Document:

exv4w1

 

Exhibit 4.1

 

TERM CREDIT AGREEMENT

Dated as of

August 30, 2006

Among

TRANSOCEAN INC.,

as Borrower,

THE LENDERS PARTIES HERETO,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent,

CITIBANK, N.A.,

as Syndication Agent,

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

CALYON NEW YORK BRANCH,

and THE ROYAL BANK OF SCOTLAND PLC,

as Co-Documentation Agents,

and

J.P. MORGAN SECURITIES INC.,

and

CITIGROUP GLOBAL MARKETS INC.,

as Co-Lead Arrangers

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE 1.
	 	  DEFINITIONS; INTERPRETATION	 	 	1	 
	Section 1.1.
	 	Definitions	 	 	1	 
	Section 1.2.
	 	Time of Day	 	 	14	 
	Section 1.3.
	 	Accounting Terms; GAAP	 	 	14	 
	ARTICLE 2.
	 	  TERM CREDIT FACILITY	 	 	15	 
	Section 2.1.
	 	Multi-Draw Term Commitments	 	 	15	 
	Section 2.2.
	 	Types of Term Loans and Minimum Borrowing Amounts	 	 	15	 
	Section 2.3.
	 	Procedure for Term Loan Borrowing	 	 	15	 
	Section 2.4.
	 	Procedure for Continuation or Conversion of Term Loans	 	 	16	 
	Section 2.5.
	 	Interest Periods	 	 	17	 
	Section 2.6.
	 	Intentionally Omitted	 	 	18	 
	Section 2.7.
	 	Funding of Term Loans	 	 	18	 
	Section 2.8.
	 	Applicable Interest Rates	 	 	19	 
	Section 2.9.
	 	Default Rate	 	 	19	 
	Section 2.10.
	 	Repayment of Term Loans; Evidence of Debt	 	 	20	 
	Section 2.11.
	 	Optional Prepayments	 	 	22	 
	Section 2.12.
	 	Mandatory Prepayments of Term Loans	 	 	22	 
	Section 2.13.
	 	Breakage Fees	 	 	22	 
	Section 2.14.
	 	Commitment Terminations	 	 	23	 
	ARTICLE 3.
	 	  FEES AND PAYMENTS	 	 	23	 
	Section 3.1.
	 	Fees	 	 	23	 
	Section 3.2.
	 	Place and Application of Payments	 	 	24	 
	Section 3.3.
	 	Withholding Taxes	 	 	24	 
	ARTICLE 4.
	 	  CONDITIONS PRECEDENT	 	 	27	 
	Section 4.1.
	 	Initial Borrowing	 	 	27	 
	Section 4.2.
	 	All Borrowings	 	 	28	 
	ARTICLE 5.
	 	  REPRESENTATIONS AND WARRANTIES	 	 	29	 
	Section 5.1.
	 	Corporate Organization	 	 	29	 
	Section 5.2.
	 	Power and Authority; Validity	 	 	29	 
	Section 5.3.
	 	No Violation	 	 	29	 
	Section 5.4.
	 	Litigation	 	 	29	 
	Section 5.5.
	 	Use of Proceeds; Margin Regulations	 	 	30	 
	Section 5.6.
	 	Investment Company Act	 	 	30	 
	Section 5.7.
	 	[Intentionally Omitted]	 	 	30	 
	Section 5.8.
	 	True and Complete Disclosure	 	 	30	 
	Section 5.9.
	 	Financial Statements	 	 	30	 
	Section 5.10.
	 	No Material Adverse Change	 	 	31	 
	Section 5.11.
	 	Taxes	 	 	31	 
	Section 5.12.
	 	Consents	 	 	31	 
	Section 5.13.
	 	Insurance	 	 	31	 
	Section 5.14.
	 	Intellectual Property	 	 	31	 
	Section 5.15.
	 	Ownership of Property	 	 	31	 
	Section 5.16.
	 	Existing Indebtedness	 	 	31	 
	Section 5.17.
	 	Existing Liens	 	 	32	 
	ARTICLE 6.
	 	  COVENANTS	 	 	32	 
	Section 6.1.
	 	Corporate Existence	 	 	32	 
	Section 6.2.
	 	Maintenance	 	 	32	 
	Section 6.3.
	 	Taxes	 	 	32	 
	Section 6.4.
	 	ERISA	 	 	33	 

 

 

	 	 	 	 	 	 	 
	Section 6.5.
	 	Insurance	 	 	33	 
	Section 6.6.
	 	Financial Reports and Other Information	 	 	33	 
	Section 6.7.
	 	Lender Inspection Rights	 	 	36	 
	Section 6.8.
	 	Conduct of Business	 	 	36	 
	Section 6.9.
	 	Restrictions on Fundamental Changes	 	 	36	 
	Section 6.10.
	 	Liens	 	 	37	 
	Section 6.11.
	 	Subsidiary Indebtedness	 	 	39	 
	Section 6.12.
	 	Use of Property and Facilities; Environmental Laws	 	 	41	 
	Section 6.13.
	 	Transactions with Affiliates	 	 	41	 
	Section 6.14.
	 	Sale and Leaseback Transactions	 	 	41	 
	Section 6.15.
	 	Compliance with Laws	 	 	41	 
	Section 6.16.
	 	Indebtedness to Total Tangible Capitalization Ratio	 	 	41	 
	ARTICLE 7.
	 	  EVENTS OF DEFAULT AND REMEDIES	 	 	41	 
	Section 7.1.
	 	Events of Default	 	 	41	 
	Section 7.2.
	 	Non-Bankruptcy Defaults	 	 	43	 
	Section 7.3.
	 	Bankruptcy Defaults	 	 	44	 
	Section 7.4.
	 	Notice of Default	 	 	44	 
	Section 7.5.
	 	Expenses	 	 	44	 
	Section 7.6.
	 	Distribution and Application of Proceeds	 	 	44	 
	ARTICLE 8.
	 	  CHANGE IN CIRCUMSTANCES	 	 	45	 
	Section 8.1.
	 	Change of Law	 	 	45	 
	Section 8.2.
	 	Unavailability of Deposits or Inability to Ascertain LIBOR Rate	 	 	46	 
	Section 8.3.
	 	Increased Cost and Reduced Return	 	 	46	 
	Section 8.4.
	 	Lending Offices	 	 	48	 
	Section 8.5.
	 	Discretion of Lender as to Manner of Funding	 	 	48	 
	Section 8.6.
	 	Substitution of Lender	 	 	48	 
	ARTICLE 9.
	 	  THE AGENTS	 	 	49	 
	Section 9.1.
	 	Appointment and Authorization of Administrative Agent	 	 	49	 
	Section 9.2.
	 	Rights and Powers	 	 	49	 
	Section 9.3.
	 	Action by Administrative Agent	 	 	49	 
	Section 9.4.
	 	Consultation with Experts	 	 	50	 
	Section 9.5.
	 	Indemnification Provisions; Credit Decision	 	 	50	 
	Section 9.6.
	 	Indemnity	 	 	51	 
	Section 9.7.
	 	Resignation of Administrative Agent	 	 	51	 
	Section 9.8.
	 	Other Agents	 	 	51	 
	ARTICLE 10.
	 	  MISCELLANEOUS	 	 	51	 
	Section 10.1.
	 	No Waiver	 	 	51	 
	Section 10.2.
	 	Non-Business Day	 	 	52	 
	Section 10.3.
	 	Documentary Taxes	 	 	52	 
	Section 10.4.
	 	Survival of Representations	 	 	52	 
	Section 10.5.
	 	Survival of Indemnities	 	 	52	 
	Section 10.6.
	 	Setoff	 	 	52	 
	Section 10.7.
	 	Notices	 	 	53	 
	Section 10.8.
	 	Counterparts	 	 	54	 
	Section 10.9.
	 	Successors and Assigns	 	 	54	 
	Section 10.10.
	 	Sales and Transfers of Borrowing and Notes; Participations in	 	 	 	 
	 
	 	Borrowings and Notes	 	 	55	 
	Section 10.11.
	 	Amendments, Waivers and Consents	 	 	58	 
	Section 10.12.
	 	Headings	 	 	58	 
	Section 10.13.
	 	Legal Fees, Other Costs and Indemnification	 	 	58	 
	Section 10.14.
	 	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial	 	 	59	 

ii

 

	 	 	 	 	 	 	 
	Section 10.15.
	 	Confidentiality	 	 	61	 
	Section 10.16.
	 	Effectiveness	 	 	61	 
	Section 10.17.
	 	Severability	 	 	61	 
	Section 10.18.
	 	Change in Accounting Principles, Fiscal Year or Tax Laws	 	 	62	 
	Section 10.19.
	 	Final Agreement	 	 	62	 
	Section 10.20.
	 	Officer’s Certificates	 	 	62	 
	Section 10.21.
	 	Effect of Inclusion of Exceptions	 	 	62	 

	 	 	 	 	 
	Exhibits:
	 	 	 	 
	 
	 	 	 	 
	Exhibit 2.3

	 	-
	 	Form of Borrowing Request
	Exhibit 2.8

	 	-
	 	Form of Note
	Exhibit 4.1A

	 	-
	 	Form of Opinion of Baker Botts LLP
	Exhibit 4.1B

	 	-
	 	Form of Opinion of William Turcotte
	Exhibit 4.1C

	 	-
	 	Form of Opinion of Walkers
	Exhibit 6.6

	 	-
	 	Form of Compliance Certificate
	Exhibit 6.11

	 	-
	 	Form of Subsidiary Guaranty
	Exhibit 10.10

	 	-
	 	Form of Assignment Agreement
	 
	 	 	 	 
	Schedules:
	 	 	 	 
	 
	 	 	 	 
	Schedule 5.16

	 	-
	 	Existing Indebtedness
	Schedule 5.17

	 	-
	 	Existing Liens

iii

 

TERM CREDIT AGREEMENT

     THIS TERM CREDIT AGREEMENT (the “Agreement”), dated as of August 30, 2006, among
TRANSOCEAN INC. (the “Borrower”), a Cayman Islands company, the lenders from time to time parties
hereto (each a “Lender” and collectively, the “Lenders”), JPMORGAN CHASE BANK, N.A., as
administrative agent for the Lenders (in such capacity, the “Administrative Agent”), CITIBANK,
N.A., as syndication agent for the Lenders (in such capacity, the “Syndication Agent”), and THE
BANK OF TOKYO-MITSUBISHI UFJ, LTD., CALYON NEW YORK BRANCH, and THE ROYAL BANK OF SCOTLAND PLC, as
co-documentation agents for the Lenders (in such capacity, the “Co-Documentation Agents”).

WITNESSETH:

     WHEREAS, the Borrower has requested that the Lenders establish in its favor a multi-draw term
loan facility in the aggregate principal amount of U.S. $1,000,000,000 pursuant to which facility
multi-draw term loans would be made to the Borrower;

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

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

ARTICLE 1. DEFINITIONS; INTERPRETATION.

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

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

	 	 	 	 	 	 	 	 	 
	 

	 	Adjusted LIBOR
	 	=
	 	LIBOR Rate for such Interest Period
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	1.00 — Statutory Reserve Rate	 	 

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

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

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

 

 

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

	 	 	 	 	 
	Debt Rating(S&P and Fitch/Moody’s)	 	Percentage
	A+/A1 or above
	 	 	0.150	%
	 
	A/A2
	 	 	0.200	%
	 
	A-/A3
	 	 	0.300	%
	 
	BBB+/Baa1
	 	 	0.400	%
	 
	BBB/Baa2 or below
	 	 	0.500	%

The Applicable Margin will be determined based upon the two highest ratings issued by S&P, Moody’s
and Fitch. If such two highest ratings differ (i) by one rating, the higher of such two highest
ratings will apply to determine the Applicable Margin so long as the higher rating is from either
S&P or Moody’s, otherwise the lower of such two highest ratings will apply, (ii) by two ratings,
the rating which falls between such two highest ratings will apply to determine the Applicable
Margin, or (iii) by more than two ratings, the rating which is one level above the lower of such
two highest ratings will apply to determine the Applicable Margin. If only one such rating is
issued by S&P, Moody’s or Fitch, the Applicable Margin will be determined by such rating. The
Borrower shall give written notice to the Administrative Agent of any changes to such ratings,
within three (3) Business Days thereof, and any change to the Applicable Margin shall be effective
on the date of the relevant change. Notwithstanding the foregoing, if the Borrower shall at any
time fail to have in effect any such rating on the Borrower’s non-credit enhanced senior unsecured
long-term debt, the Borrower shall seek and obtain (if not already in effect), within thirty (30)
days after such rating first ceases to be in effect, a corporate credit rating or a bank loan
rating from Fitch, Moody’s and/or S&P (or if none of Fitch, Moody’s and S&P issue such types of
ratings or ratings comparable thereto, from another nationally recognized rating agency approved by
each of the Borrower and the Administrative Agent), and the Applicable Margin shall thereafter be
based on such ratings in the same manner as provided herein with respect to the Borrower’s senior
unsecured long-term debt rating (with the Applicable Margin in effect prior to the issuance of such
corporate credit rating or bank loan rating being the same as the Applicable Margin in effect at
the time the senior unsecured long-term debt rating ceases to be in effect).

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

2

 

	 	 	 	 	 
	Debt Rating(S&P and Fitch/Moody’s)	 	Percentage
	A+/A1 or above
	 	 	0.050	%
	 
	A/A2
	 	 	0.055	%
	 
	A-/A3
	 	 	0.065	%
	 
	BBB+/Baa1
	 	 	0.080	%
	 
	BBB/Baa2 or below
	 	 	0.100	%

The Applicable Percentage will be determined based upon the two highest ratings issued by S&P,
Moody’s and Fitch. If such two highest ratings differ (i) by one rating, the higher of such two
highest ratings will apply to determine the Applicable Percentage so long as the higher rating is
from either S&P or Moody’s, otherwise the lower of such two highest ratings will apply, (ii) by two
ratings, the rating which falls between such two highest ratings will apply to determine the
Applicable Percentage, or (iii) by more than two ratings, the rating which is one level above the
lower of such two highest ratings will apply to determine the Applicable Percentage. If only one
such rating is issued by S&P, Moody’s or Fitch, the Applicable Percentage will be determined by
such rating. The Borrower shall give written notice to the Administrative Agent of any changes to
such ratings, within three (3) Business Days thereof, and any change to the Applicable Percentage
shall be effective on the date of the relevant change. Notwithstanding the foregoing, if the
Borrower shall at any time fail to have in effect any such rating on the Borrower’s non-credit
enhanced senior unsecured long-term debt, the Borrower shall seek and obtain (if not already in
effect), within thirty (30) days after such rating first ceases to be in effect, a corporate credit
rating or a bank loan rating from Fitch, Moody’s and/or S&P (or if none of Fitch, Moody’s and S&P
issue such types of ratings or ratings comparable thereto, from another nationally recognized
rating agency approved by each of the Borrower and the Administrative Agent), and the Applicable
Percentage shall thereafter be based on such ratings in the same manner as provided herein with
respect to the Borrower’s senior unsecured long-term debt rating (with the Applicable Percentage in
effect prior to the issuance of such corporate credit rating or bank loan rating being the same as
the Applicable Percentage in effect at the time the senior unsecured long-term debt rating ceases
to be in effect).

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

     “Availability Period” shall mean the period commencing on the Initial Availability Date and
expiring on February 28, 2007.

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

          (i) the fluctuating commercial loan rate announced by the Administrative Agent from time to
time at its New York, New York office (or other corresponding office, in the case of

3

 

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

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

     “Base Rate Loan” means a Term Loan bearing interest prior to maturity at the rate specified in
Section 2.8.

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

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

     “Borrowing Multiple” means, for any Borrowing, $1,000,000.

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

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

     “Cash Equivalents” means (i) securities issued or directly and fully guaranteed or insured by
the United States of America or any agency or instrumentality thereof having maturities of

4

 

not more than twelve (12) months from the date of acquisition, (ii) time deposits and
certificates of deposits maturing within one year from the date of acquisition thereof or
repurchase agreements with financial institutions whose short-term unsecured debt rating is A or
above as obtained from either S&P or Moody’s, (iii) commercial paper or Eurocommercial paper with a
rating of at least A-1 by S&P or at least P-1 by Moody’s, with maturities of not more than twelve
(12) months from the date of acquisition, (iv) repurchase obligations entered into with any Lender,
or any other Person whose short-term senior unsecured debt rating from S&P is at least A-1 or from
Moody’s is at least P-1, which are secured by a fully perfected security interest in any obligation
of the type described in (i) above and has a market value of the time such repurchase is entered
into of not less than 100% of the repurchase obligation of such Lender or such other Person
thereunder, (v) marketable direct obligations issued by any state of the United States of America
or any political subdivision of any such state or any public instrumentality thereof maturing
within twelve (12) months from the date of acquisition thereof or providing for the resetting of
the interest rate applicable thereto not less often than annually and, at the time of acquisition,
having one of the two highest ratings obtainable from either S&P or Moody’s, and (vi) money market
funds which have at least $1,000,000,000 in assets and which invest primarily in securities of the
types described in clauses (i) through (v) above.

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

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

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

     “Commitment” means, relative to any Lender, such Lender’s obligations to make Term Loans
pursuant to Section 2.1, initially in the amount and percentage set forth opposite its signature
hereto or pursuant to Section 10.10, as such obligations may be reduced or increased from time to
time as expressly provided pursuant to this Agreement.

     “Commitment Termination Date” means the earliest of (i) the scheduled expiration date of the
Availability Period, (ii) the date on which the Commitments are terminated in full or reduced to
zero pursuant to Section 2.14, and (iii) the occurrence of any Event of Default described in
Section 7.1(f) or (g) with respect to the Borrower, or the occurrence and continuance of any other
Event of Default and either (x) the declaration of the Term Loans to be due and payable pursuant to
Section 7.2, or (y) in the absence of such declaration, the giving of written notice by the
Administrative Agent, acting at the direction of the Required Lenders, to the Borrower pursuant to
Section 7.2 that the Commitments have been terminated.

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

5

 

     “Confidential Information Memorandum” shall mean the Confidential Information Memorandum of
the Borrower dated August, 2006, as the same may be amended, restated and supplemented from time to
time and distributed to the Lenders prior to the Effective Date.

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

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

     “Consolidated Net Assets” means, as of any date of determination, an amount equal to the
aggregate book value of the assets of the Borrower, its Subsidiaries and, to the extent of the
equity interest of the Borrower and its Subsidiaries therein, SPVs at such time, minus the current
liabilities of the Borrower and its Subsidiaries, all as determined on a consolidated basis in
accordance with GAAP based on the most recent quarterly or annual consolidated financial statements
of the Borrower referred to in Section 5.9 or delivered (or publicly filed) as provided in Section
6.6(a), as the case may be.

     “Consolidated Tangible Net Worth” means, as of any date of determination, consolidated
shareholders equity of the Borrower and its Subsidiaries determined in accordance with GAAP but
excluding the effect on shareholders equity of cumulative foreign exchange translation adjustments,
and less the net book amount of all assets of the Borrower and its Subsidiaries that would
be classified as intangible assets on the consolidated balance sheet of the Borrower as of such
date prepared in accordance with GAAP. For purposes of this definition, SPVs shall be accounted
for pursuant to the equity method of accounting.

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

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

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

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

6

 

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

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

     “Effective Date” means the date this Agreement shall become effective as defined in Section
10.16.

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

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

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

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

     “Eurodollar Loan” means a Term Loan bearing interest before maturity at the rate specified in
Section 2.8(b).

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

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     “Fitch” means Fitch, Inc. or any successor thereto.

     “Foreign Plan” means any pension, profit sharing, deferred compensation, or other employee
benefit plan, program or arrangement maintained by any foreign Subsidiary of the Borrower which,
under applicable local law, is required to be funded through a trust or other funding vehicle, but
shall not include any benefit provided by a foreign government or its agencies.

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

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

     “Guarantor” means any Subsidiary of the Borrower required to execute and deliver a Subsidiary
Guaranty hereunder pursuant to Section 6.11, in each case unless and until the relevant Subsidiary
Guaranty is released pursuant to Section 6.11.

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

8

 

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

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

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

     “Initial Availability Date” means the date on which the conditions specified in Section 4.1
are satisfied (or waived in accordance with Section 10.11).

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

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

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

     “Lender” is defined in the preamble.

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

     “LIBOR Rate” means, for any Interest Period for each Eurodollar Loan, an interest rate per
annum equal to the rate per annum appearing on Moneyline Telerate Markets Page 3750 (or any
successor page) as the London interbank offered rate for deposits in U.S. Dollars at approximately
11:00 A.M. (London time) two Business Days prior to the first day of such Interest Period for a
term comparable to such Interest Period or, if for any reason such rate is not available, the
average (rounded to the nearest 1/100 of 1% per annum) of the rate per annum at which deposits in
U.S. Dollars are offered by the principal office of each of the Reference Banks in London, England
to prime banks in the London interbank market at 11:00 A.M. (London time) two Business Days before
the first day of such Interest Period in an amount substantially equal to such Reference Bank’s
Eurodollar Loan comprising part of such Borrowing to be outstanding during such Interest Period and
for a period equal to such Interest Period. If the Moneyline Telerate Markets Page 3750 (or any
successor page) is unavailable, the LIBOR Rate for any Interest Period for each Eurodollar Loan
comprising part of the same Borrowing shall be determined by the Administrative Agent on the basis
of applicable rates furnished to and received by the Administrative Agent from the Reference Banks,
such rates being the rates at which such Reference Banks are offered deposits in U.S. Dollar
deposits of approximately $5,000,000 for a period approximately equal to such Interest Period in
the London interbank market at 11:00 A.M. (London time) two Business Days before the first day of
such Interest Period.

10

 

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

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

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

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

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

     “Note” means any of the promissory notes of the Borrower defined in Section 2.10(e).

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

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

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

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

     “Percentage” means, for each Lender, the percentage of the Commitments represented by such
Lender’s Commitment; provided, that, if the Commitments are terminated, each Lender’s Percentage
shall be calculated based on such Lender’s pro rata share of the total Term Loans then outstanding
or, if no Term Loans are then outstanding, its Commitment in effect immediately before such
termination, subject to any assignments by such Lender of Obligations pursuant to Section 10.10.

     “Performance Guaranties” means all Guaranties of the Borrower or any of its Subsidiaries
delivered in connection with the construction financing of drill ships, offshore

11

 

mobile drilling units or offshore drilling rigs for which firm drilling contracts have been
obtained by the Borrower, any of its Subsidiaries or a SPV.

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

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

     “Permitted Liens” means the Liens permitted as described in Section 6.10.

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

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

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

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

     “Revolving Credit Agreement” means the Revolving Credit Agreement dated as of July 8, 2005,
among the Borrower, the lenders that are parties thereto, and Citibank, N.A., as Administrative
Agent, as the same may be amended, restated, supplemented or otherwise modified from time to time.

     “Sale-Leaseback Transaction” means any arrangement whereby the Borrower or a Subsidiary shall
sell or transfer any property, real or personal, used or useful in its business, whether now owned
or hereafter acquired, and thereafter rent or lease property that it intends to use for
substantially the same purpose or purposes as the property sold or transferred.

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

     “SPV” means any Person that is designated by the Borrower as a SPV, provided that the
Borrower shall not designate as a SPV any Subsidiary that owns, directly or indirectly, any other
Subsidiary that has total assets (including assets of any Subsidiaries of such other Subsidiary,
but

12

 

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

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

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

     “Subsidiary” means, for any Person, any other Person (other than, except in the context of
Section 6.6(a), a SPV) of which more than fifty percent (50%) of the outstanding stock or
comparable equity interests having ordinary voting power for the election of the board of directors
of such corporation, any managers of such limited liability company or similar governing body
(irrespective of whether or not at the time stock or other equity interests of any other class or
classes of such corporation or other entity shall have or might have voting power by reason of the
happening of any contingency), is at the time directly or indirectly owned by such former Person or
by one or more of its Subsidiaries.

     “Subsidiary Debt Basket Amount” has the meaning ascribed to such term in Section 6.11(i).

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     “Subsidiary Guaranty” means any Guaranty of any Subsidiary delivered pursuant to Section
6.11(k).

     “Syndication Agent” means, Citibank, N.A ., acting in its capacity as syndication
agent for the Lenders, and any successor Syndication Agent; provided, however, that the Syndication
Agent shall not have any duties, responsibilities, or obligations hereunder in such capacity.

     “Taxes” has the meaning set forth in Section 5.11.

     “Term Credit Aggregate Commitment Amount” means an amount equal to $1,000,000,000, as such
amount may be reduced from time to time pursuant to the terms of this Agreement.

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

     “Term Loan” means each of the multi-draw term loans defined in Section 2.1.

     “Term Loan Scheduled Maturity Date” means August 29, 2008.

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

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

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

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

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

     Section 1.3. Accounting Terms; GAAP. Except as otherwise expressly provided herein,
and subject to the
provisions of Section 10.20, all terms of an accounting or financial nature shall be construed
in accordance with GAAP, as in effect from time to time.

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ARTICLE 2. TERM CREDIT FACILITY.

     Section 2.1. Multi-Draw Term Commitments. Subject to the terms and conditions hereof,
each Lender agrees to make available to Borrower from time to time during the Availability Period
its pro rata share (based on its Percentage) of term loans (each a “Term Loan” and collectively the
“Term Loans”) pursuant to a Borrowing Request submitted by the Borrower as provided in Section 2.3,
provided that (i) the total amount of all Term Loans made pursuant to this Agreement shall not
exceed the Term Credit Aggregate Commitment Amount, and (ii) no Lender shall be required to make
Term Loans pursuant to this Agreement in an aggregate amount exceeding its Commitment from time to
time in effect. Term Loans, once repaid, may not be reborrowed. The obligations of each Lender
hereunder shall be several and not joint.

     Section 2.2. Types of Term Loans and Minimum Borrowing Amounts. Borrowings of Term
Loans may be made and shall be outstanding as either Base Rate Loans or Adjusted LIBOR Loans, as
selected by the Borrower pursuant to Section 2.3 or 2.4, as the case may be. Each Term Loan
Borrowing shall be in an amount not less than the $25,000,000 and in an integral multiple of the
Borrowing Multiple.

     Section 2.3. Procedure for Term Loan Borrowing.

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

     (b) Notice to the Lenders. The Administrative Agent shall give prompt telephonic,
telex or facsimile notice to each Lender of any notice received pursuant to this Section 2.3
relating to continuation or conversion of any Term Loan Borrowing. The Administrative Agent shall
give notice to the Borrower and each Lender by like means of the interest rate applicable to each
Borrowing of Eurodollar Loans (but, if such notice is given by telephone, the Administrative Agent
shall confirm such rate in writing) promptly after the Administrative Agent has made such
determination.

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

     (a) Notice of Continuation or Conversion of Outstanding Borrowings. The Borrower may
from time to time elect to change or continue the Type of each Term Loan Borrowing or, subject to
the minimum Borrowing amount requirements in Section 2.2 for each outstanding Term Loan Borrowing,
a portion thereof, as follows: (i) if such Borrowing is of Eurodollar Loans, the Borrower may
continue part or all of such Borrowing as Eurodollar Loans for an Interest Period specified by the
Borrower or convert part or all of such Borrowing into Base Rate Loans on the last day of the
Interest Period applicable thereto, or the Borrower may earlier convert part or all of such
Borrowing into Base Rate Loans so long as it pays the breakage fees and funding losses provided in
Section 2.13; and (ii) if such Borrowing is of Base Rate Loans, the Borrower may convert all or
part of such Borrowing into Eurodollar Loans for an Interest Period specified by the Borrower on
any Business Day, in each case pursuant to notices of continuation or conversion as set forth
below. The Borrower may select multiple Interest Periods for the Eurodollar Loans the outstanding
Borrowings, provided that at no time shall the number of different Interest Periods for all
outstanding Eurodollar Loans exceed twenty (20) (it being understood for such purposes that (x)
Interest Periods of the same duration, but commencing on different dates, shall be counted as
different Interest Periods, and (y) all Interest Periods commencing on the same date and of the
same duration shall be counted as one Interest Period regardless of the number of Borrowings or
Term Loans involved. Notices of the continuation of such Eurodollar Loans for an additional
Interest Period or of the conversion of part or all of such Eurodollar Loans into Base Rate Loans
or of such Base Rate Loans into Eurodollar Loans must be given by no later than 12:00 P.M. at least
three (3) Business Days before the date of the requested continuation or conversion.

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

     (c) Notice to the Lenders. The Administrative Agent shall give prompt telephonic,
telex or facsimile notice to each Lender of any notice received pursuant to this Section 2.4
relating to a continuation or conversion of any Term Loan Borrowing. The Administrative Agent
shall give notice to the Borrower and each Lender by like means of the interest rate applicable to
each Borrowing of Eurodollar Loans (but, if such notice is given by telephone, the Administrative
Agent shall confirm such rate in writing) promptly after the Administrative Agent has made such
determination.

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     (d) Borrower’s Failure to Notify. If the Borrower fails to give notice pursuant to
Section 2.4 of the continuation or conversion of any outstanding principal amount of a Borrowing of
Eurodollar Loans, and has not notified the Administrative Agent by 12:00 P.M. at least three (3)
Business Days before the last day of the Interest Period for such Borrowing of Eurodollar Loans
that it intends to repay such Borrowing, the Borrower shall be deemed to have requested the
continuation of such Borrowing as Eurodollar Loans with an Interest Period of one (1) month. Upon
the occurrence and during the continuance of any Event of Default, and upon notice thereof from the
Administrative Agent to the Borrower, each Eurodollar Loan will automatically, on the last day of
the then existing Interest Period therefor, convert into a Base Rate Loan.

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

     Section 2.5. Interest Periods. As provided in Sections 2.3 and 2.4, at the time of
each request for a Borrowing of Term Loans, or for the continuation or conversion of any Borrowing
of Term Loans, the Borrower shall select the Interest Period(s) to be applicable to such Term Loans
from among the available options, subject to the limitations in Section 2.4; provided, however,
that:

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

17

 

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

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

     Section 2.6. Intentionally Omitted.

     Section 2.7. Funding of Term Loans.

     (a) Disbursement of Term Loans. Not later than 12:00 P.M. with respect to Borrowings
comprised of Eurodollar Loans, and 2:00 P.M. with respect to Borrowings comprised of Base Rate
Loans, on the date of any requested advance of a new Borrowing of Term Loans, each Lender, subject
to all other provisions hereof, shall make available for the account of its applicable Lending
Office its portion of such Borrowing in funds immediately available for the benefit of the
Administrative Agent and according to the payment instructions of the Administrative Agent. The
Administrative Agent shall make the proceeds of each such Borrowing available in immediately
available funds to the Borrower (or as directed in writing by the Borrower) on such date. In the
event that any Lender does not make such amounts available to the Administrative Agent by the time
prescribed above, but such amount is received later that day, such amount may be credited to the
Borrower in the manner described in the preceding sentence on the next Business Day (with interest
on such amount to begin accruing hereunder on such next Business Day) provided that acceptance by
the Borrower of any such late amount shall not be deemed a waiver by the Borrower of any rights it
may have against such Lender. No Lender shall be responsible to the Borrower for any failure by
another Lender to fund its portion of a Borrowing, and no such failure by a Lender shall relieve
any other Lender from its obligation, if any, to fund its portion of a Borrowing.

     (b) Administrative Agent Reliance on Lender Funding. Unless the Administrative Agent
shall have been notified by a Lender prior to the time at which such Lender is scheduled to make
payment to the Administrative Agent of such Lender’s portion of any Borrowing (which notice shall
be effective upon receipt) that such Lender does not intend to make such payment, the
Administrative Agent may assume that such Lender has made such payment when due and in reliance
upon such assumption may (but shall not be required to) make available to the Borrower the amount
to be funded by such Lender and, if any Lender has not in fact made such payment to the
Administrative Agent, such Lender shall, on demand, pay to the Administrative Agent the amount made
available to the Borrower attributable to such Lender together with interest thereon for each day
during the period commencing on the date such amount was made available to the

18

 

Borrower and ending
on (but excluding) the date such Lender pays such amount to the Administrative Agent at a rate per
annum equal to the Administrative Agent’s cost of funds for such amount. If such amount is not
received from such Lender by the Administrative Agent immediately upon demand, the Borrower will,
on demand, repay to the Administrative Agent the proceeds of the Borrowing attributable to such
Lender with interest thereon at a rate per annum equal to the interest rate applicable to the
relevant Term Loan, but the Borrower will in no event be liable to pay any amounts otherwise due
pursuant to Section 2.13 in respect of such repayment. Nothing in this subsection shall be deemed
to relieve any Lender from any obligation to fund any Term Loans hereunder or to prejudice any
rights which the Borrower may have against any Lender as a result of any default by such Lender
hereunder.

     Section 2.8. Applicable Interest Rates.

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

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

     (c) Rate Determinations. The Administrative Agent shall determine each interest rate
applicable to the Term Loans hereunder insofar as such interest rate involves a determination of
Base Rate, Adjusted LIBOR or LIBOR Rate, or any applicable default rate pursuant to Section 2.9,
and such determination shall be conclusive and binding except in the case of the
Administrative Agent’s manifest error or willful misconduct. The Administrative Agent shall
promptly give notice to the Borrower and each Lender of each determination of Adjusted LIBOR with
respect to each Eurodollar Loan.

     Section 2.9. Default Rate. If any payment of principal on any Term Loan is not made
when due after the expiration of the grace period therefor provided in Section 7.1(a) (whether by
acceleration or otherwise), such Term Loan shall bear interest (computed on the basis of a year of
360, 365 or 366 days, as applicable, and actual days elapsed) after any such grace period expires
until such principal then due is paid in full, which the Borrower agrees to pay on demand, at a
rate per annum equal to:

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

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

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

     Section 2.10. Repayment of Term Loans; Evidence of Debt.

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

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

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

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

     (e) Notes. The Term Loans outstanding to the Borrower from each Lender shall, at the
written request of such Lender, be evidenced by a promissory note of the Borrower payable to such
Lender in the form of Exhibit 2.8 (each a “Note”). The Borrower agrees to execute and
deliver to the Administrative Agent, for the benefit of each Lender requesting a Note as aforesaid,
an original of each Note, appropriately completed, to evidence the respective Term Loans made by
such Lender hereunder, within ten (10) Business Days after the Borrower receives a written request
therefor.

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

21

 

     Section 2.11. Optional Prepayments. The Borrower shall have the privilege of
prepaying any Borrowings comprised of Base Rate Loans without premium or penalty at any time in
whole or at any time and from time to time in part (but, if in part, then in an amount which is
equal to or greater than $1,000,000 and an integral multiple of $1,000,000); provided, however,
that the Borrower shall have given notice of such prepayment to the Administrative Agent no later
than 12:00 P.M. on the date of such prepayment. The Borrower shall have the privilege of prepaying
any Adjusted LIBOR Loans (a) without premium or penalty in whole or in part (but, if in part, then
in an amount which is equal to or greater than $5,000,000 and in an integral multiple of the
Borrowing Multiple or such smaller amount as needed to prepay a particular Borrowing in full) only
on the last Business Day of an Interest Period for such Eurodollar Loans, and (b) at any other time
without premium or penalty except for the breakage fees and funding losses that are required to be
paid pursuant to Section 2.13; provided, however, that the Borrower shall have given notice of such
prepayment to the Administrative Agent no later than 12:00 P.M. at least three (3) Business Days
before the last Business Day of such Interest Period or other proposed prepayment date. Any such
prepayments shall be made by the payment of the principal amount to be prepaid and accrued and
unpaid interest thereon to the date of such prepayment.

     Section 2.12. Mandatory Prepayments of Term Loans. In the event and on each occasion
that the aggregate principal amount of outstanding Term Loans exceeds the Term Credit Aggregate
Commitment Amount then in effect, then the Borrower shall promptly prepay Term Loans in an
aggregate amount sufficient to eliminate such excess. Immediately upon determining the need to
make any such prepayment, the Borrower shall notify the Administrative Agent of such required
prepayment and of the identity of the particular Term Loans being prepaid. If the Administrative
Agent shall notify the Borrower that the Administrative Agent has determined that any prepayment is
required under this Section 2.12, the Borrower shall make such prepayment no later than the second
Business Day following such notice. Any mandatory prepayment of Term Loans pursuant hereto shall
not be limited by the notice provision for prepayments set forth in Section 2.11. Each such
prepayment shall be accompanied by a payment of all accrued and unpaid interest on the Term Loans
prepaid and any applicable breakage fees and funding losses pursuant to Section 2.13.

     Section 2.13. Breakage Fees. If any Lender incurs any loss, cost or expense
(excluding loss of anticipated profits and other indirect or consequential damages) by reason of
the liquidation or re-employment of deposits or other funds acquired by such Lender to fund or
maintain any Eurodollar Loans as a result of any of the following events other than any such
occurrence as a result of a change of circumstance described in Sections 8.1 or 8.2:

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

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

22

 

     (c) any failure by the Borrower to borrow, continue or prepay, or convert to, any such
Eurodollar Loan on the date specified in a notice given pursuant to Section 2.11 (other than by
reason of a default of such Lender),

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

     Section 2.14. Commitment Terminations. The Borrower shall have the right at any time
and from time to time, upon three (3) Business Days’ prior and irrevocable written notice to the
Administrative Agent, to terminate or reduce the Commitments without premium or penalty, in whole
or in part, with any partial reduction (i) to be in an amount not less than $5,000,000 as
determined by the Borrower and in integral multiples of $5,000,000 and (ii) to be allocated ratably
among the Lenders in proportion to their respective Commitments. The Administrative Agent shall
give prompt notice to each Lender of any such termination or reduction of the Commitments. Any
termination of Commitments pursuant to this Section 2.14 is permanent and may not be reinstated.

ARTICLE 3.FEES AND PAYMENTS.

     Section 3.1. Fees.

     (a) Commitment Fees. The Borrower shall pay to the Administrative Agent for the
account of each Lender a commitment fee, which shall accrue at the Applicable Percentage per annum
on the daily amount of the unused Commitment of such Lender during the period from and including
the Initial Availability Date to but excluding the Commitment Termination Date. Such commitment
fees shall be payable quarterly in arrears on the last day of each March, June, September and
December, commencing on the first to occur after the Effective Date and on the Commitment
Termination Date.

     (b) Administrative Agent Fees. The Borrower shall pay to the Administrative Agent the
fees from time to time agreed to by the Borrower and the Administrative Agent.

     (c) Calculation and Payment of Fees. All fees payable hereunder shall be paid on the
dates due, in immediately available funds, to the Administrative Agent for distribution, in the

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case of commitment fees, to the Lenders. Commitment fees pursuant to Section 3.1(a) shall be
calculated on the basis of a 360-day year for the actual number of days elapsed.

     Section 3.2. Place and Application of Payments.

     (a) All payments of principal of and interest on the Term Loans and all fees and other amounts
payable by the Borrower under the Credit Documents shall be made by the Borrower to the
Administrative Agent, for the benefit of the Lenders entitled to such payments, in immediately
available funds on the due date thereof no later than 2:00 P.M. in the Administrative Agent’s
account or such other location as the Administrative Agent may designate in writing to the
Borrower. Any payments received by the Administrative Agent from the Borrower after the time
specified in the preceding sentence shall be deemed to have been received on the next Business Day.
The Administrative Agent will, on the same day each payment is received or deemed to have been
received in accordance with this Section 3.2, cause to be distributed like funds to each Lender
owed an Obligation for which such payment was received, pro rata based on the respective amounts of
such type of Obligation then owing to each Lender.

     (b) If any payment received by the Administrative Agent under any Credit Document is
insufficient to pay in full all amounts then due and payable to the Administrative Agent and the
Lenders under the Credit Documents, such payment shall be distributed by the Administrative Agent
and applied by the Administrative Agent and the Lenders in the order set forth in Section 7.7. In
calculating the amount of Obligations owing each Lender other than for principal and interest on
Term Loans and fees under Section 3.1, the Administrative Agent shall only be required to include
such other Obligations that Lenders have certified to the Administrative Agent in writing are due
to such Lenders.

     Section 3.3. Withholding Taxes.

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

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

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

24

 

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

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

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

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

25

 

payment of the Indemnified Taxes, penalties and interest, and (ii)
the date on which the relevant taxing authority or other governmental authority makes written
demand upon such Lender or the Administrative Agent for payment of the Indemnified Taxes,
penalties and interest. Any such demand shall describe in reasonable detail such Indemnified
Taxes, penalties or interest, including the amount thereof if then known to such Lender or the
Administrative Agent, as the case may be. In the event that such Lender or the Administrative
Agent fails to give the Borrower timely notice as provided herein, the Borrower shall not have any
obligation to pay such claim for reimbursement.

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

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

     (d) Refund of Taxes. If any Lender or the Administrative Agent becomes aware that it
has received a refund of any Indemnified Tax or any tax referred to in Section 10.3 with respect to
which the Borrower has paid any amount pursuant to this Section 3.3 or Section 10.3, such Lender or
the Administrative Agent shall pay the amount of such refund (including any interest received with
respect thereto) to the Borrower within fifteen (15) days after receipt thereof. A Lender or the
Administrative Agent shall provide, at the sole cost and expense of the

26

 

Borrower, such assistance as the Borrower may reasonably request in order to obtain such a refund;
provided, however, that
neither the Administrative Agent nor any Lender shall in any event be required to disclose any
information to the Borrower with respect to the overall tax position of the Administrative Agent or
such Lender.

ARTICLE 4. CONDITIONS PRECEDENT.

     Section 4.1. Initial Borrowing. The obligation of each Lender to advance the initial
Term Loans hereunder on or after the Initial Availability Date is subject to satisfaction of the
following conditions precedent:

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

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

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

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

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

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

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     (b) Each of the representations and warranties of the Borrower and its Subsidiaries set forth
herein and in the other Credit Documents shall be true and correct in all material respects as of
the time of such Borrowing, except to the extent that any such representation or warranty relates
solely to an earlier date, in which case it shall have been true and correct in all material
respects as of such earlier date;

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

     (d) Payment of all fees and all expenses incurred through the Effective Date then due and
owing to the Administrative Agent, the Lenders, and the Co-Lead Arrangers pursuant to this
Agreement and as otherwise agreed in writing by the Borrower.

     Section 4.2. All Borrowings. The obligation of each Lender to make any advance of any
Term Loan is subject to satisfaction of the following conditions precedent (but subject to Section
2.3):

     (a) Notices. The Administrative Agent shall have received a Borrowing Request as
required by Section 2.3(a);

     (b) Warranties True and Correct. In the case of any advance or Borrowing that
increases the aggregate amount of Term Loans outstanding after giving effect to such advance or
Borrowing, each of the representations and warranties of the Borrower and its Subsidiaries set
forth herein (other than the representations and warranties set forth in Sections 5.4, 5.10, 5.16
and 5.17) and in the other Credit Documents (other than those that relate to the representations
and warranties set forth in Sections 5.4, 5.10, 5.16 and 5.17) shall be true and correct in all
material respects as of the time of such advance, or Borrowing except as a result of the
transactions expressly permitted hereunder or thereunder and except to the extent that any such
representation or warranty relates solely to an earlier date, in which case it shall have been
true and correct in all material respects as of such earlier date;

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

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

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

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ARTICLE 5. REPRESENTATIONS AND WARRANTIES.

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

     Section 5.1. Corporate Organization. The Borrower and each of its material
Subsidiaries: (i) is duly organized and existing in good standing under the laws of the
jurisdiction of its organization; (ii) has all necessary organizational power and authority to own
the property and assets it uses in its business and otherwise to carry on its present business; and
(iii) is duly licensed or qualified and in good standing in each jurisdiction in which the nature
of the business transacted by it or the nature of the property owned or leased by it makes such
licensing or qualification necessary, except where the failure to be so licensed or qualified or to
be in good standing, as the case may be, would not have a Material Adverse Effect.

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

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

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

29

 

     Section 5.5. Use of Proceeds; Margin Regulations.

     (a) Use of Proceeds. The proceeds of the Term Loans shall be used for funding
permitted investments, stock repurchases and acquisitions, capital expenditures, refinancing of
indebtedness, and other general corporate purposes of the Borrower and its Subsidiaries.

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

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

     Section 5.7. [Intentionally Omitted].

     Section 5.8. True and Complete Disclosure. All factual information (taken as a whole)
furnished by the Borrower or
any of its Subsidiaries in writing to the Administrative Agent or any Lender in connection
with any Credit Document or the Confidential Information Memorandum or any transaction contemplated
therein did not, as of the date such information was furnished (or, if such information expressly
related to a specific date, as of such specific date), contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein (taken as a whole),
in light of the circumstances under which such information was furnished, not misleading, except
for such statements, if any, as have been updated, corrected, supplemented, superseded or modified
pursuant to a written correction or supplement furnished to the Lenders prior to the date of this
Agreement.

     Section 5.9. Financial Statements. The financial statements heretofore delivered to
the Lenders for the Borrower’s fiscal year ending December 31, 2005, and for the Borrower’s fiscal
quarter and year-to-date period ending June 30, 2006, have been prepared in accordance with GAAP
applied on a basis consistent, except as otherwise noted therein, in accordance with GAAP, with the
Borrower’s financial statements for the previous fiscal year. Such annual and quarterly financial
statements fairly present in all material respects on a consolidated basis the financial position
of the Borrower as of the dates thereof, and the results of operations for the periods indicated,
subject in the case of interim financial statements, to normal year-end audit adjustments and
omission of certain footnotes (as permitted by the SEC). As of the Effective Date, the Borrower
and its Subsidiaries, considered as a whole, had no material contingent liabilities or material
Indebtedness required under GAAP to be disclosed in a consolidated balance sheet of the Borrower
that were not included in the financial statements referred to in this Section 5.9 or disclosed in
the notes thereto or in writing to the Administrative Agent (with a written request to the
Administrative Agent to distribute such disclosure to the Lenders).

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     Section 5.10. No Material Adverse Change. There has occurred no event or effect that
has had or could reasonably be expected to have a Material Adverse Effect.

     Section 5.11. Taxes. The Borrower and its Subsidiaries have filed all required United
States federal income tax returns, and all other material tax returns required to be filed, whether
in the United States or in any foreign jurisdiction, and have paid all governmental taxes, rates,
assessments, fees, charges and levies (collectively, “Taxes”) shown to be due and payable on such
returns or on any assessments made against Borrower and its Subsidiaries or any of their properties
(other than any such assessments, fees, charges or levies that are not more than ninety (90) days
past due, or which can thereafter be paid without penalty, or which are being contested in good
faith by appropriate proceedings and for which reserves have been provided in conformity with GAAP,
or which the failure to pay could not reasonably be expected to have a Material Adverse Effect).

     Section 5.12. Consents. On the Initial Availability Date, all consents and approvals
of, and filings and registrations with, and all other actions of, all governmental agencies,
authorities or instrumentalities required to have been obtained or made by the Borrower in order to
obtain the Loans hereunder have been or will have been obtained or made and are or will be in full
force and effect.

     Section 5.13. Insurance. The Borrower and its material Subsidiaries currently
maintain in effect, with responsible insurance companies, insurance against any loss or damage to
all insurable property and assets owned by it, which insurance is of a character and in or in
excess of such amounts as are customarily maintained by companies similarly situated and operating
like property or assets (subject to self-insured retentions and deductibles), and insurance with
respect to employers’ and public and product liability risks (subject to self-insured retentions
and deductibles).

     Section 5.14. Intellectual Property. The Borrower and its Subsidiaries own or hold
valid licenses to use all the patents, trademarks, permits, service marks, and trade names that are
necessary to the operation of the business of the Borrower and its Subsidiaries as presently
conducted, except where the failure to own, or hold valid licenses to use, such patents,
trademarks, permits, service marks, and trade names could not reasonably be expected to have a
Material Adverse Effect.

     Section 5.15. Ownership of Property The Borrower and its Subsidiaries have good
title to or a valid leasehold interest in all of their real property and good title to, or a valid
leasehold interest in, all of their other property, subject to no Liens except Permitted Liens,
except where the failure to have such title or leasehold interest in such property could not
reasonably be expected to have a Material Adverse Effect.

     Section 5.16. Existing Indebtedness. Schedule 5.16 contains a complete and
accurate list of all Indebtedness outstanding as of the Effective Date, with respect to the
Borrower and its Subsidiaries, in each case in a principal amount of $20,000,000 (or, if
denominated in a currency other than U.S. Dollars, the U.S. Dollar Equivalent of $20,000,000) or
more (other than the Obligations hereunder and Indebtedness permitted by Section 6.11(b) through
(j)) and permitted

31

 

by Section 6.11(a), in each case showing the aggregate principal amount thereof,
the name of the respective borrower and any other entity which directly or indirectly guaranteed
such Indebtedness, and the scheduled payments of such Indebtedness.

     Section 5.17. Existing Liens. Schedule 5.17 contains a complete and accurate
list of all Liens outstanding as of the Effective Date, with respect to the Borrower and its
Subsidiaries where the Indebtedness or other obligations secured by such Lien is in a principal
amount of $20,000,000 (or, if denominated in a currency other than U.S. Dollars, the U.S. Dollar
Equivalent of $20,000,000) or more (other than the Liens permitted by Section 6.10(b) through (r)),
and permitted by Section 6.10(a), in each case showing the name of the Person whose assets are
subject to such Lien, the aggregate principal amount of the Indebtedness secured thereby, and a
description of the Agreements or other instruments creating, granting, or otherwise giving rise to
such Lien.

ARTICLE 6. COVENANTS.

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

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

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

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

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     Section 6.4. ERISA. Each of the Borrower and its Subsidiaries will timely pay and
discharge all obligations and liabilities arising under ERISA or otherwise with respect to each
Plan of a character which if unpaid or unperformed might result in the imposition of a material
Lien against any properties or assets of the Borrower or any material Subsidiary and will promptly
notify the Administrative Agent upon an officer of the Borrower becoming aware thereof, of (i) the
occurrence of any reportable event (as defined in ERISA) relating to a Plan (other than a
multi-employer plan, as defined in ERISA), so long as the event thereunder could reasonably be
expected to have a Material Adverse Effect, other than any such event with respect to which the
PBGC has waived notice by regulation; (ii) receipt of any notice from PBGC of its intention to seek
termination of any Plan or appointment of a trustee therefor; (iii) Borrower’s or any of its
Subsidiaries’ intention to terminate or withdraw from any Plan if such termination or withdrawal
would result in liability under Title IV of ERISA, unless such termination or withdrawal could not
reasonably be expected to have a Material Adverse Effect; and (iv) the receipt by the Borrower or
its Subsidiaries of notice of the
occurrence of any event that could reasonably be expected to result in the incurrence of any
liability (other than for benefits), fine or penalty to the Borrower and/or to the Borrower’s
Subsidiaries, or any plan amendment that could reasonably be expected to increase the contingent
liability of the Borrower and its Subsidiaries, taken as a whole, in either case in connection with
any post-retirement benefit under a welfare plan (subject to ERISA), unless such event or amendment
could not reasonably be expected to have a Material Adverse Effect. The Borrower will also
promptly notify the Administrative Agent of (i) any material contributions to any Foreign Plan that
have not been made by the required due date for such contribution if such default could reasonably
be expected to have a Material Adverse Effect; (ii) any Foreign Plan that is not funded to the
extent required by the law of the jurisdiction whose law governs such Foreign Plan based on the
actuarial assumptions reasonably used at any time if such underfunding (together with any penalties
likely to result) could reasonably be expected to have a Material Adverse Effect, and (iii) any
material change anticipated to any Foreign Plan that could reasonably be expected to have a
Material Adverse Effect.

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

     Section 6.6. Financial Reports and Other Information.

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

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     (i) within sixty (60) days after the end of each of the first three (3) fiscal quarters
of each fiscal year of the Borrower, the consolidated balance sheet of the Borrower and its
Subsidiaries as at the end of such fiscal quarter and the related consolidated statements of
income and retained earnings and of cash flows for such fiscal quarter and for the portion
of the fiscal year ended with the last day of such fiscal quarter, all of which shall be in
reasonable detail or in the form filed with the SEC, and certified by the chief financial
officer of the Borrower that they fairly present in all material respects the financial
condition of the Borrower and its Subsidiaries as of the dates indicated and the results of
their operations and changes in their cash flows for the periods indicated and that they
have been prepared in accordance with GAAP, in each case, subject to normal year-end audit
adjustments and the omission of any footnotes as permitted by the SEC (publicly filing the
Borrower’s Form 10-Q with the SEC in any
event will satisfy the requirements of this subsection subject to Section 6.6(b) and
shall be deemed furnished and delivered on the date such information has been posted on the
SEC website accessible through http://www.sec.gov/edgar/searchedgar/webusers.htm or such
successor webpage of the SEC thereto));

     (ii) within one hundred twenty (120) days after the end of each fiscal year of the
Borrower, the consolidated balance sheet of the Borrower and its Subsidiaries as at the end
of such fiscal year and the related consolidated statements of income and retained earnings
and of cash flows for such fiscal year and setting forth consolidated comparative figures as
of the end of and for the preceding fiscal year, audited by an independent
nationally-recognized accounting firm and in the form filed with the SEC (publicly filing
the Borrower’s Form 10-K with the SEC in any event will satisfy the requirements of this
subsection subject to Section 6.6(b) and shall be deemed furnished and delivered on the date
such information has been posted on the SEC website accessible through
http://www.sec.gov/edgar/searchedgar/webusers.htm or such successor webpage of the SEC
thereto));

     (iii) commencing with fiscal year 2006, to the extent actually prepared and approved by
the Borrower’s board of directors, a projection of Borrower’s consolidated balance sheet and
consolidated income, retained earnings and cash flows for its current fiscal year showing
such projected budget for each fiscal quarter of the Borrower ending during such year; and

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

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

     (b) Compliance Certificates. Within the sixty (60) day or one hundred twenty (120)
day time periods set forth in subsections (i) and (ii) of Section 6.6(a) for furnishing financial
statements, the Borrower shall deliver (i) additional information setting forth calculations
excluding the effects of any SPVs and containing such calculations for any SPVs as reasonably
requested by the Administrative Agent, and (ii) (x) a written certificate signed by the Borrower’s
chief financial officer (or other financial officer of the Borrower), in his or her capacity as
such, to the effect that no Default or Event of Default then exists or, if any such Default or
Event of Default exists as of the date of such certificate, setting forth a description of such
Default or Event of Default and specifying the action, if any, taken by the Borrower to remedy the
same, and (y) a Compliance Certificate in the form of Exhibit 6.6 showing the Borrower’s
compliance with certain of the covenants set forth herein.

     (c) Reserved.

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

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

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

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

     (e) Notices of Default, Litigation, Etc. The Borrower will promptly, and in any event
within five (5) Business Days, after an officer of the Borrower has knowledge thereof, give written
notice to the Administrative Agent of (who will in turn provide notice to the Lenders of): (i) the
occurrence of any Default or Event of Default; (ii) any litigation or governmental proceeding of
the type described in Section 5.4; (iii) any circumstance that has had or could reasonably be
expected to have a Material Adverse Effect; (iv) the occurrence of any event which has resulted in
a breach of, or is reasonably expected to result in a breach of, Section 6.16; and (v) any notice
received by it, any Subsidiary or any SPV from the holder(s) of Indebtedness of the Borrower, any
Subsidiary or any SPV in an amount which, in the aggregate, exceeds $50,000,000 (or, if denominated
in a currency other than U.S. Dollars, the U.S. Dollar

35

 

Equivalent of $50,000,000), where such
notice states or claims the existence or occurrence of any default or event of default with respect
to such Indebtedness under the terms of any indenture, loan or credit agreement, debenture, note,
or other document evidencing or governing such Indebtedness.

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

     Section 6.8. Conduct of Business. The Borrower and its Subsidiaries will at all times
remain primarily engaged in (i) the contract drilling business, (ii) the provision of services to
the energy industry, (iii) other existing businesses described in the Borrower’s current SEC
reports, or (iv) any related businesses (each a “Permitted Business”).

     Section 6.9. Restrictions on Fundamental Changes. The Borrower shall not merge or
consolidate with any other Person, or cause or permit any dissolution of the Borrower or
liquidation of its assets, or sell, transfer or otherwise dispose of all or substantially all of
the Borrower’s assets, except that:

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

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

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

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     Section 6.10. Liens. The Borrower and its Subsidiaries shall not create, incur,
assume or suffer to exist any Lien of any kind on any property or asset of any kind of the Borrower
or any Subsidiary, except the following (collectively, the “Permitted Liens”):

     (a) Liens existing on the date hereof (each such Lien, to the extent it secures Indebtedness
or other obligations in an aggregate amount of $20,000,000 (or, if denominated in a currency other
than U.S. Dollars, the U.S. Dollar Equivalent of $20,000,000) or more, being described on
Schedule 5.17 attached hereto);

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

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

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

     (e) Liens imposed by ERISA (or comparable foreign laws) which are being contested in good
faith by appropriate proceedings and reserves in conformity with GAAP have been provided therefor,
or if such Liens otherwise could not reasonably be expected to have a Material Adverse Effect;

     (f) Liens arising out of judgments or awards against the Borrower or any of its Subsidiaries,
or in connection with surety or appeal bonds or the like in connection with bonding such judgments
or awards, the time for appeal from which or petition for rehearing of which shall not have expired
or for which the Borrower or such Subsidiary shall be prosecuting on appeal or proceeding for
review, and for which it shall have obtained (within thirty (30) days with respect to a judgment or
award rendered in the United States or within sixty (60) days with respect to a judgment or award
rendered in a foreign jurisdiction after entry of such judgment or award or expiration of any
previous such stay, as applicable) a stay of execution or the like

37

 

pending such appeal or
proceeding for review; provided, that the aggregate amount of uninsured or underinsured liabilities
(net of customary deductibles, and including interest, costs, fees and penalties, if any) of the
Borrower and its Subsidiaries secured by such Liens shall not exceed the U.S. Dollar Equivalent of
$100,000,000 at any one time outstanding;

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

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

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

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

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

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

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

38

 

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

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

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

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

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

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

     (t) Liens (not otherwise permitted by this Section 6.10) securing Indebtedness (or other
obligations) not exceeding at the time of incurrence thereof (together with all such other Liens
securing Indebtedness (or other obligations) outstanding pursuant to this clause (t) at such time)
ten percent (10%) of Consolidated Tangible Net Worth.

     Section 6.11. Subsidiary Indebtedness. The Borrower shall not permit its Subsidiaries
to incur, assume or suffer to exist any Indebtedness, except:

     (a) existing Indebtedness outstanding on the Effective Date (such Indebtedness, to the extent
the principal amount thereof is $20,000,000 (or, if denominated in a currency other than U.S.
Dollars, the U.S. Dollar Equivalent of $20,000,000) or more, being described on Schedule
5.16 attached hereto), and any subsequent extensions, renewals or refinancings thereof (i) so
long as such Indebtedness is not increased in amount (other than amounts incurred to pay costs of
such extension, renewal or refinancing), the scheduled maturity date thereof (if prior to the
Maturity Date) is not accelerated, the interest rate per annum applicable thereto is not increased,
any scheduled amortization of principal thereunder prior to the Maturity Date is not shortened and
the payments thereunder are not increased, or (ii) such extensions, renewals or refinancings are
otherwise expressly permitted by, and are effected pursuant to, another clause in this Section 6.11
(other than clause (l) hereof);

     (b) Indebtedness under the Credit Documents;

39

 

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

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

     (e) Indebtedness (i) under unsecured lines of credit for overdrafts or for working capital
purposes in foreign countries with financial institutions, and (ii) arising from the honoring by a
bank or other Person of a check, draft or similar instrument inadvertently drawing against
insufficient funds, all such Indebtedness not to exceed the U.S. Dollar Equivalent of $200,000,000
in the aggregate at any time outstanding, provided that amounts under overdraft
lines of credit or outstanding as a result of drawings against insufficient funds shall be
outstanding for one (1) Business Day before being included in such aggregate amount;

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

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

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

     (i) Indebtedness (not otherwise permitted under any other clause of this Section 6.11) in an
aggregate principal amount outstanding for all Subsidiaries not exceeding at the time of incurrence
thereof (together with all such other Indebtedness outstanding pursuant to this clause (i) at such
time) ten percent (10%) of Consolidated Net Assets (the “Subsidiary Debt Basket Amount”);

     (j) other Indebtedness not otherwise permitted under any other clause of this Section 6.11 so
long as such Subsidiary has in force a Subsidiary Guaranty in substantially the form of Exhibit
6.11, provided that such Subsidiary Guaranty shall contain a provision that such Subsidiary
Guaranty and all obligations thereunder of the Guarantor party thereto shall be terminated upon
delivery to the Administrative Agent by the Borrower of a certificate stating that (x) the
aggregate principal amount of Indebtedness of all Subsidiaries outstanding pursuant to the
preceding clause (i) and this clause (j) is equal to or less than the Subsidiary Debt Basket
Amount, and (y) no Default or Event of Default has occurred and is continuing; and

     (k) extensions, renewals or replacements of Indebtedness permitted by this Section 6.11 that
do not increase the amount of such Indebtedness (other than amounts incurred to pay costs of such
extension, renewal or refinancing).

40

 

     Section 6.12. Use of Property and Facilities; Environmental Laws. The Borrower and
its Subsidiaries shall comply in all material respects with all Environmental Laws applicable to or
affecting the properties or business operations of the Borrower or any Subsidiary of the Borrower,
where the failure to comply could reasonably be expected to have a Material Adverse Effect.

     Section 6.13. Transactions with Affiliates. Except as otherwise specifically
permitted herein, the Borrower and its Subsidiaries shall not (except pursuant to contracts
outstanding as of (i) with respect to the Borrower, the Effective Date or (ii) with respect to any
Subsidiary of the Borrower, the Effective Date or, if later, the date such Subsidiary first became
a Subsidiary of the Borrower) enter into or engage in any material transaction or arrangement or
series of related transactions or
arrangements which in the aggregate would be material with any Controlling Affiliate,
including without limitation, the purchase from, sale to or exchange of property with, any merger
or consolidation with or into, or the rendering of any service by or for, any Controlling
Affiliate, except pursuant to the requirements of the Borrower’s or such Subsidiary’s business and
unless such transaction or arrangement or series of related transactions or arrangements, taken as
a whole, are no less favorable to the Borrower or such Subsidiary (other than a wholly owned
Subsidiary) than would be obtained in an arms’ length transaction with a Person not a Controlling
Affiliate.

     Section 6.14. Sale and Leaseback Transactions. The Borrower will not, and will not
permit any of its Subsidiaries to, enter into, assume, or suffer to exist any Sale-Leaseback
Transaction, except any such transaction that may be entered into, assumed or suffered to exist
without violating any other provision of this Agreement, including without limitation, Section
6.16.

     Section 6.15. Compliance with Laws. Without limiting any of the other covenants of
the Borrower in this Article 6, the Borrower and its Subsidiaries shall conduct their business, and
otherwise be, in compliance with all applicable laws, regulations, ordinances and orders of any
governmental or judicial authorities; provided, however, that this Section 6.15 shall not require
the Borrower or any Subsidiary of the Borrower to comply with any such law, regulation, ordinance
or order if (x) it shall be contesting such law, regulation, ordinance or order in good faith by
appropriate proceedings and reserves in conformity with GAAP have been provided therefor, or (y)
the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.

     Section 6.16. Indebtedness to Total Tangible Capitalization Ratio. The Borrower will
maintain, as of the end of each fiscal quarter of the Borrower, a ratio (expressed as a percentage)
of Consolidated Indebtedness to Total Tangible Capitalization of no greater than 60%.

ARTICLE 7. EVENTS OF DEFAULT AND REMEDIES.

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

41

 

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

     (b) default by the Borrower in the observance or performance of any covenant set forth in
Sections 6.9, 6.10 or 6.16;

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

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

     (e) (x) Indebtedness in the aggregate principal amount of the U.S. Dollar Equivalent of
$100,000,000 of the Borrower and its Subsidiaries (“Material Indebtedness") shall (i) not be paid
at maturity (beyond any applicable grace periods), or (ii) be declared to be due and payable or
required to be prepaid, redeemed or repurchased prior to its stated maturity, or (y) any default in
respect of Material Indebtedness shall occur which permits the holders thereof, or any trustees or
agents on their behalf, to accelerate the maturity of such Indebtedness or requires such
Indebtedness to be prepaid, redeemed, or repurchased prior to its stated maturity;

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

     (g) a custodian, receiver, trustee, liquidator or similar official is appointed for the
Borrower or any Significant Subsidiary or any substantial part of its property under the United
States Bankruptcy Code or under the bankruptcy or insolvency laws of another country or a political
subdivision of such country, or a proceeding described in Section 7.1(f)(v) is instituted against
the Borrower or any Significant Subsidiary, and such appointment continues

42

 

undischarged or such
proceeding continues undismissed and unstayed for a period of sixty (60) days (or one hundred
twenty (120) days in the case of any such event occurring outside the United States of America);

     (h) the Borrower or any Subsidiaries of the Borrower fail within thirty (30) days with respect
to any judgments or orders that are rendered in the United States or sixty (60) days with respect
to any judgments or orders that are rendered in foreign jurisdictions (or such earlier date
as any execution on such judgments or orders shall take place) to vacate, pay, bond or
otherwise discharge any judgments or orders for the payment of money the uninsured portion of which
is in excess of the U.S. Dollar Equivalent of $100,000,000 in the aggregate and which are not
stayed on appeal or otherwise being appropriately contested in good faith in a manner that stays
execution;

     (i) (x) the Borrower or any Subsidiary of the Borrower fails to pay when due an amount that it
is liable to pay to the PBGC or to a Plan under Title IV of ERISA; or a notice of intent to
terminate a Plan having Unfunded Vested Liabilities of the Borrower or any of its Subsidiaries in
excess of the U.S. Dollar Equivalent of $100,000,000 (a “Material Plan”) is filed under Title IV of
ERISA; or the PBGC institutes proceedings under Title IV of ERISA to terminate or to cause a
trustee to be appointed to administer any Material Plan or a proceeding is instituted by a
fiduciary of any Material Plan against any Borrower or any Subsidiary to collect any liability
under Section 515 or 4219(c)(5) of ERISA, and in each case such proceeding is not dismissed within
thirty (30) days thereafter; or a condition exists by reason of which the PBGC would be entitled to
obtain a decree adjudicating that any Material Plan must be terminated, and (y) the occurrence of
one or more of the matters in the preceding clause (x) could reasonably be expected to result in
liabilities in excess of the U.S. Dollar Equivalent of $100,000,000;

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

     (k) if the outstanding “Revolving Credit Exposure” exceeds $25,000,000 at such time, the
occurrence of any “Event of Default” as provided in Section 7.1(a) of the Revolving Credit
Agreement resulting from the non-payment of any principal amount of any “Loan” or “Reimbursement
Obligation” or any interest thereon (in each case as such term in quotations is defined in the
Revolving Credit Agreement).

     Section 7.2. Non-Bankruptcy Defaults. When any Event of Default (other than those
described in subsections (f) or (g) of Section 7.1 with respect to the Borrower) has occurred and
is continuing, the Administrative Agent shall, by notice to the Borrower: (a) if so directed by the
Required Lenders, terminate the remaining Commitments to the Borrower hereunder on the date stated
in such notice (which may be the date thereof); and (b) if so directed by the Required Lenders,
declare the principal of and the accrued interest on all outstanding Term Loans to be forthwith due
and payable and thereupon all outstanding Term Loans, including both principal

43

 

and interest
thereon, shall be and become immediately due and payable together with all other accrued amounts
payable under the Credit Documents without further demand, presentment, protest or notice of any
kind, including, but not limited to, notice of intent to accelerate and notice of acceleration,
each of which is expressly waived by the Borrower. The Administrative Agent, after giving notice
to the Borrower pursuant to this Section 7.2, shall also promptly send a copy of such notice to the
other Lenders, but the failure to do so shall not impair or annul the effect of such notice.

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

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

     Section 7.5. Expenses. The Borrower agrees to pay to the Administrative Agent and
each Lender all reasonable out-of-pocket expenses incurred or paid by the Administrative Agent or
such Lender, including reasonable attorneys’ fees and court costs, in connection with any Default
or Event of Default hereunder or in connection with the enforcement of any of the Credit Documents.

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

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

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

44

 

aggregate amount of the costs and
expenses unpaid to all Lenders collectively, until all such fees, costs and expenses have been paid
in full;

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

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

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

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

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

ARTICLE 8. CHANGE IN CIRCUMSTANCES.

     Section 8.1. Change of Law.

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

     (b) Upon the giving of the notice to Borrower referred to in subsection (a) above in respect
of any such Eurodollar Loan, and provided the Borrower shall not have prepaid such Eurodollar Loan
pursuant to Section 2.11, (i) any outstanding such Eurodollar Loan of such Lender shall be
automatically converted to a Base Rate Loan in Dollars on the last day of the Interest Period then
applicable thereto or on such earlier date as required by law, and (ii) such Lender shall make or
continue its portion of any requested Borrowing of such Eurodollar Loan

45

 

as a Base Rate Loan in U.S.
Dollars, which Base Rate Loan shall, for all other purposes, be considered part of such Borrowing.

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

     Section 8.2. Unavailability of Deposits or Inability to Ascertain LIBOR Rate. If on
or before the first day of any Interest Period for any Borrowing of Eurodollar Loans the
Administrative Agent determines in good faith (after consultation with the other Lenders) that, due
to changes in circumstances since the date hereof, adequate and fair means do not exist for
determining the LIBOR Rate or such rate will not accurately reflect the cost to the Required
Lenders of funding Eurodollar Loans for such Interest Period, the Administrative Agent shall give
written notice (in reasonable detail) of such determination and of the basis therefor to the
Borrower and the Lenders, whereupon until the Administrative Agent notifies the Borrower and
Lenders that the circumstances giving rise to such suspension no longer exist (which the
Administrative Agent shall do promptly after they do not exist), and each Eurodollar Loan will
automatically on the last day of the then existing Interest Period therefor, convert into a Base
Rate Loan.

     Section 8.3. Increased Cost and Reduced Return.

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

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

     (ii) imposes, modifies or deems applicable any reserve, special deposit or similar
requirement (including, without limitation, any such requirement imposed by the Board of
Governors of the Federal Reserve System, but excluding for any Eurodollar Loan any such
requirement included in an applicable Statutory Reserve Rate) against

46

 

assets of, deposits
with or for the account of, or credit extended by, any Lender (or its applicable Lending
Office) or imposes on any Lender (or its Lending Office) or on the interbank market any
other condition affecting its Eurodollar Loans or its participation in
any thereof, or its obligation to advance or maintain Eurodollar Loans or participate
in any thereof;

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

     (b) If, after the date hereof, the Administrative Agent or any Lender shall have reasonably
determined that the adoption after the date hereof of any applicable law, rule or regulation
regarding capital adequacy, or any change therein (including, without limitation, any revision in
the Final Risk-Based Capital Guidelines of the Board of Governors of the Federal Reserve System (12
CFR Part 208, Appendix A; 12 CFR Part 225, Appendix A) or of the Office of the Comptroller of the
Currency (12 CFR Part 3, Appendix A), or in any other applicable capital adequacy rules heretofore
adopted and issued by any governmental authority), or any change after the date hereof in the
interpretation or administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance by the
Administrative Agent or any Lender (or its applicable Lending Office) with any request or directive
regarding capital adequacy (whether or not having the force of law) of any such authority, central
bank or comparable agency, has or would have the effect of reducing the rate of return on such
Lender’s capital, or on the capital of any corporation controlling such Lender, as a consequence of
its obligations hereunder to a level below that which such Lender could have achieved but for such
adoption, change or compliance (taking into consideration such Lender’s or its controlling
corporation’s policies with respect to capital adequacy in effect immediately before such adoption,
change or compliance) by an amount reasonably deemed by such Lender to be material, then, subject
to Section 8.3(c), from time to time, within thirty (30) days after its receipt of a certificate
from such Lender (with a copy to the Administrative Agent) pursuant to subsection (c) below setting
forth in reasonable detail such determination and the basis thereof, the Borrower shall pay to such
Lender such additional amount or amounts as will compensate such Lender for such reduction or the
Borrower may prepay all Eurodollar Loans of such Lender.

     (c) The Administrative Agent and each Lender that determines to seek compensation or
additional interest under this Section 8.3 shall give written notice to the Borrower and, in the
case of a Lender other than the Administrative Agent, the Administrative Agent of the circumstances
that entitle the Administrative Agent or such Lender to such compensation no later than ninety (90)
days after the Administrative Agent or such Lender receives actual notice or obtains actual
knowledge of the law, rule, order or interpretation or occurrence of another

47

 

event giving rise to a
claim hereunder. In any event the Borrower shall not have any obligation to pay any amount with
respect to claims accruing prior to the ninetieth day preceding such written demand. The
Administrative Agent and each Lender shall use reasonable efforts to avoid
the need for, or reduce the amount of, such compensation, additional interest, and any payment
under Section 3.3, including, without limitation, the designation of a different Lending Office, if
such action or designation will not, in the sole judgment of the Administrative Agent or such
Lender made in good faith, be otherwise disadvantageous to it; provided that the foregoing shall
not in any way affect the rights of any Lender or the obligations of the Borrower under this
Section 8.3, and provided further that no Lender shall be obligated to make its Eurodollar Loans
hereunder at any office located in the United States of America. A certificate of the
Administrative Agent or any Lender, as applicable, claiming compensation or additional interest
under this Section 8.3, and setting forth the additional amount or amounts to be paid to it
hereunder and accompanied by a statement prepared by the Administrative Agent or such Lender, as
applicable, describing in reasonable detail the calculations thereof shall be prima facie evidence
of the correctness thereof. In determining such amount, such Lender may use any reasonable
averaging and attribution methods.

     Section 8.4. Lending Offices. The Administrative Agent and each Lender may, at its
option, elect to make or maintain its Term Loans hereunder at the Lending Office for each Type of
Term Loan available hereunder or at such other of its branches, offices or affiliates as it may
from time to time elect and designate in a written notice to the Borrower and the Administrative
Agent, provided that, except in the case of any such transfer to another of its branches, offices
or affiliates made at the request of the Borrower, the Borrower shall not be responsible for the
costs arising under Section 3.3 or 8.3 resulting from any such transfer to the extent not otherwise
applicable to such Lender prior to such transfer.

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

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

48

 

Lender shall assign, in
accordance with the
provisions of Section 10.10 and an appropriately completed Assignment Agreement, all of its
rights and obligations under the Credit Documents to another Lender or a commercial banking
institution selected by the Borrower and (in the case of a commercial banking institution)
reasonably satisfactory to the Administrative Agent, in consideration for the payments set forth in
such Assignment Agreement and payment by the Borrower to such Lender of all other amounts which
such Lender may be owed pursuant to this Agreement, including, without limitation, Sections 2.13,
3.3, 8.3 and 10.13.

ARTICLE 9. THE AGENTS.

     Section 9.1. Appointment and Authorization of Administrative Agent. Each Lender
hereby appoints JPMorgan Chase Bank, N.A. as the Administrative Agent, under the Credit Documents
and hereby authorizes the Administrative Agent to take such action as the Administrative Agent on
such Lender’s behalf and to exercise such powers under the Credit Documents as are delegated to the
Administrative Agent by the terms thereof, together with such powers as are reasonably incidental
thereto.

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

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

49

 

Required Lenders,
or of any other group of Lenders called for under specific provisions of the Credit Documents,
shall be binding on all the Lenders and holders of Notes.

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

     Section 9.5. Indemnification Provisions; Credit Decision. Neither the Administrative
Agent nor any of its directors, officers, agents, or employees shall be liable for any action taken
or not taken by them in connection with the Credit Documents (i) with the consent or at the request
of the Required Lenders (or, if required by Section 10.11, all of the Lenders), or (ii) in the
absence of their own gross negligence or willful misconduct. Neither the Administrative Agent nor
any of its directors, officers, agents or employees shall be responsible for or have any duty to
ascertain, inquire into or verify (i) any statement, warranty or representation made in connection
with this Agreement, any other Credit Document or any Borrowing; (ii) the performance or observance
of any of the covenants or agreements of the Borrower or any Subsidiary contained herein or in any
other Credit Document; (iii) the satisfaction of any condition specified in Article 4, except
receipt of items required to be delivered to the Administrative Agent; or (iv) the validity,
effectiveness, genuineness, enforceability, value, worth or collectibility hereof or of any other
Credit Document or of any other documents or writings furnished in connection with any Credit
Document; and the Administrative Agent makes no representation of any kind or character with
respect to any such matters mentioned in this sentence. The Administrative Agent may execute any
of its duties under any of the Credit Documents by or through employees, agents, and
attorneys-in-fact and shall not be answerable to the Lenders or any other Person for the default or
misconduct of any such agents or attorneys-in-fact selected with reasonable care. The
Administrative Agent shall not incur any liability by acting in reliance upon any notice, consent,
certificate, other document or statement (whether written or oral) believed by it to be genuine or
to be sent by the proper party or parties. In particular and without limiting any of the
foregoing, the Administrative Agent shall have no responsibility for confirming the accuracy of any
Compliance Certificate or other document or instrument received by any of them under the Credit
Documents. The Administrative Agent may treat the payee of any Note as the holder thereof until
written notice of transfer shall have been filed with such Administrative Agent signed by such
owner in form satisfactory to such Administrative Agent. Each Lender acknowledges that it has
independently, and without reliance on the Administrative Agent or any other Lender, obtained such
information and made such investigations and inquiries regarding the Borrower and its Subsidiaries
as it deems appropriate, and based upon such information, investigations and inquiries, made its
own credit analysis and decision to extend credit to the Borrower in the manner set forth in the
Credit Documents. It shall be the responsibility of each Lender to keep itself informed about the
creditworthiness and business, properties, assets, liabilities, condition (financial or otherwise)
and prospects of the Borrower and its Subsidiaries, and the Administrative Agent shall have no
liability whatsoever to any Lender for such matters. The Administrative Agent shall have no duty
to disclose to the Lenders information that is not required by any Credit Document to be furnished
by the Borrower or any Subsidiaries to such Agent at such time, but is voluntarily furnished to the
Administrative Agent (whether in such capacity or in its individual capacity).

50

 

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

     Section 9.7. Resignation of Administrative Agent. The Administrative Agent may resign
at any time and shall resign upon any removal thereof as a Lender pursuant to the terms of this
Agreement upon at least thirty (30) days’ prior written notice to the Lenders and the Borrower.
Any resignation of the Administrative Agent shall not be effective until a replacement therefor is
appointed pursuant to the terms hereof. Upon any such resignation of the Administrative Agent, the
Required Lenders and, so long as no Event of Default shall then exist, with the consent of the
Borrower (which consent shall not be unreasonably withheld or delayed) shall have the right to
appoint a successor Administrative Agent. If no successor Administrative Agent shall have been so
appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days
after the retiring Administrative Agent’s giving of notice of resignation, then the retiring
Administrative Agent may, on behalf of the Lenders and, so long as no Event of Default shall then
exist, with the consent of the Borrower (which consent shall not be unreasonably withheld or
delayed) appoint a successor Administrative Agent, which shall be any Lender hereunder or any
commercial bank organized under the laws of the United States of America or of any State thereof
and having a combined capital and surplus of at least $1,000,000,000. Upon the acceptance of its
appointment as the Administrative Agent hereunder, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights and duties of the retiring
Administrative Agent under the Credit Documents, and the retiring Administrative Agent shall be
discharged from its duties and obligations thereunder. After any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of this Article 9 and all protective
provisions of the other Credit Documents shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent.

     Section 9.8. Other Agents. Anything herein to the contrary notwithstanding, none of
the Co-Lead Arrangers, the Syndication Agent, or the Co-Documentation Agents identified in this
Agreement shall have any powers, duties or responsibilities whatsoever under this Agreement or any
of the other Credit Documents, except in its capacity, as applicable, as the Administrative Agent
or a Lender as expressly provided herein.

ARTICLE 10. MISCELLANEOUS.

     Section 10.1. No Waiver. No delay or failure on the part of the Administrative Agent
or any Lender, or on the part of the holder or holders of any Notes, in the exercise of any power,
right or remedy under any Credit Document shall operate as a waiver thereof or as an

51

 

acquiescence
in any default, nor shall any single or partial exercise thereof preclude any other or further
exercise of any other power, right or remedy. To the fullest extent permitted by applicable law,
the powers, rights and remedies under the Credit Documents of the Administrative Agent, the Lenders
and the holder or holders of any Notes are cumulative to, and not exclusive of, any powers, rights
or remedies any of them would otherwise have.

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

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

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

     Section 10.5. Survival of Indemnities. All indemnities and all provisions relative to
reimbursement to the Lenders of amounts sufficient to protect the yield of the Lenders with respect
to the Loans, including, but not limited to, Section 2.13, Section 3.3, Section 7.6, Section 8.3,
Section 10.3, and Section 10.13 hereof,
shall, subject to Section 8.3(c), survive the termination of this Agreement and the other
Credit Documents and the payment of the Term Loans and all other Obligations and, with respect to
any Lender, any replacement by the Borrower of such Lender pursuant to the terms hereof, in each
case for a period of one (1) year.

     Section 10.6. Setoff. In addition to any rights now or hereafter granted under
applicable law and not by way of limitation of any such rights, upon the occurrence of, and
throughout the continuance of, any Event of Default, each Lender and each subsequent holder of any
Note is hereby authorized by the Borrower at any time or from time to time, without notice to the
Borrower or any other Person, any such notice being hereby expressly waived, to set off and to
appropriate and to apply any and all deposits (general or special, including, but not limited to,
Indebtedness evidenced by certificates of deposit, whether matured or unmatured, but not

52

 

including
trust accounts, and in whatever currency denominated) and any other Indebtedness at any time owing
by that Lender or that subsequent holder to or for the credit or the account of the Borrower,
whether or not matured, against and on account of the due and unpaid obligations and liabilities of
the Borrower to that Lender or that subsequent holder under the Credit Documents, irrespective of
whether or not that Lender or that subsequent holder shall have made any demand hereunder. Each
Lender shall promptly give notice to the Borrower of any action taken by it under this Section
10.6, provided that any failure of such Lender to give such notice to the Borrower shall not affect
the validity of such setoff. Each Lender agrees with each other Lender a party hereto that if such
Lender receives and retains any payment, whether by setoff or application of deposit balances or
otherwise, in respect of the Term Loans in excess of its ratable share of payments on all such
Obligations then owed to the Lenders hereunder, then such Lender shall purchase for cash at face
value, but without recourse, ratably from each of the other Lenders such amount of the Term Loans
and participations therein held by each such other Lender as shall be necessary to cause such
Lender to share such excess payment ratably with all the other Lenders; provided, however, that if
any such purchase is made by any Lender, and if such excess payment or part thereof is thereafter
recovered from such purchasing Lender, the related purchases from the other Lenders shall be
rescinded ratably and the purchase price restored as to the portion of such excess payment so
recovered, but without interest.

     Section 10.7. Notices. Except as otherwise specified herein, all notices under the
Credit Documents shall be in writing (including cable, telecopy or telex) and shall be given to a
party hereunder at its address, telecopier number or telex number set forth below or such other
address, telecopier number or telex number as such party may hereafter specify by notice to the
Administrative Agent and the Borrower, given by courier, by United States certified or registered
mail, by telegram or by other telecommunication device capable of creating a written record of such
notice and its receipt. Notices under the Credit Documents to the Lenders shall be addressed to
their respective Lending Offices in the United States at the respective addresses, telecopier or
telex number, or telephone numbers set forth on their applicable Administrative Questionnaire or,
in the case of Persons becoming Lenders pursuant to Assignment Agreements, on their applicable
Assignment Agreements, and to the Borrower, the Administrative Agent:

	 	 	 
	To the Borrower:

	 	Transocean Inc.
	 

	 	4 Greenway Plaza
	 

	 	Houston, Texas 77046
	 

	 	Attention: Randal Miller
	 

	 	Telephone No.: (713) 232-7173
	 

	 	Fax No.: (713) 232-7766
	 
	 	 
	With a copy to:
	 	 
	 

	 	Baker Botts LLP
	 

	 	One Shell Plaza
	 

	 	Houston, Texas 77002-4995
	 

	 	Attention: Stephen Krebs
	 

	 	Telephone No. (713) 229-1467
	 

	 	Fax No.: (713) 229-1522

53

 

	 	 	 
	To the Administrative Agent:

	 	JPMorgan Chase Bank, N.A.
	 

	 	707 Travis, 8th Floor
	 

	 	Houston, TX 77002
	 

	 	Attention: Debra Harris
	 

	 	Telephone No.: (713) 216-5733
	 

	 	Fax No.: (713) 216-4651
	 
	 	 
	With copies to:

	 	JPMorgan Chase Bank, N.A.
	 

	 	600 Travis Street, Floor 20
	 

	 	Houston, TX 77002
	 

	 	Attention: Helen Carr
	 

	 	Telephone No.: (713) 216-7711
	 

	 	Fax No.: (713) 216-7794
	 
	 	 
	 

	 	King & Spalding LLP
	 

	 	1180 Peachtree Street, N.E.
	 

	 	Atlanta, Georgia 30309-3521
	 

	 	Attention: A.H. Conrad, Jr.
	 

	 	Telephone No.: (404) 572-4807
	 

	 	Fax Number: (404) 572-5128

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

     Section 10.8. Counterparts. This Agreement may be executed in any number of
counterparts, and by the different parties on different counterpart signature pages, each of which
when executed shall be deemed an original, but all such counterparts taken together shall
constitute one and the same Agreement.

     Section 10.9. Successors and Assigns. This Agreement shall be binding upon the
Borrower, each of the Lenders, the Administrative Agent, and their respective successors and
assigns, and shall inure to the benefit of the Borrower, each of the Lenders, the Administrative
Agent, and their respective successors and assigns, including any subsequent holder of any Note;
provided, however, the Borrower may not assign any of its rights or obligations under this
Agreement or any other Credit Document without the written consent of all Lenders and the
Administrative Agent, and the Administrative Agent may not assign any of its rights or obligations
under this Agreement or any Credit Document except in accordance with Article 9,

54

 

and no Lender may
assign any of its rights or obligations under this Agreement or any other Credit Document except in
accordance with Section 10.10. Any Lender may at any time pledge or assign all or any portion of
its rights under this Agreement and the Notes issued to it (i) to a Federal Reserve Bank to secure
extensions of credit by such Federal Reserve Bank to such Lender, or (ii) in the case of any Lender
that is a fund comprised in whole or in part of commercial loans, to a trustee for such fund in
support of such Lender’s obligations to such trustee; provided that no such pledge or assignment
shall release a Lender from any of its obligations hereunder or substitute any such Federal Reserve
Bank or such trustee for such Lender as a party hereto and the Borrower, the Administrative Agent
and the other Lenders shall continue to deal solely with such Lender in connection with the rights
and obligations of such Lender under this Agreement.

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

     (a) Any Lender may, upon written notice to the Borrower and the Administrative Agent, at any
time sell to one or more commercial banking or other financial or lending institutions
(“Participants") participating interests in the Commitment of such Lender hereunder, provided that
no Lender may sell any participating interests (other than in the case of affiliates of such
Lender) in such Commitment hereunder without also selling to such Participant the appropriate pro
rata share of all such Lender’s Commitment, and provided further that no Lender shall transfer,
grant or assign any participation under which the Participant shall have rights to vote upon or to
consent to any matter to be decided by the Lenders or the Required Lenders hereunder or under any
other Credit Document or to approve any amendment to or waiver of this Agreement or any other
Credit Document except to the extent such amendment or waiver would (i) increase the amount of such
Lender’s Commitment and such increase would affect such Participant, (ii) reduce the principal of,
or interest on, any of such Lender’s Borrowings, or any fees or other amounts payable to such
Lender hereunder and such reduction would affect such Participant, (iii) postpone any date fixed
for any scheduled payment of
principal of, or interest on, any of such Lender’s Borrowings, or any fees or other amounts
payable to such Lender hereunder and such postponement would affect such Participant, or (iv)
release any collateral security for any Obligation, except as otherwise specifically provided in
any Credit Document. In the event of any such sale by a Lender of participating interests to a
Participant, such Lender’s obligations under this Agreement to the other parties to this Agreement
shall remain unchanged, such Lender shall remain solely responsible for the performance thereof,
such Lender shall remain the holder of any such Note for all purposes under this Agreement, the
Borrower and the Administrative Agent shall continue to deal solely and directly with such Lender
in connection with such Lender’s rights and obligations under this Agreement and such Lender shall
retain the sole right to enforce the obligations of the Borrower under any Credit Document. The
Borrower agrees that if amounts outstanding under this Agreement and the Notes shall have been
declared or shall have become due and payable in accordance with Section 7.2 or 7.3 upon the
occurrence of an Event of Default, each Participant shall be deemed to have the right of setoff in
respect of its participating interest in amounts owing under this Agreement and any Note to the
same extent as if the amount of its participating interest were owing directly to it as a Lender
under this Agreement or any Note, provided that such right of setoff shall be subject to the
obligation of such Participant to share with the

55

 

Lenders, and the Lenders agree to share with such
Participant, as provided in Section 10.6. The Borrower also agrees that each Participant shall be
entitled to the benefits of and have the obligations under Sections 2.13, 3.3 and 8.3 with respect
to its participation in the Commitments and the Borrowings outstanding from time to time, provided
that no Participant shall be entitled to receive any greater amount pursuant to such Sections than
the transferor Lender would have been entitled to receive in respect of the amount of the
participation transferred if no participation had been transferred and provided, further, that
Sections 8.3(c) and 8.6 shall apply to the transferor Lender with respect to any claim by any
Participant pursuant to Section 2.13, 3.3 or 8.3 as fully as if such claim was made by such Lender.
Anything herein to the contrary notwithstanding, the Borrower shall not, at any time, be obligated
to pay to any Lender any sum in excess of the sum the Borrower would have been obligated to pay to
such Lender hereunder if such Lender had not sold any participation in its rights and obligations
under this Agreement or any other Credit Document.

     (b) Any Lender may at any time sell to (i) any of such Lender’s affiliates or to any other
Lender or any affiliate thereof that, in each case, is a commercial banking or other financial or
lending institution not subject to Regulation T of the Board of Governors of the Federal Reserve
System and, (ii) with the prior written consent (which shall not be unreasonably withheld or
delayed) of the Administrative Agent and the Borrower, to one or more commercial banking or other
financial or lending institutions not subject to Regulation T of the Board of Governors of the
Federal Reserve System (any of (i) or (ii), a “Purchasing Lender"), all or any part of its rights
and obligations under this Agreement and the other Credit Documents, pursuant to an Assignment
Agreement in the form attached as Exhibit 10.10, executed by such Purchasing Lender and
such transferor Lender (and, in the case of a Purchasing Lender which is not then a Lender or an
affiliate thereof, by the Borrower and the Administrative Agent) and delivered to the
Administrative Agent; provided that each such sale to a Purchasing Lender (other than an existing
Lender) shall be in the Dollar Equivalent amount of $5,000,000 or more, or if in a lesser amount or
if as a result of such sale the sum of the unfunded Commitment of such Lender plus the aggregate
principal amount of such Lender’s Terms Loans would be less than the Dollar
Equivalent amount of $5,000,000, such sale shall be of all of such Lender’s rights and
obligations under this Agreement and all of the other Credit Documents payable to it to one
Purchasing Lender. Notwithstanding the requirement of the Borrower’s consent set forth above, but
subject to all of the other terms and conditions of this Section 10.10(b), any Lender may sell to
one or more commercial banking or other financial or lending institutions not subject to Regulation
T of the Board of Governors of the Federal Reserve System, all or any part of their rights and
obligations under this Agreement and the other Credit Documents with only the consent of the
Administrative Agent (which shall not be unreasonably withheld or delayed) if an Event of Default
shall have occurred and be continuing. Upon such execution, delivery and acceptance, from and
after the effective date of the transfer determined pursuant to such Assignment Agreement, (x) the
Purchasing Lender thereunder shall be a party hereto and, to the extent provided in such Assignment
Agreement, have the rights and obligations of a Lender hereunder with a Commitment as set forth
herein and (y) the transferor Lender thereunder shall, to the extent provided in such Assignment
Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment
Agreement covering all or the remaining portion of a transferor Lender’s rights and obligations
under this Agreement, such transferor Lender shall cease to be a party hereto). Such Assignment
Agreement shall be deemed to amend this

56

 

Agreement to the extent, and only to the extent, necessary
to reflect the addition of such Purchasing Lender and the resulting adjustment of Commitments and
Percentages arising from the purchase by such Purchasing Lender of all or a portion of the rights
and obligations of such transferor Lender under this Agreement, the Notes and the other Credit
Documents. On or prior to the effective date of the transfer determined pursuant to such
Assignment Agreement, the Borrower, at its own expense, shall upon reasonable notice from the
Administrative Agent execute and deliver to the Administrative Agent in exchange for any
surrendered Note, a new Note as appropriate to the order of such Purchasing Lender in an amount
equal to the Commitments assumed by it pursuant to such Assignment Agreement, and, if the
transferor Lender has retained a Commitment or Borrowing hereunder, a new Note to the order of the
transferor Lender in an amount equal to the Commitments or Borrowings retained by it hereunder.
Such new Notes shall be dated the Initial Availability Date and shall otherwise be in the form of
the Notes replaced thereby. The Notes surrendered by the transferor Lender shall be returned by
the Administrative Agent to the Borrower marked “cancelled.”

     (c) Upon its receipt of an Assignment Agreement executed by a transferor Lender and a
Purchasing Lender (and, in the case of a Purchasing Lender that is not then a Lender or an
affiliate thereof, by the Administrative Agent and, to the extent required by Section 10.10(b), by
the Borrower), together with payment by the transferor Lender to the Administrative Agent hereunder
of a registration and processing fee of $3,500 (unless the Borrower is replacing such Lender
pursuant to the terms hereof, in which event such fee shall be paid by the Borrower), the
Administrative Agent shall (i) promptly accept such Assignment Agreement, and (ii) on the effective
date of the transfer determined pursuant thereto give notice of such acceptance and recordation to
the Lenders and the Borrower. The Borrower shall not be responsible for such registration and
processing fee or any costs or expenses incurred by any Lender, any Purchasing Lender or the
Administrative Agent in connection with such assignment except as provided above.

     (d) If, pursuant to this Section 10.10 any interest in this Agreement or any Term Loan or Note
is transferred to any transferee which is organized under the laws of any jurisdiction other than
the United States of America or any State thereof, the transferor Lender shall cause such
transferee, concurrently with the effectiveness of such transfer, (i) to represent to the
transferor Lender (for the benefit of the transferor Lender, the Administrative Agent and the
Borrower) that under applicable law and treaties no taxes will be required to be withheld by the
Administrative Agent, the Borrower or the transferor Lender with respect to any payments to be made
to such transferee in respect of the Term Loans, (ii) to furnish to the transferor Lender (and, in
the case of any Purchasing Lender, the Administrative Agent and the Borrower) two duly completed
and signed copies of either U.S. Internal Revenue Service Form W-8BEN or U.S. Internal Revenue
Service Form W-8ECI or such successor forms as shall be adopted from time to time by the relevant
United States taxing authorities (wherein such transferee claims entitlement to complete exemption
from U.S. federal withholding tax on all interest payments hereunder), and (iii) to agree (for the
benefit of the transferor Lender, the Administrative Agent and the Borrower) to provide the
transferor Lender (and, in the case of any Purchasing Lender, the Administrative Agent and the
Borrower) new forms as contemplated by Section 3.3(b) upon the expiration or obsolescence of any
previously delivered form and comparable statements in accordance with applicable U.S. laws and
regulations and amendments duly executed and

57

 

completed by such transferee, and to comply from time
to time with all applicable U.S. laws and regulations with regard to such withholding tax
exemption.

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

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

     (i) no amendment or waiver shall (A) increase the Term Credit Aggregate Commitment
Amount without the consent of all Lenders or increase the Commitment of any Lender without
the consent of such Lender, or (B) postpone the Commitment Termination Date or Maturity Date
without the consent of all Lenders, or reduce the amount of or postpone the date for any
scheduled payment of any principal of or interest (including, without limitation, any
reduction in the rate of interest unless such reduction is otherwise provided herein) on any
Term Loan or of any fee payable hereunder, without the consent of each Lender owed any such
Obligation; and

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

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

     Section 10.13. Legal Fees, Other Costs and Indemnification. The Borrower, upon demand
by the Administrative Agent, agrees to pay the reasonable fees and disbursements of legal counsel
to the Administrative Agent in connection with the preparation and execution of the Credit
Documents (which shall be in an amount agreed in writing by the Borrower), and any amendment,
waiver or consent related thereto, whether or not the transactions contemplated therein are
consummated. The Borrower further agrees to indemnify each Lender, the Administrative Agent and
their respective directors, officers, employees and attorneys (collectively, the “Indemnified
Parties”), against all losses, claims, damages, penalties, judgments, liabilities and expenses
(including, without limitation, all reasonable attorneys’ fees and other reasonable expenses of
litigation or preparation therefor, whether or not such Indemnified Party is a party thereto)
which any of them may pay or incur as a result of (a) any action, suit or proceeding by any third
party or Governmental Authority against such Indemnified Party and relating to any Credit Document,
the Term Loans, or the application or proposed application by any of the Borrower of the proceeds
of any Term Loan REGARDLESS OF WHETHER SUCH CLAIMS OR ACTIONS ARE FOUNDED IN WHOLE OR IN

58

 

PART UPON
THE ALLEGED SIMPLE OR CONTRIBUTORY NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES AND/OR ANY OF THEIR
RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES OR ATTORNEYS, (b) any investigation of any third party or
any Governmental Authority involving any Lender (as a lender hereunder), or the Administrative
Agent (in such capacity hereunder) and related to any use made or proposed to be made by the
Borrower of the proceeds of any Term Loan or any transaction financed or to be financed in whole or
in part, directly or indirectly with the proceeds of any Term Loan, and (c) any investigation of
any third party or any Governmental Authority, litigation or proceeding involving any Lender (as a
lender hereunder) or the Administrative Agent (in such capacity hereunder) and related to any
environmental cleanup, audit, compliance or other matter relating to any Environmental Law or the
presence of any Hazardous Material (including, without limitation, any losses, liabilities,
damages, injuries, costs, expenses or claims asserted or arising under any Environmental Law) with
respect to the Borrower, regardless of whether caused by, or within the control of, the Borrower;
provided, however, that the Borrower shall not be obligated to indemnify any Indemnified Party for
any of the foregoing arising out of such Indemnified Party’s gross negligence or willful
misconduct, as determined pursuant to a judgment of a court of competent jurisdiction or as
expressly agreed in writing by such Indemnified Party. The Borrower, upon demand by the
Administrative Agent or a Lender at any time, shall reimburse the Administrative Agent or such
Lender for any reasonable legal or other expenses incurred in connection with investigating or
defending against any of the foregoing, except if the same is excluded from indemnification
pursuant to the provisions of the preceding sentence. Each Indemnified Party agrees to contest any
indemnified claim if requested by the Borrower, in a manner reasonably directed by the Borrower,
with counsel selected by the Indemnified Party and approved by the Borrower, which approval shall
not be unreasonably withheld or delayed. Any Indemnified Party that proposes or intends to settle
or compromise any such indemnified claim shall give the Borrower written notice of the terms of
such settlement or compromise reasonably
in advance of settling or compromising such claim or proceeding and shall obtain the
Borrower’s prior written consent thereto, which consent shall not be unreasonably withheld or
delayed; provided that the Indemnified Party shall not be restricted from settling or compromising
any such claim if the Indemnified Party waives its right to indemnity from the Borrower in respect
of such claim and such settlement or compromise does not materially increase the Borrower’s
liability pursuant to this Section 10.13 to any related party of such Indemnified Party.

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

     (A) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS, AND THE RIGHTS AND DUTIES OF THE PARTIES
THERETO, SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF
NEW YORK.

     (B) TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HERETO AGREE THAT ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY
OTHER CREDIT DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR
WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT, THE LENDERS, OR THE BORROWER MAY BE

59

 

BROUGHT AND
MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN OR THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY AGREES TO BE
BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION. THE BORROWER HEREBY
IRREVOCABLY DESIGNATES CT CORPORATION SYSTEM, 111 8TH AVENUE, NEW YORK, NEW YORK 10011, AS THE
DESIGNEE, APPOINTEE AND AGENT OF THE BORROWER TO RECEIVE, FOR AND ON BEHALF OF THE BORROWER,
SERVICE OF PROCESS IN SUCH JURISDICTION IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT HERETO. TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE BORROWER FURTHER IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS, BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT
THE STATE OF NEW YORK. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE BORROWER HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE
LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM
THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT THE
BORROWER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY
LEGAL PROCESS (WHETHER THROUGH SERVICE OF NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID
OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE BORROWER HEREBY IRREVOCABLY
WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, SUCH IMMUNITY IN RESPECT OF ITS
OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS.

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

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

60

 

PARTY
TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

     Section 10.15. Confidentiality. Each of the Agents and Lenders agree to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (i)
to their respective affiliates and to prospective Purchasing Lenders and Participants and their
respective directors, officers, employees and agents, including accountants, legal counsel and
other advisors who have reason to use such Information in connection with the evaluation of the
transactions contemplated by this Agreement (subject to similar confidentiality provisions as
provided herein) solely for purposes of evaluating such Information, (ii) to the extent requested
by any regulatory authority, (iii) to the extent required by applicable law or regulation or by any
subpoena or similar legal process, (iv) in connection with the exercise of any remedies hereunder
or any proceedings relating to this Agreement or the other Credit Documents, (v) with the consent
of the Borrower, or (vi) to the extent such Information (x) becomes publicly available other than
as a result of a breach of this Section 10.15, or (y) becomes available on a non-confidential basis
from a source other than the Borrower or its affiliates, or the Lenders or their respective
affiliates, excluding any Information from such source which, to the actual knowledge of the Agent
or Lender receiving such Information, has been disclosed by such source in violation of a duty of
confidentiality to the Borrower. For purposes hereof, “Information” means all information received
by the Lenders from the Borrower relating to the Borrower or its business, other than any such
information that is available to the Lenders on a non-confidential basis prior to disclosure by the
Borrower, excluding any Information from a source which, to the actual knowledge of the Agent or
Lender receiving such Information, has been disclosed by such
source in violation of a duty of confidentiality to the Borrower. The Lenders shall be
considered to have complied with their respective obligations if they have exercised the same
degree of care to maintain the confidentiality of such Information as they would accord their own
confidential information. Notwithstanding anything herein to the contrary, any party to this
Agreement (and any employee, representative, or other agent of any party to this Agreement) may
disclose to any and all persons, without limitation of any kind, the tax treatment and tax
structure of the transactions contemplated by this Agreement and all materials of any kind
(including opinions or other tax analyses) that are provided to it relating to such tax treatment
and tax structure. However, any such information relating to the tax treatment or tax structure is
required to be kept confidential to the extent necessary to comply with any applicable federal or
state securities laws.

     Section 10.16. Effectiveness. This Agreement shall become effective on the date (the
"Effective Date”) on which the Borrower, the Administrative Agent, and each Lender have signed and
delivered to the Administrative Agent a counterparty signature page hereto (including by facsimile
or other electronic means) or the Administrative Agent has received a facsimile notice that such a
counterpart has been signed and mailed to the Administrative Agent.

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

61

 

     Section 10.18. Change in Accounting Principles, Fiscal Year or Tax Laws. If (i) any
change in accounting principles from those used in the preparation of the financial statements of
the Borrower referred to in Section 5.9 is hereafter occasioned by the promulgation of rules,
regulations, pronouncements and opinions by or required by the Financial Accounting Standards Board
or the American Institute of Certified Public Accounts (or successors thereto or agencies with
similar functions), and such change materially affects the calculation of any component of any
financial covenant, standard or term found in this Agreement, or (ii) there is a material change in
federal, state or foreign tax laws which materially affects any of the Borrower and its
Subsidiaries’ ability to comply with the financial covenants, standards or terms found in this
Agreement, the Borrower and the Lenders agree to enter into negotiations in order to amend such
provisions (with the agreement of the Required Lenders or, if required by Section 10.11, all of the
Lenders) so as to equitably reflect such changes with the desired result that the criteria for
evaluating any of the Borrower’s and its Subsidiaries’ financial condition shall be the same after
such changes as if such changes had not been made. Unless and until such provisions have been so
amended, the provisions of this Agreement shall govern.

     Section 10.19. Final Agreement. The Credit Documents constitute the entire
understanding among the Credit Parties, the Lenders and the Administrative Agent and supersede all
earlier or contemporaneous agreements, whether written or oral, concerning the subject matter of
the Credit Documents. THIS
WRITTEN AGREEMENT TOGETHER WITH THE OTHER CREDIT DOCUMENTS REPRESENTS THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

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

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

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

62

 

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

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSOCEAN INC.,	 	 
	 	 	As Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Randal P. Miller	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Randal P. Miller	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,	 	 
	 	 	As Administrative Agent	 	 
	 	 	and a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Helen A. Carr	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Helen A. Carr	 	 
	 

	 	Title:
	 	Managing Director	 	 

	 	 	 	 	 
	COMMITMENT AMOUNT:
	 	$	200,000,000.00	 
	 
	 	 	 	 
	PERCENTAGE:
	 	 	20.000000	%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 	 	 
	 	 	CITIBANK, N.A.,	 	 
	 	 	As Syndication Agent	 	 
	 	 	and a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert H. Malleck	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Robert H. Malleck	 	 
	 

	 	Title:
	 	Vice President	 	 

	 	 	 	 	 
	COMMITMENT AMOUNT:
	 	$	200,000,000.00	 
	 
	 	 	 	 
	PERCENTAGE:
	 	 	20.000000	%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI
	 	 	   UFJ, LTD.,
	 	 	As Co-Documentation Agent
	 	 	and a Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kelton Glasscock
	 

	 	 	 	 
	 

	 	Name:	 	Kelton Glasscock
	 

	 	Title:	 	Vice President & Manager

	 	 	 	 	 
	COMMITMENT AMOUNT:
	 	$	200,000,000.00	 
	 
	 	 	 	 
	PERCENTAGE:
	 	 	20.000000	%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 	 	 
	 	 	CALYON NEW YORK BRANCH,	 	 
	 	 	As Co-Documentation Agent	 	 
	 	 	and a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Page Dillehunt	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Page Dillehunt	 	 
	 

	 	Title:	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael D. Willis	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Michael D. Willis	 	 
	 

	 	Title:	 	Director	 	 

	 	 	 	 	 
	COMMITMENT AMOUNT:
	 	$	200,000,000.00	 
	 
	 	 	 	 
	PERCENTAGE:
	 	 	20.000000	%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]

 

 

	 	 	 	 	 	 	 
	 	 	THE ROYAL BANK OF SCOTLAND PLC,
	 	 	As Co-Documentation Agent	 	 
	 	 	and a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Paul McDonagh	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Paul McDonagh	 	 
	 

	 	Title:
	 	Managing Director	 	 

	 	 	 	 	 
	COMMITMENT AMOUNT:
	 	$	200,000,000.00	 
	 
	 	 	 	 
	PERCENTAGE:
	 	 	20.000000	%

[SIGNATURE PAGE TO TERM CREDIT AGREEMENT]exv10w1

 

AMENDED AND RESTATED CIENA CORPORATION

2003 EMPLOYEE STOCK PURCHASE PLAN

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	1.	 	SHARES SUBJECT TO THE PLAN 
	 	 	1	 
	 	 	 
	 	 	 	 
	2.	 	ADMINISTRATION 
	 	 	1	 
	 	 	 
	 	 	 	 
	3.	 	INTERPRETATION 
	 	 	1	 
	 	 	 
	 	 	 	 
	4.	 	ELIGIBLE EMPLOYEES 
	 	 	2	 
	 	 	 
	 	 	 	 
	5.	 	PARTICIPATION IN THE PLAN 
	 	 	2	 
	 	 	 
	 	 	 	 
	6.	 	PAYROLL DEDUCTIONS 
	 	 	2	 
	 	 	 
	 	 	 	 
	7.	 	RECORD OF PAYROLL DEDUCTIONS 
	 	 	3	 
	 	 	 
	 	 	 	 
	8.	 	OFFERING AND PURCHASE PERIODS 
	 	 	3	 
	 	 	 
	 	 	 	 
	9.	 	RIGHTS TO PURCHASE COMMON STOCK; PURCHASE PRICE 
	 	 	3	 
	 	 	 
	 	 	 	 
	10.	 	TIMING OF PURCHASE; PURCHASE LIMITATION 
	 	 	4	 
	 	 	 
	 	 	 	 
	11.	 	ISSUANCE OF STOCK CERTIFICATES 
	 	 	4	 
	 	 	 
	 	 	 	 
	12.	 	WITHHOLDING OF TAXES 
	 	 	5	 
	 	 	 
	 	 	 	 
	13.	 	ACCOUNT STATEMENTS 
	 	 	5	 
	 	 	 
	 	 	 	 
	14.	 	PARTICIPATION ADJUSTMENT 
	 	 	5	 
	 	 	 
	 	 	 	 
	15.	 	CHANGES IN ELECTIONS TO PURCHASE 
	 	 	5	 
	 	 	 
	 	 	 	 
	16.	 	TERMINATION OF EMPLOYMENT 
	 	 	6	 
	 	 	 
	 	 	 	 
	17.	 	RETIREMENT 
	 	 	6	 
	 	 	 
	 	 	 	 
	18.	 	LAY-OFF, AUTHORIZED LEAVE OF ABSENCE OR DISABILITY 
	 	 	6	 
	 	 	 
	 	 	 	 
	19.	 	DEATH 
	 	 	7	 
	 	 	 
	 	 	 	 
	20.	 	TERMINATION OF PARTICIPATION 
	 	 	8	 
	 	 	 
	 	 	 	 
	21.	 	ASSIGNMENT 
	 	 	8	 

- i -

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	22.	 	APPLICATION OF FUNDS 
	 	 	8	 
	 	 	 
	 	 	 	 
	23.	 	NO RIGHT TO CONTINUED EMPLOYMENT 
	 	 	8	 
	 	 	 
	 	 	 	 
	24.	 	AMENDMENT OF PLAN 
	 	 	9	 
	 	 	 
	 	 	 	 
	25.	 	EFFECTIVE DATE; TERM AND TERMINATION OF THE PLAN 
	 	 	9	 
	 	 	 
	 	 	 	 
	26.	 	EFFECT OF CHANGES IN CAPITALIZATION 
	 	 	9	 
	 	 	 
	 	 	 	 
	 	 	(a) Changes in Stock 
	 	 	9	 
	 	 	 
	 	 	 	 
	 	 	(b) Reorganization in Which the Company Is the Surviving Corporation
	 	 	10	 
	 	 	 
	 	 	 	 
	 	 	(c) Reorganization in Which the Company Is Not the Surviving Corporation or Sale of Assets or Stock
	 	 	10	 
	 	 	 
	 	 	 	 
	 	 	(d) Adjustments 
	 	 	11	 
	 	 	 
	 	 	 	 
	 	 	(e) No Limitations on Company 
	 	 	11	 
	 	 	 
	 	 	 	 
	27.	 	GOVERNMENTAL REGULATION 
	 	 	11	 
	 	 	 
	 	 	 	 
	28.	 	STOCKHOLDER RIGHTS 
	 	 	11	 
	 	 	 
	 	 	 	 
	29.	 	RULE 16B-3 
	 	 	11	 
	 	 	 
	 	 	 	 
	30.	 	PAYMENT OF PLAN EXPENSES 
	 	 	12	 

- ii -

 

AMENDED AND RESTATED CIENA CORPORATION

2003 EMPLOYEE STOCK PURCHASE PLAN

     The Board of Directors of Ciena Corporation (the “Company”) has adopted this Amended and
Restated 2003 Employee Stock Purchase Plan (the “Plan”) to enable eligible employees of the Company
and its participating Affiliates (as defined below), through payroll deductions, to purchase shares
of the Company’s common stock, par value $0.01 per share (the “Common Stock”). The Plan is for
the benefit of the employees of the Company and any participating Affiliates. The Plan is intended
to benefit the Company by increasing the employees’ interest in the Company’s growth and success
and encouraging employees to remain in the employ of the Company or its participating Affiliates.
The provisions of the Plan are set forth below:

1. SHARES SUBJECT TO THE PLAN.

     Subject to adjustment as provided in Section 26 below, the aggregate number of shares of
Common Stock that may be made available for purchase by participating employees under the Plan is
25,000,000 shares; provided, that, beginning on December 31, 2005 and on each December 31
thereafter (the “Determination Date) there shall be added to the Plan an additional 4,000,000
shares; and provided further that, the number of shares so added on the Determination Date each
year shall be reduced to the extent necessary that the total number of shares available for
purchase under the Plan shall not at any time exceed 25,000,000. The shares issuable under
the Plan may, in the discretion of the Board of Directors of the Company (the “Board”), be
authorized but unissued shares, treasury shares or issued and outstanding shares that are purchased
in the open market.

2. ADMINISTRATION.

     The Plan shall be administered under the direction of the Compensation Committee of the Board
(the “Committee”). No member of the Board or the Committee shall be liable for any action or
determination made in good faith with respect to the Plan.

3. INTERPRETATION.

     It is intended that the Plan will meet the requirements for an “employee stock purchase plan”
under Section 423 of the Internal Revenue Code of 1986 (the “Code”), and it is to be so applied and
interpreted. Subject to the express provisions of the Plan, the Committee shall have authority to
interpret the Plan, to prescribe, amend and rescind rules relating to it, and to make all other
determinations necessary or advisable in administering the Plan, all of which determinations will
be final and binding upon all persons.

- 1 -

 

4. ELIGIBLE EMPLOYEES.

     Any employee of the Company and its designated Affiliates as determined by the Board of
Directors may participate in the Plan, except the following, who are ineligible to participate:
(a) an employee who has been employed by the Company or any of its participating Affiliates for
less than three months as of the beginning of an Offering Period (as defined in Section 7 below);
(b) an employee whose customary employment is for less than five months in any calendar year; (c)
an employee whose customary employment is less than 21 hours per week; and (d) an employee who,
after exercising his or her rights to purchase shares under the Plan, would own shares of Common
Stock (including shares that may be acquired under any outstanding options) representing five
percent or more of the total combined voting power of all classes of stock of the Company. The
term “participating Affiliate” means any company or other trade or business that is a subsidiary of
the Company (determined in accordance with the principles of Sections 424(e) and (f) of the Code
and the regulations thereunder). The Board may at any time in its sole discretion, if it deems it
advisable to do so, terminate the participation of the employees of a particular participating
Affiliate.

5. PARTICIPATION IN THE PLAN.

     An eligible employee may become a participating employee in the Plan by completing an election
to participate in the Plan on a form provided by the Company and submitting that form to the
Benefits Department of the Company. The form will authorize payroll deductions (as provided in
Section 6 below) and authorize the purchase of shares of Common Stock for the employee’s account in
accordance with the terms of the Plan. Enrollment will become effective upon the first day of the
first Offering Period. Enrollment in this Plan is limited to one Offering Period at a time.

6. PAYROLL DEDUCTIONS.

     At the time an eligible employee submits his or her election to participate in the Plan (as
provided in Section 5 above), the employee shall elect to have deductions made from his or her pay,
on each pay day following his or her enrollment in the Plan, and for as long as he or she shall
participate in the Plan. The deductions will be credited to the participating employee’s account
under the Plan. An employee may not during any Offering Period change his or her amount or
percentage of payroll deduction for that Offering Period, nor may an employee withdraw any
contributed funds, other than in accordance with Sections 15 through 20 below.

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7. RECORD OF PAYROLL DEDUCTIONS.

     The Company and participating Affiliates will cause to be maintained a record of amounts
credited to each participating employee authorizing a payroll deduction pursuant to Section 6. The
Company will not credit interest on the balance of the employees’ accounts during the Offering
Period.

8. OFFERING AND PURCHASE PERIODS.

     The Offering Periods and Purchase Period shall be determined by the Committee. The initial
Offering Period shall commence on March 16, 2003 and end on March 15, 2005, and every Offering
Period thereafter shall commence on the six month anniversary of the commencement of the prior
Offering Period and shall be a 24-month period until changed by the Committee. The initial
Purchase Period shall commence on March 16, 2003 and end on September 15, 2003, and every Purchase
Period thereafter, shall commence immediately after the prior Purchase Period ends and shall be a
six month period until changed by the Committee.

     Effective September 15, 2006, the Committee changed the Offering Period from a 24-month period
to a six month period. This change will affect all employees who commence enrollment on or after
September 15, 2006. Offering Periods commencing before September 15, 2006 have been
“grandfathered” and shall continue to run for the remaining period (if any) of the 24-month
Offering Period applicable to each individual participant, provided that participants will not be
entitled to reset their Offering Period.

9. RIGHTS TO PURCHASE COMMON STOCK; PURCHASE PRICE.

     Rights to purchase shares of Common Stock will be deemed granted to participating employees as
of the first trading day of each Offering Period. The purchase price of each share of Common Stock
(the “Purchase Price”) shall be 95 percent of the fair market value of the Common Stock on the last
trading day of the Purchase Period. Notwithstanding the foregoing, Offering Periods commencing
before September 15, 2006, have been “grandfathered” and the Purchase Price for such participants
shall continue to be determined pursuant to the terms of the Plan in effect for such participant at
the time of enrollment, provided that participants will not be entitled to reset their Offering
Period. For purposes of the Plan, “fair market value” means the value of each share of Common
Stock subject to the Plan determined as follows: if on the determination date the shares of Common
Stock are listed on an established national or regional stock exchange, are admitted to quotation
on the National Association of Securities Dealers Automated Quotation System, or are publicly
traded on an established securities market, the fair market value of the shares of Common Stock
shall be the closing price of the shares of Common Stock on such exchange or in such market (the
exchange designated by the Board if there is more than one such exchange or market) on the
determination date

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(or if there is no such reported closing price, the fair market value shall be the mean between the
highest bid and lowest asked prices or between the high and low sale prices on such trading day)
or, if no sale of the shares of Common Stock is reported for such trading day, on the next
preceding day on which any sale shall have been reported. If the shares of Common Stock are not
listed on such an exchange, quoted on such System or traded on such a market, fair market value
shall be determined by the Board in good faith.

10. TIMING OF PURCHASE; PURCHASE LIMITATION.

     Unless a participating employee has given prior written notice terminating such employee’s
participation in the Plan, or the employee’s participation in the Plan has otherwise been
terminated as provided in Sections 16 through 20 below, such employee will be deemed to have
exercised automatically his or her right to purchase Common Stock on the last trading day of the
Purchase Period (except as provided in Section 15 below) for the number of shares of Common Stock
which the accumulated funds in the employee’s account at that time will purchase at the Purchase
Price, subject to the participation adjustment provided for in Section 14 below and subject to
adjustment under Section 26 below. Notwithstanding any other provision of the Plan, no employee
may purchase in any one calendar year under the Plan and all other “employee stock purchase plans”
of the Company and its participating Affiliates shares of Common Stock having an aggregate fair
market value in excess of $25,000, determined as of the first trading date of the Offering Period
as to shares purchased during such period. Effective upon the last trading day of the Purchase
Period, a participating employee will become a stockholder with respect to the shares purchased
during such period, and will thereupon have all dividend, voting and other ownership rights
incident thereto. Notwithstanding the foregoing, no shares shall be sold pursuant to the Plan
unless the Plan is approved by the Company’s stockholders in accordance with Section 25 below.

11. ISSUANCE OF STOCK CERTIFICATES.

     As of the last trading day of the Purchase Period, a participating employee will be credited
with the number of shares of Common Stock purchased for his or her account under the Plan during
such Offering Period. Shares purchased under the Plan will be held in the custody of an agent (the
“Agent”) appointed by the Committee. The Agent may hold the shares purchased under the Plan in
stock certificates in nominee names and may commingle shares held in its custody in a single
account or stock certificate without identification as to individual participating employees. A
participating employee may, at any time following his or her purchase of shares under the Plan and
after the expiration of the qualifying holding period, by written notice instruct the Agent to have
all or part of such shares reissued in the participating employee’s own name and have the stock
certificate delivered to the employee.

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12. WITHHOLDING OF TAXES.

     To the extent that a participating employee realizes ordinary income in connection with a sale
or other transfer of any shares of Common Stock purchased under the Plan, the Company may withhold
amounts needed to cover such taxes from any payments otherwise due and owing to the participating
employee or from shares that would otherwise be issued to the participating employee hereunder.
Any participating employee who sells or otherwise transfers shares purchased under the Plan within
two years after the beginning of the Offering Period in which the shares were purchased must within
30 days of such transfer notify the Payroll Department of the Company in writing of such transfer.

13. ACCOUNT STATEMENTS.

     The Company will cause the Agent to deliver to each participating employee a statement for
each Purchase Period during which the employee purchases Common Stock under the Plan, but no more
frequently than every six months, reflecting the amount of payroll deductions during the Purchase
Period, the number of shares purchased for the employee’s account, the price per share of the
shares purchased for the employee’s account and the number of shares held for the employee’s
account at the end of the Purchase Period.

14. PARTICIPATION ADJUSTMENT.

     If in any Purchase Period the number of unsold shares that may be made available for purchase
under the Plan pursuant to Section 1 above is insufficient to permit exercise of all rights deemed
exercised by all participating employees pursuant to Section 9 above, a participation adjustment
will be made, and the number of shares purchasable by all participating employees will be reduced
proportionately. Any funds then remaining in a participating employee’s account after such
exercise will be refunded to the employee.

15. CHANGES IN ELECTIONS TO PURCHASE.

     (a) A participating employee may, at any time prior to the fifth business day before the last
day of the Purchase Period, by written notice to the Company, direct the Company to cease payroll
deductions (or, if the payment for shares is being made through periodic cash payments, notify the
Company that such payments will be terminated), in accordance with the following alternatives:

          (i) The employee’s option to purchase shall be reduced to the number of shares which may be
purchased, as of the last day of the Purchase Period, with the amount then credited to the
employee’s account; or

          (ii) Withdraw the amount in such employee’s account and terminate such employee’s option to
purchase.

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     (b) Any participating employee may decrease his or her payroll deduction or periodic cash
payments, to take effect as soon as administratively practicable by delivering to the Company a new
form regarding election to participate in the Plan under Section 5 above.

     (c) Any participating employee may increase his or her payroll deduction or periodic cash
payments, to take effect on the first day of the next following Offering Period by delivering to
the Company a new form regarding election to participate in the Plan under Section 5 above.

16. TERMINATION OF EMPLOYMENT.

     In the event a participating employee voluntarily leaves the employ of the Company or a
participating Affiliate, otherwise than by retirement under a plan of the Company or a
participating Affiliate, or is terminated by the Company prior to the last day of the Purchase
Period, the amount in the employee’s account will be distributed and the employee’s option to
purchase will terminate.

17. RETIREMENT.

     In the event a participating employee who has an option to purchase shares leaves the employ
of the Company or a participating Affiliate because of retirement under a plan of the Company or a
participating Affiliate the participating employee may elect, within 60 days after the date of such
retirement or termination, but, in no event, later than the end of the current Purchase Period, one
of the following alternatives:

     (a) The employee’s option to purchase shall be reduced to the number of shares which may be
purchased, as of the last day of the Purchase Period, with the amount then credited to the
employee’s account; or

     (b) Withdraw the amount in such employee’s account and terminate such employee’s option to
purchase.

     In the event the participating employee does not make an election within the aforesaid 60-day
period, he or she will be deemed to have elected subsection 17(b) above.

18. LAY-OFF, AUTHORIZED LEAVE OF ABSENCE OR DISABILITY.

     Payroll deductions for shares for which a participating employee has an option to purchase may
be suspended during any period of absence of the employee from work due to lay-off, authorized
leave of absence or disability or, if the employee so elects, periodic payments for such shares may
continue to be made in cash.

- 6 -

 

     If such employee returns to active service prior to the last day of the Purchase Period, the
employee’s payroll deductions will be resumed and if said employee did not make periodic cash
payments during the employee’s period of absence, the employee shall, by written notice to the
Company’s Payroll Department within 10 days after the employee’s return to active service, but not
later than the last day of the Purchase Period, elect one of the following alternatives:

     (a) The employee’s option to purchase shall be reduced to the number of shares that can be
purchased with the amount, if any, then credited to the employee’s account plus the aggregate
amount, if any, of all payroll deductions to be made thereafter; or

     (b) Withdraw the amount in the employee’s account and terminate the employee’s option to
purchase.

     A participating employee on lay-off, authorized leave of absence or disability on the last day
of the Purchase Period shall deliver written notice to his or her employer on or before the last
day of the Purchase Period, electing one of the alternatives provided in the foregoing clauses (a)
or (b) of this Section 18. If any employee fails to deliver such written notice within 10 days
after the employee’s return to active service or by the last day of the Purchase Period, whichever
is earlier, the employee shall be deemed to have elected subsection 18(b) above.

     If the period of a participating employee’s lay-off, authorized leave of absence or disability
shall terminate on or before the last day of the Purchase Period, and the employee shall not resume
active employment with the Company or a participating Affiliate, the employee shall receive a
distribution in accordance with the provisions of Section 17 of this Plan.

19. DEATH.

     In the event of the death of a participating employee while the employee’s option to purchase
shares is in effect, the legal representatives of such employee may, within 60 days after the
employee’s death (but no later than the last day of the Purchase Period) by written notice to the
Company or participating Affiliate, elect one of the following alternatives:

     (a) The employee’s option to purchase shall be reduced to the number of shares which may be
purchased, as of the last day of the Purchase Period, with the amount then credited to the
employee’s account; or

     (b) Withdraw the amount in such employee’s account and terminate such employee’s option to
purchase.

- 7 -

 

     In the event the legal representatives of such employee fail to deliver such written notice to
the Company or participating Affiliate within the prescribed period, the election to purchase
shares shall terminate and the amount, then credited to the employee’s account shall be paid to
such legal representatives.

20. TERMINATION OF PARTICIPATION.

     A participating employee will be refunded all moneys in his or her account, and his or her
participation in the Plan will be terminated if either (a) the Board elects to terminate the Plan
as provided in Section 25 below, or (b) the employee ceases to be eligible to participate in the
Plan under Section 4 above. As soon as practicable following termination of an employee’s
participation in the Plan, the Company will deliver to the employee a check representing the amount
in the employee’s account and a stock certificate representing the number of whole shares held in
the employee’s account. Once terminated, participation may not be reinstated for the then current
Offering Period, but, if otherwise eligible, the employee may elect to participate in any
subsequent Offering Period.

21. ASSIGNMENT.

     No participating employee may assign his or her rights to purchase shares of Common Stock
under the Plan, whether voluntarily, by operation of law or otherwise. Any payment of cash or
issuance of shares of Common Stock under the Plan may be made only to the participating employee
(or, in the event of the employee’s death, to the employee’s estate). Once a stock certificate has
been issued to the employee or for his or her account, such certificate may be assigned the same as
any other stock certificate.

22. APPLICATION OF FUNDS.

     All funds received or held by the Company under the Plan shall be deposited with the Agent for
the account of the participating employees. Participating employees’ accounts will not be
segregated.

23. NO RIGHT TO CONTINUED EMPLOYMENT.

     Neither the Plan nor any right to purchase Common Stock under the Plan confers upon any
employee any right to continued employment with the Company or any of its participating Affiliates,
nor will an employee’s participation in the Plan restrict or interfere in any way with the right of
the Company or any of its participating Affiliates to terminate the employee’s employment at any
time.

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24. AMENDMENT OF PLAN.

     The Board may, at any time, amend the Plan in any respect (including an increase in the
percentage specified in Section 9 above used in calculating the Purchase Price). An amendment to
the Plan shall be contingent on approval of the stockholders of the Company only to the extent
required by applicable law, regulations or rules or as provided by the Board.

25. EFFECTIVE DATE; TERM AND TERMINATION OF THE PLAN.

     The Plan shall be effective as of the date of adoption by the Board, which date is set forth
below, subject to approval of the Plan by a majority of the votes present and entitled to vote at a
duly held meeting of the shareholders of the Company at which a quorum representing a majority of
all outstanding voting stock is present, either in person or by proxy; provided, however, that upon
approval of the Plan by the shareholders of the Company as set forth above, all rights to purchase
shares granted under the Plan on or after the effective date shall be fully effective as if the
shareholders of the Company had approved the Plan on the effective date. If the shareholders fail
to approve the Plan on or before one year after the effective date, the Plan shall terminate, any
rights to purchase shares granted hereunder shall be null and void and of no effect and all
contributed funds shall be refunded to participating employees. The Board may terminate the Plan
at any time and for any reason or for no reason, provided that such termination shall not impair
any rights of participating employees that have vested at the time of termination. In any event,
the Plan shall, without further action of the Board, terminate ten (10) years after the date of
adoption of the Plan by the Board or, if earlier, at such time as all shares of Common Stock that
may be made available for purchase under the Plan pursuant to Section 1 above have been issued.

26. EFFECT OF CHANGES IN CAPITALIZATION.

     (a) Changes in Stock.

     If the number of outstanding shares of Common Stock is increased or decreased or the shares
of Common Stock are changed into or exchanged for a different number or kind of shares or other
securities of the Company by reason of any recapitalization, reclassification, stock split, reverse
split, combination of shares, exchange of shares, stock dividend, or other distribution payable in
capital stock, or other increase or decrease in such shares effected without receipt of
consideration by the Company occurring after the effective date of the Plan, the number and kinds
of shares that may be purchased under the Plan shall be adjusted proportionately and accordingly by
the Company. In addition, the number and kind of shares for which rights are outstanding shall be
similarly adjusted so that the proportionate interest of a participating employee immediately
following such event shall, to the extent practicable, be the same as immediately prior to such
event. Any such adjustment in outstanding rights shall not change the aggregate

- 9 -

 

Purchase Price payable by a participating employee with respect to shares subject to such rights, but shall
include a corresponding proportionate adjustment in the Purchase Price per share.

     (b) Reorganization in Which the Company Is the Surviving Corporation.

     Subject to Subsection (c) of this Section 26, if the Company shall be the surviving
corporation in any reorganization, merger or consolidation of the Company with one or more other
corporations, all outstanding rights under the Plan shall pertain to and apply to the securities to
which a holder of the number of shares of Common Stock subject to such rights would have been
entitled immediately following such reorganization, merger or consolidation, with a corresponding
proportionate adjustment of the Purchase Price per share so that the aggregate Purchase Price
thereafter shall be the same as the aggregate Purchase Price of the shares subject to such rights
immediately prior to such reorganization, merger or consolidation.

	 	(c)	 	Reorganization in Which the Company Is Not the Surviving Corporation or Sale of
Assets or Stock.

     Upon any dissolution or liquidation of the Company, or upon a merger, consolidation or
reorganization of the Company with one or more other corporations in which the Company is not the
surviving corporation, or upon a sale of all or substantially all of the assets of the Company to
another corporation, or upon any transaction (including, without limitation, a merger or
reorganization in which the Company is the surviving corporation) approved by the Board that
results in any person or entity owning more than 80 percent of the combined voting power of all
classes of stock of the Company, the Plan and all rights outstanding hereunder shall terminate,
except to the extent provision is made in writing in connection with such transaction for the
continuation of the Plan and/or the assumption of the rights theretofore granted, or for the
substitution for such rights of new rights covering the stock of a successor corporation, or a
parent or subsidiary thereof, with appropriate adjustments as to the number and kinds of shares and
exercise prices, in which event the Plan and rights theretofore granted shall continue in the
manner and under the terms so provided. In the event of any such termination of the Plan, all
current Purchase Periods and Offering Periods shall be deemed to have ended on the last trading day
prior to such termination, and in accordance with Section 10 above the rights of each participating
employee then outstanding shall be deemed to be automatically exercised on such last trading day.
The Board shall send written notice of an event that will result in such a termination to all
participating employees not later than the time at which the Company gives notice thereof to its
stockholders.

- 10 -

 

     (d) Adjustments.

     Adjustments under this Section 26 related to stock or securities of the Company shall be made
by the Committee, whose determination in that respect shall be final, binding, and conclusive.

     (e) No Limitations on Company.

     The grant of a right pursuant to the Plan shall not affect or limit in any way the right or
power of the Company to make adjustments, reclassifications, reorganizations or changes of its
capital or business structure or to merge, consolidate, dissolve or liquidate, or to sell or
transfer all or any part of its business or assets.

27. GOVERNMENTAL REGULATION.

     The Company’s obligation to issue, sell and deliver shares of Common Stock pursuant to the
Plan is subject to such approval of any governmental authority and any national securities exchange
or other market quotation system as may be required in connection with the authorization, issuance
or sale of such shares.

28. STOCKHOLDER RIGHTS.

     Any dividends paid on shares held by the Company for a participating employee’s account will
be transmitted to the employee. The Company will deliver to each participating employee who
purchases shares of Common Stock under the Plan, as promptly as practicable by mail or otherwise,
all notices of meetings, proxy statements, proxies and other materials distributed by the Company
to its stockholders. Any shares of Common Stock held by the Agent for an employee’s account will
be voted in accordance with the employee’s duly delivered and signed proxy instructions. There
will be no charge to participating employees in connection with such notices, proxies and other
materials.

29. RULE 16B-3.

     Transactions under this Plan are intended to comply with all applicable conditions of Rule
16b-3 or any successor provision under the Securities Exchange Act of 1934, as amended. If any
provision of the Plan or action by the Board fails to so comply, it shall be deemed null and void
to the extent permitted by law and deemed advisable by the Board. Moreover, in the event the Plan
does not include a provision required by Rule 16b-3 to be stated herein, such provision (other than
one relating to eligibility requirements, or the price and amount of awards) shall be deemed
automatically to be incorporated by reference into the Plan.

- 11 -

 

30. PAYMENT OF PLAN EXPENSES.

     The Company will bear all costs of administering and carrying out the Plan; provided however,
participating employees shall bear all costs incurred subsequent to the issuance of stock
certificates pursuant to Section 11.

*    *    *

This Plan was duly adopted and approved by the Board of Directors on January 24,
2003 and amended by action of the Board or a committee thereof on December 8, 2004,
March 3, 2005 and May 30, 2006. This Plan, as amended, was approved by action of the
stockholders on March 12, 2003 and March 16, 2005.

	 	 	 	 	 
	 

	 	/S/ Russell B. Stevenson, Jr.	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Secretary of the Company	 	 

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