Document:

exv10w1

 

Exhibit 10.1

ENERGY TRANSFER PARTNERS, L.P.

MIDSTREAM BONUS PLAN

Energy Transfer Company

Transwestern Pipeline

	1.	 	PURPOSE OF THE PLAN
	 
	 	 	The purpose of Energy Transfer Partners Midstream Bonus Plan (as amended from time to time,
the “Plan”) is to provide an opportunity for Eligible Employees of Energy Transfer Partners,
L.P. (the “Partnership”) to earn annual cash awards through the achievement of
pre-established performance goals.
	 
	2.	 	DEFINITIONS

	 	A.	 	Actual Results means the dollar amount of EBITDA or other applicable
financial measure specified for the Budget Target for a Business Unit for a Performance
Period actually achieved for such Performance Period as determined by the Partnership
following the end of such Performance Period.
	 
	 	B.	 	Annual Bonus is the cash bonus paid to an Eligible Employee for the Performance Period.
	 
	 	C.	 	Annual Target Bonus for an Eligible Employee is a percentage of the Employee’s
Base Salary and may range from 0% to 100% of base salary and is dependent on a number
of factors which may include, but are not limited to, employee title, job
responsibilities and reporting level. The Partnership may, but is not required to,
specify a specific range for an Eligible Employee at any time prior to or during a
Performance Period and may adjust any such range so established at any time in its
discretion. To the extent the Performance Period is less than, or more than, one year,
then the Annual Target Bonus for an Eligible Employee will be prorated.
	 
	 	D.	 	Annual Target Bonus Pool for a Business Unit for a Performance Period is the
aggregate Annual Target Bonus of the Eligible Employees of such Business Unit for such
Performance Period.
	 
	 	E.	 	Bonus Pool Payout Factor for a Business Unit means the multiplier factor
applied to the Annual Target Bonus Pool for such Business Unit to determine the Funded
Bonus Pool for such Business Unit for the applicable Performance Period. The payout is
determined by the comparison of Budget Target for such Business Unit for a Performance
Period to Actual Results for such Business Unit for such Performance Period as set
forth below:

	 	 	 	 	 
	% of Budget	 	Bonus Pool
	Target	 	Payout Factor
	>= 110.0
	 	 	 1.20 x	 
	109.9 - 105.0
	 	 	1.10 x	 
	104.9 - 95.0
	 	 	1.00 x	 
	94.9 - 90.0
	 	 	.90 x	 
	89.9 - 80.0
	 	 	.80 x	 
	79.9 - 70.0
	 	 	.70 x	 
	69.9 - 50.0
	 	 	.50 x	 
	< 50.0
	 	 	.0 x	 

 

 

	 	F.	 	Budget Target for a Business Unit means the specific dollar amount of EBITDA
or other financial measure specified by the Partnership for such Business Unit for such
Performance Period.
	 
	 	G.	 	Funded Bonus Pool for a Business Unit means the Annual Target Bonus Pool for
such Business Unit for a Performance Period multiplied by the Bonus Pool Payout Factor
for such Business Unit for such Performance Period.
	 
	 	H.	 	Employee Base Salary means the salary of the Eligible Employee at the
conclusion of the Performance Period.
	 
	 	I.	 	Performance Period means the measurement period for determination of Budget
Target and the calculation of Actual Results. Each Performance Period shall be, in
general, a one year period commencing January 1 and concluding December
31st, but may be a shorter or longer period as determined by the
Partnership.
	 
	 	J.	 	EBITDA means earnings before interest, taxes, depreciation and amortization.
	 
	 	K.	 	Eligible Employee is an employee of a Business Unit eligible to participate
in the Plan as determined in the sole discretion of management of such Business Unit.
	 
	 	L.	 	Business Unit for purposes of the Plan shall mean the Energy Transfer
Company, Transwestern Pipeline or any other business unit of the Partnership designated
by the Partnership to be included for participation in the Plan.

	3. 	 	 ANNUAL BONUS PAYMENT
	 
	 	 	As soon as reasonably practicable following the end of each Performance Period, the
Partnership will determine the Annual Target Bonus for each Eligible Employee. The Funded
Bonus Pool from which Annual Bonuses are paid to Eligible Employees of such Business Unit
shall equal the summation of Annual Target Bonuses of all Eligible Employees of such
Business Unit multiplied by the Bonus Pool Payout Factor for such Business Unit. Management
of each Business Unit shall determine the amount of the Annual Bonus for each Eligible
Employee of such Business Unit from the Funded Bonus Pool for such Business Unit based on
employee performance, length of employment and other factors as determined by management of
such Business Unit in its sole discretion, provided that the aggregate amount of Annual
Bonus payments for such Business Unit relating to a Performance Period shall not exceed, in
total, the Funded Bonus Pool for such Business Unit for such Performance Period.
Notwithstanding any provision herein, funds allocated under this bonus plan for distribution
to employees is 100% discretionary, subject to the final approval of Chief Executive Officer
of the Partnership.
	 
	4.	 	OTHER BONUS PAYMENTS
	 
	 	 	In addition to Annual Bonuses, the Chief Executive Officer will have the discretion to make
other bonus payments to one or more Eligible Employees of up to $1.0 million in the
aggregate in any calendar year.exv10w1

 

Exhibit 10.1

Execution Version

 

 

CREDIT AGREEMENT

dated as of February 29, 2008

Among

PIONEER DRILLING COMPANY

as Borrower,

WELLS FARGO BANK, N.A.

as Administrative Agent, Issuing Lender and Swing Line Lender,

and

THE LENDERS NAMED HEREIN

as Lenders

$400,000,000.00

 

 

WELLS FARGO BANK, N.A. and FORTIS BANK SA/NV, NEW YORK BRANCH

As Co-Lead Arrangers

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	Section 1.1 Certain Defined Terms
	 	 	1	 
	Section 1.2 Computation of Time Periods
	 	 	25	 
	Section 1.3 Accounting Terms; Changes in GAAP
	 	 	25	 
	Section 1.4 Classes and Types of Advances
	 	 	25	 
	Section 1.5 Miscellaneous
	 	 	25	 
	ARTICLE 2 CREDIT FACILITIES
	 	 	26	 
	Section 2.1 Revolving Commitments
	 	 	26	 
	Section 2.2 Letters of Credit
	 	 	27	 
	Section 2.3 Swing Line Loan
	 	 	32	 
	Section 2.4 Revolving Advances
	 	 	34	 
	Section 2.5 Prepayments
	 	 	37	 
	Section 2.6 Repayment
	 	 	38	 
	Section 2.7 Fees
	 	 	38	 
	Section 2.8 Interest
	 	 	39	 
	Section 2.9 Illegality
	 	 	40	 
	Section 2.10 Breakage Costs
	 	 	41	 
	Section 2.11 Increased Costs
	 	 	41	 
	Section 2.12 Payments and Computations
	 	 	43	 
	Section 2.13 Taxes
	 	 	44	 
	Section 2.14 Replacement of Lenders
	 	 	47	 
	ARTICLE 3 CONDITIONS OF LENDING
	 	 	47	 
	Section 3.1 Conditions Precedent to Initial Borrowings and the Initial Letter of
Credit
	 	 	47	 
	Section 3.2 Conditions Precedent to Each Borrowing and to Each Issuance, Extension
or Renewal of a Letter of Credit
	 	 	50	 
	Section 3.3 Determinations Under Sections 3.1 and 3.2
	 	 	51	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES
	 	 	51	 
	Section 4.1 Organization
	 	 	51	 
	Section 4.2 Authorization
	 	 	51	 
	Section 4.3 Enforceability
	 	 	52	 
	Section 4.4 Financial Condition
	 	 	52	 

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TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Section 4.5 Ownership and Liens; Real Property
	 	 	52	 
	Section 4.6 True and Complete Disclosure
	 	 	52	 
	Section 4.7 Litigation
	 	 	53	 
	Section 4.8 Compliance with Agreements
	 	 	53	 
	Section 4.9 Pension Plans
	 	 	53	 
	Section 4.10 Environmental Condition
	 	 	54	 
	Section 4.11 Subsidiaries
	 	 	55	 
	Section 4.12 Investment Company Act
	 	 	55	 
	Section 4.13 Taxes
	 	 	55	 
	Section 4.14 Permits, Licenses, etc
	 	 	55	 
	Section 4.15 Use of Proceeds
	 	 	55	 
	Section 4.16 Condition of Property; Casualties
	 	 	55	 
	Section 4.17 Insurance
	 	 	55	 
	ARTICLE 5 AFFIRMATIVE COVENANTS
	 	 	56	 
	Section 5.1 Organization
	 	 	56	 
	Section 5.2 Reporting
	 	 	56	 
	Section 5.3 Insurance
	 	 	60	 
	Section 5.4 Compliance with Laws
	 	 	60	 
	Section 5.5 Taxes
	 	 	61	 
	Section 5.6 New Subsidiaries
	 	 	61	 
	Section 5.7 Security
	 	 	61	 
	Section 5.8 Deposit Accounts and Securities Accounts
	 	 	61	 
	Section 5.9 Records; Inspection
	 	 	62	 
	Section 5.10 Maintenance of Property
	 	 	62	 
	ARTICLE 6 NEGATIVE COVENANTS
	 	 	63	 
	Section 6.1 Debt
	 	 	63	 
	Section 6.2 Liens
	 	 	64	 
	Section 6.3 Investments
	 	 	65	 
	Section 6.4 Acquisitions
	 	 	66	 
	Section 6.5 Agreements Restricting Liens or Payments to Borrower
	 	 	66	 
	Section 6.6 Use of Proceeds
	 	 	67	 
	Section 6.7 Corporate Actions
	 	 	67	 

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TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Section 6.8 Asset Dispositions
	 	 	67	 
	Section 6.9 Restricted Payments
	 	 	68	 
	Section 6.10 Affiliate Transactions
	 	 	68	 
	Section 6.11 Line of Business
	 	 	69	 
	Section 6.12 Hazardous Materials
	 	 	69	 
	Section 6.13 Compliance with ERISA
	 	 	69	 
	Section 6.14 Sale and Leaseback Transactions
	 	 	70	 
	Section 6.15 Limitation on Hedging
	 	 	70	 
	Section 6.16 Capital Expenditures
	 	 	70	 
	Section 6.17 Leverage Ratio
	 	 	70	 
	Section 6.18 Interest Coverage Ratio
	 	 	71	 
	Section 6.19 Asset Coverage Ratio
	 	 	71	 
	Section 6.20 Global Holdings and its Subsidiaries
	 	 	71	 
	ARTICLE 7 DEFAULT AND REMEDIES
	 	 	71	 
	Section 7.1 Events of Default
	 	 	71	 
	Section 7.2 Optional Acceleration of Maturity
	 	 	73	 
	Section 7.3 Automatic Acceleration of Maturity
	 	 	74	 
	Section 7.4 Set-off
	 	 	74	 
	Section 7.5 Remedies Cumulative, No Waiver
	 	 	75	 
	Section 7.6 Application of Payments
	 	 	75	 
	ARTICLE 8 THE ADMINISTRATIVE AGENT
	 	 	76	 
	Section 8.1 Appointment, Powers, and Immunities
	 	 	76	 
	Section 8.2 Reliance by Administrative Agent
	 	 	76	 
	Section 8.3 Defaults
	 	 	77	 
	Section 8.4 Rights as Lender
	 	 	77	 
	Section 8.5 Indemnification
	 	 	77	 
	Section 8.6 Non-Reliance on Administrative Agent and Other Lenders
	 	 	78	 
	Section 8.7 Resignation of Administrative Agent and Issuing Lender
	 	 	78	 
	Section 8.8 Collateral and Guaranty Matters
	 	 	79	 
	Section 8.9 No Duties, Etc
	 	 	81	 
	ARTICLE 9 MISCELLANEOUS
	 	 	81	 
	Section 9.1 Costs and Expenses
	 	 	81	 

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TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Section 9.2 Indemnification
	 	 	81	 
	Section 9.3 Waivers and Amendments
	 	 	82	 
	Section 9.4 Severability
	 	 	83	 
	Section 9.5 Survival of Representations and Obligations
	 	 	83	 
	Section 9.6 Binding Effect
	 	 	83	 
	Section 9.7 Lender Assignments and Participations
	 	 	83	 
	Section 9.8 Notices, Etc
	 	 	85	 
	Section 9.9 Business Loans
	 	 	86	 
	Section 9.10 Usury Not Intended
	 	 	86	 
	Section 9.11 Usury Recapture
	 	 	87	 
	Section 9.12 Governing Law; Submission to Jurisdiction
	 	 	87	 
	Section 9.13 Execution in Counterparts
	 	 	88	 
	Section 9.14 Waiver of Jury
	 	 	88	 
	Section 9.15 Collateral Matters; Hedging Arrangements and Cash
Management Agreements
	 	 	88	 
	Section 9.16 USA Patriot Act
	 	 	88	 
	Section 9.17 Entire Agreement
	 	 	88	 

 -iv- 

 

 

	 	 	 
	EXHIBITS:
	 	 
	 
	 	 
	Exhibit A

	 	– Form of Assignment and Acceptance
	Exhibit B

	 	– [Reserved]
	Exhibit C

	 	– Form of Compliance Certificate
	Exhibit D

	 	– Form of Guaranty
	Exhibit E

	 	– Form of Notice of Borrowing
	Exhibit F

	 	– Form of Notice of Conversion or Continuation
	Exhibit G

	 	– Form of Notice of Payment
	Exhibit H

	 	– Form of Pledge Agreement
	Exhibit I

	 	– Form of Security Agreement
	Exhibit J-1

	 	– Form of Revolving Note
	Exhibit J-2

	 	– Form of Swing Line Note

	 	 	 
	SCHEDULES:
	 	 
	 
	 	 
	Schedule 1.1(a)

	 	– Adjustments to Eligible Equipment
	Schedule 1.1(b)

	 	– Existing Letters of Credit
	Schedule 1.1(c)

	 	– Guarantors
	Schedule 2.1

	 	– Revolving Commitments of the Lenders
	Schedule 4.1

	 	– Organizational Information
	Schedule 4.10

	 	– Permits; Environmental Liabilities; Actions
	Schedule 4.11

	 	– Subsidiaries
	Schedule 5.8

	 	– Deposit Accounts and Securities Accounts as of Effective Date
	Schedule 6.1

	 	– Existing Debt
	Schedule 6.2

	 	– Existing Liens
	Schedule 6.3

	 	– Existing Investments
	Schedule 6.10

	 	– Affiliate Transactions
	Schedule 9.8

	 	– Contact Information

 -v- 

 

 

CREDIT AGREEMENT

     This Credit Agreement dated as of February 29, 2008, is among (a) Pioneer Drilling Company, a
Texas corporation (“Borrower”), (b) the Lenders (as defined below), and (c) Wells Fargo Bank, N.A.,
as Administrative Agent (as defined below) for the Lenders, Issuing Lender (as defined below) and
as Swing Line Lender (as defined below).

     In consideration of the mutual covenants and agreements herein contained, the Borrower, the
Lenders, the Administrative Agent, the Issuing Lender and the Swing Line Lender hereby agree as
follows:

ARTICLE 1

DEFINITIONS AND ACCOUNTING TERMS

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

     “Acceptable Security Interest” means a security interest which (a) exists in favor of
the Administrative Agent for its benefit and the ratable benefit of the Secured Parties,
(b) secures the Obligations, (c) is enforceable against the Credit Party which created such
security interest and (d) upon the filing of appropriate financing statements and/or the completion
of other actions as required under the UCC and any other applicable law, is perfected.

     “Account Control Agreement” shall mean, with respect to any deposit account or
securities account of a Credit Party held with a bank or securities intermediary which is not the
Administrative Agent, an agreement or agreements in form and substance reasonably acceptable to
Administrative Agent among the Credit Party owning such deposit or securities account, as
applicable, the Administrative Agent and such other bank or securities intermediary, which provides
that the security interest of the Administrative Agent over such account is an Acceptable Security
Interest that is superior to all other Liens (other than Excepted Liens).

     “Account” has the meaning set forth in Section 9.102(a)(2) of the UCC.

     “Acquisition” means the purchase by the Borrower or any Restricted Subsidiary of (a)
all or substantially all of the assets of any other Person, (b) all or substantially all of the
assets constituting a division, business unit or line of business of any other Person, or (c) all
or a portion of the Equity Interests of a Person.

     “Adjusted Base Rate” means, for any day, the fluctuating rate per annum of interest
equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Rate in
effect on such day plus 0.5%. Any change in the Adjusted Base Rate due to a change in the
Prime Rate or the Federal Funds Rate shall be effective on the effective date of such change in the
Prime Rate or Federal Funds Rate.

 

 

     “Administrative Questionnaire” means an administrative questionnaire by each Lender in
a form supplied by the Administrative Agent.

     “Administrative Agent” means Wells Fargo in its capacity as agent for the Lenders
pursuant to Article 8 and any successor agent pursuant to Section 8.7.

     “Advance” means a Revolving Advance or a Swing Line Advance, as applicable.

     “Affected Lender” has the meaning set forth in Section 2.14.

     “Affiliate” means, as to any Person, any other Person that, directly or indirectly,
through one or more intermediaries, controls, is controlled by, or is under common control with,
such Person or any Subsidiary of such Person. The term “control” (including the terms “controlled
by” or “under common control with”) means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a Person, whether through
ownership, by contract, or otherwise.

     “Agreement” means this Credit Agreement among the Borrower, the Lenders, the
Administrative Agent, the Issuing Lender and the Swing Line Lender, as it may be amended,
supplemented, and otherwise modified from time to time.

     “Applicable Lending Office” means, with respect to each Lender, such Lender’s Domestic
Lending Office in the case of a Base Rate Advance and such Lender’s Eurodollar Lending Office in
the case of a Eurodollar Advance.

     “Applicable Margin” means, at any time with respect to each Type of Advance, the
Letters of Credit and the Commitment Fee, the percentage rate per annum which is applicable at such
time with respect to such Advance, Letter of Credit or Commitment Fee as set forth in the table
below:

	 	 	 	 	 	 	 	 	 
	Applicable Margin	 	Leverage Ratio	 	Eurodollar Advances	 	Base Rate Advances	 	Commitment Fee
	Level I	 	Is less than 1.00
	 	1.50%	 	0.50%	 	0.225%
	Level II	 	Is equal to
or greater than
1.00 but less than 1.50
	 	1.75%	 	0.75%	 	0.275%
	Level III	 	Is equal to
or greater than 1.50
but less than 2.00
	 	2.00%	 	1.00%	 	0.325%
	Level IV	 	Is equal to
or greater than 2.00
but less than 2.50
	 	2.25%	 	1.25%	 	0.350%
	Level V	 	Is equal to
or greater than 2.50
	 	2.50%	 	1.50%	 	0.350%

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The Applicable Margin shall be determined in accordance with the foregoing table based on the
Leverage Ratio as reflected in the Compliance Certificate delivered in connection with the
Financial Statements most recently delivered pursuant to Section 5.2. Adjustments, if any, to the
Applicable Margin shall be effective on the date the Administrative Agent receives the applicable
Financial Statements and corresponding Compliance Certificate as required by the terms of this
Agreement. In the event at any time that the Leverage Ratio for any fiscal quarter shall be
recalculated for any reason retroactively, the Borrower shall be obligated to pay any increased
interest or commitment or letter of credit fees that would otherwise have been applicable if the
Level resulting from such recalculated Leverage Ratio had been in effect for such fiscal quarter.
If the Borrower fails to deliver the Financial Statements and corresponding Compliance Certificate
to the Administrative Agent at the time required pursuant to Section 5.2, then effective as of the
date such Financial Statements and Compliance Certificate were required to be delivered pursuant to
Section 5.2, the Applicable Margin shall be determined at Level V and shall remain at such level
until the date such Financial Statements and corresponding Compliance Certificate are so delivered
by the Borrower. Notwithstanding the foregoing, the Applicable Margin shall be deemed to be at
Level IV until delivery of the Financial Statements and corresponding Compliance Certificate for
the fiscal quarter ending December 31, 2008; provided that, if the Leverage Ratio equals or
exceeds 2.50 to 1.00 as of the last day of any fiscal quarter ending after the Effective Date and
prior to December 31, 2008, the Applicable Margin shall be adjusted to be at Level V for the next
succeeding fiscal quarter.

     “Appraisal Report” means an appraisal of the orderly liquidation value and fair market
value of the Eligible Equipment of the Credit Parties in form and substance and by an independent
appraiser reasonably satisfactory to the Administrative Agent.

     “Asset Coverage Ratio” means, as of the end of any applicable fiscal quarter, the
ratio of (a) the sum of, without duplication, 80% of Eligible Accounts plus, without duplication,
80% of the orderly liquidation value of Eligible Equipment plus, without duplication, 40% of the
net book value of Other Fixed Assets to (b) the Total Commitments.

     “Asset Coverage Ratio Certificate” has the meaning set forth in Section 5.2(d).

     “Assignment and Acceptance” means an assignment and acceptance executed by a Lender
and an Eligible Assignee and accepted by the Administrative Agent, in substantially the same form
as Exhibit A.

     “Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease of
any Person, the capitalized amount thereof that would appear on a balance sheet of such Person
prepared as of such date in accordance with GAAP in all material respects, and (b) in respect of
any Synthetic Lease Obligation, the capitalized amount of the remaining lease payments under the
relevant lease that would appear on a balance sheet of such Person prepared as of such date in
accordance with GAAP if such lease were accounted for as a Capital Lease.

     “AutoBorrow Agreement” means any agreement providing for automatic borrowing services
between the Borrower and the Swing Line Lender.

-3-

 

     “Base Rate Advance” means an Advance which bears interest based upon the Adjusted Base
Rate.

     “Borrowing” means a Revolving Borrowing or a Swing Line Borrowing, as applicable.

     “Business Day” means a day (a) other than a Saturday, Sunday, or other day on which
(i) the Administrative Agent is authorized to close under the laws of, or is in fact closed in,
Texas, or (ii) banks are not open for business in New York City or which is a legal holiday in the
State of New York and (b) if the applicable Business Day relates to any Eurodollar Advances, on
which dealings are carried on by commercial banks in the London interbank market.

     “Capital Expenditures” for any Person and period of its determination means, without
duplication, the aggregate of all expenditures and costs (whether paid in cash or accrued as
liabilities during that period and including that portion of Capital Leases which is capitalized on
the balance sheet of such Person) of such Person during such period that, in conformity with GAAP,
are required to be included in or reflected by the property, plant, or equipment or similar fixed
asset accounts reflected on the balance sheet of such Person.

     “Capital Leases” means, for any Person, any lease of any Property by such Person as
lessee which would, in accordance with GAAP in all material respects, be required to be classified
and accounted for as a capital lease on the balance sheet of such Person.

     “Cash Collateral Account” means a special cash collateral account pledged to the
Administrative Agent containing cash deposited pursuant to the terms of Sections 2.2(a)(ii),
2.5(e), 7.2(b) or 7.3(b) to be maintained with the Administrative Agent in accordance with
Section 2.2(g).

     “Cash Management Agreement” means any agreement to provide cash management services,
including treasury, depository, overdraft, credit or debit card, electronic funds transfer and
other cash management arrangements.

     “Cash Management Bank” means a Lender or an Affiliate of a Lender that has entered
into a Cash Management Agreement with a Credit Party, in its capacity as a party to such Cash
Management Agreement.

     “CERCLA” means the Comprehensive Environmental Response, Compensation, and Liability
Act of 1980, as amended, state and local analogs, and all rules and regulations and requirements
thereunder in each case as now or hereafter in effect.

     “Change in Control” means an event or series of events by which:

     (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary
or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and
13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to
have “beneficial ownership” of all securities that such person or group has the right to acquire
(such right, an “option right”), whether such right is exercisable immediately or only after the

-4-

 

passage of time), directly or indirectly, of 35% or more of the equity securities of the
Borrower entitled to vote for members of the board of directors or equivalent governing body of the
Borrower on a fully-diluted basis (and taking into account all such securities that such person or
group has the right to acquire pursuant to any option right); or

     (b) during any period of 12 consecutive months, a majority of the members of the board of
directors or other equivalent governing body of the Borrower cease to be composed of individuals
(i) who were members of that board or equivalent governing body on the first day of such period,
(ii) whose election or nomination to that board or equivalent governing body was approved by
individuals referred to in clause (i) above constituting at the time of such election or nomination
at least a majority of that board or equivalent governing body or (iii) whose election or
nomination to that board or other equivalent governing body was approved by individuals referred to
in clauses (i) and (ii) above constituting at the time of such election or nomination at least a
majority of that board or equivalent governing body (excluding, in the case of both clause (ii) and
clause (iii), any individual whose initial nomination for, or assumption of office as, a member of
that board or equivalent governing body occurs as a result of an actual or threatened solicitation
of proxies or consents for the election or removal of one or more directors by any person or group
other than a solicitation for the election of one or more directors by or on behalf of the board of
directors).

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

     “Code” means the Internal Revenue Code of 1986, as amended, and the regulations and
published interpretations thereof.

     “Collateral” means all Property of the Credit Parties which is “Collateral”, “Pledged
Collateral” or similar terms described in the Security Agreement, Pledge Agreement, any Account
Control Agreement or any other Security Document from time to time.

     “Commitment” means, as to any Lender, its Revolving Commitment, and as to the Swing
Line Lender, the Swing Line Loan Commitment.

     “Commitment Fee” means the fees required under Section 2.7(a).

     “Competition Acquisition” means the acquisition by Pioneer Log-Tech, LLC, a Delaware
limited liability company, of all of the outstanding Equity Interests of Prairie Investors d/b/a
Competition Wireline Services and Competition Wireline Services, Inc., a Montana corporation
pursuant to the Competition Acquisition Documents.

     “Competition Acquisition Documents” means that certain Stock Purchase Agreement by and
among Pioneer Log-Tech, LLC, a Delaware limited liability company, as purchaser, and the
stockholders named therein, together with the exhibits and schedules thereto and each other
agreement, instrument, or document executed in connection therewith.

     “Compliance Certificate” means a compliance certificate executed by a Financial
Officer of the Borrower or such other Person as required by this Agreement in substantially the
same form as Exhibit C that shall include a certification by a Financial Officer of the
Borrower that no Default has occurred and is continuing together with calculations demonstrating
compliance by

-5-

 

the Borrower and its Restricted Subsidiaries with the covenants set forth in Sections 6.16,
6.17 and 6.18.

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

     “Convert,” “Conversion,” and “Converted” each refers to a conversion
of Advances of one Type into Advances of another Type pursuant to Section 2.4(b).

     “Credit Documents” means this Agreement, the Notes, the Letter of Credit Documents,
any AutoBorrow Agreement, the Guaranty, the Notices of Borrowing, the Notices of Conversion or
Continuation, the Security Documents, the Fee Letter, and each other agreement, instrument, or
document executed at any time in connection with this Agreement.

     “Credit Parties” shall mean the Borrower and the Guarantors.

     “Debt,” means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance with GAAP:

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

     (b) all direct or contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar
instruments;

     (c) net obligations of such Person under any Hedging Arrangement;

     (d) all obligations of such Person to pay the deferred purchase price of property or services
(other than trade accounts payable in the ordinary course of business and, in each case, not past
due for more than one hundred twenty (120) days after the date on which such trade account payable
was created);

     (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned by
such Person (including indebtedness arising under conditional sales or other title retention
agreements), whether or not such indebtedness shall have been assumed by such Person or is limited
in recourse;

     (f) Capital Leases and Synthetic Lease Obligations;

     (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any
payment in respect of any Equity Interest in such Person or any other Person, valued, in the case
of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends;

     (h) all Guarantees of such Person in respect of any of the foregoing; and

-6-

 

     (i) all liabilities of such Person in respect of unfunded vested benefits under any Plan.

     For all purposes hereof, the Debt of any Person shall include the Debt of any partnership or
joint venture (other than a joint venture that is itself a corporation or limited liability
company) in which such Person is a general partner or a joint venturer, unless such Debt is
expressly made non-recourse to such Person. The amount of any net obligation under any Hedging
Arrangement on any date shall be deemed to be the Swap Termination Value thereof as of such date.
The amount of any Capital Lease or Synthetic Lease Obligation as of any date shall be deemed to be
the amount of Attributable Indebtedness in respect thereof as of such date.

     “Debt Incurrence” means any issuance or sale by the Borrower or any of its Restricted
Subsidiaries of any Debt after the Effective Date other than Permitted Debt.

     “Debt Incurrence Proceeds” means, with respect to any Debt Incurrence, all cash and
cash equivalent investments received by the Borrower or any of its Restricted Subsidiaries from
such Debt Incurrence after payment of, or provision for, all underwriter fees and expenses, SEC and
blue sky fees, printing costs, fees and expenses of accountants, lawyers and other professional
advisors, brokerage commissions and other out-of-pocket fees and expenses actually incurred in
connection with such Debt Incurrence.

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

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Advances required to be funded by it hereunder within one (1) Business Day of the date required to
be funded by it hereunder, (b) has otherwise failed to pay over to the Administrative Agent or any
other Lender any other amount required to be paid by it hereunder within one (1) Business Day of
the date when due, unless the subject of a good faith dispute, or (c) has been deemed insolvent or
become the subject of an insolvency proceeding.

     “Disposition” or “Dispose” means the sale, transfer, license, lease or other
disposition of any Property by any Person, including any sale, assignment, transfer or other
disposal, with or without recourse, of any notes or accounts receivable or any rights and claims
associated therewith.

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

     “Domestic Lending Office” means, with respect to any Lender, the office of such Lender
specified as its “Domestic Lending Office” in its Administrative Questionnaire or such other office
of such Lender as such Lender may from time to time specify to the Borrower and the Administrative
Agent.

     “EBITDA” means, without duplication, for the Borrower and its consolidated Restricted
Subsidiaries, for any period, the sum of (a) the Borrower’s consolidated Net Income for such period
plus (b) to the extent deducted in determining Borrower’s consolidated Net Income,
(i) Interest Expense, (ii) federal, state, and local income taxes (whether or not deferred),
(iii) depreciation, (iv) amortization, (v) other non-cash charges and (vi) cash expenses incurred
in

-7-

 

connection with (A) the transactions contemplated hereby in an amount not to exceed $7,000,000
in the aggregate and (B) to the extent permitted hereunder, any Investment, Acquisition or
Disposition in an aggregate amount reasonably acceptable to the Administrative Agent, in each case,
for such period. For purposes of calculating the Leverage Ratio and the Interest Coverage Ratio as
of any date, EBITDA of the Borrower and its consolidated Restricted Subsidiaries shall be
calculated on a pro forma basis (as certified by the Borrower in a Compliance Certificate delivered
pursuant to Section 5.2 and as reasonably approved by the Administrative Agent) assuming that (i)
all Acquisitions made, and any Debt incurred or repaid in connection therewith, during the period
of determination and (ii) all Dispositions of any Restricted Subsidiary or of all or substantially
all the assets of any Restricted Subsidiary or of any line of business or division of the Borrower
or any Restricted Subsidiary completed, and any Debt incurred or repaid in connection therewith,
during such period of determination have been made or incurred or repaid on the first day of such
period of determination (but without any adjustment to EBITDA for projected cost savings or other
synergies other than cost savings or synergies realized within, or to be realized within, 180 days
following the consummation of such Acquisition or Disposition, as applicable).

     “Effective Date” means the date occurring on or before April 30, 2008 on which all
conditions precedent set forth in Article 3 shall have been satisfied.

     “Eligible Accounts” means, as at any date of determination, all Accounts of the Credit
Parties:

     (a) which arise out of sales of goods or rendering of services in the ordinary course of the
applicable Credit Party’s business;

     (b) with respect to which the Administrative Agent has an Acceptable Security Interest that is
superior to all other Liens (other than Excepted Liens), excluding, without limitation, Accounts
evidenced by an instrument or chattel paper not in the possession of Administrative Agent;

     (c) which are less than ninety (90) days past the original invoice date or the due date for
payment;

     (d) with respect to which the account debtor is not an Affiliate of the Borrower or a
director, officer, agent, stockholder or employee of Borrower or any of its Affiliates;

     (e) with respect to which, to the knowledge of any Responsible Officer, there is no unresolved
dispute with the respective account debtor; provided that any such Account shall only be excluded
from the definition of Eligible Accounts under this paragraph (e) to the extent of such unresolved
dispute; and

     (f) with respect to which no covenant, representation, or warranty contained in this Agreement
or any Security Document has been breached or is not true.

     “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender; and (c) any
other Person approved by the Administrative Agent and, unless an Event of Default has occurred and
is continuing at the time such Person becomes a Lender in accordance with Section 9.7, the

-8-

 

Borrower, such approval not to be unreasonably withheld or delayed by the Borrower or the
Administrative Agent; provided, however, that neither the Borrower nor an Affiliate of the
Borrower shall qualify as an Eligible Assignee.

     “Eligible Equipment” means, without duplication, all equipment owned by the Credit
Parties and located in the United States of America, as reflected on the most recent Appraisal
Report delivered by the Borrower to the Administrative Agent or as otherwise set forth on Schedule
1.1(a), which Appraisal Report shall be dated no earlier than twelve months prior to the applicable
date of determination of the Asset Coverage Ratio and:

     (a) with respect to which no covenant, representation, or warranty contained in this Agreement
or any Security Document has been breached or is not true;

     (b) in which there is an Acceptable Security Interest that is superior to all other Liens
(other than Excepted Liens);

     (c) which is not subject to any license or other agreement, other than any license or other
agreement entered into in the ordinary course of business, that limits or restricts the
Administrative Agent’s right to sell or otherwise dispose of such equipment; and

     (d) which has not been materially damaged and is saleable in its present state for the use for
which it was manufactured or purchased.

     “Environment” shall have the meanings set forth in 42 U.S.C. §9601(8).

     “Environmental Claim” means any third party (including governmental agencies and
employees) action, lawsuit, claim, demand, regulatory action or proceeding, order, decree, consent
agreement or notice of potential or actual responsibility or violation (including claims or
proceedings under the Occupational Safety and Health Acts or similar laws or requirements relating
to health or safety of employees) which seeks to impose liability under any Environmental Law.

     “Environmental Law” means all applicable federal, state, and local laws, rules,
regulations, ordinances, orders, decisions, agreements, and other requirements, including common
law theories, now or hereafter in effect and relating to, or in connection with the Environment,
health, or safety, including without limitation CERCLA, relating to (a) pollution, contamination,
injury, destruction, loss, protection, cleanup, reclamation or restoration of the air, surface
water, groundwater, land surface or subsurface strata, or other natural resources; (b) solid,
gaseous or liquid waste generation, treatment, processing, recycling, reclamation, cleanup,
storage, disposal or transportation; (c) exposure to pollutants, contaminants, hazardous, medical
infections, or toxic substances, materials or wastes; (d) the safety or health of employees; or
(e) the manufacture, processing, handling, transportation, distribution in commerce, use, storage
or disposal of hazardous, medical infections, or toxic substances, materials or wastes.

     “Environmental Permit” means any permit, license, order, approval, registration or
other authorization required under Environmental Law.

-9-

 

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

     “Equity Interest” means with respect to any Person, any shares, interests,
participation, or other equivalents (however designated) of corporate stock, membership interests
or partnership interests (or any other ownership interests) of such Person.

     “Equity Issuance” means any issuance of equity securities or any other Equity
Interests (including any preferred equity securities) by the Borrower or any of its Restricted
Subsidiaries other than equity securities issued (a) to the Borrower or one of its Restricted
Subsidiaries or (b) to employees, directors and officers of the Borrower and its Subsidiaries in
the ordinary course of business pursuant to a stock plan.

     “Equity Issuance Proceeds” means, with respect to any Equity Issuance, all cash and
cash equivalent investments received by the Borrower or any of its Restricted Subsidiaries from
such Equity Issuance after payment of, or provision for, all underwriter fees and expenses, SEC and
blue sky fees, printing costs, fees and expenses of accountants, lawyers and other professional
advisors, brokerage commissions and other out-of-pocket fees and expenses actually incurred in
connection with such Equity Issuance.

     “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of
the Federal Reserve Board as in effect from time to time.

     “Eurodollar Advance” means an Advance that bears interest based upon the Eurodollar
Rate.

     “Eurodollar Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Eurodollar Lending Office” in its Administrative Questionnaire (or, if no
such office is specified, its Domestic Lending Office) or such other office of such Lender as such
Lender may from time to time specify to the Borrower and the Administrative Agent.

     “Eurodollar Rate” means, for the Interest Period for each Eurodollar Advance
comprising the same Borrowing, the interest rate per annum (rounded upward to the nearest whole
multiple of 1/100 of 1%) set forth on the Reuters Screen LIBOR01 page, for deposits in Dollars at
11:00 a.m. (London, England time) two (2) Business Days before the first day of such Interest
Period and for a period equal to such Interest Period; provided that, if no such quotation
appears on the Reuters Reference LIBOR01 page, the Eurodollar Rate shall be the interest rate per
annum determined by the Administrative Agent to be the average of the rates per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) at which deposits in U.S. dollars are offered
for such relevant Interest Period to major banks in the London interbank market in London, England
by the Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two (2)
Business Days prior to the beginning of such Interest Period.

     “Eurodollar Rate Reserve Percentage” of any Lender for the Interest Period for any
Eurodollar Advance means the reserve percentage applicable during such Interest Period (or if more
than one such percentage shall be so applicable, the daily average of such percentages for those
days in such Interest Period during which any such percentage shall be so applicable) under
regulations issued from time to time by the Federal Reserve Board for determining the

-10-

 

maximum reserve requirement (including, without limitation, any emergency, supplemental or
other marginal reserve requirement) for such Lender with respect to liabilities or assets
consisting of or including Eurocurrency Liabilities having a term equal to such Interest Period.

     “Event of Default” has the meaning specified in Section 7.1.

     “Excepted Liens” means:

     (a) Liens imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s and
repairmen’s liens, and other similar liens arising in the ordinary course of business securing
obligations which are not overdue for a period of more than thirty (30) days or if more than thirty
(30) days overdue, (i) are being contested in good faith by appropriate procedures or proceedings
and for which adequate reserves have been established or (ii) with respect to which the failure to
make payment does not materially adversely effect the value or the use by the Borrower or its
Restricted Subsidiaries of the Property subject to such Liens;

     (b) Liens arising in the ordinary course of business out of pledges or deposits under workers
compensation laws, unemployment insurance, old age pensions, or other social security or retirement
benefits, or similar legislation to secure public or statutory obligations;

     (c) Liens for taxes, assessments, or other governmental charges which are not overdue for a
period of more than thirty (30) days, or if more than thirty (30) days overdue, (i)which are being
actively contested in good faith by appropriate proceedings or (ii) with respect to which the
failure to make payment could not reasonably be expected to have a Material Adverse Change;

     (d) encumbrances consisting of minor easements, zoning restrictions, or other restrictions on
the use of real property that do not (individually or in the aggregate) materially affect the value
of the assets encumbered thereby or materially impair the ability of the Borrower or a Restricted
Subsidiary to use such assets in its business, and none of which is violated in any material aspect
by existing or proposed structures or land use;

     (e) Liens arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of set-off or similar rights and remedies and burdening only deposit
accounts or other funds maintained with a depository institution;

     (f) Liens on cash or securities pledged to secure performance of tenders, surety and appeal
bonds, government contracts, performance and return of money bonds, bids, trade contracts, leases,
statutory obligations, regulatory obligations and other obligations of a like nature incurred in
the ordinary course of business and cash deposits to secure letters of credit in respect of the
foregoing;

     (g) any interest or title of a licensor or sublicensor under any license entered into by the
Borrower or its Restricted Subsidiaries; provided that (i) such license is entered into in the
ordinary course of business, (ii) such interest or title of licensor or sublicensor does not
interfere in any material respect in the business of the Borrower or its Restricted Subsidiaries,
(iii) such interest or title, if in the form of a Lien, secures only the obligations arising under
such license,

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and (iv) such interest or title only affects the property subject to such license or the
proceeds thereof;

     (h) any interest or title of a lessor or sublessor under any operating lease entered into by
the Borrower or its Restricted Subsidiaries; provided that (i) such lease is entered into, and any
Liens arise, in the ordinary course of business, (ii) any Liens secure obligations which are not
overdue for a period of more than thirty (30) days or if more than thirty (30) days overdue, are
being contested in good faith by appropriate procedures or proceedings and for which adequate
reserves have been established, (iii) any Liens secure only the obligations arising under such
lease and not debt for borrowed money, and (iv) any Liens only encumber property that is subject to
such lease (including Property located on the premises subject to the lease); and

     (i) judgment and attachment Liens not giving rise to an Event of Default, provided that (i)
any appropriate legal proceedings which may have been duly initiated for the review of such
judgment shall not have been finally terminated or the period within which such proceeding may be
initiated shall not have expired and (ii) no action to enforce such Lien has been commenced.

     “Existing Credit Agreements” means (a) that certain Credit Agreement dated as of
October 29, 2004, among Pioneer Drilling Services, Ltd., as borrower, the other credit parties
signatory thereto, the lenders party thereto from time to time, and Frost, as administrative agent
and lender and (b) that certain Second Amended and Restated Credit Agreement dated as of November
30, 2007, among WEDGE Energy Holdings, LLC, as borrower, the other credit parties signatory
thereto, the lenders signatory thereto from time to time and Wachovia Bank, N.A., for itself, as a
lender and as agent for the lenders.

     “Existing Letters of Credit” means the letters of credit issued by Frost and set forth
on the attached Schedule 1.1(b).

     “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of
New York on the Business Day next succeeding such day; provided that (a) if such day is not
a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the
preceding Business Day as so published on the next succeeding Business Day and (b) if no such rate
is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be
the average rate charged to the Administrative Agent (in its individual capacity) on such day on
such transactions as determined by the Administrative Agent.

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

     “Fee Letter” means that certain fee and mandate letter dated as of November 20, 2007
between the Borrower and Wells Fargo, as amended by that certain letter dated as of
January 31, 2008 between Borrower and Wells Fargo.

     “Financial Officer” means, with respect to any Credit Party, the chief executive
officer, chief financial officer, chief accounting officer or treasurer.

-12-

 

     “Financial Statements” means, for any period, (a) the consolidated financial
statements of the Borrower and its Restricted Subsidiaries, including statements of income,
shareholder equity and comprehensive income and cash flow for such period as well as a balance
sheet as of the end of such period and (b) the consolidated financial statements of Global Holdings
and its Subsidiaries, including statements of income and cash flow for such period as well as a
balance sheet as of the end of such period, in each case, all prepared in accordance with GAAP in
all material respects.

     “Frost” means The Frost National Bank.

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

     “Global Holdings” means Pioneer Global Holdings, Inc., a Delaware corporation.

     “Governmental Authority” means, with respect to any Person, any foreign governmental
authority, the United States of America, any state of the United States of America, the District of
Columbia, and any subdivision of any of the foregoing, and any agency, department, commission,
board, authority or instrumentality, bureau or court having jurisdiction over such Person
(including any supra-national bodies such as the European Union or the European Central Bank).

     “Guarantee” means, as to any Person, any (a) any obligation, contingent or otherwise,
of such Person guaranteeing or having the economic effect of guaranteeing any Debt or other
obligation payable or performable by another Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of such Person, direct or indirect,
(i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or
other obligation or to purchase (or to advance or supply funds for the purchase of) any security
for the payment of such Debt or other obligation, (ii) to purchase or lease property, securities or
services for the purpose of assuring the owner of such Debt or other obligation of the payment or
performance of such Debt or other obligation, (iii) to maintain working capital, equity capital or
any other financial statement condition or liquidity or level of income or cash flow of the primary
obligor so as to enable the primary obligor to pay such Debt or other obligation, or (iv) entered
into for the purpose of assuring in any other manner the owner of such Debt or other obligation of
the payment or performance thereof or to protect such owner against loss in respect thereof (in
whole or in part), or (b) any Lien on any assets of such Person securing any Debt or other
obligation of any other Person, whether or not such Debt or other obligation is assumed by such
Person; provided, however, that the term “Guarantee” shall not include endorsements for
collection or deposit in the ordinary course of business. The amount of any Guarantee shall be
deemed to be an amount equal to the stated or determinable amount of the related primary
obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith. The term “Guarantee” as a verb has a corresponding meaning.

-13-

 

     “Guarantors” means (a) each of the Restricted Subsidiaries of the Borrower listed on
Schedule 1.1(c) and (b) any other Person that becomes a guarantor of all or a portion of the
Obligations.

     “Guaranty” means the Guaranty Agreement by the Guarantors in substantially the same
form as Exhibit D, as the same may be amended, supplemented, and otherwise modified from
time to time.

     “Hazardous Substance” means any substance or material identified as such pursuant to
CERCLA and those regulated under any other Environmental Law, including without limitation
pollutants, contaminants, flammable substances and materials, explosives, radioactive materials,
oil, petroleum and petroleum products, chemical liquids and solids, polychlorinated biphenyls,
asbestos, toxic substances, radionuclides, radioactive materials and any other materials regulated
under Environmental Laws.

     “Hazardous Waste” means any substance or material regulated or designated as such
pursuant to the Resource Conservation and Recovery Act, 42 U.S.C. §§6901, et seq., and any
regulations promulgated thereto.

     “Hedging Arrangement” means a hedge, call, swap, collar, floor, cap, option, forward
sale or purchase or other contract or similar arrangement (including any obligations to purchase or
sell any commodity or security at a future date for a specific price) which is entered into to
reduce or eliminate or otherwise protect against the risk of fluctuations in prices or rates,
including interest rates, foreign exchange rates, commodity prices and securities prices.

     “Interest Coverage Ratio” means, as of the end of any fiscal quarter, the ratio of (a)
the consolidated EBITDA of the Borrower and its consolidated Restricted Subsidiaries for the twelve
month period then ended to (b) the consolidated Interest Expense of the Borrower and its
consolidated Restricted Subsidiaries for the twelve month period then ended; provided that when
calculating the Interest Coverage Ratio, consolidated EBITDA and consolidated Interest Expense of
the Wedge Entities shall be equal to (i) for the period ending March 31, 2008, consolidated EBITDA
and consolidated Interest Expense, respectively, of the Wedge Entities during the month ended March
31, 2008, multiplied by twelve (12), (ii) for the period ending June 30, 2008, consolidated EBITDA
and consolidated Interest Expense, respectively, of the Wedge Entities during the four (4) months
ended June 30, 2008, multiplied by three (3), (iii) for the period ending September 30, 2008,
consolidated EBITDA and consolidated Interest Expense, respectively, of the Wedge Entities during
the seven (7) months ended September 30, 2008, multiplied by twelve-sevenths (12/7) and (iv) for
the period ending December 31, 2008, consolidated EBITDA and consolidated Interest Expense,
respectively, of the Wedge Entities during the ten (10) months ended December 31, 2008, multiplied
by six-fifths (6/5).

     “Interest Expense” means, for any period and with respect to any Person, total
interest expense for such period (including that attributable to obligations which have been or
should be, in accordance with GAAP, recorded as Capital Leases) as determined in accordance with
GAAP in all material respects.

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     “Interest Period” means for each Eurodollar Advance comprising part of the same
Borrowing, the period commencing on the date of such Eurodollar Advance is made or deemed made and
ending on the last day of the period selected by the Borrower pursuant to the provisions below and
Section 2.4, and thereafter, each subsequent period commencing on the last day of the immediately
preceding Interest Period and ending on the last day of the period selected by the Borrower
pursuant to the provisions below and Section 2.4. The duration of each such Interest Period shall
be one, two, three, or six months (or to the extent available to all Lenders, nine or twelve
months), in each case as the Borrower may select, provided that:

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

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

     (c) no Interest Period shall extend beyond the Maturity Date.

     “Investment” means, with respect to any Person, any direct or indirect acquisition or
investment by such Person, whether by means of (a) the purchase or other acquisition of any Equity
Interest of another Person, (b) the purchase or other acquisition (in one transaction or a series
of transactions) of assets of another Person that constitute a business unit or all or a
substantial part of the business of such Person, or (c) any loan, advance or capital contribution
to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or
interest in, another Person. For purposes of covenant compliance, the amount of any Investment
shall be the amount actually invested, without adjustment for subsequent increases or decreases in
the value of such Investment.

     “Issuing Lender” means (a) Wells Fargo, in its capacity as the Lender that issues
Letters of Credit for the account of the Borrower pursuant to the terms of this Agreement and (b)
with respect to Existing Letters of Credit only, Frost, as the context may require.

     “Legal Requirement” means any law, statute, ordinance, decree, requirement, order,
judgment, rule, regulation (or official interpretation of any of the foregoing) of, and the terms
of any license or permit issued by, any Governmental Authority, including, but not limited to,
Regulations T, U and X.

     “Lenders” means the lenders listed on the signature pages of this Agreement and each
Eligible Assignee that shall become a party to this Agreement pursuant to Section 9.7.

     “Letter of Credit” means any letter of credit issued by the Issuing Lender pursuant to
the terms of this Agreement, in such form as may be agreed by the Borrower and the Issuing Lender
and in substance acceptable to the Issuing Lender in its sole discretion, as the same may be
amended, supplemented, and otherwise modified from time to time.

-15-

 

     “Letter of Credit Agreement” means the Issuing Lender’s standard form letter of credit
agreement which has been executed by the Borrower and accepted by the Issuing Lender in connection
with the issuance of Letters of Credit, as the same may be amended, supplemented, and otherwise
modified from time to time.

     “Letter of Credit Application” means the Issuing Lender’s standard form letter of
credit application which has been executed by the Borrower and accepted by the Issuing Lender in
connection with the issuance of a Letter of Credit, as the same may be amended, supplemented, and
otherwise modified from time to time.

     “Letter of Credit Documents” means all Letters of Credit, Letter of Credit
Applications, the Letter of Credit Agreement and amendments thereof, and agreements, documents, and
instruments entered into in connection therewith or relating thereto.

     “Letter of Credit Exposure” means, at the date of its determination by the
Administrative Agent, the aggregate outstanding undrawn amount of Letters of Credit plus the
aggregate amount of all of the Borrower’s outstanding payment obligations under drawn Letters of
Credit.

     “Letter of Credit Obligations” means any obligations of the Borrower under this
Agreement in connection with the Letters of Credit.

     “Leverage Ratio” means, as of the end of any fiscal quarter, the ratio of (a) the sum
of (i) all indebtedness of the Borrower and its consolidated Restricted Subsidiaries as determined
in accordance with GAAP as of such date of determination plus (ii) without duplication, all
direct or contingent obligations of the Borrower and its Restricted Subsidiaries arising under
letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety
bonds and similar instruments as of such date of determination plus (iii) without
duplication, all Guarantees of the Borrower and its Restricted Subsidiaries in respect of Debt of
any other Person to (b) the EBITDA of the Borrower and its consolidated Restricted Subsidiaries for
the twelve month period then ended; provided that when calculating the Leverage Ratio,
consolidated EBITDA of the Wedge Entities shall be equal to (i) for the period ending March 31,
2008, consolidated EBITDA of the Wedge Entities during the month ended March 31, 2008, multiplied
by twelve (12), (ii) for the period ending June 30, 2008, consolidated EBITDA of the Wedge Entities
during the four (4) months ended June 30, 2008, multiplied by three (3), (iii) for the period
ending September 30, 2008, consolidated EBITDA of the Wedge Entities during the seven (7) months
ended September 30, 2008, multiplied by twelve-sevenths (12/7) and (iv) for the period ending
December 31, 2008, consolidated EBITDA of the Wedge Entities during the ten (10) months ended
December 31, 2008, multiplied by six-fifths (6/5).

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

     “Liquid Investments” means (a) readily marketable direct full faith and credit
obligations of the United States of America or obligations unconditionally guaranteed by the full
faith and credit of the United States of America; (b) commercial paper issued by (i) any Lender or
any

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Affiliate of any Lender or (ii) any commercial banking institutions or corporations rated at
least P-1 by Moody’s Investors Services, Inc. or A-1 by Standard & Poor’s Rating Group;
(c) certificates of deposit, time deposits, and bankers’ acceptances issued by (i) any of the
Lenders or (ii) any other commercial banking institution which is a member of the Federal Reserve
System and has a combined capital and surplus and undivided profits of not less than
$250,000,000.00 and rated Aa by Moody’s Investor Service, Inc. or AA by Standard & Poor’s Rating
Group; (d) repurchase agreements which are entered into with any of the Lenders or any major money
center banks included in the commercial banking institutions described in clause (c) and which are
secured by readily marketable direct full faith and credit obligations of the government of the
United States of America or any agency thereof; (e) investments in any money market fund which
holds investments substantially of the type described in the foregoing clauses (a) through (d); (f)
auction rate securities held as of the Effective Date and (g) other investments made through the
Administrative Agent or its Affiliates and approved by the Administrative Agent. All the Liquid
Investments described in clauses (a) through (d) above shall have maturities of not more than 365
days from the date of issue.

     “Majority Lenders” means (a) at any time when there are more than two (2) Lenders, at
least two (2) Lenders holding more than 50% of the then aggregate unpaid principal amount of the
Advances held by the Lenders at such time, or, if no such principal amount is then outstanding, at
least two Lenders having at least 50% of the Total Commitment at such time (with the aggregate
amount of each Lender’s risk participation and funded participation in the Letter of Credit
Exposure and Swing Line Advances being deemed “held” by such Lender for purposes of this
definition) and (b) at any time when there are one or two Lenders, all of the Lenders.

     “Material Adverse Change” shall mean a material adverse change (a) in the business,
condition (financial or otherwise), or results of operations of the Borrower and the Restricted
Subsidiaries, taken as a whole; (b) on the validity or enforceability of this Agreement or any of
the other Credit Documents; or (c) on the ability of the Borrower, individually, or the Credit
Parties, collectively, to perform their obligations under this Agreement, any Note, the Guaranty or
any other Credit Document.

     “Material Subsidiary” shall mean a Restricted Subsidiary of the Borrower having:
either (a) 5% or more of EBITDA of the Borrower and its consolidated Restricted Subsidiaries
(including EBITDA attributable to such Restricted Subsidiary) for the four fiscal quarter period
ending as of the most recent fiscal quarter for which the Borrower has delivered Financial
Statements pursuant to Section 5.2(a) or (b); or (b) 5% of the book value of assets of the Borrower
and its consolidated Restricted Subsidiaries (including the book value of the assets attributable
to such Restricted Subsidiary) as of the end of the most recent fiscal quarter for which the
Borrower has delivered Financial Statements pursuant to Section 5.2(a) or (b).

     “Maturity Date” means the earlier of (a) February 28, 2013 and (b) the earlier
termination in whole of the Revolving Commitments pursuant to Section 2.1(b) or Article 7.

     “Maximum Rate” means the maximum nonusurious interest rate under applicable law.

-17-

 

     “Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA to which the Borrower or any member of the Controlled Group is making or accruing an
obligation to make contributions.

     “Net Cash Proceeds” means, in connection with any Disposition or Recovery Event, the
proceeds thereof in the form of cash and cash equivalents (including any such proceeds received by
way of deferred payment of principal pursuant to a note or installment receivable or purchase price
adjustment receivable or otherwise, but only as and when received), net of attorneys’ fees,
accountants’ fees, investment banking fees and insurance consultant fees, amounts required to be
applied to the repayment of Debt secured by a Lien permitted hereunder on any asset which is the
subject of such Disposition or Recovery Event (other than any Lien pursuant to a Security Document)
and other customary fees and expenses actually incurred in connection therewith and net of taxes
paid or reasonably estimated to be payable as a result thereof as a result of any gain recognized
in connection therewith (after taking into account any applicable tax credits or deductions and any
tax sharing arrangements).

     “Net Income” means, for any period and with respect to any Person, the net income for
such period for such Person after taxes as determined in accordance with GAAP, excluding, however,
extraordinary items, including (a) any net non-cash gain or loss during such period arising from
the sale, exchange, retirement or other disposition of capital assets (such term to include all
fixed assets and all securities) other than in the ordinary course of business, and (b) any
write-up or write-down of assets.

     “Net Worth” means, with respect to any Person and as of the date of its determination,
the excess of the assets of such Person over the sum of the liabilities of such Person and the
minority interests of such Person, as determined in accordance with GAAP.

     “Non-Consenting Lender” has the meaning set forth in Section 2.14.

     “Notes” means the Revolving Notes and the Swing Line Note, as applicable.

     “Notice of Borrowing” means a notice of borrowing signed by the Borrower in
substantially the same form as Exhibit E.

     “Notice of Conversion or Continuation” means a notice of conversion or continuation
signed by the Borrower in substantially the same form as Exhibit F.

     “Notice of Payment” means a notice of payment signed by the Borrower in substantially
the same form as Exhibit G.

     “Obligations” means (a) all principal, interest (including post-petition interest),
fees, reimbursements, indemnifications, and other amounts now or hereafter owed by any of the
Credit Parties to the Lenders, the Swing Line Lender, the Issuing Lender, or the Administrative
Agent under this Agreement and the Credit Documents, including, the Letter of Credit Obligations,
and any increases, extensions, and rearrangements of those obligations under any amendments,
supplements, and other modifications of the documents and agreements creating those obligations,
(b) all obligations of any of the Credit Parties owing to any Swap Counterparty under any Hedging
Arrangements entered into between such Swap Counterparty and any of the

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Credit Parties, and (c) all obligations of any of the Credit Parties owing to any Cash
Management Bank under any Cash Management Agreements entered into between such Cash Management Bank
and any of the Credit Parties.

     “Organization Documents” means (a) for any corporation, the certificate or articles of
incorporation and the bylaws, (b) for any partnership, the partnership agreement and, if
applicable, certificate of limited partnership or (c) for any limited liability company, the
operating agreement and articles or certificates of formation or incorporation.

     “Other Fixed Assets” without duplication, all fixed assets (other than Eligible
Equipment) owned by the Credit Parties and located in the United States of America, as reflected in
the most recent Financial Statements delivered pursuant to Section 5.2 (a) or (b), as applicable,
and:

     (a) with respect to which no covenant, representation, or warranty contained in this Agreement
or any Security Document has been breached or is not true;

     (b) in which there is an Acceptable Security Interest that is superior to all other Liens
(other than Excepted Liens); and

     (c) which has not been materially damaged and is saleable in its present state for the use for
which it was manufactured or purchased.

     “Other Taxes” has the meaning set forth in Section 2.13(b).

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

     “Permitted Debt” has the meaning set forth in Section 6.1.

     “Permitted Investments” has the meaning set forth in Section 6.3.

     “Permitted Liens” has the meaning set forth in Section 6.2.

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

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

     “Pledge Agreement” means the Pledge Agreement by each Credit Party which owns any
Equity Interest in another Person (other than Global Holdings and its Subsidiaries) and made in
favor of the Administrative Agent in substantially the same form as Exhibit H, as it may be
amended, modified, or supplemented from time to time; provided that, any Credit Party that
owns an Equity Interest in a Person (other than Global Holdings and its Subsidiaries) that is a

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controlled foreign corporation under Section 957 of the Code shall not be required to pledge
in excess of 65% of such Equity Interest in such Person pursuant to the Pledge Agreement.

     “Prime Rate” means the per annum rate of interest established from time to time by the
Administrative Agent at its principal office as its prime rate, which rate may not be the lowest
rate of interest charged by such Lender to its customers.

     “Pro Rata Share” means, at any time with respect to any Lender, (a) the ratio
(expressed as a percentage) of such Lender’s Commitment at such time to the Total Commitment at
such time, or (b) if all of the Commitments have been terminated, the ratio (expressed as a
percentage) of (i) the sum of such Lender’s outstanding Revolving Advances plus the Letter
of Credit Exposure allocable to such Lender plus the exposure in respect of the outstanding
Swing Line Advances allocable to such Lender at such time to (ii) the sum of the total aggregate
outstanding Revolving Advances plus the aggregate Letter of Credit Exposure plus
the aggregate outstanding Swing Line Advances at such time.

     “Property” of any Person means any property or assets (whether real, personal, or
mixed, tangible or intangible) of such Person.

     “Recovery Event” means any settlement of or payment in respect of any property or
casualty insurance claim (excluding any claim in respect of business interruption) or any
condemnation proceeding relating to any asset of the Borrower or any of its Restricted
Subsidiaries.

     “Register” has the meaning set forth in Section 9.7(b).

     “Regulations T, U, and X” means Regulations T, U, and X of the Federal Reserve Board,
as each is from time to time in effect, and all official rulings and interpretations thereunder or
thereof.

     “Reinvestment Deferred Amount” with respect to any Reinvestment Event, the aggregate
Net Cash Proceeds received by the Borrower or any of its Restricted Subsidiaries in connection
therewith that are not required to be applied to prepay the Advances pursuant to Section 2.5(c) as
a result of the delivery of a Reinvestment Notice.

     “Reinvestment Event” means any Disposition or Recovery Event in respect of which a
Reinvestment Notice has been delivered.

     “Reinvestment Notice” means a written notice executed by a Responsible Officer of the
Borrower stating that no Event of Default has occurred and is continuing and that the Borrower
(directly or indirectly through a Restricted Subsidiary) intends and expects to use all or a
specified portion of the Net Cash Proceeds of a Disposition or Recovery Event to acquire assets
useful in its business and/or to repair Property, as applicable.

     “Reinvestment Prepayment Amount” means with respect to any Reinvestment Event, the
Reinvestment Deferred Amount relating thereto less any amount expended prior to the relevant
Reinvestment Prepayment Date, and in any event expended prior to the date on which the Borrower
would otherwise be required to apply such Reinvestment Deferred Amount to repay

-20-

 

any other Debt of the Borrower or any of its Restricted Subsidiaries, to acquire assets useful
in the business of any such Person and/or to repair Property, as applicable.

     “Reinvestment Prepayment Date” means with respect to any Reinvestment Event, the
earlier of (a) the date occurring 270 days after such Reinvestment Event (or such later date as
agreed to by the Administrative Agent in its reasonable discretion), (b) the date on which the
Borrower (directly or indirectly through a Restricted Subsidiary) shall have determined not to, or
shall have otherwise ceased to, acquire assets useful in its business and/or to repair Property, as
applicable, with all or any portion of the relevant Reinvestment Deferred Amount, and (c) the
occurrence and continuance of any Event of Default.

     “Release” shall have the meaning set forth in CERCLA or under any other Environmental
Law.

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA
(other than any such event not subject to the provision for 30-day notice to the PBGC under the
regulations issued under such section).

     “Response” shall have the meaning set forth in CERCLA or under any other Environmental
Law.

     “Responsible Officer” means, with respect to any Credit Party, any Financial Officer,
secretary or assistant secretary of such Credit Party, or any other officer having substantially
the same authority and responsibility.

     “Restricted Payment” means, with respect to any Person, (a) any direct or indirect
dividend or distribution (whether in cash, securities or other Property) on, or any direct or
indirect payment of any kind or character (whether in cash, securities or other Property) in
consideration for or otherwise in connection with the ownership of, or any retirement, purchase,
redemption, conversion, exchange, sinking fund or other acquisition of, any Equity Interest of such
Person, or any options, warrants or rights to purchase or acquire any such Equity Interest of such
Person or (b) principal or interest payments (in cash, Property or otherwise) on, or redemptions
of, subordinated debt of such Person; provided that the term “Restricted Payment” shall not
include any dividend or distribution payable solely in Equity Interests of the Borrower or
warrants, options or other rights to purchase such Equity Interests. For the avoidance of doubt,
issuances of Equity Interests or any options, warrants or rights to purchase or acquire such Equity
Interests to an employee, director or officer of the Borrower and its Subsidiaries in the ordinary
course of business pursuant to a stock plan shall not be considered a Restricted Payment.

     “Restricted Subsidiary” means each Subsidiary of the Borrower other than Global
Holdings and its Subsidiaries.

     “Revolving Advance” means any advance by a Lender to the Borrower as part of a
Revolving Borrowing.

     “Revolving Availability” means, as of any date of determination, the excess, if any,
of the Total Commitment over the sum of the aggregate outstanding amount of all Revolving Advances

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plus the Letter of Credit Exposure plus the aggregate outstanding amount of
all Swing Line Advances.

     “Revolving Borrowing” means simultaneous Revolving Advances of the same Type made by
the Lenders pursuant to Section 2.1(a) or Converted by each Lender to Revolving Advances of a
different Type pursuant to Section 2.4(b).

     “Revolving Commitment” means, for each Lender, the obligation of such Lender to make
Revolving Advances to the Borrower, and to issue or participate in Letters of Credit in an
aggregate amount equal to the amount set opposite such Lender’s name on Schedule 2.1 as its
Revolving Commitment, or if such Lender has entered into any Assignment and Acceptance, set forth
for such Lender as its Revolving Commitment in the Register, as such amount may be reduced pursuant
to Section 2.1(b); provided that, after the Maturity Date, the Revolving Commitment for
each Lender shall be zero.

     “Revolving Loan” means the aggregate outstanding principal amount of all Revolving
Advances made pursuant to this Agreement.

     “Revolving Note” means a promissory note of the Borrower payable to a Lender in the
amount of such Lender’s Revolving Commitment, in substantially the same form as Exhibit J
-1, evidencing indebtedness of the Borrower to such Lender resulting from Revolving Advances
owing to such Lender.

     “Secured Parties” means the Administrative Agent, the Issuing Lender, the Swing Line
Lender, the Lenders, the Swap Counterparties and the Cash Management Banks.

     “Security Agreement” means the Security Agreement among the Credit Parties and the
Administrative Agent in substantially the same form as Exhibit I, as it may be amended,
modified, or supplemented from time to time.

     “Security Documents” means, collectively, the Pledge Agreement, the Security
Agreement, the Account Control Agreements, and any and all other instruments, documents or
agreements now or hereafter executed by the Borrower or any other Person to secure the Obligations.

     “Solvent” means, as to any Person, on the date of any determination (a) the fair value
of the Property of such Person is greater than the total amount of debts and other liabilities
(including without limitation, contingent liabilities) of such Person, (b) the present fair salable
value of the assets of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts and other liabilities (including, without
limitation, contingent liabilities) as they become absolute and matured, (c) such Person is able to
pay its debts and other liabilities (including, without limitation, contingent liabilities) as they
mature in the normal course of business, (d) such Person does not intend to, and does not believe
that it will, incur debts or liabilities (including, without limitation, contingent liabilities)
beyond such Person’s ability to pay as such debts and liabilities mature, and (e) such Person is
not engaged in, and is not about to engage in, business or a transaction for which such Person’s
Property would constitute unreasonably small capital.

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     “Subsidiary” means, with respect to any Person, any other Person, a majority of whose
outstanding Voting Securities (other than directors’ qualifying shares) shall at any time be owned
by such Person or one or more Subsidiaries of such Person. Unless the context otherwise requires,
each reference to a Subsidiary shall be a reference to a Subsidiary of Borrower.

     “Swap Counterparty” means a Lender or an Affiliate of a Lender that has entered into a
Hedging Arrangement with a Credit Party as permitted by the terms of this Agreement.

     “Swap Termination Value” means, in respect of any one or more Hedging Arrangements,
after taking into account the effect of any legally enforceable netting agreement relating to such
Hedging Arrangements, (a) for any date on or after the date such Hedging Arrangements have been
closed out and termination value(s) determined in accordance therewith, such termination value(s),
and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Hedging Arrangements, as determined based upon one or more
mid-market or other readily available quotations provided by any recognized dealer in such Hedging
Arrangements (which may include a Lender or any Affiliate of a Lender).

     “Swing Line Advance” means an advance by the Swing Line Lender to the Borrower as part
of a Swing Line Borrowing.

     “Swing Line Borrowing” means a Swing Line Advance made by the Swing Line Lender
pursuant to Section 2.3.

     “Swing Line Lender” means Wells Fargo.

     “Swing Line Loan” means the aggregate outstanding principal amount of all Swing Line
Advances made pursuant to Section 2.3.

     “Swing Line Loan Commitment” means, for the Swing Line Lender, the obligation of the
Swing Line Lender to make Swing Line Advances to the Borrower up to $40,000,000.00;
provided that, on and after the Maturity Date, the Swing Line Loan Commitment shall be
zero.

     “Swing Line Note” means the promissory note made by the Borrower payable to the Swing
Line Lender evidencing the indebtedness of the Borrower to the Swing Line Lender resulting from
Swing Line Advances in substantially the same form as Exhibit J-2.

     “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or
possession of property creating obligations that do not appear on the balance sheet of such Person
but which, upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

     “Taxes” means as to Administrative Agent, the Issuing Lender, the Swing Line Lender or
a Lender (i) taxes imposed on its income and franchise or similar taxes (however denominated)
imposed on it by the United States of America or such other jurisdiction (or any political
subdivision thereof) under the laws of which (or under the laws of a political subdivision of
which) (A) the Administrative Agent, the Issuing Lender, the Swing Line Lender or such Lender is
organized or in which its principal executive office is located or (B) in the case of each

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Lender, such Lender’s Applicable Lending Office is located; (ii) any branch profits taxes
imposed by the United States of America or any similar tax imposed by any other jurisdiction in
which the Administrative Agent, the Issuing Lender, the Swing Line Lender or a Lender receiving
such payment is located; or (iii) any taxes imposed by the United States of America by means of
withholding at the source, if and to the extent such United States withholding taxes are in effect
on the date a Lender becomes a Lender hereunder.

     “Tax Group” means any member of the Affiliated Group as determined under Section 1504
of the Code.

     “Termination Event” means (a) a Reportable Event with respect to a Plan, (b) the
withdrawal of the Borrower or any member of the Controlled Group from a Plan during a plan year in
which it was a “substantial employer” as defined in Section 4001(a)(2) of ERISA, (c) the filing of
a notice of intent to terminate a Plan or the treatment of a Plan amendment as a termination under
Section 4041(c) of ERISA, (d) the institution of proceedings to terminate a Plan by the PBGC, or
(e) any other event or condition which constitutes grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan.

     “Total Commitment” means, at any time, the aggregate amount of the Revolving
Commitments of the Lenders at such time. The initial Total Commitment is $400,000,000.

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

     “UCC” means the Uniform Commercial Code as in effect from time to time in the State of
Texas; provided that if perfection or the effect of perfection or non-perfection is governed by the
Uniform Commercial Code as in effect in a jurisdiction other than the State of Texas, “UCC” means
the Uniform Commercial Code as in effect from time to time in such other jurisdiction.

     “Voting Securities” means (a) with respect to any corporation, capital stock of the
corporation having general voting power under ordinary circumstances to elect directors of such
corporation (irrespective of whether at the time stock of any other class or classes shall have or
might have special voting power or rights by reason of the happening of any contingency), (b) with
respect to any partnership, any partnership interest or other ownership interest having general
voting power to elect the general partner or other management of the partnership or other Person,
and (c) with respect to any limited liability company, membership certificates or interests having
general voting power under ordinary circumstances to elect managers of such limited liability
company.

     “Wedge Acquisition” means the acquisition by the Borrower and the Guarantors of all of
the outstanding Equity Interests of the Wedge Entities pursuant to the Wedge Acquisition Documents.

     “Wedge Acquisition Documents” means that certain Securities Purchase Agreement dated
January 31, 2008, by and among the Borrower, WEDGE Group Incorporated and certain of its
subsidiaries, Timothy Daley, John Patterson and Patrick Grissom, together with the exhibits and
schedules thereto and each other agreement, instrument, or document executed in connection
therewith.

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     “Wedge Entities” means each of WEDGE Well Services, L.L.C., a Delaware limited
liability company, WEDGE Wireline Services, Inc., a Delaware corporation, Rocky Mountain Phoenix
Surveys, Inc., a Colorado corporation, WEDGE Log-Tech, L.L.C., a Delaware limited liability
company, Penkota Wireline Services, Inc., a North Dakota corporation, and WEDGE Fishing & Rental
Services, L.L.C., a Delaware limited liability company.

     “Wells Fargo” means Wells Fargo Bank, N.A.

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

     Section 1.3 Accounting Terms; Changes in GAAP.

     (a) All accounting terms not specifically defined in this Agreement shall be construed in
accordance with GAAP applied on a consistent basis with those applied in the preparation of the
Financial Statements delivered to the Administrative Agent for the fiscal year ending
March 31, 2007.

     (b) Unless otherwise indicated, all Financial Statements of the Borrower, all calculations for
compliance with covenants in this Agreement, all determinations of the Applicable Margin, and all
calculations of any amounts to be calculated under the definitions in Section 1.1 shall be based
upon the consolidated accounts of the Borrower and its Restricted Subsidiaries in accordance with
GAAP and consistent with the principles of consolidation applied in preparing the Borrower’s
Financial Statements referred to in Section 4.4(a).

     (c) If any change in GAAP results in a change in the calculation of the financial covenants or
interpretation of related provisions of this Agreement or any other Credit Document, then Borrower,
Administrative Agent, Swing Line Lender, Issuing Lender and each Lender agree to amend such
provisions of this Agreement so as to equitably reflect such changes in GAAP with the desired
result that the criteria for evaluating Borrower’s financial condition shall be the same after such
change in GAAP as if such change had not been made, provided that, notwithstanding any other
provision of this Agreement, the Majority Lenders’ agreement to any amendment of such provisions
shall be sufficient to bind all Lenders; provided further, until such time as the financial
covenants and the related provisions of this Agreement have been amended in accordance with the
terms of this subsection 1.3(c), the calculations of financial covenants and the interpretation of
any related provisions shall be calculated and interpreted in accordance with GAAP as in effect
immediately prior to such change in GAAP.

     Section 1.4 Classes and Types of Advances. Advances are distinguished by “Class” and
“Type”. The “Class” of an Advance refers to the determination of whether such Advance is a
Revolving Advance, or a Swing Line Advance. The “Type” of an Advance refers to the determination
of whether such Advance is a Base Rate Advance or a Eurodollar Advance.

     Section 1.5 Miscellaneous. Article, Section, Schedule, and Exhibit references are to
this Agreement, unless otherwise specified. All references to instruments, documents, contracts,
and agreements are references to such instruments, documents, contracts, and agreements as the same
may be amended, supplemented, and otherwise modified from time to time, unless

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otherwise specified and shall include all schedules and exhibits thereto unless otherwise
specified. The words “hereof”, “herein”, and “hereunder” and words of similar import when used in
this Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement. The term “including” means “including, without limitation,”. Paragraph headings have
been inserted in this Agreement as a matter of convenience for reference only and it is agreed that
such paragraph headings are not a part of this Agreement and shall not be used in the
interpretation of any provision of this Agreement.

ARTICLE 2

CREDIT FACILITIES

     Section 2.1 Revolving Commitments.

     (a) Revolving Commitment. Each Lender severally agrees, on the terms and conditions
set forth in this Agreement, to make Revolving Advances to the Borrower from time to time on any
Business Day during the period from the Effective Date until the Maturity Date; provided
that after giving effect to such Revolving Advances, the sum of the aggregate outstanding amount of
all Revolving Advances plus the Letter of Credit Exposure plus the aggregate
outstanding amount of all Swing Line Advances, shall not exceed the Total Commitment in effect at
such time. Each Revolving Borrowing shall (i) if comprised of Base Rate Advances be in an
aggregate amount not less than $500,000.00 and in integral multiples of $100,000.00 in excess
thereof, (ii) if comprised of Eurodollar Advances be in an aggregate amount not less than
$1,000,000.00 and in integral multiples of $500,000.00 in excess thereof, and (iii) consist of
Revolving Advances by the Lenders ratably according to their respective Revolving Commitment.
Within the limits of each Lender’s Revolving Commitment, the Borrower may from time to time borrow,
prepay pursuant to Section 2.5, and reborrow under this Section 2.1(a).

     (b) Reduction of the Commitments. The Borrower shall have the right, upon at least
three Business Days’ irrevocable notice to the Administrative Agent, to terminate in whole or
reduce ratably in part the unused portion of the Revolving Commitments; provided that each
partial reduction shall be in the aggregate amount of $1,000,000.00 and in integral multiples of
$500,000.00 in excess thereof. Any reduction or termination of the Revolving Commitments pursuant
to this Section 2.1(b) shall be permanent, with no obligation of the Lenders to reinstate such
Commitments, and the Commitment Fees shall thereafter be computed on the basis of the Revolving
Commitments, as so reduced. Notwithstanding the foregoing, the Borrower may (subject to payment to
the Lenders of any applicable amounts under Section 2.10 hereof) rescind or postpone any notice to
terminate in whole the Revolving Commitments if such termination would have resulted from a
refinancing of this Agreement, which refinancing shall not be consummated or shall otherwise be
delayed.

     (c) Revolving Notes. At the request of any Lender, the indebtedness of the Borrower
to such Lender resulting from Revolving Advances owing to such Lender shall be evidenced by a
Revolving Note.

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     (d) Swing Line Note. At the request of the Swing Line Lender, the indebtedness of the
Borrower to the Swing Line Lender resulting from Swing Line Advances owing to the Swing Line
Lender, as set forth in Section 2.3 below, shall be evidenced by a Swing Line Note.

     Section 2.2 Letters of Credit.

     (a) Commitment for Letters of Credit. Subject to the terms and conditions set forth
in this Agreement, the Issuing Lender agrees, in reliance upon the agreements of the other Lenders
set forth in this Section 2.2, from time to time on any Business Day during the period from
the Effective Date until the Maturity Date, to issue, increase or extend the expiration date of,
Letters of Credit for the account of the Borrower or a Guarantor (in which case the Borrower and
such Guarantor shall be co-applicants with respect to such Letter of Credit), provided that no
Letter of Credit will be issued, increased, or extended:

     (i) if such issuance, increase, or extension would cause the Letter of Credit Exposure
to exceed the lesser of (A) $50,000,000 and (B) an amount equal to (1) the Total Commitment
in effect at such time minus (2) the sum of the aggregate outstanding principal
amount of all Revolving Advances plus the Letter of Credit Exposure plus the
aggregate outstanding principal amount of all Swing Line Advances;

     (ii) unless such Letter of Credit has an expiration date not later than one year after
the Maturity Date; provided that, if any Letter of Credit has an expiration date
after the Maturity Date, the Borrower shall deposit into the Cash Collateral Account cash in
an amount equal to 103% of the Letter of Credit Exposure allocable to such Letter of Credit
at least 30 days prior to the Maturity Date or, if such Letter of Credit is issued,
increased or extended within the 30 day period prior to the Maturity Date, on the date of
the issuance, increase or extension of such Letter of Credit;

     (iii) unless such Letter of Credit has an expiration date not later than three (3)
years after its issuance;

     (iv) unless the Borrower has delivered to the Issuing Lender a completed and executed
Letter of Credit Application with respect to such Letter of Credit and a completed and
executed Letter of Credit Agreement; provided that, if the terms of any Letter of Credit
Application or the Letter of Credit Agreement conflict with the terms of this Agreement, the
terms of this Agreement shall control; and

     (v) unless such Letter of Credit is governed by the Uniform Customs and Practice for
Documentary Credits (2006 Revision), International Chamber of Commerce Publication No. 600
or any successor to such publication or the International Standby Practices 1998 published
by the Institute of International Banking Law & Practice or any successor to such
publication.

	Each Existing Letter of Credit, as of the Effective Date, shall be a Letter of Credit deemed to
have been issued pursuant to the Commitments and shall constitute a portion of the Letter of Credit
Exposure; provided that, the notional amount of the Existing Letters of Credit may not be increased
and the expiration date thereof may not be extended hereunder.

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     (b) Requesting Letters of Credit. Each Letter of Credit shall be issued pursuant to a
Letter of Credit Application given by the Borrower to the Administrative Agent for the benefit of
the Issuing Lender by telecopy or in writing not later than 2:00 p.m. (Houston, Texas, time) on the
third Business Day before the proposed date of issuance for the Letter of Credit. Each Letter of
Credit Application shall be fully completed and shall specify the information required therein.
Each Letter of Credit Application shall be irrevocable and binding on the Borrower. Subject to the
terms and conditions hereof, the Issuing Lender shall before 2:00 p.m. (Houston, Texas, time) on
the requested date of issuance of such Letter of Credit issue such Letter of Credit to the
beneficiary of such Letter of Credit as set forth in the Letter of Credit Application.

     (c) Reimbursements for Letters of Credit; Funding of Participations.

     (i) With respect to any Letter of Credit, in accordance with the related Letter of
Credit Application and the Letter of Credit Agreement, the Borrower agrees to pay on demand
to the Administrative Agent on behalf of the Issuing Lender an amount equal to any amount
paid by the Issuing Lender under such Letter of Credit. Upon the Issuing Lender’s demand
for payment under the terms of a Letter of Credit Application and the Letter of Credit
Agreement, the Borrower may request that the Borrower’s obligations to the Issuing Lender
thereunder be satisfied with the proceeds of a Revolving Advance in an amount equal to the
amount paid by the Issuing Lender under such Letter of Credit (notwithstanding any minimum
size or increment limitations on individual Revolving Advances). If the Borrower does not
make such request and does not otherwise make the payments demanded by the Issuing Lender as
required under this Agreement, the Letter of Credit Application or the Letter of Credit
Agreement, then the Borrower shall be deemed for all purposes of this Agreement to have
requested such a Revolving Advance in the same amount and the transfer of the proceeds
thereof to satisfy the Borrower’s obligations to the Issuing Lender, and the Borrower hereby
unconditionally and irrevocably authorizes, empowers, and directs the Lenders to make such a
Revolving Advance, to transfer the proceeds thereof to the Issuing Lender in satisfaction of
such obligations to the Issuing Lender, and to record and otherwise treat such payments as a
Revolving Advance to the Borrower. The Administrative Agent and each Lender may record and
otherwise treat the making of such Revolving Advance as the making of a Revolving Borrowing
to the Borrower under this Agreement as if requested by the Borrower. Nothing herein is
intended to release any of the Borrower’s obligations under any Letter of Credit Application
or the Letter of Credit Agreement, but only to provide an additional method of payment
therefor. The making of any Borrowing under this Section 2.2(c) shall not constitute a cure
or waiver of any Default, other than the payment Default which is satisfied by the
application of the amounts requested to be or deemed advanced hereunder, caused by the
Borrower’s failure to comply with the provisions of this Agreement, the Letter of Credit
Application or the Letter of Credit Agreement.

     (ii) Each Lender (including the Lender acting as Issuing Lender) shall, upon notice
from the Administrative Agent that the Borrower has requested or is deemed to have requested
a Revolving Advance pursuant to Section 2.4, which notice shall be given by the
Administrative Agent to the Lenders by 11:00 a.m. (Houston, Texas time) on the Business Day
specified in such notice by the Administrative Agent, and regardless of whether (A) the
conditions in Section 3.2 have been met, (B) such notice complies with

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Section 2.4, or (C) a Default exists, make funds available to the Administrative Agent
for the account of the Issuing Lender in an amount equal to such Lender’s Pro Rata Share of
the amount of such Revolving Advance not later than 1:00 p.m. (Houston, Texas time) on the
Business Day specified in such notice by the Administrative Agent, whereupon each Lender
that so makes funds available shall be deemed to have made a Revolving Advance to the
Borrower in such amount; provided that, if the full amount of such Revolving Advance
cannot be made because the conditions set forth in Section 3.2 cannot be satisfied or for
any other reason, such Lender’s payment to the Administrative Agent for the account of the
Issuing Bank pursuant to this Section 2.2(c)(ii) shall be deemed payment in respect of its
participation in the Letter of Credit Obligations relating to such Letter of Credit in
satisfaction of its participation obligation under Section 2.2(d). The Administrative Agent
shall remit the funds so received to the Issuing Lender.

     (iii) If any such Lender shall not have so made its Revolving Advance or percentage
participation available to the Administrative Agent pursuant to this Section 2.2,
such Lender agrees to pay interest thereon for each day from such date until the date such
amount is paid at the lesser of (A) the Federal Funds Rate for such day for the first three
days and thereafter the interest rate applicable to the Revolving Advance or percentage
participation and (B) the Maximum Rate. Whenever, at any time after the Administrative
Agent has received from any Lender such Lender’s Revolving Advance or percentage
participation, the Administrative Agent receives any payment on account thereof, the
Administrative Agent will pay to such Lender its participating interest in such amount
(appropriately adjusted, in the case of interest payments, to reflect the period of time
during which such Lender’s Revolving Advance or percentage participation was outstanding and
funded), which payment shall be subject to repayment by such Lender if such payment received
by the Administrative Agent is required to be returned. Each Lender’s obligation to make
the Revolving Advance or percentage participation pursuant to this Section 2.2 shall
be absolute and unconditional and shall not be affected by any circumstance, including (1)
any set-off, counterclaim, recoupment, defense or other right which such Lender or any other
Person may have against the Issuing Lender, the Administrative Agent or any other Person for
any reason whatsoever; (2) the occurrence or continuance of a Default or the termination of
the Commitments; (3) any breach of this Agreement by the Borrower or any other Lender; or
(4) any other circumstance, happening or event whatsoever, whether or not similar to any of
the foregoing.

     (d) Participations. Upon the date of the issuance or increase of a Letter of Credit
(including in the case of each Existing Letter of Credit, the deemed issuance with respect thereto
on the Effective Date), the Issuing Lender shall be deemed to have sold to each other Lender and
each other Lender shall have been deemed to have purchased from the Issuing Lender a participation
in the related Letter of Credit Obligations equal to such Lender’s Pro Rata Share at such date and
such sale and purchase shall otherwise be in accordance with the terms of this Agreement. The
Issuing Lender shall promptly notify each such participant Lender by telex, telephone, or telecopy
of each Letter of Credit issued or increased and the actual dollar amount of such Lender’s
participation in such Letter of Credit.

     (e) Obligations Unconditional. The obligations of the Borrower under this Agreement
in respect of each Letter of Credit shall be unconditional and irrevocable, and shall be

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paid strictly in accordance with the terms of this Agreement under all circumstances,
notwithstanding the following circumstances:

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

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

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

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

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

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

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

     (f) Liability of Issuing Bank. The Borrower assumes all risks of the acts or
omissions of any beneficiary or transferee of any Letter of Credit with respect to its use of such
Letter of Credit. Neither the Issuing Lender, the Lenders, nor any of their respective officers or
directors shall be liable or responsible for:

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

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

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

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

except that the Borrower shall have a claim against the Issuing Lender, and the Issuing Lender
shall be liable to, and shall promptly pay to, the Borrower, to the extent of any direct, as
opposed to consequential, damages suffered by the Borrower which were caused by (A) the Issuing
Lender’s willful misconduct or gross negligence in determining whether documents presented under
any Letter of Credit comply with the terms of such Letter of Credit or (B) the Issuing Lender’s
willful failure to make lawful payment under any Letter of Credit after the presentation to it of a
draft and certificate strictly complying with the terms and conditions of such Letter of Credit.
In furtherance and not in limitation of the foregoing, the Issuing Lender may accept documents that
appear on their face to be in order, without responsibility for further investigation, regardless
of any notice or information to the contrary.

     (g) Cash Collateral Account.

     (i) If the Borrower is required to deposit funds in the Cash Collateral Account
pursuant to Sections 2.2(a)(ii), 2.5(e), 7.2(b) or 7.3(b), then the Borrower and the
Administrative Agent shall establish the Cash Collateral Account and the Borrower shall
execute any documents and agreements that the Administrative Agent reasonably requests in
connection therewith to establish the Cash Collateral Account and grant the Administrative
Agent an Acceptable Security Interest in such account and the funds therein that is superior
to all other Liens (other than Excepted Liens). The Borrower hereby pledges to the
Administrative Agent and grants the Administrative Agent a security interest in the Cash
Collateral Account, whenever established, all funds held in the Cash Collateral Account from
time to time, and all proceeds thereof as security for the payment of the Obligations.

     (ii) Funds held in the Cash Collateral Account shall be held as cash collateral for the
Letter of Credit Obligations and promptly applied by the Administrative Agent at the request
of the Issuing Lender to any Letter of Credit Obligations that exist or occur. To the
extent that any surplus funds are held in the Cash Collateral Account above 103% of the
Letter of Credit Exposure during the existence of an Event of Default the Administrative
Agent may (A) hold such surplus funds in the Cash Collateral Account as cash collateral for
the Obligations or (B) apply such surplus funds to any Obligations in the manner specified
in Section 7.6. If no Default exists, the Administrative Agent shall release to the
Borrower at the Borrower’s written request any funds held in the Cash Collateral Account in
excess of the amounts required by Section 2.2(a)(ii).

     (iii) Funds held in the Cash Collateral Account shall be invested in Liquid Investments
maintained with, and under the sole dominion and control of, the Administrative Agent or in
another investment if mutually agreed upon by the Borrower and the Administrative Agent, but
the Administrative Agent shall have no other obligation to make any other investment of the
funds therein. The Administrative Agent shall exercise reasonable care in the custody and
preservation of any funds held in the Cash Collateral Account and shall be deemed to have
exercised such care if such funds

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are accorded treatment substantially equivalent to that which the Administrative Agent
accords its own property, it being understood that the Administrative Agent shall not have
any responsibility for taking any necessary steps to preserve rights against any parties
with respect to any such funds.

     Section 2.3 Swing Line Loan.

     (a) Commitment. On the terms and conditions set forth in this Agreement, and if an
AutoBorrow Agreement is in effect, subject to the terms and conditions of such AutoBorrow
Agreement, the Swing Line Lender agrees to make Swing Line Advances to the Borrower from
time-to-time on any Business Day during the period from the Effective Date until the Maturity Date,
bearing interest at the Adjusted Base Rate plus the Applicable Margin for Base Rate Advances, and
in an aggregate principal amount not to exceed the Swing Line Loan Commitment outstanding at any
time; provided that after giving effect to such Swing Line Advance, the sum of the
aggregate outstanding amount of all Revolving Advances plus the Letter of Credit Exposure
plus the aggregate outstanding amount of all Swing Line Advances shall not exceed the Total
Commitment in effect at such time; and provided further that no Swing Line Advance shall be
made by the Swing Line Lender if the conditions set forth in Section 3.2 have not been met as of
the date of such Swing Line Advance, it being agreed by the Borrower that the giving of the
applicable Notice of Borrowing, or if an AutoBorrow Agreement is in effect, the making of the
applicable Swing Line Advance pursuant to the AutoBorrow Agreement, and the acceptance by the
Borrower of the proceeds of such Swing Line Advance shall constitute a representation and warranty
by the Borrower that on the date of such Swing Line Advance such conditions have been met. In the
event of any conflict between the terms of this Agreement and an AutoBorrow Agreement, the terms of
this Agreement shall prevail.

     (b) Prepayment. Within the limits expressed in this Agreement, and if an AutoBorrow
Agreement is in effect, subject to the terms and conditions of such AutoBorrow Agreement, amounts
advanced pursuant to Section 2.3(a) may from time to time be borrowed, prepaid without penalty, and
reborrowed. If the amount of the Swing Line Loan ever exceeds the Swing Line Loan Commitment, the
Borrower shall, upon receipt of written notice of such condition from the Swing Line Lender and to
the extent of such excess, prepay to the Swing Line Lender the outstanding principal amount of the
Swing Line Loan necessary to eliminate such excess.

     (c) Reimbursements for Swing Line Loan Obligations.

     (i) With respect to the Swing Line Loan, the interest thereon and other amounts owed by
the Borrower to the Swing Line Lender in connection with the Swing Line Loan, the Borrower
agrees to pay to the Swing Line Lender such amounts when due and payable to the Swing Line
Lender under the terms of this Agreement. The Borrower may request that the Borrower’s
obligations to the Swing Line Lender be satisfied with the proceeds of a Revolving Advance
in an amount equal to the Swing Line Advance or such other amounts due in connection with
the Swing Line Loan (notwithstanding any minimum size or increment limitations on individual
Revolving Advances). The Administrative Agent shall promptly forward notice of such
Revolving Borrowing to the Borrower and the Lenders, and each Lender shall, regardless of
whether (A) the

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conditions in Section 3.2 have been met, (B) such notice complies with Section 2.4, or
(C) a Default exists, make available such Lender’s Pro Rata Share of such Revolving
Borrowing to the Administrative Agent; provided that, if the full amount of such
Revolving Borrowing cannot be made because the conditions set forth in Section 3.2 cannot be
satisfied or for any other reason, such Lender’s payment to the Administrative Agent for the
account of the Swing Line Lender pursuant to this Section 2.3(c)(i) shall be deemed payment
in respect of its participation in the Swing Lien Loan in satisfaction of its participation
obligation under Section 2.3(e). The Administrative Agent shall promptly deliver the
proceeds thereof to the Swing Line Lender for application to such amounts owed to the Swing
Line Lender.

     (ii) If at any time, the Revolving Commitments shall have expired or be terminated
while any Swing Line Loan is outstanding, each Lender, at the sole option of the Swing Line
Lender, shall either (A) notwithstanding the expiration or termination of the Revolving
Commitments, make a Revolving Advance as a Base Rate Advance, or (B) make a payment in
respect of its participation obligation under Section 2.3(e), in either case, in an amount
equal to the product of such Lender’s Pro Rata Share times the outstanding principal balance
of the Swing Line Loan. The Administrative Agent shall notify each such Lender of the
amount of such Revolving Advance or participation, and such Lender will transfer to the
Administrative Agent for the account of the Swing Line Lender on the next Business Day
following such notice, in immediately available funds, the amount of such Revolving Advance
or participation.

     (iii) If any such Lender shall not have so made its Revolving Advance or its percentage
participation available to the Administrative Agent pursuant to this Section 2.3,
such Lender agrees to pay interest thereon for each day from such date until the date such
amount is paid at the lesser of (A) the Federal Funds Rate for such day for the first three
days and thereafter the interest rate applicable to a Base Rate Advance and (B) the Maximum
Rate. Whenever, at any time after the Administrative Agent has received from any Lender
such Lender’s Revolving Advance or participating interest in a Swing Line Loan, the
Administrative Agent receives any payment on account thereof, the Administrative Agent will
pay to such Lender its participating interest in such amount (appropriately adjusted, in the
case of interest payments, to reflect the period of time during which such Lender’s
Revolving Advance or participating interest was outstanding and funded), which payment shall
be subject to repayment by such Lender if such payment received by the Administrative Agent
is required to be returned. Each Lender’s obligation to make the Revolving Advance or
purchase such participating interests pursuant to this Section 2.3 shall be absolute
and unconditional and shall not be affected by any circumstance, including (1) any set-off,
counterclaim, recoupment, defense or other right which such Lender or any other Person may
have against the Swing Line Lender, the Administrative Agent or any other Person for any
reason whatsoever; (2) the occurrence or continuance of a Default or the termination of the
Commitments; (3) any breach of this Agreement by the Borrower or any other Lender; or (4)
any other circumstance, happening or event whatsoever, whether or not similar to any of the
foregoing. Each Swing Line Loan, once so participated by any Lender, shall cease to be a
Swing Line Loan with respect to that amount for purposes of this Agreement, but shall
continue to be a Revolving Loan.

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     (d) Method of Swing Line Borrowing. If an AutoBorrow Agreement is in effect, each
Swing Line Advance and each prepayment thereof, shall be made as provided in such AutoBorrow
Agreement. In all other cases, each request for a Swing Line Advance shall be made pursuant to
telephone notice to the Swing Line Lender given no later than 2:00 p.m. (Houston, Texas time) on
the date of the proposed Swing Line Advance, promptly confirmed by a completed and executed Notice
of Borrowing specifying (i) the requested date of such Swing Line Advance and (ii) the aggregate
amount of such Swing Line Advance, telecopied or facsimiled to the Administrative Agent and the
Swing Line Lender. The Swing Line Lender will promptly make the Swing Line Advance available to
the Borrower at the Borrower’s account with the Administrative Agent or by wire transfer to an
account in the name of the Borrower specified by the Borrower in the applicable Notice of
Borrowing, as the Borrower may request.

     (e) Participations. Upon the date of the making of any Swing Line Borrowing, the
Swing Line Lender shall be deemed to have sold to each other Lender and each other Lender shall
have been deemed to have purchased from the Swing Line Lender a participation in such Swing Line
Loan in an amount equal to the product of such Lender’s Pro Rata Share times the outstanding
principal balance of the Swing Line Loan at such date and such sale and purchase shall otherwise be
in accordance with the terms of this Agreement.

     Section 2.4 Revolving Advances.

     (a) Notice. Each Revolving Borrowing shall be made pursuant to a Notice of Borrowing
given not later than (i) 2:00 p.m. (Houston, Texas time) on the third Business Day before the date
of the proposed Revolving Borrowing, in the case of a Eurodollar Advance or (ii) 2:00 p.m.
(Houston, Texas time) on the Business Day before the date of the proposed Revolving Borrowing, in
the case of a Base Rate Advance, by the Borrower to the Administrative Agent, which shall give to
each Lender prompt notice of such proposed Revolving Borrowing by telecopier or telex. Each Notice
of Borrowing shall be by facsimile or telex, confirmed immediately by the Borrower with a hard copy
(other than with respect to notice sent by facsimile), specifying (i) the requested date of such
Revolving Borrowing, (ii) the Type and Class of Advances comprising such Revolving Borrowing, (iii)
the aggregate amount of such Revolving Borrowing, and (iv) if such Revolving Borrowing is to be
comprised of Eurodollar Advances, Interest Period for each such Advance. In the case of a proposed
Revolving Borrowing comprised of Eurodollar Advances, the Administrative Agent shall promptly
notify each Lender of the applicable interest rate under Section 2.8(b). Each Lender shall, before
12:00 noon (Houston, Texas time) on the date of such Revolving Borrowing, make available for the
account of its Applicable Lending Office to the Administrative Agent at its address referred to in
Schedule 9.8, or such other location as the Administrative Agent may specify by notice to the
Lenders, in same day funds, such Lender’s Pro Rata Share of such Revolving Borrowing. After the
Administrative Agent’s receipt of such funds and upon fulfillment of the applicable conditions set
forth in Article 3, the Administrative Agent will make such funds available to the Borrower at its
account with the Administrative Agent or by wire transfer to an account in the name of the Borrower
specified by the Borrower in the applicable Notice of Borrowing, as the Borrower may request;
provided that, the initial Revolving Borrowing on the Effective Date may be made by wire
transfer to accounts in the name of third parties specified by the Borrower to the Administrative
Agent, to the extent required in connection with the consummation of the transactions contemplated
hereby and the Wedge Acquisition and the Competition Acquisition.

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     (b) Conversions and Continuations. In order to elect to Convert or continue a
Revolving Advance under this paragraph, the Borrower shall deliver an irrevocable Notice of
Conversion or Continuation to the Administrative Agent at the Administrative Agent’s office no
later than 2:00 p.m. (Houston, Texas time) (i) one (1) Business Day before the date of the proposed
conversion date in the case of a Conversion to a Base Rate Advance and (ii) at least three (3)
Business Days in advance of the proposed Conversion or continuation date in the case of a
Conversion to, or a continuation of, a Eurodollar Advance. Each such Notice of Conversion or
Continuation shall be by telex or facsimile confirmed immediately by the Borrower with a hard copy
(other than with respect to notice sent by facsimile), specifying (i) the requested Conversion or
continuation date (which shall be a Business Day), (ii) the amount, Type, and Class of the Advance
to be Converted or continued, (iii) whether a Conversion or continuation is requested and, if a
Conversion, into what Type of Advance, and (iv) in the case of a Conversion to, or a continuation
of, a Eurodollar Advance, the requested Interest Period. Promptly after receipt of a Notice of
Conversion or Continuation under this paragraph, the Administrative Agent shall provide each Lender
with a copy thereof and, in the case of a Conversion to or a Continuation of a Eurodollar Advance,
notify each Lender of the applicable interest rate under Section 2.8(b). The portion of Advances
comprising part of the same Borrowing that are converted to Advances of another Type shall
constitute a new Borrowing.

     (c) Certain Limitations. Notwithstanding anything in paragraphs (a) and (b) above:

     (i) at no time shall there be more than nine (9) Interest Periods applicable to
outstanding Eurodollar Advances, and the minimum aggregate amount of Eurodollar Advances
with the same Interest Period shall be $1,000,000.00 and a multiple of $500,000.00 in excess
thereof;

     (ii) the Borrower may not select Eurodollar Advances for any Borrowing at any time when
an Event of Default has occurred and is continuing;

     (iii) if any Lender shall, at least one (1) Business Day before the date of any
requested Revolving Borrowing, notify the Administrative Agent that the introduction of or
any change in or in the interpretation of any law or regulation makes it unlawful, or that
any central bank or other governmental authority asserts that it is unlawful, for such
Lender or its Eurodollar Lending Office to perform its obligations under this Agreement to
make, fund or maintain Eurodollar Advances,  (A) the obligation of such Lender to make such
Eurodollar Advance as part of the requested Borrowing or for any subsequent Borrowing shall
be suspended until such Lender shall notify the Borrower that the circumstances causing such
suspension no longer exist and such Lender’s portion of such requested Borrowing or any
subsequent Borrowing of Eurodollar Advances shall be made in the form of a Base Rate
Advance, and (B) such Lender agrees to use commercially reasonable efforts (consistent with
its internal policies and legal and regulatory restrictions) to designate a different
Eurodollar Lending Office if the making of such designation would avoid the effect of this
paragraph and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender;

     (iv) if the Administrative Agent is unable to determine the Eurodollar Rate for
Eurodollar Advances comprising any requested Revolving Borrowing, the right of the

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Borrower to select Eurodollar Advances for such Borrowing or for any subsequent
Borrowing shall be suspended until the Administrative Agent shall notify the Borrower and
the Lenders that the circumstances causing such suspension no longer exist, and each Advance
comprising such Borrowing shall be a Base Rate Advance;

     (v) if the Majority Lenders shall, at least one (1) Business Day before the date of any
requested Revolving Borrowing, notify the Administrative Agent that the Eurodollar Rate for
Eurodollar Advances comprising such Borrowing will not adequately reflect the cost to such
Lenders of making or funding their respective Eurodollar Advances, as the case may be, for
such Borrowing, the right of the Borrower to select Eurodollar Advances for such Borrowing
or for any subsequent Borrowing shall be suspended until the Administrative Agent shall
notify the Borrower and the Lenders that the circumstances causing such suspension no longer
exist, and each Advance comprising such Borrowing shall be a Base Rate Advance; and

     (vi) if the Borrower shall fail to select the duration or continuation of any Interest
Period for any Eurodollar Advances in accordance with the provisions contained in the
definition of Interest Period in Section 1.1 and paragraph (b) above, the Administrative
Agent will forthwith so notify the Borrower and the Lenders and such Advances will be made
available to the Borrower on the date of such Borrowing as Eurodollar Advances with an
Interest Period duration of one month or, in the case of a continuation of existing
Eurodollar Advances, Convert into Base Rate Advances.

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

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

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     Section 2.5 Prepayments.

     (a) Right to Prepay. The Borrower shall have no right to prepay any principal amount
of any Advance except as provided in this Section 2.5.

     (b) Optional. The Borrower may elect at any time or from time to time to prepay any
of the Advances without penalty or premium except as set forth in Section 2.10 by delivering a
Notice of Payment to the Administrative Agent by 11:00 a.m. (Houston, Texas time) (i) in the case
of Eurodollar Advances, at least three (3) Business Days prior to the date of the proposed
prepayment or (ii) in case of Base Rate Advances, on the Business Day of the proposed prepayment.
If any such Notice of Payment is given, the Borrower shall prepay Advances comprising part of the
same Borrowing in whole or ratably in part in an aggregate principal amount equal to the amount
specified in such Notice of Payment, together with accrued interest to the date of such prepayment
on the principal amount prepaid and amounts, if any, required to be paid pursuant to Section 2.10
as a result of such prepayment being made on such date; provided that (i) each optional
partial prepayment of a Borrowing comprised of Eurodollar Advances shall be in a minimum amount not
less than $1,000,000.00 and in multiple integrals of $500,000.00 in excess thereof, and (ii) each
optional partial prepayment of a Borrowing comprised of Base Rate Advances shall be in a minimum
amount not less than $500,000.00 and in multiple integrals of $100,000.00 in excess thereof.
Notwithstanding anything to the contrary contained herein, Borrower may (subject to payment to the
Lenders of any applicable amounts under Section 2.10 hereof) rescind any Notice of Payment under
this Section 2.5(b) if such prepayment would have resulted from a refinancing of this Agreement,
which refinancing shall not be consummated or shall otherwise be delayed.

     (c) Mandatory.

     (i) On any date that the sum of the Revolving Loan plus the Letter of Credit
Exposure plus the Swing Line Loan exceeds the Total Commitment then in effect, the
Borrower shall, within one (1) Business Day, to the extent of such excess, first prepay to
the Administrative Agent for the benefit of the Swing Line Lender (and the other Lenders, as
applicable) the outstanding principal amount of the Swing Line Advances, second prepay to
the Administrative Agent for the benefit of the Lenders on a pro rata basis the outstanding
principal amount of the Revolving Advances and any unpaid amounts of the Letter of Credit
Obligations owed to the Lenders; and third make deposits into the Cash Collateral Account to
provide cash collateral in the amount of such excess for the remaining Letter of Credit
Exposure.

     (ii) Upon the occurrence of any Disposition or any Recovery Event in excess of
$10,000,000.00 (except (i) to the extent that a Reinvestment Notice shall be delivered in
respect of such Disposition or Recovery Event, (ii) Dispositions described in clauses (a)
through (h) and (j) and (k) of Section 6.8 or (iii) with respect to cash receipts in the
ordinary course of business of the applicable recipient), then on the date of receipt by the
Borrower or the applicable Restricted Subsidiary of the Net Cash Proceeds related thereto,
the Advances shall immediately be prepaid by an amount equal to the amount of such Net Cash
Proceeds; provided that, notwithstanding the foregoing, on each Reinvestment
Prepayment Date the Advances shall be prepaid by an amount equal to the

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Reinvestment Prepayment Amount with respect to the relevant Reinvestment Event. For
purposes of calculating the Net Cash Proceeds received from a Disposition or from a Recovery
Event, such proceeds shall be determined as of the date of the applicable Disposition or
Recovery Event, whether or not received on such date, but no such amount shall be required
to be applied to prepayment of the Advances pursuant to this Section until received by the
applicable Person. The provisions of this Section do not constitute a consent to the
consummation of any Disposition not permitted by Section 6.8.

     (iii) The Borrower agrees to make a mandatory prepayment of the Advances by an amount
equal to 75% of the Debt Incurrence Proceeds that the Borrower or any of its Restricted
Subsidiaries receives from each Debt Incurrence after the Effective Date within thirty (30)
days after the date of each such Debt Incurrence.

     (iv) The Borrower agrees to make a mandatory prepayment of the Advances by an amount
equal to 75% (or, so long as the Leverage Ratio is less than 1.75 to 1.00, 0%) of the Equity
Issuance Proceeds that the Borrower or any of its Restricted Subsidiaries receives from each
Equity Issuance after the Effective Date within thirty (30) days after the date of each such
Equity Issuance.

     (d) Interest; Costs. Each prepayment pursuant to this Section 2.5 shall be
accompanied by accrued interest on the amount prepaid to the date of such prepayment and amounts,
if any, required to be paid pursuant to Section 2.10 as a result of such prepayment being made on
such date.

     (e) Application of Prepayments. Each mandatory prepayment of an Advance required by
Section 2.5(c) shall be applied first to repay the Swing Line Advances until such time as
the Swing Line Loan is repaid in full, second to repay the Revolving Advances until the
Revolving Loan is repaid in full, and third to make deposits into the Cash Collateral
Account to provide cash collateral in the amount of such excess for the Letter of Credit Exposure.

     Section 2.6 Repayment.

     (a) Revolving Advances. The Borrower shall pay to the Administrative Agent for the
ratable benefit of each Lender the aggregate outstanding principal amount of the Revolving Advances
on the Maturity Date.

     (b) Swing Line Advances. Each outstanding Swing Line Advance made by the Swing Line
Lender shall be paid in full on the Maturity Date.

     Section 2.7 Fees.

     (a) Commitment Fees. The Borrower agrees to pay from the date of this Agreement until
the Maturity Date to the Administrative Agent for the account of each Lender a Commitment Fee
calculated by the Administrative Agent on the average daily amount by which (i) such Lender’s
Revolving Commitment exceeds (ii) the sum of such Lender’s outstanding Revolving Advances plus such
Lender’s Pro Rata Share of the Letter of Credit Exposure at a rate per annum equal to the
Applicable Margin for Commitment Fees for such period. The Commitment Fee is due quarterly in
arrears on March 31, June 30, September 30, and December

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31 of each year commencing on June 30, 2008, and on the Maturity Date. For purposes of this
Section 2.7(a) only, amounts advanced under the Swing Line Note shall not in any way reduce the
amount of the unused Total Commitment.

     (b) Fees for Letters of Credit. The Borrower agrees to pay the following:

     (i) To the Administrative Agent for the pro rata benefit of the Lenders a per annum
letter of credit fee for Letters of Credit issued hereunder in an amount equal to the
greater of (A) the Applicable Margin for Eurodollar Advances for such period multiplied by
the average daily undrawn amount of all Letters of Credit outstanding during such period or
(B) $600.00. Such fees shall be due and payable quarterly in arrears on March 31, June 30,
September 30, and December 31 of each year, and on the Maturity Date.

     (ii) To the Issuing Lender, a fronting fee for each Letter of Credit (other than the
Existing Letters of Credit) equal to the greater of (A) .125% per annum on the face amount
of such Letter of Credit and (B) $600.00. Such fee shall be due and payable in advance on
the date of the issuance of the Letter of Credit, and, in the case of an increase or
extension only, on the date of such increase or such extension.

(iii) To the Issuing Lender such other usual and customary fees associated with any
transfers, amendments, drawings, negotiations or reissuances of any Letters of Credit. Such
fees shall be due and payable as requested by the Issuing Lender in accordance with the
Issuing Lender’s then current fee policy.

The Borrower shall have no right to any refund of letter of credit fees previously paid by the
Borrower, including any refund claimed because the Borrower cancels any Letter of Credit prior to
its expiration date.

     (c) Fee Letter. The Borrower agrees to pay the fees as set forth in the Fee Letter.

     Section 2.8 Interest.

     (a) Base Rate Advances. Each Base Rate Advance shall bear interest at the Adjusted
Base Rate in effect from time to time plus the Applicable Margin for Base Rate Advances for
such period. The Borrower shall pay to Administrative Agent for the ratable benefit of each Lender
all accrued but unpaid interest on such Lender’s Base Rate Advances on each March 31, June 30,
September 30, and December 31 commencing on March 31, 2008, and on the Maturity Date. Each Swing
Line Advance shall bear interest at the Adjusted Base Rate in effect from time to time plus
the Applicable Margin for Base Rate Advances for such period.

     (b) Eurodollar Advances. Each Eurodollar Advance shall bear interest during its
Interest Period equal to at all times the Eurodollar Rate for such Interest Period plus the
Applicable Margin for Eurodollar Advances for such period. The Borrower shall pay to the
Administrative Agent, for the ratable account of each Lender all accrued but unpaid interest on
outstanding Eurodollar Advances on the last day of the Interest Period therefor (provided that for
Eurodollar Advances with Interest Periods longer than three months, accrued but unpaid interest
shall also be due on each three month anniversary of the first day of such Interest Period), on the
date any Eurodollar Advance is repaid in full, and on the Maturity Date.

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     (c) Additional Interest on Eurodollar Advances. The Borrower shall pay to the
Administrative Agent for the account of any applicable Lender, so long as such Lender shall be
required under regulations of the Federal Reserve Board applicable to all Lenders regulated by the
Federal Reserve Board to maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency Liabilities, additional interest on the unpaid principal amount of each
Eurodollar Advance of such Lender, from the date such requirement is imposed until the earlier of
(i) the date such requirement is no longer imposed and (ii) the date on which such principal amount
is paid in full, at an interest rate per annum equal at all times to the remainder obtained by
subtracting (A) the Eurodollar Rate for the Interest Period for such Eurodollar Advance from
(B) the rate obtained by dividing such Eurodollar Rate by a percentage equal to 100% minus
the Eurodollar Rate Reserve Percentage of such Lender for such Interest Period, payable on each
date on which interest is payable on such Advance. Such additional interest payable hereunder to
the Administrative Agent for the account of any applicable Lender shall be determined in good faith
by such Lender and notified to the Administrative Agent and the Borrower at least three (3)
Business Days before each date on which such interest is payable (such notice to include, in
reasonable detail, the calculation of such additional interest, which calculation shall be
conclusive in the absence of manifest error).

     (d) Default Rate. Notwithstanding the foregoing, at the Administrative Agent’s or the
Majority Lenders’ option with respect to Revolving Advances and at the Swing Line Lender’s option
with respect to Swing Line Advances, (i) if any principal of or interest on any Advance or any fee
or other amount payable by any Credit Party hereunder is not paid when due, whether at stated
maturity, upon acceleration or otherwise (after giving effect to the grace period set forth in
Section 7.1(a)), such overdue amount shall bear interest, after as well as before judgment, at a
rate per annum equal to (A) in the case of overdue principal of any Advance, 2% plus the rate
otherwise applicable to such Advance as provided in the preceding paragraphs of this Section 2.8 or
(B) in the case of any other amount, 2% plus the rate applicable to Base Rate Advances as provided
in paragraph (a) of this Section 2.8 and (ii) without duplication, if an Event of Default under
Section 7.1(g) has occurred and is continuing, each Advance shall bear interest, after as well as
before judgment, at a rate per annum equal to 2% plus the rate otherwise applicable to such Advance
as provided in the preceding paragraphs of this Section 2.8.

     Section 2.9 Illegality. If any Lender shall notify the Borrower that the introduction
of or any change in or in the interpretation of any law or regulation makes it unlawful, or that
any central bank or other governmental authority asserts that it is unlawful, for such Lender or
its Applicable Lending Office to perform its obligations under this Agreement or to make, maintain,
or fund any Eurodollar Advances of such Lender then outstanding hereunder, (a) the Borrower shall,
no later than 11:00 a.m. (Houston, Texas, time) (i) if not prohibited by law, on the last day of
the Interest Period for each outstanding Eurodollar Advance or (ii) if required by such notice, on
the second Business Day following its receipt of such notice, prepay all of the Eurodollar Advances
of such Lender then outstanding, together with accrued interest on the principal amount prepaid to
the date of such prepayment and amounts, if any, required to be paid pursuant to Section 2.10 as a
result of such prepayment being made on such date, (b) such Lender shall simultaneously make a Base
Rate Advance to the Borrower on such date in an amount equal to the aggregate principal amount of
the Eurodollar Advances prepaid to such Lender, and (c) the right of the Borrower to select
Eurodollar Advances from such Lender for any subsequent Borrowing shall be suspended until such
Lender shall notify the Borrower that the circumstances

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causing such suspension no longer exist. Each Lender agrees to use commercially reasonable
efforts (consistent with its internal policies and legal and regulatory restrictions) to designate
a different Applicable Lending Office if the making of such designation would avoid the effect of
this paragraph and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender.

     Section 2.10 Breakage Costs.

     (a) Funding Losses. In the case of any Revolving Borrowing which the related Notice
of Borrowing specifies is to be comprised of Eurodollar Advances, the Borrower shall indemnify each
Lender against any loss, out-of-pocket cost, or expense incurred by such Lender as a result of any
failure to fulfill on or before the date specified in such Notice of Borrowing for such Borrowing
the applicable conditions set forth in Article 3, including, without limitation, any loss
(excluding any loss of anticipated profits), cost, or expense incurred by reason of the liquidation
or redeployment of deposits or other funds acquired by such Lender to fund the Eurodollar Advance
to be made by such Lender as part of such Borrowing when such Eurodollar Advance, as a result of
such failure, is not made on such date.

     (b) Prepayment Losses. If (i) any payment of principal of any Eurodollar Advance is
made other than on the last day of the Interest Period for such Advance as a result of any
prepayment, payment pursuant to Section 2.9, the acceleration of the maturity of the Notes, or for
any other reason or (ii) the Borrower fails to make a principal or interest payment with respect to
any Eurodollar Advance on the date such payment is due and payable, the Borrower shall, within ten
(10) days of any written demand sent by the Administrative Agent on behalf of a Lender to the
Borrower, pay to the Administrative Agent for the benefit of such Lender any amounts determined in
good faith by such Lender to be required to compensate such Lender for any additional losses,
out-of-pocket costs, or expenses which it may reasonably incur as a result of such payment or
nonpayment, including, without limitation, any loss (excluding loss of anticipated profits), cost,
or expense incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by any Lender to fund or maintain such Advance.

     Section 2.11 Increased Costs.

     (a) Eurodollar Advances. If, after the Effective Date, the adoption of any applicable
law, rule, or regulation, 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
financial institutions generally, including a Lender (or its Applicable Lending Office) with any
request or directive (whether or not having the force of law) of any such governmental authority,
central bank, or comparable agency:

     (i) shall impose, modify, or deem applicable any reserve, special deposit, assessment,
or similar requirement (other than by way of imposition or increase of reserve requirements
included in the Eurodollar Rate Reserve Percentage) relating to any extensions of credit or
other assets of, or any deposits with or other liabilities or commitments of, financial
institutions generally, including such Lender (or its Applicable Lending Office), including
the Commitment of such Lender hereunder; or

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     (ii) shall impose on financial institutions generally, including such Lender (or its
Applicable Lending Office), or on the London interbank market any other condition affecting
this Agreement or its Notes or any of such extensions of credit or liabilities or
commitments;

and the result of any of the foregoing is to increase the cost to such Lender (or its Applicable
Lending Office) of making, Converting into, continuing, or maintaining any Eurodollar Advances or
to reduce any sum received or receivable by such Lender (or its Applicable Lending Office) under
this Agreement or its Notes with respect to any Eurodollar Advances, then the Borrower shall pay to
such Lender within three (3) Business Days after written demand made by such Lender such amount or
amounts as such Lender determines in good faith to be necessary to compensate such Lender for such
increased cost or reduction.

     (b) Capital Adequacy. If, after the Effective Date, any Lender shall have determined
that the adoption of any applicable law, rule, or regulation regarding capital adequacy or any
change therein or in the interpretation or administration thereof by any governmental authority,
central bank, or comparable agency charged with the interpretation or administration thereof, or
any request or directive regarding capital adequacy (whether or not having the force of law) of any
such governmental authority, central bank, or comparable agency, has or would have the effect of
reducing the rate of return on the capital of financial institutions generally, including such
Lender or any corporation controlling such Lender, as a consequence of such Lender’s obligations
hereunder to a level below that which such Lender or such corporation could have achieved but for
such adoption, change, request, or directive (taking into consideration its policies with respect
to capital adequacy), then from time to time within three (3) Business Days after written demand by
such Lender the Borrower shall pay to such Lender such additional amount or amounts as such Lender
determines in good faith to be necessary to compensate such Lender for such reduction.

     (c) Mitigation. Each Lender shall promptly notify the Borrower and the Administrative
Agent of any event of which it has knowledge, occurring after the Effective Date, which will
entitle such Lender to compensation pursuant to Section 2.8(c) or this Section 2.11 and will
designate a different Applicable Lending Office if such designation will avoid the need for, or
reduce the amount of, such compensation and will not, in the reasonable judgment of such Lender, be
otherwise disadvantageous to it. Any Lender claiming compensation under Section 2.8(c) or this
Section 2.11 shall furnish to the Borrower and the Administrative Agent a statement setting forth,
in reasonable detail, the additional amount or amounts to be paid to it hereunder which shall be
determined by such Lender in good faith and which shall be conclusive in the absence of manifest
error. In determining such amount, such Lender may use any reasonable averaging and attribution
methods.

     (d) Borrower shall not be required to compensate any Lender pursuant to Section 2.8(c) or this
Section 2.11 for any increased costs or reductions incurred more than 180 days prior to the date
that such Lender, as the case may be, notified Borrower of such law, rule, change of law,
interpretation or regulation giving rise to such increased costs or reductions and of such Lender’s
intention to claim compensation therefor; provided that, if such law, rule, change of law,
interpretation or regulation giving rise to such increased costs or reductions is

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retroactive, then the 180-day period referred to above shall be extended to include the period
of retroactive effect thereof.

     Section 2.12 Payments and Computations.

     (a) Payments. All payments of principal, interest, and other amounts to be made by
the Borrower under this Agreement and the other Credit Documents shall be made to the
Administrative Agent in Dollars and in immediately available funds, without setoff, deduction, or
counterclaim.

     (b) Payment Procedures. The Borrower shall make each payment under this Agreement and
under the Notes not later than 11:00 a.m. (Houston, Texas time) on the day when due in Dollars to
the Administrative Agent at the location referred to on Schedule 9.8 (or such other location as the
Administrative Agent shall designate in writing to the Borrower) in same day funds. The
Administrative Agent will promptly thereafter, and in any event prior to the close of business on
the day any timely payment is made, cause to be distributed like funds relating to the payment of
principal, interest or fees ratably (other than amounts payable solely to the Administrative Agent
or a specific Lender pursuant to Sections 2.8(c), 2.9, 2.10, 2.11, 2.13, and 9.2 but after taking
into account payments effected pursuant to Section 9.1) in accordance with each Lender’s Pro Rata
Share to the Lenders for the account of their respective Applicable Lending Offices, and like funds
relating to the payment of any other amount payable to any Lender to such Lender for the account of
its Applicable Lending Office, in each case to be applied in accordance with the terms of this
Agreement. Upon receipt of other amounts due solely to the Administrative Agent, the Issuing
Lender, the Swing Line Lender, or a specific Lender, the Administrative Agent shall distribute such
amounts to the appropriate party to be applied in accordance with the terms of this Agreement.

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

     (d) Computations. All computations of interest and fees shall be made by the
Administrative Agent on the basis of a year of 365/366 days for Base Rate Advances and a year of
360 days for all other interest and fees, in each case for the actual number of days (including the
first day, but excluding the last day) occurring in the period for which such interest or fees are
payable. Each determination by the Administrative Agent of an amount of interest or fees shall be
conclusive and binding for all purposes, absent manifest error.

     (e) Sharing of Payments, Etc. If any Lender shall obtain any payment (whether
voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of
the Advances made by it in excess of its ratable share of payments on account of the Advances or
Letter of Credit Obligations obtained by the Lenders, such Lender shall notify the other Lenders
and forthwith purchase from the other Lenders such participations in the Advances made by it or the
Letter of Credit Obligations held by it as shall be necessary to cause such purchasing Lender

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to share the excess payment ratably with the other Lenders; provided that if all or
any portion of such excess payment is thereafter recovered from such purchasing Lender, such
purchase from the other Lenders shall be rescinded and each such Lender shall repay to the
purchasing Lender the purchase price to the extent of such Lender’s ratable share, but without
interest. The Borrower agrees that any Lender so purchasing a participation from another Lender
pursuant to this Section 2.12(e) may, to the fullest extent permitted by law, exercise all its
rights of payment (including the right of set-off) with respect to such participation as fully as
if such Lender were the direct creditor of the Borrower in the amount of such participation.

     Section 2.13 Taxes.

     (a) No Deduction for Certain Taxes. Any and all payments by the Borrower under any of
the Credit Documents to the Administrative Agent, the Issuing Lender, the Swing Line Lender or a
Lender shall be made, in accordance with Section 2.12, free and clear of and without deduction for
any and all present or future taxes, levies, imposts, deductions, charges, or withholdings, and all
liabilities with respect thereto, excluding, in the case of the Administrative Agent, the Issuing
Lender, the Swing Line Lender or a Lender, Taxes; provided that, with respect to an additional
interest in Advances acquired by a Lender as an assignee, such Lender shall be entitled to receive
additional amounts from the Borrower pursuant to this Section 2.13 with respect to such additional
interest only to the extent that the assignor was entitled, at the time of such assignment, to
receive additional amounts from the Borrower pursuant to this Section 2.13. Except as provided in
Section 2.13(f), if the Borrower shall be required by law to deduct any Taxes from or in respect of
any sum payable to the Administrative Agent, the Issuing Lender, the Swing Line Lender or any
Lender, (i) the sum payable shall be increased as may be necessary so that, after making all
required deductions (including deductions applicable to additional sums payable under this Section
2.13), such Lender receives an amount equal to the sum it would have received had no such
deductions been made; (ii) the Borrower shall make such deductions; and (iii) the Borrower shall
pay the full amount deducted to the relevant Governmental Authority or other authority in
accordance with applicable law.

     (b) Other Taxes. In addition, except as provided in Section 2.13(f), the Borrower
agrees to pay any present or future stamp or documentary taxes or any other excise or property
taxes, charges, or similar levies which arise from any payment made under any Credit Document or
from the execution, delivery, or registration of, or otherwise with respect to, this Agreement, the
Notes, or the other Credit Documents (hereinafter referred to as “Other Taxes”).

     (c) Indemnification. EXCEPT AS PROVIDED IN SECTION 2.13(F), THE BORROWER SHALL
INDEMNIFY EACH LENDER, THE ISSUING LENDER, THE SWING LINE LENDER AND THE ADMINISTRATIVE AGENT,
WITHIN TEN (10) DAYS AFTER WRITTEN DEMAND THEREFOR, FOR THE FULL AMOUNT OF TAXES OR OTHER TAXES
(INCLUDING, WITHOUT LIMITATION, ANY TAXES OR OTHER TAXES IMPOSED ON AMOUNTS PAYABLE UNDER THIS
SECTION 2.13) PAID BY SUCH LENDER, THE ISSUING LENDER, THE SWING LINE LENDER OR THE ADMINISTRATIVE
AGENT (AS THE CASE MAY BE) AND ANY LIABILITY (INCLUDING INTEREST AND EXPENSES) ARISING THEREFROM OR
WITH RESPECT THERETO, WHETHER OR NOT SUCH TAXES OR OTHER TAXES WERE CORRECTLY OR LEGALLY ASSERTED.

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     (d) Evidence of Tax Payments. As soon as practicable after any payment of Taxes or
Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent a copy of any receipt issued by such Governmental Authority evidencing such
payment.

     (e) Foreign Lender Withholding Exemption. Each Lender that is not incorporated under
the laws of the United States of America or a state thereof and that is entitled to an exemption
from United States withholding tax with respect to payments under this Agreement under applicable
law or any treaty to which the United States is a party shall deliver to the Borrower (with a copy
to the Administrative Agent), at the time or times prescribed by applicable law, such properly
completed and executed documentation (including Internal Revenue Service Forms W-8BEN or W-8ECI)
prescribed by applicable law or reasonably requested by the Borrower as will permit such payments
to be made without withholding. In addition, any Lender, if requested by the Borrower or the
Administrative Agent, shall deliver such properly completed and executed documentation prescribed
by applicable law or reasonably requested by the Borrower or the Administrative Agent as will
enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject
to backup withholding or information reporting requirements. Each Lender shall promptly notify the
Borrower and the Administrative Agent of any change in circumstances which would modify or render
invalid any such claimed exemption or reduction.

Without limiting the generality of the foregoing, any Lender that is not incorporated under the
laws of the United States of America or a state thereof shall deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior
to the date on which such Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the request of the Borrower or the Administrative Agent, but only if such Foreign
Lender is legally entitled to do so), whichever of the following is applicable:

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

     (ii) duly completed copies of Internal Revenue Service Form W-8ECI;

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

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

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     (f) Failure to Provide Forms. For any period with respect to which a Lender has
failed to provide the Borrower or the Administrative Agent with the appropriate forms referred to
in this Section 2.13 (unless such failure is due to a change in treaty, law or regulation occurring
after the date on which such Lender becomes a Lender hereunder), such Lender shall not be entitled
to indemnification or payment under Section 2.13(a), (b), or (c) with respect to Taxes imposed by
the United States; provided that if a Lender, that is otherwise exempt from or subject to a
reduced rate of withholding tax, becomes subject to Taxes because of its failure to deliver a form
required hereunder, the Borrower shall take such steps as such Lender shall reasonably request, and
at the expenses of such Lender, to assist such Lender to recover such Taxes.

     (g) Mitigation. Each Lender shall use reasonable efforts (consistent with its
internal policies and legal and regulatory restrictions) to select a jurisdiction for its
Applicable Lending Office or change the jurisdiction of its Applicable Lending Office, as the case
may be, so as to avoid the imposition of any Taxes or Other Taxes or to eliminate or reduce the
payment of any additional sums under this Section 2.13; provided, that no such selection or change
of jurisdiction for its Applicable Lending Office shall be made if, in the reasonable judgment of
such Lender, such selection or change would be disadvantageous to such Lender.

     (h) Tax Credits and Refunds. If the Administrative Agent, the Issuing Lender, the
Swing Line Lender or a Lender has determined that it has received a refund of any Taxes or Other
Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has
paid additional sums pursuant to this Section 2.13, or if the Administrative Agent, the Issuing
Lender, the Swing Line Lender or a Lender has determined that it has received a credit from any
Governmental Authority to which the Administrative Agent, the Issuing Lender, the Swing Line Lender
or such Lender would not be entitled but for the payment by the Borrower of Taxes, Other Taxes or
additional sums pursuant to this Section 2.13, it shall promptly pay over the amount of such refund
or credit to the Borrower (but only to the extent of indemnity payments made, or additional sums
paid, by the Borrower under this Section 2.13 with respect to the Taxes or Other Taxes giving rise
to such refund or credit), net of all out-of-pocket expenses of the Administrative Agent, the
Issuing Lender, the Swing Line Lender or such Lender and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund or credit); provided, that
the Borrower, upon the request of the Administrative Agent, the Issuing Lender, the Swing Line
Lender or such Lender, agrees to repay the amount paid over to the Borrower (plus any penalties,
interest or other charges imposed by the relevant Governmental Authority) to the Administrative
Agent, the Issuing Lender, the Swing Line Lender or such Lender in the event and to the extent that
the Administrative Agent, the Issuing Lender, the Swing Line Lender or such Lender is required to
repay such refund or credit to such Governmental Authority.

     (i) Payment. If the Administrative Agent, the Issuing Lender, the Swing Line Lender
or any Lender becomes entitled to receive payment of Taxes, Other Taxes or additional sums pursuant
to this Section 2.13, it shall give notice and demand thereof to the Borrower, and the Borrower
(unless the Administrative Agent, the Issuing Lender, the Swing Line Lender or Lender shall
withdraw such notice and demand or the Borrower is not obligated to pay such amounts) shall pay
such Taxes, Other Taxes or additional sums within thirty (30) days after the Borrower’s receipt of
such notice and demand; provided that the Borrower shall not be required to indemnify or reimburse
the Administrative Agent, the Issuing Lender, the Swing Line Lender

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or a Lender pursuant to this Section 2.13 for any Taxes, Other Taxes or additional sums
imposed or asserted more than 180 days prior to the date that such party notifies the Borrower of
the Taxes, Other Taxes or additional sums imposed or asserted and of such party’s intention to
claim compensation therefor; provided further that, if the Taxes, Other Taxes or additional sums
imposed or asserted giving rise to such claims are retroactive, then the 180-day period referred to
above shall be extended to include the period of retroactive effect thereof (to the extent that
such period of retroactive effect is not already included in such 180-day period).

     Section 2.14 Replacement of Lenders. If the Borrower is required pursuant to Section
2.8(c), 2.11 or 2.13 to make any additional payment to any Lender or if any Lender’s obligation to
make or continue, or to convert Base Rate Advances into, Eurodollar Advances shall be suspended
pursuant to 2.4(c)(iii) or 2.9 (any Lender so affected, an “Affected Lender”), or if in
connection with any proposed amendment, modification, termination, waiver or consent with respect
to any of the provisions of this Agreement or any other Credit Document as contemplated by Section
9.3, the consent of Majority Lenders shall have been obtained but the consent of each Lender, or
each Lender affected thereby, is required with respect thereto but has not been obtained (each a
“Non-Consenting Lender”) or if any Lender is a Defaulting Lender hereunder, the Borrower
may elect to replace any such Affected Lender, Non-Consenting Lender or Defaulting Lender as a
Lender party to this Agreement, provided that (a) such replacement shall be at the
Borrower’s sole expense and effort, including the payment of the processing fee referenced in
Section 9.7(a); (b) concurrently with such replacement, another bank or other entity (which entity
shall be an Eligible Assignee), as of such date, shall agree to purchase for cash the Advances and
other Obligations due to such Lender pursuant to an Assignment and Acceptance and to become a
Lender for all purposes under this Agreement and to assume all obligations of such Lender (which as
to the assigning Lender shall be terminated as of such date) and to comply with the requirements of
Section 9.7 applicable to assignments; and (c) concurrently with such replacement, the Borrower
shall pay to such Lender in same day funds on the day of such replacement all interest, fees and
other amounts then accrued but unpaid to such Lender by the Borrower hereunder to and including the
date of termination, including without limitation payments due to such Lender under Sections
2.8(c), 2.11 and 2.13. A Lender shall not be required to make any such assignment and delegation
if, prior thereto, as a result of a waiver by such Lender or Issuing Lender, as applicable, or
otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease
to apply.

ARTICLE 3

CONDITIONS OF LENDING

     Section 3.1 Conditions Precedent to Initial Borrowings and the Initial Letter of
Credit. The obligations of each Lender to make the initial Revolving Advance and for the
Issuing Lender to issue an initial Letter of Credit, if any, and the Existing Letters of Credit
deemed issued on the Effective Date and the obligation of the Swing Line Lender to make the initial
Swing Line Advance shall be subject to the conditions precedent that:

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

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     (i) this Agreement and all attached Exhibits and Schedules;

     (ii) the Revolving Notes and the Swing Line Note, if requested by the applicable
Lender;

     (iii) the Guaranty executed by each Guarantor;

     (iv) the Security Agreement executed by each Credit Party, together with appropriate
UCC-1 financing statements for filing with the appropriate authorities and, except as
otherwise provided in Section 5.8, any other documents, agreements, or instruments necessary
to create an Acceptable Security Interest that is superior to all other Liens (other than
Permitted Liens) in the Collateral described in the Security Agreement;

     (v) the Pledge Agreement executed by each Credit Party that owns Equity Interests in
another Person (other than Global Holdings and its Subsidiaries), pledging all of such
Credit Party’s Equity Interests in such Persons, together with stock powers executed in
blank, UCC-1 financing statements, and any other documents, agreements, or instruments
necessary to create an Acceptable Security Interest that is superior to all other Liens
(other than Excepted Liens) in the Collateral described in the Pledge Agreement;

     (vi) certificates of insurance issued by the applicable insurance carriers covering the
Borrower’s and its Restricted Subsidiaries Properties, for such amounts and covering such
risks that are contemplated by Section 5.3;

     (vii) a certificate from a Responsible Officer of the Borrower dated as of the
Effective Date stating that as of such date (A) all representations and warranties of the
Borrower set forth in this Agreement are true and correct and (B) no Default has occurred
and is continuing;

     (viii) a certificate from a Financial Officer of the Borrower certifying that, before
and after giving effect to the Borrowings contemplated hereunder and the Wedge Acquisition,
the Borrower and each of its Restricted Subsidiaries, taken as a whole, are Solvent
(assuming with respect to each Guarantor, that the fraudulent conveyance savings language
and the contribution provisions contained in the Guaranty will be given full effect).

     (ix) a secretary’s certificate from Borrower and each Guarantor certifying such
Person’s (A) officers’ incumbency, (B) authorizing resolutions, (C) Organization Documents,
and (D) governmental approvals, if any, with respect to the Credit Documents to which such
Person is a party;

     (x) certificates of good standing for the Borrower and each Guarantor in each state in
which such Person is organized or qualified to do business, which certificate shall be dated
a date not sooner than thirty (30) days prior to the Effective Date;

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     (xi) a legal opinion of Fulbright & Jaworski, L.L.P. counsel to the Credit Parties;

     (xii) copies of each of the Wedge Acquisition Documents certified as of the Effective
Date by a Responsible Officer of the Borrower (A) as being true and correct copies of such
documents as of the Effective Date, (B) as being in full force and effect and (C) that no
material term or condition thereof shall have been amended, modified or waived after the
execution thereof in any respect materially adverse to the Administrative Agent or the
Lenders without the prior written consent of the Administrative Agent;

     (xiii) a Notice of Borrowing and/or Letter of Credit Application, as applicable, with
respect to the initial Advance or initial Letter of Credit hereunder; and

     (xiv) such other documents, governmental certificates, agreements, and lien searches as
the Administrative Agent or any Lender may reasonably request.

     (b) Consents; Authorization; Conflicts. The Borrower and its Restricted Subsidiaries
shall have received any consents, licenses and approvals necessary in connection with the
execution, delivery, performance, validity and enforceability of this Agreement and the other
Credit Documents and the Wedge Acquisition, and such approvals shall be in full force and effect,
and all applicable waiting periods shall have expired without any action being taken or threatened
by any competent authority which would restrain, prevent or otherwise impose adverse conditions on
this Agreement and the actions contemplated hereby or the Wedge Acquisition.

     (c) Representations and Warranties. The representations and warranties contained in
Article 4 and in each other Credit Document shall be true and correct on and as of the Effective
Date both before and after giving effect to the initial Borrowings or issuance of Letters of Credit
and to the application of the proceeds from such Borrowing, as though made on and as of such date
except to the extent such representations and warranties relate to a specific earlier date, in
which case, such representations and warranties shall be true and correct as of such earlier date.

     (d) Payment of Fees. The Borrower shall have paid the fees and expenses required to
be paid as of the Effective Date by Sections 2.7(c) and 9.1 or any other provision of a Credit
Document.

     (e) Other Proceedings. No action, suit, investigation or other proceeding (including,
without limitation, the enactment or promulgation of a statute or rule) by or before any arbitrator
or any Governmental Authority shall be pending or, to the knowledge of the Borrower, threatened,
and no preliminary or permanent injunction or order by a state or federal court shall have been
entered (i) in connection with this Agreement or any transaction contemplated hereby or the Wedge
Acquisition or (ii) which, in any case, in the judgment of the Administrative Agent, could
reasonably be expected to result in a Material Adverse Change.

     (f) Material Adverse Change. No event or circumstance that could reasonably be
expected to result in a material adverse change in the business, condition (financial or
otherwise), or results of operations of (i) the Borrower and its Restricted Subsidiaries, taken as
a whole, shall

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have occurred since September 30, 2007 or (ii) the Wedge Entities, taken as a whole, shall
have occurred since December 31, 2006.

     (g) Appraisals. The Administrative Agent shall have received a written appraisal in
form and substance satisfactory to the Administrative Agent reflecting an aggregate orderly
liquidation value greater than $500,000,000 for all fixed assets of the Borrower and its Restricted
Subsidiaries which constitute Collateral.

     (h) Financial Statements. The Administrative Agent shall have received (i) the
audited annual financial statements for the Borrower and its Restricted Subsidiaries (other than
the Wedge Entities) dated as of December 31, 2007, (ii) the audited annual financial statements for
the Wedge Entities (including the measurement and control unit) dated as of December 31, 2006,
(iii) the unaudited monthly financial statements for the Wedge Entities (including the measurement
and control unit) dated as of September 30, 2007, (iv) the unaudited monthly financial statements
for the Wedge Entities (excluding the measurement and control unit) dated as of January 31, 2008
and (v) a report in form and substance reasonably satisfactory to the Administrative Agent
detailing accounts receivable and accounts payable agings for the Borrower and its Restricted
Subsidiaries and the Wedge Entities.

     (i) Existing Credit Agreements. The Administrative Agent shall have received evidence
that the Existing Credit Agreements have been or concurrently with the Effective Date are being
terminated and all Liens securing obligations under the Existing Credit Agreements have been or
concurrently with the Effective Date are being released.

     (j) Consummation of the Wedge Acquisition. The Administrative Agent shall have
received evidence satisfactory to the Administrative Agent confirming that the Wedge Acquisition
shall have been consummated or shall substantially contemporaneously with the initial Revolving
Advance be consummated.

     (k) Security Documents. The Administrative Agent shall have received all evidence
required by the Administrative Agent in its reasonable discretion necessary to determine that
arrangements have been made for the Administrative Agent to have an Acceptable Security Interest
that is superior to all other Liens (other than Permitted Liens) in the Collateral (except as
otherwise provided in Section 5.8), including, without limitation, (i) the delivery to the
Administrative Agent of such financing statements under the Uniform Commercial Code for filing in
such jurisdictions as the Administrative Agent may require, (ii) lien, tax and judgment searches
conducted on the Credit Parties reflecting no Liens other than Permitted Liens against any of the
Collateral as to which perfection of a Lien is accomplished by the filing of a financing statement
and (iii) lien releases with respect to any Collateral (including Collateral owned by the Wedge
Entities) currently subject to a Lien other than Permitted Liens.

     Section 3.2 Conditions Precedent to Each Borrowing and to Each Issuance, Extension or
Renewal of a Letter of Credit. The obligation of each Lender to make an Advance on the
occasion of each Borrowing (including the initial Borrowing) and the obligation of the Issuing
Lender to issue, renew or extend a Letter of Credit (including without limitation, the Existing
Letters of Credit deemed issued on the Effective Date) shall be subject to the further conditions
precedent that on the date of such Borrowing or such issuance, renewal or extension:

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     (a) Representations and Warranties. As of the date of the making of any Advance or
the issuance, renewal or extension of any Letter of Credit, the representations and warranties made
by any Credit Party contained in the Credit Documents shall be true and correct in all material
respects on such date, except that any representation and warranty which by its terms is made as of
a specified date shall be required to be true and correct in all material respects only as of such
specified date and each request for the making of any Advance or issuance, renewal or extension of
any Letter of Credit and the making of such Advance or the issuance, renewal or extension of such
Letter of Credit shall be deemed to be a reaffirmation of such representations and warranties.

     (b) Default. As of the date of the making of any Advance or the issuance, renewal or
extension of any Letter of Credit, there shall exist no Default, and the making of the Advance or
the issuance, renewal or extension of any Letter of Credit, as applicable, would not cause a
Default.

     Section 3.3 Determinations Under Sections 3.1 and 3.2. For purposes of determining
compliance with the conditions specified in Sections 3.1 and 3.2, each Lender shall be deemed to
have consented to, approved or accepted or to be satisfied with each document or other matter
required thereunder to be consented to or approved by or acceptable or satisfactory to the Lenders
unless an officer of the Administrative Agent responsible for the transactions contemplated by the
Credit Documents shall have received written notice from such Lender prior to the Borrowings
hereunder specifying its objection thereto and such Lender shall not have made available to the
Administrative Agent such Lender’s ratable portion of such Borrowings.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants as follows:

     Section 4.1 Organization. The Borrower and each Restricted Subsidiary is duly and
validly organized and existing and in good standing under the laws of its jurisdiction of
incorporation or formation and is authorized to do business and is in good standing in all
jurisdictions in which such qualifications or authorizations are necessary except to the extent the
failure to be so authorized or, in the case of Borrower’s Restricted Subsidiaries, to be in good
standing could not reasonably be expected to result in a Material Adverse Change. As of the
Effective Date, the Borrower and each Restricted Subsidiary’s type of organization and jurisdiction
of incorporation or formation are set forth on Schedule 4.1.

     Section 4.2 Authorization. The execution, delivery, and performance by each Credit
Party of each Credit Document to which such Credit Party is a party and the consummation of the
transactions contemplated thereby and the consummation of the Wedge Acquisition (a) are within such
Credit Party’s corporate, partnership or limited liability company powers, (b) have been duly
authorized by all necessary corporate, limited liability company or partnership action, (c) do not
contravene any Organization Document binding on or affecting such Credit Party, (d) do not
contravene any law or any contractual restriction binding on or affecting such Credit Party, (e) do
not result in or require the creation or imposition of any Lien prohibited by this

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Agreement, and (f) do not require any authorization or approval or other action by, or any
notice or filing with, any Governmental Authority, except, in the case of clauses (d) and (f), to
the extent such contravention or the failure to obtain authorization, approval or notice or take
other action could not reasonably be expected to have a Material Adverse Change.

     Section 4.3 Enforceability. The Credit Documents have each been duly executed and
delivered by each Credit Party that is a party thereto and each Credit Document constitutes the
legal, valid, and binding obligation of each Credit Party that is a party thereto, enforceable in
accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, or similar laws at the time in effect affecting the rights of creditors generally and
to the effect of general principles of equity whether applied by a court of law or equity.

     Section 4.4 Financial Condition.

     (a) The audited annual financial statements for the Borrower and its Restricted Subsidiaries
(other than the Wedge Entities) dated as of December 31, 2007 and the unaudited quarterly financial
statements for the Wedge Entities dated as of September 30, 2007 delivered pursuant to Section
3.1(h) are true and correct in all material respects and present fairly in all material respects
the consolidated financial condition of the Borrower and its Restricted Subsidiaries (other than
the Wedge Entities) or the Wedge Entities, respectively, as of the respective dates thereof except
as otherwise expressly noted therein, and in the case of the unaudited quarterly financial
statements mentioned above, subject to the absence of footnotes and to normal year-end adjustments.
As of the date of the aforementioned financial statements, there were no material contingent
obligations, material unaccrued liabilities for taxes, material unusual forward or long-term
commitments, or material unrealized or anticipated losses of the applicable Persons, except as
disclosed therein or in writing to the Administrative Agent prior to the Effective Date and
adequate reserves for such items have been made in accordance with GAAP.

     (b) Since December 31, 2007, no Material Adverse Change has occurred with respect to the
Borrower and its Restricted Subsidiaries (other than the Wedge Entities). Since September 30,
2007, no Material Adverse Change has occurred with respect to the Wedge Entities.

     Section 4.5 Ownership and Liens; Real Property. The Borrower and each Restricted
Subsidiary (a) has good and marketable title to, or a valid leasehold interest in, all real
Property, and good title to all personal Property, in each case necessary for its business,
including as of the Effective Date the Property reflected in the financial statements referred to
in Section 4.4(a), and (b) none of the Property owned or leased by any such Person is subject to
any Lien except for minor defects in title that do not materially interfere with its ability to
conduct its business or to utilize such assets for their intended purpose and Permitted Liens.

     Section 4.6 True and Complete Disclosure. All written factual information (whether
delivered before or after the date of this Agreement) prepared by or on behalf of the Borrower and
the Subsidiaries and furnished to the Administrative Agent and the Lenders for purposes of or in
connection with this Agreement, any other Credit Document or any transaction contemplated hereby or
thereby is true and accurate in all material respects on the date as of

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which such information is dated or certified and not incomplete by omitting to state any
material fact necessary to make such information (taken as a whole) not materially misleading at
such time; provided that with respect to projected financial information, the Borrower represents
only that such information was prepared in good faith based upon assumptions believed to be
reasonable at the time of preparation; it being understood that such projections may vary from
actual results and that such variances may be material. There is no fact known to any Responsible
Officer of the Borrower or any Subsidiary on the date of this Agreement that has not been disclosed
to the Administrative Agent that could reasonably be expected to result in a Material Adverse
Change.

     Section 4.7 Litigation. There are no actions, suits, or proceedings pending or, to
Borrower’s knowledge, threatened against the Borrower or any Restricted Subsidiary, at law, in
equity, or in admiralty, or by or before any Governmental Authority, which (a) could reasonably be
expected to result in a Material Adverse Change or (b) purports to affect the legality, validity,
binding effect or enforceability of this Agreement, any Note, any other Credit Document, the Wedge
Acquisition or the Wedge Acquisition Documents. Additionally, except as disclosed in writing to
the Administrative Agent and the Lenders, there is no pending or, to the Borrower’s knowledge,
threatened action or proceeding instituted against any of the Borrower or any Restricted Subsidiary
which seeks to adjudicate any of the Borrower or any Restricted Subsidiary as bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment
of a receiver, trustee or other similar official for it or for any substantial part of its
Property; provided that this Section 4.7 does not apply with respect to Environmental Claims.

     Section 4.8 Compliance with Agreements. Neither the Borrower nor any Restricted
Subsidiary is a party to any indenture, loan or credit agreement or any lease or any other type of
agreement or instrument or subject to any charter or corporate restriction or provision of
applicable law or governmental regulation the performance of or compliance with which could
reasonably be expected to cause a Material Adverse Change. Neither the Borrower nor any Restricted
Subsidiary is in default, or has received a notice of default, under or with respect to any
contract, agreement, lease or any other type of agreement or instrument to which the Borrower or
such Restricted Subsidiary is a party that could reasonably be expected to have a Material Adverse
Change.

     Section 4.9 Pension Plans. (a) All Plans are in compliance in all material respects
with all applicable provisions of ERISA, (b) no Termination Event has occurred with respect to any
Plan that would result in an Event of Default under Section 7.1(i), and each Plan has complied with
and been administered in all material respects in accordance with applicable provisions of ERISA
and the Code, (c) no “accumulated funding deficiency” (as defined in Section 302 of ERISA) has
occurred with respect to any Plan and there has been no excise tax imposed upon the Borrower or any
Restricted Subsidiary under Section 4971 of the Code, (d) to the knowledge of Borrower, no
Reportable Event has occurred with respect to any Multiemployer Plan, and each Multiemployer Plan
has complied with and been administered in accordance with applicable provisions of ERISA and the
Code, (e) the present value of all benefits vested under each Plan (based on the assumptions used
to fund such Plan) did not, as of

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the last annual valuation date applicable thereto, exceed the value of the assets of such Plan
allocable to such vested benefits, (f) neither the Borrower nor any member of the Controlled Group
has had a complete or partial withdrawal from any Multiemployer Plan for which there is any
unsatisfied withdrawal liability, and (g) as of the most recent valuation date applicable thereto,
neither the Borrower nor any member of the Controlled Group would become subject to any liability
under ERISA if the Borrower or any member of the Controlled Group has received notice that any
Multiemployer Plan is insolvent or in reorganization, except with respect to clauses (c) through
(g), as could not reasonably be expected to result in a Material Adverse Change. Based upon GAAP
existing as of the date of this Agreement and current factual circumstances, the Borrower has no
reason to believe that the annual cost during the term of this Agreement to the Borrower or any
member of the Controlled Group for post-retirement benefits to be provided to the current and
former employees of the Borrower or any member of the Controlled Group under Plans that are welfare
benefit plans (as defined in Section 3(1) of ERISA) could reasonably be expected to result in a
Material Adverse Change.

     Section 4.10 Environmental Condition.

     (a) Permits, Etc. Except as set forth on Schedule 4.10, the Borrower and the
Restricted Subsidiaries (i) have obtained all material Environmental Permits necessary for the
ownership and operation of their respective Properties and the conduct of their respective
businesses; (ii) for the past five years have been and are currently in material compliance with
all terms and conditions of such Environmental Permits and with all other material requirements of
applicable Environmental Laws; (iii) have not received written notice of any material violation or
alleged material violation of any Environmental Law or Environmental Permit; and (iv) are not
subject to any material actual or contingent Environmental Claim.

     (b) Certain Liabilities. Except as set forth on Schedule 4.10, none of the present
or, to the Borrower’s knowledge, previously owned or operated Property of the Borrower or the
Restricted Subsidiaries or, to the Borrower’s knowledge, of any of their respective former
Subsidiaries, wherever located, (i) has been placed on or proposed to be placed on the National
Priorities List, the Comprehensive Environmental Response Compensation Liability Information System
list, or their state or local analogs; (ii) is currently subject to an investigation or
remediation, cleanup, closure, restoration, reclamation, or other response activity under any
Environmental Laws that could be material; (iii) is subject to a Lien, arising under or in
connection with any Environmental Laws, that attaches to any revenues or to any Property owned or
operated by the Borrower or any Restricted Subsidiary, wherever located; or (iv) has been subject
to a Release of Hazardous Substances or Hazardous Wastes from present or past operations for which
a Response is currently required under Environmental Law that could be material.

     (c) Certain Actions. Except as set forth on Schedule 4.10, without limiting the
foregoing, (i) all necessary material notices have been properly filed, and, except as would not
result in a Material Adverse Change, no further action is required under current applicable
Environmental Law as to each Response or other restoration or remedial project undertaken by the
Borrower, any Restricted Subsidiary or any of their respective former Subsidiaries on any of their
presently or formerly owned or operated Property and (ii) the present and, to the Borrower’s
knowledge, future liability, if any, of the Borrower or of any Restricted Subsidiary which could

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reasonably be expected to arise in connection with requirements under Environmental Laws could
not reasonably be expected to result in a Material Adverse Change.

     Section 4.11 Subsidiaries. The Borrower has no Subsidiaries other than those listed
on Schedule 4.11 as of the Effective Date. Each Material Subsidiary of the Borrower (including any
such Material Subsidiary formed or acquired subsequent to the Effective Date) has complied with the
requirements of Section 5.6.

     Section 4.12 Investment Company Act. Neither the Borrower nor any Restricted
Subsidiary is an “investment company” or a company “controlled” by an “investment company” within
the meaning of the Investment Company Act of 1940, as amended. Neither the Borrower nor any
Restricted Subsidiary is subject to regulation under any Federal or state statute, regulation or
other Legal Requirement which limits its ability to incur Debt.

     Section 4.13 Taxes. (a) Proper and accurate (in all material respects), Federal and
material state, local and foreign tax returns, reports and statements required to be filed (after
giving effect to any extension granted in the time for filing) by the Borrower, any Restricted
Subsidiary, or any member of the Tax Group have been filed with the appropriate Governmental
Authorities, and (b) all taxes and other impositions due and payable have been timely paid prior to
the date on which any fine, penalty, interest, late charge or loss may be added thereto for
non-payment thereof except (i) taxes that are being contested in good faith and by appropriate
proceedings or (ii) to the extent that the failure to do so could not be reasonably expected to
result in a Material Adverse Change. Proper and accurate amounts have been withheld by the
Borrower and all other members of the Tax Group from their employees for all periods to comply in
all material respects with the tax, social security and unemployment withholding provisions of
applicable federal, state, local and foreign law.

     Section 4.14 Permits, Licenses, etc. The Borrower and each Restricted Subsidiary
possesses all permits, licenses, patents, patent rights or licenses, trademarks, trademark rights,
trade names rights, and copyrights which are material to the conduct of its business. The Borrower
and each Restricted Subsidiary manages and operates its business in accordance with all applicable
Legal Requirements except to the extent the failure to comply therewith could not reasonably be
expected to have a Material Adverse Change.

     Section 4.15 Use of Proceeds. The proceeds of the Advances will be used by the
Borrower for the purposes described in Section 6.6. The Borrower is not engaged in the business of
extending credit for the purpose of purchasing or carrying margin stock (within the meaning of
Regulation U). No proceeds of any Advance will be used to purchase or carry any margin stock in
violation of Regulation T, U or X.

     Section 4.16 Condition of Property; Casualties. The material Properties used or to be
used in the continuing operations of the Borrower and the Restricted Subsidiaries, are in good
working order and condition, normal wear and tear and casualty and condemnation excepted.

     Section 4.17 Insurance. The Borrower and each Restricted Subsidiary carries insurance
with reputable insurers in respect of their respective Properties, in such amounts and against such
risks as is customarily maintained by other Persons of similar size engaged in similar businesses

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or, self-insure to the extent that is customary for Persons of similar size engaged in similar
businesses.

ARTICLE 5

AFFIRMATIVE COVENANTS

     So long as any Obligation (other than (a) Letter of Credit Obligations which are not yet due
and payable in connection with Letters of Credit which have been cash collateralized in accordance
with Sections 2.2(a)(ii), 2.5(e), 7.2(b) or 7.3(b) and (b) contingent indemnification obligations
which are not due and payable and which by their terms survive the termination or expiration of
this Agreement and the other Credit Documents) shall remain unpaid, any Lender shall have any
Revolving Commitment hereunder, or there shall exist any Letter of Credit Exposure (other than
Letter of Credit Exposure which has been cash collateralized in accordance with Sections
2.2(a)(ii), 2.5(e), 7.2(b) or 7.3(b)), the Borrower agrees to comply, and to cause each Restricted
Subsidiary to comply, with the following covenants.

     Section 5.1 Organization. The Borrower shall, and shall cause each Restricted
Subsidiary to, preserve and maintain its partnership, limited liability company or corporate
existence, rights, franchises and privileges in the jurisdiction of its organization, and qualify
and remain qualified as a foreign business entity in each jurisdiction in which qualification is
necessary or desirable in view of its business and operations or the ownership of its Properties
except to the extent the failure to do so could not reasonably be expected to result in a Material
Adverse Change; provided, however, that nothing herein contained shall prevent any
transaction permitted by Section 6.7 or Section 6.8.

     Section 5.2 Reporting.

     (a) Annual Financial Reports of the Borrower. The Borrower shall provide, or shall
cause to be provided, to the Administrative Agent, as soon as available, but in any event within 90
days after the end of each fiscal year of the Borrower commencing with the fiscal year ending on
December 31, 2008, the unqualified (except for qualifications relating to changes in accounting
principles or practices reflecting changes in GAAP) audited annual Financial Statements, all
prepared in all material respects in conformity with GAAP consistently applied and all as audited
by certified public accountants reasonably acceptable to the Administrative Agent together with a
duly completed Compliance Certificate that shall include a certification by a Financial Officer of
the Borrower that no Default has occurred and is continuing.

     (b) Quarterly Financial Reports. The Borrower shall provide to the Administrative
Agent, as soon as available, but in any event within (x) sixty (60) days after the end of the
fiscal quarter ending on March 31, 2008 and (y) ten (10) days after required to be filed with the
SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934 after the end of each of the
first three fiscal quarters of each fiscal year of the Borrower commencing with the fiscal quarter
ending on June 30, 2008, (i) internally prepared Financial Statements as of the close of such
fiscal quarter and (ii) a comparison of such Financial Statements to the Financial Statements for
the corresponding fiscal period of the preceding fiscal year, all of which shall be certified by a
Financial Officer of the Borrower as fairly presenting in all material respects the financial

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condition of the Borrower, and a duly completed Compliance Certificate that shall include a
certification by a Financial Officer of the Borrower that no Default has occurred and is
continuing.

     (c) Defaults. The Borrower shall provide to the Administrative Agent promptly, but in
any event within five (5) Business Days after the occurrence thereof, a notice of each Default
known to the Borrower or any Restricted Subsidiary, together with a statement of a Responsible
Officer of the Borrower setting forth the details of such Default and the actions which the
Borrower has taken and proposes to take with respect thereto.

     (d) Asset Coverage Ratio Certificate; Appraisal Reports. If the Leverage Ratio is
equal to or greater than 2.25 to 1.00 at the end of any fiscal quarter, the Borrower shall deliver
to the Administrative Agent as soon as available, but in any event on or prior to the date that the
Financial Statements for such fiscal quarter are required to be delivered pursuant to Sections 5.2
(a) or (b), as applicable, a certificate executed by a Financial Officer of the Borrower in form
and substance reasonably satisfactory to the Administrative Agent that shall include a
certification by a Financial Officer of the Borrower that the Borrower was in compliance with
Section 6.19 as of the end of such fiscal quarter, together with supporting calculations (an
“Asset Coverage Ratio Certificate”); provided that, if the Borrower has not
previously delivered to the Administrative Agent an Appraisal Report dated within the preceding
consecutive twelve month period, the Borrower shall deliver to the Administrative Agent as soon as
available, but in any event within forty-five (45) days after the date that the Financial
Statements for such fiscal quarter are required to be delivered pursuant to Sections 5.2 (a) or
(b), as applicable, an Asset Coverage Ratio Certificate together with an Appraisal Report dated
within the preceding consecutive twelve (12) month period.

     (e) Environmental Notices. Promptly upon, and in any event no later than thirty (30)
days after the receipt thereof, or the acquisition of knowledge thereof, by the Borrower or any
Restricted Subsidiary, the Borrower shall provide the Administrative Agent with a copy of any form
of request, claim, complaint, order, notice, summons or citation received from any Governmental
Authority or any other Person, (i) concerning violations or alleged violations of Environmental
Laws, which seeks to impose liability therefore in excess of $5,000,000, (ii) concerning any action
or omission on the part of any of the Borrower, any Restricted Subsidiary or any of their
respective former Restricted Subsidiaries in connection with Hazardous Waste or Hazardous
Substances which could reasonably be expected to result in the imposition of liability in excess of
$5,000,000 or requiring that action be taken to respond to or clean up a Release of Hazardous
Substances or Hazardous Waste into the environment and such action or clean-up could reasonably be
expected to exceed $5,000,000, including without limitation any information request related to, or
notice of, potential responsibility under CERCLA, or (iii) concerning the filing of a Lien securing
liabilities in excess of $5,000,000 described in clause (i) or (ii) above upon, against or in
connection with the Borrower any Restricted Subsidiary, or any of their respective former
Subsidiaries, or any of their leased or owned Property, wherever located.

     (f) Material Changes. The Borrower shall provide to the Administrative Agent prompt
written notice of any condition or event of which the Borrower or any Restricted Subsidiary has
knowledge, which condition or event has resulted or may reasonably be expected

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to result in (i) a Material Adverse Change or (ii) a breach of or noncompliance with any
material term, condition, or covenant of any material contract to which the Borrower or any
Restricted Subsidiary is a party or by which its Properties may be bound which breach or
noncompliance could reasonably be expected to result in a Material Adverse Change.

     (g) Termination Events. As soon as possible and in any event (i) within thirty (30)
days after the Borrower or any member of the Controlled Group knows or has reason to know that any
Termination Event described in clause (a) of the definition of Termination Event with respect to
any Plan has occurred, and (ii) within ten (10) days after the Borrower or any member of the
Controlled Group knows or has reason to know that any other Termination Event with respect to any
Plan has occurred, the Borrower shall provide to the Administrative Agent a statement of a
Responsible Officer of the Borrower describing such Termination Event and the action, if any, which
the Borrower or any Affiliate of the Borrower proposes to take with respect thereto;

     (h) Termination of Plans. Promptly and in any event within five (5) Business Days
after receipt thereof by the Borrower or any member of the Controlled Group from the PBGC, the
Borrower shall provide to the Administrative Agent copies of each notice received by the Borrower
or any such member of the Controlled Group of the PBGC’s intention to terminate any Plan or to have
a trustee appointed to administer any Plan;

     (i) Other ERISA Notices. Promptly and in any event within five (5) Business Days
after receipt thereof by the Borrower or any member of the Controlled Group from a Multiemployer
Plan sponsor, the Borrower shall provide to the Administrative Agent a copy of each notice received
by the Borrower or any member of the Controlled Group concerning the imposition or amount of
withdrawal liability imposed on the Borrower or any member of the Controlled Group pursuant to
Section 4202 of ERISA;

     (j) Other Governmental Notices. Promptly and in any event within five (5) Business
Days after receipt thereof by the Borrower or any Restricted Subsidiary, the Borrower shall provide
to the Administrative Agent a copy of any notice, summons, citation, or proceeding seeking to
modify in any material respect, revoke, or suspend any material contract, license, permit, or
agreement with any Governmental Authority;

     (k) Disputes; etc. The Borrower shall provide to the Administrative Agent prompt
written notice of any claims, legal or arbitration proceedings, proceedings before any Governmental
Authority, or disputes, or to the knowledge of the Borrower, any such actions threatened, or
affecting the Borrower or any Restricted Subsidiary, which could reasonably be expected to cause a
Material Adverse Change, or any material labor controversy of which the Borrower or any Restricted
Subsidiary has knowledge resulting in or reasonably considered to be likely to result in a strike
against the Borrower or any Restricted Subsidiary;

     (l) Securities Law Filings and other Public Information. The Borrower shall provide
to the Administrative Agent promptly after the same are available, copies of each annual report,
proxy or financial statement or other material report or communication sent to the stockholders of
the Borrower, and copies of all annual, regular, periodic and special reports and registration
statements which the Borrower may file or be required to file with the SEC under Section 13 or

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15(d) of the Securities Exchange Act of 1934 or any other securities Governmental Authority,
and not otherwise required to be delivered to the Administrative Agent pursuant hereto;

     (m) Wedge Financial Statements. The Borrower shall provide to the Administrative
Agent, promptly after the same are available, audited annual financial statements for the Wedge
Entities (excluding the measurement and control unit) for the fiscal year ending December 31, 2007,
prepared in all material respects in conformity with GAAP consistently applied and audited by
Fitts, Roberts & Co., P.C.

     (n) USA Patriot Act. Promptly following a request by any Lender, the Borrower shall
provide to such Lender all documentation and other information that such Lender reasonably requests
in order to comply with its ongoing obligations under applicable “know your customer” and
anti-money laundering rules and regulations, including the USA Patriot Act; and

     (o) Other Information. Subject to the confidentiality provisions of Section 9.7(g),
the Borrower shall provide to the Administrative Agent such other information respecting the
business, operations, or Property of the Borrower or any Restricted Subsidiary, financial or
otherwise, as any Lender through the Administrative Agent may reasonably request.

The Borrower hereby acknowledges that (1) the Administrative Agent will make available to the
Lenders materials and/or information provided by or on behalf of the Borrower and their
Subsidiaries hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on
IntraLinks or another similar electronic system (the “Platform”) and (2) certain of the Lenders may
be “public-side” Lenders (i.e., Lenders that do not wish to receive material non-public information
with respect to the Borrower or its securities) (each, a “Public Lender”). The Borrower hereby
agrees that (w) all Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC”
shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the
Borrower shall be deemed to have authorized the Administrative Agent, the Swing Line Lender, the
Issuing Bank and the Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to the Borrower, its Subsidiaries or their securities for
purposes of United States Federal and state securities laws; (y) all Borrower Materials marked
“PUBLIC” are permitted to be made available through a portion of the Platform designated “Public
Investor;” and (z) the Administrative Agent shall be entitled to treat any Borrower Materials that
are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not
designated “Public Investor.”

Documents required to be delivered pursuant to Section 5.2(a), (b) or (l) may be delivered
electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which
the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the
Internet and (ii) on which such documents are posted on the Borrower’s behalf on an Internet or
intranet website, if any, to which each Lender and the Administrative Agent have access (whether a
commercial, third-party website or whether sponsored by the Administrative Agent); provided,
however, that (x) the Borrower shall deliver paper copies of such documents to the Administrative
Agent or any Lender that requests the Borrower to deliver such paper copies until a written request
to cease delivering paper copies is given by the Administrative Agent or such Lender and (y) the
Borrower shall notify the Administrative Agent and each Lender (by

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telecopier or electronic mail) of the posting of any such documents and provide to the
Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.
Notwithstanding anything contained herein, in every instance the Borrower shall be required to
provide paper copies of the Compliance Certificates required by Section 5.2(a) and (b) to the
Administrative Agent.

     Section 5.3 Insurance.

     (a) The Borrower shall, and shall cause each Restricted Subsidiary to, with reputable insurers
in respect of their respective Properties, carry and maintain insurance in such amounts and against
such risks as is customarily maintained by other Persons of similar size engaged in similar
businesses or, self-insure to the extent that is customary for Persons of similar size engaged in
similar businesses; provided that, the amounts of such insurance and the risks covered by
such insurance shall be acceptable to the Administrative Agent, in its reasonable discretion.

     (b) If requested by the Administrative Agent, certified copies of all policies of insurance or
certificates thereof, and endorsements and renewals thereof shall be delivered by Borrower to and
retained by the Administrative Agent. All policies of property insurance with respect to the
Collateral either shall have attached thereto a lender’s loss payable endorsement in favor of the
Administrative Agent for its benefit and the ratable benefit of the Secured Parties or name the
Administrative Agent as loss payee for its benefit and the ratable benefit of the Secured Parties,
in either case, in form reasonably satisfactory to the Administrative Agent, and all policies of
liability insurance shall name the Administrative Agent for its benefit and the ratable benefit of
the Secured Parties as an additional insured. All policies or certificates of insurance shall set
forth the coverage, the limits of liability, the name of the carrier, the policy number, and the
period of coverage. All such policies shall contain a provision that notwithstanding any contrary
agreements between the Borrower, the Restricted Subsidiaries and the applicable insurance company,
such policies will not be canceled or amended in any manner that is materially adverse to the
interests of the Administrative Agent or the Secured Parties (which provision shall include any
reduction in the scope or limits of coverage) without at least thirty (30) days’ (or ten (10) days
in the case of non-payment) prior written notice to the Administrative Agent.

     (c) Any proceeds of insurance referred to in this Section 5.3 which are paid to the
Administrative Agent shall (i) if no Event of Default has occurred and is continuing, be returned
to the Borrower to be applied as permitted by Section 2.5(c), and (ii) if an Event of Default has
occurred and is continuing, be immediately applied to the Obligations in accordance with Section
7.6.

     Section 5.4 Compliance with Laws. The Borrower shall, and shall cause each Restricted
Subsidiary to, comply with all federal, state, and local laws and regulations (including
Environmental Laws) which are applicable to the operations and Property of the Borrower or any
Restricted Subsidiary and maintain all related permits necessary for the ownership and operation of
the Borrower’s and each Restricted Subsidiary’s Property and business except to the extent the
failure to comply therewith could not reasonably be expected to have a Material Adverse Change;
provided that this Section 5.4 shall not prevent the Borrower or any Restricted

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Subsidiary
from, in good faith and with reasonable diligence, contesting the validity or application of any
such laws or regulations by appropriate legal proceedings for which adequate reserves have been
established.

     Section 5.5 Taxes. The Borrower shall, and shall cause each Restricted Subsidiary to
pay and discharge all taxes, assessments, and other charges and claims related thereto imposed on
the Borrower or any Restricted Subsidiary prior to the date on which penalties attach except (a)
where such tax, assessment, charge, or claim is being contested in good faith and for which
adequate reserves have been established in compliance with GAAP, or (b) to the extent that the
failure to do so could not be reasonably expected to result in a Material Adverse Change.

     Section 5.6 New Subsidiaries. Within thirty (30) days (or such longer period of time
agreed to by the Administrative Agent in its reasonable discretion) after (x) the creation of any
new Material Subsidiary permitted by this Agreement (other than a Subsidiary of Global Holdings) or
(y) the purchase by the Borrower or any Restricted Subsidiary of the capital stock of any Person,
which purchase results in such Person becoming a Material Subsidiary of the Borrower permitted by
this Agreement, the Borrower shall cause (a) such Material Subsidiary to execute and deliver to the
Administrative Agent (i) a supplement to the Guaranty in substantially the same form as Annex 1 to
the Guaranty, (ii) a supplement to the Security Agreement in substantially the same form as Annex 1
to the Security Agreement, (iii) if such Material Subsidiary owns any Equity Interests in any other
Person, a supplement to Pledge Agreement in substantially the same form as Annex 1 to the Pledge
Agreement, and (iv) such evidence of corporate, partnership or limited liability company authority
to enter into such supplements to the Guaranty, Security Agreement, and Pledge Agreement as the
Administrative Agent may reasonably request and, if requested by the Administrative Agent, opinions
of counsel to such Material Subsidiary in form and substance reasonably satisfactory to the
Administrative Agent (which shall cover, among other things, the legality, validity, binding effect
and enforceability of the documentation referred to in clause (a)) and (b) the equity holder of
such Material Subsidiary to execute an amendment to the Pledge Agreement pledging 100% of the
Equity Interest owned by such equity holder of such Material Subsidiary and such evidence of
corporate, limited liability company or partnership authority to enter into such amendment to the
Pledge Agreement as the Administrative Agent may reasonably request, along with share certificates
pledged thereby and appropriately executed stock powers in blank, if applicable; provided
that, no new Material Subsidiary that is a controlled foreign corporation under Section 957 of the
Code shall be required to enter into supplements to the Guaranty, Security Agreement or Pledge
Agreement and the Borrower or any Restricted Subsidiary domiciled in the U.S. that is an equity
holder of a controlled foreign corporation under Section 957 of the Code shall only be required to
pledge 65% of the Equity Interest of such controlled foreign corporation pursuant to the Pledge
Agreement.

     Section 5.7 Security. The Borrower agrees that at all times the Administrative Agent
shall have an Acceptable Security Interest that is superior to all other Liens (other than
Permitted Liens) in the Collateral to secure the performance and payment of the Obligations.

     Section 5.8 Deposit Accounts and Securities Accounts. The Borrower shall, and shall
cause each Restricted Subsidiary to, maintain its deposit accounts and securities accounts with
banks and securities intermediaries that are reasonably acceptable to Administrative Agent. As

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of
the Effective Date, the only deposit accounts and securities accounts maintained by the Credit
Parties are described on Schedule 5.8. Within ten (10) days following the Effective Date (or a
later date agreed to by the Administrative Agent in its reasonable discretion) the Borrower shall,
and shall cause each such Credit Party to, deliver to the Administrative Agent Account Control
Agreements with each securities intermediary holding a securities account containing auction rate
securities of any Credit Party. Within sixty (60) days following the Effective Date (or a later
date agreed to by the Administrative Agent in its reasonable discretion) the Borrower shall, and
shall cause each such Credit Party to, deliver to the Administrative Agent Account Control
Agreements with each depositary bank or securities intermediary holding each account described on
Schedule 5.8 (other than securities accounts referred to in the immediately preceding sentence).
Following the Effective Date, if any Credit Party elects to open any new deposit account or
securities account, the Borrower shall, and shall cause each such Credit Party to (i) provide
notice to Administrative Agent at least fifteen (15) days prior to transferring any funds to any
such new deposit account or securities account, and (ii) cause the depositary bank or securities
intermediary holding any such new account to enter into an Account Control Agreement; provided
that, such Account Control Agreement shall be in full force and effect prior to the transfer of any
such funds by any Credit Party to such new account. Notwithstanding anything to the contrary
contained in this Agreement or the other Credit Documents, in no event shall the Borrower or any of
its Restricted Subsidiaries be required to enter into an Account Control Agreement with respect to
a deposit account or securities account that (a) are used solely for the purpose of holding amounts
necessary to fund, in the ordinary course of business and consistent with past practice, (i)
payroll and related payroll taxes or (ii) sales taxes and other tax obligations of the Credit
Parties for which officers and directors could incur personal liability if not paid, (b) do not
contain individually or in the aggregate more than $1,000,000.00 at any time outstanding or (c) are
operating accounts used solely for the purpose of accruing overnight interest.

     Section 5.9 Records; Inspection. Borrower shall, and shall cause each Restricted
Subsidiary to, maintain books of record with respect to such Person’s operations, affairs, and
financial condition in accordance with GAAP in all material respects. Upon reasonable prior
notice, the Borrower shall permit the Administrative Agent and any Lender and shall cause each
Restricted Subsidiary to permit the Administrative Agent and any Lender, at such reasonable times
during normal business hours and under the reasonable guidance of officers of or employees
delegated by officers of the Borrower or such Restricted Subsidiary to, subject to any applicable
confidentiality considerations, examine and copy the books and records of the Borrower or such
Restricted Subsidiary, to visit and inspect the Property of the Borrower or such Restricted
Subsidiary, and to discuss the business operations and Property of the Borrower or such Restricted
Subsidiary with the officers and directors thereof; provided that, unless an Event of Default shall
have occurred and be continuing, only the Administrative Agent on behalf of Lenders may exercise
inspection, examination or audit rights under this Section 5.9 and the Administrative Agent shall
not exercise such rights more often than one time during any calendar year.

     Section 5.10 Maintenance of Property. The Borrower shall, and shall cause each
Restricted Subsidiary to, maintain their owned, leased, or operated Property necessary in the
operation of its business in good condition and repair, normal wear and tear and casualty and
condemnation excepted; and shall abstain from, and cause each Restricted Subsidiary to abstain

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from, knowingly or willfully permitting the commission of waste or other injury, destruction, or
loss of natural resources, or the occurrence of pollution, contamination, or any other condition
in, on or about the owned or operated Property involving the Environment that could, individually
or in the aggregate, reasonably be expected to result in a Material Adverse Change.

ARTICLE 6

NEGATIVE COVENANTS

     So long as any Obligation (other than (a) Letter of Credit Obligations which are not yet due
and payable in connection with Letters of Credit which have been cash collateralized in accordance
with Sections 2.2(a)(ii), 2.5(e), 7.2(b) or 7.3(b) and (b) contingent indemnification obligations
which are not due and payable and which by their terms survive the termination or expiration of
this Agreement and the other Credit Documents) shall remain unpaid, any Lender shall have any
Revolving Commitment hereunder, or there shall exist any Letter of Credit Exposure (other than
Letter of Credit Exposure which has been cash collateralized in accordance with Sections
2.2(a)(ii), 2.5(e), 7.2(b) or 7.3(b)), the Borrower agrees to comply, and to cause each Restricted
Subsidiary to comply, with the following covenants.

     Section 6.1 Debt. The Borrower shall not, nor shall it permit any Restricted
Subsidiary to, create, assume, incur, suffer to exist, or in any manner become liable, directly,
indirectly, or contingently in respect of, any Debt other than the following (collectively, the
“Permitted Debt”):

     (a) Debt of the Credit Parties under the Credit Documents;

     (b) intercompany Debt incurred in the ordinary course of business subordinated to the
Obligations on terms reasonably acceptable to the Administrative Agent and owed (i) by any
Guarantor to the Borrower; (ii) by the Borrower to any Guarantor; and (iii) by any Guarantor to
another Guarantor; provided that, if applicable, such Debt is an Investment permitted under
Section 6.3;

     (c) purchase money debt, Capital Leases or Synthetic Lease Obligations in an aggregate
principal amount not to exceed $15,000,000.00 at any time;

     (d) Debt secured by Liens of the type described in Section 6.2(d);

     (e) Debt (other than for borrowed money) subject to Liens permitted under Sections 6.2 (b),
(g) and (h);

     (f) Debt arising under any Hedging Arrangement between a Credit Party and a Swap Counterparty
permitted under Section 6.15;

     (g) unfunded Plan obligations or liabilities to the extent they are permitted to remain
unfunded under applicable law;

     (h) Guarantees of any Credit Party in respect of Debt of any Credit Party otherwise permitted
hereunder;

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     (i) Debt of the Borrower and its Restricted Subsidiaries assumed in connection with
Acquisitions permitted under Section 6.4 in an aggregate principal amount not to exceed
$15,000,000; provided that such Debt is not incurred in contemplation of such Acquisition;

     (j) Debt of the Borrower and its Restricted Subsidiaries owed to the seller of any Property
acquired in an Acquisition permitted under Section 6.4 on an unsecured subordinated basis, which
subordination shall be on terms reasonably satisfactory to the Administrative Agent;

     (k) Debt incurred by the Borrower or its Restricted Subsidiaries in an Acquisition permitted
under Section 6.4 consisting of agreements providing for indemnification, the adjustment of the
purchase price or similar adjustments;

     (l) Debt arising under performance, stay, appeal and surety bonds or with respect to workers’
compensation or other like employee benefit claims, in each case incurred in the ordinary course of
business, and obligations in respect of letters of credit related thereto;

     (m) Debt existing on the Effective Date and set forth in Schedule 6.1 and any modifications,
refinancings, extensions, renewals or replacements (but not the increase in the aggregate principal
amount) thereof; and

     (n) other Debt in an aggregate principal amount not to exceed $15,000,000.00 at any time
outstanding.

     Section 6.2 Liens. The Borrower shall not, nor shall it permit any Restricted
Subsidiary to, create, assume, incur, or suffer to exist any Lien on the Property of the Borrower
or any Restricted Subsidiary, whether now owned or hereafter acquired, or assign any right to
receive any income, other than the following (collectively, the “Permitted Liens”):

     (a) Liens securing the Obligations;

     (b) Excepted Liens;

     (c) Liens securing purchase money debt, Capital Leases or Synthetic Lease Obligations
permitted under Section 6.1(c); provided that each such Lien encumbers only the Property
financed by such Debt and the proceeds and products thereof; provided further that individual
financings of Property provided by one lender may be cross-collateralized to other financings of
Property provided by such lender;

     (d) Liens on Property of Persons which become Restricted Subsidiaries of the Borrower after
the Effective Date and securing Permitted Debt; provided that, (i) such Liens are in existence at
the time the respective Persons become Restricted Subsidiaries of the Borrower and were not created
in anticipation thereof and (ii) the Debt secured by such Liens (A) is secured only by such
Property (other than proceeds and products thereof and after acquired property) and not by any
other assets of the Restricted Subsidiary acquired, and (B) is not increased in amount;

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     (e) Liens in favor of the Borrower or a Restricted Subsidiary securing Debt permitted under
Section 6.1(b) on a subordinated basis, which subordination shall be on terms reasonably
satisfactory to the Administrative Agent;

     (f) Liens arising from precautionary UCC financing statements regarding operating leases
entered into by the Borrower or any Restricted Subsidiary in the ordinary course of business;

     (g) Pledges and deposits made in the ordinary course of business to secure insurance premiums
and reimbursement obligations under insurance policies;

     (h) Liens (i)(A) on advances of cash or Permitted Investments in favor of the seller of any
property to be acquired in connection with an Acquisition permitted by Section 6.4, which advances
shall be applied against the purchase price for such Acquisition and (B) consisting of an agreement
to dispose of any property in a Disposition permitted by Section 6.8, and (ii) on cash earnest
money deposits made in connection with any letter of intent or purchase agreement permitted
hereunder;

     (i) Liens existing on the Effective Date and set forth in Schedule 6.2 and any modifications,
replacements, renewals or extensions thereof; provided that (i) such Liens shall secure only the
amount of the obligations which they secure on the Effective Date and (ii) such Liens do not extend
to any additional Property other than after acquired Property and proceeds and products thereof;
and

     (j) other Liens securing obligations, actual or contingent, in an aggregate principal amount
not greater than $15,000,000.00 at any time.

     Section 6.3 Investments. The Borrower shall not, nor shall it permit any Restricted
Subsidiary to, make or hold any direct or indirect Investment in any Person, other than the
following (collectively, the “Permitted Investments”):

     (a) Investments in the form of trade credit to customers of the Borrower and the Restricted
Subsidiaries arising in the ordinary course of business and represented by accounts from such
customers;

     (b) Liquid Investments;

     (c) Investments (i) by the Borrower in any Restricted Subsidiary existing on the Effective
Date, (ii) by any Restricted Subsidiary in the Borrower or any other Restricted Subsidiary existing
on the Effective Date and (iii) existing on the Effective Date and set forth on Schedule 6.3;

     (d) Investments in Hedging Arrangements permitted under Section 6.15;

     (e) ordinary course of business Investments in, (i) a Guarantor or (ii) the Borrower;
provided that, to the extent such Investments consist of intercompany loans or advances,
such Investments are subordinated to the Obligations on terms reasonably acceptable to the
Administrative Agent;

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     (f) promissory notes and other non-cash consideration received by the Borrower and the
Restricted Subsidiaries in connection with any asset sale permitted under Section 6.8;

     (g) Investments received in connection with the bankruptcy or reorganization of suppliers and
customers, or with the settlement of delinquent obligations of, and disputes with, customers and
suppliers arising in the ordinary course of business;

     (h) loans and advances to employees of the Borrower and its Restricted Subsidiaries in the
ordinary course of business; provided that the aggregate principal amount of all such loans and
advances shall not exceed $50,000 at any time outstanding;

     (i) creation or acquisition (subject to Section 6.4) of any additional Restricted
Subsidiaries; provided that, any such Restricted Subsidiary which becomes a Material
Subsidiary shall comply with the requirements of Section 5.6;

     (j) Investments consisting of Debt, Liens, Acquisitions, corporate actions, Dispositions and
Restricted Payments permitted under Article VI; and

     (k) (i) Investments by the Borrower or any Restricted Subsidiary in Global Holdings and its
Subsidiaries on the Effective Date and (ii) other Investments in Global Holdings and its
Subsidiaries in an aggregate amount not to exceed an amount equal to the sum of (a) $45,000,000.00
(consisting of transactions directly or indirectly related to operations in connection with the
purchase, sale or transfer of five drilling rigs by the Borrower or its Restricted Subsidiaries, as
previously identified to the Administrative Agent) plus (b) ten percent (10%) of the
consolidated Net Worth of the Borrower at any time outstanding.

     Section 6.4 Acquisitions. The Borrower shall not, nor shall it permit any Restricted
Subsidiary to, make an Acquisition (other than the Wedge Acquisition and the Competition
Acquisition) in a transaction or related series of transactions unless (a) no Event of Default
shall have occurred or be continuing or would result from such Acquisition, (b) such Acquisition is
substantially related to the business of the Borrower and its Restricted Subsidiaries individually
or in the aggregate and is not hostile, (c) after giving effect to such Acquisition, Revolving
Availability would be equal to or greater than $25,000,000.00, and (d) if after giving pro-forma
effect to such Acquisition as of the beginning of the period of four fiscal quarters most recently
ended, such Acquisition would cause the Leverage Ratio as of the last day of the most recent fiscal
quarter to be equal to or greater than 2.50 to 1.00, such Acquisition would not cause (i) the total
consideration for such Acquisition (whether paid in cash or in Equity Interests of the Borrower or
assumed in liabilities by the purchaser(s)) to exceed $15,000,000.00 or (ii) the sum of the total
consideration for such Acquisition and all other Acquisitions during any fiscal year (whether paid
in cash or in Equity Interests of the Borrower or assumed in liabilities by the purchaser(s)) to
exceed $30,000,000.00 in the aggregate.

     Section 6.5 Agreements Restricting Liens or Payments to Borrower. The Borrower shall
not, nor shall it permit any Restricted Subsidiary to, create, incur, assume or permit to exist any
contract, agreement or understanding (other than this Agreement, the Security Documents and
agreements governing Debt permitted by Section 6.1(c) to the extent such restrictions govern only
the assets financed pursuant to such Debt incurred pursuant to Section 6.1(c)) which in any

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way
prohibits or restricts the granting, conveying, creation or imposition of any Lien on any of its
Property, whether now owned or hereafter acquired, to secure the Obligations or restricts any
Restricted Subsidiary from paying Restricted Payments to the Borrower, or which requires the
consent of or notice to other Persons in connection therewith, except (a) in connection with a
Disposition permitted by Section 6.8 or (b) customary restrictions contained in leases, subleases
or licenses entered into in the ordinary course of business.

     Section 6.6 Use of Proceeds. The Borrower shall not, nor shall it permit any
Restricted Subsidiary to, (a) use the proceeds of the Revolving Advances for any purposes other
than (i) working capital purposes, (ii) to finance the Wedge Acquisition and other Acquisitions and
Investments permitted hereunder, (iii) general corporate purposes, including the payment of fees
and expenses related to the Wedge Acquisition and entering into of this Agreement and the other
Credit Documents, and (iv) to repay the outstanding balance and other amounts payable in connection
with the Existing Credit Agreements. The Borrower shall not, directly or indirectly, nor shall it
permit any of its Subsidiaries to, use any part of the proceeds of Advances or Letters of Credit
for any purpose which violates, or is inconsistent with, Regulations T, U, or X.

     Section 6.7 Corporate Actions. The Borrower shall not, nor shall it permit any
Restricted Subsidiary to, merge or consolidate with or into any other Person, except that (a) any
Credit Party may merge or be consolidated with or into any other Credit Party and (b) any Credit
Party may merge with any other Person in order to effect an Investment, Acquisition or Disposition
permitted pursuant to Sections 6.3, 6.4 and 6.8 respectively, provided that, in each such
case, immediately after giving effect to any such proposed transaction (x) no Default would exist,
(y) in the case of any such merger to which the Borrower is a party, the Borrower is the surviving
entity, and (z) in the case of any such merger to which a Credit Party is a party, a Credit Party
is the surviving entity.

     Section 6.8 Asset Dispositions. The Borrower shall not, nor shall it permit any
Restricted Subsidiary to, make any Disposition or enter into any agreement to make any Disposition,
except:

     (a) Dispositions of obsolete or worn out Property, whether now owned or hereafter acquired, in
the ordinary course of business and Dispositions of Property no longer useful or used by the
Borrower and its Restricted Subsidiaries in the conduct of its business;

     (b) Dispositions of equipment or real Property to the extent that (i) such Property is
exchanged for credit against the purchase price of similar replacement Property or (ii) the
proceeds of such Disposition are reasonably promptly applied to the purchase price of such
replacement Property;

     (c) Dispositions of Property by any Restricted Subsidiary to the Borrower or to a Restricted
Subsidiary; provided that if the transferor of such property is a Credit Party, the transferee
thereof must be a Credit Party;

     (d) Dispositions of inventory in the ordinary course of business;

     (e) Dispositions of Liquid Investments;

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     (f) Dispositions of accounts receivable in connection with the collection or compromise
thereof in the ordinary course of business;

     (g) Sale and lease back transactions permitted by Section 6.14;

     (h) Leases, subleases, licenses or sublicenses of property in the ordinary course of business
and which do not materially interfere with the business of the Borrower and its Restricted
Subsidiaries;

     (i) Transfers of property subject to Recovery Events, subject to the Borrower’s compliance
with Section 2.5(c)(ii);

     (j) Dispositions of rigs and related equipment by the Borrower and its Restricted Subsidiaries
to Global Holdings and its Subsidiaries, subject to the limitations set forth in Section 6.3(k);

     (k) Dispositions permitted by Section 6.3, 6.7 and 6.9;

     (l) The sale of certain property located in Kenmare, North Dakota, for an aggregate purchase
price not to exceed $50,000.00; and

     (m) Dispositions by the Borrower and its Restricted Subsidiaries not otherwise permitted under
this Section 6.8; provided that (i) at the time of such Disposition, no Default shall exist or
would result from such Disposition, (ii) the consideration received by the Borrower or its
Restricted Subsidiaries in connection with such Disposition is comprised of at least 70% (or such
lower percentage as the Administrative Agent may approve in its reasonable discretion) cash or
Liquid Investments and (iii) the aggregate book value of all property Disposed of in reliance on
this clause (m) in any fiscal year shall not exceed $25,000,000.00.

     Section 6.9 Restricted Payments. The Borrower shall not, nor shall it permit any
Restricted Subsidiary to declare, pay or make any Restricted Payments except (a) each Restricted
Subsidiary may make Restricted Payments to the Borrower and any other Restricted Subsidiary and (b)
so long as no Event of Default exists or would result from the making of such Restricted Payments,
payments of principal and interest on any seller notes permitted under Section 6.1(j); provided
that during such Event of Default such principal and interest shall accrue and the same shall be
permitted to be paid hereunder at such time as no Event of Default exists.

     Section 6.10 Affiliate Transactions. Except as set forth on Schedule 6.10, the
Borrower shall not, nor shall it permit any Restricted Subsidiary to, directly or indirectly, enter
into or permit to exist any transaction or series of transactions (including, but not limited to,
the purchase, sale, lease or exchange of Property, the making of any Investment, the giving of any
Guarantee, the assumption of any obligation or the rendering of any service) with any of their
Affiliates unless such transaction or series of transactions is on terms no less favorable to the
Borrower or such Restricted Subsidiary, as applicable, than those that could be obtained in a
comparable arm’s length transaction with a Person that is not such an Affiliate other than (a)
pursuant to the Technical Services Agreement dated as of January 22, 2008 between Pioneer Drilling
Services, Ltd. and Pioneer de Colombia SDAD LTDA-Colombian Branch as the same may be amended,
supplemented, otherwise modified or replaced from time to time, so long as

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the terms thereof are
not materially less favorable to the Borrower and its Restricted Subsidiaries, (b) transactions
otherwise permitted by Article VI, (c) transactions between the Credit Parties, (d) employment and
severance arrangements entered into by the Borrower and its Restricted Subsidiaries in the ordinary
course of business and (e) the payment of customary fees and reimbursement of out of pocket
expenses of directors of the Borrower and its Restricted Subsidiaries.

     Section 6.11 Line of Business. The Borrower shall not, and shall not permit any
Restricted Subsidiary to, materially change the character of the Borrower’s and the Restricted
Subsidiaries’ collective business as conducted on the date of this Agreement, or engage in any type
of business not reasonably related to the Borrower’s and the Restricted Subsidiaries’ collective
business as presently and normally conducted.

     Section 6.12 Hazardous Materials. The Borrower (a) shall not, nor shall it permit any
Restricted Subsidiary to, create, handle, transport, use, or dispose of any Hazardous Substance or
Hazardous Waste, except in material compliance with Environmental Law; and (b) shall not, nor shall
it permit any Restricted Subsidiary to, release any Hazardous Substance or Hazardous Waste into the
environment and shall not permit the Borrower’s or any Restricted Subsidiary’s Property to be
subjected to any release of Hazardous Substance or Hazardous Waste, except in material compliance
with Environmental Law.

     Section 6.13 Compliance with ERISA. The Borrower shall not, nor shall it permit any
Restricted Subsidiary to, directly or indirectly: (a) engage in any transaction in connection with
which the Borrower or any member of the Controlled Group could be subjected to either a civil
penalty assessed pursuant to section 502(c), (i) or (l) of ERISA or a tax imposed by Chapter 43 of
Subtitle D of the Code; (b) terminate, or permit any member of the Controlled Group to terminate,
any Plan in a manner, or take any other action with respect to any Plan, which could result in any
liability to the Borrower or any member of the Controlled Group to the PBGC; (c) fail to make, or
permit any member of the Controlled Group to fail to make, full payment when due of all amounts
which, under the provisions of any Plan, agreement relating thereto or applicable law, the Borrower
or member of the Controlled Group is required to pay as contributions thereto; (d) permit to exist,
or allow any member of the Controlled Group to permit to exist, any accumulated funding deficiency
within the meaning of Section 302 of ERISA or section 412 of the Code, whether or not waived, with
respect to any Plan; (e) permit, or allow any member of the Controlled Group to permit, the
actuarial present value of the benefit liabilities (as “actuarial present value of the benefit
liabilities” shall have the meaning specified in section 4041 of ERISA) under any Plan that is
regulated under Title IV of ERISA to exceed the current value of the assets (computed on a plan
termination basis in accordance with Title IV
of ERISA) of such Plan allocable to such benefit
liabilities; (f) contribute to or assume an obligation to contribute to, or permit any member of
the Controlled Group to contribute to or assume an obligation to contribute to, any Multiemployer
Plan; (g) acquire, or permit any member of the Controlled Group to acquire, an interest in any
Person that causes such Person to become a member of the Controlled Group if such Person sponsors,
maintains or contributes to, or at any time in the six-year period preceding such acquisition has
sponsored, maintained, or contributed to, (1) any Multiemployer Plan, or (2) any other Plan that is
subject to Title IV of ERISA under which the actuarial present value of the benefit liabilities
under such Plan exceeds the current value of the assets (computed on a plan termination basis in
accordance with Title IV

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of ERISA) of such Plan allocable to such benefit liabilities; (h) incur,
or permit any member of the Controlled Group to incur, a liability to or on account of a Plan under
sections 515, 4062, 4063, 4064, 4201 or 4204 of ERISA; (i) contribute to or assume an obligation to
contribute to any employee welfare benefit plan, as defined in section 3(1) of ERISA, including,
without limitation, any such plan maintained to provide benefits to former employees of such
entities, that may not be terminated by such entities in their sole discretion at any time without
any liability; or (j) amend or permit any member of the Controlled Group to amend, a Plan resulting
in an increase in current liability such that the Borrower or any member of the Controlled Group is
required to provide security to such Plan under section 401(a)(29) of the Code.

     Section 6.14 Sale and Leaseback Transactions. The Borrower shall not, nor shall it
permit any Restricted Subsidiary to, sell or transfer to a Person any Property, whether now owned
or hereafter acquired, having a fair market value greater than $10,000,000.00 in the aggregate for
all such Property sold or transferred at any time during the course of this Agreement, if at the
time or thereafter the Borrower or a Restricted Subsidiary shall lease as lessee such Property or
any part thereof or other Property which the Borrower or such Restricted Subsidiary intends to use
for substantially the same purpose as the Property sold or transferred.

     Section 6.15 Limitation on Hedging. The Borrower shall not, nor shall it permit any
Restricted Subsidiary to, (a) purchase, assume, or hold a speculative position in any commodities
market or futures market or enter into any Hedging Arrangement for speculative purposes; or (b) be
party to or otherwise enter into any Hedging Arrangement which (i) is entered into for reasons
other than as a part of its normal business operations as a risk management strategy and/or hedge
against changes resulting from market conditions related to the Borrower’s or the Restricted
Subsidiaries’ operations or (ii) obligates the Borrower or any Restricted Subsidiary to any margin
call requirements.

     Section 6.16 Capital Expenditures. The Borrower shall not, nor shall it permit any
Restricted Subsidiary to, expend or be committed to expend Capital Expenditures unless: (a) no
Event of Default shall have occurred or be continuing or would result from such Capital
Expenditures, (b) after giving effect to such Capital Expenditures, Revolving Availability would be
equal to or greater than $25,000,000.00, and (c) if the Leverage Ratio as of the last day of the
most recent fiscal quarter was equal to or greater than 2.50 to 1.00, such Capital Expenditures
would not cause the sum of the total Capital Expenditures of the Borrower and the Restricted
Subsidiaries during any fiscal year to exceed $100,000,000.00 in the aggregate; provided,
that (x) up to $30,000,000.00 of any such amount referred to above, if not so expended in the
fiscal year for which it is permitted, may be carried over for expenditure in the next succeeding
fiscal year and (y) Capital Expenditures made pursuant to this Section 6.16 during any fiscal year
shall be deemed made, first, in respect of amounts permitted for such fiscal year as provided above
and, second, in respect of amounts carried over from the prior fiscal year pursuant to clause (x)
above.

     Section 6.17 Leverage Ratio. The Borrower shall not permit the Leverage Ratio at the
end of any fiscal quarter (a) ending March 31, 2008 through March 31, 2009, to be greater than 3.00
to 1.00, (b) ending June 30, 2009 through March 31, 2010, to be greater than 2.75 to 1.00, and (c)
ending June 30, 2010 and each fiscal quarter thereafter, to be greater than 2.50 to 1.00.

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     Section 6.18 Interest Coverage Ratio. The Borrower shall not permit the Interest
Coverage Ratio at the end of any fiscal quarter, commencing with the fiscal quarter ending March
31, 2008, to be less than 3.00 to 1.00.

     Section 6.19 Asset Coverage Ratio. If the Leverage Ratio is equal to or greater than
2.25 to 1.00 at the end of any fiscal quarter, commencing with the fiscal quarter ending March 31,
2008, the Borrower shall not permit the Asset Coverage Ratio at the end of such fiscal quarter to
be less than 1.25 to 1.00.

     Section 6.20 Global Holdings and its Subsidiaries.

     (a) The Borrower will not, and will not permit any Restricted Subsidiary to Guarantee any Debt
or other obligations of Global Holdings or any of its Subsidiaries, except to the extent permitted
by Section 6.3(k).

     (b) The Borrower will not permit Global Holdings or any of its Subsidiaries to hold any Equity
Interests in, or any Debt of, the Borrower or any Restricted Subsidiary.

     (c) The Borrower will cause the management, business and affairs of each of the Borrower and
the Restricted Subsidiaries to be conducted in such a manner (including, without limitation, by
keeping separate books of account, furnishing separate financial statements of Global Holdings and
its Subsidiaries to creditors and potential creditors thereof and by not permitting Properties of
the Borrower and the Restricted Subsidiaries to be commingled) so that Global Holdings and each of
its Subsidiaries will be treated as a corporate entity separate and distinct from the Borrower and
the Restricted Subsidiaries.

ARTICLE 7

DEFAULT AND REMEDIES

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

     (a) Payment Failure. The Borrower or any Credit Party (i) fails to pay any principal
when due under this Agreement or (ii) fails to pay, within three (3) Business Days after the same
becomes due, any other amount due under this Agreement or any other Credit Document, including
payments of interest, fees, reimbursements, and indemnifications;

     (b) False Representation or Warranties. Any representation or warranty made or deemed
to be made by the Borrower or any Credit Party or any officer thereof in this Agreement, in any
other Credit Document or in any certificate delivered in connection with this Agreement or any
other Credit Document is incorrect, false or otherwise misleading in any material respect at the
time it was made or deemed made;

     (c) Breach of Covenant. (i) Any breach by the Borrower or any Credit Party of any of
the covenants in Section 5.2(c), Section 5.3(a), or Article 6 (other than Sections 6.12 or 6.13) of
this Agreement or (ii) any breach by the Borrower or any other Credit Party of any other covenant
contained in this Agreement or any other Credit Document and such breach is not

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cured (A) within
thirty (30) days after the earlier of (1) the date notice thereof is given to the Borrower by the
Administrative Agent or any Lender or (2) the date any Responsible Officer of the Borrower or any
other Credit Party obtained actual knowledge thereof or (B) as to any breach of Section 6.12, in a
reasonably diligent manner in compliance with Environmental Laws;

     (d) Guaranty. Any provisions in the Guaranty shall at any time (before its expiration
according to its terms) and for any reason cease to be in full force and effect and valid and
binding on the Guarantors party thereto or shall be contested by any party thereto; any Guarantor
shall deny it has any liability or obligation under the Guaranty;

     (e) Security and Credit Documents. Any Security Document shall at any time and for
any reason cease to create an Acceptable Security Interest that is superior to all other Liens
(other than Permitted Liens) in Collateral with a fair market value in excess of $5,000,000.00 in
the aggregate for all Security Documents purported to be subject to such agreement in accordance
with the terms of such agreement or any material provisions of any Credit Document shall cease to
be in full force and effect and valid and binding on any Credit Party that is a party thereto or
any such Person shall so state in writing, except as a result of the Administrative Agent’s failure
to (i) maintain possession of any stock certificates, promissory notes or other instruments
delivered to it under the Security Documents or (ii) file UCC continuation statements;

     (f) Cross-Default. (i) The Borrower or any Restricted Subsidiary shall fail to pay any
principal of or premium or interest on its Debt which is outstanding in a principal amount of at
least $15,000,000.00 individually or when aggregated with all such Debt of the Borrower and the
Restricted Subsidiaries so in default (but excluding Debt hereunder) when the same becomes due and
payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise),
and such failure shall continue after the applicable grace period, if any, specified in the
agreement or instrument relating to such Debt; (ii) any other event shall occur or condition shall
exist under any agreement or instrument relating to Debt which is outstanding in a principal amount
of at least $15,000,000.00 individually or when aggregated with all such Debt of the Borrower and
the Restricted Subsidiaries so in default (other than Debt hereunder), and shall continue after the
applicable grace period, if any, specified in such agreement or instrument, if the effect of such
event or condition is to accelerate, or to permit the acceleration of, the maturity of such Debt
prior to the stated maturity thereof; or (iii) any Debt which is outstanding in a principal amount
of at least $15,000,000.00 individually or when aggregated with all such Debt of the Borrower and
the Restricted Subsidiaries so in default (but excluding Debt hereunder) shall be declared to be
due and payable, or required to be prepaid (other than by a regularly scheduled required
prepayment);

     (g) Bankruptcy and Insolvency. Any Credit Party (i) admits in writing its inability
to pay its debts generally as they become due; makes an assignment for the benefit of its
creditors; consents to or acquiesces in the appointment of a receiver, liquidator, fiscal agent, or
trustee of itself or any of its Property; files a petition under bankruptcy or other laws for the
relief of debtors; or consents to any reorganization, arrangement, workout, liquidation,
dissolution, or similar relief or (ii) shall have had, without its consent: any court enter an
order appointing a receiver, liquidator, fiscal agent, or trustee of itself or any of its Property;
any petition filed against it seeking reorganization, arrangement, workout, liquidation,
dissolution or similar relief

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under bankruptcy or other laws for the relief of debtors and such
petition shall not be dismissed, stayed, or set aside for an aggregate of sixty (60) consecutive
days;

     (h) Adverse Judgment. The Borrower or any Restricted Subsidiary suffers final
judgments against any of them since the date of this Agreement in an aggregate amount, less any
insurance proceeds covering such judgments which are received or as to which the insurance carriers
admit liability, greater than $15,000,000.00 and either (i) enforcement proceedings shall have been
commenced by any creditor upon such judgments or (ii) there shall be any period of thirty (30)
consecutive days during which a stay of enforcement of such judgments, by reason of a pending
appeal or otherwise, shall not be in effect;

     (i) Termination Events. Any Termination Event with respect to a Plan shall have
occurred, and, thirty (30) days after written notice by the Administrative Agent to the Borrower of
such Termination Event, such Termination Event shall not have been corrected and shall have created
and caused to be continuing a material risk of Plan termination or liability for withdrawal from
the Plan as a “substantial employer” (as defined in Section 4001(a)(2) of ERISA), which termination
could reasonably be expect to result in a liability of, or liability for withdrawal could
reasonably be expected to be, greater than $15,000,000.00;

     (j) Plan Withdrawals. The Borrower or any member of the Controlled Group as an
employer under a Multiemployer Plan shall have made a complete or partial withdrawal from such
Multiemployer Plan and such withdrawing employer shall have incurred a withdrawal liability in an
annual amount exceeding $15,000,000.00; or

     (k) Change in Control. The occurrence of a Change in Control.

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

     (a) the Administrative Agent (i) shall at the request, or may with the consent, of the
Majority Lenders, by notice to the Borrower, declare that the obligation of each Lender and the
Swing Line Lender to make Advances and the obligation of the Issuing Lender to issue Letters of
Credit shall be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the
request, or may with the consent, of the Majority Lenders, by notice to the Borrower, declare the
Notes, all accrued and unpaid interest thereon, and all other amounts payable under this Agreement
to be forthwith due and payable, whereupon the Notes, all such interest, and all such amounts shall
become and be forthwith due and payable in full, without presentment, demand, protest or further
notice of any kind (including, without limitation, any notice of intent to accelerate or notice of
acceleration), all of which are hereby expressly waived by the Borrower,

     (b) the Borrower shall, on demand of the Administrative Agent at the request or with the
consent of the Majority Lenders, deposit with the Administrative Agent into the Cash Collateral
Account an amount of cash equal to 103% of the outstanding Letter of Credit Exposure as security
for the Obligations to the extent the Letter of Credit Obligations are not otherwise paid or cash
collateralized at such time, and

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     (c) the Administrative Agent shall at the request of, or may with the consent of, the Majority
Lenders proceed to enforce its rights and remedies under the Security Documents, the Guaranty, or
any other Credit Document for the ratable benefit of the Secured Parties by appropriate
proceedings.

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

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

     (b) the Borrower shall, on demand of the Administrative Agent at the request or with the
consent of the Majority Lenders, deposit with the Administrative Agent into the Cash Collateral
Account an amount of cash equal to 103% of the outstanding Letter of Credit Exposure as security
for the Obligations to the extent the Letter of Credit Obligations are not otherwise paid or cash
collateralized at such time, and

     (c) the Administrative Agent shall at the request of, or may with the consent of, the Majority
Lenders proceed to enforce its rights and remedies under the Security Documents, the Guaranty, or
any other Credit Document for the ratable benefit of the Secured Parties by appropriate
proceedings.

     Section 7.4 Set-off. Upon (a) the occurrence and during the continuance of any Event
of Default and (b) the making of the request or the granting of the consent, if any, specified by
Section 7.2 to authorize the Administrative Agent to declare the Notes and any other amount payable
hereunder due and payable pursuant to the provisions of Section 7.2 or the automatic acceleration
of the Notes and all amounts payable under this Agreement pursuant to Section 7.3, the
Administrative Agent, the Issuing Lender, the Swing Line Lender and each Lender is hereby
authorized at any time and from time to time, to the fullest extent permitted by law, to set off
and apply any and all deposits (general or special, time or demand, provisional or final) at any
time held and other indebtedness at any time owing by the Administrative Agent, the Issuing Lender,
the Swing Line Lender or such Lender to or for the credit or the account of the Borrower against
any and all of the obligations of the Borrower now or hereafter existing under this Agreement, the
Notes held by the Administrative Agent, the Issuing Lender, the Swing Line Lender or such Lender,
and the other Credit Documents, irrespective of whether or not the Administrative Agent , the
Issuing Lender, the Swing Line Lender or such Lender shall have made any demand under this
Agreement, such Note, or such other Credit Documents, and although such obligations may be
unmatured. Each Lender agrees to promptly notify the Borrower after any such set-off and
application made by such Lender, provided that the failure to give such notice shall not
affect the validity of such set-off and application. The rights of the Administrative Agent, the
Issuing Lender, the Swing Line Lender and each Lender under this Section 7.4 are in addition to any

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other rights and remedies (including, without limitation, other rights of set-off) which the
Administrative Agent, the Issuing Lender, the Swing Line Lender or such Lender may have.

     Section 7.5 Remedies Cumulative, No Waiver. No right, power, or remedy conferred to
the Administrative Agent, the Issuing Lender, the Swing Line Lender or any Lender in this Agreement
or the Credit Documents, or now or hereafter existing at law, in equity, by statute, or otherwise
shall be exclusive, and each such right, power, or remedy shall to the full extent permitted by law
be cumulative and in addition to every other such right, power or remedy. No course of dealing and
no delay in exercising any right, power, or remedy conferred to the Administrative Agent, the
Issuing Lender, the Swing Line Lender or any Lender in this Agreement and the Credit Documents or
now or hereafter existing at law, in equity, by statute, or otherwise shall operate as a waiver of
or otherwise prejudice any such right, power, or remedy. The Administrative Agent, the Issuing
Lender, the Swing Line Lender or any Lender may cure any Event of Default without waiving the Event
of Default. No notice to or demand upon the Borrower or any Restricted Subsidiary shall entitle
the Borrower or such Restricted Subsidiary to similar notices or demands in the future.

     Section 7.6 Application of Payments. Prior to an Event of Default, all payments made
hereunder shall be applied by the Administrative Agent as directed by the Borrower, but ratably
among Lenders, but such payments are subject to the terms of this Agreement, including the
application of prepayments according to Section 2.5. During the existence of an Event of Default,
all payments and collections received by the Administrative Agent in connection with the
transactions contemplated hereby shall be applied to the Obligations in accordance with Section
2.12 and in the following order:

     FIRST, to the payment of all costs and expenses incurred by the Administrative Agent
(in its capacity as such hereunder or under any other Credit Document) in connection with
this Agreement or any of the Obligations, including all court costs and the reasonable fees
and expenses of its agents and legal counsel, the repayment of all advances made by the
Administrative Agent as secured party hereunder or under any other Credit Document on behalf
of any Credit Party and any other reasonable costs or expenses incurred in connection with
the exercise of any right or remedy hereunder or under any other Credit Document;

     SECOND, to the payment of all accrued interest constituting part of the Obligations
(the amounts so applied to be distributed ratably among the Lenders (and to the extent
applicable to Hedging Arrangements or Cash Management Agreements, Swap Counterparties or
Cash Management Banks, as applicable) pro rata in accordance with the amounts of the
Obligations owed to them on the date of any such distribution);

     THIRD, to the payment of any then due and owing principal constituting part of the
Obligations (the amounts so applied to be distributed ratably among the Lenders (and to the
extent applicable to Hedging Arrangements or Cash Management Agreements, the Swap
Counterparties or Cash Management Banks, as applicable) pro rata in accordance with the
principal amounts of the Obligations owed to them on the date of any such distribution);

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     FOURTH, to the payment of any then due and owing other amounts (including fees and
expenses) constituting part of the Obligations (the amounts so applied to be distributed
ratably among the Lenders (and to the extent applicable to Hedging Arrangements or Cash
Management Agreements, the Swap Counterparties or Cash Management Banks, as applicable) pro
rata in accordance with such amounts owed to them on the date of any such distribution); and

     FIFTH, to the Credit Parties, their successors or assigns, or as a court of competent
jurisdiction may otherwise direct.

ARTICLE 8

THE ADMINISTRATIVE AGENT

     Section 8.1 Appointment, Powers, and Immunities. Each Secured Party hereby
irrevocably appoints and authorizes the Administrative Agent to act as its agent under this
Agreement and the other Credit Documents with such powers and discretion as are specifically
delegated to the Administrative Agent by the terms of this Agreement and the other Credit
Documents, together with such other powers as are reasonably incidental thereto. The
Administrative Agent (which term as used in this sentence and in Section 8.5 and the first sentence
of Section 8.6 shall include its Affiliates and its own and its Affiliates’ officers, directors,
employees, and agents): (a) shall not have any duties or responsibilities except those expressly
set forth in this Agreement and shall not be a trustee or fiduciary for any Secured Party; (b)
shall not be responsible to the Secured Parties for any recital, statement, representation, or
warranty (whether written or oral) made in or in connection with any Credit Document or any
certificate or other document referred to or provided for in, or received by any of them under, any
Credit Document, or for the value, validity, effectiveness, genuineness, enforceability, or
sufficiency of any Credit Document, or any other document referred to or provided for therein or
for any failure by any Credit Party or any other Person to perform any of its obligations
thereunder; (c) shall not be responsible for or have any duty to ascertain, inquire into, or verify
the performance or observance of any covenants or agreements by any Credit Party or the
satisfaction of any condition or to inspect the Property (including the books and records) of any
Credit Party or any of its Subsidiaries or Affiliates; (d) shall not be required to initiate or
conduct any litigation or collection proceedings under any Credit Document unless requested by the
Majority Lenders in writing and it receives indemnification satisfactory to it from the Secured
Parties; and (e) shall not be responsible for any action taken or omitted to be taken by it under
or in connection with any Credit Document, except for its own gross negligence or willful
misconduct. The Administrative Agent may employ agents and attorneys-in-fact and shall not be
responsible for the negligence or misconduct of any such agents or attorneys-in-fact selected by
the Administrative Agent with reasonable care.

     Section 8.2 Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely upon any certification, notice, instrument, writing, or other communication
(including, without limitation, any thereof by telephone or telecopy) believed by it to be genuine
and correct and to have been signed, sent or made by or on behalf of the proper Person or Persons,
and upon advice and statements of legal counsel (including counsel for any Credit Party),
independent accountants, and other experts selected by the Administrative Agent. The

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Administrative Agent may deem and treat the payee of any Notes as the holder thereof for all
purposes hereof unless and until the Administrative Agent receives and accepts an Assignment and
Acceptance executed in accordance with Section 9.7. As to any matters not expressly provided for
by this Agreement, the Administrative Agent shall not be required to exercise any discretion or
take any action, but shall be required to act or to refrain from acting (and shall be fully
protected in so acting or refraining from acting) upon the instructions of the Majority Lenders,
and such instructions shall be binding on all of the Secured Parties; provided, however,
that the Administrative Agent shall not be required to take any action that exposes the
Administrative Agent to personal liability or that is contrary to any Credit Document or applicable
law or unless it shall first be indemnified to its satisfaction by the Secured Parties against any
and all liability and expense which may be incurred by it by reason of taking any such action.

     Section 8.3 Defaults. The Administrative Agent shall not be deemed to have knowledge
or notice of the occurrence of a Default unless the Administrative Agent has received written
notice from a Secured Party or the Borrower specifying such Default and stating that such notice is
a “Notice of Default”. In the event that the Administrative Agent receives such a notice of the
occurrence of a Default, the Administrative Agent shall give prompt notice thereof to the Lenders.
The Administrative Agent shall (subject to Section 8.2) take such action with respect to such
Default as shall reasonably be directed by the Majority Lenders, provided that,
unless and until the Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default as it shall deem advisable in the best interest of the Secured
Parties.

     Section 8.4 Rights as Lender. With respect to its Commitment and the Advances made by
it, Wells Fargo (and any successor acting as Administrative Agent) in its capacity as a Lender
hereunder shall have the same rights and powers hereunder as any other Lender and may exercise the
same as though it were not acting as the Administrative Agent, and the term “Lender” or “Lenders”
shall, unless the context otherwise indicates, include the Administrative Agent in its individual
capacity. Wells Fargo (and any successor acting as Administrative Agent) and its Affiliates may
(without having to account therefor to any Secured Party) accept deposits from, lend money to, make
investments in, provide services to, and generally engage in any kind of lending, trust, or other
business with any Credit Party or any of its Subsidiaries or Affiliates as if it were not acting as
Administrative Agent, and Wells Fargo (and any successor acting as Administrative Agent) and its
Affiliates may accept fees and other consideration from any Credit Party or any of its Subsidiaries
or Affiliates for services in connection with this Agreement or otherwise without having to account
for the same to the Secured Parties.

     Section 8.5 Indemnification. THE LENDERS SEVERALLY AGREE TO INDEMNIFY THE
ADMINISTRATIVE AGENT, THE ISSUING LENDER, THE SWING LINE LENDER AND EACH AFFILIATE THEREOF AND
THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AND AGENTS (TO THE EXTENT NOT REIMBURSED BY THE
BORROWER), ACCORDING TO THEIR RESPECTIVE PRO RATA SHARES FROM AND AGAINST ANY AND ALL LIABILITIES,
OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES, OR
DISBURSEMENTS OF ANY KIND OR NATURE WHATSOEVER WHICH MAY BE IMPOSED ON, INCURRED BY, OR ASSERTED
AGAINST THE ADMINISTRATIVE

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AGENT, THE ISSUING LENDER, AND THE SWING LINE LENDER IN ANY WAY RELATING TO OR ARISING OUT OF
THIS AGREEMENT OR ANY ACTION TAKEN OR OMITTED BY THE ADMINISTRATIVE AGENT, THE ISSUING LENDER OR
THE SWING LINE LENDER UNDER THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT (INCLUDING THE
ADMINISTRATIVE AGENT’S, THE ISSUING LENDER’S AND THE SWING LINE LENDER’S OWN NEGLIGENCE), AND
INCLUDING, WITHOUT LIMITATION, ENVIRONMENTAL LIABILITIES, PROVIDED THAT NO LENDER SHALL BE
LIABLE FOR ANY PORTION OF SUCH LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS,
JUDGMENTS, SUITS, COSTS, EXPENSES, OR DISBURSEMENTS RESULTING FROM THE ADMINISTRATIVE AGENT’S, THE
ISSUING LENDER’S OR THE SWING LINE LENDER’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. WITHOUT
LIMITATION OF THE FOREGOING, EACH LENDER AGREES TO REIMBURSE THE ADMINISTRATIVE AGENT, THE ISSUING
LENDER AND THE SWING LINE LENDER PROMPTLY UPON DEMAND FOR ITS RATABLE SHARE OF ANY OUT-OF-POCKET
EXPENSES (INCLUDING COUNSEL FEES) INCURRED BY THE ADMINISTRATIVE AGENT, THE ISSUING LENDER OR THE
SWING LINE LENDER IN CONNECTION WITH THE PREPARATION, EXECUTION, DELIVERY, ADMINISTRATION,
MODIFICATION, AMENDMENT, OR ENFORCEMENT (WHETHER THROUGH NEGOTIATIONS, LEGAL PROCEEDINGS, OR
OTHERWISE) OF, OR LEGAL ADVICE IN RESPECT OF RIGHTS OR RESPONSIBILITIES UNDER, THIS AGREEMENT OR
ANY OTHER CREDIT DOCUMENT, TO THE EXTENT THAT THE ADMINISTRATIVE AGENT, THE ISSUING LENDER OR THE
SWING LINE LENDER IS NOT REIMBURSED FOR SUCH BY THE BORROWER OR ANY OTHER CREDIT PARTY.

     Section 8.6 Non-Reliance on Administrative Agent and Other Lenders. Each Lender
agrees that it has, independently and without reliance on the Administrative Agent or any other
Secured Party, and based on such documents and information as it has deemed appropriate, made its
own credit analysis of the Borrower and the Restricted Subsidiaries and decision to enter into this
Agreement and that it will, independently and without reliance upon the Administrative Agent or any
other Secured Party, and based on such documents and information as it shall deem appropriate at
the time, continue to make its own analysis and decisions in taking or not taking action under the
Credit Documents. Except for notices, reports, and other documents and information expressly
required to be furnished to the Lenders by the Administrative Agent hereunder and for other
information in the Administrative Agent’s possession which has been requested by a Lender and for
which such Lender pays the Administrative Agent’s expenses in connection therewith, the
Administrative Agent shall not have any duty or responsibility to provide any Secured Party with
any credit or other information concerning the affairs, financial condition, or business of any
Credit Party or any of its Subsidiaries or Affiliates that may come into the possession of the
Administrative Agent or any of its Affiliates.

     Section 8.7 Resignation of Administrative Agent and Issuing Lender. The
Administrative Agent, the Issuing Lender or the Swing Line Lender may resign at any time by giving
written notice thereof to the Lenders and the Borrower. Upon receipt of notice of any such
resignation, the Majority Lenders shall have the right to appoint a successor Administrative Agent,
Issuing Lender or Swing Line Lender with, so long as no Event of Default has occurred and is
continuing, the consent of the Borrower, which consent shall not be unreasonably withheld. If no
successor Administrative Agent, Issuing Lender or Swing Line Lender shall have

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been so appointed by the Majority Lenders with the consent of the Borrower, and shall have
accepted such appointment, within thirty (30) days after the retiring Administrative Agent’s,
Issuing Lender’s or Swing Line Lender’s giving of notice of resignation, then the retiring
Administrative Agent, Issuing Lender or Swing Line Lender may, on behalf of the Lenders and the
Borrower (subject to consultation with the Borrower), appoint a successor Administrative Agent,
Issuing Lender or Swing Line Lender, which shall be, in the case of a successor Administrative
Agent, a 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 $250,000,000.00 and, in the case of
the Issuing Lender or Swing Line Lender, a Lender. Upon the acceptance of any appointment as
Administrative Agent, Issuing Lender or Swing Line Lender by a successor Administrative Agent,
Issuing Lender or Swing Line Lender, such successor Administrative Agent, Issuing Lender or Swing
Line Lender shall thereupon succeed to and become vested with all the rights, powers, privileges,
and duties of the retiring Administrative Agent, Issuing Lender or Swing Line Lender, and the
retiring Administrative Agent, Issuing Lender or Swing Line Lender shall be discharged from its
duties and obligations under this Agreement and the other Credit Documents, except that the
retiring Issuing Lender shall remain the Issuing Lender with respect to any Letters of Credit
outstanding on the effective date of its resignation or removal and the provisions affecting the
Issuing Lender with respect to such Letters of Credit shall inure to the benefit of the retiring
Issuing Lender until the termination of all such Letters of Credit. After any retiring
Administrative Agent’s, Issuing Lender’s or Swing Line Lender’s resignation as Administrative
Agent, Issuing Lender or Swing Line Lender, the provisions of this Article 8 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent,
Issuing Lender or Swing Line Lender under this Agreement and the other Credit Documents.

     Section 8.8 Collateral and Guaranty Matters.

     (a) The Lenders irrevocably authorize the Administrative Agent, at its option and in its
discretion, without the necessity of any notice to or further consent from the Secured Parties:

     (i) to release any Lien on any property granted to or held by the Administrative Agent
under any Security Document (i) upon indefeasible payment in full of the Obligations (other
than (a) Letter of Credit Obligations which are not yet due and payable in connection with
Letters of Credit which have been cash collateralized in accordance with Sections
2.2(a)(ii), 2.5(e), 7.2(b) or 7.3(b) and (b) contingent indemnification obligations which
are not due and payable and which by their terms survive the termination or expiration of
this Agreement and the other Credit Documents), the termination or expiration of the
Commitments hereunder, and the termination or expiration of all Letters of Credit (or the
cash collateralization thereof in accordance with Sections 2.2(a)(ii), 2.5(e), 7.2(b) or
7.3(b)), (ii) that is sold or to be sold as part of or in connection with any sale permitted
hereunder or under any other Credit Document, or (iii) subject to Section 9.3, if approved,
authorized or ratified in writing by the Majority Lenders;

     (ii) to take any actions with respect to any Collateral or Security Documents which may
be necessary to perfect and maintain Acceptable Security Interests that are

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superior to all other Liens (other than Permitted Liens) in and Liens upon the
Collateral granted pursuant to the Security Documents; and

     (iii) to take any action in exigent circumstances as may be reasonably necessary to
preserve any rights or privileges of the Secured Parties under the Credit Documents or
applicable Legal Requirements.

     (b) Upon the request of the Administrative Agent at any time, the Lenders will confirm in
writing the Administrative Agent’s authority to release particular types or items of Collateral
pursuant to this Section 8.8.

     (c) Each Credit Party hereby irrevocably appoints the Administrative Agent as such Credit
Party’s attorney-in-fact, with full authority to, after the occurrence and during the continuance
of an Event of Default, act for such Credit Party and in the name of such Credit Party to, in the
Administrative Agent’s discretion, file one or more financing or continuation statements, and
amendments thereto, relative to all or any part of the Collateral without the signature of such
Credit Party where permitted by law, to receive, endorse, and collect any drafts or other
instruments, documents, and chattel paper which are part of the Collateral, and to ask, demand,
collect, sue for, recover, compromise, receive, and give acquittance and receipts for moneys due
and to become due under or in respect of any of the Collateral and to file any claims or take any
action or institute any proceedings which the Administrative Agent may reasonably deem necessary or
desirable for the collection of any of the Collateral or otherwise to enforce the rights of the
Administrative Agent with respect to any of the Collateral. The power of attorney granted hereby
is coupled with an interest and is irrevocable.

     (d) If any Credit Party fails to perform any covenant contained in this Agreement or the other
Security Documents, the Administrative Agent may itself, after five (5) Business Days prior notice
to such Credit Party, perform, or cause performance of, such covenant, and such Credit Party shall
pay for the reasonable and documented out of pocket costs and expenses of the Administrative Agent
incurred in connection therewith in accordance with Section 9.1.

     (e) The powers conferred on the Administrative Agent under this Agreement and the other Credit
Documents are solely to protect its interest in the Collateral and shall not impose any duty upon
it to exercise any such powers. Beyond the safe custody thereof, the Administrative Agent and each
Secured Party shall have no duty with respect to any Collateral in its possession or control (or in
the possession or control of the Administrative Agent or bailee) or with respect to any income
thereon or the preservation of rights against prior parties or any other rights pertaining thereto.
The Administrative Agent shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral in its possession if the Collateral is accorded treatment
substantially equal to that which the Administrative Agent accords its own property. Neither the
Administrative Agent nor any Secured Party shall be liable or responsible for any loss or damage to
any of the Collateral, or for any diminution in the value thereof, by reason of the act or omission
of any warehouseman, carrier, forwarding agency, consignee, broker or other agent or bailee
selected by a Credit Party or selected by the Administrative Agent in good faith.

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     (f) Anything contained in any of the Credit Documents to the contrary notwithstanding, the
Borrower, the Administrative Agent, and each Secured Party hereby agree that no Secured Party shall
have any right individually to realize upon any of the Collateral or to enforce the Guaranty, it
being understood and agreed that all powers, rights and remedies hereunder and under the Security
Documents may be exercised solely by Administrative Agent on behalf of the Secured Parties in
accordance with the terms hereof.

     Section 8.9 No Duties, Etc. Neither Co-Lead Arranger listed on the cover page of this
Agreement shall have any powers, duties or responsibilities in such capacity under this Agreement
or any of the other Credit Documents.

ARTICLE 9

MISCELLANEOUS

     Section 9.1 Costs and Expenses. The Borrower agrees to pay promptly (and in any event
within five (5) Business Days) after written demand (accompanied by detailed invoices) all
reasonable and documented out-of-pocket costs and expenses of Administrative Agent (but not of
other Lenders) in connection with the preparation, execution, delivery, administration,
modification, and amendment of this Agreement, the Notes, and the other Credit Documents including,
without limitation, costs associated with field examinations, appraisals, and the reasonable fees
and out-of-pocket expenses of a single outside counsel for Administrative Agent (but not of other
Lenders), and all reasonable and documented out-of-pocket costs and expenses, if any, of the
Administrative Agent and each Lender (including, without limitation, reasonable fees and expenses
of a single outside counsel of each Lender) in connection with the enforcement (whether through
negotiations, legal proceedings, or otherwise) of this Agreement, the Notes, and the other Credit
Documents.

     Section 9.2 Indemnification. THE BORROWER AGREES TO INDEMNIFY AND HOLD HARMLESS THE
ADMINISTRATIVE AGENT, THE ISSUING LENDER, THE SWING LINE LENDER AND EACH LENDER AND EACH OF THEIR
AFFILIATES AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, AND ADVISORS (EACH, AN
“INDEMNIFIED PARTY”) FROM AND AGAINST ANY AND ALL CLAIMS, DAMAGES, LOSSES, LIABILITIES,
COSTS, AND EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS’ FEES) THAT MAY BE
INCURRED BY OR ASSERTED OR AWARDED AGAINST ANY INDEMNIFIED PARTY, IN EACH CASE ARISING OUT OF OR IN
CONNECTION WITH OR BY REASON OF (INCLUDING, WITHOUT LIMITATION, IN CONNECTION WITH ANY
INVESTIGATION, LITIGATION, OR PROCEEDING OR PREPARATION OF DEFENSE IN CONNECTION THEREWITH) THE
CREDIT DOCUMENTS, ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN OR THE ACTUAL OR PROPOSED USE OF THE
PROCEEDS OF THE ADVANCES, INCLUDING SUCH INDEMNIFIED PARTY’S OWN NEGLIGENCE, EXCEPT TO THE EXTENT
SUCH CLAIM, DAMAGE, LOSS, LIABILITY, COST, OR EXPENSE (A) IS FOUND IN A FINAL, NON-APPEALABLE
JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED FROM (1) SUCH INDEMNIFIED PARTY’S
GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR BAD FAITH OR (2) ANY BREACH BY SUCH INDEMNIFIED PARTY OF
ITS OBLIGATIONS UNDER THE CREDIT

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DOCUMENTS, AND (B) RELATES TO CLAIMS AMONG INDEMNIFIED PARTIES WHICH DO NOT ARISE BECAUSE OF
ANY ACTION OR FAILURE TO ACT BY ANY CREDIT PARTY OR ITS AFFILIATES. IN THE CASE OF AN
INVESTIGATION, LITIGATION OR OTHER PROCEEDING TO WHICH THE INDEMNITY IN THIS SECTION 9.2 APPLIES,
SUCH INDEMNITY SHALL BE EFFECTIVE WHETHER OR NOT SUCH INVESTIGATION, LITIGATION OR PROCEEDING IS
BROUGHT BY THE BORROWER, ITS DIRECTORS, SHAREHOLDERS OR CREDITORS OR AN INDEMNIFIED PARTY OR ANY
OTHER PERSON OR ANY INDEMNIFIED PARTY IS OTHERWISE A PARTY THERETO AND WHETHER OR NOT THE
TRANSACTIONS CONTEMPLATED HEREBY ARE CONSUMMATED. THE BORROWER AGREES NOT TO ASSERT ANY CLAIM
AGAINST THE ADMINISTRATIVE AGENT, THE ISSUING LENDER, THE SWING LINE LENDER, ANY LENDER, ANY OF
THEIR AFFILIATES, OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, ATTORNEYS, AGENTS, AND
ADVISERS, ON ANY THEORY OF LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL, OR PUNITIVE DAMAGES
ARISING OUT OF OR OTHERWISE RELATING TO THE CREDIT DOCUMENTS, ANY OF THE TRANSACTIONS CONTEMPLATED
HEREIN OR THE ACTUAL OR PROPOSED USE OF THE PROCEEDS OF THE ADVANCES. WITHOUT PREJUDICE TO THE
SURVIVAL OF ANY OTHER AGREEMENT OF THE BORROWER HEREUNDER, THE AGREEMENTS AND OBLIGATIONS OF THE
BORROWER CONTAINED IN THIS SECTION 9.2 SHALL SURVIVE THE PAYMENT IN FULL OF THE ADVANCES AND ALL
OTHER AMOUNTS PAYABLE UNDER THIS AGREEMENT.

     Section 9.3 Waivers and Amendments. No amendment or waiver of any provision of this
Agreement, the Notes, or any other Credit Document, nor consent to any departure by the Borrower or
any Guarantor therefrom, shall in any event be effective unless the same shall be in writing and
signed by the Majority Lenders and the Borrower, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; provided that
no amendment, waiver, or consent shall, unless in writing and signed by all the affected Lenders
and the Borrower, do any of the following: (a) waive any of the conditions specified in Article
3.1, (b) reduce the principal of, or interest on, the Notes or any fees or other amounts payable
hereunder or under any other Credit Document (it being understood that the waiver of default
interest shall only require the consent of the Majority Lenders), (c) increase the Total
Commitment, (d) postpone or extend any date fixed for any payment of principal of, or interest on,
the Notes or any fees or other amounts payable hereunder, including, without limitation, the
Maturity Date (it being understood that a waiver of any mandatory prepayments under Section 2.5(c)
shall only require the consent of the Majority Lenders), (e) amend Section 2.12(e), Section 7.6, or
any other provision providing for pro-rata payments by or to the Lenders, or this Section 9.3, (f)
except as specifically provided in the Credit Documents and as a result of transactions permitted
by the terms of this Agreement, release any Guarantor from its obligation under the Guaranty or
release all or a material portion of the Collateral; or (g) amend the definition of “Majority
Lenders” or otherwise change the number of Lenders which shall be required for the Lenders or any
of them to take any action hereunder or under any other Credit Document; and provided,
further, that (i) no Commitment of a Lender or any obligations of a Lender may be increased without
such Lender’s written consent and (ii) no amendment, waiver, or consent shall, unless in writing
and signed by the Administrative Agent, the Issuing Lender and the Swing Line Lender in addition to
the Lenders required above to take such action, affect

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the rights or duties of the Administrative Agent, the Issuing Lender or the Swing Line Lender,
as applicable under this Agreement or any other Credit Document.

     Section 9.4 Severability. In case one or more provisions of this Agreement or the
other Credit Documents shall be invalid, illegal or unenforceable in any respect under any
applicable law, the validity, legality, and enforceability of the remaining provisions contained
herein or therein shall not be affected or impaired thereby.

     Section 9.5 Survival of Representations and Obligations. All representations and
warranties contained in this Agreement or made in writing by or on behalf of the Borrower and the
other Credit Parties in connection herewith shall survive the execution and delivery of this
Agreement and the other Credit Documents, the making of the Advances or the issuance of any Letters
of Credit and any investigation made by or on behalf of the Secured Parties, none of which
investigations shall diminish any Secured Party’s right to rely on such representations and
warranties. All obligations of the Borrower provided for in Sections 2.10, 2.11, 2.13(c), 9.1 and
9.2 and all of the obligations of the Lenders in Section 8.5 shall survive any termination of this
Agreement and repayment in full of the Obligations.

     Section 9.6 Binding Effect. This Agreement shall become effective when it shall have
been executed by the Borrower, the Issuing Lender, the Swing Line Lender and the Administrative
Agent, and when the Administrative Agent shall have, as to each Lender, either received a
counterpart hereof executed by such Lender or been notified by such Lender that such Lender has
executed it and thereafter shall be binding upon and inure to the benefit of the Borrower, the
Administrative Agent, the Issuing Lender, the Swing Line Lender and each Lender and their
respective successors and assigns, except that the Borrower shall not have the right to assign its
rights or delegate its duties under this Agreement or any interest in this Agreement without the
prior written consent of each Lender.

     Section 9.7 Lender Assignments and Participations.

     (a) Each Lender may assign to one or more Eligible Assignees all or a portion of its rights
and obligations under this Agreement (including, without limitation, all or a portion of its
Advances, its Notes, and its Commitments); provided, however, that (i) each such assignment
shall be to an Eligible Assignee; (ii) except in the case of an assignment to another Lender or an
assignment of all of a Lender’s rights and obligations under this Agreement, any such partial
assignment shall be in an amount at least equal to $5,000,000.00; (iii) each such assignment by a
Lender shall be of a constant, and not varying, percentage of all of its rights and obligations
under this Agreement and the Notes (other than rights of reimbursement and indemnity arising before
the effective date of such assignment) and shall be of an equal pro rata share of the Assignor’s
interest in the Revolving Advances, Revolving Commitments, and the related Letters of Credit; and
(iv) the parties to such assignment shall execute and deliver to the Administrative Agent for its
acceptance an Assignment and Acceptance, together with any Notes subject to such assignment and the
assignor or assignee Lender shall pay a processing fee of $3,500.00. Upon execution, delivery, and
acceptance of such Assignment and Acceptance and payment of the processing fee, the assignee
thereunder shall be a party hereto and, to the extent of such assignment, have the obligations,
rights, and benefits of a Lender hereunder and the assigning Lender shall, to the extent of such
assignment, relinquish its rights and be released from its

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obligations under this Agreement. Upon the consummation of any assignment pursuant to this
Section 9.7, the assignor, the Administrative Agent and the Borrower shall make appropriate
arrangements so that, if requested, new Notes are issued to the assignor and the assignee. If the
assignee is not incorporated under the laws of the United States of America or a state thereof, it
shall deliver to the Borrower and the Administrative Agent certification as to exemption from
deduction or withholding of Taxes in accordance with Section 2.13(e).

     (b) The Administrative Agent shall maintain at its address referred to in Schedule 9.8 a copy
of each Assignment and Acceptance delivered to and accepted by it and a register for the
recordation of the names and addresses of the Lenders and the Commitments of, and principal amount
of the Advances owing to, each Lender from time to time (the “Register”). The entries in the
Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrower,
the Administrative Agent and the Lenders may treat each Person whose name is recorded in the
Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available
for inspection by the Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice.

     (c) Upon its receipt of an Assignment and Acceptance executed by the parties thereto, together
with any Notes subject to such assignment and payment of the processing fee, the Administrative
Agent shall, if such Assignment and Acceptance has been completed, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register, and (iii) give prompt
notice thereof to the parties thereto.

     (d) Each Lender may sell participations to one or more Persons in all or a portion of its
rights and/or obligations under this Agreement (including all or a portion of its Commitments or
its Advances) provided, however, that (i) such Lender’s obligations under this Agreement
shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations, (iii) the participant shall be entitled to the
benefit of the yield protection provisions contained in Sections 2.10 and 2.11 (but, with respect
to any particular participant, to no greater extent than the Lender that sold the participation to
such participant) and the right of set-off contained in Section 7.4, and (iv) the Borrower 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 relating to its Advances and its Notes and to approve any amendment,
modification, or waiver of any provision of this Agreement (other than amendments, modifications,
or waivers decreasing the amount of principal of or the rate at which interest is payable on such
Advances or Notes, extending any scheduled principal payment date or date fixed for the payment of
interest on such Advances or Notes, or extending its Commitment).

     (e) Notwithstanding any other provision set forth in this Agreement, any Lender may at any
time assign and pledge all or any portion of its Advances and its Notes to any Federal Reserve Bank
as collateral security pursuant to Regulation A and any Operating Circular issued by such Federal
Reserve Bank. No such assignment shall release the assigning Lender from its obligations
hereunder.

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     (f) Any Lender may furnish any information concerning the Borrower or any of its Subsidiaries
in the possession of such Lender from time to time to assignees and participants (including
prospective assignees and participants), subject, however, to the provisions of the following
paragraph (g).

     (g) The Administrative Agent, the Swing Line Lender, the Issuing Lender, each Lender, each
Swap Counterparty and each Cash Management Bank (each a “Lending Party”) agree to keep
confidential any information furnished or made available to it by the Borrower pursuant to this
Agreement; provided that nothing herein shall prevent any Lending Party from disclosing
such information (a) to any other Lending Party, or any officer, director, employee, agent, or
advisor of any Lending Party for purposes of evaluating the transactions contemplated hereby (it
being understood that the Persons to whom such disclosure is made will be informed of the
confidential nature of such information and will be instructed to keep such information
confidential), (b) to any other Person if directly incidental to the administration of the credit
facility provided herein, (c) as required by any law, rule, or regulation, (d) upon the order of
any court or administrative agency, (e) upon the request or demand of any regulatory agency or
authority, (f) that is or becomes available to the public or that is or becomes available to any
Lending Party other than as a result of a disclosure by any Lending Party prohibited by this
Agreement, (g) in connection with any litigation relating to this Agreement or any other Credit
Document to which such Lending Party or any of its Affiliates may be a party, (h) to the extent
necessary in connection with the exercise of any remedy under this Agreement or any other Credit
Document, and (i) to any actual or proposed participant or assignee, in each case, subject to
provisions substantially similar to those contained in this Section 9.7.

     Section 9.8 Notices, Etc.

     (a) Except as provided in paragraph (b) below, all notices and other communications (other
than Notices of Borrowing and Notices of Continuation or Conversion, which are governed by Article
2 of this Agreement) shall be in writing and hand delivered with written receipt, telecopied, sent
by facsimile (with a hard copy sent as otherwise permitted in this Section 9.8), sent by a
nationally recognized overnight courier, or sent by certified mail, return receipt requested as
follows: if to the Borrower, a Guarantor, the Administrative Agent, the Swing Line Lender, or the
Issuing Lender, as specified on Schedule 9.8 and if to any Lender, as specified in its
Administrative Questionnaire. Each party may change its notice address by written notification to
the other parties. All such notices and communications shall be effective upon the earliest to
occur of (i) actual receipt by the relevant party hereto and (ii) (A) if delivered by hand or by
courier, when signed for by or on behalf of the relevant party hereto, (B) if delivered by mail,
three (3) Business Days after deposit in the mails, postage prepaid and (C) if delivered by
facsimile, when sent and receipt has been confirmed verbally or in writing; provided that notices
and communications to any Lender, the Administrative Agent, the Swing Line Lender, or the Issuing
Lender pursuant to Article 2 shall not be effective until received. Notices delivered through
electronic communications to the extent provided in paragraph (b) below, shall be effective as
provided in said paragraph (b).

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

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provided, that the foregoing shall not apply to notices to the Administrative Agent or any
Lender pursuant to Article 2 if such Person has notified the Borrower that it is incapable of
receiving notices under such Article by electronic communication. Unless the Administrative Agent
otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be
deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such
as by the “return receipt requested” function, as available, return e-mail or other written
acknowledgement), and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

     Section 9.9 Business Loans. The Borrower warrants and represents that the Obligations
evidenced hereunder are and shall be for business, commercial, investment or other similar purposes
and not primarily for personal, family, household or agricultural use, as such terms are used in
Chapter One (“Chapter One”) of the Texas Credit Code. At all such times, if any, as
Chapter One shall establish a Maximum Rate, the Maximum Rate shall be the “indicated rate ceiling”
(as such term is defined in Chapter One) from time to time in effect.

     Section 9.10 Usury Not Intended. It is the intent of the Borrower, the Administrative
Agent, the Issuing Lender, the Swing Line Lender and each Lender in the execution and performance
of this Agreement and the other Credit Documents to contract in strict compliance with applicable
usury laws, including conflicts of law concepts, governing the Advances of each Lender and the
Swing Line Lender including such applicable laws of the State of Texas, if any, and the United
States of America from time to time in effect. In furtherance thereof, the Administrative Agent,
the Issuing Lender, the Swing Line Lender, the Lenders and the Borrower stipulate and agree that
none of the terms and provisions contained in this Agreement or the other Credit Documents shall
ever be construed to create a contract to pay, as consideration for the use, forbearance or
detention of money, interest at a rate in excess of the Maximum Rate and that for purposes of this
Agreement “interest” shall include the aggregate of all charges which constitute interest under
such laws that are contracted for, charged or received under this Agreement; and in the event that,
notwithstanding the foregoing, under any circumstances the aggregate amounts taken, reserved,
charged, received or paid on the Advances, include amounts which by applicable law are deemed
interest which would exceed the Maximum Rate, then such excess shall be deemed to be a mistake and
the Administrative Agent, the Issuing Lender, the Swing Line Lender and each Lender receiving same
shall credit the same on the principal of the Advances (or if such Advances shall have been paid in
full, refund said excess to the Borrower). In the event that the maturity of the Advances are
accelerated by reason of any Event of Default under this Agreement or otherwise, or in the event of
any required or permitted prepayment, then such consideration that constitutes interest may never
include more than the Maximum Rate, and excess interest, if any, provided for in this Agreement or
otherwise shall be canceled automatically as of the date of such acceleration or prepayment and, if
theretofore paid, shall be credited to the principal of the Advances (or, if the applicable Notes
shall have been paid in full, refunded to the Borrower of such interest). In determining whether
or not the interest paid or payable under any specific contingencies exceeds the Maximum Rate, the
Borrower, the Administrative Agent, the Issuing Lender, the Swing Line Lender and the Lenders shall
to the maximum extent permitted under applicable law amortize, prorate, allocate and spread in
equal parts during the period of the full stated term of this Agreement all amounts considered to
be

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interest under applicable law at any time contracted for, charged, received or reserved in
connection with the Obligations. The provisions of this Section shall control over all other
provisions of this Agreement or the other Credit Documents which may be in apparent conflict
herewith.

     Section 9.11 Usury Recapture. In the event the rate of interest chargeable under this
Agreement at any time is greater than the Maximum Rate, the unpaid principal amount of the Advances
shall bear interest at the Maximum Rate until the total amount of interest paid or accrued on the
Advances equals the amount of interest which would have been paid or accrued on the Advances if the
stated rates of interest set forth in this Agreement had at all times been in effect. In the event,
upon payment in full of the Advances, the total amount of interest paid or accrued under the terms
of this Agreement and the Advances is less than the total amount of interest which would have been
paid or accrued if the rates of interest set forth in this Agreement had, at all times, been in
effect, then the Borrower shall, to the extent permitted by applicable law, pay the Administrative
Agent for the account of the Lenders an amount equal to the difference between (i) the lesser of
(A) the amount of interest which would have been charged on its Advances if the Maximum Rate had,
at all times, been in effect and (B) the amount of interest which would have accrued on its
Advances if the rates of interest set forth in this Agreement had at all times been in effect and
(ii) the amount of interest actually paid under this Agreement on its Advances. In the event the
Lenders ever receive, collect or apply as interest any sum in excess of the Maximum Rate, such
excess amount shall, to the extent permitted by law, be applied to the reduction of the principal
balance of the Advances, and if no such principal is then outstanding, such excess or part thereof
remaining shall be paid to the Borrower.

     Section 9.12 Governing Law; Submission to Jurisdiction. This Agreement, the Notes and
the other Credit Documents (unless otherwise expressly provided therein) shall be governed by, and
construed and enforced in accordance with, the laws of the State of Texas. Without limiting the
intent of the parties set forth above, (a) Chapter 346 of the Texas Finance Code, as amended
(relating to revolving loans and revolving tri-party accounts (formerly Tex. Rev. Civ. Stat.
Ann. Art. 5069, Ch. 15)), shall not apply to this Agreement, the Notes, or the transactions
contemplated hereby and (b) to the extent that any Lender may be subject to Texas law limiting the
amount of interest payable for its account, such Lender shall utilize the indicated (weekly) rate
ceiling from time to time in effect. The Borrower hereby irrevocably submits to the jurisdiction
of any Texas state or federal court sitting in Houston, Texas in any action or proceeding arising
out of or relating to this Agreement or the other Credit Documents, and the Borrower hereby
irrevocably agrees that all claims in respect of such action or proceeding may be heard and
determined in such court. The Borrower hereby unconditionally and irrevocably waives, to the
fullest extent it may effectively do so, any right it may have to the defense of an inconvenient
forum to the maintenance of such action or proceeding. The Borrower hereby agrees that service of
copies of the summons and complaint and any other process which may be served in any such action or
proceeding may be made by mailing or delivering a copy of such process to such Borrower at its
address set forth in this Agreement. The Borrower agrees that a final judgment in any such action
or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Section shall affect the rights
of any Secured Party to serve legal process in any other manner permitted by the law or affect the
right of any Secured Party to bring any action or proceeding against the Borrower or its Property
in the courts of any other jurisdiction.

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     Section 9.13 Execution in Counterparts. This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement. This Agreement may be transmitted and/or signed by facsimile. The
effectiveness of any such signatures shall, subject to applicable Legal Requirements, have the same
force and effect as manually-signed originals and shall be binding on all parties hereto. The
Administrative Agent may also require that any such signatures be confirmed by a manually-signed
original thereof; provided, however, that the failure to request or deliver the same shall not
limit the effectiveness of any facsimile signature.

     Section 9.14 Waiver of Jury. THE BORROWER, THE LENDERS, THE ADMINISTRATIVE AGENT, THE
ISSUING LENDER, AND THE SWING LINE LENDER HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY
JURY IN RESPECT OF ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER
CREDIT DOCUMENT, OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

     Section 9.15 Collateral Matters; Hedging Arrangements and Cash Management Agreements.
The benefit of the Security Documents and of the provisions of this Agreement relating to any
Collateral securing the Obligations shall also extend to and be available to Swap Counterparties
and the Cash Management Banks on a pro rata basis in respect of any obligations of any Credit Party
which arise under any such Hedging Arrangement or Cash Management Agreement, as applicable, while
such Person or its Affiliate is a Lender, but only while such Person or its Affiliate is a Lender.
No Lender or any Affiliate of a Lender shall have any voting rights under any Credit Document as a
result of the existence of obligations owed to it under any such Hedging Arrangement or Cash
Management Agreement.

     Section 9.16 USA Patriot Act. The Administrative Agent and each Lender hereby
notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub.
L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and
record information that identifies the Credit Parties, which information includes the name and
address of the Credit Parties and other information that will allow such Lender to identify the
Credit Parties in accordance with the Act.

     Section 9.17 Entire Agreement. THIS WRITTEN AGREEMENT AND THE CREDIT DOCUMENTS, AS
DEFINED IN THIS AGREEMENT, REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES WITH RESPECT TO THE
SUBJECT MATTER SET FORTH HEREIN 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.

[Signature Pages Follow]

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     EXECUTED as of the date first above written.

	 	 	 	 	 
	 	

BORROWER:

PIONEER DRILLING COMPANY

 	 
	 	By:  	/s/ Joyce M. Schuldt
 	 
	 	Name:  	Joyce M. Schuldt 	 
	 	Title:  	Chief Financial Officer 	 
	 

Signature Page to Credit Agreement

Pioneer Drilling Company

 

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT:

WELLS FARGO BANK, N.A., in its capacity as

Administrative Agent, Issuing Lender and Swing Line

Lender

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

Signature Page to Credit Agreement

Pioneer Drilling Company

 

 

	 	 	 	 	 
	 	LENDERS:

WELLS FARGO BANK, N.A., as a Lender

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

Signature Page to Credit Agreement

Pioneer Drilling Company

 

 

	 	 	 	 	 
	 	FORTIS BANK SA/NV, NEW YORK
BRANCH, as a Lender 	 
	 
	 	By:  	/s/ John Benton
 	 
	 	Name:  	John Benton 	 
	 	Title:  	Chief Risk Officer 	 
	 
	 	 	 
	 	By:  	     /s/ Diran Cholakian
 	 
	 	Name:  	Diran Cholakian 	 
	 	Title:  	Director 	 
	 

Signature Page to Credit Agreement

Pioneer Drilling Company

 

 

	 	 	 	 	 
	 	AMEGY BANK, NATIONAL
ASSOCIATION, as a Lender  	 
	 
	 	By:  	/s/ Michael Skarke
 	 
	 	Name:  	Michael Skarke 	 
	 	Title:  	Banking Officer 	 
	 

Signature Page to Credit Agreement

Pioneer Drilling Company

 

 

	 	 	 	 	 
	 	NATIXIS, as a Lender

 	 
	 	By:  	/s/ Tim Polvado
 	 
	 	Name:  	Tim Polvado 	 
	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                         /s/ Carlos Quinteros
 	 
	 	Name:  	Carlos Quinteros 	 
	 	Title:  	Director 	 
	 

Signature Page to Credit Agreement

Pioneer Drilling Company

 

 

	 	 	 	 	 
	 	CATERPILLAR FINANCIAL SERVICES CORPORATION, as a Lender 	 
	 
	 	By:  	/s/ Christopher C. Patterson
 	 
	 	Name:	Christopher C. Patterson 	 
	 	Title:  	Global Operations Manager-Capital Markets 	 
	 

Signature Page to Credit Agreement

Pioneer Drilling Company

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender

 	 
	 	By:  	/s/ Gary L. Mingle
 	 
	 	Name:  	Gary L. Mingle 	 
	 	Title:  	Senior Vice President 	 
	 

Signature Page to Credit Agreement

Pioneer Drilling Company

 

 

	 	 	 	 	 
	 	COMERICA BANK, as a Lender

 	 
	 	By:  	/s/ Gary Culbertson
 	 
	 	Name:  	Gary Culbertson 	 
	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

Pioneer Drilling Company

 

 

	 	 	 	 	 
	 	THE FROST NATIONAL BANK, as
Issuing  Lender for Existing 

Letters of Credit and a Lender
 	 
	 
	 	By:  	/s/ Gregg Chinn
 	 
	 	Name:  	Gregg Chinn 	 
	 	Title:  	Senior Vice President 	 
	 

Signature Page to Credit Agreement

Pioneer Drilling Company

 

 

	 	 	 	 	 
	 	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, 

as a Lender  	 
	 
	 	By:  	/s/ Ric E. Abel
 	 
	 	Name:  	Ric E. Abel 	 
	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

Pioneer Drilling Company

	 	 	 	 	 

 

 

	 	 	 	 	 
	 	HSBC BANK USA, NATIONAL ASSOCIATION, as a Lender

 	 
	 
	 	By:  	/s/ Steven F. Larsen
 	 
	 	Name:  	Steven F. Larsen 	 
	 	Title:  	First Vice President 	 
	 

Signature Page to Credit Agreement

Pioneer Drilling Company

 

 

	 	 	 	 	 
	 	BANK OF SCOTLAND plc, as a Lender

 	 
	 	By:  	/s/ Karen Weich
 	 
	 	Name:  	Karen Weich 	 
	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

Pioneer Drilling Company

 

 

	 	 	 	 	 
	 	WHITNEY NATIONAL BANK, as a Lender

 	 
	 	By:  	/s/ Paul Cole
 	 
	 	Name:  	Paul Cole 	 
	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

Pioneer Drilling Company

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