Document:

Exhibit 10.2

FIRST AMENDED AND RESTATED CREDIT AGREEMENT

dated December 18, 2006

among

HELMERICH & PAYNE INTERNATIONAL DRILLING CO.

HELMERICH & PAYNE, INC.

and

BANK OF OKLAHOMA, NATIONAL ASSOCIATION

 

FIRST AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIRST AMENDED
AND RESTATED CREDIT AGREEMENT (this “Agreement”) is made and entered
into effective as of December 18, 2006 (the “Effective Date”) by and
among HELMERICH & PAYNE INTERNATIONAL DRILLING CO., a Delaware corporation
(the “Borrower”), HELMERICH & PAYNE, INC., a Delaware corporation
(the “Parent”), and BANK OF OKLAHOMA, NATIONAL ASSOCIATION, (the “Lender”),
with reference to the following:

A.            The Borrower, the
Parent, the Lender (as lender and administrative agent) are parties to that certain
Credit Agreement dated July 16, 2002, as amended by (i) that certain First
Amendment to Credit Agreement dated July 15, 2003, (ii) that certain Second
Amendment to Credit Agreement dated May 4, 2004, (iii) that certain Third
Amendment to Credit Agreement dated as of July 13, 2004, (iv) that certain
Fourth Amendment to Credit Agreement dated as of July 12, 2005, (v) that
certain Fifth Amendment to Credit Agreement dated as of July 11, 2006, and (vi)
that certain Letter Agreement dated as of November 16, 2006 (as amended, the “Existing
Credit Agreement”), pursuant to which the Lender established the “Facility”
in favor of the Borrower.

B.            Contemporaneously with
the execution of this Agreement, the Borrower and the Parent are entering into
that certain Credit Agreement dated December 18, 2006 with Wells Fargo Bank,
National Association, as administrative agent, issuing lender and swingline
lender, and the lenders described therein, pursuant to which a new $400,000,000
Senior Unsecured Revolving Credit Facility (the “Senior Credit Facility”)
has been established in favor of the Borrower.

C.            In connection with the
establishment of the Senior Credit Facility, the Borrower has requested that
the Lender (i) reduce the amount available under the “Facility” from
$50,000,000 to $5,000,000 as well as the sub-limits relating thereto for the “Commitments,”
(ii) amend the maturity dates of the Facility, and (iii) modify the Existing
Credit Agreement in certain other respects.

D.            The Lender is willing
to reduce the amount available under the “Facility” and the “Commitments,”
amend the maturity dates of the Facility, and modify the Existing Credit
Agreement in certain other respects, subject to the terms and conditions of
this Agreement.

NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree
as follows:

 

ARTICLE I

DEFINITIONS

1.1           Definitions.  As used in this Agreement, the following
terms have the meanings specified below, unless the context otherwise requires:

“Affiliate” means, with respect to
any Person, any other Person (i) directly or indirectly controlling or
controlled by or under direct or indirect common control with such Person or
(ii) directly or indirectly owning or holding five percent (5%) or more of the
Capital Stock in such Person.  For
purposes of this definition, “control” means when used with respect to any
Person, the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise.

“Agreement” (and such terms as “herein,”
“hereof,” “hereto,” “hereby,” “hereunder” and the like) means and refers to
this Credit Agreement, together with all exhibits and schedules attached
hereto, as it may be amended, modified, restated or supplemented from time to
time.

“Bankruptcy Code” means the United
States Bankruptcy Code (Title 11 of the United States Code), as amended,
modified, succeeded or replaced from time to time.

“Bankruptcy Event” means, with
respect to any Person, the occurrence of any of the following with respect to
such Person: (i) a court or governmental agency having jurisdiction in the
premises shall enter a decree or order for relief in respect of such Person in
an involuntary case under the Bankruptcy Code or any other applicable
insolvency or other similar Law now or hereafter in effect, or appointing a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of such Person or for any substantial part of its Property or
ordering the winding up or liquidation of its affairs; or (ii) there shall be
commenced against such Person an involuntary case under the Bankruptcy Code or
any other applicable insolvency or other similar Law now or hereafter in
effect, or any case, proceeding or other action for the appointment of a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of such Person or for any substantial part of its Property or for the
winding up or liquidation of its affairs, and such involuntary case or other
case, proceeding or other action shall remain undismissed, undischarged or
unbonded for a period of 90 consecutive days; or (iii) such Person shall
commence a voluntary case under the Bankruptcy Code or any other applicable
insolvency or other similar Law now or hereafter in effect, or consent to the
entry of an order for relief in an involuntary case under any such law, or
consent to the appointment or taking possession by a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of such Person
or for any substantial part of its Property or make any general assignment for
the benefit of creditors; or (iv) such Person shall be unable to pay or shall
fail to pay, or shall admit in writing its inability to pay, its debts
generally as they become due.

“Business Day” means a day other than
a Saturday, Sunday or other day on which commercial banks in Tulsa, Oklahoma,
are authorized or required by law to be closed.

“Capital Stock” means (i) in the case
of a corporation, capital stock, (ii) in the case of a partnership, partnership
interests (whether general or limited), (iii) in the case of a limited

 

liability
company, membership interests, (iv) in the case of an association or other
business entity, shares, interests, participations, rights or other equivalents
(however designated) of capital stock, and (v) any other interest or
participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing Person.

“Charter Documents” means, with
respect to any Credit Party, its Articles or Certificate of Incorporation,
Articles of Organization or other similar publicly-filed organizational documents,
and its bylaws, partnership agreement, operating agreement and other similar
internal governance documents, as the same may be amended or modified from time
to time (subject to the terms of this Agreement).

“Commitment Period” means the period
from and including the Effective Date to but not including the earlier of (i)
the Revolving Commitment Termination Date, or (ii) the date on which the
Revolving Commitments terminate in accordance with the provisions of this
Agreement.

“Commitments” means any of the Revolving
Commitment or the LOC Commitment.

“Committed Amount” means any of the
Revolving Committed Amount or the LOC Committed Amount, as applicable.

“Consolidated Group” means the Parent
and its Subsidiaries.

“Contractual Obligation” means, as to
any Person, any provision of any security issued or guaranteed by such Person
or of any material agreement, instrument or undertaking to which such Person is
a party or by which it or any of its Property is bound.

“Credit Documents” means a collective
reference to this Agreement, the Note, the Subsidiary Guaranty, the LOC
Documents, and all other related agreements and documents issued or delivered
hereunder or thereunder or pursuant hereto or thereto (in each case as the same
may be amended, modified, restated, supplemented, extended, renewed or replaced
from time to time), and “Credit Document”
means any one of them.

“Credit Parties” means, collectively,
the Borrower and the Parent, and “Credit Party”
means any one of them.

“Default” means any event, act or
circumstance which, with the giving of notice or the lapse of time, or both,
would constitute an Event of Default.

“ERISA” means the Employee Retirement
Income Security Act of 1974, as amended, and any successor statute thereto, as
interpreted by the rules and regulations thereunder, all as the same may be in
effect from time to time.

“Event of Default” has the meaning
assigned to such term in Section 9.1.

 

“Extension of Credit” means, as to
the Lender, the making of a Loan or the issuance or extension of a Letter of
Credit.

“Facility” means the credit facility
established by the Lender under Article II.

“Fees” means all fees payable
pursuant to Section 3.2.

“GAAP” means generally accepted
accounting principles in the United States applied on a consistent basis and subject
to the terms of Section 1.3.

“Governmental Authority” means any
federal, state, local or foreign court or governmental agency, authority,
instrumentality or regulatory body.

“IRC” means the Internal Revenue Code
of 1986, as amended, and any successor statute thereto, as interpreted by the
rules and regulations issued thereunder, in each case as in effect from time to
time.

“Interest Payment Date” means the
last day of each March, June, September and December, beginning December 31,
2006, and the Revolving Commitment Termination Date, as applicable.

“Letter of Credit” means any standby
letter of credit issued by the Lender for the account of the Borrower in
accordance with the terms of Section 2.1(b), including the  outstanding Letters of Credit listed on
Schedule 2.1(b) attached hereto.

“Letter of Credit Fee” has the
meaning assigned to such term in Section 3.2(a).

“Lien” means any mortgage, pledge,
hypothecation, assignment, deposit arrangement, security interest, encumbrance,
lien (statutory or otherwise), preference, priority or charge of any kind
(including any agreement to give any of the foregoing, any conditional sale or
other title retention agreement, any financing or similar statement or notice
filed under the UCC or other similar recording or notice statute, and any lease
in the nature thereof).

“Loan” or “Loans”
means the Revolving Loans to be made pursuant to Section 2.1(a).

“LOC Commitment” means the commitment
of the Lender to issue Letters of Credit in an aggregate face amount at any
time outstanding (together with the amounts of any unreimbursed drawings
thereon) of up to the LOC Committed Amount.

“LOC Committed Amount” means the sum
of $5,000,000.

“LOC Documents” means, with respect
to any Letter of Credit, such Letter of Credit, any amendments thereto, any
documents delivered in connection therewith, any application therefor, and any
agreements, instruments, guarantees or other documents (whether general in
application or applicable only to such Letter of Credit) governing or providing
for the rights and obligations of the parties concerned or at risk.

 

“LOC Obligations” means, at any time,
the sum of (i) the maximum amount which is, or at any time thereafter may
become, available to be drawn under Letters of Credit then outstanding, assuming
compliance with all requirements for drawings referred to in such Letters of
Credit plus (ii) the aggregate amount of all drawings under Letters of
Credit honored by the Lender but not theretofore reimbursed.

“Material Adverse Effect” means a
material adverse effect on or material impairment of (i) the validity or
enforceability of any Credit Document or the rights, benefits or remedies of
the Lender under any Credit Document, (ii) the condition (financial or
otherwise), operations, business, assets, liabilities or prospects of the
Consolidated Group taken as a whole, or (iii) the ability of the Credit Parties
to perform or fulfill their obligations under the Credit Documents.

“Note” means the promissory note of
the Borrower in favor of the Lender evidencing the Loans, in substantially the
form attached as Exhibit “A”, as such promissory note may be amended,
modified, supplemented, extended, renewed or replaced from time to time.

“Notice of Borrowing” means a written
request for a borrowing, in substantially the form of Exhibit “B.”

“Notice of Request for Letter of Credit”
means a written request for the issuance or extension of a Letter of
Credit, in substantially the form of Exhibit “C.”

“Obligations” means, collectively,
the Revolving Loans and the LOC Obligations, including principal, interest,
fees, indemnities and other amounts payable under the Credit Documents, and
whether or not allowed as a claim in any bankruptcy proceeding.

“Person” means any individual,
partnership, joint venture, firm, corporation, limited liability company,
association, trust or other enterprise (whether or not incorporated) or any
Governmental Authority.

“Plan” means any employee benefit
plan (as defined in Section 3(3) of ERISA) which is covered by ERISA and with
respect to which any member of the Consolidated Group or any ERISA Affiliate is
(or, if such plan were terminated at such time, would under Section 4069 of
ERISA be deemed to be) an “employer” within the meaning of Section 3(5) of
ERISA.

“Prime Rate” means the index or
reference rate of interest from time to time announced by BOK Financial
Corporation (the parent company of the Lender), in its sole discretion, as the “BOKF
National Prime Rate,” adjusted as of the effective date of any change
therein.  The Prime Rate is not
necessarily the lowest rate charged by the Lender on its loans and is set by
BOKF Financial Corporation in its sole discretion.  If the Prime Rate becomes unavailable prior
to the maturity of the Loan, the Lender may designate a substitute index rate
after notifying the Borrower.

“Property” means any kind of property
or asset, whether real, personal or mixed and whether tangible or intangible,
including any interest therein.

 

“Requirement of Law” means, as to any
Person, any requirement or provision of the Charter Documents of such Person,
or of any law, statute, rule, regulation, code or ordinance, or of any
order, decree, judgment, injunction or
other determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or to which
any of its material Properties is subject.

“Revolving Committed Amount” means
the sum of $5,000,000.00.

“Revolving Commitment” means the
commitment of the Lender to make Revolving Loans in an aggregate principal amount
at any time outstanding of up to the Revolving Committed Amount.

“Revolving Commitment Termination Date”
means the date which is 364 days following the Effective Date.

“Revolving Loans” has the meaning
assigned to such term in Section 2.1(a).

“Revolving Obligations” means,
collectively, the Revolving Loans and the LOC Obligations.

“SEC” means the Securities and
Exchange Commission, or any agency which succeeds to its functions.

“Senior Credit Facility Loan Agreement”
means that certain Credit Agreement dated December 18, 2006, by and among the
Borrower, the Parent, Wells Fargo Bank, National Association, as Administrative
Agent, Issuing Lender and Swingline Lender, and the lenders party thereto, as
the same may be amended, modified or supplemented from time to time.

“Subsidiary” means, as to any Person
at any time, (i) any corporation more than 50% of whose Capital Stock of any
class or classes having by the terms thereof ordinary voting power to elect a
majority of the directors of such corporation (irrespective of whether or not
at such time, any class or classes of such corporation shall have or might have
voting power by reason of the happening of any contingency) is at such time
owned by such Person directly or indirectly through Subsidiaries, and (ii) any
partnership, association, joint venture or other entity of which such Person
directly or indirectly through Subsidiaries owns at such time more than 50% of
the Capital Stock; provided that no Plan shall be considered to be a Subsidiary
of the Parent or the Borrower.

1.2           Construction and
Interpretation. For purposes of this Agreement, the following rules of construction
shall apply, unless elsewhere specifically indicated to the contrary: (i) all
terms defined herein in the singular shall include the plural, as the context
requires, and vice-versa; (ii) pronouns stated in the neuter gender shall
include the masculine, the feminine and the neuter genders; (iii) for purposes
of the computation of periods of time hereunder, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding”; (iv)
the term “or” is not exclusive; (v) the term “including” (or any form thereof)
shall not be limiting or exclusive; (vi) references to article and sections are
references to the respective articles

 

and sections of
this Agreement, and references to exhibits and schedules are references to the
exhibits and schedules attached to this Agreement; (vii) all references to this
Agreement or any of the other Credit Documents shall include any and all
modifications, amendments or supplements hereto or thereto and any and all
renewals and extensions hereof or thereof; and (viii) references to specific
provisions or sections of statutes and other laws (such as the Bankruptcy Code,
ERISA and the IRC) shall be construed also to refer to any successor provisions
or sections.

1.3           Accounting Terms.
Except as otherwise expressly provided herein, all accounting terms used herein
shall be interpreted, and any financial statements and certificates and reports
as to financial matters required to be delivered to the Lender hereunder shall
be prepared, in accordance with GAAP applied on a consistent basis.

ARTICLE
II

TERMS OF THE CREDIT FACILITY

2.1           Commitments.

(a)           Revolving Commitment.  During the Commitment Period, and subject to
the terms and conditions of this Agreement, the Lender agrees to make revolving
loans (the “Revolving Loans”) to the Borrower from time to time in
amounts not to exceed $5,000,000. At no time shall the aggregate principal
amount of Revolving Loans outstanding hereunder, together with all other
Revolving Obligations then outstanding, exceed $5,000,000. The Revolving Loans
may be repaid and reborrowed in accordance with the provisions hereof. The
Revolving Commitment of the Lender shall expire on the Revolving Commitment
Termination Date.

(b)           Existing Letters of Credit Sublimit
Commitment. During the Commitment Period, and subject to the terms and
conditions of this Agreement and the LOC Documents, if any, the Lender agrees
to continue the outstanding Letters of Credit set forth on Schedule 2.1(b)
attached hereto; provided that the aggregate amount of LOC Obligations
shall not at any time exceed the LOC Committed Amount. On and after the
Effective Date, the renewal or extension of any outstanding Letter of Credit
shall be made under the Senior Credit Facility. 
Accordingly, no new Letters of Credit will be issued and no renewals or
extensions shall be made hereunder for outstanding Letters of Credit.

2.2           Method of Borrowing;
Use of Proceeds.

(a)           Notice of Borrowing.  The Borrower shall request a Revolving Loan
by delivering a written Notice of Borrowing (or by giving telephonic notice
promptly confirmed by a Notice of Borrowing in writing) to the Lender not later
than 11:00 a.m. (Tulsa, Oklahoma time) on the Business Day prior to the date of
the requested borrowing. Each Notice of Borrowing shall be irrevocable and
shall specify (A) that a Revolving Loan is requested, (B) the date of the
requested borrowing (which shall be a Business Day), and (C) the aggregate
principal amount to be borrowed.

 

(b)           Minimum Amounts. Each request for a
Revolving Loan (other than a deemed request under Section 2.4(a)) shall be in
the minimum principal amount of $5,000 (or the remaining Revolving Committed Amount,
if less than $5,000), or in an integral multiple of $5,000 in excess thereof.

(c)           Use of Proceeds. Proceeds of the
Revolving Loans shall be used by the Borrower for working capital and general
corporate purposes of the Consolidated Group, including capital expenditures.

2.3           Note. The Loans
from time to time outstanding shall be evidenced by the Note, which shall be
made, executed and delivered by the Borrower payable to the order of the Lender
on or before the Effective Date.

2.4           Additional Provisions
Relating to Letters of Credit.

(a)           Reimbursement.  In the event of any drawing under any Letter
of Credit, the Lender will promptly notify the Borrower. Unless the Borrower
shall immediately notify the Lender that the Borrower intends to otherwise reimburse
the Lender for such drawing, the Borrower shall be deemed to have requested
that the Lender make a Revolving Loan in the amount of the drawing, the
proceeds of which will be used to satisfy the related reimbursement
obligations. The Borrower promises to reimburse the Lender on the day of
drawing under any Letter of Credit (either with the proceeds of a Loan obtained
hereunder or otherwise) in same day funds. If the Borrower shall fail to
reimburse the Lender as provided hereinabove, the unreimbursed amount of such
drawing shall bear interest at a per annum rate equal to the Prime Rate minus
1.75% (175 basis points). The Borrower’s reimbursement obligations hereunder
shall be absolute and unconditional under all circumstances irrespective of any
rights of setoff, counterclaim or defense to payment the Borrower may claim or
have against the Lender, the beneficiary of the Letter of Credit drawn upon or
any other Person, including any defense based on any failure of the Borrower to
receive consideration or the legality, validity, regularity or unenforceability
of the Letter of Credit.

(b)           Terms of Letters of Credit.
Notwithstanding any statement in an outstanding Letter of Credit that such
Letter of Credit was issued for the account of a Credit Party, the Borrower
shall be the actual account party for all purposes of this Agreement for such
Letter of Credit and such statement shall not affect the Borrower’s
reimbursement obligations hereunder with respect to such Letter of Credit. Any
Letters of Credit may be subject to The Uniform Customs and Practice for
Documentary Credits, as published as of the date of issue by the International
Chamber of Commerce.

(c)           Indemnification; Nature of Lender’s
Duties. In addition to its other obligations under this Section 2.4, the
Borrower hereby agrees to protect, indemnify, pay and save the Lender harmless
from and against any and all claims, demands, liabilities, damages, losses,
costs, charges and expenses (including reasonable attorneys’ fees) that the
Lender may incur or be subject to as a consequence, direct or indirect, of (A)
the

 

issuance of any Letter of Credit or (B) the failure of the Lender to
honor a drawing under a Letter of Credit as a result of any act or omission,
whether rightful or wrongful, of any Governmental Authority (all such acts or
omissions, herein called “Government Acts”). As between the Borrower and
the Lender, the Borrower shall assume all risks of the acts, omissions or
misuse of any Letter of Credit by the beneficiary thereof.  The Lender shall not be responsible: (A) for
the form, validity, sufficiency, accuracy, genuineness or legal effect of any
document submitted by any party in connection with the application for and
issuance of any Letter of Credit, even if it should in fact prove to be in any
or all respects invalid, insufficient, inaccurate, fraudulent or forged; (B)
for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign any Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, that may prove to be
invalid or ineffective for any reason; (C) for errors, omissions, interruptions
or delays in transmission or delivery of any messages, by mail, cable,
telegraph, telex or otherwise, whether or not they be in cipher; (D) for any
loss or delay in the transmission or otherwise of any document required in
order to make a drawing under a Letter of Credit or of the proceeds thereof;
and (E) for any consequences arising from causes beyond the control of the Lender,
including any Government Acts. None of the above shall affect, impair, or
prevent the vesting of the Lender’s rights or powers hereunder. In furtherance
and extension and not in limitation of the specific provisions set forth in
this subsection (c), any action taken or omitted by the Lender, under or in
connection with any Letter of Credit or the related certificates, if taken or
omitted in good faith, shall not put the Lender under any resulting liability
to the Borrower or any other Credit Party.  It is the intention of the parties that this
Agreement shall be construed and applied to protect and indemnify the Lender
against any and all risks involved in the issuance of the Letters of Credit,
all of which risks are hereby assumed by the Borrower, including any and all
Government Acts. The Lender shall not, in any way, be liable for any failure by
the Lender or anyone else to pay any drawing under any Letter of Credit as a
result of any Government Acts or any other cause beyond the control of the Lender.
Nothing in this subsection (c) is intended to limit the reimbursement
obligations of the Borrower contained in subsection (a) above. The obligations
of the Borrower under this subsection (c) shall survive the termination of this
Agreement. No act or omissions of any current or prior beneficiary of a Letter
of Credit shall in any way affect or impair the rights of the Lender to enforce
any right, power or benefit under this Agreement. Notwithstanding anything to
the contrary contained in this subsection (e), the Borrower shall have no
obligation to indemnify the Lender in respect of any liability incurred by the
Lender (A) arising out of the gross negligence or willful misconduct of the
Lender, as determined by a court of competent jurisdiction, or (B) caused by
the Lender’s failure to pay under any Letter of Credit after presentation to it
of a request strictly complying with the terms and conditions of such Letter of
Credit, as determined by a court of competent jurisdiction, unless such payment
is prohibited by any law, regulation, court order or decree.

(d)           Conflict with LOC Documents.  Solely as among the parties hereto, in the
event of any conflict between this Agreement and any LOC Document (including
any letter of credit application), this Agreement shall control.

 

2.5           Records of Loans.
The Lender’s records shall be prima facie evidence of the existence and amounts
of the obligations of the Borrower therein recorded; provided, however,
that the failure of the Lender to maintain any such records, or any error
therein, shall not in any manner affect the obligation of the Borrower to repay
the Loans and other obligations owing to the Lender.

ARTICLE III

INTEREST, FEES AND REPAYMENT

3.1           Interest.

(a)           Interest Rate.  The Loans hereunder shall bear interest at a
per annum rate, payable in arrears on each applicable Interest Payment Date (or
at such other times as may be specified herein), equal to the sum of the Prime
Rate minus 1.75% (175 basis points).

(b)           Default Rate.
Upon the occurrence and during the continuation of any Event of Default, the
principal of and, to the extent permitted by law, interest on the Loans and any
other amounts owing hereunder or under the other Credit Documents shall bear
interest, payable on demand, at a per annum rate 2% greater than the rate which
would otherwise be applicable (or if no rate is applicable, whether in respect
of interest, fees or other amounts, then the Prime Rate plus 0.25%).

3.2           Letter of Credit
Fees.

(i)            Letter of Credit Fee. In
consideration of the issuance of each Letter of Credit hereunder, the Borrower
promises to pay to the Lender a fee (the “Letter of Credit Fee”) on the
actual daily maximum amount available to be drawn under each outstanding Letter
of Credit from the date of its issuance to the date of its stated expiration,
computed at a per annum rate for each day equal to 0.35% (35 basis points). The
Letter of Credit Fee shall be payable in advance upon the issuance of each
Letter of Credit; provided, however, that if any Letter of Credit has a
stated expiration of more than one year from the date of issuance (or provides
for automatic renewals beyond a period of one year from the date of issuance),
the Letter of Fee shall be payable in advance upon issuance for the first year
and on each anniversary date for each subsequent year thereafter.

(ii)           Additional Fees. In addition to the
Letter of Credit Fee payable pursuant to clause (i) above, the Borrower
promises to pay to the Lender the customary charges from time to time of the
Lender with respect to the issuance, amendment, transfer, administration,
cancellation and conversion of, and drawings under, each Letter of Credit.

(iii)          Default Fee. Upon the occurrence and
during the continuation of any Event of Default, the Letter of Credit Fee shall
accrue at a per annum rate 2% greater than the rate which would otherwise be
applicable.

 

3.3           Prepayments. The
Loans may be repaid in whole or in part without premium or penalty and partial
prepayments shall be minimum principal amounts of $5,000, and in integral multiples
of $5,000 in excess thereof. Amounts prepaid on the Revolving Obligations may,
subject to the terms and conditions hereof, be reborrowed.

3.4           Maturity.  The principal balance of all outstanding
Revolving Loans shall be due and payable in full in the Revolving Commitment
Termination Date.

3.5           Payments. Except
as otherwise specifically provided herein, all payments hereunder shall be made
to the Lender, at the address specified in Section 12.1, in Dollars and in
immediately available funds, without setoff, deduction, counterclaim or
withholding of any kind, not later than 11:00 a.m. (Tulsa, Oklahoma time) on
the date when due. Payments received after such time shall be deemed to have
been received on the next succeeding Business Day.  The Lender may (but shall not be obligated
to) debit the amount of any such payment which is not made by such time to any
ordinary deposit account of the Borrower maintained with the Lender (with
notice to the Borrower). The Borrower shall, at the time it makes any payment
under this Agreement, specify to the Lender the Loans, LOC Obligations, Fees,
interest or other amounts payable by the Borrower hereunder to which such
payment is to be applied (and in the event that it fails so to specify, or if
such application would be inconsistent with the terms hereof, the Lender shall
distribute such payment in such manner as the Lender may determine to be
appropriate in respect of obligations owing by the Borrower hereunder).  Whenever any payment hereunder shall be
stated to be due on a day which is not a Business Day, the due date thereof
shall be extended to the next succeeding Business Day (subject to accrual of
interest and Fees for the period of such extension).

3.6           Computations of
Interest and Fees. Except as expressly provided otherwise herein, all
computations of interest and fees shall be made on the basis of actual number
of days elapsed over a year of 360 days. Interest shall accrue from and include
the date of borrowing, but exclude the date of payment.

3.7           Maximum Lawful
Interest Rate.  It is not the
intention of the Lender or the Borrower to violate the laws of any applicable
jurisdiction relating to usury or other restrictions on the maximum lawful
interest rate. The Credit Documents and all other agreements between the
Borrower and the Lender, whether now existing or hereafter arising and whether
written or oral, are hereby limited so that in no event shall the interest paid
or agreed to be paid to the Lender for the use, forbearance or detention of
money loaned, or for the payment or performance of any covenant or obligation
contained herein or in any other Credit Document, exceed the maximum amount
permissible under applicable law. If from any circumstances whatsoever
fulfillment of any provision hereof or of any other Credit Document, at the
time the performance of such provision shall be due, shall involve transcending
the limit of validity prescribed by law, then, ipso facto,
the obligation to be fulfilled shall be reduced to the limit of such validity.
If from any such circumstances the Lender should ever receive anything of value
deemed interest under applicable law which would exceed interest at the highest
lawful rate, such excessive interest shall be applied to the reduction of the
principal amount owing hereunder, and not to the payment of interest, or if
such excessive interest exceeds any unpaid balance of principal, such excess
shall be

 

refunded to the
Borrower. All sums paid or agreed to be paid to the Lender for the use, forbearance
or detention of monies advances under the Facility shall, to the extent
permitted by applicable law, be amortized, prorated, allocated and spread
throughout the full term of the Obligations until payment in full so that the
rate of interest on account of the Obligations is uniform throughout the term
thereof. This Section 3.6 shall control every other provision of the Credit Documents
and all other agreements between the Lender and the Borrower contemplated
thereby.

ARTICLE
IV

[INTENTIONALLY OMITTED]

ARTICLE V

CLOSING; CONDITIONS PRECEDENT

5.1           Conditions to
Effective Date. The obligation of the Lender to continue the Facility is
subject to the Borrower’s satisfaction of the following conditions precedent at
or as of the Effective Date (in each case in form and substance acceptable to
the Lender, unless otherwise specified):

(a)           Executed Credit
Documents. Receipt by the Lender of the Credit Documents, including this
Agreement and the Note, each duly executed by an appropriate officer of each of
the parties thereto.

(b)           Financial Information.
Receipt by the Lender of such financial information regarding the Borrower and
the Consolidated Group as may be requested by, and in each case in form and
substance satisfactory to, the Lender, and receipt by the “Administrative Agent”
under the Senior Credit Facility Loan Agreement of any of the information
otherwise required to be delivered pursuant thereto.

(c)           Corporate Documents.
Receipt by the “Administrative Agent” under the Senior Credit Facility Loan
Agreement of copies of any Charter Documents, bylaws, resolutions, certificates
of good standing (as to existence or its equivalent) and incumbency
certificates required of any of the Credit Parties pursuant to the Senior
Credit Facility Loan Agreement.

(d)           Certificate of Chief
Financial Officer.  A certificate,
signed by the chief financial officer of the Parent, stating that, as of the
Effective Date and to the best of such officer’s knowledge, (i) no Default or
Event of Default has occurred and is continuing, (ii) the representations and warranties
made by the Borrower and the Parent in the Senior Credit Facility Loan
Agreement are true and correct, and (iii) September 30, 2006, there has been no
circumstance, development or event which has had or could reasonably be
expected to have a Material Adverse Effect.

(e)           Fees and Expenses.  Payment by the Credit Parties of all fees and
expenses owed by them to the Lender (including reasonable fees and expenses of
counsel).

 

(f)            Other.  Receipt by the Lender of such other
documents, instruments, agreements or information as reasonably requested by
the Lender.

In addition,
there shall not have occurred or become known any material adverse change or
any condition or event that could reasonably be expected to result in a
material adverse change in the business, operations, financial condition,
liabilities (contingent or otherwise) or prospects of the Consolidated Group
taken as a whole since the dates of the latest financial information furnished
to the Lender.

5.2           Conditions to All
Extensions of Credit. The obligation of the Lender to make any Extension of
Credit hereunder is subject to the satisfaction of the following additional
conditions precedent on the date of making such Extension of Credit (in
addition to the conditions set forth in Article II):

(a)           Representations and
Warranties.  The representations and
warranties made by the Borrower and the Parent herein or by the Credit Parties
in any other Credit Documents or which are contained in any certificate
furnished at any time under or in connection herewith shall be true and correct
in all material respects on and as of the date of such Extension of Credit as
if made on and as of the date of such extension or such request, as applicable
(except for those which expressly relate to an earlier specified date).

(b)           No Default or Event
of Default.  No Default or Event of
Default shall have occurred and be continuing on such date or after giving
effect to the Extension of Credit to be made on such date and the application
of the proceeds thereof unless such Default or Event of Default shall have been
waived in accordance with this Agreement.

(c)           Bankruptcy or
Insolvency. No Bankruptcy Event shall have occurred by or with respect to
the Borrower, the Parent or any of the Parent’s Subsidiaries.

(d)           No Material Adverse
Effect.  No circumstance, event or
condition shall have occurred or be existing which could reasonably be expected
to have a Material Adverse Effect.

Each
request for an Extension of Credit (including extensions) and each acceptance
by the Borrower of an Extension of Credit (including extensions) shall be
deemed to constitute a representation and warranty by the Borrower as of the
date of such Extension of Credit that the applicable conditions in subsections
(a), (b), (c) and (d) of this Section 5.2 have been satisfied.

ARTICLE
VI

REPRESENTATIONS AND WARRANTIES

6.1           Reaffirmation and
Incorporation. The Borrower and the Parent hereby jointly and severally
confirm that all representations and warranties made by either of them in the
Senior Credit Facility Loan Agreement are, and on the Effective Date will be,
true and correct. All representations and warranties of the Borrower and the
Parent contained in the Senior Credit Facility

 

Loan Agreement are
hereby jointly and severally remade and restated as the date hereof and are
incorporated herein by reference as if fully set forth herein.

6.2           Additional
Representations and Warranties. In addition to all other representations
and warranties set forth or incorporated by reference in this Agreement, the
Borrower and the Parent hereby jointly and severally represent and warrant to
the Lender that:

6.2.2            Authorization.
Each of the Credit Parties has the corporate or other necessary organizational
power and authority, and the legal right, to make, deliver and perform the
Credit Documents to which it is a party and has taken all necessary corporate
or other action to authorize the execution, delivery and performance by it of
the Credit Documents to which it is a party. 
No consent or authorization of, filing with, notice to or other act by
or in respect of, any Governmental Authority or any other Person is required in
connection with acceptance of Extensions of Credit or the making of the guaranties
hereunder or with the execution, delivery or performance of any Credit
Documents by the Credit Parties (other than those which have been obtained,
such filings as are required by the SEC and to fulfill other reporting requirements
with Governmental Authorities) or with the validity or enforceability of any
Credit Document against the Credit Parties.

6.2.2            Enforceability.  Each Credit Document to which it is a party
constitutes a legal, valid and binding obligation of such Credit Party
enforceable against such Credit Party in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether enforcement
is sought by proceedings in equity or at law).

6.2.3            No Legal Bar.
The execution, delivery and performance of the Credit Documents, the borrowings
hereunder and the use of the Extensions of Credit will not violate any
Requirement of Law or any Contractual Obligation of any member of the Consolidated
Group (except those as to which waivers or consents have been obtained and
those which could not reasonably be expected to have a Material Adverse
Effect), and will not result in, or require, the creation or imposition of any
Lien on any of its respective properties or revenues pursuant to any
Requirement of Law or Contractual Obligation. No member of the Consolidated
Group is in default under or with respect to any of its Contractual Obligations
in any respect which has had or could reasonably be expected to have a Material
Adverse Effect.

6.2.4            No Material
Litigation and Disputes. No unsealed litigation or, to the best knowledge
of the Credit Parties, claims, investigation, sealed litigation or proceeding
of or before any arbitrator or Governmental Authority is pending or, to the
best knowledge of the Credit Parties, threatened by or against, any members of
the Consolidated Group or against any of their respective properties or
revenues which (a) relate to the Credit Documents or any of the transactions
contemplated hereby or thereby or (b) if adversely determined, could, after
giving effect to any applicable insurance, reasonably be expected to have a
Material Adverse Effect.

 

ARTICLE
VII

AFFIRMATIVE COVENANTS

So long as this Agreement is in effect or any
amounts payable hereunder or under any other Credit Document shall remain outstanding or any Letter of Credit is outstanding, and
until all of the Commitments hereunder shall have terminated, the Borrower and the Parent hereby jointly and severally
agree to perform, observe and comply with, or cause to be performed,
observed and complied with, all of the affirmative covenants set forth in Article V of the Senior Credit Facility Loan Agreement
(whether or not the Senior Credit Facility Loan Agreement shall then be in effect),
all of which are incorporated herein by this reference as if fully set forth
herein, In addition, the Borrower and the
Parent hereby jointly and severally agree as follows:

7.1           Further Assurances.  The Credit Parties will, from time to time,
promptly cure any defects or omissions in the execution and delivery of, or the
compliance with this Agreement and the documents signed pursuant to this
Agreement, or the conditions described herein, including the execution and delivery
of additional documents reasonably requested by the Lender.

7.2           Performance of
Obligations. The Borrower will pay the Note according to the reading, tenor
and effect thereof and will do and perform every act and discharge all of the
obligations provided to be performed and discharged under this Agreement and
all other Credit Documents to which it is a party at the time or times and in
the manner therein specified.

7.3           Reimbursement of
Expenses.  The Borrower and the
Parent will pay all reasonable and customary out-of-pocket expenses incurred by
the Lender in connection with the negotiation and preparation of this Agreement
and the other Credit Documents and the consummation of the transactions herein
contemplated, including all reasonable fees and expenses of the Lender’s
counsel. Upon the occurrence of an Event of Default, the Borrower will, from
time to time within 10 days after a request made by the Lender, reimburse the
Lender for all amounts expended, advanced or incurred by the Lender to satisfy
any obligation of the Borrower under this Agreement or any other Credit
Documents, or to collect upon the Note or any of the Obligations, or to enforce
the rights of Lender under this Agreement and any other Credit Documents, which
amounts will include all court costs, bonds, reasonable attorneys’ fees,
reasonable fees of auditors and accountants, and investigation expenses
reasonably incurred by the Lender in connection with any such matters, together
with interest at the Default Rate on each such amount from the date the same is
due and payable to the Lender until the date it is repaid to the Lender.

ARTICLE
VIII

NEGATIVE COVENANTS

So long
as this Agreement is in effect or any amounts payable hereunder or under any
other Credit Document shall remain outstanding or any Letter of Credit is outstanding, and until all of the
Commitments hereunder shall have terminated, the Borrower and the Parent hereby jointly and severally agree to
perform, observe and comply with, or cause to be performed, observed and
complied with, all of the negative covenants set forth in Article VI of the Senior Credit Facility

 

Loan Agreement (whether or not the Senior Credit Facility Loan
Agreement shall then be in effect), all of which are incorporated herein by
this reference as if fully set forth herein.

ARTICLE
IX

EVENTS OF DEFAULT

9.1           Events
of Default. An Event of Default shall
exist upon the occurrence of any of the
following specified events (each an “Event of Default”):

(a)           Non-Payment.
There shall occur:

(i)            a default in the payment when due of
principal on any of the Loans; or

(ii)           a default in the payment when due of
any  interest on any of the Loans, or of
any reimbursement obligations arising from drawings under Letters of Credit, or
of any Fees or other amounts owing hereunder, under any of the other Credit
Documents or in connection herewith or therewith, and such default shall
continue unremedied for a period of five days; or

(b)           Other Credit
Documents. Any Credit Document shall fail to be in full force and effect or
to give the Lender the rights, powers and privileges purported to be created
thereby, or any Credit Party shall so state in writing; or

(c)           Representations and
Warranties. If any representation, statement, certificate, schedule or
report made or furnished to the Lender by or on behalf of the Borrower or the
Parent shall prove to have been false or erroneous in any material respect as
of the date on which such warranty or representation was made, or if any
warranty shall cease to be complied with in any material respect;

(d)           Breach of Covenants.
If the Borrower or the Parent shall default in the performance or observance of
any of the covenants or agreements contained or incorporated by reference in Article VII and such default shall continue unremedied for a
period of 30 days after the earlier of (i) the date on which the Borrower has
knowledge of such default or (ii) the date on which the Lender gives notice of
such default to the Borrower, or if the Borrower or the Parent shall default in
the performance or observance of any of the covenants or agreements contained
or incorporated by reference in Article VIII.

(e)           Cross-Default.
If any “Event of Default” specified in the Senior Credit Facility Loan Agreement
shall occur or be in existence.

9.2           Acceleration;
Remedies. Upon the occurrence of an
Event of Default, and at any time thereafter unless and until such Event of
Default has been waived by the Lender or cured to the satisfaction of the
Lender, the Lender may by written notice to the Borrower take any of the
following actions:

 

(a)           Termination of
Commitments. Declare the Commitments terminated whereupon the Commitments
shall be immediately terminated.

(b)           Acceleration.  Declare the unpaid principal of and any
accrued interest in respect of all Loans, any reimbursement obligations arising
from drawings under Letters of Credit and any and all other indebtedness or
obligations of any and every kind owing by the Borrower to the Lender hereunder
to be due whereupon the same shall be immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower.

(c)           Enforcement of
Rights.  Enforce any and all rights
and interests created and existing under the Credit Documents and all rights of
set-off.

Notwithstanding
the foregoing, if an Event of Default relating to a Bankruptcy Event shall
occur with respect to any member of the Consolidated Group, then the
Commitments shall automatically terminate and all Loans, all reimbursement
obligations arising from drawings under Letters of Credit, all accrued interest
in respect thereof, all accrued and unpaid Fees and other indebtedness or
obligations owing to the Lender hereunder by the Borrower automatically shall
immediately become due and payable without the giving of any notice or other
action by the Lender.

9.3           Allocation of
Payments After Event of Default. Notwithstanding any other provisions of
this Agreement to the contrary, after the occurrence and during the continuance
of an Event of Default, all payments received by the Lender in respect of the
Obligations, whether from the Borrower, the Parent or otherwise, may be applied
by the Lender to any liabilities, obligations or indebtedness of the Borrower
selected by the Lender in its sole and exclusive discretion.

ARTICLE X

INTENTIONALLY OMITTED

ARTICLE XI

PARENT GUARANTY

11.1         Guaranty. The Parent unconditionally and irrevocably guarantees the
full and punctual payment of all existing and future Obligations of the
Borrower to the Lender arising under or in connection with or evidenced by this
Agreement or any other Credit Document, as and when the same shall become due
and payable, whether at the stated maturity, upon acceleration or otherwise, in
accordance with the terms hereof and thereof. If the Borrower fails to pay when
due any Obligation guaranteed hereby, the Parent unconditionally agrees to
cause such payment to be made punctually as and when the same shall become due
and payable, whether at the stated maturity, upon acceleration or otherwise.

 

11.2         Guarantee
Unconditional.  The
obligations of the Parent under this Article XI are absolute and unconditional.
Without limiting the generality of the foregoing, the obligations of the Parent
under this Article XI shall not be impaired, released, discharged or otherwise
affected by:

(i)            any extension,
renewal, settlement, compromise, waiver or release in respect of any obligation
of the Borrower under this Agreement or any other Credit Document, by operation
of law or otherwise;

(ii)           any modification,
amendment or waiver of or supplement to this Agreement or any Credit Document;

(iii)          any release, impairment
or invalidity of any guarantee or other liability of any other Credit Party or
third party for any obligation of the Borrower under this Agreement or any
other Credit Document;

(iv)          any change in the
corporate existence, structure or ownership of the Borrower or any insolvency,
bankruptcy, reorganization or other similar proceeding affecting the Borrower;

(v)           the existence of any
claim, set-off or other rights which the Parent may have at any time against
the Borrower, the Lender or any other Person, whether or not arising in
connection with the Revolving Loans and this Agreement or any unrelated transaction;

(vi)          any invalidity or
unenforceability relating to or against the Borrower for any reason of this
Agreement or any other Credit Document, or any provision of applicable law or
regulation purporting to prohibit the payment by the Borrower of any amount
payable by it under this Agreement or any other Credit Document; or

(vii)         any other act or omission
to act or delay of any kind by the Borrower, the Lender or any other Person or
any other circumstance which might, but for the provisions of this Section
11.2, constitute a legal or equitable discharge of the Parent’s obligations
under this Article XI.

11.3         Discharge Only Upon
Payment in Full; Reinstatement in Certain Circumstances.  The Parent’s obligations under this Article
XI constitute a continuing guaranty and shall remain in full force and effect
until the Revolving Commitment shall have been terminated, all Letters of
Credit shall have expired or been terminated, and all amounts payable under
this Agreement and the Credit Documents shall have been indefeasibly paid in
full.  If at any time any amount payable
by the Borrower under this Agreement or any other Credit Document is rescinded
or must be otherwise restored or returned upon the insolvency, bankruptcy or
reorganization of the Borrower or otherwise, the Parent’s obligations under
this Article XI with respect to such payment shall be reinstated at such time
as though such payment had become due but had not been made at such time.

 

11.4         Waiver.  The Parent
irrevocably waives acceptance hereof, presentment, demand, protest and any
notice not provided for herein, as well as any requirement that at any time any
action be taken by any Person against the Borrower or any other Person.

11.5         Subrogation.  If the Parent makes
any payment under this Article XI with respect to the obligations of the
Borrower, the Parent shall be subrogated to the rights of the payee against the
Borrower with respect to the portion of such obligations paid by the Parent; provided that the Parent shall not enforce any payment by
way of subrogation or contribution against the Borrower so long as any amount
payable under this Agreement or any other Credit Document remains unpaid.

11.6         Stay of Acceleration.  If acceleration of
the time for payment of any amount payable by the Borrower under this Agreement
or any other Credit Document is stayed upon the insolvency, bankruptcy or
reorganization of the Borrower, all such amounts otherwise subject to
acceleration under the terms of such Credit Document shall nonetheless be
payable by the Parent under this Article XI forthwith on demand by the Lender.

11.7         Successors and Assigns.
The guarantee by the Parent under this Article XI is for the benefit of the
Lender, and its successors and assigns. 
If any Revolving Loans, Letters of Credit or other amounts payable under
this Agreement and the other Credit Documents are assigned, the rights under
this Article XI, to the extent applicable to the indebtedness so assigned,
shall be transferred with such indebtedness.

ARTICLE XII

GENERAL PROVISIONS

12.1         Notices. Except as
otherwise expressly provided herein, all notices and other communications shall
have been duly given and shall be effective (a) when delivered, (b) when
transmitted via telecopy (or other facsimile device) to the number set out below,
(c) the Business Day following the day on which the same has been delivered
prepaid to a reputable national overnight air courier service, or (d) the third
Business Day following the day on which the same is sent by certified or
registered mail, postage prepaid, in each case to the respective parties at the
address, or at such other address as such party may specify by written notice
to the other parties hereto:

If to the
Borrower:

Helmerich &
Payne International Drilling Co.

c/o Helmerich
& Payne, Inc.

Utica at Twenty-First

Tulsa, Oklahoma 74114

Fax:   (918)
743-2671

Attn:      Chief
Financial Officer

 

 

with a copy to:

 

Helmerich &
Payne International Drilling Co.

c/o Helmerich &
Payne, Inc.

Utica at Twenty-First

Tulsa, Oklahoma 74114

Fax:   (918)
743-2671

Attention: General
Counsel

If to the Lender:

Bank of Oklahoma,
N.A.

Bank of Oklahoma Tower

One Williams Center

Tulsa, Oklahoma  74192

Attn: John M. Tyson,
Senior Vice President

Fax:   (918)
280-3366

12.2         Right of Set-Off;
Adjustments. Upon the occurrence and during the continuance of any Event of
Default, the Lender (and its Affiliates) is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by the Lender (or its
Affiliates) to or for the credit or the account of the Borrower against any and
all of the obligations of the Borrower now or hereafter existing under this
Agreement, under the Note, under any other Credit Document or otherwise,
irrespective of whether the Lender shall have made any demand under hereunder
or thereunder and although such obligations may be unmatured and regardless of
the adequacy of any other collateral securing the Obligations. Each Credit
Party hereby irrevocably waives any obligation that the Lender may have to any
set-off based on the failure of the Lender to exercise any rights that it may
have with respect to any other collateral prior to the exercise of any set-off.
The Lender agrees promptly to notify the Borrower after any such set-off and
application made by the Lender; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and
application. The rights of the Lender under this Section 12.2 are in addition
to other rights and remedies (including other rights of set-off) that the
Lender may have.

12.3         Participating Lenders.  The Borrower understands that although the
Note and the other Credit Documents name the Lender as the holder thereof, the
Lender may from time to time sell participation interests in the Loan to one or
more other lenders, and the Borrower agrees that, subject to the terms of the
agreements of participation, each participating lender will be entitled to rely
on the terms of this Agreement and the other Credit Documents and will be
entitled to exercise any and all rights of setoff or banker’s lien with respect
to any deposits or other monies owing by such participating lender to the
Borrower as fully as if such participating lender had been named as the holder
of the Note and other Credit Documents.

12.4         No Waiver; Remedies
Cumulative. No failure or delay on the
part of the Lender in exercising any right, power or privilege hereunder or
under any other Credit Document and no course of dealing between the Lender and
any of the Credit Parties shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, power or privilege hereunder or under
any other

 

Credit Document preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege hereunder or thereunder.  The rights and remedies provided herein are cumulative and
not exclusive of any rights or remedies which the Lender would otherwise
have.  No notice to or demand on any
Credit Party in any case shall entitle the Credit Parties to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of the
Lender to any other or further action in any circumstances without notice or
demand.

12.5         Expenses;
Indemnification.

(a)           Reimbursement of Expenses. The
Borrower agrees to pay on demand all 
costs and expenses reasonably incurred by the Lender in connection with
the preparation, execution, delivery, administration, modification, and
amendment of this Agreement, the other Credit Documents, and the other
documents to be delivered hereunder, including the reasonable fees and expenses
of counsel for the Lender with respect thereto and with respect to advising the
Lender as to its rights and responsibilities under the Credit Documents. The
Borrower further agrees to pay on demand all costs and expenses reasonably
incurred by the Lender, if any (including reasonable attorneys’ fees and
expenses), in connection with the enforcement (whether through negotiations,
legal proceedings, or otherwise) of the Credit Documents and the other
documents to be delivered thereunder.

(b)           Indemnification. The Borrower agrees
to indemnify and hold harmless the Lender and each of their Affiliates and
their respective officers, directors, trustees, employees, agents, and advisors
(each, an “Indemnified Party”) from and against any and all claims,
damages, losses, liabilities, costs, and expenses (including reasonable
attorneys’ fees, disbursements and other charges) that may be incurred by or
asserted or awarded against any Indemnified Party, in each case arising out of
or in connection with or by reason of (including in connection with any
investigation, litigation, or proceeding and regardless of whether such
Indemnified Party is a party thereto or preparation of defense in connection
therewith) the Credit Documents or any of the transactions contemplated herein
or the actual or proposed use of the proceeds of the Loans, except to the
extent such claim, damage, loss, liability, cost, or expense is found in a
final, non-appealable judgment by a court of competent jurisdiction to have
resulted from such Indemnified Party’s bad faith, gross negligence or willful
misconduct. In the case of an investigation, litigation or other proceeding to
which the indemnity in this Section 12.5 applies, such indemnity shall be
effective whether or not such investigation, litigation or proceeding is
brought by any of the Credit Parties, their respective directors, shareholders
or creditors or an Indemnified Party or any other Person or any Indemnified
Party is otherwise a party thereto and whether or not the transactions
contemplated hereby are consummated. The Borrower agrees not to assert any
claim against the Lender, any of their Affiliates, or any of their respective
directors, officers, employees, attorneys, agents, and advisors, on any theory
of liability, for special, indirect, consequential, or punitive damages arising
out of or otherwise relating to the Credit Documents, any of the transactions
contemplated herein or the actual or proposed use of the proceeds of the Loans.

 

 

(c)           Survival. Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
this Section 12.5 shall survive the repayment of the Loans, LOC Obligations and
other obligations under the Credit Documents and the termination of the
Commitments hereunder.

12.6         Amendments, Waivers and Consents. Neither this Agreement nor any other Credit
Document nor any of the terms hereof or thereof (including any condition
precedent to any Extension of Credit set forth in Section 5.1 or 5.2) may be
amended, changed, waived, discharged or terminated unless such amendment,
change, waiver, discharge or termination is in writing entered into by, or
approved in writing by, the Lender and the Borrower.

12.7         Counterparts. This
Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be an original, but all of which shall constitute
one and the same instrument.  It shall
not be necessary in making proof of this Agreement to produce or account for
more than one such counterpart for each of the parties hereto.  Delivery by facsimile by any of the parties
hereto of an executed counterpart of this Agreement shall be as effective as an
original executed counterpart hereof and shall be deemed a representation that
an original executed counterpart hereof will be delivered.

12.8         Headings. The
headings of the sections and subsections hereof are provided for convenience
only and shall not in any way affect the meaning or construction of any
provision of this Agreement.

12.9         Survival. All
indemnities set forth herein shall survive the execution and delivery of this
Agreement, the making of the Loans, the issuance of the Letters of Credit, the
repayment of the Loans, LOC Obligations and other obligations under the Credit
Documents and the termination of the Commitments hereunder, and all
representations and warranties made by the Borrower herein shall survive
delivery of the Note and the making of the Loans hereunder.

12.10       Governing Law. THIS
AGREEMENT AND, UNLESS OTHERWISE EXPRESSLY PROVIDED THEREIN, THE OTHER CREDIT
DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND
THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF OKLAHOMA.

12.11       Waiver of Jury Trial.
TO THE EXTENT PERMITTED BY LAW, EACH OF THE LENDER, THE BORROWER AND THE PARENT
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OF THE OTHER
CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY.

12.12       Severability. If any
provision of any of the Credit Documents is determined to be illegal, invalid
or unenforceable, such provision shall be fully severable and the remaining
provisions shall remain in full force and effect and shall be construed without
giving effect to the illegal, invalid or unenforceable provisions.

 

 

12.13       Entire Agreement.
This Agreement together with the other Credit Documents represent the entire
agreement of the parties hereto and thereto, and supersede all prior agreements
and understandings, oral or written, if any, including any commitment letters
or correspondence relating to the Credit Documents or the transactions contemplated
herein and therein. To the extent that there is any irreconcilable conflict or
inconsistency between any provision of this Agreement and any provision of any
other Credit Document, this Agreement shall govern and control.

12.14       Binding Effect.  This Agreement and the other Credit Documents
shall be binding on, and shall inure to the benefit of, the parties hereto and
their respective successors and assigns; provided, that
without the prior, written consent of the Lender, the Borrower will not assign
or transfer any of its interests, rights or obligations arising out of or
relating to the Loan Documents.

12.15       Termination. The
term of this Agreement shall be effective until no Loans, LOC Obligations or
any other amounts payable hereunder or under any of the other Credit Documents
shall remain outstanding, no Letters of Credit shall be outstanding, and all of
the Commitments hereunder shall have expired or been terminated.

12.16       Confidentiality. The
Lender agrees to keep (and to cause its affiliates and its and their respective
officers, directors, employees, agents and advisors to keep) confidential any
information furnished or made available to it by the Credit Parties pursuant to
this Agreement that is marked confidential; provided that nothing herein
shall prevent the Lender from disclosing such information (i) to any Affiliate
of the Lender, or any officer, director, employee, agent, or advisor of the
Lender or any Affiliate of the Lender, (ii) to any other Person if reasonably
incidental to the administration of the credit facility provided herein, (iii)
as required by any law, rule, or regulation, (iv) upon the order of any court
or administrative agency or pursuant to subpoena or other legal process, (v)
upon the request or demand of any regulatory agency or authority, (vi) that is
or becomes available to the public or that is or becomes available to the
Lender other than as a result of a disclosure prohibited by this Agreement,
(vii) in connection with any litigation to which the Lender or any of its Affiliates
may be a party, (viii) to the extent necessary in connection with the exercise
of any remedy under this Agreement or any other Credit Document, (ix) to any
direct or indirect contractual counterparty in swap agreements or such contractual
counterparty’s professional advisor (so long as such contractual counterparty
or professional advisor to such contractual counterparty has agreed in a writing
enforceable by the Borrower to be bound by the provisions of this Section
12.16) and (x) subject to provisions the same as those contained in this
Section 12.16, to any actual or proposed participant or assignee.

12.17       First Amended and
Restated Credit Agreement.  This
First Amended and Restated Credit Agreement amends and restates the Existing
Credit Agreement in its entirety.  From
and after the Effective Date, the credit arrangements described in the Existing
Credit Agreement and herein shall be governed solely by this Agreement and the
documents executed pursuant hereto.

 

 

IN WITNESS WHEREOF, each of
the parties hereto has caused a counterpart of this Agreement to be duly
executed and delivered as of the date first above written.

	
  BORROWER:

  	
  HELMERICH & PAYNE INTERNATIONAL

  
	
   

  	
  DRILLING CO.,

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas E. Fears

  
	
   

  	
  Name:

  	
  Douglas E. Fears

  
	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PARENT:

  	
  HELMERICH & PAYNE, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas E. Fears

  
	
   

  	
  Name:

  	
  Douglas E. Fears

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LENDER:

  	
  BANK OF OKLAHOMA, NATIONAL

  
	
   

  	
  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Tyson

  
	
   

  	
  Name:

  	
  John M. Tyson

  
	
   

  	
  Title:

  	
  Senior Vice PresidentEXHIBIT
10.1

AMENDMENT NO. 5 TO REVOLVING CREDIT
AGREEMENT

AMENDMENT (this “Amendment”),
dated as December 14, 2006, among FIRST CITY FINANCIAL CORPORATION, a Delaware
corporation (the “Borrower”), the financial institutions which are
parties to the Agreement hereinafter referred to (each a “Lender” and
collectively, the “Lenders”), and BANK OF SCOTLAND, as agent for the
Lenders under such Agreement (in such capacity, the “Agent”), to the
Revolving Credit Agreement, dated as of November 12, 2004, among the Borrower,
the Lenders and the Agent (the “Agreement”).

W I  T  N  E  S  S
E  T  H:

WHEREAS, the Borrower has requested that certain amendments set forth
herein be made to the Agreement;

WHEREAS, subject to the terms and conditions contained below, the Agent
and the Lenders are willing to so amend the Agreement;

NOW, THEREFORE, it is agreed:

1.  Definitions.  All terms used herein which are defined in
the Agreement (including, to the extent any such terms are to be added or
amended by this Amendment, as if such terms were already added or amended by
this Amendment, unless the context shall otherwise indicate) shall have the
same meanings when used herein unless otherwise defined herein.  All references to Sections in this Amendment
shall be deemed references to Sections in the Agreement unless otherwise
specified.

2.  Effect of Amendment.  As used in the Agreement (including all
Exhibits thereto), the Notes and the other Loan Documents and all other
instruments and documents executed in connection with any of the foregoing, on and subsequent to the Amendment
Closing Date (as hereinafter defined), any reference to the Agreement shall
mean the Agreement as amended hereby.

3.  Amendments.  As of the Amendment Effective Date, the
Agreement is hereby amended as follows:

(a)           Annex I. Annex I to the Agreement is amended as follows:

(i)            by restating in its entirety the
definition of “Applicable Margin” therein to read as follows:

“Applicable Margin”
shall mean, for each period from and including each Payment Date to but excluding
the following Payment Date, the applicable percentages set forth below opposite
the applicable LTV Ratio; provided, if any change to Total Outstandings
occurring during such period would otherwise result in a higher Applicable
Margin, such higher Applicable Margin shall be in effect from the date of such
change to but excluding the following Payment Date:

 1
 

 

 

	
  LTV Ratio

  	
   

  	
  Applicable

  Margin for 

  Alternate Base 

  Rate Loans

  	
   

  	
  Applicable

  Margin for 

  Eurocurrency 

  Loans

  
	
  Greater than 1.20 to
  2.00

  	
   

  	
  0.50%

  	
   

  	
  2.50%

  
	
  Greater than 1.00 to
  2.00 but less than or equal to 1.20 to 2.00

  	
   

  	
  0.25%

  	
   

  	
  2.25%

  
	
  Less than or equal to
  1.00 to 2.00

  	
   

  	
  0.00%

  	
   

  	
  2.00%

  

 

(ii)           by restating in its entirety the
definition of “Borrowing Base Availability” therein to read as follows:

“Borrowing Base Availability” shall mean, as of
any computation date, an amount equal to 70% of the Borrowing Base in effect on
such date.”

4.  Representations.  In order to induce the Agent and the Lenders
to execute this Amendment, the Borrower hereby represents, warrants and
covenants to the Agent and the Lenders as of the date hereof and (if different)
as of the Amendment Closing Date (which representations, warranties and
covenants shall survive the execution, delivery and effectiveness of this
Amendment) as follows:

(a)  No Default or Event of Default exists.

(b) Each
representation and warranty made by Borrower, each Primary Obligor, each
Portfolio Entity, each Related Entity and each other Loan Party in the Loan
Documents is true and correct.

5.  Effectiveness.    This Amendment shall become effective as of
December 14, 2006 (the “Amendment Effective Date”) when each of the
following conditions have been fulfilled to the satisfaction of the Agent (or
waived by the Agent).  The first date on which
all of the following conditions have been so fulfilled (or so waived) is herein
referred to as the “Amendment Closing Date.”  If the Amendment Closing Date shall not have
occurred by the close of business (New York time) on October 31, 2006 (or such later
time or date as the Agent consents to in writing), the provisions of this
Amendment shall (except as may otherwise be specified in this Amendment) be
deemed rescinded, null and void.

(a)  Signed Copies.  The Borrower, the Lenders and the Agent shall
have executed a copy hereof and delivered the same to the Agent at 565 Fifth
Avenue, New York, New York 10017 (Attention:  Joseph Fratus) or such other place directed
by the Agent.

(b)  Guarantor’s Consent.  Each Guarantor shall have executed a
confirming consent, substantially in the form attached hereto as Annex A or
otherwise satisfactory to the Agent (a 

 2
 

 

“Confirming
Consent”), and delivered the same to the Agent at 565 Fifth Avenue, New
York, New York 10017 (Attention:  Joseph
Fratus) or such other place directed by the Agent.

(c)    No Defaults.  No Default or Event of Default shall exist.

(d)  Accuracy of Representations.  Each representation and warranty made by the
Borrower, each Primary Obligor, each Portfolio Entity, each Related Entity and
each other Loan Party in the Agreement and the other Loan Documents shall be
true and correct in all material respects as of the Amendment Closing Date with
the same effect as though made at and as of such date (except for those that
specifically speak as of a prior date).

6.  Limited Nature of Amendments.  The amendments set forth herein are limited
precisely as written and shall not be deemed to (a) be a consent by the Agent
or the Lenders to any waiver of, or modification of, any other term or
condition of the Agreement, or any of the documents referred to in any of the
foregoing or (b) prejudice any right or rights which any of the Lenders or the
Agent may now have or may have in the future under or in connection with the
Agreement, or any of the documents referred to in any of the foregoing.  Except as expressly amended hereby, the terms
and provisions of the Agreement shall remain in full force and effect.

7.  Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO CHOICE OF LAW DOCTRINE THAT WOULD RESULT IN THE APPLICATION OF THE
LAWS OF ANOTHER JURISDICTION.

8.  Jurisdiction, Waiver of Jury Trial.  THE BORROWER HEREBY AGREES THAT ANY LEGAL
ACTION OR PROCEEDING AGAINST IT WITH RESPECT TO THIS AMENDMENT MAY BE BROUGHT
IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN NEW YORK CITY OR OF THE
UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AS THE AGENT OR
ANY LENDER MAY ELECT, and, by execution and delivery hereof, the Borrower
accepts and consents for itself and in respect to its property, generally and
unconditionally, the exclusive jurisdiction of the aforesaid courts, unless
waived in writing by the Agent and the Majority Lenders.  EACH OF THE BORROWER, THE AGENT AND THE
LENDERS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY AND ALL
RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AMENDMENT OR ANY OTHER LOAN
DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN), OR ACTIONS OF THE BORROWER, ANY AFFILIATE OF THE BORROWER,
THE AGENT OR ANY LENDER.  THIS PROVISION
IS A MATERIAL INDUCEMENT FOR THE AGENT AND THE LENDER ENTERING INTO THIS
AMENDMENT.

9.  Headings.  The descriptive headings of the various
provisions of this Amendment are inserted for convenience of reference only and
shall not be deemed to affect the meaning or construction of any of the
provisions hereof.

10.  Writings Only.  BORROWER HEREBY ACKNOWLEDGES AND AGREES THAT
NO TERM OR PROVISION OF THE AGREEMENT, THE NOTES OR ANY OF THE OTHER LOAN
DOCUMENTS MAY BE CHANGED, WAIVED, SUPPLEMENTED OR OTHERWISE MODIFIED VERBALLY,
BUT ONLY BY AN INSTRUMENT IN WRITING SIGNED BY THE RELEVANT PARTIES, AS FURTHER
PROVIDED IN SECTION 12.2 OF THE CREDIT AGREEMENT.

 3
 

 

 

11.  Counterparts.  This Amendment may be executed in any number
of counterparts, and by the different parties on the same or separate
counterparts, each of which when so executed and delivered shall be deemed to
be an original, but all of which together shall constitute one and the same
agreement. Telecopied signatures hereto and to the Confirming Consent shall be
of the same force and effect as an original of a manually signed copy.

[Signature page
follows.]

 4
 

 

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be duly executed and delivered by their respective duly
authorized officers.

	
  

  	
  BANK OF SCOTLAND,

  
	
   

  	
  Individually and as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FIRSTCITY FINANCIAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 5

 

 

Annex A

CONFIRMING CONSENT

Reference
is hereby made to the foregoing Amendment (the “Amendment”) to the
Revolving Credit Agreement dated as of December 14, 2006 among the Borrower,
the Lenders and the Agent; said agreement, as amended and modified by the Amendment
and from time to time hereafter further amended or otherwise modified, the “Amended
Agreement”).

Each
Guarantor hereby consents to the terms and provisions of the Amendment and
confirms and acknowledges that:

(a)  its obligations under the Loan Documents to
which it is a party remain in full force and effect and the terms “Obligations”
and “Secured Obligations” used in such Loan Documents include all Obligations
of the Borrower under the Amended Agreement; and

(b)  its consent and acknowledgement hereunder is
not required under the terms of such Loan Documents and any failure to obtain
its consent or acknowledgment to any subsequent amendment to the Agreement or
the Amended Agreement or any of the other Loan Documents will not affect the
validity of its obligations under the aforesaid Loan Documents or any other
Loan Document, and this consent and acknowledgement is being delivered for
purposes of form only.

Capitalized
terms used herein and not otherwise defined have the same meanings as in the
Amended Agreement.  This Consent is dated
as of the Amendment Closing Date (as defined in the Amendment).

	
  FIRSTCITY COMMERCIAL CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  
	
  FC CAPITAL CORP.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  
	
  FIRSTCITY CONSUMER LENDING CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  

 

 6
  
 

 

 

	
  FIRSTCITY EUROPE CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  
	
  FIRSTCITY HOLDINGS CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  
	
  FIRSTCITY HOLDINGS CORPORATION OF MINNESOTA

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  
	
  FIRSTCITY INTERNATIONAL CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  
	
  FIRSTCITY MEXICO, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  
	
  FIRSTCITY SERVICING CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  
	
  BOSQUE ASSET CORP.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  
	
  BOSQUE LEASING, L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  

 

 7
  
 

 

 

	
  BOSQUE LEASING GP CORP.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  

 

 

 8

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