoever; (B) the occurrence or continuance of a Default or an Overadvance, or
(C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Revolving Loans (but not L/C Advances) pursuant to this
Section 2.03(c) is subject to the conditions set forth in Section 4.02 (other than delivery by the Borrower of a Revolving Loan Notice). No such making of an L/C Advance shall relieve or otherwise impair the obligation of the
Borrower to reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer under any Letter of Credit, together with interest as provided herein. 
 (vi) If any Lender fails to make available to the Administrative Agent for the account of the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii), the L/C Issuer 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 the L/C Issuer at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by the L/C Issuer in
accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the L/C Issuer in connection with the foregoing. If such Lender pays such amount (with interest and fees as
aforesaid), the amount so paid (excluding such interest and fees) shall constitute such Lender’s Revolving Loan included in the relevant Revolving Borrowing or L/C Advance in respect of the relevant L/C Borrowing, as the case may be. A
certificate of the L/C Issuer submitted to any Lender (through the

  

 40 

 
Administrative Agent) with respect to any amounts owing under this clause (vi) shall be conclusive absent manifest error. 
 (vii) The L/C Issuer will provide to the Administrative Agent reports in detail acceptable to the
Administrative Agent (including draws, payments and reconciliation payments) with respect to outstanding Letters of Credit issued by the L/C Issuer, in such frequency as reasonably requested by the Administrative Agent. The Administrative Agent will
provide quarterly reports to each Lender with respect to the outstanding Letters of Credit at such time issued by the L/C Issuer, and such other information regarding outstanding Letters of Credit or L/C Obligations reasonably requested by any
Lender from time to time. 
 (d) Repayment of Participations. 
 (i) At any time after the L/C Issuer has made a payment under any Letter of Credit and has received from any
Lender such Lender’s L/C Advance in respect of such payment in accordance with Section 2.03(c), if the Administrative Agent receives for the account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or
interest thereon (whether directly from the Borrower or otherwise, including proceeds of Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute to such Lender its Applicable Percentage thereof
(appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s L/C Advance was outstanding) in the same funds as those received by the Administrative Agent. 
 (ii) If any payment received by the Administrative Agent for the account of the L/C Issuer pursuant to
Section 2.03(c)(i) is required to be returned under any of the circumstances described in Section 10.05 (including pursuant to any settlement entered into by the L/C Issuer in its discretion), each Lender shall pay to the
Administrative Agent for the account of the L/C Issuer its Applicable Percentage thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned by such Lender, at a rate per
annum equal to the Federal Funds Rate from time to time in effect. The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement. 
 (e) Obligations Absolute. The obligation of the Borrower to reimburse the L/C Issuer for each drawing under
each Letter of Credit and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances, including the following: 
 (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or any other Loan
Document; 
 (ii) the existence of any claim, counterclaim, setoff, defense or other right that
the Borrower or any Subsidiary may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any

  

 41 

 
such transferee may be acting), the L/C Issuer or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or
instrument relating thereto, or any unrelated transaction; 
 (iii) any draft, demand,
certificate or 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; or any loss or delay in the transmission
or otherwise of any document required in order to make a drawing under such Letter of Credit; 
 (iv) any payment by the L/C Issuer under such Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any payment made by the L/C Issuer under such Letter of
Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit,
including any arising in connection with any proceeding under any Debtor Relief Law; or 
 (v)
any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Borrower or any Subsidiary. 

The Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to it
and, in the event of any claim of noncompliance with the Borrower’s instructions or other irregularity, the Borrower will immediately notify the L/C Issuer. The Borrower shall be conclusively deemed to have waived any such claim against the L/C
Issuer and its correspondents unless such notice is given as aforesaid. 
 (f) Role of L/C Issuer.
Each Lender and the Borrower agree that, in paying any drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the
Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document. None of the L/C Issuer, the Administrative Agent, any of their respective
Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Lenders or the Required
Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of
Credit or Issuer Document. The Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided, however, that this assumption is not intended to, and
shall not, preclude the Borrower’s pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement. None of the L/C Issuer, the Administrative Agent, any of their respective Related
Parties nor any correspondent, participant or assignee of the L/C Issuer shall be liable or responsible for any of the matters described in clauses (i) through (v) of Section 2.03(e); provided, however, that
anything in such clauses to the contrary

  

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notwithstanding, the Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by the Borrower which the Borrower proves were caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing, the L/C Issuer 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 the L/C Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason. 
 (g) Cash Collateral. Upon the request of the Administrative Agent, (i) if the L/C Issuer has honored any full or
partial drawing request under any Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any L/C Obligation for any reason remains outstanding, the Borrower shall, in each
case, immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations. If there is a Defaulting Lender at any time that L/C Obligations are outstanding, either (A) the Administrative Agent shall at the L/C Issuer’s
request establish an additional reserve equal to the Applicable Percentage of the L/C Obligations of such Defaulting Lender or (B) the Borrower shall, on demand by the L/C Issuer or the Administrative Agent, Cash Collateralize the Applicable
Percentage of the L/C Obligations of such Defaulting Lender (or make other arrangements therefor satisfactory to the L/C Issuer and the Borrower). Sections 2.05 and 8.02(c) set forth certain additional requirements to deliver Cash
Collateral hereunder. For purposes of this Section 2.03, Section 2.05 and Section 8.02(c), “Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the
benefit of the L/C Issuer and the Lenders, as collateral for the L/C Obligations, cash or deposit account balances pursuant to documentation in form and substance satisfactory to the Administrative Agent and the L/C Issuer (which documents are
hereby consented to by the Lenders). Derivatives of such term have corresponding meanings. The Borrower hereby grants to the Administrative Agent, for the benefit of the L/C Issuer and the Lenders, a security interest in all such cash, deposit
accounts and all balances therein and all proceeds of the foregoing. Cash Collateral shall be maintained in blocked, non-interest bearing deposit accounts at Bank of America. 
 (h) Applicability of ISP and UCP. Unless otherwise expressly agreed by the L/C Issuer and the Borrower when a Letter of Credit is issued (including any such agreement
applicable to an Existing Letter of Credit), (i) the rules of the ISP shall apply to each standby Letter of Credit, and (ii) the rules of the Uniform Customs and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce at the time of issuance, shall apply to each commercial Letter of Credit. 
 (i) Letter of Credit Fees. The Borrower shall pay to the Administrative Agent for the account of each Lender in accordance with its Applicable Percentage a Letter of Credit fee (the “Letter of Credit Fee”) for each
Letter of Credit equal to the Applicable Rate times the daily amount available to be drawn under such Letter of Credit. For purposes of computing the daily

  

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amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06. Letter of Credit Fees shall be
(i) computed on a monthly basis in arrears and (ii) due and payable on the first Business Day after the end of each month, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit
Expiration Date and thereafter on demand. If there is any change in the Applicable Rate during any month, the daily amount available to be drawn under each Letter of Credit shall be computed and multiplied by the Applicable Rate separately for each
period during such month that such Applicable Rate was in effect. Notwithstanding anything to the contrary contained herein, upon the request of the Required Lenders, while any Event of Default exists, all Letter of Credit Fees shall accrue at the
Default Rate. 
 (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The
Borrower shall pay directly to the L/C Issuer for its own account a fronting fee with respect to each Letter of Credit at the rate per annum set forth in the Fee Letter, computed on the daily amount available to be drawn under such Letter of Credit
on a monthly basis in arrears. Such fronting fee shall be due and payable on the first Business Day of each month in respect of the most recently-ended month, commencing with the first such date to occur after the issuance of such Letter of Credit,
on the Letter of Credit Expiration Date and thereafter on demand. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with
Section 1.06. In addition, the Borrower shall pay directly to the L/C Issuer for its own account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the L/C Issuer relating
to letters of credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are nonrefundable. 
 (k) Conflict with Issuer Documents. In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control. 
 2.04 Swing Line Loans. 
 (a) The Swing Line. Subject to the terms and conditions set forth herein, the Swing Line Lender agrees, in reliance upon the agreements of the other Lenders set forth in this Section 2.04
but in its sole discretion and without any obligations, to make loans (each such loan, a “Swing Line Loan”) to the Borrower from time to time on any Business Day during the Availability Period in an aggregate amount not to
exceed at any time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, when aggregated with the Applicable Percentage of the Outstanding Amount of Revolving Loans and L/C Obligations of the Lender
acting as Swing Line Lender, may exceed the amount of such Lender’s Applicable Percentage of the Aggregate Commitments; provided, however, that after giving effect to any Swing Line Loan, (i) the Total Outstandings shall not
exceed the Borrowing Base, and (ii) the aggregate Outstanding Amount of the Revolving Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s
Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Commitment, and provided, further, that the Borrower shall not use the proceeds of any Swing Line Loan to refinance any
outstanding Swing Line Loan. Within the

  

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foregoing limits, and subject to the other terms and conditions hereof, including the sole discretion of the Swing Line Lender to make Swing Line Loans, the Borrower may borrow under this
Section 2.04, prepay under Section 2.05, and reborrow under this Section 2.04. Each Swing Line Loan shall be a Base Rate Loan. Immediately upon the making of a Swing Line Loan, each Lender shall be deemed to, and
hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing Line Loan in an amount equal to the product of such Lender’s Applicable Percentage times the amount of such Swing
Line Loan. 
 (b) Borrowing Procedures. Each Swing Line Borrowing shall be made upon the Borrower’s
irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by telephone or another means permitted by Section 10.02. Each such notice must be received by the Swing Line Lender and the Administrative
Agent not later than 1:00 p.m. on the requested borrowing date, and shall specify (i) the amount to be borrowed and (ii) the requested borrowing date, which shall be a Business Day. Each such telephonic notice must be confirmed promptly by
delivery to the Swing Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower. Promptly after receipt by the Swing Line Lender of any telephonic Swing
Line Loan Notice, the Swing Line Lender will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has also received such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the
Administrative Agent (by telephone or in writing) of the contents thereof. Unless the Swing Line Lender has received notice (by telephone or in writing) from the Administrative Agent (including at the request of any Lender) prior to 1:00 p.m. on the
date of the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the proviso to the first sentence of Section 2.04(a), or (B) that one or
more of the applicable conditions specified in Article IV is not then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender will, not later than 2:00 p.m. on the borrowing date specified in such Swing Line Loan
Notice, make the amount of its Swing Line Loan available to the Borrower at its office by crediting the account of the Borrower on the books of the Swing Line Lender in immediately available funds. In the event that (1) any of the Secured
Obligations become due for which the Borrower has not otherwise made timely payment or (2) the Borrower has insufficient funds on deposit in a controlled disbursement account maintained with the Administrative Agent or an Affiliate thereof at
the time that checks or other payment items are presented for collection, then the Borrower shall be deemed to have requested a Swing Line Loan (or a Revolver Loan in the event that the Swing Line Sublimit would be exceeded by such request) on such
date in the amount of such Secured Obligations or such payment items and without any further notice. If the conditions precedent are satisfied for the Credit Extension requested pursuant to the preceding sentence, the Swing Line Lender (or the
Administrative Agent in the case of a Revolving Loan) shall make such Loan and the proceeds thereof shall be disbursed as direct payment of the relevant Secured Obligations or payment items. 
 (c) Refinancing of Swing Line Loans. 
 (i) The Swing Line Lender at any time in its sole and absolute discretion may request, on behalf of the
Borrower (which hereby irrevocably authorizes the Swing Line Lender to so request on its behalf), that each Lender make a Base Rate Loan in an amount

  

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equal to such Lender’s Applicable Percentage of the amount of Swing Line Loans then outstanding. Such request shall be made in writing (which written request shall be deemed to be a
Revolving Loan Notice for purposes hereof) and in accordance with the requirements of Section 2.02, without regard to the minimum and multiples specified therein for the principal amount of Base Rate Loans, but subject to the unutilized
portion of the Aggregate Commitments and the conditions set forth in Section 4.02. The Swing Line Lender shall furnish the Borrower with a copy of the applicable Revolving Loan Notice promptly after delivering such notice to the
Administrative Agent. Each Lender shall make an amount equal to its Applicable Percentage of the amount specified in such Revolving Loan Notice available to the Administrative Agent in immediately available funds for the account of the Swing Line
Lender at the Administrative Agent’s Office not later than 12:00 noon on the day specified in such Revolving Loan Notice, whereupon, subject to Section 2.04(c)(ii), each Lender that so makes funds available shall be deemed to have
made a Base Rate Loan to the Borrower in such amount. The Administrative Agent shall remit the funds so received to the Swing Line Lender. 
 (ii) If for any reason any Swing Line Loan cannot be refinanced by such a Borrowing in accordance with Section 2.04(c)(i), the request for Base Rate Loans submitted by the Swing Line Lender as
set forth herein shall be deemed to be a request by the Swing Line Lender that each of the Lenders fund its risk participation in the relevant Swing Line Loan and each Lender’s payment to the Administrative Agent for the account of the Swing
Line Lender pursuant to Section 2.04(c)(i) shall be deemed payment in respect of such participation. 
 (iii) If any Lender fails to make available to the Administrative Agent for the account of the Swing Line Lender any amount required to be paid by such Lender pursuant to the foregoing provisions of this
Section 2.04(c) by the time specified in Section 2.04(c)(i), the Swing Line 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 the Swing Line Lender at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by the Swing Line Lender in
accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the Swing Line Lender in connection with the foregoing. If such Lender pays such amount (with interest and
fees as aforesaid), the amount so paid (excluding such interest and fees) shall constitute such Lender’s Revolving Loan included in the relevant Revolving Borrowing or funded participation in the relevant Swing Line Loan, as the case may be. A
certificate of the Swing Line Lender submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error. 
 (iv) Each Lender’s obligation to make Revolving Loans or to purchase and fund risk participations in
Swing Line Loans pursuant to this Section 2.04(c) 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

  

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against the Swing Line Lender, the Borrower or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default or an Overadvance, or (C) any other occurrence,
event or condition, whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Revolving Loans pursuant to this Section 2.04(c) is subject to the conditions set forth in
Section 4.02. No such funding of risk participations shall relieve or otherwise impair the obligation of the Borrower to repay Swing Line Loans, together with interest as provided herein. 
 (d) Repayment of Participations. 
 (i) At any time after any Lender has purchased and funded a risk participation in a Swing Line Loan, if the
Swing Line Lender receives any payment on account of such Swing Line Loan, the Swing Line Lender will distribute to such Lender its Applicable Percentage 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 the Swing Line Lender. 
 (ii) If any payment received by the Swing Line Lender in respect of principal or interest on any Swing Line Loan is required to be returned by the Swing Line Lender under any of the circumstances
described in Section 10.05 (including pursuant to any settlement entered into by the Swing Line Lender in its discretion), each Lender shall pay to the Swing Line Lender its Applicable Percentage thereof on demand of the Administrative
Agent, plus interest thereon from the date of such demand to the date such amount is returned, at a rate per annum equal to the Federal Funds Rate. The Administrative Agent will make such demand upon the request of the Swing Line Lender. The
obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement. 
 (e) Interest for Account of Swing Line Lender. The Swing Line Lender shall be responsible for invoicing the Borrower for interest on the Swing Line Loans. Until each Lender funds its Base Rate Loan
or risk participation pursuant to this Section 2.04 to refinance such Lender’s Applicable Percentage of any Swing Line Loan, interest in respect of such Applicable Percentage shall be solely for the account of the Swing Line Lender.

 (f) Payments Directly to Swing Line Lender. The Borrower shall make all payments of principal and
interest in respect of the Swing Line Loans directly to the Swing Line Lender. 
 2.05 Prepayments.

 (a) Voluntary Prepayments – Revolving Loans. The Borrower may, upon notice to the Administrative
Agent, at any time or from time to time voluntarily prepay Revolving Loans in whole or in part without premium or penalty; provided that (i) such notice must be received by the Administrative Agent not later than 11:00 a.m.
(A) three Business Days prior to any date of prepayment of Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a
whole multiple of $1,000,000 in excess thereof; and (iii) any prepayment of Base Rate Loans

  

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shall be in a principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding. Each such notice
shall specify the date and amount of such prepayment and the Type(s) of Loans to be prepaid and, if Eurodollar Rate Loans are to be prepaid, the Interest Period(s) of such Loans. The Administrative Agent will promptly notify each Lender of its
receipt of each such notice, and of the amount of such Lender’s Applicable Percentage of such prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be
due and payable on the date specified therein. Any prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amounts required pursuant to Section 3.05. Each such
prepayment shall be applied to the Revolving Loans of the Lenders in accordance with their respective Applicable Percentages. 
 (b) Voluntary Prepayments – Swing Line Loans. The Borrower may, upon notice to the Swing Line Lender (with a copy to the Administrative Agent), at any time or from time to time, voluntarily
prepay Swing Line Loans in whole or in part without premium or penalty; provided that such notice must be received by the Swing Line Lender and the Administrative Agent not later than 12:00 noon on the date of the prepayment. Each such notice
shall specify the date and amount of such prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.

 (c) Mandatory Prepayments – Excess Outstandings. If for any reason an Overadvance exists, the
Borrower shall immediately prepay Loans and/or Cash Collateralize the L/C Obligations on the Administrative Agent’s demand and in an aggregate amount equal to the amount by which the Total Outstandings exceed the Borrowing Base;
provided, however, that the Borrower shall not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.05(c) unless after the prepayment in full of the Loans the Total Outstandings exceed the
Borrowing Base. 
 (d) Mandatory Prepayments – Asset Dispositions. Upon the Disposition, in any
single transaction or series of related transactions, of (i) any Borrowing Base Collateral in any amount or (ii) any other property of the Borrower or its Subsidiaries with a fair market value of $2,000,000 or more, in each case other than
Dispositions permitted by clauses (a) through (f) of Section 7.05, the Borrower shall make a mandatory prepayment of the Loans to the Administrative Agent for the Lenders (and if the Outstanding Amount of all Loans is zero,
pledge to the Administrative Agent cash or cash equivalent investments in an amount equal to the lesser of (A) the aggregate amount of the Net Cash Proceeds of such Disposition and (B) any Outstanding Amount of L/C Obligations) in the
aggregate amount equal to the Net Cash Proceeds of such Disposition, which prepayment shall be applied to the Loans; provided, however, if on the date of receipt by the Borrower or any of its Subsidiaries of such Net Cash Proceeds all
of the conditions precedent to a Credit Extension set forth in Section 4.02 are satisfied (other than the delivery of a Revolving Loan Notice) and after giving effect to any related Borrowing Base reduction, the Borrower shall not be
required to make such prepayment. 
  

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 (e) Prepayment from Recovery Events. Immediately upon receipt by any
of the Loan Parties of Net Recovery Proceeds for any Recovery Event (i) in any amount with respect to Borrowing Base Collateral or (ii) in an aggregate amount in excess of $1,000,000 with respect to Collateral other than Borrowing Base
Collateral, the Borrower shall, at the request of the Required Lenders, prepay Loans in an aggregate principal amount equal to 100% of such excess amount of the Net Recovery Proceeds from such Recovery Event (and if the Outstanding Amount of all
Loans is zero, pledge to the Administrative Agent cash or cash equivalent investments in an amount equal to the lesser of (A) such Net Recovery Proceeds and (B) any Outstanding Amount of L/C Obligations); provided that the Required
Lenders may, at their discretion, permit or require the applicable Loan Party to use such Net Recovery Proceeds, or any part thereof, to replace or restore any properties or assets in respect of which such Net Recovery Proceeds were paid within 365
days of receipt thereof; provided, however, if on the date of receipt by any Loan Party of such Net Recovery Proceeds all of the conditions precedent to a Credit Extension set forth in Section 4.02 are satisfied (other than
the delivery of a Revolving Loan Notice) and after giving effect to any related Borrowing Base reduction, the Borrower shall not be required to make such prepayment. 
 (f) Repayment Application. Any mandatory prepayment of Loans pursuant to Section 2.05(c), (d) or (e) shall (i) include and be applied
to interest to the date of such prepayment on the principal amount prepaid and any additional amounts required pursuant to Section 3.05, and (ii) not be subject to any notice and minimum payment provisions. 
 2.06 Termination or Reduction of Commitments. The Borrower may, upon notice to the Administrative Agent, terminate
the Aggregate Commitments, or from time to time permanently reduce the Aggregate Commitments; provided that (a) any such notice shall be received by the Administrative Agent not later than 10:00 a.m. five Business Days prior to the date
of termination or reduction, (b) any such partial reduction shall be in an aggregate amount of $10,000,000 or any whole multiple of $1,000,000 in excess thereof, (c) the Borrower shall not terminate or reduce the Aggregate Commitments if,
after giving effect thereto and to any concurrent prepayments hereunder, the Total Outstandings would exceed the Borrowing Base, and (d) if, after giving effect to any reduction of the Aggregate Commitments, the Letter of Credit Sublimit or the
Swing Line Sublimit exceeds the amount of the Aggregate Commitments, such Sublimit shall be automatically reduced by the amount of such excess. The Administrative Agent will promptly notify the Lenders of any such notice of termination or reduction
of the Aggregate Commitments. Any reduction of the Aggregate Commitments shall be applied to the Commitment of each Lender according to its Applicable Percentage. All fees accrued until the effective date of any termination of the Aggregate
Commitments shall be paid on the effective date of such termination. 
 2.07 Repayment of Loans.

 (a) The Borrower shall repay to the Lenders on the Maturity Date the aggregate principal amount of Revolving
Loans outstanding on such date and all other outstanding and unpaid Obligations. 
  

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 (b) The Borrower shall repay each Swing Line Loan on the earlier to occur of
(i) demand of the Swing Line Lender (which demand shall not be made earlier than ten Business Days after each Swing Line Loan is made) and (ii) the Maturity Date. 
 (c) During any Trigger Period, the ledger balance in the main Dominion Account as of the end of a Business Day shall be applied to the Obligations at the beginning of the next
Business Day. If, as a result of such application, a credit balance exists, the balance shall not accrue interest in favor of the Borrower and shall be made available to the Borrower as long as no Default or Event of Default exists. During any
Trigger Period, the Borrower irrevocably waives the right to direct the application of any payments or Collateral proceeds, and agrees that the Administrative Agent shall have the continuing, exclusive right to apply and reapply same against the
Obligations, in such manner as the Administrative Agent deems advisable and in accordance with this Agreement. 
 2.08 Interest. 
 (a) Subject to the provisions of subsection (b) below, (i) each
Eurodollar Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the lesser of (x) the Highest Lawful Rate and (y) the Eurodollar Rate for such Interest Period
plus the Applicable Rate; (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the lesser of (x) the Highest Lawful Rate and
(y) the Base Rate in effect from time to time plus the Applicable Rate; and (iii) each Swing Line Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to
the lesser of (x) the Highest Lawful Rate and (y) the Base Rate plus the Applicable Rate. 
 (b) (i) If any amount of principal of any Loan is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating
interest rate per annum at all times equal to the lesser of (x) the Highest Lawful Rate and (y) the Default Rate, to the fullest extent permitted by applicable Laws. 
 (ii) If any amount (other than principal of any Loan) payable by the Borrower under any Loan Document is not
paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then upon the request of the Required Lenders, such amount shall thereafter bear interest, to the fullest extent permitted by
Applicable Law at a fluctuating interest rate per annum at all times equal to the lesser of (x) the Highest Lawful Rate and (y) the Default Rate, to the fullest extent permitted by applicable Laws. 
 (iii) Upon the request of the Required Lenders, while any Event of Default exists, the Borrower shall pay
interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the lesser of (x) the Highest Lawful Rate and (y) the Default Rate, to the fullest extent permitted by
applicable Laws. 
  

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 (iv) Accrued and unpaid interest on past due amounts
(including interest on past due interest) shall be due and payable upon demand. 
 (c) Interest on each Loan
shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein. Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and
before and after the commencement of any proceeding under any Debtor Relief Law. 
 2.09 Fees. In
addition to certain fees described in subsections (i) and (j) of Section 2.03: 
 (a)
Commitment Fee. The Borrower shall pay to the Administrative Agent for the account of each Lender in accordance with its Applicable Percentage, a commitment fee (“Commitment Fee”) equal to the Applicable Rate times the
actual daily amount by which the Aggregate Commitments exceed the sum of (i) the Outstanding Amount of Loans and (ii) the Outstanding Amount of L/C Obligations. The Commitment Fee shall accrue at all times during the Availability Period,
including at any time during which one or more of the conditions in Article IV is not met, and shall be due and payable monthly in arrears on the first Business Day of each month, commencing with the first such date to occur after the Closing
Date, and on the Maturity Date. The Commitment Fee shall be calculated monthly in arrears, and if there is any change in the Applicable Rate during any month, the actual daily amount shall be computed and multiplied by the Applicable Rate separately
for each period during such month that such Applicable Rate was in effect. For purposes of computation of the Commitment Fee, Swing Line Loans shall not be counted toward or considered usage of the Aggregate Commitments. 
 (b) Other Fees. 
 (i) The Borrower shall pay to the Arranger and the Administrative Agent for their own respective accounts fees in the amounts and at the times specified in the Fee Letter. Such fees
shall be fully earned when paid and shall not be refundable for any reason whatsoever. 
 (ii)
The Borrower shall pay to the Lenders such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

 2.10 Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate. 
 (a) Subject to Section 10.09, all computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or
any portion thereof, for the day on which the Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.12(a), bear interest for one

  

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day. Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error. 
 (b) If, as a result of any restatement of or other adjustment to the financial statements of the Borrower or for any other
reason, the Borrower or the Lenders determine that (i) the Leverage Ratio as calculated by the Borrower as of any applicable date was inaccurate and (ii) a proper calculation of the Leverage Ratio would have resulted in higher pricing for
such period, the Borrower shall immediately be obligated to pay to the Administrative Agent for the account of the Applicable Lenders, promptly on demand by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an order
for relief with respect to the Borrower under the Bankruptcy Code of the United States, automatically and without further action by the Administrative Agent, any Lender or the L/C Issuer), an amount equal to the excess of the amount of interest and
fees that should have been paid for such period over the amount of interest and fees actually paid for such period. This paragraph shall not limit the rights of the Administrative Agent, any Lender or the L/C Issuer, as the case may be, under
Section 2.03(c)(iii), 2.03(i) or 2.08(b) or under Article III. The Borrower’s obligations under this paragraph shall survive the termination of the Aggregate Commitments and the repayment of all other
Obligations hereunder. 
 2.11 Evidence of Debt. 
 (a) The Credit Extensions 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 course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by the 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 made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Revolving Loan Note, and/or Swing Line Note, as applicable,
which shall evidence such Lender’s Loans in addition to such accounts or records. Each Lender may attach schedules to its Notes and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect
thereto. 
 (b) In addition to the accounts and records referred to in subsection (a), 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 Swing Line Loans. 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. 
  

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 2.12 Payments Generally; Administrative Agent’s Clawback.

 (a) General. All payments to be made by the Borrower shall be made without condition or deduction for
any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is
owed, at the Administrative Agent’s Office in Dollars and in immediately available funds not later than 1:00 p.m. on the date specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other
applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office. All payments received by the Administrative Agent after 1:00 p.m. shall be deemed received on the next succeeding
Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of
time shall be reflected in computing interest or fees, as the case may be. 
 (b) (i) Funding by Lenders;
Presumption by Administrative Agent. Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing of Eurodollar Rate Loans (or, in the case of any Borrowing of Base Rate Loans, prior to
12:00 noon on the date of such Borrowing) that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such
date in accordance with Section 2.02 (or, in the case of a Borrowing of Base Rate Loans, that such Lender has made such share available in accordance with and at the time required by Section 2.02) and may, in reliance upon
such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing or any settlement of a Swing Line Loan pursuant to Section 2.04(c) available to
the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from and
including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing, and
(B) in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the
Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall
constitute such Lender’s Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

 (ii) Payments by Borrower; Presumptions by Administrative Agent. Unless the
Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders

  

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or the L/C Issuer hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders or the L/C Issuer, as the case may be, the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the L/C Issuer, as the case may be,
severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the L/C Issuer, in immediately available funds with interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

 A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount owing under
this subsection (b) shall be conclusive, absent manifest error. 
 (c) Failure to Satisfy Conditions
Precedent. If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the Borrower by the
Administrative Agent because the conditions to the applicable Credit Extension set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as
received from such Lender) to such Lender, without interest. 
 (d) Obligations of Lenders Several. The
obligations of the Lenders hereunder to make Loans, to fund participations in Letters of Credit and Swing Line Loans and to make payments pursuant to Section 10.04(c) are several and not joint. The failure of any Lender to make any Loan,
to fund any such participation or to make any payment under Section 10.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for
the failure of any other Lender to so make its Loan, to purchase its participation or to make its payment under Section 10.04(c). 
 (e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it
has obtained or will obtain the funds for any Loan in any particular place or manner. 
 2.13 Sharing of
Payments by Lenders. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of the Loans made by it, or the participations in L/C Obligations
or in Swing Line Loans held by it resulting in such Lender’s receiving payment of a proportion of the aggregate amount of such Loans or participations and accrued interest thereon greater than its pro rata share thereof as
provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and subparticipations in L/C Obligations and
Swing Line Loans of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall

  

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be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them, provided that:

 (i) if any such participations or subparticipations are purchased and all or any portion of
the payment giving rise thereto is recovered, such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and 
 (ii) the provisions of this Section shall not be construed to apply to (w) any payment made by the
Borrower pursuant to and in accordance with the express terms of this Agreement, (x) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or subparticipations in L/C Obligations
or Swing Line Loans to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this Section shall apply), (y) any payment obtained by the L/C Issuer or Swing Line Lender in connection
with cash collateral or other arrangements made in respect of an Impacted Lender. 
 Each Loan Party consents to
the foregoing and agrees, to the extent it may effectively do so under Applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Loan Party rights of setoff and counterclaim with
respect to such participation as fully as if such Lender were a direct creditor of such Loan Party in the amount of such participation. 
 2.14 Increase in Commitments. 
 (a) Request for
Increase. Provided that (i) there exists no Default, (ii) such increase is permitted pursuant to the terms and conditions of the Senior Notes and (iii) such increase would not result in any obligation on the part of any Loan Party
to create any Lien in favor of the holders of the Senior Notes, upon notice to the Administrative Agent (which shall promptly notify the Lenders), the Borrower may from time to time, request an increase in the Aggregate Commitments by an amount (for
all such requests) not exceeding $100,000,000; provided that (A) any such request for an increase shall be in a minimum amount of $25,000,000, and (B) the Borrower may make a maximum of three such requests. At the time of sending
such notice, the Borrower (in consultation with the Administrative Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten Business Days from the date of delivery of such notice
to the Lenders). 
 (b) Lender Elections to Increase. Each Lender shall notify the Administrative Agent
within such time period whether or not it agrees to increase its Commitment and, if so, whether by an amount equal to, greater than, or less than its Applicable Percentage of such requested increase. Any Lender not responding within such time period
shall be deemed to have declined to increase its Commitment. 
 (c) Notification by Administrative Agent;
Additional Lenders. The Administrative Agent shall notify the Borrower and each Lender of the Lenders’ responses to each request made hereunder. To achieve the full amount of a requested increase and subject to the approval of the

  

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Administrative Agent, the L/C Issuer and the Swing Line Lender (which approvals shall not be unreasonably withheld), the Borrower may also invite additional Eligible Assignees to become Lenders
pursuant to a joinder agreement in form and substance satisfactory to the Administrative Agent and its counsel. 
 (d) Effective Date and Allocations. If the Aggregate Commitments are increased in accordance with this Section, the Administrative Agent and the Borrower shall determine the effective date (the “Increase Effective
Date”) and the final allocation of such increase. The Administrative Agent shall promptly notify the Borrower and the Lenders of the final allocation of such increase and the Increase Effective Date. For the avoidance of doubt, any Loans
made and Letters of Credit issued following the Increase Effective Date and utilizing any increase in the Aggregate Commitments shall constitute Obligations for all purposes of the Loan Documents. 
 (e) Conditions to Effectiveness of Increase. As a condition precedent to such increase, the Borrower shall deliver to
the Administrative Agent a certificate of each Loan Party dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer of such Loan Party (i) certifying and attaching the resolutions adopted by
such Loan Party approving or consenting to such increase, and (ii) in the case of the Borrower, certifying that, before and after giving effect to such increase, (A) the representations and warranties contained in Article V and the
other Loan Documents are true and correct on and as of the Increase Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date,
and except that for purposes of this Section 2.14, the representations and warranties contained in subsection (a) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clause
(a) of Section 6.01, (B) no Default exists, (C) the Borrower and the other Loan Parties are in compliance with all of the terms and conditions of the Senior Notes, and (D) the increase will not result in any
obligation to grant any Liens in favor of the holders of the Senior Notes. The Borrower shall prepay any Revolving Loans outstanding on the Increase Effective Date (and pay any additional amounts required pursuant to Section 3.05) to the
extent necessary to keep the outstanding Revolving Loans ratable with any revised Applicable Percentages arising from any nonratable increase in the Commitments under this Section. 
 (f) Conflicting Provisions. This Section shall supersede any provisions in Sections 2.13 or 10.01 to
the contrary. 
 ARTICLE III. 
 TAXES, YIELD PROTECTION AND ILLEGALITY 
 3.01 Taxes.

 (a) Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower
hereunder or under any other Loan Document shall be made free and clear of and without reduction or withholding for any Indemnified Taxes or Other Taxes, provided that if the Borrower or the Administrative Agent shall be required by Applicable Law
to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then (i) the

  

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sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent,
Lender or L/C Issuer, as the case may be, receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall timely pay the full amount
deducted to the relevant Governmental Authority in accordance with Applicable Law. Tax deductions and withholding shall be based on the information provided pursuant to clause (e) of this Section. 
 (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of subsection (a) above, the
Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with Applicable Law. 
 (c) Indemnification by the Borrower. The Borrower shall indemnify the Administrative Agent, each Lender and the L/C Issuer, within 10 days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes incurred by
or on account of any obligation of the Borrower hereunder or under any other Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and paid by the Administrative
Agent, such Lender or the L/C Issuer, as the case may be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto as well as any amount that the Administrative Agent fails to recover from a Lender or the L/C
Issuer as contemplated in the last paragraph of Section 3.01(e), whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of
such payment or liability delivered to the Borrower by a Lender or the L/C Issuer (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender or the L/C Issuer, shall be conclusive absent
manifest error. 
 (d) Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the
return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 
 (e) Status of Lenders. Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is resident for tax purposes, or any treaty to which such
jurisdiction is a party, with respect to payments hereunder or under any other Loan Document shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times prescribed by Applicable Law or reasonably requested by the
Borrower or the Administrative Agent, such properly completed and executed documentation prescribed by Applicable Law as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if
requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to
determine whether or not such Lender is subject to backup withholding or information reporting requirements. 
  

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 Without limiting the generality of the foregoing, in the event that the
Borrower is resident for tax purposes in the United States, (i) any Lender that is a “United States person” within the meaning of section 7701(a)(30) of the Code shall deliver to the Administrative Agent and the Borrower Internal
Revenue Service Form W-9 or such other documentation or information prescribed by Applicable Law or reasonably requested by the Administrative Agent or the Borrower to determine whether such Lender is subject to backup withholding or information
reporting requirements, and (ii) any Foreign Lender shall deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a
Lender under this Agreement (and from time to time thereafter upon 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) duly completed copies of Internal Revenue Service Form W-8IMY
and all required supporting documentation, 
 (D) 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 (1) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (2) a
“10 percent shareholder” of the Borrower within the meaning of section 881(c)(3)(B) of the Code, or (3) 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 
 (E) 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. 
 Each Lender and the L/C Issuer shall promptly notify the Borrower and the
Administrative Agent of any change in circumstances that would change any claimed Tax exemption or reduction. Each Lender and the L/C Issuer shall indemnify, hold harmless and reimburse (within 10 days after demand therefor) the Borrower and the
Administrative Agent for any Taxes, losses, claims, liabilities, penalties, interest and expenses (including reasonable attorneys’ fees) incurred by or asserted against the Borrower or the Administrative Agent by any Governmental Authority due
to such Lender’s or the L/C Issuer’s failure to deliver, or inaccuracy or deficiency in, any documentation required to be delivered by it pursuant to this Section. Each Lender and the L/C Issuer authorizes the Administrative Agent to set
off any amounts due to the Administrative Agent under this Section against any amounts payable to such Lender or the L/C Issuer under any Loan Document. 
  

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 (f) Treatment of Certain Refunds. If the Administrative Agent, any
Lender or the L/C Issuer 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 expenses of the Administrative Agent, such Lender or the L/C Issuer, 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 the L/C Issuer, 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 the L/C Issuer in the event the Administrative Agent, such Lender or the L/C Issuer is required to repay such refund to such Governmental Authority. This subsection shall not be construed to
require the Administrative Agent, any Lender or the L/C Issuer 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. 
 3.02 Illegality. If any Lender determines that any Law has made it unlawful, or that any Governmental Authority has
asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or to determine or charge interest rates based upon the Eurodollar Rate, or any Governmental Authority has imposed
material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, any obligation of
such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such
determination no longer exist. Upon receipt of such notice, the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate Loans,
either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurodollar Rate Loans. Upon
any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted. 
 3.03 Inability to Determine Rates. If the Required Lenders determine that for any reason in connection with any request for a Eurodollar Rate Loan or a conversion to or continuation thereof that (a) Dollar deposits are not being
offered to banks in the London interbank eurodollar market for the applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and reasonable means do not exist for determining the Eurodollar Rate for any requested Interest
Period with respect to a proposed Eurodollar Rate Loan, or (c) the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such
Loan, the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter, the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until the Administrative Agent (upon the instruction of the
Required Lenders) revokes such notice. Upon

  

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receipt of such notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans or, failing that, will be deemed to have converted
such request into a request for a Borrowing of Base Rate Loans in the amount specified therein. 
 3.04
Increased Costs; Reserves on Eurodollar Rate Loans. 
 (a) Increased Costs Generally. If any Change
in Law shall: 
 (i) impose, modify or deem applicable any reserve, special deposit, compulsory
loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement contemplated by Section 3.04(e)) or the L/C
Issuer; 
 (ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or any Eurodollar Rate Loan made by it, or change the basis of taxation of payments to such Lender or the L/C Issuer in respect thereof (except for Indemnified
Taxes or Other Taxes covered by Section 3.01 and the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender or the L/C Issuer); or 
 (iii) impose on any Lender or the L/C Issuer or the London interbank market any other condition, cost or
expense affecting this Agreement or Eurodollar Rate Loans made by such Lender or any Letter of Credit or participation therein; 
 and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Rate Loan (or of maintaining its obligation to make any such Loan), or to
increase the cost to such Lender or the L/C Issuer of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or
receivable by such Lender or the L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or the L/C Issuer, the Borrower will pay to such Lender or the L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or the L/C Issuer, as the case may be, for such additional costs incurred or reduction suffered. 
 (b) Capital Requirements. If any Lender or the L/C Issuer determines that any Change in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or
such Lender’s or the L/C Issuer’s holding company, if any, regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s capital or on the capital of such
Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by
the L/C Issuer, to a level below that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C
Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s

  

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holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as will
compensate such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction suffered. 
 (c) Certificates for Reimbursement. A certificate of a Lender or the L/C Issuer setting forth the amount or amounts necessary to compensate such Lender or the L/C Issuer or its holding company, as
the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay such Lender or the L/C Issuer, as the case may be, the amount shown as
due on any such certificate within 10 days after receipt thereof. 
 (d) Delay in Requests. Failure or
delay on the part of any Lender or the L/C Issuer to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of such Lender’s or the L/C Issuer’s right to demand such compensation,
provided that the Borrower shall not be required to compensate a Lender or the L/C Issuer pursuant to the foregoing provisions of this Section for any increased costs incurred or reductions suffered more than nine months prior to the date
that such Lender or the L/C Issuer, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the L/C Issuer’s intention to claim compensation therefor (except
that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof). 
 (e) Reserves on Eurodollar Rate Loans. The Borrower shall pay to each Lender, as long as such Lender shall be
required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”), additional interest on the unpaid principal amount of each
Eurodollar Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which shall be due and payable on each date on which
interest is payable on such Loan, provided the Borrower shall have received at least 10 days’ prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender. If a Lender fails to give notice 10 days
prior to the relevant Interest Payment Date, such additional interest shall be due and payable 10 days from receipt of such notice. 
 3.05 Compensation for Losses. Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender
harmless from any loss, cost or expense incurred by it as a result of: 
 (a) any continuation, conversion,
payment or prepayment of any Loan other than a Base Rate Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise); 
 (b) any failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow,
continue or convert any Loan other than a Base Rate Loan on the date or in the amount notified by the Borrower; or 
  

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 (c) any assignment of a Eurodollar Rate Loan on a day other than the last
day of the Interest Period therefor as a result of a request by the Borrower pursuant to Section 10.13; 
 including
any loss of anticipated profits and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained. The Borrower shall
also pay any customary administrative fees charged by such Lender in connection with the foregoing. 
 For
purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar Rate for such Loan by a matching deposit or
other borrowing in the London interbank eurodollar market for a comparable amount and for a comparable period, whether or not such Eurodollar Rate Loan was in fact so funded. 
 3.06 Mitigation Obligations; Replacement of Lenders. 
 (a) Designation of a Different Lending Office. If any Lender requests compensation under Section 3.04, or the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then such Lender shall use reasonable efforts to designate a different Lending Office
for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 3.01 or Section 3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each case, would not
subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or
assignment. 
 (b) Replacement of Lenders. If any Lender requests compensation under
Section 3.04, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to
Section 3.02, the Borrower may replace such Lender in accordance with Section 10.13. 
 3.07 Survival. All of the Borrower’s obligations under this Article III shall survive termination of the Aggregate Commitments and repayment of all other Obligations hereunder. 
 ARTICLE IV. 
 CONDITIONS PRECEDENT TO CREDIT EXTENSIONS 
 4.01 Conditions of Initial Credit Extension.
The obligation of the L/C Issuer and each Lender to make its initial Credit Extension hereunder is subject to satisfaction of the following conditions precedent: 
 (a) The Administrative Agent’s receipt of the following, each of which shall be originals or telecopies (followed promptly by originals) unless otherwise specified, each
properly

  

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executed by a Responsible Officer of the signing Loan Party (if applicable), each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the
Closing Date) and each in form and substance satisfactory to the Administrative Agent and each of the Lenders: 
 (i) executed counterparts of this Agreement and the Security Agreement, sufficient in number for distribution to the Administrative Agent, each Lender and the Borrower; 
 (ii) Notes executed by the Borrower and delivered to each Lender that requests issuance of a Note;

 (iii) a consent executed by the Guarantors pursuant to which each Guarantor consents to the
amendment and restatement of the Existing Credit Agreement by this Agreement and reaffirms its obligations under the Guaranty; 
 (iv) such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may require evidencing the
identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party; 
 (v) such documents and certifications as the Administrative Agent may reasonably require to evidence that
each Loan Party is duly organized or formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business
requires such qualification, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; 
 (vi) favorable opinions of Thompson & Knight L.L.P., and general counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, as to the matters set forth in Exhibit
D and such other matters concerning the Loan Parties and the Loan Documents as the Administrative Agent may reasonably request; 
 (vii) a certificate of a Responsible Officer of each Loan Party either (A) attaching copies of all consents, licenses and approvals required in connection with the execution, delivery and performance
by such Loan Party and the validity against such Loan Party of the Loan Documents to which it is a party, and such consents, licenses and approvals shall be in full force and effect, or (B) stating that no such consents, licenses or approvals
are so required; 
 (viii) a certificate signed by a Responsible Officer of the Borrower
certifying (A) that the conditions specified in Sections 4.02(a) and 4.02(b) have been satisfied, and (B) that there has been no event or circumstance since the date of the Audited Financial Statements that has had or could
be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect; 
  

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 (ix) a solvency certificate signed by the Treasurer (or such
other officer as may be acceptable to the Administrative Agent) of the Borrower in form and substance satisfactory to the Administrative Agent; 
 (x) a Borrowing Base Certificate prepared as of a date no earlier than 60 days prior to the Closing Date; and 
 (xi) such other assurances, certificates, documents, consents or opinions as the Administrative Agent, the
L/C Issuer, the Swing Line Lender or the Required Lenders reasonably may require. 
 (b) The Administrative
Agent shall have received confirmation that all UCC-3 amendments relating to the filings previously made to perfect its Liens in the Collateral have been filed in the appropriate jurisdictions, as well as copies of all UCC searches of the Borrower
and its Material Domestic Subsidiaries, each such search showing no Liens except Permitted Liens. 
 (c) The
Administrative Agent shall have received a list of all Rolling Stock owned by the Loan Parties (other than Rolling Stock with a de minimis value), which list shall categorize each item of material Rolling Stock and shall identify whether such
Rolling Stock is evidenced by a certificate of title. 
 (d) The Administrative Agent shall have received
executed counterparts of this Agreement from the Required Lenders. 
 (e) Any fees required to be paid on or
before the Closing Date shall have been paid. 
 (f) The Administrative Agent shall have received copies of
policies or certificates of insurance for the insurance policies carried by the Borrower and its Subsidiaries, all in compliance with the Loan Documents. 
 (g) Unless waived by the Administrative Agent, the Borrower shall have paid all fees, charges and disbursements of counsel to the Administrative Agent to the extent invoiced prior to or on the Closing
Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such
estimate shall not thereafter preclude a final settling of accounts between the Borrower and the Administrative Agent). 
 (h) There shall not have occurred a material adverse change (x) in the operations, business, properties, liabilities (actual or contingent), or condition (financial or otherwise) of the Borrower and
its Subsidiaries, taken as a whole, since May 31, 2008 or (y) in the facts and information regarding such entities represented to date. 
 (i) The Administrative Agent shall be satisfied that no action, suit, investigation, litigation or proceeding is pending or threatened in any court or before any arbitrator or other Governmental Authority
that could reasonably be expected to (i) have a Material Adverse Effect,

  

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or could impair the Borrower’s ability to perform satisfactorily under this Agreement or (ii) materially and adversely affect this Agreement or the transactions contemplated thereby.

 (j) The Administrative Agent shall have received, in form and detail satisfactory to it, financial statements
dated as of February 28, 2009. 
 (k) Upon giving effect to the Total Outstandings as of the Closing Date,
Availability shall be at least $100,000,000. 
 (l) The Administrative Agent shall have completed its business,
financial and legal due diligence of the Loan Parties, including a field exam and an appraisal with results satisfactory to the Administrative Agent. 
 Without limiting the generality of the last paragraph of Section 9.03 or the provisions of Section 9.04, for purposes of determining compliance with the conditions specified in
this Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto. 
 4.02 Conditions to all Credit Extensions. The obligation of each Lender to honor any Request for Credit Extension
(other than a Revolving Loan Notice requesting only a conversion of Revolving Loans to the other Type, or a continuation of Eurodollar Rate Loans) is subject to the following conditions precedent: 
 (a) The representations and warranties of the Borrower and each other Loan Party contained in Article V or any other
Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct on and as of the date of such Credit Extension, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that for purposes of this Section 4.02, the representations and warranties contained in subsection
(a) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clause (a) of Section 6.01. 
 (b) No Default shall exist, or would result from such proposed Credit Extension or from the application of the proceeds thereof. 
 (c) The Administrative Agent and, if applicable, the L/C Issuer or the Swing Line Lender shall have received a Request for
Credit Extension in accordance with the requirements hereof. 
 Each Request for Credit Extension (other than a
Revolving Loan Notice requesting only a conversion of Revolving Loans to the other Type or a continuation of Eurodollar Rate Loans) submitted by the Borrower shall be deemed to be a representation and warranty that the conditions specified in
Sections 4.02(a) and 4.02(b) have been satisfied on and as of the date of the applicable Credit Extension. 
  

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 Upon satisfaction of all the conditions specified in Sections 4.01
and 4.02, the Existing Credit Agreement will be amended and restated by this Agreement (with all loans outstanding thereunder and the Existing Letters of Credit being renewed and continued) and all Liens securing obligations under the
Existing Credit Agreement shall be automatically continued. 
 ARTICLE V. 
 REPRESENTATIONS AND WARRANTIES 
 The Borrower represents and warrants to the Administrative Agent and the Lenders that: 
 5.01 Existence, Qualification and Power; Compliance with Laws. The Borrower and each Subsidiary (a) is duly organized or formed, validly existing and in good standing under the Laws of the
jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and
(ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party, (c) is duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification or license, and (d) is in compliance with all Laws; except in each case referred to in clause (b)(i), (c) or (d), to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect. 
 5.02 Authorization; No Contravention. The
execution, delivery and performance by each Loan Party of each Loan Document to which such Person is party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of
any of such Person’s Organization Documents; (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any Contractual Obligation to which such Person
is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject;
or (c) violate any Law. The Borrower and each Subsidiary is in compliance with all Contractual Obligations referred to in clause (b)(i), except to the extent that failure to do so could not reasonably be expected to have a Material Adverse
Effect. 
 5.03 Governmental Authorization; Other Consents. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this
Agreement or any other Loan Document. 
 5.04 Binding Effect. This Agreement has been, and each other
Loan Document, when delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding
obligation of such Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms, except as limited by (a) Debtor Relief Laws and (b) the effect of general principles of equity whether applied by a
court of Law or equity. 
  

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 5.05 Financial Statements; No Material Adverse Effect; No Internal
Control Event. 
 (a) The Audited Financial Statements (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; (ii) fairly present the financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of operations for
the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and (iii) show all material consolidated indebtedness and other liabilities, direct or
contingent, of the Borrower and its Subsidiaries as of the date thereof, including liabilities for taxes, material commitments and Debt, as and to the extent required to be reported in accordance with GAAP. 
 (b) Since the date most recent financial statements furnished pursuant to clause (a), (b) or (c) of
Section 6.01 (or, prior to the delivery of the first such financial statements, since the date of the Audited Financial Statements), there has been no event or circumstance (including, without limitation, an Internal Control Event),
either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect. 
 (c) The Borrower and its Subsidiaries have no Off-Balance Sheet Liabilities except for any sale and leaseback transactions permitted under Section 7.12. 
 5.06 Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the
Borrower after due and diligent investigation, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against the Borrower or any of its Subsidiaries or against any of their properties or revenues
that (a) purport to affect or pertain to this Agreement or any other Loan Document, or any of the transactions contemplated hereby, or (b) either individually or in the aggregate, would reasonably be expected to have a Material Adverse
Effect. 
 5.07 No Default. Neither the Borrower nor any Subsidiary is in default under or with respect
to any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing or would result from the consummation of the transactions
contemplated by this Agreement or any other Loan Document. 
 5.08 Ownership of Property; Liens. Each of
the Borrower and each Subsidiary has good record and marketable title in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of its business, except for such defects in title as could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The property of the Borrower and its Subsidiaries is subject to no Liens, other than Liens permitted by Section 7.01. 
  

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 5.09 Environmental Compliance. 
 (a) Permits, Etc. The Borrower and its Subsidiaries (i) have obtained all material Environmental Permits required
by Governmental Authorities necessary for the ownership and operation of their respective properties and the conduct of their respective businesses, except for such Environmental Permits the absence of which would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect; (ii) are in compliance with all terms and conditions of such Environmental Permits, if any, and with all other material requirements of applicable Environmental Laws, except
where such failure to comply would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; (iii) have not received notice of any violation or alleged violation of any Environmental Law or Environmental
Permit; and (iv) are not subject to any actual or contingent Environmental Liability, in each case in clauses (iii) and (iv) immediately preceding where the effect would individually or in the aggregate be reasonably expected to have
a Material Adverse Effect. 
 (b) Certain Liabilities. None of the present or, to the Borrower’s
knowledge, previously owned or operated Properties of the Borrower or of any of its present or former Subsidiaries, wherever located, (i) has been placed on or proposed to be placed on the National Priorities List, the Comprehensive
Environmental Response Compensation Liability Information System list, or their state or local analogs, or have been otherwise investigated, designated, listed or identified as a potential site for removal, remediation, cleanup, closure,
restoration, reclamation, or other response activity under any Environmental Laws, except for any such Property with respect to which such event would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;
(ii) is subject to a Lien, arising under or in connection with any Environmental Laws, that attaches to any revenues or to any Property owned or operated by the Borrower or any of its Subsidiaries, wherever located, which would individually or
in the aggregate reasonably be expected to have a Material Adverse Effect; or (iii) has been the site of any Release of Hazardous Materials from present or past operations which has caused at the site or at any third party site any condition
that has resulted in or would individually or in the aggregate reasonably be expected to result in the need for Response that would cause a Material Adverse Effect. 
 (c) Certified Actions. Without limiting the foregoing, (i) all necessary notices have been properly filed, and no further action is required under current Environmental
Law as to each Response or other restoration or remedial project taken by the Borrower, or its present or former Subsidiaries on any of their presently or formerly owned or operated Properties, except where the failure to do so would not
individually or in the aggregate be reasonably expected to have a Material Adverse Effect and (ii) the present and future liability, if any, of the Borrower and its Subsidiaries which would reasonably be expected to arise in connection with
requirements under Environmental Laws would not individually or in the aggregate be reasonably expected to have a Material Adverse Effect. 
 5.10 Insurance. The properties of the Borrower and its Subsidiaries are insured with financially sound and reputable insurance companies not Affiliates of the Borrower, in such amounts, with such
deductibles and covering such risks as are customarily carried by companies

  

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engaged in similar businesses and owning similar properties in localities where the Borrower or the applicable Subsidiary operates. 
 5.11 Taxes. The Borrower and its Subsidiaries have filed all Federal, state and other material tax returns and
reports required to be filed, and have paid all Federal, state and other material taxes shown on such returns and all other assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise
due and payable, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP. There is no proposed tax assessment against the
Borrower or any Subsidiary that would, if made, have a Material Adverse Effect. Other than the Tax Sharing and Indemnity Agreement between the Borrower and Chaparral Steel Company that was entered into in connection with the Spin-Off Transaction (as
defined in the Existing Credit Agreement), neither the Borrower nor any Subsidiary is party to any tax sharing agreement with any party outside the Borrower’s consolidated group. 
 5.12 ERISA Compliance. 
 (a) Each Plan is in compliance with the applicable provisions of ERISA, the Code and other Federal or state Laws, except such noncompliance as could not, individually or in the aggregate, be reasonably
expected to have a Material Adverse Effect. Each Plan that is intended to qualify under Section 401(a) of the Code has qualified in form and operation under such Section and, to the best knowledge of the Borrower, nothing has occurred which
would prevent, or cause the loss of, such qualification. The Borrower and each ERISA Affiliate have made all required contributions to each Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with respect to any Plan. 
 (b)
There are no pending or, to the best knowledge of the Borrower, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse Effect. There has
been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could reasonably be expected to result in a Material Adverse Effect. 
 (c) (i) No ERISA Event has occurred or is reasonably expected to occur that, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect; (ii) no Pension Plans have any Unfunded Pension Liability, individually or in the aggregate for all Pension Plans, in an amount which could reasonably be expected to have a Material
Adverse Effect; (iii) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under
Section 4007 of ERISA); (iv) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would
result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither the Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA.

  

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 5.13 Subsidiaries; Equity Interests. As of the Closing Date, the
Borrower has no Subsidiaries other than those specifically disclosed in Part (a) of Schedule 5.13, and all of the outstanding Equity Interests in such Subsidiaries have been validly issued, are fully paid and nonassessable and are owned
by a Loan Party in the amounts specified on Part (a) of Schedule 5.13 free and clear of all Liens other than the Administrative Agent’s Lien. As of the Closing Date, the Borrower has no equity investments in any other corporation or
entity other than those specifically disclosed in Part (b) of Schedule 5.13. All of the outstanding Equity Interests in the Borrower have been validly issued, are fully paid and nonassessable. 
 5.14 Margin Regulations; Investment Company Act. 
 (a) 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 FRB), 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 7.01 or Section 7.05 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 Debt and within the scope of Section 8.01(e) will be margin stock. 
 (b) None of the Borrower, any Person Controlling the Borrower, or any Subsidiary is or is required to be registered as an
“investment company” under the Investment Company Act of 1940. 
 5.15 Disclosure. The Borrower
has disclosed to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect. No report, financial statement, certificate or other information furnished (whether in writing or orally) by or on behalf of any Loan Party to the Administrative Agent or any
Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (in each case, as modified or supplemented by other information so furnished) contains any
material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made and on the dates on which they were made, not misleading; provided that,
with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time. 
 5.16 Compliance with Laws. Each of the Borrower and each Subsidiary is in compliance in all material respects with
the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good
faith by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either

  

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individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
 5.17 Intellectual Property; Licenses, Etc. The Borrower and its Subsidiaries own, or possess the right to use, all of the trademarks, service marks, trade names, copyrights,
patents, patent rights, franchises, licenses and other intellectual property rights (collectively, “IP Rights”) that are reasonably necessary for the operation of their respective businesses, without conflict with the rights of any
other Person, except for such conflicts that, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. To the knowledge of the Borrower, no slogan or other advertising device, product, process,
method, substance, part or other material now employed, or now contemplated to be employed, by the Borrower or any Subsidiary infringes upon any rights held by any other Person, except for such infringements that, either individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect. No claim or litigation regarding any of the foregoing is pending or, to the best knowledge of the Borrower, threatened, which, either individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect. 
 5.18 Common Enterprise. The operations
of the Borrower and its Subsidiaries require financing on a basis such that the credit supplied can be made available from time to time to the Borrower and various of its Subsidiaries, as required for the continued successful operation of the
Borrower and its Subsidiaries as a whole. The Borrower has requested the Lender to make credit available hereunder primarily for the purposes set forth in Section 6.11 and generally for the purposes of financing the operations of the
Borrower and its Subsidiaries. The Borrower and each of its Subsidiaries expects to derive benefit (and the Board of Directors or other similar governing body of the Borrower and each of its Subsidiaries has determined that such Subsidiary may
reasonably be expected to derive benefit), directly or indirectly, from a portion of the credit extended by the Lenders hereunder, both in its separate capacity and as a member of the group of companies, since the successful operation and condition
of the Borrower and each of its Subsidiaries is enhanced by the continued successful performance of the functions of the group as a whole. The Borrower acknowledges that, but for the agreement by each of the Guarantors to execute and deliver the
Guaranty, the Administrative Agent and the Lenders would not have made available the credit facilities established hereby on the terms set forth herein. 
 5.19 Solvent. The Borrower is, and the Borrower and its Subsidiaries are on a consolidated basis, Solvent. 
 5.20 Taxpayer Identification Number. The Borrower’s true and correct U.S. taxpayer identification number is set forth on Schedule 10.02. 
 5.21 Security Interests. All Liens of the Administrative Agent in the Collateral (other than Liens of the
Administrative Agent in (a) Rolling Stock that is not Eligible Rolling Stock, (b) deposit accounts for which a control agreement is not required under Section 6.15, and (c) prior to the date on which the Borrower and its
Subsidiaries are required to perfect such Liens pursuant to Section 6.14, Aggregates constituting as-extracted collateral) are duly perfected, first priority Liens, subject only to Permitted Liens. 
  

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 ARTICLE VI. 
 AFFIRMATIVE COVENANTS 
 So long as any
Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the Borrower shall, and shall (except in the case of the covenants set forth in
Sections 6.01, 6.02, and 6.03) cause each Subsidiary to: 
 6.01 Financial
Statements. Deliver to the Administrative Agent and each Lender, in form and detail satisfactory to the Administrative Agent and the Required Lenders: 
 (a) as soon as available, but in any event within 90 days after the end of each fiscal year of the Borrower (commencing with the fiscal year ended May 31, 2009), a consolidated and, to the extent
prepared by the Borrower, consolidating balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year, and the related consolidated and, to the extent prepared by the Borrower, consolidating statements of income or operations,
shareholders’ equity and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and, with respect to the consolidated statements, prepared in accordance
with GAAP, such consolidated statements to be audited and accompanied by (i) a report and opinion of a Registered Public Accounting Firm of nationally recognized standing reasonably acceptable to the Required Lenders, which report and opinion
shall be prepared in accordance with generally accepted auditing standards and applicable Securities Laws and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope
of such audit and (ii) an attestation report of such Registered Public Accounting Firm as to the Borrower’s internal controls pursuant to Section 404 of Sarbanes-Oxley, and, to the extent prepared by the Borrower, such consolidating
statements to be certified by a Responsible Officer of the Borrower to the effect that such statements are fairly stated in all material respects when considered in relation to the consolidated financial statements of the Borrower and its
Subsidiaries; 
 (b) as soon as available, but in any event within 45 days after the end of each of the first
three fiscal quarters of each fiscal year of the Borrower (commencing with the fiscal quarter ended August 31, 2009), a consolidated and, to the extent prepared by the Borrower, consolidating balance sheet of the Borrower and its Subsidiaries
as at the end of such fiscal quarter, and the related consolidated and, to the extent prepared by the Borrower, consolidating statements of income or operations, shareholders’ equity and cash flows for such fiscal quarter and for the portion of
the Borrower’s fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable
detail, such consolidated statements to be certified by a Responsible Officer of the Borrower as fairly presenting the financial condition, results of operations, shareholders’ equity and cash flows of the Borrower and its Subsidiaries in
accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes and, to the extent prepared by the Borrower, such consolidating statements to be certified by a Responsible Officer of the Borrower to the effect
that such statements are fairly stated in all material respects when considered in relation to the consolidated financial statements of the Borrower and its Subsidiaries; 
  

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 (c) during any Trigger Period, as soon as available but in any event within
30 days after the end of each month in such Trigger Period (but within 60 days after the last month in a fiscal year), a consolidated and, to the extent prepared by the Borrower, consolidating statement of income or operations of the Borrower and
its Subsidiaries as at the end of such month and for the portion of the Borrower’s fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding month of the previous fiscal year and the corresponding
portion of the previous fiscal year, all in reasonable detail, such consolidated statement to be certified by a Responsible Officer of the Borrower as fairly presenting in all material respects the results of operations of the Borrower and its
Subsidiaries (except that such statement was not prepared in accordance with GAAP) and, to the extent prepared by the Borrower, such consolidating statement to be certified by a Responsible Officer of the Borrower to the effect that such statement
is fairly stated in all material respects when considered in relation to the consolidated statement of income or operations of the Borrower and its Subsidiaries; and 
 (d) as soon as available, but in any event no more than 45 days after the end of each fiscal year of the Borrower (or during a Trigger Period no more than 15 days after the end of
the fiscal year of the Borrower), forecasts prepared by management of the Borrower, in form satisfactory to the Administrative Agent, of consolidated balance sheets and statements of income or operations and cash flows of the Borrower and its
Subsidiaries on a quarterly basis for the immediately following fiscal year (including the fiscal year in which the Maturity Date occurs). 
 6.02 Certificates; Other Information. Deliver to the Administrative Agent and each Lender, in form and detail satisfactory to the Administrative Agent: 
 (a) concurrently with the delivery of the financial statements referred to in Sections 6.01(a), (b) and
(c) (commencing with the delivery of the financial statements for the fiscal year ended May 31, 2009), a duly completed Compliance Certificate signed by a Responsible Officer of the Borrower, which shall include a calculation of the
Fixed Charge Coverage Ratio whether or not a Trigger Period exists; 
 (b) promptly after any request by the
Administrative Agent, copies of any detailed audit reports, management letters or recommendations submitted to the board of directors (or the audit committee of the board of directors) of the Borrower by independent accountants in connection with
the accounts or books of the Borrower or any Subsidiary, or any audit of any of them; 
 (c) promptly after the
same are available, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders of the Borrower, and copies of all annual, regular, periodic and special reports and registration statements
which the Borrower may file or be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to be delivered to the Administrative Agent pursuant hereto; 
 (d) promptly after the furnishing thereof, copies of any statement or report furnished to any holder of debt securities of
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of any indenture, loan or credit or similar agreement and not otherwise required to be furnished to the Lenders pursuant to Section 6.01 or any other clause of this Section
6.02; 
 (e) promptly, and in any event within five Business Days after receipt thereof by any Loan Party or
any Subsidiary thereof, copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation by such agency regarding financial or
other operational results of any Loan Party or any Subsidiary thereof; 
 (f) within 15 Business Days after the
end of each month (but within 20 Business Days following the end of May 2009), and at such other times as the Administrative Agent may request during the existence of an Event of Default or any failure to satisfy the Minimum Covenant Threshold, a
Borrowing Base Certificate calculated as of the end of the applicable period, in each case duly completed by a Responsible Officer of the Borrower; 
 (g) within five Business Days following the start of each Trigger Period, a calculation of the Fixed Charge Coverage Ratio as of the end of the previous month; 
 (h) within 15 Business Days after the end of each month, an Accounts aging for each Loan Party’s Accounts organized by
Account Debtor and calculated as of the end of the preceding month and, promptly following the Administrative Agent request therefor, reports specifying each Account’s Account Debtor name and address, amount, invoice date and due date, showing
any discount, allowance, credit, authorized return or dispute, and including such proof of delivery, copies of invoices and invoice registers, copies of related documents, repayment histories, status reports and other information as Administrative
Agent may reasonably request; 
 (i) promptly (and in any event within one Business Day) after obtaining
knowledge thereof, notice if Accounts of any Loan Party in an aggregate face amount of $1,000,000 or more cease to be Eligible Accounts; 
 (j) promptly (and in any event within one Business Day) after obtaining knowledge thereof, notice if the aggregate Value of all Inventory (other than replacement parts and manufacturing supplies) returned
by the Loan Parties to suppliers, vendors or other Persons in any month exceeds $1,000,000; and 
 (k) promptly,
such additional information regarding the business, financial or corporate affairs of the Borrower or any Subsidiary, or compliance with the terms of the Loan Documents, as the Administrative Agent or any Lender may from time to time reasonably
request. 
 Documents required to be delivered pursuant to Section 6.01 or Section 6.02
may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet at the website
address listed on Schedule 10.02; or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial,
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website or whether sponsored by the Administrative Agent); provided that: (A) the Borrower shall deliver paper copies of such documents to the Administrative Agent or any Lender that
requests the Borrower to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (B) the Borrower shall notify the Administrative Agent and each Lender (by
telecopier or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents. Except for Compliance Certificates required pursuant to
Section 6.02(a), the Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with
any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents. 
 The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arranger will make available to the Lenders and the L/C Issuer materials and/or information provided by or on behalf of
the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and (b) certain of the Lenders (each, a
“Public Lender”) may have personnel who do not wish to receive material non-public information with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in
investment and other market related activities with respect to such Persons’ securities. The Borrower hereby agrees that (w) all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked
“PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized the
Administrative Agent, the Arranger, the L/C Issuer and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the Borrower or its securities for purposes of United States Federal and state
securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 10.07); (y) all Borrower Materials marked “PUBLIC” are
permitted to be made available through a portion of the Platform designated “Public Investor;” and (z) the Administrative Agent and the Arranger shall be entitled to treat any Borrower Materials that are not marked “PUBLIC”
as being suitable only for posting on a portion of the Platform not designated “Public Investor.” Notwithstanding the foregoing, the Borrower shall be under no obligation to mark any Borrower Materials “PUBLIC.” 
 6.03 Notices. Promptly notify the Administrative Agent and each Lender: 
 (a) of the occurrence of any Default; 
 (b) of any matter that has resulted or could reasonably be expected to result in a Material Adverse Effect, including such matters as (i) breach or non-performance of, or any
default under, a Contractual Obligation of the Borrower or any Subsidiary; (ii) any dispute, litigation, investigation, proceeding or suspension between the Borrower or any Subsidiary and any Governmental Authority; or (iii) the
commencement of, or any material development in, any

  

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litigation or proceeding affecting the Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws; 
 (c) of any litigation, investigation or proceeding affecting any Loan Party in which the damages, penalties, fines or other
sanctions could reasonably be expected to exceed $5,000,000 (to the extent not covered by independent third-party insurance) or in which injunctive relief or similar relief is sought, which relief, if granted, could be reasonably expected to have a
Material Adverse Effect; 
 (d) of the occurrence of any ERISA Event; 
 (e) of any material change in accounting policies or financial reporting practices by the Borrower or any Subsidiary,
including any determination by the Borrower referred to in Section 2.01(b); and 
 (f) of the
occurrence of any Internal Control Event. 
 Each notice pursuant to this Section shall be accompanied by a
statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what action the Borrower has taken and proposes to take with respect thereto. Each notice pursuant to
Section 6.03(a) shall describe with particularity any and all provisions of this Agreement and any other Loan Document that have been breached. 
 6.04 Payment of Obligations. Pay and discharge as the same shall become due and payable, all its material obligations and liabilities, including (a) all material tax
liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are
being maintained by the Borrower or such Subsidiary; (b) all material lawful claims which, if unpaid, would by law become a Lien upon its property, unless the same are being contested in good faith by appropriate proceedings diligently pursued
and adequate reserves in accordance with GAAP are being maintained by the Borrower or such Subsidiary; and (c) all Debt in a principal amount of at least $1,000,000, as and when due and payable, but subject to any subordination provisions
contained in any instrument or agreement pertaining to such Debt. 
 6.05 Preservation of Existence, Etc.
(a) Preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted by Section 7.04; (b) take all reasonable
action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct of business, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and
(c) preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect. 
 6.06 Maintenance of Properties. (a) Maintain, preserve and protect all of its material properties and equipment
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condition, ordinary wear and tear excepted; (b) make all necessary repairs thereto and renewals and replacements thereof except where the failure to do so could not reasonably be expected to
have a Material Adverse Effect; and (c) use the standard of care typical in the industry in the operation and maintenance of its facilities. 
 6.07 Maintenance of Insurance. Maintain with financially sound and reputable insurance companies not Affiliates of the Borrower, insurance with respect to its properties and business against loss
or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts as are customarily carried under similar circumstances by such other Persons. Notwithstanding the foregoing, the
Borrower shall, and shall cause each Subsidiary to, maintain (a) property insurance for the Collateral covering casualty, hazard, theft, malicious mischief, flood and other risks (i) in amounts not less than the Value for the Collateral,
(ii) with deductibles substantially the same as those in effect on the Closing Date or otherwise satisfactory to the Administrative Agent, and (iii) from insurers with a Best Rating of at least A7 (unless otherwise approved by the
Administrative Agent), and (b) business interruption insurance substantially the same as that in effect on the Closing Date or otherwise satisfactory to the Administrative Agent. Such insurance policies shall (1) provide for not less than
30 days prior notice to the Administrative Agent of termination, lapse or cancellation of such insurance, and (2) with respect to insurance covering Collateral, name the Administrative Agent as loss payee. 
 6.08 Compliance with Laws. Comply in all material respects with the requirements of all Laws and all orders, writs,
injunctions and decrees applicable to it or to its business or property, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently
conducted; or (b) the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect. 
 6.09 Books and Records. Maintain proper books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied shall be made of all financial transactions
and matters involving the assets and business of the Borrower or such Subsidiary, as the case may be. 
 6.10
Inspection Rights. (a) Permit representatives and independent contractors of the Administrative Agent or selected by the Required Lenders (accompanied by any Lender which so elects with the consent of the Administrative Agent) to visit
and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public
accountants, at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; provided, however, that when an Event of Default exists the Administrative
Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at any time during normal business hours and without advance notice; and (b) reimburse the Administrative Agent for all
reasonable charges, costs and expenses of the Administrative Agent in connection with (i) examinations of any Loan Party’s books and records or any other financial or Collateral matters as the Administrative Agent deems appropriate, up to
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month period, (ii) appraisals of Inventory up to two times per twelve month period, and (iii) appraisals of Rolling Stock up to four times per twelve month period; provided,
however, that if an examination or appraisal is initiated during the existence of an Event of Default, all reasonable charges, costs and expenses therefor shall be reimbursed by the Borrower without regard to such limits. Subject to and
without limiting the foregoing, the Borrower specifically agrees to pay the Administrative Agent’s then standard charges for each day that an employee of the Administrative Agent or its Affiliates is engaged in any examination activities. The
limitations on expense reimbursements in this Section shall not be construed to limit the Administrative Agent’s right to conduct examinations or to obtain appraisals at any time in its discretion, as provided above, nor to use third parties
for such purposes. 
 6.11 Use of Proceeds. Use the proceeds of the Credit Extensions for working
capital, capital expenditures to the extent permitted hereunder, and for other general corporate purposes not in contravention of any Law or of any Loan Document. 
 6.12 Further Assurances. At any time or from time to time upon reasonable request by the Administrative Agent, the Borrower shall or shall cause any of the Borrower’s
Subsidiaries to execute and deliver such further documents and do such other acts and things as the Administrative Agent may reasonably request in order to effect fully the purposes of this Agreement and the other Loan Documents and to provide for
payment of the Obligations in accordance with the terms of this Agreement and the other Loan Documents. 
 6.13 Additional Subsidiaries. Within ten Business Days after the time that (a) any Person becomes a Domestic Subsidiary as a result of the creation of such Subsidiary or an Acquisition or otherwise, (i) such
Subsidiary, if it is a Material Domestic Subsidiary, shall execute (x) a Guaranty, and (y) a Security Agreement, to secure the Secured Obligations, and (ii) 100% of such Subsidiary’s Equity Interests shall be pledged to secure
the Secured Obligations, and (b) any Domestic Subsidiary that was not a Material Domestic Subsidiary becomes a Material Domestic Subsidiary, such Subsidiary shall execute a Guaranty and a Security Agreement, and in each case with respect to
subsections (a) and (b) above, the Lenders shall receive such board resolutions, officer’s certificates, corporate and other documents and opinions of counsel as the Administrative Agent shall reasonably request in connection with the
actions described in such subsections. Within thirty days after the time that any Person becomes a Foreign Subsidiary owned directly by the Borrower or a Domestic Subsidiary as a result of the creation of such Subsidiary or an Acquisition or
otherwise, (i) 66% of the Subsidiary’s Equity Interests owned directly by the Borrower or any such Domestic Subsidiary shall be pledged to secure the Secured Obligations and (ii) the Lenders shall receive such board resolutions,
officer’s certificates, corporate and other documents and opinions of counsel as the Administrative Agent shall reasonably request in connection with such pledge. 
 6.14 Collateral. To secure full and complete payment and performance of the Secured Obligations, the Borrower shall execute and deliver or cause to be executed and delivered
the documents described below covering the property and collateral described in this Section 6.14 (which, together with any other property and collateral which may now or hereafter secure the Secured Obligations or any part thereof, is
sometimes herein called the “Collateral”): 
  

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 (a) The Borrower will, and will cause each of its Material Domestic
Subsidiaries to, grant to Administrative Agent, for the benefit of the Secured Parties, a first priority security interest (subject only to Permitted Liens) in all of its Accounts, chattel paper, instruments, documents, books, records,
letter-of-credit rights, Inventory, machinery, equipment, Rolling Stock, financial assets, investment property, contract rights, deposit accounts, trademarks, patents, copyrights, other material intellectual property, payment intangibles, other
general intangibles, commercial tort claims, 100% of Equity Interests in its Material Domestic Subsidiaries and 66% of Equity Interests in Foreign Subsidiaries owned directly by the Borrower or any Domestic Subsidiary, and other personal property
subject to the Lien granted pursuant to the Security Agreement, whether now owned or hereafter acquired, and all products and cash and non-cash proceeds thereof, pursuant to the Security Agreement, provided in all cases that, notwithstanding
anything to the contrary herein or in the other Loan Documents, (i) perfection and priority in such collateral shall be limited to the extent that perfection may be obtained (A) by the filing of a centralized UCC-1 financing statement,
(B) by patent, trademark or copyright office filings in the United States of America (provided, that following the Closing Date the Administrative Agent shall only perfect its security interest in after-acquired patents, trademarks and
copyrights to the extent such intellectual property is material to the business of any Loan Party as reasonably determined by such Loan Party), (C) by possession and indorsement of stock certificates, chattel paper and instruments,
(D) automatically pursuant to the UCC, (E) by entering into deposit account or securities account control agreements, (F) by the filing of UCC-1 financing statements on Aggregates constituting as-extracted collateral in the applicable
real property records, (G) by compliance with the procedures set forth in any applicable certificate of title statutes for perfecting a Lien on Rolling Stock, including the notation of the Administrative Agent’s Lien on the certificates of
title therefor, but only to the extent authorized under Section 6.14(c), and (H) in the case of locomotives and railcars, by the filing of a mortgage or security agreement with the Surface Transportation Board of the U.S. Department
of Transportation, and (ii) the security interest shall not cover (A) any fixtures or real property, (B) any assets subject to a Lien permitted by clause (f) of the definition of “Permitted Liens”, or (C) any
assets with respect to which there are effective and enforceable legal restrictions against the granting of a security interest therein. Notwithstanding clause (i)(F) above to the contrary, the Administrative Agent will not perfect its Lien on
Aggregates constituting as-extracted collateral by the filing of financing statements in the applicable real property records until the first to occur of (1) an Event of Default, (2) Availability is less than $60,000,000, or
(3) notice of a transaction described in clause (b) below (in which case the Administrative Agent shall only perfect its Lien on Aggregates constituting as-extracted collateral located at the relevant property). 
 (b) The Borrower shall, and shall cause each Subsidiary to, provide the Administrative Agent with not less than 30 days
prior written notice of its intention to grant a Lien securing Debt (other than the Obligations) on the Mill Creek, Bridgeport, Midlothian, Hunter or Oro Grande plants or any other real estate at which Aggregates with a Value equal to or exceeding
$5,000,000 are located, which notice shall include a legal description of such real estate and the name of the fee owner thereof. Neither the Borrower nor any Subsidiary shall grant a Lien described in the preceding sentence until after such time as
the Administrative Agent has filed a UCC-1 financing statement in the applicable real property records perfecting its Lien in any Aggregates constituting as-extracted collateral that are mined or extracted from such real estate. 
  

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 (c) Within 60 days following the Closing Date, the Borrower shall, and shall
cause each Subsidiary to, (i) use commercially reasonable efforts to provide the Administrative Agent with each certificate of title evidencing Rolling Stock then constituting Collateral and a mortgage or security agreement describing all
locomotives and railcars then constituting Collateral, in form and substance satisfactory to the Administrative Agent, for filing with the Surface Transportation Board of the U.S. Department of Transportation, and (ii) agree with the
Administrative Agent as to which items of such Rolling Stock evidenced by a certificate of title shall have the Administrative Agent’s Lien noted on the certificates of title therefor in order to provide the Administrative Agent with perfected
Liens on such Rolling Stock with significant NOLV while excluding such Rolling Stock with de minimis value. Following the receipt of such mortgage or security agreement, the Administrative Agent shall file the same with the Surface Transportation
Board of the U.S. Department of Transportation, and following receipt of such certificates of title and the completion of such agreement with the Borrower as to which of such certificates shall have the Administrative Agent’s Lien noted
thereon, the Administrative Agent shall arrange for such notations and otherwise perfect such Lien. As the Borrower and its Subsidiaries from time to time acquire additional locomotive and railcars, they shall give prompt notice thereof to the
Administrative Agent and shall provide to the Administrative Agent additional mortgages and security agreements (or amendments or supplements to previous mortgages and security agreements) describing such additional locomotives and railcars and in
form and substance satisfactory to the Administrative Agent for filing with the Surface Transportation Board of the U.S. Department of Transportation. As the Borrower and its Subsidiaries from time to time acquire additional Rolling Stock evidenced
by certificates of title, they shall promptly deliver such certificates of title to the Administrative Agent to be held by it subject to the terms of this subsection (c). Except with respect to after-acquired Rolling Stock, Rolling Stock shall only
be eligible for inclusion in the Rolling Stock Formula Amount on Rolling Stock Determination Dates and only if such Rolling Stock is included in the appraisal delivered in connection therewith. The Borrower may from time to time elect to authorize
the Administrative Agent to note its Lien on one or more certificates of title for specified items of Rolling Stock and to take all other action required to perfect such Lien, but, except as agreed pursuant to clause (ii) of the first sentence
of this subsection (c), the Administrative Agent shall otherwise have no authority to note such Lien on any certificate of title for Rolling Stock or to take other action (beyond the filing of centralized financing statements) to perfect its Lien on
Rolling Stock evidenced by certificates of title, provided that, at any time when an Event of Default has occurred and is continuing or Availability is less than $60,000,000, the Borrower shall, and shall cause each Subsidiary to, comply with the
procedures set forth in any applicable certificate of title statutes for perfecting the Administrative Agent’s Lien on all Rolling Stock designated by the Administrative Agent, including the notation of the Administrative Agent’s Lien on
the certificates of title therefor. 
 (d) The Borrower will, and will cause each Material Domestic Subsidiary
to, execute and deliver and cause to be executed and delivered such further documents and instruments as Administrative Agent, in its sole discretion, deems necessary or desirable to evidence and perfect its Liens in the Collateral. 
 6.15 Administration of Deposit Accounts.  
  

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 (a) Schedule 6.15 sets forth a list of all deposit accounts
maintained by the Loan Parties, including all Dominion Accounts. Within 30 days following the Closing Date, the Borrower shall, and shall cause each other Loan Party to, take all actions necessary to establish the Administrative Agent’s
control, for the purposes of Section 9-1.04 of the UCC, of each such deposit account (other than an account exclusively used for payroll, payroll taxes or employee benefits, or Petty Cash Accounts). The applicable Loan Party(ies) shall be the
sole account holder of each deposit account and shall not allow any other Person (other than the Administrative Agent) to have control over a deposit account or any property deposited therein. The Borrower shall promptly notify the Administrative
Agent of any opening or closing of a deposit account by any Loan Party(ies) and, with the consent of the Administrative Agent, will amend Schedule 6.15 to reflect same. The Borrower shall, and shall cause each other Loan Party to, maintain
Bank of America as the Loan Parties’ principal depository bank. 
 (b) The Borrower shall maintain Dominion
Accounts pursuant to lockbox or other arrangements acceptable to the Administrative Agent. The Borrower shall obtain an agreement (in form and substance satisfactory to the Administrative Agent) from each lockbox servicer and Dominion Account bank
requiring immediate deposit of all remittances received in the lockbox to a Dominion Account and waiving offset rights of such servicer or bank, except for customary administrative charges. The Administrative Agent and the other Secured Parties
assume no responsibility to the Loan Parties for any lockbox arrangement or Dominion Account, including any claim of accord and satisfaction or release with respect to any checks or drafts accepted by any bank. 
 (c) The Borrower shall, and shall cause each other Loan Party to, request in writing and otherwise take all necessary steps
to ensure that all payments on Accounts, chattel paper and instruments or otherwise relating to Collateral are made directly to a Dominion Account (or a lockbox relating to a Dominion Account). The Borrower shall, and shall cause each other Loan
Party to, hold any cash or checks with respect to any Collateral received by such Loan Party in trust for the Administrative Agent and promptly (not later than the next Business Day) mail or deposit the same into a lockbox or Dominion Account,
provided, that miscellaneous payments from local transactions may be deposited into Petty Cash Accounts. 
 (d)
The Borrower shall not permit the aggregate amount on deposit in the Petty Cash Accounts to exceed $500,000 at any time, provided, that during a Trigger Period the Borrower shall not permit the amount on deposit in any individual Petty Cash Account
to exceed $10,000 for five consecutive Business Days and on or before such fifth Business Day shall transfer all amounts on deposit therein exceeding $10,000 to a Dominion Account. 
 (e) At all times during a Trigger Period, the Administrative Agent shall apply the funds deposited into each Dominion
Account as provided in Section 2.07(c). At all times other than during a Trigger Period, the Administrative Agent shall cause all funds deposited into any Dominion Account to be promptly transferred to one or more operating accounts
specified by the Borrower in accordance with this Agreement. 
  

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 ARTICLE VII. 
 NEGATIVE COVENANTS 
 So long as any
Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the Borrower shall not, nor shall it permit any Subsidiary to, directly or
indirectly: 
 7.01 Liens. Create, incur, assume or suffer to exist any Lien upon any of its property,
assets or revenues, whether now owned or hereafter acquired, other than Permitted Liens. 
 7.02
Investments. Make any Investments, except: 
 (a) Cash Equivalents; 
 (b) Investments in one or more Subsidiaries or Persons which become Subsidiaries (including Guaranties of their obligations
to the extent the related Debt is permitted hereunder) that (i) are subject to the provisions hereof, (ii) comply with Section 6.13 and (iii) if an Acquisition, complies with Section 7.02(e); 
 (c) Accounts receivable that arise in the ordinary course of business and are payable on standard terms or which have been
converted to a note receivable or an Equity Interest; 
 (d) Investments in existence on the Closing Date which
are described on Schedule 7.02(d); 
 (e) Acquisitions, provided (i) immediately before and
after giving effect to such proposed Acquisition there shall exist no Default and the Minimum Covenant Threshold shall be satisfied, (ii) such Acquisition shall not be opposed by the board of directors (or other governing body) of the Person
being acquired, (iii) if the aggregate Acquisition Consideration for such proposed Acquisition exceeds $10,000,000, the Administrative Agent shall have received a Compliance Certificate at least 10 Business Days prior to the date of such
Acquisition setting forth the covenant calculations in Section 7.11 both immediately before and after giving effect to the proposed Acquisition, (iv) the assets, property or business acquired shall be in the types of businesses
presently engaged in by the Borrower and its Subsidiaries, and (v) if such Acquisition results in a Subsidiary, the Administrative Agent shall have received any documentation required by Section 6.13, provided, further
that no Accounts, Inventory or Rolling Stock acquired in any Acquisition shall be eligible for inclusion in the Borrowing Base until after the Administrative Agent has concluded a field exam thereon and all eligibility criteria therefor are
otherwise satisfied; and 
 (f) Investments not otherwise permitted pursuant to this Section 7.02,
provided that immediately before and after giving effect to such proposed Investment there shall exist no Default and the Minimum Covenant Threshold shall be satisfied. 
 7.03 Debt. Create, incur, assume or suffer to exist any Debt, except: 
 (a) Debt under the Loan Documents; 
  

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 (b) Guaranties in respect of Debt permitted by this
Section 7.03; 
 (c) Debt outstanding on the date hereof and listed on Schedule 7.03(c) and
any refinancings, refundings, renewals or extensions thereof; provided that (i) the amount of such Debt is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium
or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder and (ii) the terms relating to principal amount,
amortization, maturity, collateral (if any) and subordination (if any), and other material terms taken as a whole, of any such refinancing, refunding, renewing or extending Debt, and of any agreement entered into and of any instrument issued in
connection therewith, are no less favorable in any material respect to the Loan Parties or the Lenders than the terms of any agreement or instrument governing the Debt being refinanced, refunded, renewed or extended and the interest rate applicable
to any such refinancing, refunding, renewing or extending Debt does not exceed the then applicable market interest rate; 
 (d) Debt incurred to purchase assets, provided, that immediately before and after giving effect to such proposed Debt there shall exist no Default and the Minimum Covenant Threshold shall be
satisfied; 
 (e) Debt under the Senior Notes; 
 (f) Debt in respect of intercompany loans between and among any of the Borrower and any Guarantor, each of which such loans
shall be evidenced by a promissory note, provided that such Debt is subordinate to any Obligations under any of the Loan Documents and under the Senior Notes in form and substance satisfactory to the Administrative Agent; 
 (g) obligations (contingent or otherwise) of the Borrower or any Subsidiary existing or arising under any Swap Contract,
provided that such obligations are (or were) entered into in the ordinary course of business for the purpose of (i) directly mitigating risks associated with liabilities, commitments, investments, assets, or property held or reasonably
anticipated by the Borrower and its Subsidiaries, or changes in the value of securities issued by the Borrower and its Subsidiaries, and not for purposes of speculation or taking a “market view”, or (ii) unwinding, in whole or in
part, Swap Contracts entered into for a purpose described in the preceding clause (i); 
 (h) Guaranties in
respect of transactions by the Borrower or any Subsidiaries permitted under this Agreement; 
 (i) consolidated
cash management obligations in the ordinary course of business among the Borrower and the Guarantors; 
 (j)
other unsecured Debt not otherwise permitted pursuant to this Section 7.03, provided, (i) immediately before and after giving effect to such Debt there shall exist no Default, and (ii) such unsecured Debt shall not have
(w) any scheduled amortization or mandatory prepayments or obligations to repurchase prior to six months after the Maturity Date, and (x) any

  

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terms, covenants and provisions that are materially more restrictive on the Borrower and its Subsidiaries than this Agreement or provide materially greater enforcement rights than the enforcement
rights of the Administrative Agent and the Lenders under the Loan Documents; and 
 (k) unsecured or secured
Debt (including Capitalized Lease Obligations) not otherwise permitted pursuant to this Section 7.03, provided (i) immediately before and after giving effect to such proposed Debt there shall exist no Default and the Minimum
Covenant Threshold shall be satisfied, and (ii) the aggregate outstanding principal amount of all such Debt shall not exceed $25,000,000. 
 7.04 Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into another Person except that, so long as no Default exists or would result therefrom any Subsidiary may merge with
(a) the Borrower, provided that the Borrower shall be the continuing or surviving Person, or (b) any one or more other Subsidiaries, provided that when any Guarantor is merging with another Subsidiary, a Guarantor shall be
the continuing or surviving Person. 
 7.05 Dispositions. Make any Disposition or enter into any
agreement to make any Disposition, except: 
 (a) Dispositions of obsolete or worn out property, whether now
owned or hereafter acquired, in the ordinary course of business; 
 (b) Dispositions of Inventory in the
ordinary course of business; 
 (c) the sale, discount, or transfer of delinquent accounts receivable in the
ordinary course of business for purposes of collection; 
 (d) Dispositions of equipment or real property or
other property to the extent (i) such property is exchanged for credit against the purchase price of property used or usable in the conduct of a line of business permitted by Section 7.07 or (ii) the Net Cash Proceeds of such
Disposition are applied within 355 days after such Disposition to the purchase price or improvement of property used or usable in the conduct of a line of business permitted by Section 7.07; 
 (e) Dispositions of property by the Borrower or any Subsidiary to the Borrower or to a Wholly-Owned Subsidiary or a
Guarantor; provided that if the transferor of such property is the Borrower or a Guarantor, the transferee thereof must either be the Borrower or a Guarantor; 
 (f) Dispositions permitted by Section 7.02, 7.03, 7.04 or 7.06; and 
 (g) so long as there exists no Default immediately before and after giving effect to any such transaction, Dispositions not otherwise permitted in clauses (a) through
(f) above, the Net Cash Proceeds of which are applied in accordance with Section 2.05(d); 
 provided,
however, that any Disposition shall be for fair market value. 
  

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 7.06 Restricted Payments. Declare or make, directly or indirectly,
any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that, so long as no Default shall have occurred and be continuing at the time of any action described below or would result therefrom: 
 (a) each Subsidiary may make Restricted Payments to the Borrower, the Guarantors and any other Person that owns an Equity
Interest in such Subsidiary, ratably according to their respective holdings of the type of Equity Interest in respect of which such Restricted Payment is being made; 
 (b) the Borrower and each Subsidiary may declare and make any Dividends or other distributions payable solely in the common stock or other common Equity Interests of such Person; and

 (c) the Borrower may declare and make other Restricted Payments payable in cash, provided that immediately
before and after giving effect to any such Restricted Payment there shall exist no Default and the Minimum Covenant Threshold shall be satisfied. 
 Nothing in this Section 7.06 shall prohibit any transaction among the Borrower and its Subsidiaries that is expressly permitted under Sections 7.02, 7.03 or 7.04.

 7.07 Change in Nature of Business. Engage in any material line of business substantially different
from those lines of business conducted by the Borrower and its Subsidiaries on the date hereof or any business substantially related or incidental thereto. 
 7.08 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate of the Borrower (other than a Guarantor), whether or not in the ordinary course of
business, other than on fair and reasonable terms substantially as favorable to the Borrower or such Subsidiary as would be obtainable by the Borrower or such Subsidiary at the time in a comparable arm’s length transaction with a Person other
than an Affiliate. 
 7.09 Burdensome Agreements. Enter into any Contractual Obligation (other than this
Agreement or any other Loan Document) that (a) limits the ability (i) of any Subsidiary to make Restricted Payments to the Borrower or any Guarantor or to otherwise transfer property to the Borrower or any Guarantor, (ii) of any
Subsidiary to Guarantee the Secured Obligations of the Borrower or (iii) of the Borrower or any Subsidiary to create, incur, assume or suffer to exist Liens in favor of the Administrative Agent on property of such Person; provided,
however, that the restrictions above shall not (A) prohibit any negative pledge or other restriction incurred or provided (x) in favor of any holder of Debt permitted under Section 7.03(d) or Section 7.03(k),
in each case solely to the extent any such negative pledge relates to the property financed by or the subject of such Debt or (y) with respect to the Senior Notes, (B) apply to restrictions and conditions relating to the sale of a
Subsidiary pending such sale, provided such restrictions or conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder and (C) apply to customary provisions in leases and other contracts restricting
the assignment or pledge thereof; or (b) requires the grant of a Lien other than a Permitted Lien to secure an obligation of such Person if a Lien is granted to secure another obligation of such Person. 
  

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 7.10 Use of Proceeds. Use the proceeds of any Credit Extension,
whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or carrying margin
stock or to refund indebtedness originally incurred for such purpose. 
 7.11 Financial Covenant.
During any Trigger Period, permit the Fixed Charge Coverage Ratio to be less than 1.10 to 1.00. 
 7.12
Sale and Leaseback. Enter into any arrangement whereby it sells or transfers any of its assets and thereafter rents or leases such assets, unless before and after giving effect thereto no Event of Default shall exist and Availability shall be
equal to or greater than $60,000,000. 
 7.13 Sale or Discount of Receivables. Sell, with or without
recourse, for discount or otherwise, any notes or accounts receivable, other than (a) bad debts sold in accordance with regular collection procedures and (b) notes payable to the Loan Parties by purchasers of real estate as a result of
real estate Dispositions in compliance with this Agreement, provided, that (i) before and after giving effect to any sale of a real estate note no Event of Default shall exist and Availability shall be equal to or greater than $60,000,000, and
(ii) each sale of a real estate note shall be on a non-recourse basis and otherwise on ordinary market terms. 
 7.14 Debt Modifications. Amend, modify or supplement the Senior Notes or any Debt permitted pursuant to Section 7.03(j), in any way that causes such unsecured Debt to have (a) any scheduled amortization or mandatory
prepayments or obligations to repurchase prior to six months after the Maturity Date or (b) any terms, covenants and provisions that are materially more restrictive on the Borrower and its Subsidiaries than this Agreement or provide materially
greater enforcement rights than the enforcement rights of the Administrative Agent and the Lenders under this Agreement and the other Loan Documents. 
 7.15 Debt Payments. Prepay, pay, redeem, purchase in any manner, or make any payment in respect of, or transfer any property in payment of or as security for the payment of, or establish any
sinking fund, reserve or analogous fund for the redemption, retirement, prepayment or repayment of, any principal of, interest on, or any fees or other amounts related to any Subordinated Debt, the Senior Notes or any Debt permitted pursuant to
Section 7.03(j) (collectively, “Restricted Debt Payments”), except (a) regularly scheduled payments of interest in respect of the Senior Notes and Debt permitted pursuant to Section 7.03(j),
(b) regularly scheduled payment of interest in respect of any such Subordinated Debt, provided that immediately before and after giving effect thereto there is no Default, (c) provided that immediately before and after giving effect
thereto there is no Default and the Minimum Covenant Threshold is satisfied, any other Restricted Debt Payments. 
  

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 ARTICLE VIII. 
 EVENTS OF DEFAULT AND REMEDIES 
 8.01
Events of Default. Any of the following shall constitute an Event of Default: 
 (a) Non-Payment.
The Borrower or any other Loan Party fails to pay when and as required to be paid any Obligation (whether at stated maturity, on demand or otherwise) or any other amount payable hereunder or under any other Loan Document; or 
 (b) Specific Covenants. The Borrower or any Subsidiary, as applicable, fails to perform or observe any term, covenant
or agreement contained in any of (i) Section 6.02(f), 6.03(a), 6.07, 6.10, 6.11, 6.12 or 6.15 or Article VII of this Agreement, (ii) in the Guaranty, or
(iii) Section 4.1(a) through (e), 4.2(a), 4.7, 4.9 or 4.10 of the Security Agreement; or 
 (c) Other Defaults. The Borrower or any Subsidiary, as applicable, fails to perform or observe any other covenant or agreement (not specified in subsection (a) or (b) above) contained in
any Loan Document on its part to be performed or observed and such failure continues for 30 days after the Administrative Agent has given notice thereof (which may be by electronic communication) to the Borrower; or 
 (d) Representations and Warranties. Any representation, warranty, certification or statement of fact made or deemed
made by or on behalf of the Borrower or any Subsidiary herein, in any other Loan Document, or in any document delivered in connection herewith or therewith shall be incorrect or misleading in any material respect when made or deemed made; or

 (e) Cross-Default. (i) The Borrower or any Subsidiary (A) fails to make any payment when due
(whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Debt or Guarantee (other than Debt hereunder and Debt under Swap Contracts) having an aggregate principal amount (including amounts owing to
all creditors under any combined or syndicated credit arrangement) of more than $10,000,000, or (B) fails to observe or perform any other agreement or condition relating to any such Debt or Guarantee or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Debt or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent
on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Debt to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an
offer to repurchase, prepay, defease or redeem such Debt to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded; or (ii) there occurs under any Swap Contract an Early
Termination Date (as defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which the Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any
Termination Event (as so defined) under such Swap Contract as to which the Borrower or any Subsidiary is an Affected Party (as so defined) and, in either event, the Swap Termination Value owed by the Borrower or such

  

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Subsidiary as a result thereof is greater than $10,000,000 and is not paid within five Business Days thereafter; or 
 (f) Insolvency Proceedings, Etc. The Borrower or any Subsidiary institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment
for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for 60 calendar days; or any proceeding under any
Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for 60 calendar days, or an order for relief is entered in any such
proceeding; or 
 (g) Inability to Pay Debts; Attachment. (i) The Borrower or any Subsidiary becomes
unable or admits in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of
any such Person and is not released, vacated or stayed within 30 days after its issue or levy; or 
 (h)
Judgments. There is entered against the Borrower or any Subsidiary (i) a final judgment or order for the payment of money in an aggregate amount exceeding $5,000,000 (to the extent not covered by independent third-party insurance as to
which the insurer does not dispute coverage), or (ii) any one or more non-monetary final judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case,
(A) valid enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise,
is not in effect; or 
 (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or could reasonably be expected to result in liability of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $5,000,000, or (ii) the
Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate
amount in excess of $5,000,000; or 
 (j) Invalidity of Loan Documents. Any Loan Document, at any time
after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party or any other Person contests in
any manner the validity or enforceability of any Loan Document; or any Loan Party denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan Document; 
 (k) Change of Control. There occurs any Change of Control; or 
  

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 (l) Collateral Documents. Any Collateral Document after delivery
thereof pursuant to Section 6.13 or 6.14 shall for any reason (other than pursuant to the terms thereof) cease to create a valid and perfected first priority Lien (subject to Permitted Liens) in any material portion of the
Collateral purported to be covered thereby. 
 8.02 Remedies Upon Event of Default. If any Event of
Default occurs and is continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders, take any or all of the following actions: 
 (a) declare the commitment of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions
to be terminated, whereupon such commitments and obligation shall be terminated; 
 (b) declare the unpaid
principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived by the Borrower; 
 (c) require that the Borrower
Cash Collateralize the L/C Obligations (in an amount equal to the then Outstanding Amount thereof); and 
 (d)
exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents and Applicable Law (including the UCC); 
 provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code of the United States, the obligation of
each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically
become due and payable, and the obligation of the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case without further act of the Administrative Agent or any Lender. 
 8.03 Application of Funds. After the exercise of remedies provided for in Section 8.02 (or after
the Loans have automatically become immediately due and payable and the L/C Obligations have automatically been required to be Cash Collateralized as set forth in the proviso to Section 8.02), any amounts received on account of the
Secured Obligations shall be applied by the Administrative Agent in the following order: 
 First, to payment of that portion of the Secured Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel to the Administrative Agent and amounts payable under
Article III) payable to the Administrative Agent in its capacity as such; 
 Second, to payment of that portion of the Secured Obligations constituting fees, indemnities and other amounts (other than principal, interest, Letter of Credit Fees and Cash Management Obligations) payable to the Lenders and the L/C
Issuer (including

  

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fees, charges and disbursements of counsel to the respective Lenders and the L/C Issuer (including fees and time charges for attorneys who may be employees of any Lender or the L/C Issuer) and
amounts payable under Article III), ratably among them in proportion to the respective amounts described in this clause Second payable to them; 
 Third, to payment of that portion of the Secured Obligations, (other than Obligations with respect to Swap Contracts and Cash Management Obligations), constituting accrued and
unpaid Letter of Credit Fees and interest on the Loans, L/C Borrowings and other Obligations ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause Third payable to them; 
 Fourth, to payment of that portion of the Secured Obligations, constituting obligations in the amount
of the Swap Termination Value with respect to Swap Contracts, unpaid principal of the Loans and L/C Borrowings, ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause Fourth held by them;

 Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters of Credit; 
 Sixth, to payment of remaining portion of the Secured Obligations (including Cash Management Obligations), ratably among the Lenders in proportion to the respective amounts described in this clause
Sixth held by them; and 
 Last, the balance, if any, after all of the Secured
Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by Law. 
 Subject to
Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings under such Letters of Credit as they occur. 
 ARTICLE IX. 
 ADMINISTRATIVE AGENT 
 9.01 Appointment and Authority. 
 (a) Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America to act on its behalf as the
Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof,
together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the L/C Issuer, and neither the Borrower nor any other Loan Party
shall have rights as a third party beneficiary of any of such provisions. 
  

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 (b) The Administrative Agent shall also act as the “collateral
agent” under the Loan Documents, and each of the Lenders and the L/C Issuer hereby irrevocably appoints and authorizes the Administrative Agent to act as the agent of such Lender and the L/C Issuer for purposes of acquiring, holding and
enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the Secured Obligations, together with such powers and discretion as are reasonably incidental thereto. Unless otherwise directed by the Required Lenders,
the Administrative Agent shall have the sole and exclusive authority to take any Enforcement Action or otherwise exercise any rights or remedies with regard to any Collateral under the Loan Documents, Applicable Law or otherwise. In this connection,
the Administrative Agent, as “collateral agent” and any co-agents, sub-agents and attorneys-in-fact appointed by the Administrative Agent pursuant to Section 9.05 for purposes of holding or enforcing any Lien on the Collateral
(or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Administrative Agent, shall be entitled to the benefits of all provisions of this Article IX and
Article X (including Section 10.04(c), as though such co-agents, sub-agents and attorneys-in-fact were the “collateral agent” under the Loan Documents) as if set forth in full herein with respect thereto. Without
limiting the generality of the foregoing, the Administrative Agent is further authorized on behalf of all the Lenders, without the necessity of any notice to or further consent from the Lenders, from time to time to take any action, or permit the
any co-agents, sub-agents and attorneys-in-fact appointed by the Administrative Agent to take any action, with respect to any Collateral or the Loan Documents which may be necessary to perfect and maintain perfected the Liens upon any Collateral
granted pursuant to any Loan Document. 
 9.02 Rights as a Lender. The Person serving as the
Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money
to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and
without any duty to account therefor to the Lenders. 
 9.03 Exculpatory Provisions. The
Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the Administrative Agent: 
 (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is
continuing; 
 (b) shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of
the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel,

  

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may expose the Administrative Agent to liability or that is contrary to any Loan Document or Applicable Law; and 
 (c) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information
relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity. 
 The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the
request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 10.01 and
8.02) or (ii) in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative
Agent by the Borrower, a Lender or the L/C Issuer. The Administrative Agent shall promptly request any report, letter, statement or other information under Section 6.02(b) or (c) which any Lender requests the Administrative
Agent to obtain. 
 The Administrative Agent shall not be responsible for or have any duty to ascertain or
inquire into (A) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (B) the contents of any certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (C) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (D) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (E) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of
items expressly required to be delivered to the Administrative Agent. 
 9.04 Reliance by Administrative
Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message,
Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that
by its terms must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the Administrative Agent may presume that such condition is satisfactory to such Lender or the L/C Issuer unless the Administrative Agent shall have received notice to
the contrary from such Lender or the L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and
other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
  

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 9.05 Delegation of Duties. The Administrative Agent may
perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may
perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent
and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. 
 9.06 Resignation of Administrative Agent. The Administrative Agent may at any time give notice of its
resignation to the Lenders, the L/C Issuer and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office
in the United States, or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on behalf of the Lenders and the L/C Issuer, appoint a successor Administrative Agent meeting the qualifications set forth above; provided that
if the Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (a) the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral held by the Administrative Agent on behalf of the Lenders or the L/C Issuer under any of
the Loan Documents, the retiring Administrative Agent shall continue to hold such collateral until such time as a successor Administrative Agent is appointed) and (b) all payments, communications and determinations provided to be made by, to or
through the Administrative Agent shall instead be made by or to each Lender and the L/C Issuer directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring
Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the
provisions of this Article and Section 10.04 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by
any of them while the retiring Administrative Agent was acting as Administrative Agent. 
 Any resignation by
Bank of America as Administrative Agent pursuant to this Section shall also constitute its resignation as L/C Issuer and Swing Line Lender. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (i) such
successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer and Swing Line Lender, (ii) the retiring L/C Issuer and Swing Line Lender shall be

  

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discharged from all of their respective duties and obligations hereunder or under the other Loan Documents, and (iii) the successor L/C Issuer shall issue letters of credit in substitution
for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to the retiring L/C Issuer to effectively assume the obligations of the retiring L/C Issuer with respect to such Letters of Credit.

 9.07 Non-Reliance on Administrative Agent and Other Lenders. Each Lender and the L/C Issuer
acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender and the L/C Issuer also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents
and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished
hereunder or thereunder. 
 9.08 No Other Duties, Etc. Anything herein to the contrary
notwithstanding, neither the Arranger, Syndication Agent nor any Co-Documentation Agent listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its
capacity, as applicable, as the Administrative Agent, a Lender or the L/C Issuer hereunder. 
 9.09
Administrative Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, the
Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any
demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise 
 (a)
to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or
advisable in order to have the claims of the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and the Administrative Agent
and their respective agents and counsel and all other amounts due the Lenders, the L/C Issuer and the Administrative Agent under Sections 2.03(i) and (j), 2.09 and 10.04) allowed in such judicial proceeding; and

 (b) to collect and receive any monies or other property payable or deliverable on any such claims and to
distribute the same; 
 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in
any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall

  

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consent to the making of such payments directly to the Lenders and the L/C Issuer, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and
advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.09 and 10.04. 
 Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or the L/C Issuer any plan of
reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the L/C Issuer or to authorize the Administrative Agent to vote in respect of the claim of any Lender or the L/C Issuer in any such
proceeding. 
 9.10 Collateral and Guaranty Matters. Each of the Lenders and the L/C Issuer irrevocably
authorize the Administrative Agent, at its option and in its discretion (and, by accepting the benefits of the Security Agreement, each other holder of the Secured Obligations hereby confirms the authority of the Administrative Agent): 

(a) to release any Lien on any property granted to or held by the Administrative Agent under any Loan Document
(i) upon termination of the Aggregate Commitments and payment in full of all Secured Obligations (other than (A) contingent indemnification obligations, (B) Swap Obligations as to which arrangements reasonably satisfactory to the
applicable Lender or Affiliate shall have been made, and (C) Cash Management Obligations) and the expiration or termination of all Letters of Credit (other than Letters of Credit as to which other arrangements satisfactory to the Administrative
Agent and the L/C Issuer shall have been made), (ii) that is sold or Disposed of or to be sold or Disposed of as part of or in connection with any sale or Disposition permitted hereunder (other than a Disposition under
Section 7.05(e)) or under any other Loan Document, or (iii) if approved, authorized or ratified in writing by the Required Lenders; 
 (b) to release any Guarantor from its obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder; and 
 (c) to subordinate any Lien on any property granted to or held by the Administrative Agent under any Loan Document to the
holder of any Lien on such property that is permitted by clause (f) of the definition of “Permitted Liens”. 
 Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or
items of property, or to release any Guarantor from its obligations under the Guaranty pursuant to this Section 9.10. In each case as specified in this Section 9.10, the Administrative Agent will, at the Borrower’s
expense, execute and deliver to the applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted under the Collateral Documents or
to subordinate its interest in such item, or to release such Guarantor from its obligations under the Guaranty, in each case in accordance with the terms of the Loan Documents and this Section 9.10. 
  

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 9.11 Cash Management Obligations and Swap Obligations. Except as
otherwise expressly set forth herein or in any Guaranty or any Collateral Document, no Lender or Affiliate thereof that is owed any Cash Management Obligations or Swap Obligations that obtains the benefits of Section 8.03, any Guaranty
or any Collateral by virtue of the provisions hereof or of any Guaranty or any Collateral Document shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Loan Document or otherwise
in respect of the Collateral (including the release or impairment of any Collateral) other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents. Notwithstanding any other provision of this
Article IX to the contrary, the Administrative Agent shall not be required to verify the payment of, or that other satisfactory arrangements have been made with respect to, Secured Obligations comprising Cash Management Obligations and Swap
Obligations unless the Administrative Agent has received written notice of such Secured Obligations, together with such supporting documentation as the Administrative Agent may request, from the applicable Lender or Affiliate, as the case may be.

 ARTICLE X. 
 MISCELLANEOUS 
 10.01 Amendments, Etc. No amendment
or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower or the
applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however,
that no such amendment, waiver or consent shall: 
 (a) waive any condition set forth in
Section 4.01(a) without the written consent of each Lender; 
 (b) extend or increase the Commitment
of any Lender (or reinstate any Commitment terminated pursuant to Section 8.02) without the written consent of such Lender; 
 (c) postpone any scheduled date fixed by this Agreement or any other Loan Document for any payment (it being understood that the mandatory prepayments under Section 2.05 do not provide for a
scheduled date fixed for payment), of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; 
 (d) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or (subject to clause
(v) of the second proviso to this Section 10.01) any fees or other amounts payable hereunder or under any other Loan Document, without the written consent of each Lender directly affected thereby; provided, however,
that only the consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay interest or Letter of Credit Fees at the Default Rate; 
  

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 (e) change Section 2.13 or Section 8.03 in a manner
that would alter the pro rata sharing of payments required thereby without the written consent of each Lender; 
 (f) change any provision of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or
make any determination or grant any consent hereunder without the written consent of each Lender; or 
 (g)
release all or substantially all of the value of the Guaranty without the written consent of each Lender, unless otherwise permitted by Section 9.10; 
 and, provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the L/C Issuer in addition to the Lenders required above, affect the rights or
duties of the L/C Issuer under this Agreement or any Issuer Document relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Swing Line Lender in addition to
the Lenders required above, affect the rights or duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required
above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; (iv) Section 10.06(h) may not be amended, waived or otherwise modified without the consent of each Granting Lender all
or any part of whose Loans are being funded by an SPC at the time of such amendment, waiver or other modification; and (v) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties
thereto. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or extended
without the consent of such Lender. 
 10.02 Notices; Effectiveness; Electronic Communication.

 (a) Notices Generally. Except in the case of notices and other communications expressly permitted to be
given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered
mail or sent by telecopier as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows: 
 (i) if to the Borrower, the Administrative Agent, the L/C Issuer or the Swing Line Lender, to the address,
telecopier number, electronic mail address or telephone number specified for such Person on Schedule 10.02; and 
 (ii) if to any other Lender, to the address, telecopier number, electronic mail address or telephone number specified in its Administrative Questionnaire. 
 Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when
received; notices sent by telecopier shall be deemed to have

  

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been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the
recipient). Notices delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b). 
 (b) Electronic Communications. Notices and other communications to the Lenders and the L/C Issuer hereunder may be delivered or furnished by electronic communication
(including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or the L/C Issuer pursuant to Article II if such
Lender or the L/C Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications. 
 Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address
shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided
that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and
(ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such
notice or communication is available and identifying the website address therefor. 
 (c) THE
PLATFORM. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM
LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. 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 ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS RELATED PARTIES (COLLECTIVELY, THE “AGENT PARTIES”)
HAVE ANY LIABILITY TO THE BORROWER, ANY LENDER, THE L/C ISSUER OR ANY OTHER PERSON FOR LOSSES, CLAIMS, DAMAGES, LIABILITIES OR EXPENSES OF ANY KIND (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE BORROWER’S OR THE ADMINISTRATIVE
AGENT’S TRANSMISSION OF BORROWER MATERIALS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR EXPENSES ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY A FINAL AND 

  

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NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH AGENT PARTY; PROVIDED, HOWEVER, THAT IN NO EVENT SHALL ANY AGENT PARTY HAVE ANY
LIABILITY TO THE BORROWER, ANY LENDER, THE L/C ISSUER OR ANY OTHER PERSON FOR INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED TO DIRECT OR ACTUAL DAMAGES). 
 (d) Change of Address, Etc. Each of the Borrower, the Administrative Agent, the L/C Issuer and the Swing Line Lender
may change its address (including its e-mail address), telecopier or telephone number for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its address (including its e-mail address),
telecopier or telephone number for notices and other communications hereunder by notice to the Borrower, the Administrative Agent, the L/C Issuer and the Swing Line Lender. In addition, each Lender agrees to notify the Administrative Agent from time
to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, telecopier number and electronic mail address to which notices and other communications may be sent and (ii) accurate
wire instructions for such Lender. Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the
content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable Law, including United States Federal and state securities Laws, to
make reference to Borrower Materials that are not made available through the “Public Side Information” portion of the Platform and that may contain material non-public information with respect to the Borrower or its securities for purposes
of United States Federal or state securities laws. 
 (e) Reliance by Administrative Agent, L/C Issuer and
Lenders. The Administrative Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including telephonic, fax or other web-based or electronic Revolving Loan Notices and Swing Line Loan Notices)
purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms
thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related Parties of each of them from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower. All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such recording. 
 10.03 No Waiver;
Cumulative Remedies. No failure by any Lender, the L/C Issuer or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein
provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. 
  

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 10.04 Expenses; Indemnity; Damage Waiver. 
 (a) Costs and Expenses. The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates (including the reasonable fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the credit facilities provided for herein, the preparation,
negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall
be consummated), (ii) all reasonable out-of-pocket expenses incurred by the L/C Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket expenses incurred by the Administrative Agent, any Lender or the L/C Issuer (including the reasonable fees, charges and disbursements of any counsel for the Administrative Agent, any Lender or the L/C Issuer), and shall pay all
reasonable legal fees and time charges for attorneys who may be employees of the Administrative Agent, any Lender or the L/C Issuer, in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the
other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations
in respect of such Loans or Letters of Credit. 
 (b) Indemnification by the Borrower. The Borrower shall
indemnify the Administrative Agent (and any sub-agent thereof), each Lender and the L/C Issuer, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related expenses (including the reasonable fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all
reasonable fees and time charges and disbursements for attorneys who may be employees of the Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any other Loan Party arising out of, in
connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations
hereunder or thereunder, the consummation of the transactions contemplated hereby or thereby, or, in the case of the Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other
Loan Documents, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with
such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any
other theory, whether brought by a third party or by the Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE
COMPARATIVE, CONTRIBUTORY OR SOLE 

  

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NEGLIGENCE OF THE INDEMNITEE; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related
expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower or
any other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on
such claim as determined by a court of competent jurisdiction. 
 (c) Reimbursement by Lenders. To the
extent that the Borrower for any reason fails to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any Related Party
of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the L/C Issuer or such Related Party, as the case may be, such Lender’s Applicable Percentage (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or L/C Issuer in connection with
such capacity. The obligations of the Lenders under this subsection (c) are subject to the provisions of Section 2.12(d). 
 (d) WAIVER OF CONSEQUENTIAL DAMAGES, ETC. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE BORROWER SHALL NOT ASSERT, AND HEREBY WAIVES, ANY CLAIM AGAINST ANY INDEMNITEE, ON ANY
THEORY OF LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED TO DIRECT OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF, THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT
CONTEMPLATED HEREBY, THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, ANY LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREOF. NO INDEMNITEE REFERRED TO IN SUBSECTION (b) ABOVE SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE BY
UNINTENDED RECIPIENTS OF ANY INFORMATION OR OTHER MATERIALS DISTRIBUTED BY IT THROUGH TELECOMMUNICATIONS, ELECTRONIC OR OTHER INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY OTHER THAN FOR DIRECT OR ACTUAL DAMAGES RESULTING FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE AS DETERMINED BY A FINAL AND NONAPPEALABLE JUDGMENT OF A COURT OF COMPETENT JURISDICTION.

 (e) Payments. All amounts due under this Section shall be payable not later than ten Business Days
after demand therefor. 
  

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 (f) Survival. The agreements in this Section shall survive the
resignation of the Administrative Agent, the L/C Issuer and the Swing Line Lender, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations. 
 10.05 Payments Set Aside. To the extent that any payment by or on behalf of the Borrower is made to the
Administrative Agent, the L/C Issuer or any Lender, or the Administrative Agent, the L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to
be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent, the L/C Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if
such payment had not been made or such setoff had not occurred, and (b) each Lender and the L/C Issuer severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or
repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect. The obligations of the Lenders and the L/C
Issuer under clause (b) of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement. 
 10.06 Successors and Assigns. 
 (a) Successors and
Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Loan Party may
assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except
(i) to an Eligible Assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, (iii) by way of pledge or
assignment of a security interest subject to the restrictions of subsection (f) of this Section, or (iv) to an SPC in accordance with the provisions of subsection (h) of this Section (and any other attempted assignment or transfer by
any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the
extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable right, remedy or claim under or
by reason of this Agreement. 
 (b) Assignments by Lenders. Any Lender may at any time assign to one or
more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans (including for purposes of this subsection (b), participations in L/C Obligations and in Swing
Line Loans) at the time owing to it); provided that 
  

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 (i) except in the case of an assignment of the entire
remaining amount of the assigning Lender’s Commitment and the Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the aggregate amount of the
Commitment (which for this purpose includes Loans outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date
the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000, unless each
of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); provided, however, that concurrent
assignments to members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes
of determining whether such minimum amount has been met; 
 (ii) each partial assignment shall be
made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned, except that this clause (ii) shall not apply to the Swing Line
Lender’s rights and obligations in respect of Swing Line Loans; 
 (iii) any assignment of a
Commitment must be approved by the Borrower (provided no Event of Default has occurred and is continuing, and provided such approval shall not be unreasonably withheld or delayed) Administrative Agent, the L/C Issuer and the Swing Line Lender unless
the Person that is the proposed assignee is itself a Lender (whether or not the proposed assignee would otherwise qualify as an Eligible Assignee); and 
 (iv) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount
of $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment, and the Eligible Assignee, if it shall not be a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire. 
 Subject to acceptance and recording thereof by the
Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released
from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to
be entitled to the benefits of Sections 3.01, 3.04, 3.05, and 10.04 with respect to facts and circumstances occurring prior to the effective date of

  

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such assignment. Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section. 
 (c) Register. The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at
the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the Loans and L/C
Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender at
any reasonable time and from time to time upon reasonable prior notice. 
 (d) Participations. Any Lender
may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Revolving Commitment and/or the Loans (including such Lender’s participations in L/C
Obligations and/or Swing Line Loans) owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Administrative Agent, the Lenders and the L/C Issuer shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this
Agreement. 
 Any agreement or instrument pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 10.01 that affects such Participant. Subject to subsection (e) of this Section, the Borrower
agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this
Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.13 as though it
were a Lender. 
 (e) Limitations upon Participant Rights. A Participant shall not be entitled to receive
any greater payment under Section 3.01 or 3.04 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits

  

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of Section 3.01 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with
Section 3.01(e) as though it were a Lender and performs such agreement. 
 (f) Certain
Pledges. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to
secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 

(g) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Law, including the Federal Electronic Signatures in Global and National
Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. 
 (h) Special Purpose Funding Vehicles. Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle
identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower (an “SPC”) the option to provide all or any part of any Loan that such Granting Lender would otherwise be obligated
to make pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPC to fund any Loan, and (ii) if an SPC elects not to exercise such option or otherwise fails to make all or any part of such
Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof or, if it fails to do so, to make such payment to the Administrative Agent as is required under Section 2.12(b)(ii). Each party hereto hereby
agrees that (A) neither the grant to any SPC nor the exercise by any SPC of such option shall increase the costs or expenses or otherwise increase or change the obligations of the Borrower under this Agreement (including its obligations under
Section 3.04), (B) no SPC shall be liable for any indemnity or similar payment obligation under this Agreement for which a Lender would be liable, and (C) the Granting Lender shall for all purposes, including the approval of
any amendment, waiver or other modification of any provision of any Loan Document, remain the lender of record hereunder. The making of a Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if,
such Loan were made by such Granting Lender. In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in
full of all outstanding commercial paper or other senior debt of any SPC, it will not institute against, or join any other Person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding
under the laws of the United States or any State thereof. Notwithstanding anything to the contrary contained herein, any SPC may (1) with notice to, but without prior consent of the Borrower and the Administrative Agent and with the payment of
a processing fee in the amount of $3,500 (which processing fee may be waived by

  

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the Administrative Agent in its sole discretion), assign all or any portion of its right to receive payment with respect to any Loan to the Granting Lender and (2) disclose on a confidential
basis any non-public information relating to its funding of Loans to any rating agency, commercial paper dealer or provider of any surety or Guarantee or credit or liquidity enhancement to such SPC. 
 (i) Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding anything to the contrary
contained herein, if at any time Bank of America assigns all of its Commitment and Loans pursuant to subsection (b) above, Bank of America may, (i) upon 30 days’ notice to the Borrower and the Lenders, resign as L/C Issuer and/or
(ii) upon 30 days’ notice to the Borrower, resign as Swing Line Lender. In the event of any such resignation as L/C Issuer or Swing Line Lender, the Borrower shall be entitled to appoint from among the Lenders a successor L/C Issuer or
Swing Line Lender hereunder; provided, however, that no failure by the Borrower to appoint any such successor shall affect the resignation of Bank of America as L/C Issuer or Swing Line Lender, as the case may be. If Bank of America
resigns as L/C Issuer, it shall retain all the rights, powers, privileges and duties of the L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations with
respect thereto (including the right to require the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)). If Bank of America resigns as Swing Line Lender, it shall retain all
the rights of the Swing Line Lender provided for hereunder with respect to Swing Line Loans made by it and outstanding as of the effective date of such resignation, including the right to require the Lenders to make Base Rate Loans or fund risk
participations in outstanding Swing Line Loans pursuant to Section 2.04(c). Upon the appointment of a successor L/C Issuer and/or Swing Line Lender, (A) such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender, as the case may be, and (B) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such
succession or make other arrangements satisfactory to Bank of America to effectively assume the obligations of Bank of America with respect to such Letters of Credit. 
 10.07 Treatment of Certain Information; Confidentiality. Each of the Administrative Agent, the Lenders and the L/C Issuer agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors and representatives (it being understood
that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any governmental or regulatory authority
purporting to have jurisdiction over it or its Affiliates (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by Applicable Laws or regulations or by any subpoena or
similar legal process, (d) to any other party hereto, (e) as reasonably required in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other
Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of
or Participant in, any of its

  

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rights or obligations under this Agreement or any Eligible Assignee invited to be a Lender pursuant to Section 2.14(c) or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the consent of the Borrower or (h) to the extent such Information (x) becomes publicly available other than as a result of a breach
of this Section or (y) becomes available to the Administrative Agent, any Lender, the L/C Issuer or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower. 
 For purposes of this Section, “Information” means all information received from the Borrower or any
Subsidiary relating to the Borrower or any Subsidiary or any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender or the L/C Issuer on a nonconfidential basis prior to disclosure
by the Borrower or any Subsidiary, provided that, in the case of information received from the Borrower or any Subsidiary after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person
required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information. 
 Each of the Administrative
Agent, the Lenders and the L/C Issuer acknowledges that (A) the Information may include material non-public information concerning the Borrower or a Subsidiary, as the case may be, (B) it has developed compliance procedures regarding the
use of material non-public information and (C) it will handle such material non-public information in accordance with applicable Law, including Federal and state securities Laws. 
 10.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender, the L/C
Issuer and each of their respective Affiliates is hereby authorized at any time and from time to time, after obtaining the prior written consent of the Administrative Agent, to the fullest extent permitted by Applicable Law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the L/C Issuer or any such Affiliate to or for the
credit or the account of the Borrower or any other Loan Party against any and all of the obligations of the Borrower or such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such Lender or the L/C Issuer,
irrespective of whether or not such Lender or the L/C Issuer shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower or such Loan Party may be owed to a branch or office of such Lender
or the L/C Issuer different from the branch or office holding such deposit or obligated on such indebtedness. The rights of each Lender, the L/C Issuer and their respective Affiliates under this Section are in addition to other rights and remedies
(including other rights of setoff) that such Lender, the L/C Issuer or their respective Affiliates may have. Each Lender and the L/C Issuer agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application,
provided that the failure to give such notice shall not affect the validity of such setoff and application. 
 10.09 Interest Rate Limitation. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not

  

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exceed the Highest Lawful Rate. If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Highest Lawful Rate, the excess interest shall be applied to the
principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Highest Lawful Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder. 
 10.10 Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of the Borrower and the Required Lenders. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement. 
 10.11 Survival of
Representations and Warranties. All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and
delivery hereof and thereof. Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and
notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other Obligations hereunder shall
remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding. 
 10.12 Severability.
If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall
not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that
of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 10.13 Replacement of Lenders. If (i) any Lender requests compensation under Section 3.04,
(ii) the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, (iii) any Lender is a Defaulting Lender, (iv) any Lender fails
to give its consent to any amendment, waiver or

  

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action for which consent of all Lenders was required and Required Lenders have consented, or (v) if any other circumstance exists hereunder that gives the Borrower the right to replace a
Lender as a party hereto, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, or in the case of clause (iii) or (iv) above the Administrative Agent may upon notice to such Lender
and the Borrower, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 10.06), all of its interests, rights and obligations under
this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that: 
 (a) the Borrower shall have paid to the Administrative Agent the assignment fee specified in Section 10.06(b)
(unless the Administrative Agent has requested such assignment under clauses (iii) or (iv) above); 
 (b) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan
Documents (including any amounts under Section 3.05) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts); 
 (c) in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments
required to be made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter; and 
 (d) such assignment does not conflict with applicable Laws. 
 A
Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower or the Administrative Agent to require such assignment and
delegation cease to apply. 
 10.14 Governing Law; Jurisdiction; Etc. 
 (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF TEXAS. 
 (b) SUBMISSION TO JURISDICTION. THE BORROWER AND EACH OTHER LOAN PARTY
IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF TEXAS SITTING IN DALLAS COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE NORTHERN DISTRICT OF TEXAS, AND ANY
APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH 

  

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ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH TEXAS STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT
A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY
RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS
OF ANY JURISDICTION. 
 (c) WAIVER OF VENUE. THE BORROWER AND EACH OTHER LOAN PARTY
IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH
ACTION OR PROCEEDING IN ANY SUCH COURT. 
 (d) SERVICE OF PROCESS. EACH PARTY HERETO
IRREVOCABLY CONSENTS, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY APPLICABLE LAW. 
 10.15 Waiver of Jury Trial. EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (a) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (b) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
  

 110 

 10.16 No Advisory or Fiduciary Responsibility. In connection with all
aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower and each other Loan Party acknowledges and agrees that: (a)(i) the
arranging and other services regarding this Agreement provided by the Administrative Agent and the Arranger are arm’s-length commercial transactions between the Borrower, each other Loan Party and their respective Affiliates, on the one hand,
and the Administrative Agent and the Arranger, on the other hand, (ii) each of the Borrower and the other Loan Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and
(iii) the Borrower and each other Loan Party is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (b)(i) the Administrative Agent and the
Arranger each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower, any other Loan Party or
any of their respective Affiliates, or any other Person and (ii) neither the Administrative Agent nor the Arranger has any obligation to the Borrower, any other Loan Party or any of their respective Affiliates with respect to the transactions
contemplated hereby except those obligations set forth herein and in the other Loan Documents; and (c) the Administrative Agent and the Arranger and their respective Affiliates may be engaged in a broad range of transactions that involve
interests that differ from those of the Borrower, the other Loan Parties and their respective Affiliates, and neither the Administrative Agent nor the Arranger has any obligation to disclose any of such interests to the Borrower, any other Loan
Party or any of their respective Affiliates. To the fullest extent permitted by law, each of the Borrower and the other Loan Parties hereby waives and releases any claims that it may have against the Administrative Agent and the Arranger with
respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby. 
 10.17 USA PATRIOT Act Notice. 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. 
 10.18 2005 Indenture. The Borrower hereby informs the Lenders that the Debt evidenced by the Loans and L/C
Obligations has been incurred pursuant to Section 4.09(b)(i) of the 2005 Indenture. As a result thereof, the Borrower is permitted to secure such Debt pursuant to clause (i) of the definition of “Permitted Liens” as set forth in
Section 1.01 of the 2005 Indenture, subject to the terms of Section 4.09(b)(i) of the 2005 Indenture. 
 10.19 Ratification of Loan Documents. The Borrower hereby ratifies and affirms its obligations under the Loan Documents (as amended, restated or otherwise modified on the Closing Date), each of which (as amended, restated or
otherwise modified on the Closing Date) shall continue in full force and effect. 
  

 111 

 10.20 ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES. 
 REMAINDER OF PAGE LEFT INTENTIONALLY BLANK 
  

 112 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written. 
  

			
	TEXAS INDUSTRIES, INC.
		
	 By:
	 	 /s/ Sharon Ellis

	 Name:
	 	 Sharon Ellis

	 Title:
	 	 Treasurer

  

 S-1 

			
	 BANK OF AMERICA, N.A., as Administrative Agent

		
	 By:
	 	 /s/ Joy L. Bartholomew

	 Name:
	 	 Joy L. Bartholomew

	 Title:
	 	 Senior Vice President

  

 S-2 

			
	 BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender

		
	 By:
	 	 /s/ Joy L. Bartholomew

	 Name:
	 	 Joy L. Bartholomew

	 Title:
	 	 Senior Vice President

  

 S-3 

			
	 UBS SECURITIES LLC, as Syndication Agent

		
	 By:
	 	 /s/ Irja R. Otsa

	 Name:
	 	 Irja R. Otsa

	 Title:
	 	 Associate Director

		
	 By:
	 	 /s/ Marie Haddad

	 Name:
	 	 Marie Haddad

	 Title:
	 	 Associate Director

  

 S-4 

			
	 UBS LOAN FINANCE, as a Lender

		
	 By:
	 	 /s/ Irja R. Otsa

	 Name:
	 	 Irja R. Otsa

	 Title:
	 	 Associate Director

		
	 By:
	 	 /s/ Mary E. Evans

	 Name:
	 	 Mary E. Evans

	 Title:
	 	 Associate Director

  

 S-5 

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION, as Co-Documentation Agent and as a Lender

		
	 By:
	 	 /s/ Greg Campbell

	 Name:
	 	 Greg Campbell

	 Title:
	 	 Vice President

  

 S-6 

			
	 COMERICA BANK, as Co-Documentation Agent and as a Lender

		
	 By:
	 	 /s/ Catherine Young

	 Name:
	 	 Catherine Meister Young

	 Title:
	 	 Vice President

  

 S-7 

			
	 SUNTRUST BANK, as a Lender

		
	 By:
	 	 /s/ J Haynes Gentry III

	 Name:
	 	 J. Haynes Gentry, III

	 Title:
	 	 Vice President

  

 S-8 

			
	 U.S. BANK NATIONAL ASSOCIATION, as a Lender

		
	 By:
	 	 /s/ Matthew Kasper

	 Name:
	 	 Matthew Kasper

	 Title:
	 	 Assistant Vice-President

  

 S-9 

			
	 CAPITAL ONE, N.A., as a Lender

		
	 By:
	 	 /s/ Mary Jo Hoch

	 Name:
	 	 Mary Jo Hoch

	 Title:
	 	 Senior Vice President

  

 S-10 

			
	GENERAL ELECTRIC CAPITAL CORPORATION, as a Lender
		
	 By:
	 	 /s/ Maura Fitzgerald

	 Name:
	 	 Maura Fitzgerald

	 Title:
	 	 Vice President

  

 S-11 

 CONSENT OF GUARANTORS 
 Each Guarantor hereby consents and agrees to the amendment and restatement of the Existing Credit Agreement in the form of this Agreement and further agrees that (i) this
Agreement (as amended, restated, supplemented or otherwise modified from time to time) shall constitute the “Credit Agreement” referred to in the Guaranty, and (ii) the Guaranty shall remain in full force and effect and shall continue
to be the legal, valid and binding obligation of such Guarantor enforceable against it in accordance with the terms thereof. 
  

			
	BROOKHOLLOW CORPORATION
	BROOK HOLLOW PROPERTIES, INC.
	BROOKHOLLOW OF ALEXANDRIA, INC.
	BROOKHOLLOW OF VIRGINIA, INC.
	SOUTHWESTERN FINANCIAL CORPORATION
	CREOLE CORPORATION
	PARTIN LIMESTONE PRODUCTS, INC.
	RIVERSIDE CEMENT HOLDINGS COMPANY
	TXI AVIATION, INC.
	TXI CEMENT COMPANY
	TXI RIVERSIDE INC.
	TXI TRANSPORTATION COMPANY
	TXI CALIFORNIA INC.
	PACIFIC CUSTOM MATERIALS, INC.
	TXI POWER COMPANY
	TEXAS INDUSTRIES HOLDINGS, LLC
	TEXAS INDUSTRIES TRUST
	TXI LLC
	TXI OPERATING TRUST
		
	 By:
	 	 /s/ Sharon Ellis

	 Name:
	 	 Sharon Ellis

	 Title:
	 	 Treasurer

	
	 RIVERSIDE CEMENT COMPANY

		
	 By:
	 	 /s/ Sharon Ellis

	 Name:
	 	 Sharon Ellis

	 Title:
	 	 Treasurer

  

 S-1 

			
	 TXI OPERATIONS, LP

		
	 By:
	 	 TXI Operating Trust, its general partner

		
	 By:
	 	 /s/ Sharon Ellis

	 Name:
	 	 Sharon Ellis

	 Title:
	 	 Treasurer

  

 S-2 

 SCHEDULE 1.01 
 EXISTING LETTERS OF CREDIT 
  

							
	 1.
	  	 Applicant:
	  	 Texas Industries, Inc.
	  	
		  	 Issuer:
	  	 Bank of America, N.A.
	  	
		  	 Original Issuance Date:
	  	 12/13/99
	  	
		  	 Beneficiary:
	  	 Reliance Insurance Co.
	  	
		  	 Renewal/Expiry Date:
	  	 4/01/10
	  	
		  	 LC Number:
	  	 1148
	  	
		  	 Current Aggregate Amount:
	  	 $1,052,534.00
	  	
				
	 2.
	  	 Applicant:
	  	 Texas Industries, Inc.
	  	
		  	 Issuer:
	  	 Bank of America, N.A.
	  	
		  	 Original Issuance Date:
	  	 12/13/99
	  	
		  	 Beneficiary:
	  	 National Union Fire Insurance Co.
	  	
		  	 Renewal/Expiry Date:
	  	 4/01/10
	  	
		  	 LC Number:
	  	 133443
	  	
		  	 Current Aggregate Amount:
	  	 $870,196.00
	  	
				
	 3.
	  	 Applicant:
	  	 Texas Industries, Inc.
	  	
		  	 Issuer:
	  	 Bank of America, N.A.
	  	
		  	 Original Issuance Date:
	  	 7/06/00
	  	
		  	 Beneficiary:
	  	 Old Republic Insurance Co.
	  	
		  	 Renewal/Expiry Date:
	  	 4/01/10
	  	
		  	 LC Number:
	  	 3027320
	  	
		  	 Current Aggregate Amount:
	  	 $19,548,324.00
	  	
				
	 4.
	  	 Applicant:
	  	 Texas Industries, Inc.
	  	
		  	 Issuer:
	  	 Bank of America, N.A.
	  	
		  	 Original Issuance Date:
	  	 2/05/09
	  	
		  	 Beneficiary:
	  	 El Paso Industrial Energy Co. L.L.C.
	  	
		  	 Renewal/Expiry Date:
	  	 2/28/10
	  	
		  	 LC Number:
	  	 3098578
	  	
		  	 Current Aggregate Amount:
	  	 $921,000.00
	  	
				
	 5.
	  	 Applicant:
	  	 Texas Industries, Inc.
	  	
		  	 Issuer:
	  	 Bank of America, N.A.
	  	
		  	 Original Issuance Date:
	  	 4/22/09
	  	
		  	 Beneficiary:
	  	 Discover Property and Casualty Insurance Company

		  	 Renewal/Expiry Date:
	  	 4/15/10
	  	
		  	 LC Number:
	  	 3099336
	  	
		  	 Current Aggregate Amount:
	  	 $6,000,000.00
	  	

  

 Schedule 1.01 

 SCHEDULE 2.01 
 COMMITMENTS 
 AND APPLICABLE PERCENTAGES 
  

							
	 Lender
	  	Commitment	  	Applicable Percentage	 
			
	 Bank of America, N.A.
	  	$	46,000,000	  	23.000000000	% 
	 Wells Fargo Bank, National Association
	  	$	34,000,000	  	17.000000000	% 
	 UBS Loan Finance
	  	$	24,000,000	  	12.000000000	% 
	 SunTrust Bank
	  	$	24,000,000	  	12.000000000	% 
	 Comerica Bank
	  	$	24,000,000	  	12.000000000	% 
	 U.S. Bank National Association
	  	$	16,000,000	  	8.000000000	% 
	 Capital One, N.A.
	  	$	16,000,000	  	8.000000000	% 
	 General Electric Capital Corporation
	  	$	16,000,000	  	8.000000000	% 
			
	 Total
	  	$	200,000,000	  	100.000000000	% 

  

 Schedule 2.01 

 SCHEDULE 5.13 
 SUBSIDIARIES, 
 OTHER EQUITY INVESTMENTS 
 AND EQUITY INTERESTS IN THE BORROWER 
 PART (a) SUBSIDIARIES 
  

			
	 	  	 State of
 Incorporation
 or Organization

		
	 Brookhollow Corporation
	  	Delaware
	 Brookhollow of Alexandria, Inc.
	  	Louisiana
	 Brook Hollow Properties, Inc.
	  	Texas
	 Brookhollow of Virginia, Inc.
	  	Virginia
	 Creole Corporation
	  	Delaware
	 Pacific Custom Materials, Inc.
	  	California
	 Riverside Cement Company (1)
	  	California
	 Partin Limestone Products, Inc.
	  	California
	 Riverside Cement Holdings Company
	  	Delaware
	 Texas Industries Holdings, LLC (formerly Texas Industries Holdings, Inc.)
	  	Delaware
	 Texas Industries Trust
	  	Delaware
	 TXI Aviation, Inc.
	  	Texas
	 TXI California Inc.
	  	Delaware
	 TXI Cement Company
	  	Delaware
	 TXI LLC (formerly TXI Corp. and formerly TXI Texas, Inc.)
	  	Delaware
	 TXI Operating Trust
	  	Delaware
	 TXI Operations, LP (2)
	  	Delaware
	 Southwestern Financial Corporation
	  	Texas
	 TXI Power Company
	  	Texas
	 TXI Riverside Inc.
	  	Delaware
	 TXI Transportation Company
	  	Texas

 Indirect subsidiaries of the Borrower are indented and listed following their direct
parent company, with subsidiaries with multiple direct owners as follows: 
 (1) California general partnership: TXI California
Inc. and TXI Riverside Inc., general partners 
 (2) Delaware limited partnership: TXI Operating Trust, general partner; Texas
Industries Trust, limited partner 
  

 Schedule 5.13 

 PART (b) OTHER EQUITY INVESTMENTS 
 Minority Interests 
 None. 
  

 Schedule 5.13 

 SCHEDULE 6.15 
 DEPOSIT ACCOUNTS 
  

							
	 Name
	 	 Financial Institution
	 	 Account Number
	 	 Account Type

				
	 Texas Industries, Inc.
	 	         Bank of America
	 		 	         Deposit

	 TXI Operations, LP
	 	         Bank of America
	 		 	 Control Disbursement

	 TXI Operations, LP
	 	         Bank of America
	 		 	         Deposit

	 TXI Operations, LP
	 	         Bank of America
	 		 	         Deposit

	 TXI Operations, LP
	 	         Bank of America
	 		 	         Deposit/Payroll

	 TXI Operations, LP
	 	         Bank of America
	 		 	         Deposit/FSA

	 Riverside Cement
	 	         Bank of America
	 		 	         Deposit

				
	 TXI Operations, LP
	 	         Iberia Bank
	 		 	         Deposit

				
	 TXI Operations, LP
	 	         Bank of Jena
	 		 	         Deposit

			
	 TXI Operations, LP
	 	         First National Bank of Crossett
	 	         Deposit

				
	 TXI Operations, LP
	 	         Jackson Parish Bank
	 		 	         Deposit

			
	 TXI Operations, LP
	 	 American National Bank of Texas
	 	         Deposit

				
	 TXI Operations, LP
	 	         First State Bank & Trust
	 		 	         Deposit

				
	 TXI Operations, LP
	 	         City National Bank
	 		 	         Deposit

				
	 TXI Operations, LP
	 	         Capital One
	 		 	         Deposit

				
	 TXI Operations, LP
	 	         First Financial Bank
	 		 	         Deposit

				
	 TXI Operations, LP
	 	         City Savings Bank
	 		 	         Deposit

			
	 TXI Operations, LP
	 	     Citizens National Bank of Texas
	 	         Deposit

			
	 TXI Operations, LP
	 	 First National Bank of Bells Savoy
	 	         Deposit

				
	 TXI Operations, LP
	 	         Landmark Bank
	 		 	         Deposit

			
	 TXI Operations, LP
	 	         Weatherford National Bank
	 	         Deposit

			
	 TXI Operations, LP
	 	         Citizens National Bank of Texas
	 	         Deposit

  

 Schedule 6.15 

 SCHEDULE 7.01 
 EXISTING LIENS 
 Referred to in Subparagraph (h) of the definition of “Permitted Liens” 
  

	1.	 The Borrower and its Subsidiaries are parties to various personal property leases of the kinds described in clause (i) of the definition of
“Permitted Liens” and the lessor under these leases have made various precautionary UCC filings. In certain instances, the Borrower has subleased this personal property to TXI Operations, LP, and the Borrower may have granted to the
original lessor a Lien in the sublease. 

  

 Schedule 7.01 

 SCHEDULE 7.02(d) 
 EXISTING INVESTMENTS 
 Obligations with respect to letters of credit listed on Schedule 1.01 and guarantees listed on Schedule 7.03(c), to the extent constituting Investments 
  

 Schedule 7.02(d) 

 SCHEDULE 7.03(c) 
 EXISTING DEBT 
 Certain future contractual payments due to retirees or their beneficiaries under the Borrower’s Financial Security Plan, which may constitute “Debt” as defined. The estimated amount of these obligations as at May 31,
2008, was disclosed in the note entitled “Retirement Plans” to the Borrower’s May 31, 2008, audited annual consolidated financial statements. 
 $9.267 million capital lease obligation to Southern California Edison Company. 
 $322,000 of debt relating to death benefits payable to retired employees. 
  

 Schedule 7.03(c) 

 SCHEDULE 10.02 
 ADMINISTRATIVE AGENT’S OFFICE; 
 CERTAIN
ADDRESSES FOR NOTICES 
 THE BORROWER: 
  

					
	Texas Industries, Inc.
	 1341 West Mockingbird Lane, 7th Floor
	  	
	 Dallas, Texas 75247
	 		  	

					
	 Attention:
	 	 Sharon Ellis, Treasurer

	 Telephone:
	 	 (972) 647-6780

	 Telecopier:
	 	 (972) 674-3964

	 Electronic Mail:
	 	 sellis@txi.com

	 Website Address:
	 	 www.txi.com

			
	 U.S. Taxpayer Identification Number:
	 	 75-0832210

 ADMINISTRATIVE AGENT OR SWING LINE LENDER: 
  

			
	 Bank of America, N.A.

	 901 Main Street, Floor 11

	 TX1-492-11-23
	  	
	 Dallas, Texas 75202

			
		
	 Attention:
	 	 Joy L Bartholomew

	 Telephone:
	 	 214-209-4736

	 Telecopier:
	 	 214-290-4766

	 Electronic Mail:
	 	 joy.bartholomew@bankofamerica.com

	
	 Account
 Instructions:

	 Bank:
	 	 Bank of America, N.A.

		 	 New York

		 	 For the account of Bank of America – Southwest Collection

	 Account No.:
	 	 936-933-7800

	 Ref:
	 	 Texas Industries, Inc.

	 ABA#
	 	 026009593

  

 Schedule 10.02 

 L/C ISSUER: 
  

			
	Standby Letters of Credit
	 Bank of America, N.A.
	  	
	 Business Capital
	  	
	 Treasury & International Services Group
	  	
	 450 B Street, Suite 430
	  	
	 San Diego, CA 92101
	  	

			
		
	 Attention:
	 	 Zoila Torres

	 Telephone:
	 	 619-515-5796

	 Telecopier:
	 	 619-515-7022

	 Electronic Mail:
	 	 zoila.torres@bankofamerica.com

  

			
	Commercial Letters of Credit
	 Bank of America, N.A.
	  	
	 Business Capital
	  	
	 Treasury & International Services Group
	  	
	 450 B Street, Suite 430
	  	
	 San Diego, CA 92101
	  	

			
		
	 Attention:
	 	 Josephine Aledia

	 Telephone:
	 	 619-515-5797

	 Telecopier:
	 	 619-515-7022

	 Electronic Mail:
	 	 josephine.aledia@bankofamerica.com

  

 Schedule 10.02 

 EXHIBIT A 
 ASSIGNMENT AND ASSUMPTION 
 This
Assignment and Assumption (this “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of
Assignee] (the “Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

 For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the
Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below
(i) all of the Assignor’s rights and obligations as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all
of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including, without limitation, the Letters of Credit and the Swing Line 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) 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 pursuant to clauses (i) and
(ii) above being referred to herein collectively as, the “Assigned Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without
representation or warranty by the Assignor. 
  

					
	 1.
	  	 Assignor:
	  	  

			
	 2.
	  	 Assignee:
	  	                                        
                                  [and is an Affiliate/Approved Fund of
[identify Lender]1]

			
	 3.
	  	 Borrower(s):
	  	 Texas Industries, Inc.

			
	 4.
	  	 Administrative Agent:
	  	 Bank of America, N.A., as the administrative agent under the Credit Agreement

  

	1	 Select as applicable. 

  

 A-1 
 Form of Assignment and Assumption 

					
	 5.
	  	 Credit Agreement:
	  	 Second Amended and Restated Credit Agreement, dated as of June 19, 2009, among Texas Industries, Inc., the Lenders from time to time party thereto, and
Bank of America, N.A., as Administrative Agent, L/C Issuer, and Swing Line Lender

	 6.
	  	 Assigned Interest:
	  	

  

										
	Aggregate Amount
of
Commitment
for all Lenders*	  	Amount of
Commitment/
Assigned*	  	Percentage
Assigned of
Commitment2	 	 	CUSIP
Number
	$	                    	  	$	                    	  	                    	% 	 	
	$	                    	  	$	                    	  	                    	% 	 	
	$	                    	  	$	                    	  	                    	% 	 	

  

					
			
	 [7.
	  	 Trade Date:
	  	                                        
                                         
        ]3

 Effective Date:
            , 20     [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 
 The terms set forth in this Assignment and Assumption are hereby agreed to: 
  

			
	ASSIGNOR
	
	 [NAME OF ASSIGNOR]

		
	 By:
	 	  

		 	 Title:

	
	ASSIGNEE
	
	 [NAME OF ASSIGNEE]

		
	 By:
	 	  

		 	 Title:

  

	2	 Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. Set
forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. 

	3	 To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.

  

 A-2 
 Form of Assignment and Assumption 

			
	 [Consented to and]4 Accepted:

	
	 BANK OF AMERICA, N.A.,
 as Administrative Agent

		
	 By:
	 	  

		 	 Title:

	
	 [Consented to:]5

		
	 By:
	 	  

		 	 Title:

  

	4	 To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement. 

	5	 To be added only if the consent of the Borrower and/or other parties (e.g. Swing Line Lender, L/C Issuer) is required by the terms of the Credit
Agreement. 

  

 A-3 
 Form of Assignment and Assumption 

 ANNEX 1 TO ASSIGNMENT AND ASSUMPTION 
 STANDARD TERMS AND CONDITIONS FOR 
 ASSIGNMENT AND ASSUMPTION 
 1. Representations and Warranties.

 1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver
this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement
or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its
Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations
under any Loan Document. 
 1.2 Assignee. The Assignee (a) represents and warrants that (i) it
has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all
requirements of an Eligible Assignee under the Credit Agreement (subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 6.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase
the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached hereto is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any
other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. 
 2. Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignor for amounts which have accrued to but excluding the

  

 A-4 
 Form of Assignment and Assumption 

 
Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date. 
 3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and
Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of Texas. 
  

 A-5 
 Form of Assignment and Assumption 

 EXHIBIT B 
 FORM OF COMPLIANCE CERTIFICATE 
 Financial Statement
Date:                     , 
 To: Bank of
America, N.A., as Administrative Agent 
 Ladies and Gentlemen: 
 Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of June 19, 2009 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Texas Industries, Inc., a Delaware corporation (the “Borrower”), the Lenders from time to time party
thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender. 
 The
undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                                         of the
Borrower, and that, as such, he/she is authorized to execute and deliver this Certificate to the Administrative Agent on the behalf of the Borrower, and that: 
 [Use following paragraph 1 for fiscal year-end financial statements] 
 1. Attached hereto as Schedule 1 are the year-end audited financial statements required by Section 6.01(a) of the Agreement for the fiscal year of the Borrower ended as of the above
date, together with the report and opinion of an independent certified public accountant required by such section. 
 [Use
following paragraph 1 for fiscal quarter-end financial statements] 
 1. Attached hereto as Schedule
1 are the unaudited financial statements required by Section 6.01(b) of the Agreement for the fiscal quarter of the Borrower ended as of the above date. Such financial statements fairly present the financial condition, results of
operations and cash flows of the Borrower and its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes. 
 [Use following paragraph 1 for month-end financial statements] 
 1. Attached hereto as Schedule 1 are the statements of income or operations required by Section 6.01(c)
of the Agreement for the fiscal month of the Borrower ended as of the above date. Such statements fairly present in all material respects the results of operations of the Borrower and its Subsidiaries (except that such statements were not prepared
in accordance with GAAP). 
  

 B-1 
 Form of Compliance Certificate 

 2. The undersigned has reviewed and is familiar with the terms of the
Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Borrower during the accounting period covered by the attached financial statements.

 3. A review of the activities of the Borrower during such fiscal period has been made under the supervision
of the undersigned with a view to determining whether during such fiscal period the Borrower performed and observed all its Obligations under the Loan Documents, and 
 [select one:] 
 [to the knowledge of the undersigned during
such fiscal period, the Borrower performed and observed each covenant and condition of the Loan Documents applicable to it, and no Default has occurred and is continuing.] 
 —or— 
 [the following covenants or conditions have
not been performed or observed and the following is a list of each such Default and its nature and status:] 
 4. [Except as described below,] The representations and warranties of the Borrower contained in Article V of the Agreement, and any representations and warranties of any Loan Party that are contained in any document furnished
at any time under or in connection with the Loan Documents, are true and correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and
correct as of such earlier date, and except that for purposes of this Compliance Certificate, the representations and warranties contained in subsection (a) of Section 5.05 of the Agreement shall be deemed to refer to the most
recent statements furnished pursuant to clause (a) of Section 6.01 of the Agreement, including the statements in connection with which this Compliance Certificate is delivered. 
 [describe] 
 5. The financial covenant analyses and information set forth on Schedule 2 attached hereto are true and accurate on and as of the date of this Certificate. 
 This Certificate is executed by the undersigned in his or her capacity as an officer of the Borrower and not in any
individual capacity. 
 IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
            ,          
  

 B-2 
 Form of Compliance Certificate 

			
	TEXAS INDUSTRIES, INC.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 B-3 
 Form of Compliance Certificate 

 For the Month/Quarter/Year ended
                    (“Statement Date”) 
 SCHEDULE 2 
 to the Compliance Certificate 
 ($ in 000’s) 
  

														
	 I.
	  	Leverage Ratio – For Determination of Applicable Rate.	  		
				
		  	 A.
	  	 Total Debt for the Borrower and its Subsidiaries, without duplication:
	  		
					
		  		  	 1.
	  	 All principal outstanding under the Loan Documents:
	  	$	            
					
		  		  	 2.
	  	 All principal obligations evidenced by a promissory note or otherwise representing borrowed money:
	  	$	            
					
		  		  	 3.
	  	 All reimbursement obligations for letters of credit that have been drawn upon and remain outstanding:
	  	$	            
					
		  		  	 4.
	  	 All Capitalized Lease Obligations:
	  	$	            
					
		  		  	 5.
	  	 Total Debt (Lines I.A.1. + 2. + 3. + 4.):
	  	$	            
				
		  	 B.
	  	 EBITDA for the period of the four fiscal quarters most recently ended:
	  		
					
		  		  	 1.
	  	 EBITDA for the Borrower and its Subsidiaries on a consolidated basis:
	  		
						
		  		  		  	 (a)
	  	 Adjusted Net Earnings From Operations for such Period:
	  		
							
		  		  		  		  	 (i)
	  	 net income for the Borrower and its Subsidiaries on a consolidated basis after provision for income taxes for such fiscal period, as determined in conformity
with GAAP and reported on the financial statements for such fiscal period:
	  	$	            
							
		  		  		  		  	 (ii)
	  	 to the extent included in net income, gain, to the extent in excess of $5,000,000, or loss arising from the sale of any capital assets (including sales of
surplus operating assets and real estate):
	  	$	            
							
		  		  		  		  	 (iii)
	  	 to the extent included in net income, gain or loss arising from any write-up or write-down in the book value of any asset:
	  	$	            
							
		  		  		  		  	 (iv)
	  	 to the extent included in net income, earnings of any other Person, substantially all of the assets of which have been acquired by the Borrower or its
Subsidiaries in any manner, to the extent realized by such other Person prior to the date of Acquisition:
	  	$	            

  

 B-4 
 Form of Compliance Certificate 

														
							
		  		  		  		  	 (v)
	  	 to the extent included in net income, earnings of any other Person (excluding Wholly-Owned Subsidiaries) in which the Borrower or its Subsidiaries has an
ownership interest unless (and only to the extent) such earnings shall actually have been received by the Borrower or its Subsidiaries in the form of cash distributions:
	  	$	            
							
		  		  		  		  	 (vi)
	  	 to the extent included in net income, earnings of any Person to which assets of the Borrower or its Subsidiaries shall have been sold, transferred, or disposed
of, or into which the Borrower or its Subsidiaries shall have been merged, or which has been a party with the Borrower or its Subsidiaries to any consolidation or other form of reorganization, prior to the date of such transaction:
	  	$	            
							
		  		  		  		  	 (vii)
	  	 to the extent included in net income, gain arising from the acquisition of debt or equity securities of the Borrower or its Subsidiaries or from cancellation or
forgiveness of Debt:
	  	$	            
							
		  		  		  		  	 (viii)
	  	 to the extent included in net income, gain or loss arising from extraordinary items, as determined in conformity with GAAP, or from any other non-recurring
transaction:
	  	$	            
							
		  		  		  		  	 (ix)
	  	 Adjusted Net Earnings From Operations (Lines I.B.1.(a)(i) – (ii) – (iii) – (iv) – (v) – (vi) – (vii) –
(viii)):
	  	$	            
						
		  		  		  	 (b)
	  	 To the extent deducted in the determination of Adjusted Net Earnings From Operations, Interest Expense:
	  	$	            
						
		  		  		  	 (c)
	  	 To the extent deducted in the determination of Adjusted Net Earnings From Operations, federal, state, local and foreign income taxes:
	  	$	            
						
		  		  		  	 (d)
	  	 To the extent deducted in the determination of Adjusted Net Earnings From Operations, Depreciation, amortization and other non-recurring non-cash
charges (excluding any non-cash charges to the extent that it represents an accrual of or reserve for cash payments in any future period):
	  	$	            

  

 B-5 
 Form of Compliance Certificate 

														
		  		  		  	 (e)
	  	 To the extent deducted in the determination of Adjusted Net Earnings From Operations, non-cash charges in respect of stock based compensation
expenses (excluding any non-cash charges to the extent that it represents an accrual of or reserve for cash payments in any future period):
	  	$	            
						
		  		  		  	 (f)
	  	 To the extent included in the determination of Adjusted Net Earnings From Operations, non-cash credits:
	  	$	            
						
		  		  		  	 (g)
	  	 EBITDA (Lines I.B.1(a)(ix) + (b) + (c) + (d) + (e) – (f)):
	  	$	            
				
		  	 C.
	  	 Leverage Ratio (Line I.A.5. ÷ Line I.B.1.(g)):
	  	 	          to 1.00

			
	 II.
	  	Sections 7.03(k) – Limitation on Other Debt.	  		
				
		  	 A.
	  	 The aggregate outstanding amount of other unsecured or secured Debt pursuant to Section 7.03(k):
	  	$	            
				
		  	 B.
	  	 Maximum:
	  	$	25,000,000
			
	 III.
	  	Section 7.11 – Fixed Charge Coverage Ratio	  		
				
		  	 A.
	  	 EBITDA (Line I.B.1(g)):
	  	$	            
				
		  	 B.
	  	 Capital Expenditures (except for Capital Expenditures (i) financed with borrowed money other than Loans or (ii) paid during the fiscal year ended
May 31, 2009 for capital improvements at the Oro Grande and Hunter facilities (provided, that up to $10,000,000 of Capital Expenditures accrued prior to May 31, 2009 for improvements such facilities may be paid following such date and still be
excluded from Capital Expenditures for the purposes of this definition)):
	  	$	            
				
		  	 C
	  	 Cash taxes paid
	  	$	            
				
		  	 D.
	  	 (Lines III.A. – B. - C.):
	  	$	            
				
		  	 E.
	  	 Interest Expense (other than payment-in-kind):
	  	$	            
				
		  	 F.
	  	 Principal payments made on borrowed money (including the principal portion of payments in respect of Capital Lease Obligations):
	  	$	            
				
		  	 G.
	  	 Restricted Payments (other than Dividends payable to the Borrower or a Guarantor or payable solely in stock):
	  	$	            
				
		  	 H
	  	 Rolling Stock Depreciation Amount:
	  	$	            
				
		  	 I.
	  	 Fixed Charges (Lines III.E. + F. + G. + H.)
	  	$	            
				
		  	 J.
	  	 Fixed Charge Coverage Ratio (Line III.D. ÷ Line III.I.):
	  	 	              to 1.00

				
		  	 K.
	  	 Minimum Fixed Charge Coverage Ratio:
	  	 	 1.10 to 1.00

  

 B-6 
 Form of Compliance Certificate 

 EXHIBIT C 
 FORM OF GUARANTY 
 GUARANTY (together
with all amendments and restatements and Guaranty Supplements, this “Guaranty”), dated as of August 15, 2007, made by each of the parties listed on the signature pages hereof and each other Person who may from time to time
become a party to this Guaranty pursuant to Section 22 (collectively, the “Additional Guarantors,” and each, an “Additional Guarantor,” and together with each of the signatories party
hereto, collectively the “Guarantors,” and each, a “Guarantor”), in favor of the Guarantied Parties referred to below. 
 WITNESSETH. 
 WHEREAS, Texas Industries, Inc., a Delaware
corporation (the “Borrower”), has entered into the First Amended and Restated Credit Agreement dated as of August 15, 2007, among Bank of America, N.A., as the Administrative Agent (hereinafter, the “Administrative
Agent”), the Lenders party thereto, Swing Line Lender and L/C Issuer (said Credit Agreement, as it may be amended, supplemented, or otherwise modified from time to time, the “Credit Agreement”; and capitalized terms not
defined herein but defined therein being used herein as therein defined); and 
 WHEREAS, the Borrower and each
of the Guarantors are members of the same consolidated group of companies and are engaged in operations which require financing on a basis in which credit can be made available from time to time to the Borrower and the Guarantors, and the Guarantors
will derive direct and indirect economic benefit from the Revolving Loans, Swing Line Loans and Letters of Credit under the Credit Agreement and financial accommodations made pursuant to Swap Contracts and Cash Management Documents; and 

WHEREAS, it is a condition precedent to the obligation of the Lenders to make Revolving Loans and Swing Line Loans and
issue Letters of Credit under the Credit Agreement and Guarantied Parties to make financial accommodations under Swap Contracts and Cash Management Documents that the Guarantors shall have executed and delivered this Guaranty; and 
 WHEREAS, the Administrative Agent, the Lenders, any Lender or Affiliate of any Lender that is a party to any Swap Contract
with the Borrower or any Subsidiary of the Borrower, any Lender or Affiliate of any Lender that is owed any Cash Management Obligation (provided that at the time such Cash Management Obligation arose such Lender is a party to the Credit Agreement),
and the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document are herein referred to as the “Guarantied Parties”; provided that any Person that ceases to be a Lender (and any Affiliate
of such Person) shall be a Guarantied Party only with respect to transactions under Swap Contracts that were entered into during or prior to the time that such Person was a Lender. 
  

 C-1 
 Form of Guaranty 

 AGREEMENT. 
 NOW, THEREFORE, in consideration of the premises and to induce the Lenders to make Revolving Loans, the Swing Line Lender to make Swing Line Loans and the L/C Issuer to issue Letters
of Credit and Guarantied Parties to make financial accommodations under Swap Contracts and Cash Management Documents, the Guarantors hereby agree as follows: 
 SECTION 1. Guaranty. The Guarantors hereby jointly and severally unconditionally and irrevocably guarantee the full and prompt payment when due, whether at stated
maturity, by acceleration or otherwise, of, and the performance of, (a) the Obligations, whether now or hereafter existing and whether for principal, interest, fees, expenses or otherwise, (b) all Swap Obligations owed to any Guarantied
Party under a Swap Contract, each a “Guarantied Swap Contract”), (c) all Cash Management Obligations owed to any Lender or any Affiliate of such Lender (provided that at the time such Cash Management Obligation arose such
Lender is a party to the Credit Agreement), (d) any and all out-of-pocket expenses (including, without limitation, expenses and reasonable counsel fees and expenses of the Administrative Agent and the other Guarantied Parties) incurred by any
of the Guarantied Parties in enforcing any rights under this Guaranty or under any other Loan Document, and (e) all present and future amounts in respect of the foregoing that would become due but for the operation of any provision of Debtor
Relief Laws, and all present and future accrued and unpaid interest, including, without limitation, all post-petition interest if any Loan Party voluntarily or involuntarily becomes subject to any Debtor Relief Laws (the items set forth in clauses
(a), (b), (c), (d) and (e) being herein referred to as the “Guarantied Obligations”). Upon failure of the Borrower to pay any of the Guarantied Obligations when due after the giving by the Administrative Agent and/or the
Guarantied Parties of any notice and the expiration of any applicable cure period in each case provided for in the Credit Agreement, the other Loan Documents, any Guarantied Swap Contract or any Cash Management Document (whether at stated maturity,
by acceleration or otherwise), the Guarantors hereby further jointly and severally agree to promptly pay the same after the Guarantors’ receipt of notice from the Administrative Agent of the Borrower’s failure to pay the same, without any
other demand or notice whatsoever, including without limitation, any notice having been given to any Guarantor of either the acceptance by the Guarantied Parties of this Guaranty or the creation or incurrence of any of the Guarantied Obligations.
This Guaranty is an absolute guaranty of payment and performance of the Guarantied Obligations and not a guaranty of collection, meaning that it is not necessary for the Guarantied Parties, in order to enforce payment by the Guarantors, first or
contemporaneously to accelerate payment of any of the Guarantied Obligations, to institute suit or exhaust any rights against any Loan Party, or to enforce any rights against any collateral. Notwithstanding anything herein or in any other Loan
Document, any Guarantied Swap Contract or any Cash Management Document to the contrary, in any action or proceeding involving any state corporate or other entity Law, or any state or federal bankruptcy, insolvency, reorganization or other Law
affecting the rights of creditors generally, if, as a result of applicable Law relating to fraudulent conveyance or fraudulent transfer, including Section 548 of Bankruptcy Code or any applicable provisions of comparable state Law
(collectively, “Fraudulent Transfer Laws”), the obligations of any Guarantor under this Section 1 would otherwise, after giving effect to (a) all other liabilities of such Guarantor, contingent or otherwise, that
are relevant under such Fraudulent Transfer Laws (specifically excluding, however, any liabilities of such Guarantor in respect of intercompany Debt to the Borrower to the extent that such Debt would be discharged in an amount equal to the amount

  

 C-2 
 Form of Guaranty 

 
paid by such Guarantor hereunder) and (b) to the value as assets of such Guarantor (as determined under the applicable provisions of such Fraudulent Transfer Laws) of any rights of
subrogation, contribution, reimbursement, indemnity or similar rights held by such Guarantor pursuant to (i) applicable requirements of Law, (ii) Section 10 hereof or (iii) any other contractual obligations providing for
an equitable allocation among such Guarantor and other Subsidiaries or Affiliates of the Borrower of obligations arising under this Guaranty or other guaranties of the Guarantied Obligations by such parties, be held or determined to be void, invalid
or unenforceable, or subordinated to the claims of any other creditors, on account of the amount of its liability under this Section 1, then the amount of such liability shall, without any further action by such Guarantor, any Guarantied
Party, the Administrative Agent or any other Person, be automatically limited and reduced to the highest amount that is valid and enforceable and not subordinated to the claims of other creditors as determined in such action or proceeding.

 SECTION 2. Guaranty Absolute. Each Guarantor guarantees that the Guarantied Obligations will be
paid strictly in accordance with the terms of the Credit Agreement, the Notes, the other Loan Documents, the Guarantied Swap Contracts and the Cash Management Documents, without set-off or counterclaim, and regardless of any Applicable Law now or
hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Guarantied Parties with respect thereto. The liability of each Guarantor under this Guaranty shall be absolute and unconditional irrespective of: 
 (a) any lack of validity or enforceability of any provision of any other Loan Document, any Guarantied Swap Contract or any
Cash Management Document or any other agreement or instrument relating to any of the foregoing, or avoidance or subordination of any of the Guarantied Obligations; 
 (b) any change in the time, manner or place of payment of, or in any other term of, or any increase in the amount of, all or any of the Guarantied Obligations, or any other amendment
or waiver of any term of, or any consent to departure from any requirement of, the Credit Agreement, the Notes or any of the other Loan Documents, any Guarantied Swap Contract or any Cash Management Document; 
 (c) any exchange, release or non-perfection of any Lien on any collateral for, or any release of any other Loan Party or
amendment or waiver of any term of any other guaranty of, or any consent to departure from any requirement of any other guaranty of, all or any of the Guarantied Obligations; 
 (d) the absence of any attempt to collect any of the Guarantied Obligations from the Borrower or from any other Loan Party or any other action to enforce the same or the election of
any remedy by any of the Guarantied Parties; 
 (e) any waiver, consent, extension, forbearance or granting of
any indulgence by any of the Guarantied Parties with respect to any provision of any other Loan Document, any Guarantied Swap Contract or any Cash Management Document; 
 (f) the election by any of the Guarantied Parties in any proceeding under any Debtor Relief Law; 
  

 C-3 
 Form of Guaranty 

 (g) any borrowing or grant of a security interest by the Borrower, as
debtor-in-possession, under any Debtor Relief Law; or 
 (h) any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of the Borrower or any Guarantor other than payment or performance of the Guarantied Obligations. 
 SECTION 3. Waiver. 
 (a) Each Guarantor hereby
(i) waives (A) promptness, diligence, and, except as otherwise provided herein, notice of acceptance and any and all other notices, including, without limitation, notice of intent to accelerate and notice of acceleration, with respect to
any of the Guarantied Obligations or this Guaranty, (B) any requirement that any of the Guarantied Parties protect, secure, perfect or insure any security interest in or other Lien on any property subject thereto or exhaust any right or take
any action against the Borrower or any other Person or any collateral, (C) the filing of any claim with a court in the event of receivership or bankruptcy of the Borrower or any other Person, (D) except as otherwise provided herein,
protest or notice with respect to nonpayment of all or any of the Guarantied Obligations, (E) to the extent not prohibited by Law, the benefit of any statute of limitation, (F) all demands whatsoever (and any requirement that demand be
made on the Borrower or any other Person as a condition precedent to such Guarantor’s obligations hereunder), (G) all rights by which any Guarantor might be entitled to require suit on an accrued right of action in respect of any of the
Guarantied Obligations or require suit against the Borrower or any other Guarantor or Person, whether arising pursuant to Section 34.02 of the Texas Business and Commerce Code, as amended, Section 17.001 of the Texas Civil Practice and
Remedies Code, as amended, Rule 31 of the Texas Rules of Civil Procedure, as amended, or otherwise, (H) any defense based upon an election of remedies by any Guarantied Party, or (I) notice of any events or circumstances set forth in
clauses (a) through (h) of Section 2 hereof; and (ii) covenants and agrees that, except as otherwise agreed by the parties, this Guaranty will not be discharged except by (A) complete payment and performance of the
Guarantied Obligations and any other obligations of such Guarantor contained herein or (B) as to any Guarantor, upon the sale or other disposition of all of the Equity Interests of such Guarantor as permitted under the Credit Agreement.

 (b) If, in the exercise of any of its rights and remedies, any of the Guarantied Parties shall forfeit any of
its rights or remedies, including, without limitation, its right to enter a deficiency judgment against the Borrower or any other Person, whether because of any Applicable Law pertaining to “election of remedies” or the like, each
Guarantor hereby consents to such action by such Guarantied Party and waives any claim based upon such action. Any election of remedies which, by reason of such election, results in the denial or impairment of the right of such Guarantied Party to
seek a deficiency judgment against the Borrower or any other Person shall not impair the obligation of such Guarantor to pay the full amount of the Guarantied Obligations or any other obligation of such Guarantor contained herein. 
 (c) In the event any of the Guarantied Parties shall bid at any foreclosure or trustee’s sale or at any private sale
permitted by Law or under any of the Loan Documents, any Guarantied Swap Contract or any Cash Management Document, to the extent not prohibited by Applicable Law, such Guarantied Party may bid all or less than the amount of the Guarantied

  

 C-4 
 Form of Guaranty 

 
Obligations and the amount of such bid, if successful, need not be paid by such Guarantied Party but shall be credited against the Guarantied Obligations. 
 (d) Each Guarantor agrees that notwithstanding the foregoing and without limiting the generality of the foregoing if, after
the occurrence and during the continuance of an Event of Default, the Guarantied Parties are prevented by Applicable Law from exercising their respective rights to accelerate the maturity of the Guarantied Obligations, to collect interest on the
Guarantied Obligations, or to enforce or exercise any other right or remedy with respect to the Guarantied Obligations, or the Administrative Agent is prevented from taking any action to realize on the collateral, such Guarantor agrees to pay to the
Administrative Agent for the account of the Guarantied Parties, upon demand therefor, for application to the Guarantied Obligations, the amount that would otherwise have been due and payable had such rights and remedies been permitted to be
exercised by the Guarantied Parties. 
 (e) Each Guarantor hereby assumes responsibility for keeping itself
informed of the financial condition of the Borrower and of each other Loan Party, and of all other circumstances bearing upon the risk of nonpayment of the Guarantied Obligations or any part thereof, that diligent inquiry would reveal. Each
Guarantor hereby agrees that the Guarantied Parties shall have no duty to advise any Guarantor of information known to any of the Guarantied Parties regarding such condition or any such circumstance. In the event that any of the Guarantied Parties
in its sole discretion undertakes at any time or from time to time to provide any such information to any Guarantor, such Guarantied Party shall be under no obligation (i) to undertake any investigation not a part of its regular business
routine, (ii) to disclose any information which, pursuant to accepted or reasonable banking or commercial finance practices, such Guarantied Party wishes to maintain as confidential, or (iii) to make any other or future disclosures of such
information or any other information to such Guarantor. 
 (f) Each Guarantor consents and agrees that the
Guarantied Parties shall be under no obligation to marshal any assets in favor of any Guarantor or any other Loan Party or otherwise in connection with obtaining payment of any or all of the Guarantied Obligations from any Person or source.

 SECTION 4. Representations and Warranties. Each Guarantor hereby represents and warrants to the
Guarantied Parties that the representations and warranties set forth in Article V of the Credit Agreement as they relate to such Guarantor or to the Loan Documents to which such Guarantor is a party are true and correct in all material
respects in the manner specified in the Credit Agreement and the Guarantied Parties shall be entitled to rely on each of them as if they were fully set forth herein. 
 SECTION 5. Amendments, Etc. No amendment or waiver of any provision of this Guaranty, and no consent to any departure by any Guarantor herefrom shall in any event be
effective unless the same shall be in writing, approved by the Required Lenders (or by all the Lenders where the approval of each Lender is required under the Credit Agreement) and signed by the Administrative Agent, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given. 
  

 C-5 
 Form of Guaranty 

 SECTION 6. Addresses for Notices. All notices and other
communications provided for hereunder shall be effectuated in the manner provided for in Section 10.02 of the Credit Agreement; provided, that if a notice or communication hereunder is sent to a Guarantor, said notice shall be
addressed to such Guarantor, in care of the Borrower at the Borrower’s then current address (or facsimile number) for notice under the Credit Agreement. 
 SECTION 7. No Waiver; Remedies. 
 (a) No failure on the part of any Guarantied Party to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further
exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by Applicable Law or any of the other Loan Documents, any Guarantied Swap Contract or any Cash Management
Document. 
 (b) No waiver by the Guarantied Parties of any default shall operate as a waiver of any other
default or the same default on a future occasion, and no action by any of the Guarantied Parties permitted hereunder shall in way affect or impair any of the rights of the Guarantied Parties or the obligations of any Guarantor under this Guaranty or
under any of the other Loan Documents, any Guarantied Swap Contract or any Cash Management Document, except as specifically set forth in any such waiver. Any determination by a court of competent jurisdiction of the amount of any principal and/or
interest or other amount constituting any of the Guarantied Obligations shall be conclusive and binding on each Guarantor irrespective of whether such Guarantor was a party to the suit or action in which such determination was made, provided that
the Borrower was so a party. 
 SECTION 8. Right of Set-off. Upon the occurrence and during the
continuance of any Event of Default under the Credit Agreement, each of the Guarantied Parties is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set-off and apply any and all deposits
(general or special (except trust and escrow accounts), time or demand, provisional or final) at any time held and other Debt at any time owing by such Guarantied Party to or for the credit or the account of each Guarantor against any and all of the
obligations of such Guarantor now or hereafter existing under this Guaranty, irrespective of whether or not such Guarantied Party shall have made any demand under this Guaranty and although such obligations may be contingent and unmatured;
provided, however, such Guarantied Party shall promptly notify such Guarantor and the Borrower after such set-off and the application made by such Guarantied Party. The rights of each Guarantied Party under this Section 8
are in addition to other rights and remedies (including, without limitation, other rights of set-off) which such Guarantied Party may have. 
 SECTION 9. Continuing Guaranty; Transfer of Notes. This Guaranty (a)(i) is a continuing guaranty and shall remain in full force and effect until the date upon which all Guarantied Obligations
are finally paid in full, the Commitments are terminated and all Letters of Credit and Guarantied Swap Contracts have expired or terminated (the “Release Date”) and (ii) binding upon each Guarantor, its permitted successors and
assigns, and (b) inures to the benefit of and be enforceable by the Guarantied Parties and their respective successors, permitted transferees, and permitted assigns. Without limiting the generality of the foregoing clause (b),

  

 C-6 
 Form of Guaranty 

 
each of the Guarantied Parties may assign or otherwise transfer any Note held by it or the Guarantied Obligations owed to it to any other Person, and such other Person shall thereupon become
vested with all the rights in respect thereof granted to such Guarantied Party herein or otherwise with respect to such of the Notes and the Guarantied Obligations so transferred or assigned, subject, however, to compliance with the provisions of
Section 10.06 of the Credit Agreement in respect of assignments. No Guarantor may assign any of its obligations under this Guaranty without first obtaining the written consent of the Lenders as set forth in the Credit Agreement.

 SECTION 10. Reimbursement. To the extent that any Guarantor shall be required hereunder to pay a
portion of the Guarantied Obligations exceeding the greater of (a) the amount of the economic benefit actually received by such Guarantor from the Loans, the Letters of Credit, Guarantied Swap Contracts and Cash Management Documents and
(b) the amount such Guarantor would otherwise have paid if such Guarantor had paid the aggregate amount of the Guarantied Obligations (excluding the amount thereof repaid by the Borrower) in the same proportion as such Guarantor’s net
worth at the date enforcement is sought hereunder bears to the aggregate net worth of all the Guarantors at the date enforcement is sought hereunder, then such Guarantor shall be reimbursed by such other Guarantors for the amount of such excess, pro
rata, based on the respective net worths of such other Guarantors at the date enforcement hereunder is sought. Notwithstanding anything to the contrary, each Guarantor agrees that the Guarantied Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without impairing its guaranty herein or effecting the rights and remedies of the Guarantied Parties hereunder. This Section 10 is intended only to define the relative rights
of the Guarantors, and nothing set forth in this Section 10 is intended to or shall impair the obligations of the Guarantors, jointly and severally, to pay to the Guarantied Parties the Guarantied Obligations as and when the same shall
become due and payable in accordance with the terms hereof. 
 SECTION 11. Application of
Payments. All amounts and property received by Administrative Agent and Guarantied Parties pursuant to this Guaranty (including amounts and property received or applied pursuant to Section 8 or application of other rights of
set-off) shall be applied as provided in Section 8.03 of the Credit Agreement. 
 SECTION 12.
Reinstatement. This Guaranty shall remain in full force and effect and continue to be effective should any petition be filed by or against any Loan Party for liquidation or reorganization, should any Loan Party become insolvent or make an
assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any significant part of any Loan Party’s assets, and shall, to the fullest extent permitted by Applicable Law, continue to be effective or be
reinstated, as the case may be, if at any time payment and performance of the Guarantied Obligations, or any part thereof, is, pursuant to Applicable Law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligees of
the Guarantied Obligations or such part thereof, whether as a “voidable preference,” “fraudulent transfer,” or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned, the Guarantied Obligations shall, to the fullest extent permitted by Law, be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

  

 C-7 
 Form of Guaranty 

 SECTION 13. GOVERNING LAW. 
 (a) THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; AND APPLICABLE FEDERAL LAW. 
 (b) EACH
GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF TEXAS SITTING IN DALLAS COUNTY AND OF THE UNITED
STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS (DALLAS DIVISION), AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR
ENFORCEMENT OF ANY JUDGMENT, AND EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH TEXAS STATE
COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS GUARANTY OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY OTHER GUARANTIED PARTY MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT AGAINST ANY GUARANTOR OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 
 (c) EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
PARAGRAPH (c) OF THIS SECTION. EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH
ACTION OR PROCEEDING IN ANY SUCH COURT. 
 (d) EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED
PARTY WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF THE STATE OF TEXAS. 
  

 C-8 
 Form of Guaranty 

 SECTION 14. Waiver of Right to Trial by Jury. EACH GUARANTOR,
THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO, ANY GUARANTIED PARTY OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR
TORT OR OTHERWISE; AND EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS
GUARANTY AND ANY GUARANTIED PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH GUARANTIED PARTY TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY. 
 SECTION 15. Section Titles. The Section titles contained in this Guaranty are and
shall be without substantive meaning or content of any kind whatsoever and are not to be used in interpretation of this Guaranty. 
 SECTION 16. Execution in Counterparts. This Guaranty may be executed in any number of counterparts (and by different parties hereto in separate counterparts), each of which when so executed
and delivered shall be deemed to be an original, all of which taken together shall constitute one and the same Guaranty. 
 SECTION 17. Miscellaneous. All references herein to the Borrower or to any Guarantor shall include their respective successors and assigns, including, without limitation, a receiver, trustee
or debtor-in-possession of or for the Borrower or such Guarantor. All references to the singular shall be deemed to include the plural where the context so requires. 
 SECTION 18. Subrogation and Subordination. 
 (a) Subrogation. Notwithstanding any reference to subrogation contained herein to the contrary, each Guarantor hereby irrevocably agrees that until the Release Date that such Guarantor shall not
exercise any claim or other rights which it may have or hereafter acquire against the Borrower that arise from the existence, payment, performance or enforcement of such Guarantor’s obligations under this Guaranty, including, without
limitation, any right of subrogation, reimbursement, exoneration, contribution, indemnification, any right to participate in any claim or remedy of any Guarantied Party against the Borrower or any collateral which any Guarantied Party now has or
hereafter acquires, whether or not such claim, remedy or right arises in equity, or under contract, statutes or common law, including without limitation, the right to take or receive from the Borrower, directly or indirectly, in cash or other
property or by set-off or in any other manner, payment or security on account of such claim or other rights. If any amount shall be paid to any Guarantor in violation of the preceding sentence and the Guarantied Obligations shall not have been paid
in full, such amount shall be deemed to have been paid to

  

 C-9 
 Form of Guaranty 

 
such Guarantor for the benefit of, and held in trust for the benefit of, the Guarantied Parties, and shall forthwith be paid to the Administrative Agent to be credited and applied upon the
Guarantied Obligations, whether matured or unmatured, in accordance with the terms of the Credit Agreement. Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Credit
Agreement and that the waiver set forth in this Section 18 is knowingly made in contemplation of such benefits. 
 (b) Subordination. With respect to each Guarantor, all debt and other liabilities of the Borrower or any other Loan Party to such Guarantor (“Loan Party Debt”) are expressly
subordinate and junior to the Guarantied Obligations and any instruments evidencing the Loan Party Debt to the extent provided below. 
 (i) Until the Release Date, each Guarantor agrees that it will not request, demand, accept, or receive (by set-off or other manner) any payment amount, credit or reduction of all or any part of the
amounts owing under the Loan Party Debt or any security therefor, except as specifically allowed pursuant to clause (ii) below; 
 (ii) Notwithstanding the provisions of clause (i) above, the Borrower and each other Loan Party may pay to such Guarantor and such Guarantor may request, demand, accept and receive and retain from
the Borrower or such other Loan Party payments, credits or reductions of all or any part of the amounts owing under the Loan Party Debt or any security therefor on the Loan Party Debt, provided that the Borrower’s and such other Loan
Party’s right to pay and such Guarantor’s right to receive any such amount shall automatically and be immediately suspended and cease (A) upon the occurrence and during the continuance of an Event of Default or (B) if, after
taking into account the effect of such payment, an Event of Default would occur and be continuing. Such Guarantor’s right to receive amounts under this clause (ii) (including any amounts which theretofore may have been suspended) shall
automatically be reinstated at such time as the Event of Default which was the basis of such suspension has been cured or waived (provided that no subsequent Event of Default has occurred) or such earlier date, if any, as the Administrative Agent
gives notice to the Guarantors of reinstatement by the Required Lenders, in the Required Lenders’ sole discretion; 
 (iii) If any Guarantor receives any payment on the Loan Party Debt in violation of this Guaranty, such Guarantor will hold such payment in trust for the Guarantied Parties and will immediately deliver
such payment to the Administrative Agent; and 
 (iv) In the event of the commencement or joinder
of any suit, action or proceeding of any type (judicial or otherwise) or proceeding under any Debtor Relief Law against the Borrower or any other Loan Party (an “Insolvency Proceeding”) and subject to court orders issued pursuant to
the applicable Debtor Relief Law, the Guarantied Obligations shall first be paid, discharged and performed in full before any payment or performance is made upon the Loan Party Debt notwithstanding any other provisions which may be made in such
Insolvency Proceeding. In the event of any Insolvency Proceeding, each Guarantor will at any time prior to the Release Date (A) file, at the request of any Guarantied Party, any claim, proof of claim or similar instrument necessary to enforce
the Borrower’s or such other Loan Party’s obligation to pay the

  

 C-10 
 Form of Guaranty 

 
Loan Party Debt, and (B) hold in trust for and pay to the Administrative Agent, for the benefit of Guarantied Parties, any and all monies, obligations, property, stock dividends or other
assets received in any such proceeding on account of the Loan Party Debt in order that the Guarantied Parties may apply such monies or the cash proceeds of such other assets to the Guarantied Obligations. 
 SECTION 19. Guarantor Insolvency. Should any Guarantor voluntarily seek, consent to, or acquiesce in the
benefits of any Debtor Relief Law or become a party to or be made the subject of any proceeding provided for by any Debtor Relief Law (other than as a creditor or claimant) that could suspend or otherwise adversely affect the rights of any
Guarantied Party granted hereunder, then, the obligations of such Guarantor under this Guaranty shall be, as between such Guarantor and such Guarantied Party, a fully-matured, due, and payable obligation of such Guarantor to such Guarantied Party
(without regard to whether there is an Event of Default under the Credit Agreement or whether any part of the Guarantied Obligations is then due and owing by the Borrower to such Guarantied Party), payable in full by such Guarantor to the
Administrative Agent, for the benefit of such Guarantied Party, upon demand, which shall be the estimated amount owing in respect of the contingent claim created hereunder. 
 SECTION 20. Rate Provision. It is not the intention of any Guarantied Party to make an agreement violative of the Laws of any applicable jurisdiction relating to usury.
Regardless of any provision in this Guaranty, no Guarantied Party shall ever be entitled to contract, charge, receive, collect or apply, as interest on the Guarantied Obligations, any amount in excess of the Highest Lawful Rate. In no event shall
any Guarantor be obligated to pay any amount in excess of the Highest Lawful Rate. If from any circumstance the Administrative Agent or any Guarantied Party shall ever receive, collect or apply anything of value deemed excess interest under
Applicable Law, an amount equal to such excess shall be applied first to the reduction of the principal amount of outstanding Revolving Loans, Term Loans, Swing Line Loans, L/C Borrowings, second to the reduction of principal of any other Guarantied
Obligations, and third any remainder shall be promptly refunded to the payor. In determining whether or not interest paid or payable with respect to the Guarantied Obligations, under any specified contingency, exceeds the Highest Lawful Rate, the
Guarantors and the Guarantied Parties shall, to the maximum extent permitted by Applicable Law, (a) characterize any non-principal payment as an expense, fee or premium rather than as interest, (b) amortize, prorate, allocate and spread
the total amount of interest throughout the full term of such Guarantied Obligations so that the interest paid on account of such Guarantied Obligations does not exceed the Highest Lawful Rate and/or (c) allocate interest between portions of
such Guarantied Obligations; provided, that if the Guarantied Obligations are paid and performed in full prior to the end of the full contemplated term thereof, and if the interest received for the actual period of existence thereof exceeds the
Highest Lawful Rate, the Guarantied Parties shall refund to the payor the amount of such excess or credit the amount of such excess against the total principal amount owing, and, in such event, no Guarantied Party shall be subject to any penalties
provided by any laws for contracting for, charging or receiving interest in excess of the Highest Lawful Rate. 
 SECTION 21. Severability. Any provision of this Guaranty which is for any reason prohibited or found or held invalid or unenforceable by any court or Governmental Authority shall be ineffective to the extent of such prohibition
or invalidity or unenforceability, without

  

 C-11 
 Form of Guaranty 

 
invalidating the remaining provisions hereof in such jurisdiction or affecting the validity or enforceability of such provision in any other jurisdiction. 
 SECTION 22. Additional Guarantors. Upon the execution and delivery by any other Person of a Guaranty Supplement
in substantially the form of Exhibit A (each, a “Guaranty Supplement”), such Person shall become a “Guarantor” hereunder with the same force and effect as if originally named as a Guarantor herein. The execution and
delivery of any Guaranty Supplement shall not require the consent of any other Guarantor. The rights and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new Guarantor as a party to
this Guaranty. 
 SECTION 23. ENTIRE AGREEMENT. THIS GUARANTY AND THE OTHER LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT AMONG THE PARTIES REGARDING THE SUBJECT MATTER HEREIN AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 SECTION 24. Conflicts. If in the event of a conflict between the terms and conditions of this
Guaranty and the terms and conditions of the Credit Agreement, the terms and conditions of the Credit Agreement shall control. 
 SECTION 25. Taxes. 
 (a) Except as provided below in
this Section 25, any and all payments by each Guarantor to or for the account of the Administrative Agent or any Lender under this Guaranty, any other Loan Document or any Guarantied Swap Contract shall be made free and clear of and
without deduction for any and all present or future taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, now or thereafter imposed, and all liabilities with respect thereto, excluding, in the case of any
Guarantied Party, or its applicable lending office, or any branch or affiliate thereof, taxes imposed on or measured by its net income (including net income taxes imposed by means of a backup withholding tax) franchise taxes, branch taxes, taxes on
doing business or taxes measured by or imposed upon the overall capital or net worth of any Guarantied Party or its applicable lending office, or any branch or affiliate thereof, in each case imposed: (i) by the jurisdiction under the laws of
which the Administrative Agent, or such Lender, applicable lending office, branch or affiliate is organized or is located, or in which the principal executive office of any Guarantied Party is located, or any nation within which such jurisdiction is
located or any political subdivision thereof; or (ii) by reason of any present or former connection between the jurisdiction imposing such tax and such Guarantied Party, applicable lending office, branch or affiliate other than a connection
arising solely from such Guarantied Party having executed, delivered or performed its obligation under, or received payment under or enforced this Agreement (all such non-excluded taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and liabilities being hereinafter referred to as “Taxes”). If any Guarantor shall be required by any Laws to deduct any Taxes from or in respect of any sum payable under this Guaranty, any other Loan
Document or any Guarantied Swap Contract to any Guarantied Party, (iii) the sum payable shall be increased as necessary to yield to such Guarantied Party an amount equal to the sum it would have received

  

 C-12 
 Form of Guaranty 

 
had no such deductions been made, (iv) such Guarantor shall make such deductions, (v) such Guarantor shall pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable Laws, and (vi) within 30 days after the date of such payment, such Guarantor shall furnish to the Administrative Agent (which shall forward the same to such Guarantied Party) the original or a certified
copy of a receipt evidencing payment thereof; provided, however, that such Guarantor shall be entitled to deduct and withhold any Taxes and shall not be required to increase any such amounts payable to any Guarantied Party with respect
to Taxes (vii) that are directly attributable to such Guarantied Party’s failure to comply with the requirements of Section 3.06(a) of the Credit Agreement or (viii) that are U.S. withholding taxes imposed on amounts
payable to such Lender at the time such Guarantied Party becomes a party to the Credit Agreement. 
 (b) In
addition, each Guarantor agrees to pay any and all present or future stamp, court or documentary taxes and any other excise or property taxes or charges or similar levies which arise from any payment made under this Guaranty, any other Loan Document
or any Guarantied Swap Contract or from the execution, delivery, performance, enforcement or registration of, or otherwise with respect to, this Guaranty, any other Loan Document or any Guarantied Swap Contract, except that no Guarantor shall be
obligated to pay any such taxes, charges or similar levies that are incurred or payable by any Person in connection with any assignment referred to in Section 10.06(b) of the Credit Agreement, any participation referred to in
Section 10.06(d) of the Credit Agreement or any pledge or security interest referred to in Section 10.06(f) of the Credit Agreement (such taxes, charges and similar levies with respect to which the Guarantors are obligated to
pay are hereinafter referred to as “Other Taxes”). 
 (c) If any Guarantor shall be required to
pay any Taxes or Other Taxes from or in respect of any sum payable under this Guaranty, any other Loan Document or any Guarantied Swap Contract to any Guarantied Party, such Guarantor shall also pay to the Administrative Agent (for the account of
such Guarantied Party) or to such Guarantied Party, but without duplication in respect of such amounts payable hereunder, at the time interest on the Guarantied Obligations is paid, such additional amount that such Guarantied Party specifies as
necessary to preserve the after-tax yield (after factoring in all taxes, including taxes imposed on or measured by net income) such Guarantied Party would have received if such Taxes or Other Taxes had not been imposed. 
 (d) Each Guarantor agrees to indemnify each Guarantied Party for (i) the full amount of Taxes and Other Taxes incurred
by or on account of any obligation of such Guarantor hereunder (including any Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts payable under this Section) that are paid by such Guarantied Party, (ii) amounts payable under
Section 25(c) and (iii) any liability (including penalties, interest and expenses) arising therefrom or with respect thereto, in each case whether or not such Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. Payment under this subsection (d) shall be made within 30 days after the date the Guarantied Party makes a demand therefor. 
 (e) Any Guarantied Party claiming any additional amounts payable pursuant to this Section 25 shall use its reasonable best efforts (consistent with its internal policy
and legal and regulatory restrictions) to change the jurisdiction of its lending office, if the making of such a

  

 C-13 
 Form of Guaranty 

 
change would avoid the need for, or reduce the amount of, any such additional amounts which may thereafter accrue and would not, in the reasonable judgment of such Guarantied Party, be
disadvantageous to such Guarantied Party. 
 (f) Each Guarantied Party agrees that (i) it will take all
reasonable actions by all usual means to maintain all exemptions, if any, available to it from United States withholding taxes (whether available by treaty, existing administrative waiver, by virtue of the location of any Guarantied Party’s
lending office) and (ii) otherwise cooperate with the Borrower to minimize amounts payable by each Guarantor under this Section 25; provided, however, the Guarantied Parties shall not be obligated by reason of this
Section 25(f) to contest the payment of any Taxes or Other Taxes or to disclose any information regarding its tax affairs or tax computations or reorder its tax or other affairs or tax or other planning. Subject to the foregoing, to the
extent any Guarantor pays sums pursuant to this Section 25 Guarantied Party receives a refund of any or all of such sums, such refund shall be promptly paid to such Guarantor, provided that no Default is in existence at such time.
Notwithstanding anything in this Section 24 to the contrary, the demand by any Guarantied Party for the payment of Taxes or Other Taxes under this Section 25 shall not include any Taxes or Other Taxes that occurred 180 days
prior to the date that such Guarantied Party notifies the Borrower of such Taxes or Other Taxes no later than 180 days after the date that such Guarantied Party had actual knowledge of such Taxes or Other Taxes, except to the extent that any such
Taxes or Other Taxes are retroactive according to the terms of the applicable provisions related thereto. 
 (g)
The obligations of each Guarantor and each Lender or Participant under this Section 25 shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder and under the other Loan
Documents. 
  

	
	THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK

  

 C-14 
 Form of Guaranty 

 IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be duly
executed and delivered by its duly authorized officer on the date first above written. 
  

			
	 BROOKHOLLOW CORPORATION

	 BROOK HOLLOW PROPERTIES, INC.

	 BROOKHOLLOW OF ALEXANDRIA, INC.

	 BROOKHOLLOW OF VIRGINIA, INC.

	 SOUTHWESTERN FINANCIAL

	 CORPORATION

	 CREOLE CORPORATION

	 PARTIN LIMESTONE PRODUCTS, INC.

	 RIVERSIDE CEMENT HOLDINGS COMPANY

	 TXI AVIATION, INC.

	 TXI CEMENT COMPANY

	 TXI RIVERSIDE INC.

	 TXI TRANSPORTATION COMPANY

	 TXI CALIFORNIA INC.

	 PACIFIC CUSTOM MATERIALS, INC.

	 TXI POWER COMPANY

	 TEXAS INDUSTRIES HOLDINGS, LLC

	 TEXAS INDUSTRIES TRUST

	 TXI LLC

	 TXI OPERATING TRUST

		
	 By:
	 	  

		 	 Kenneth R. Allen

		 	 Vice President and Treasurer

  

 C-15 
 Form of Guaranty 

			
	 RIVERSIDE CEMENT COMPANY

		
	 By:
	 	  

		 	 Kenneth R. Allen

		 	 Assistant General Manager - Treasurer

  

 C-16 
 Form of Guaranty 

			
	 TXI OPERATIONS, LP

		
	 By:
	 	 TXI Operating Trust, its general partner

		
	 By:
	 	  

		 	 Kenneth R. Allen

		 	 Vice President and Treasurer

  

			
	NOTICE ADDRESS FOR ALL
	GUARANTORS:
	
	 1341 West Mockingbird Lane

	 Dallas, Texas 75247

	 Phone No.:
	 	 (972) 647-6730

	 Fax No.:
	 	 (972) 647-3964

	 Attention:
	 	 Kenneth R. Allen

  

 C-17 
 Form of Guaranty 

 EXHIBIT A TO GUARANTY 
 GUARANTY SUPPLEMENT NO.      
 THIS GUARANTY SUPPLEMENT NO.      (this “Guaranty Supplement”) dated as of
                    , to the Guaranty dated as of August 15, 2007 (such agreement, together with all amendments and restatements and guaranty
supplements, the “Guaranty”)6, among the
initial signatories thereto and each other Person who from time to time thereafter became a party thereto pursuant to Section 22 thereof (each, individually, a “Guarantor” and, collectively, the
“Guarantors”), in favor of Administrative Agent for the benefit of Guarantied Parties. 
 BACKGROUND.

 Capitalized terms not otherwise defined herein have the meaning specified in the Guaranty. The Guaranty
provides that additional parties may become Guarantors under the Guaranty by execution and delivery of this form of Guaranty Supplement. Pursuant to the provisions of Section 22 of the Guaranty, the undersigned is becoming an Additional
Guarantor under the Guaranty. The undersigned desires to become a Guarantor under the Guaranty in order to induce Guarantied Parties to continue to make credit extensions and accommodations under the Loan Documents, Guarantied Swap Contracts and
Cash Management Documents. 
 AGREEMENT. 
 NOW, THEREFORE, in consideration of the premises and to induce the Lenders to make Revolving Loans, the Swing Line Lender to make Swing Line Loans and the L/C Issuer to issue Letters
of Credit and Guarantied Parties to make financial accommodations under Swap Contracts and Cash Management Documents, the undersigned hereby agrees as follows: 
 SECTION 1. In accordance with the Guaranty, the undersigned hereby becomes a Guarantor under the Guaranty with the same force and effect as if it were an original signatory
thereto as a Guarantor and the undersigned hereby (a) agrees to all the terms and provisions of the Guaranty applicable to it as a Guarantor thereunder and (b) represents and warrants that the representations and warranties made by it as a
Guarantor thereunder are true and correct on and as of the date hereof. Each reference to a “Guarantor” or an “Additional Guarantor” in the Guaranty shall be deemed to include the undersigned. 
 SECTION 2. Except as expressly supplemented hereby, the Guaranty shall remain in full force and effect in accordance
with its terms. 
 SECTION 3. THIS GUARANTY SUPPLEMENT AND THE GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED, THAT ADMINISTRATIVE AGENT AND 
  

	6	 If desired, this paragraph may contain an additional reference to the “Credit Agreement” as it has been amended and restated prior to the date of the guaranty Supplement.

  

 C-18 
 Form of Guaranty 

 
EACH OTHER GUARANTIED PARTY SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 
 SECTION 4. This Guaranty Supplement hereby incorporates by reference the provisions of the Guaranty, which provisions are deemed to be a part hereof, and this Guaranty Supplement shall be deemed to
be a part of the Guaranty. 
 SECTION 5. This Guaranty Supplement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. 
  

	
	REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

  

 C-19 
 Form of Guaranty 

 EXECUTED as of the date above first written. 
  

			
	 [ADDITIONAL GUARANTOR]

		
	 By:
	 	  

	 Print Name:
	 	  

	 Print Title:
	 	  

  

			
	 ACCEPTED BY:

	
	 BANK OF AMERICA, N.A.,
 as Administrative Agent

		
	 By:
	 	  

	 Print Name:
	 	  

	 Print Title:
	 	  

  

 C-20 
 Form of Guaranty 

 EXHIBIT D 
 OPINION MATTERS 
 The matters
contained in the following Sections of the Credit Agreement should be covered by the legal opinion: 
  

	 	•	 	 Section 5.01(a), (b) and (c) 

  

	 	•	 	 Section 5.02 

  

	 	•	 	 Section 5.03 

  

	 	•	 	 Section 5.04 

  

	 	•	 	 Section 5.06 

  

	 	•	 	 Section 5.14(b) 

  

 D-1 
 Opinion Matters 

 EXHIBIT E 
 FORM OF REVOLVING LOAN NOTE 
  

			
	 $                    
	  	            ,     

 FOR VALUE RECEIVED, Texas Industries, Inc., a Delaware corporation
(the “Borrower”), hereby promises to pay to the order of                     (the “Lender”), on the Maturity Date
(as defined in the Second Amended and Restated Credit Agreement referred to below) the principal amount of             Dollars
($            ), or such lesser principal amount of Revolving Loans (as defined in such Credit Agreement) due and payable by the Borrower to the Lender on the Maturity Date under
that certain Second Amended and Restated Credit Agreement, dated as of June 19, 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein
being used herein as therein defined), among the Borrower, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender. 
 The Borrower promises to pay interest on the unpaid principal amount of each Revolving Loan from the date of such Revolving
Loan until such principal amount is paid in full, at such interest rates, and at such times as are specified in the Agreement. All payments of principal of and interest on this Note shall be made to the Administrative Agent for the account of the
Lender in Dollars in immediately available funds at the Administrative Agent’s Office. If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the
date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Agreement. 
 This Note is one of the Revolving Loan Notes referred to in the Agreement, is entitled to the benefits thereof and is subject to optional and mandatory prepayment in whole or in part as provided therein.
This Note is also entitled to the benefits of the Guaranty. Upon the occurrence of one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately
due and payable all as provided in the Agreement. Revolving Loans made by the Lender shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course of business. The Lender may also attach schedules to this
Note and endorse thereon the date, amount, Type and maturity of its Revolving Loans and payments with respect thereto. 
 The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment, protest and demand and, except for notices for which provision is expressly made in the Loan Documents, notice of protest, demand, intent to
accelerate, acceleration, dishonor and non-payment of this Note. 
  

 E-1 
 Form of Revolving Loan Note 

 THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF TEXAS. 
  

			
	TEXAS INDUSTRIES, INC.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 E-2 
 Form of Revolving Loan Note 

 REVOLVING LOANS AND PAYMENTS WITH RESPECT THERETO 
  

													
	Date	  	 Type of Loan
 Made
	  	 Amount of Loan
 Made
	  	 End of Interest
 Period
	  	 Amount of
 Principal or
 Interest Paid
 This Date
	  	 Outstanding
 Principal
 Balance This
 Date
	  	 Notation Made
 By

		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 
		  		  		  		  		  		  	
	 	  	 	  	 	  	 	  	 	  	 	  	 

  

 E-3 
 Form of Revolving Loan Note 

 EXHIBIT F 
 FORM OF REVOLVING LOAN NOTICE 
 Date:
            ,          
 To:
Bank of America, N.A., as Administrative Agent 
 Ladies and Gentlemen: 
 Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of June 19, 2009 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Texas Industries, Inc., a Delaware corporation (the “Borrower”), the Lenders from time to time party
thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender. 
 The
undersigned hereby requests (select one): 
  

			
	  ̈  A Borrowing of Revolving Loans
	  	  ̈  A conversion or continuation of Revolving Loans

  

	 	1.	 On                      (a Business Day).

  

	 	2.	 In the amount of $            . 

  

	 	3.	 Comprised of                     

 [Type of Revolving Loan requested] 
  

	 	4.	 For Eurodollar Rate Loans: with an Interest Period of              months.

 The Revolving Borrowing, if any, requested herein complies with the provisos to the first
sentence of Section 2.01 of the Agreement. 
  

			
	TEXAS INDUSTRIES, INC.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 F-1 
 Form of Revolving Loan Notice 

 EXHIBIT G 
 FORM OF SWING LINE LOAN NOTICE 
 Date:
            ,          
  

			
	 To:
	  	Bank of America, N.A., as Swing Line Lender
		  	Bank of America, N.A., as Administrative Agent

 Ladies and Gentlemen: 
 Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of June 19, 2009 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Texas Industries, Inc., a Delaware corporation (the “Borrower”), the Lenders from time to time party
thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender. 
 The
undersigned hereby requests a Swing Line Loan: 
  

	 	1.	 On                      (a Business Day).

  

	 	2.	 In the amount of $            . 

 The Swing Line Borrowing requested herein complies with the requirements of the provisos to the first sentence of
Section 2.04(a) of the Agreement. 
  

			
	TEXAS INDUSTRIES, INC.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 G-1 
 Form of Swing Line Loan Notice 

 EXHIBIT H 
 FORM OF SWING LINE NOTE 
  

			
	$15,000,000	  	            , 2009

 FOR VALUE RECEIVED, TEXAS INDUSTRIES, INC., a Delaware corporation
(the “Borrower”), hereby promises to pay to the order of BANK OF AMERICA, N.A. (“Swing Line Lender”), on the date when due in accordance with the Second Amended and Restated Credit Agreement referred to below, the
aggregate unpaid principal amount of each Swing Line Loan from time to time made by the Swing Line Lender to the Borrower under that certain Second Amended and Restated Credit Agreement, dated as of June 19, 2009 (as amended, restated extended,
supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among the Borrower, the Lenders from time to time party thereto, and Bank of America,
N.A., as Administrative Agent, L/C Issuer and Swing Line Lender. 
 The Borrower promises to pay interest on the
unpaid principal amount of each Swing Line Loan from the date of such Swing Line Loan until such principal amount is paid in full, at such interest rates and at such times as provided in the Agreement. 
 All payments of principal of and interest on this Note shall be made to the Swing Line Lender in Dollars in immediately
available funds at its Lending Office. 
 If any amount is not paid in full when due hereunder, such unpaid
amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Agreement. 
 This Note is the Swing Line Note referred to in the Agreement, is entitled to the benefits thereof and is subject to
optional and mandatory prepayment in whole or in part as provided therein. This Note is also entitled to the benefits of the Guaranty. Upon the occurrence of one or more of the Events of Default specified in the Agreement, all amounts then remaining
unpaid on this Note shall become, or may be declared to be, immediately due and payable all as provided in the Agreement. Swing Line Loans made by the Swing Line Lender shall be evidenced by one or more loan accounts or records maintained by Swing
Line Lender in the ordinary course of business. The Swing Line Lender may also attach schedules to this Note and endorse thereon the date, amount and maturity of the Swing Line Loans and payments with respect thereto. 
 The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment, protest and demand, and except
for notices for which provision is expressly made in the Loan Documents, notice of protest, demand, intent to accelerate, acceleration, dishonor and non-payment of this Note. 
  

 H-1 
 Form of Swing Line Note 

 THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF TEXAS. 
  

			
	TEXAS INDUSTRIES, INC.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 H-2 
 Form of Swing Line Note 

 SWING LINE LOANS AND PAYMENTS WITH RESPECT THERETO 
  

									
	Date	  	Amount of Loan Made	  	Amount of Principal or
Interest Paid This Date	  	 Outstanding Principal
 Balance This Date
	  	Notation Made By
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 
		  		  		  		  	
	 	  	 	  	 	  	 	  	 

  

 H-3 
 Form of Swing Line Note 

 EXHIBIT I 
 BORROWING BASE CERTIFICATE 
 BANK OF AMERICA 

 BORROWING BASE CERTIFICATE 
 Client: TEXAS INDUSTRIES, INC. 
 Certificate Number: 
 Dates Covered: 
  

				
	 Total Accounts Receivable
	  		
		
	 Ineligible Accounts Receivable
	  		
		  	 	 
		
	 Eligible Accounts Receivable
	  		
		
	 Advance Rate
	  	85	% 
		  	 	 
		
	 Accounts Formula Amount
	  		
		
	 Total Inventory
	  		
		
	 Ineligible Inventory
	  		
		  	 	 
		
	 Eligible Inventory
	  		
	 Advance Rate (lesser of 65% of the Value of Eligible Inventory or 85% of the NOLV Percentage of the Value of Eligible Inventory)

	  		

  

 I-1 
 Borrowing Base Certificate 

				
	 Inventory Formula Amount
	  		
		
	 Total Rolling Stock
	  		
		
	 Ineligible Rolling Stock
	  		
		  	 	 
		
	 Eligible Rolling Stock
	  		
		
	 Advance Rate
	  	85	% 
		  	 	 
		
	 Rolling Stock Formula Amount (not to exceed $30,000,000)
	  		
		  	 	 
		
	 Gross Borrowing Base
	  		
		
	 Inventory Reserve
	  		
		
	 Rent and Charges Reserve (Past Due Amounts Owed to Landlord / Processor)
	  		
		
	 Rent and Charges Reserve (3 Months’ Rent on Leased Locations w/out Lien Waiver)
	  		
		
	 Bank Product Reserve 
	  		
		
	 Tax Reserve 
	  		
		
	 Royalty Reserve 
	  		
		
	 Dilution Reserve (> 5% Dilution on TTM Basis) 
	  		
		
	 Rolling Stock Reserve 
	  		
		
	 Additional Availability Reserves 
	  		
		  	 	 
		
	 Total Availability Reserve 
	  		
		  	 	 
		
	 Net Borrowing Base (Maximum of $200,000,000)
	  		
		  	 	 

  

 I-2 
 Borrowing Base Certificate 

 The foregoing information is delivered to Bank of America, N.A. in accordance with a
Second Amended and Restated Credit Agreement between Texas Industries, Inc., certain financial institutions and Bank of America, N.A. dated June 19, 2009. In my capacity as the
                     of Texas Industries, Inc. (and not in my individual capacity), I hereby certify that the information contained herein is true
and correct as of the dates shown herein. Nothing contained herein shall constitute a waiver, modification or limitation in any of the terms or conditions set forth in the referenced Second Amended and Restated Credit Agreement. 
  

			
	 Prepared by:
	 	  

	 Title:
	 	  

	 Date:
	 	  

  

 I-3 
 Borrowing Base Certificate 

 EXHIBIT J 
 SECURITY AGREEMENT 
 Filed Separately 
  

 J-1 
 Security Agreement

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