Document:

exv10w12

Exhibit 10.12

COMPELLENT TECHNOLOGIES, INC.

EXECUTIVE EMPLOYMENT AGREEMENT

     This
Executive Employment
Agreement (the “Agreement”)
originally entered into as of the 16th
day of June, 2008, by and between Compellent Technologies, Inc., a
Delaware corporation (the “Company”), and Brian P. Bell (“Executive”), an individual
residing in the State of Wisconsin, is hereby amended and restated,
effective as of the 3rd day of February, 2010 (the
“Effective Date”).

Recitals

     The Company desires to employ Executive and avail itself of the unique skills, talents,
contacts, judgment and knowledge of Executive;

     Executive desires to be employed by the Company pursuant to the terms and conditions described
more fully below:

     Now, Therefore, in consideration of the foregoing and the mutual covenants set forth
herein, the Company and Executive, intending to be legally bound, hereby agree as follows:

Agreements

     1. Employment and Duties. Subject to the terms and conditions set forth herein, the Executive
shall serve as the Company’s Vice President, Sales, with those duties set forth on Schedule 1
attached hereto. Executive shall devote his full working time and efforts to the Company’s
business, to the exclusion of all other employment or active participation in other material
business interests, unless otherwise consented to in writing by the disinterested members of the
Board of Directors of the Company (the “Board”). The Executive may not serve as a director on any
board of directors without the unanimous written consent of the Board.

     2. At will Employment. Executive’s employment with Company shall be at will and this
Agreement may be unilaterally terminated by either party subject to the terms of Section 5 of this
Agreement.

     3. Compensation. For all services rendered by Executive pursuant to this Agreement, the
Company shall compensate Executive pursuant to the terms and conditions as initially listed in
Schedule 2 attached hereto, or as it may be adjusted from time to time hereafter.

     4. Proprietary Information and Inventions Agreement. Executive affirms his obligations under
the Proprietary Information and Inventions Agreement (the “Proprietary Agreement”) that is attached
as Schedule 3 hereto, which he has previously executed in connection with the commencement of his
employment.

     5. Termination.

          A. Voluntary Termination. Except as provided in Sections 5.B., C., D. and E., each party
hereto may terminate Executive’s employment by giving to the other party no less than thirty (30)
days prior written notice of the party’s intent to terminate. If Executive

 

 

voluntarily terminates his employment without Good Reason then the Company shall have no
further liability to Executive for any payment, compensation or benefit whatsoever, other than
payment of Executive’s accrued but unpaid salary and benefits through the date of Executive’s
termination. If the Company voluntarily terminates Executive’s employment without Cause (as set
forth in Section 5.D. hereof) or Executive terminates his employment for Good Reason (as set forth
in Section 5.E.), and subject to Executive’s compliance with Section 6 of this Agreement and with
the Proprietary Agreement, then Executive shall be entitled to a severance payments and benefits as
described in Section 6 of this Agreement.

          B. By Death. Executive’s employment shall be terminated automatically upon the death of
Executive. The Company’s total liability in such event shall be limited to payment of Executive’s
accrued but unpaid salary and benefits through the date of Executive’s death.

          C. By Disability. The Company may terminate Executive’s employment upon the inability of
Executive to perform on a full-time basis the duties and responsibilities of his employment with
the Company by reason of his illness or other physical or mental impairment or condition, if such
inability continues for an uninterrupted period of 90 days. A period of inability shall be
“uninterrupted” unless and until Executive returns to full-time work for a continuous period of at
least 30 days. The Company shall have no liability for severance pay or benefits following the
date of Executive’s termination of employment, other than payment of Executive’s accrued but unpaid
salary and benefits through the date of Executive’s termination AND ANY RIGHTS EXECUTIVE HAS TO
DISABILITY INSURANCE BENEFITS UNDER APPLICABLE LAW OR THE COMPANY’S SHORT OR LONG TERM DISABILITY
INSURANCE POLICIES AS IN EFFECT AT THE TIME OF TERMINATION.

          D. For Cause. The employment relationship between Executive and the Company created hereunder
shall automatically and immediately terminate upon the occurrence of any one of the following
events:

               (i) the conviction of Executive of a felony;

               (ii) the gross negligence or willful misconduct of Executive which is reasonably determined by
the Board to be injurious to the business or interests of the Company;

               (iii) Executive’s willful violation of specific and lawful directions of the Board, which
persists for a period of 5 days after notice is given of such willful violation;

               (iv) excessive absenteeism of Executive which persists for a period of 30 days after the Board
has given the Executive notice of such absenteeism;

               (v) material failure of Executive to perform or observe the provisions of this Agreement with
the Company which persists for a period of 30 days after notice is given of such failure to perform
or observe;

               (vi) failure to cooperate with the Company in any investigation or formal proceeding; or

 

 

               (vii) any act of fraud with respect to any aspect of the Company’s business where such act is
reasonably determined by the Board to be injurious to the business of the Company.

          E. Good Reason. Executive’s voluntary resignation of his employment under this Agreement will
be considered to be with “Good Reason” if, following the occurrence of one or more of the events
listed below, Executive (1) provides written notice to the Board of the event(s) constituting Good
Reason within thirty (30) days after the first occurrence of such event(s), (2) the Company fails
to reasonably cure such event(s) within thirty (30) days after receiving such notice, and (3)
Executive’s termination of his employment is effective not later than thirty (30) days after the
end of the period in which the Board may cure the event(s). The following events will give rise to
Good Reason, unless Executive has consented thereto in writing:

               (i) A material reduction or diminution in the Executive’s job responsibilities or duties;
provided, however, that neither a mere change in title alone nor reassignment to a position that is
substantially similar to the position held prior to the reassignment shall constitute Good Reason
(including but not limited to, following a Change in Control, performing substantially the same
duties with respect to substantially the same size and scope of organization, but which
organization is part of a larger organization);

               (ii) A material reduction by the Company of Executive’s Base Salary as in effect on the date
of this Agreement (as set forth on Schedule 2 hereof) or as same may be increased from time to time
thereafter; provided, however, that a reduction of Base Salary in connection with a similar general
reduction of the base salaries of the Company’s executive employees shall not constitute Good
Reason;

               (iii) The
relocation by the Company of Executive’s primary work location, on a permanent basis, to an office
that would increase the Executive’s one way commute distance by more than seventy-five (75) miles
from Executive’s primary work location as of immediately prior to such change; or

               (iv) any acquirer, successor or assignee of the Company fails to assume and perform, in all
material respects, the obligations of the Company hereunder.

     6. Severance.

          A. If the Company voluntarily terminates Executive’s employment without Cause (and other than
as a result of Executive’s death or disability (as defined above)) or if Executive resigns his
employment with Good Reason, then subject to the effectiveness of Executive’s executed general
waiver and release of claims in favor of the Company and its affiliates (in substantially the form
attached hereto as Schedule 4), and provided Executive complies with his continuing obligations to
the Company (including but not limited to those in the Proprietary Agreement), Executive shall be
entitled to receive:

               (i) a
lump sum payment equal to four (4) months of his Base Salary
then in effect, less applicable
withholdings (the “Cash Severance”); provided, however, if the termination occurs upon the consummation of, within three (3) months prior to, or eighteen (18) months following, a Change in Control (as defined below), the Cash Severance shall be a lump sum payment equal to the sum of twelve (12) months of his Base Salary then in effect
and the actual cash bonus paid (for purposes of the clarity, the actual cash bonus is intended to include  the actual amount paid pursuant
to the Company’s sales commission plan) in the most recently completed fiscal year, less applicable withholdings;

 

 

               (ii) if Executive was enrolled in a group health plan (e.g., medical, dental, or vision plan)
sponsored by the Company immediately prior to termination, and if Executive (or his eligible
dependents) timely elects to continue such coverage under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (together with any state law of similar effect, “COBRA”), the Company
will pay to the insurance carrier(s) the full amount of the premiums due for Executive and his
eligible dependents for the first four (4) months of such coverage under COBRA (or until such
earlier time as Executive and/or his eligible dependents are no longer eligible for COBRA
coverage); provided, however, if the termination occurs upon the consummation of, within three (3) months prior to, or eighteen (18) months following, a Change in Control, the Company will pay to the insurance carrier(s) the full amount of the premiums due for Executive and his eligible dependents for the first twelve (12) months of such coverage under COBRA (or until such earlier
time as Executive and/or his eligible dependents are no longer eligible for COBRA coverage or the Executive is eligible to obtain group health plan coverage through another employer); and

               (iii) if the termination occurs  upon the consummation of, within three (3) months prior to, or eighteen (18) months
following, a Change in Control, 100% of Executive’s then-outstanding and
unvested compensatory equity awards (in addition to any acceleration provided for pursuant to the
stock options to purchase 50,000 shares granted on March 28, 2007 and 70,000 shares granted on
March 28, 2007) pursuant to the Company’s 2002 Stock Option Plan, as amended (the “Prior Stock
Option Grants”)) shall become immediately fully vested and, as applicable, exercisable, effective
as of immediately prior to the termination of Executive’s employment.

               Executive must execute the release of claims within forty-five (45) days following the date of
termination, and allow the release to become effective in accordance with its terms. If the
release becomes effective within such time period, and subject to Executive’s observation of his
continuing obligations, the Company will pay the Cash Severance on the first regular payroll pay
date following the effective date of the release.

          B. If the Company (or, if applicable, the successor entity thereto) determines that these
severance payments and benefits (the “Payments”) constitute “deferred compensation” under Section
409A of the Internal Revenue Code (together, with any state law of similar effect, “Section 409A”)
and Executive is a “specified employee” of the Company or any successor entity thereto, as such
term is defined in Section 409A(a)(2)(B)(i) (a “Specified Employee”), then, solely to the extent
necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the
timing of the Payments shall be delayed as follows: on the earliest to occur of (i) the date that
is six months and one day after the termination date, (ii) the date of the Eligible Employee’s
death, or (iii) such earlier date, as reasonably determined in good faith by the Company (or any
successor entity thereto), as would not result in any of the Payments being subject to adverse
personal tax consequences under Section 409A (such earliest date, the “Delayed Initial Payment
Date”), the Company (or the successor entity thereto, as applicable) shall (A) pay to Executive a
lump sum amount equal to the sum of the Payments that Executive would otherwise have received
through the Delayed Initial Payment Date if the commencement of the payment of the Payments had not
been delayed pursuant to this Section 6(B) and (B) commence paying the balance of the Payments in
accordance with the applicable payment schedules set forth in Section 6(A) above. For the
avoidance of doubt, it is intended that (1) each installment of the Payments provided in Section
6(A) above is a separate “payment” for purposes of Section 409A, (2) all Payments satisfy, to the
greatest extent possible, the exemptions from the application of Section 409A provided under of
Treasury Regulation 1.409A-1(b)(4)-(6), and 1.409A-1(b)(9)(iii), and (3) the Payments consisting of
COBRA premiums also satisfy, to the greatest extent possible, the exemptions from the application
of Section 409A provided under Treasury Regulation 1.409A-1(b)(9)(v).

 

 

          C. Golden Parachute Tax.

               (i) If any payment or benefit (including payments and benefits pursuant to this Agreement)
that Executive would receive in connection with a Change in Control from the Company or otherwise
(“Transaction Payment”) would (a) constitute a “parachute payment” within the meaning of Section
280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (b) but for this sentence,
be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the
Company shall cause to be determined, before any amounts of the Transaction Payment are paid to
Executive, which of the following two alternative forms of payment would maximize Executive’s
after-tax proceeds: (1) payment in full of the entire amount of the Transaction Payment (a “Full
Payment”), or (2) payment of only a part of the Transaction Payment so that Executive receives the
largest payment possible without the imposition of the Excise Tax (a “Reduced Payment”), whichever
amount results in Executive’s receipt, on an after-tax basis, of the greater amount of the
Transaction Payment notwithstanding that all or some portion of the Transaction Payment may be
subject to the Excise Tax. For purposes of determining whether to make a Full Payment or a Reduced
Payment, the Company shall cause to be taken into account all applicable federal, state and local
income and employment taxes and the Excise Tax (all computed at the highest applicable marginal
rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction
of such state and local taxes). If a Reduced Payment is made, (x) the Transaction Payment shall be
paid only to the extent permitted under the Reduced Payment alternative, and Executive shall have
no rights to any additional payments and/or benefits constituting the Transaction Payment, and (y)
reduction in payments and/or benefits shall occur in the following order: (1) reduction of other
cash payments (if any); (2) cancellation of accelerated vesting of equity awards other than stock
options; (3) cancellation of accelerated vesting of stock options; and (4) reduction of other
benefits (if any) paid to Executive. In the event that acceleration of compensation from
Executive’s equity awards is to be reduced, such acceleration of vesting shall be canceled in the
reverse order of the date of grant.

               (ii) The independent registered public accounting firm engaged by the Company for general
audit purposes as of the day prior to the effective date of the Change in Control shall make all
determinations required to be made under this Section 6(C). If the independent registered public
accounting firm so engaged by the Company is serving as accountant or auditor for the individual,
entity or group effecting the Change in Control, the Company shall appoint a nationally recognized
independent registered public accounting firm to make the determinations required hereunder. The
Company shall bear all expenses with respect to the determinations by such independent registered
public accounting firm required to be made hereunder.

               (iii) The independent registered public accounting firm engaged to make the determinations
hereunder shall provide its calculations, together with detailed supporting documentation, to the
Company and Executive within fifteen (15) calendar days after the date on which Executive’s right
to a Transaction Payment is triggered (if requested at that time by the Company or Executive) or
such other time as reasonably requested by the Company or Executive. If the independent registered
public accounting firm determines that no Excise Tax is payable with respect to the Transaction
Payment, either before or after the application of the Reduced Amount, it shall furnish the Company
and Executive with an opinion reasonably

 

 

acceptable to Executive that no Excise Tax will be imposed with respect to such Transaction
Payment. Any good faith determinations of the accounting firm made hereunder shall be final,
binding and conclusive upon the Company and Executive.

          D. Change in Control. For purposes of this Section 6, “Change in Control” means the
occurrence, in a single transaction or in a series of related transactions, of any one or more of
the following events:

               (i) any Exchange Act Person (as defined in the Company’s 2007 Equity Incentive Plan) becomes
the owner, directly or indirectly, of securities of the Company representing more than fifty
percent (50%) of the combined voting power of the Company’s then outstanding securities other than
by virtue of a merger, consolidation or similar transaction. Notwithstanding the foregoing, a
Change in Control shall not be deemed to occur (a) on account of the acquisition of securities of
the Company by an investor, any affiliate thereof or any other Exchange Act Person from the Company
in a transaction or series of related transactions the primary purpose of which is to obtain
financing for the Company through the issuance of equity securities or (b) solely because the level
of ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated
percentage threshold of the outstanding voting securities as a result of a repurchase or other
acquisition of voting securities by the Company reducing the number of shares outstanding, provided
that if a Change in Control would occur (but for the operation of this sentence) as a result of the
acquisition of voting securities by the Company, and after such share acquisition, the Subject
Person becomes the owner of any additional voting securities that, assuming the repurchase or other
acquisition had not occurred, increases the percentage of the then outstanding voting securities
owned by the Subject Person over the designated percentage threshold, then a Change in Control
shall be deemed to occur;

               (ii) there is consummated a merger, consolidation or similar transaction involving (directly
or indirectly) the Company and, immediately after the consummation of such merger, consolidation or
similar transaction, the stockholders of the Company immediately prior thereto do not own, directly
or indirectly, either (a) outstanding voting securities representing more than fifty percent (50%)
of the combined outstanding voting power of the surviving entity in such merger, consolidation or
similar transaction or (b) more than fifty percent (50%) of the combined outstanding voting power
of the parent of the surviving entity in such merger, consolidation or similar transaction, in each
case in substantially the same proportions as their ownership of the outstanding voting securities
of the Company immediately prior to such transaction;

               (iii) there is consummated a sale, lease, exclusive license or other disposition of all or
substantially all of the consolidated assets of the Company and its subsidiaries, other than a
sale, lease, license or other disposition of all or substantially all of the consolidated assets of
the Company and its subsidiaries to an entity, more than fifty percent (50%) of the combined voting
power of the voting securities of which are owned by stockholders of the Company in substantially
the same proportions as their ownership of the outstanding voting securities of the Company
immediately prior to such sale, lease, license or other disposition; or

 

 

               (iv) over a twelve month period, individuals who, on the Effective Date, are members of the
Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members
of the Board; provided, however, that if the appointment or election (or nomination for election)
of any new Board member was approved or recommended by a majority vote of the members of the
Incumbent Board then still in office, such new member shall, for purposes of the Plan, be
considered as a member of the Incumbent Board.

               For avoidance of doubt, the term Change in Control shall not include a sale of assets, merger
or other transaction effected exclusively for the purpose of changing the domicile of the Company.

     7. Remedies. Each of the parties to this Agreement will be entitled to enforce its rights
under this Agreement specifically, to recover damages by reason of any breach of any provision of
this Agreement and to exercise all other rights existing in its favor. The parties hereto agree
and acknowledge that money damages may not be an adequate remedy for any breach of the provisions
of this Agreement and that any party may in its sole discretion apply to any court of law or equity
of competent jurisdiction in accordance with Section 13 for injunctive relief in order to enforce
or prevent any violations of the provisions of this Agreement.

     8. Attorney Fees. If any arbitration proceeding or action at law or in equity, including any
action for declaratory or injunctive relief, is brought which arises out of this Agreement or the
termination of Executive’s employment, or which seeks to enforce or interpret this Agreement or to
seek damages for its breach, the prevailing party shall be entitled to recover reasonable attorney
fees from the non-prevailing party, which fees may be set by the court or arbitrator in the trial
of such action, or may be enforced in a separate action brought for that purpose, and which fees
shall be in addition to any other relief which may be awarded.

     9. Assignment. This Agreement is personal to Executive and may not be assigned in any way by
Executive without the prior written consent of the Company. This Agreement shall not be assignable
or delegable by the Company. Any attempted assignment by Executive or the Company shall be void.
Notwithstanding the preceding two sentences, this Agreement may be assigned or delegated by the
Company to any parent company, subsidiary, successor or affiliate (where such affiliate is at least
51% owned by the Company) of the Company. The rights and, obligations under this Agreement shall
inure to the benefit of and shall be binding upon the heirs, legatees, administrators and personal
representatives of Executive and upon the successors, affiliates, representatives and assigns of
the Company.

     10. Severability and Reformation. The parties hereto intend all provisions of this Agreement
to be enforced to the fullest extent permitted by law, and are intended to be limited to the extent
necessary so that they will not render this Agreement illegal, invalid, or unenforceable under
present or future law. If any provision of this Agreement or any application thereof shall be held
to be invalid, illegal or unenforceable, the validity, legality and enforceability of such
provision shall be fully severable, and this Agreement shall be construed and enforced as if such
illegal, invalid, or unenforceable provision were never a part hereof and the remaining provisions
shall remain in full force and effect and shall not be affected by the illegal, invalid, or
unenforceable provision or by its severance.

 

 

     11. Notices. All notices and other communications required or permitted to be given hereunder
shall be in writing and shall be deemed to have been duly given if delivered personally, mailed by
certified mail (return receipt requested) or sent by overnight delivery service, cable, telegram,
facsimile transmission or telex to the parties at the following addresses or at such other
addresses as shall be specified by the parties by like notice:

If to the Company:

7625 Smetana Lane

Eden Prairie, MN 55344

Attention: Chief Executive Officer

If to the Executive:

Brian P. Bell

c/o Compellent Technologies, Inc.

7625 Smetana Lane

Eden Prairie, MN 55344

Notice so given shall, in the case of notice so given by mail, be deemed to be given and received
on the fourth calendar day after posting, in the case of notice so given by overnight delivery
service, on the date of actual delivery and, in the case of notice so given by cable, telegram,
facsimile transmission, telex or personal delivery, on the date of actual transmission or, as the
case may be, personal delivery.

     12. Further Actions. Whether or not specifically required under the terms of this Agreement,
each party hereto shall execute and deliver such documents and take such further actions as shall
be necessary in order for such party to perform all of his or its obligations specified herein or
reasonably implied from the terms hereof.

     13. Governing Law and Venue. This Agreement is to be governed by and construed in accordance
with the laws of the State of Minnesota without giving effect to any choice or conflict of law
provision or rule that would cause the application of laws of any jurisdiction other than the state
of Minnesota. The parties agree that any dispute concerning this Agreement is to be brought in the
District Court in Hennepin County, Minnesota and consent to jurisdiction and venue therein.

     14. Term of Employment and Amendment. This Agreement will automatically terminate on the
earlier of (i) February 3, 2012 if no Change in Control has occurred by that date and (ii) a
termination of the Executive’s employment other than under the circumstances described in Section
6. If a Change in Control has occurred by that date, this Agreement will terminate on the date
that is eighteen (18) months and one (1) day after the effective date of the Change in Control;
provided, however, that no such termination shall affect the right to any earned but unpaid benefit
of the Executive whose termination date has occurred prior to such date, and such unpaid benefit
rights shall continue to be governed by the terms of this Agreement. The terms of this Agreement
may be renewed by mutual agreement of the parties hereto on or before
February 3, 2012. This
Agreement may not otherwise be modified, amended or terminated other than in writing signed by both
parties hereto.

 

 

     15. Entire Agreement. This Agreement contains the entire understanding and agreement between
the parties, except as otherwise specified herein, and supersedes any other agreement between
Executive and the Company, whether oral or in writing, with respect to the subject matter hereof;
provided, however, that nothing herein shall supersede the acceleration provisions of any stock
option agreement by and between the Executive and the Company pursuant to the Company’s 2002 Stock
Option Plan, as amended (as the Executive shall be entitled to such acceleration benefits as well
as the acceleration benefits contained in Section 6(A)(iii) hereof with regard to such Prior Stock
Option Grants).

     16. No Waiver. No term or condition of this Agreement shall be deemed to have been waived,
except by a statement in writing signed by the party against whom enforcement of the waiver is
sought. Any written waiver shall not be deemed a continuing waiver unless specifically stated,
shall operate only as to the specific term or condition waived, and shall not constitute a waiver
of such term or condition for the future or as to any act other than that specifically waived.

     17. Counterparts. This Agreement may be executed in counterparts, with the same effect as if
both parties had signed the same document. All such counterparts shall be deemed an original,
shall be construed together and shall constitute one and the same instrument.

[signature page follows]

 

 

     In Witness Whereof, the parties have executed this Agreement as of the date first
above written.

THE COMPANY:

	 	 	 	 	 
	Compellent Technologies, Inc.	 	 
	 
	 	 	 	 
	By

	 	/s/ Philip E. Soran
 

President and CEO
	 	 
	 
	 	 	 	 
	EXECUTIVE:	 	 
	 
	 	 	 	 
	/s/ Brian P. Bell	 	 
	 	 	 
	Brian P. Bell	 	 

 

 

SCHEDULE 1

Position and Duties of Executive

Position:

Executive is employed in the following position with the Company: Vice President, Worldwide Sales.

Duties:

Executive shall have the following duties: Overall management of global sales.

 

 

SCHEDULE 2

Compensation

Base Salary:

Executive shall receive an annual Base Salary made by mutual agreement of Executive and
the Company. The Base Salary shall be subject to all appropriate federal and state withholding
taxes and shall be payable on the Company’s regular payroll schedule, which currently is a
semi-monthly basis in twenty-six (26) equal installments per year.

Benefits:

Executive shall be eligible to participate in all benefit programs and plans that the Company
provides to its key management employees consistent with the policies and procedures of the
Company.

Bonus:

Executive shall be entitled to participate in a mutually agreed upon yearly Bonus Program, as in
effect from time to time, at the level determined by the Board.

Vacation:

Executive shall be entitled to accrue vacation days in accordance with the Company’s general
vacation accrual policy, to be taken with due observance of the interests of the Company. Upon
termination of this Agreement during a calendar year, compensation for vacation not used will be
calculated and compensated for on a pro rata basis. Executive shall also be entitled to such
holidays as are typically observed by the Company.

Reimbursement of Expenses:

The Company recognizes that Executive may incur legitimate business expenses in the course of
rendering services to the Company. Accordingly, the Company shall reimburse Executive for
reasonable business expenses to the extent and on the terms provided in the Company’s policies,
provided, however, that Executive shall not be reimbursed for any such expense that is not
substantiated, to the Company’s reasonable satisfaction, by way of invoice or other pertinent
documentation or information.

 

 

SCHEDULE 3

PROPRIETARY AGREEMENT

 

 

COMPELLENT TECHNOLOGIES, INC.

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

In consideration of my employment or the continuation of my employment with Compellent
Technologies, Inc., (the “Company”), and of other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, I agree that:

     1. Definitions.

(a) The term “Company” shall include any subsidiary, parent or other affiliate of Company,
subsidiaries of the parent company, any holding company related to Company or its parent and
any subsidiaries thereto.

(b) The term “Proprietary Information” shall include any and all information, that has
commercial value in the business in which the Company is or may become engaged and which is not
generally known to others, including, trade secrets, research, processes, structures, formulae,
data and know-how, improvements, inventions, code, computer software and programs, product
concepts, techniques, business and marketing plans, strategies, financial statements and
forecasts, customer lists and information about the Company’s employees, clients, consultants or
licensees.

          2. Ownership, Nondisclosure, and Protection of Proprietary Information. — All
Proprietary Information shall be the sole property of the Company and its assigns. Except as may
be necessary in the performance of my duties as an employee and only for the benefit of the
Company, I will keep in confidence and will not, during my employment by the Company or any time
thereafter, without the prior written consent of the Company’s President, use, publish, disseminate
or otherwise disclose any Proprietary Information of the Company, including the information of
others provided to the Company with restrictions on its use or further disclosure.

          3. Delivery of Documents and Data. In the event of the termination of my employment
by the Company or by me for any reason, I will deliver to the Company all documents, data, and
information of any nature pertaining to my work with the Company, I will not take with me or
deliver to anyone else any documents, data and information (or any reproduction) of any description
containing or pertaining to any Proprietary Information and I will sign and deliver the
“Termination Certification”, attached as Exhibit 2, to the Company.

          4. Disclosure of Inventions and other Information. I will promptly and fully disclose
and describe to the Company, all products, improvements, inventions, designs, ideas, works of
authorship or copyrightable works, discoveries, trademarks, trade secrets, formulae, processes,
techniques, know-how, and data, (collectively hereinafter called “Inventions”), whether or not
patentable, made or conceived or reduced to practice or learned by me, either alone or jointly with
others, during the period of my employment (whether or not during normal working hours) that are
related to or useful in the actual or anticipated business of the Company, or result from

 

 

tasks assigned me by the Company or result from use of premises or equipment owned, leased, or
contracted for by the Company.

          5. Assignment of and Assistance on Inventions.

(a) I hereby assign to the Company or to its nominee, the sole and exclusive ownership of
all my rights to such Inventions and to applications for letters patent, copyright
registrations and other associated rights in all countries.

(b) I further agree to assist the Company, at the Company’s expense, to apply for, obtain
and vest in the name of the Company or its nominee, letters patent, copyrights or other
analogous protection in any country throughout the world and any associated renewal or
restoration documents, including the execution of any documents and to do such other acts as
may be necessary in the opinion of the Company to preserve its rights against forfeiture,
revocation, abandonment or loss.

(c) This Agreement does not apply to an Invention for which no equipment, supplies,
facility, or trade secret information of the Company was used and which was developed
entirely on my own time, and (1) which does not relate (a) directly to the business of the
Company or (b) to the Company’s actual or demonstrably anticipated research or development,
or (2) which does not result from any work I perform for the Company.

(d) In the event the Company is unable, after reasonable effort, to secure my signature on
any patent, copyright or other analogous protection relating to an Invention, whether
because of my physical or mental incapacity or for any other reason whatsoever, I hereby
irrevocably designate and appoint the Company and its duly authorized officers and agents as
my agent and attorney-in-fact, to act for and in my behalf and stead to execute and file any
such application or applications and to do all other lawfully permitted acts to further the
prosecution and issuance of letters patent, copyright or other analogous protection thereon
with the same legal force and effect as if executed by me. My obligation to assist the
Company in obtaining and enforcing patents and copyrights for such Inventions in any and all
countries shall continue beyond the termination of my employment, for whatever cause, but
the Company shall compensate me at a reasonable rate after such termination for time
actually spent by me at the Company’s request on such assistance.

(e) I acknowledge that all original works of authorship which are made by me (solely or
jointly with others) within the scope of my employment and which are protectable by
copyright are being created as “works made for hire,” as that term is defined in the United
States Copyright Act (17 U.S.C. § 101). If such laws are inapplicable or in the event that
such works, or any part thereof, are determined by the Copyright Office or a court of
competent jurisdiction not to be works made for hire under the United States copyright laws,
this Agreement shall operate as an irrevocable and unconditional assignment by me to the
Company of all of my right, title and interest (including, without limitation all rights in
and to the copyrights throughout the world, including the right to

 

 

prepare derivative works and the right to all renewals and extensions) in the works for the
copyright term(s).

          6. No Breach of Duty. I represent that my performance of all the terms of this
Agreement and as an employee of the Company does not, and to the best of my present knowledge and
belief will not, breach any agreement or duty to keep in confidence proprietary information
acquired by me in confidence or in trust prior to my employment by the Company. I have not entered
into, and I agree I will not enter into, any agreement either written or oral in conflict herewith.
I am not at the present time restricted from being employed by the Company or entering into this
Agreement.

          7. No Prior Employer or Third Party Property. I acknowledge that Company does not
desire to receive any proprietary information in breach of my obligation to others and, I agree
that I will not disclose to Company or use in the performance of my duties for Company, any
proprietary information, materials or documents of a former employer or other third party that are
not generally available to the public without accompanying written authorization from such party.
I further acknowledge that I am not to breach any obligation of confidentiality or duty that I have
to former employers.

          8. Non-Competition.

(a) During the term of this Agreement and for a period of one (1) year after the termination of
this Agreement for any reason (or for such a lesser period of time as may be determined by a court
of law or equity to be a reasonable limitation), I shall not in any manner or capacity, including
without limitation as a proprietor, principal, agent, partner, officer, director, stockholder,
employee, consultant, or otherwise:

(i) Solicit, directly or indirectly, any director, officer or employee of Company to
discontinue that individual’s status of employment with Company, nor to become employed in
any activity similar to or competitive with the business of Company being conducted at the
time of termination of this Agreement within the territories in which Company conducts its
business operations;

(ii) Directly or indirectly solicit for the sale of or sell to any customer or prospective
customer with whom I had contact or for whom I had direct or indirect responsibility at any
time during my last year of employment with the Company any services, products, or processes
that are similar to or compete with the services, products or services then manufactured or
sold by the Company; except for those customers I have had a significant relationship with
prior to my entering into this agreement with Compellent and as
agreed to by Compellent. 

(iii) Solicit, request, advise, or induce any current or potential customer, supplier, or
other business contact of the Company to cancel, curtail, or otherwise adversely change its
relationship with the Company; or

 

 

(iv) Enter into or engage in, directly or indirectly, any software development or other
business that develops, manufactures, markets, sells, or promotes any services, products, or
processes which are similar to or competitive with any services, products, or processes of
the Company with which I worked at any time during the last year of my employment with the
Company or any services, products, or processes then in existence or under development at
the Company about which I shall have acquired Proprietary Information at any time during my
last year of employment with the Company.

     (b) Nothing herein shall prohibit me from holding shares or stock or warrants or debentures
in a company listed on a nationally or internationally recognized stock exchange, if I own no
more than five percent (5%) of such company’s shares entitled to vote at a meeting of its
shareholders.

          9. Remedies for Breach. I agree that any breach of this Agreement by me would cause
irreparable damage to the Company and that the remedy at law of Company will be inadequate. In the
event of such breach, the Company shall have, in addition to any and all remedies of law, the right
to an injunction, specific performance, or other equitable relief to prevent or redress the
violation of my obligations hereunder. If the provisions for the duration of the scope of or any
business activity covered by the agreement exceeds that which is determined to be valid and
enforceable under applicable law, such provision shall be construed to cover only that duration,
scope or activity that is determined to be valid and enforceable. I hereby acknowledge that such
provision shall be given the construction which renders the provisions valid and enforceable to the
maximum extent, not exceeding their express terms, possible under applicable law.

          10. Effective Date. This Agreement shall be effective as of the first day of my
employment by the Company, or (if my employment has already commenced), as of the date I sign this
Agreement.

          11. Governing Law and Venue. This Agreement is to be governed by and construed in
accordance with the laws of the State of Minnesota, without regard to principles of conflicts of
law.

          12. Entire Agreement. This Agreement replaces and supercedes any and all prior
written or oral agreement entered into between the parties relating to the subject matter hereof.

          13. Assignability. This Agreement shall be binding upon me, my heirs, executors,
assigns, and administrators, shall inure to the benefit of the Company, its successors, and
assigns, and shall survive the termination of my employment by the Company, regardless of the
manner of such termination.

          14. Severability. In the event that a court of competent jurisdiction declares a
provision of this agreement to be invalid for any reason, the remaining provisions shall not be
affected and shall remain enforceable. Further, such provision shall be reformed and construed

 

 

to the extent permitted by law so that it would be valid, legal and enforceable to the maximum
extent possible.

          15. Prior Inventions. All improvements, inventions, designs, ideas, works of
authorship, copyrightable works, discoveries, trademarks, copyrights, trade secrets, formulae,
processes, techniques, know-how and data relevant to the subject matter of my employment by the
Company which have been made or conceived or first reduced to practice by me alone or jointly with
others prior to my engagement by the Company shall be deemed “Inventions” for the purposes of this
Agreement except as set forth below:

          List of Pre Compellent Technologies, Inc. Employment Inventions and Writings

This Agreement does not apply to inventions or improvements in which you have an interest which
were made prior to your employment by the Company. To clearly identify any such items, list them
below by titles and approximate dates. Attach additional sheets if necessary.

	 	 	 	 	 
	Title

	 	 	 	Date
	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

Accepted by Employee:

	 	 	 	 	 
	/s/ Brian P. Bell

	 	 	 	07/09/2003
	 

	 	 	 	 
	Signature of Employee

	 	 	 	Date
	 
	 	 	 	 
	Brian P. Bell
	 	 	 	 
	 

	 	 	 	 
	Type or Print Name

	 	 	 	 

	 	 	 	 	 	 	 
	Accepted by Compellent Technologies, Inc.:	 	 	 	 
	 
	 	 	 	 	 	 
	By: Philip Soran

	 	/s/ Philip E. Soran
	 	 	 	07/18/2003
	 

	 	 
	 	 	 	 
	Its: President/CEO

	 	 	 	 	 	     Date

 

 

Attachment 1

TERMINATION CERTIFICATION

     1. This is to certify that I do not have in my possession, nor have I failed to return, any
devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings,
blueprints, sketches, materials, equipment, other documents or property, or reproductions of any
aforementioned items belonging to Compellent Technologies, Inc., any subsidiary, parent or other
affiliate of Company, subsidiaries of the parent company, any holding company related to Company or
its parent and any subsidiaries thereto (collectively, the “Company”).

     2. I further certify that I have complied with all the terms of the Company’s Proprietary
Information and Inventions Agreement signed by me, including the reporting of any Inventions and
original works of authorship (as defined therein), conceived or made by me (solely or jointly with
others) covered by said Agreement.

     3. I further agree that I will preserve as confidential, all Proprietary Information as
defined in the Proprietary Information and Inventions Agreement, and hereby assign to the Company
all rights in inventions, copyrights, trade secrets or trademarks, servicemarks or trademarks,
consistent with said Agreement.

     4. I acknowledge and agree that, I have complied with, and will continue to comply with, after
the termination of my employment by the Company, all other provisions contained in the Proprietary
Information and Inventions Agreement.

Accepted by Employee:

	 	 	 
	 
	 

	 	 
	Signature of Employee

	 	Date
	 
	 
	 	 
	 

	 	 
	Type or Print Name

	 	Social Security Number

	 	 	 	 	 	 	 
	Accepted by Compellent Technologies, Inc.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Date
	 
	 	 	 	 	 	 
	Its:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

 

 

SCHEDULE 4

RELEASE AGREEMENT

     I understand that this Release, together with the rights to severance payments and benefits
set forth in the employment agreement between the Company and me dated June 16, 2008 (the
“Employment Agreement”) to which this Release is attached, constitutes the complete, final and
exclusive embodiment of the entire agreement between the Company, affiliates of the Company and me
with regard to the subject matter hereof. I am not relying on any promise or representation by the
Company that is not expressly stated therein. Certain capitalized terms used in this Release are
defined in the Employment Agreement.

     I hereby confirm my obligations under my Proprietary Agreement with the Company.

     Except as otherwise set forth in this Release, I hereby generally and completely release the
Company and its current and former directors, officers, employees, stockholders, shareholders,
partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers,
affiliates, and assigns (collectively, the “Released Parties”) from any and all claims,
liabilities and obligations, both known and unknown, that arise out of or are in any way related
to events, acts, conduct, or omissions occurring prior to my signing this Release (collectively,
the “Released Claims”). The Released Claims include, but are not limited to: (1) all claims
arising out of or in any way related to my employment with the Company or its affiliates, or the
termination of that employment; (2) all claims related to my compensation or benefits, including
salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe
benefits, stock, stock options, or any other ownership interests in the Company or its affiliates;
(3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of
good faith and fair dealing; (4) all tort claims, including claims for fraud, defamation,
emotional distress, and discharge in violation of public policy; and (5) all federal, state, and
local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’
fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal
Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967
(as amended) (“ADEA”), the federal Employee Retirement Income Security Act of 1974 (as amended),
and the California Fair Employment and Housing Act (as amended). Notwithstanding the foregoing,
the following are not included in the Released Claims (the “Excluded Claims”): (1) any rights or
claims for indemnification I may have pursuant to any written indemnification agreement with the
Company to which I am a party, the charter, bylaws, or operating agreements of the Company, or
under applicable law; or (2) any rights which are not waivable as a matter of law. In addition,
nothing in this Release prevents me from filing, cooperating with, or participating in any
proceeding before the Equal Employment Opportunity Commission or the Department of Labor, except
that I hereby waive my right to any monetary benefits in connection with any such claim, charge or
proceeding. I hereby represent and warrant that, other than the Excluded Claims, I am not aware
of any claims I have or might have against any of the Released Parties that are not included in
the Released Claims.

     I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have
under the ADEA. I also acknowledge that the consideration given for the Released

 

 

Claims is in addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) the
Released Claims do not apply to any rights or claims that arise after the date I sign this Release;
(b) I should consult with an attorney prior to signing this Release (although I may choose
voluntarily not to do so); (c) I have twenty-one (21) days to consider this Release (although I may
choose to voluntarily to sign it sooner); (d) I have seven (7) days following the date I sign this
Release to revoke the Release by providing written notice to an officer of the Company; and (e) the
Release will not be effective until the date upon which the revocation period has expired
unexercised, which will be the eighth day after I sign this Release (“Effective Date”).

     I hereby represent that I have been paid all compensation owed and for all hours worked, I
have received all the leave and leave benefits and protections for which I am eligible, and I have
not suffered any on-the-job injury for which I have not already filed a workers’ compensation
claim.

     I acknowledge that to become effective, I must sign and return this Release to the Company so
that it is received not later than twenty-one (21) days following the date it is provided to me,
and I must not revoke it thereafter.

	 	 	 	 	 
	 	 	Employee
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

 

 

Claims is in addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) the
Released Claims do not apply to any rights or claims that arise after the date I sign this Release;
(b) I should consult with an attorney prior to signing this Release (although I may choose
voluntarily not to do so); (c) I have twenty-one (21) days to consider this Release (although I may
choose to voluntarily to sign it sooner); (d) I have seven (7) days following the date I sign this
Release to revoke the Release by providing written notice to an officer of the Company; and (e) the
Release will not be effective until the date upon which the revocation period has expired
unexercised, which will be the eighth day after I sign this Release (“Effective Date”).

     I hereby represent that I have been paid all compensation owed and for all hours worked, I
have received all the leave and leave benefits and protections for which I am eligible, and I have
not suffered any on-the-job injury for which I have not already filed a workers’ compensation
claim.

     I acknowledge that to become effective, I must sign and return this Release to the Company so
that it is received not later than twenty-one (21) days following the date it is provided to me,
and I must not revoke it thereafter.

	 	 	 	 	 
	 	 	Employee
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:exv10w1

Exhibit 10.1

Execution Version

 

CREDIT AGREEMENT

dated as of January 29, 2010

Among

CARBO CERAMICS INC.

as Borrower,

WELLS FARGO BANK, NATIONAL ASSOCIATION

as Administrative Agent, Issuing Lender and Swing Line Lender,

and

THE LENDERS NAMED HEREIN

as Lenders

$10,000,000

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

As Sole Lead Arranger

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 1 DEFINITIONS AND ACCOUNTING TERMS	 	 	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Section 1.1
	 	 	 	Certain Defined Terms
	 	 	 	 	1	 
	 

	 	Section 1.2
	 	 	 	Computation of Time Periods
	 	 	 	 	16	 
	 

	 	Section 1.3
	 	 	 	Accounting Terms; Changes in GAAP
	 	 	 	 	16	 
	 

	 	Section 1.4
	 	 	 	Classes and Types of Advances
	 	 	 	 	17	 
	 

	 	Section 1.5
	 	 	 	Miscellaneous
	 	 	 	 	17	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 2 CREDIT FACILITIES	 	 	 	 	17	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Section 2.1
	 	 	 	Revolving Commitments
	 	 	 	 	17	 
	 

	 	Section 2.2
	 	 	 	Letters of Credit
	 	 	 	 	18	 
	 

	 	Section 2.3
	 	 	 	Swing Line Advances
	 	 	 	 	24	 
	 

	 	Section 2.4
	 	 	 	Advances
	 	 	 	 	26	 
	 

	 	Section 2.5
	 	 	 	Prepayments
	 	 	 	 	28	 
	 

	 	Section 2.6
	 	 	 	Repayment
	 	 	 	 	29	 
	 

	 	Section 2.7
	 	 	 	Fees
	 	 	 	 	29	 
	 

	 	Section 2.8
	 	 	 	Interest
	 	 	 	 	30	 
	 

	 	Section 2.9
	 	 	 	Illegality
	 	 	 	 	31	 
	 

	 	Section 2.10
	 	 	 	Breakage Costs
	 	 	 	 	31	 
	 

	 	Section 2.11
	 	 	 	Increased Costs
	 	 	 	 	32	 
	 

	 	Section 2.12
	 	 	 	Payments and Computations
	 	 	 	 	33	 
	 

	 	Section 2.13
	 	 	 	Taxes
	 	 	 	 	34	 
	 

	 	Section 2.14
	 	 	 	Replacement of Lenders
	 	 	 	 	36	 
	 

	 	Section 2.15
	 	 	 	Defaulting Lender Cure
	 	 	 	 	37	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 3 CONDITIONS OF EFFECTIVENESS	 	 	 	 	37	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Section 3.1
	 	 	 	Conditions to Effectiveness
	 	 	 	 	37	 
	 

	 	Section 3.2
	 	 	 	Conditions Precedent to Each Borrowing and to Each Issuance, Extension
or Renewal of a Letter of Credit 	 	 	 	 	39	 
	 

	 	Section 3.3
	 	 	 	Determinations Under Sections 3.1 and 3.2
	 	 	 	 	40	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES	 	 	 	 	40	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Section 4.1
	 	 	 	Organization
	 	 	 	 	40	 
	 

	 	Section 4.2
	 	 	 	Authorization
	 	 	 	 	40	 
	 

	 	Section 4.3
	 	 	 	Enforceability
	 	 	 	 	40	 
	 

	 	Section 4.4
	 	 	 	Financial Condition
	 	 	 	 	41	 
	 

	 	Section 4.5
	 	 	 	Ownership and Liens; Real Property
	 	 	 	 	41	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Section 4.6
	 	 	 	True and Complete Disclosure
	 	 	 	 	41	 
	 

	 	Section 4.7
	 	 	 	Litigation
	 	 	 	 	41	 
	 

	 	Section 4.8
	 	 	 	Compliance with Agreements
	 	 	 	 	41	 
	 

	 	Section 4.9
	 	 	 	Pension Plans
	 	 	 	 	42	 
	 

	 	Section 4.10
	 	 	 	Environmental Condition
	 	 	 	 	42	 
	 

	 	Section 4.11
	 	 	 	Subsidiaries
	 	 	 	 	43	 
	 

	 	Section 4.12
	 	 	 	Investment Company Act
	 	 	 	 	43	 
	 

	 	Section 4.13
	 	 	 	Taxes
	 	 	 	 	43	 
	 

	 	Section 4.14
	 	 	 	Permits, Licenses, etc
	 	 	 	 	43	 
	 

	 	Section 4.15
	 	 	 	Use of Proceeds
	 	 	 	 	44	 
	 

	 	Section 4.16
	 	 	 	Condition of Property; Casualties
	 	 	 	 	44	 
	 

	 	Section 4.17
	 	 	 	Insurance
	 	 	 	 	44	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 5 AFFIRMATIVE COVENANTS	 	 	 	 	44	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Section 5.1
	 	 	 	Organization
	 	 	 	 	44	 
	 

	 	Section 5.2
	 	 	 	Reporting
	 	 	 	 	44	 
	 

	 	Section 5.3
	 	 	 	Insurance
	 	 	 	 	47	 
	 

	 	Section 5.4
	 	 	 	Compliance with Laws
	 	 	 	 	47	 
	 

	 	Section 5.5
	 	 	 	Taxes
	 	 	 	 	47	 
	 

	 	Section 5.6
	 	 	 	Material Domestic Subsidiaries
	 	 	 	 	48	 
	 

	 	Section 5.7
	 	 	 	Records; Inspection
	 	 	 	 	48	 
	 

	 	Section 5.8
	 	 	 	Maintenance of Property
	 	 	 	 	48	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 6 NEGATIVE COVENANTS	 	 	 	 	48	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Section 6.1
	 	 	 	Debt
	 	 	 	 	48	 
	 

	 	Section 6.2
	 	 	 	Liens
	 	 	 	 	49	 
	 

	 	Section 6.3
	 	 	 	Investments
	 	 	 	 	50	 
	 

	 	Section 6.4
	 	 	 	Acquisitions
	 	 	 	 	50	 
	 

	 	Section 6.5
	 	 	 	Agreements Restricting Liens
	 	 	 	 	51	 
	 

	 	Section 6.6
	 	 	 	Use of Proceeds; Use of Letters of Credit
	 	 	 	 	51	 
	 

	 	Section 6.7
	 	 	 	Corporate Actions
	 	 	 	 	51	 
	 

	 	Section 6.8
	 	 	 	Sale of Assets
	 	 	 	 	52	 
	 

	 	Section 6.9
	 	 	 	Restricted Payments
	 	 	 	 	52	 
	 

	 	Section 6.10
	 	 	 	Affiliate Transactions
	 	 	 	 	52	 
	 

	 	Section 6.11
	 	 	 	Line of Business
	 	 	 	 	52	 

-2-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Section 6.12
	 	 	 	Hazardous Materials
	 	 	 	 	52	 
	 

	 	Section 6.13
	 	 	 	Compliance with ERISA
	 	 	 	 	52	 
	 

	 	Section 6.14
	 	 	 	Limitation on Hedging
	 	 	 	 	53	 
	 

	 	Section 6.15
	 	 	 	Minimum Tangible Net Worth
	 	 	 	 	53	 
	 

	 	Section 6.16
	 	 	 	Leverage Ratio
	 	 	 	 	53	 
	 

	 	Section 6.17
	 	 	 	Fixed Charge Coverage Ratio
	 	 	 	 	53	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 7 DEFAULT AND REMEDIES	 	 	 	 	54	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Section 7.1
	 	 	 	Events of Default
	 	 	 	 	54	 
	 

	 	Section 7.2
	 	 	 	Optional Acceleration of Maturity
	 	 	 	 	55	 
	 

	 	Section 7.3
	 	 	 	Automatic Acceleration of Maturity
	 	 	 	 	56	 
	 

	 	Section 7.4
	 	 	 	Set-off
	 	 	 	 	56	 
	 

	 	Section 7.5
	 	 	 	Remedies Cumulative, No Waiver
	 	 	 	 	56	 
	 

	 	Section 7.6
	 	 	 	Application of Payments
	 	 	 	 	57	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 8 THE ADMINISTRATIVE AGENT	 	 	 	 	57	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Section 8.1
	 	 	 	Appointment, Powers, and Immunities
	 	 	 	 	57	 
	 

	 	Section 8.2
	 	 	 	Reliance by Administrative Agent
	 	 	 	 	58	 
	 

	 	Section 8.3
	 	 	 	Defaults
	 	 	 	 	58	 
	 

	 	Section 8.4
	 	 	 	Rights as Lender
	 	 	 	 	58	 
	 

	 	Section 8.5
	 	 	 	Indemnification
	 	 	 	 	59	 
	 

	 	Section 8.6
	 	 	 	Non-Reliance on Administrative Agent and Other Lenders
	 	 	 	 	60	 
	 

	 	Section 8.7
	 	 	 	Resignation of Administrative Agent and Issuing Lender
	 	 	 	 	60	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 9 MISCELLANEOUS	 	 	 	 	61	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Section 9.1
	 	 	 	Costs and Expenses
	 	 	 	 	61	 
	 

	 	Section 9.2
	 	 	 	Indemnification; Waiver of Damages
	 	 	 	 	61	 
	 

	 	Section 9.3
	 	 	 	Waivers and Amendments
	 	 	 	 	62	 
	 

	 	Section 9.4
	 	 	 	Severability
	 	 	 	 	63	 
	 

	 	Section 9.5
	 	 	 	Survival of Representations and Obligations
	 	 	 	 	63	 
	 

	 	Section 9.6
	 	 	 	Binding Effect
	 	 	 	 	63	 
	 

	 	Section 9.7
	 	 	 	Lender Assignments and Participations
	 	 	 	 	64	 
	 

	 	Section 9.8
	 	 	 	Confidentiality
	 	 	 	 	65	 
	 

	 	Section 9.9
	 	 	 	Notices, Etc
	 	 	 	 	65	 
	 

	 	Section 9.10
	 	 	 	Business Loans
	 	 	 	 	66	 
	 

	 	Section 9.11
	 	 	 	Usury Not Intended
	 	 	 	 	66	 

-3-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Section 9.12
	 	 	 	Usury Recapture
	 	 	 	 	66	 
	 

	 	Section 9.13
	 	 	 	Governing Law
	 	 	 	 	67	 
	 

	 	Section 9.14
	 	 	 	Submission to Jurisdiction
	 	 	 	 	67	 
	 

	 	Section 9.15
	 	 	 	Execution in Counterparts
	 	 	 	 	67	 
	 

	 	Section 9.16
	 	 	 	Waiver of Jury
	 	 	 	 	67	 
	 

	 	Section 9.17
	 	 	 	USA Patriot Act
	 	 	 	 	67	 

	 	 	 
	EXHIBITS:
	 	 
	 
	 	 
	Exhibit A

	 	— Form of Assignment and Acceptance
	Exhibit B

	 	— Form of Compliance Certificate
	Exhibit C

	 	— Form of Guaranty
	Exhibit D

	 	— Form of Notice of Borrowing
	Exhibit E

	 	— Form of Notice of Continuation or Conversion
	Exhibit F-1

	 	— Form of Revolving Note
	Exhibit F-2

	 	— Form of Swing Line Note
	 
	 	 
	SCHEDULES:
	 	 
	 
	 	 
	Schedule I

	 	— Pricing Schedule
	Schedule II

	 	— Commitments, Contact Information
	Schedule 4.1

	 	— Organizational Information
	Schedule 4.7

	 	— Litigation
	Schedule 4.10

	 	— Environmental Conditions
	Schedule 4.11

	 	— Subsidiaries
	Schedule 6.1

	 	— Existing Debt

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CREDIT AGREEMENT

     This CREDIT AGREEMENT dated as of January 29, 2010 (the “Agreement”) is among (a) CARBO
Ceramics Inc., a Delaware corporation (the “Borrower”), (b) the Lenders (as defined below), and (c)
Wells Fargo Bank, National Association as Swing Line Lender (as defined below), Issuing Lender (as
defined below), and as Administrative Agent (as defined below) for the Lenders.

     In consideration of the mutual covenants and agreements herein contained, the parties hereto
hereby agree as follows:

ARTICLE 1

DEFINITIONS AND ACCOUNTING TERMS

     Section 1.1 Certain Defined Terms. 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 Issuing Lender, the
Swingline Lender and the Lenders, (b) is superior to all other security interests (other than the
Permitted Liens), (c) secures the Obligations, and (d) is perfected and enforceable against the
Credit Party which created such security interest.

     “Acquisition” means the purchase by any Credit Party of any business, including the
purchase of associated assets or operations or the Equity Interests of a Person.

     “Adjusted Base Rate” means, for any day, the fluctuating rate per annum of interest
equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in
effect on such day plus 1.50%, and (c) a rate determined by the Administrative Agent to be the
Daily One-Month LIBOR plus 1.50%. Any change in the Adjusted Base Rate due to a change in the
Prime Rate, Daily One-Month LIBOR or the Federal Funds Rate shall be effective on the effective
date of such change in the Prime Rate, Daily One-Month LIBOR or the Federal Funds Rate.

     “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.

     “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

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

     “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” is defined in the introductory paragraph hereof.

 

 

     “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 Schedule I
and subject to further adjustments as set forth in Section 2.8(c).

     “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

     “Asset Sale” means (a) any sale, transfer, or other disposition of any Property by any
Credit Party and (b) any issuance or sale of any Equity Interests of any Subsidiary of the
Borrower, in each case, to any Person other than a Credit Party; provided that, any sale, transfer
or other disposition of Property from one Credit Party to another Credit Party as permitted under
Section 6.8(a) and the sale of inventory in the ordinary course as permitted under Section 6.8(b)
shall not constitute an “Asset Sale” for purposes of this Agreement.

     “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.

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

     “Availability” means, as of a date of determination, an amount equal to (a) the
aggregate Revolving Commitments in effect at such time minus (b) the sum of (i) the
outstanding amount of all Revolving Advances plus (ii) the outstanding amount of all Swing
Line Advances plus (iii) the Letter of Credit Exposure.

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

     “Borrower” means CARBO Ceramics Inc., a Delaware corporation.

     “Borrowing” means a Revolving Borrowing or a Swing Line Borrowing.

     “Business Day” means a day (a) other than a Saturday, Sunday, or other day on which
the Administrative Agent is authorized to close under the laws of, or is in fact closed in,
Houston, Texas, and (b) if the applicable Business Day relates to any LIBOR 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 payments under Capital Leases that are
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 in 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, 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, for its benefit and the ratable benefit of the Issuing Lender, the Swing Line
Lender and the

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Lenders, containing cash deposited pursuant to the terms hereof to be maintained with Wells
Fargo, as depository, in accordance with Section 2.2(h).

     “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 the occurrence of any of the following events:

     (a) the Borrower ceases to own, either directly or indirectly, 100% of the Equity Interest in
any Guarantor other than as a result of transaction permitted under Section 6.7 or Section 6.8;

     (b) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act, but excluding any employee benefit plan of such person or its subsidiaries, any
person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of
any such plan), becomes a “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act, 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 passage of time), directly or
indirectly, of 50% or more of the Equity Interests 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); and

     (c) 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.

     “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority.

     “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.

     “Commitment Fee” means the fees set forth on Schedule I, which are payable in
accordance with Section 2.7(a).

     “Commitments” means, as to any Lender, its Revolving Commitment.

     “Compliance Certificate” means a compliance certificate executed by a Responsible
Officer of the Borrower or such other Person as required by this Agreement in substantially the
same form as Exhibit B.

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     “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, 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 Letters of Credit, the Letter
of Credit Applications, the Guaranties, the Notices of Borrowing, the Notices of Conversion, any
Autoborrow Agreement, the Fee Letter, and each other agreement, instrument, or document executed at
any time in connection with this Agreement.

     “Credit Parties” means the Borrower and the Guarantors.

     “Daily One-Month LIBOR” means, for any day, the rate of interest equal to the LIBO
Rate then in effect for delivery for a one (1) month period.

     “Debt” means, for any Person, without duplication: (a) indebtedness of such Person
for borrowed money, including the face amount of any letters of credit supporting the repayment of
indebtedness for borrowed money issued for the account of such Person; (b) to the extent not
covered under clause (a) above, obligations under letters of credit and agreements relating to the
issuance of letters of credit or acceptance financing, including Letters of Credit; (c) obligations
of such Person evidenced by bonds, debentures, notes or other similar instruments, or upon which
interest payments are customarily made; (d) obligations of such Person under conditional sale or
other title retention agreements relating to any Properties purchased by such Person (other than
customary reservations or retentions of title under agreements with suppliers entered into in the
ordinary course of business); (e) obligations of such Person to pay the deferred purchase price of
property, services, or Acquisitions (including, without limitation, any earn-out obligations,
contingent obligations, or other similar obligations associated with such purchase, and including
obligations that are non-recourse to the credit of such Person but are secured by the assets of
such Person); (f) obligations of such Person as lessee under Capital Leases and obligations of such
Person in respect of synthetic leases (except that the Wilkinson Capital Lease Obligations shall
not constitute Debt for purposes of the calculations for compliance under Sections 6.16 and 6.17);
(g) obligations of such Person under any Hedging Arrangement (except that such obligations shall
not constitute Debt for purposes of the calculations for compliance under Sections 6.16 and 6.17);
(h) obligations of such Person owing in respect of redeemable preferred stock or other preferred
Equity Interest of such Person; (i) the Debt of any partnership or unincorporated joint venture in
which such Person is a general partner or a joint venturer, but only to the extent to which there
is recourse to such Person for the payment of such Debt; (j) obligations of such Person under
direct or indirect guaranties in respect of, and obligations (contingent or otherwise) of such
Person to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect
of, indebtedness or obligations of others of the kinds referred to in clauses (a) through (i)
above; (k) indebtedness or obligations of others of the kinds referred to in clauses (a) through
(j) secured by any Lien on or in respect of any Property of such Person, and (l) all liabilities of
such Person in respect of unfunded vested benefits under any Plan.

     “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 (a) that has failed to fund any portion of the
Advances or participations in Letter of Credit Obligations or Swing Line Advances required to be
funded by it hereunder within one Business Day of the date required to be funded by it hereunder
unless, with the consent of the Administrative Agent and the Borrower (which consent may be
withheld at the sole

-4-

 

discretion of the Administrative Agent and the Borrower), such failure has been cured, (b)
that has indicated to the Administrative Agent that such Lender will not fund any portion of the
Advances or participations in Letter of Credit Obligations or Swing Line Advances required to be
funded by it hereunder, unless, with the consent of the Administrative Agent and the Borrower
(which consent may be withheld at the sole discretion of the Administrative Agent and the
Borrower), such Lender actually funds such Advances or participations, (c) that has otherwise
failed to pay over to the Administrative Agent or any other Lender any other amount required to be
paid by it hereunder within one Business Day of the date when due, unless the subject of a good
faith dispute, or unless, with the consent of the Administrative Agent (which consent may be
withheld at the sole discretion of the Administrative Agent), such failure has been cured, (d) that
the Administrative Agent believes, in good faith, has become a “defaulting lender” under any other
credit facility to which such Lender is a party and has received notice of such belief from the
Administrative Agent unless, with the consent of the Administrative Agent (which consent may be
withheld at the sole discretion of the Administrative Agent), the consequences resulting in such
“defaulting lender” status is no longer in effect, or (e) as to which a Lender Insolvency Event has
occurred and is continuing with respect to such Lender. Any determination that a Lender is a
Defaulting Lender will be made by the Administrative Agent in its sole discretion acting in good
faith.

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

     “Domestic Subsidiary” means any Subsidiary other than a Foreign Subsidiary.

     “EBITDA” means, without duplication, for the Borrower and its Subsidiaries as a
consolidated basis, and 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, Interest Expense, income taxes, depreciation, amortization and such other add-backs
reasonably acceptable to the Administrative Agent; provided that such EBITDA shall be
subject to pro forma adjustments for Acquisitions and Nonordinary Course Asset Sales assuming that
such transactions had occurred on the first day of the determination period, which adjustments
shall be made in accordance with the guidelines for pro forma presentations set forth by the SEC or
in a manner otherwise reasonably acceptable to the Administrative Agent.

     “Effective Date” means the date of this Agreement.

     “Eligible Assignee” means (a) a Lender, (b) any Affiliate of a Lender approved by the
Administrative Agent, (c) any Approved Fund approved by the Administrative Agent, or (d) any other
Person (other than a natural Person) approved by the Administrative Agent and, unless an Event of
Default has occurred and is continuing at the time any assignment is effected in accordance with
Section 9.7, the Borrower, such approval not to be unreasonably withheld or delayed by the
Borrower; provided, however, that (i) any financial institution employing any member of the
board of directors (or comparable board) of any Credit Party shall not qualify as an Eligible
Assignee, (ii) neither the Borrower nor any Affiliate of the Borrower shall qualify as an Eligible
Assignee, and (iii) approval by the Administrative Agent of an Eligible Assignee shall not be
unreasonably withheld, provided however, any disapproval by the Administrative Agent of a Person
that fails to meet any of the following criteria shall not be considered unreasonable: (A) any
commercial bank, savings and loan association or savings bank organized under the laws of the
United States of America, or any state thereof, or any other Person, that has a combined capital
and surplus of less than $100,000,000, (B) any commercial bank or Person organized under the laws
of any other country, or a political subdivision of any such country, which is not a member of the
Organization for Economic Cooperation and Development, or (C) any commercial bank or Person
organized under the laws of any other country, or a political subdivision of any such country,
which is a member of the Organization for Economic Cooperation and Development and has a combined
capital and surplus of less than $100,000,000.

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     “Environment” or “Environmental” shall have the meanings set forth in 42
U.S.C. 9601(8) (1988).

     “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 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 under Environmental Law.

     “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.

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

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

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Existing Debt” means Debt incurred by the Borrower in connection with that certain
Second Amended and Restated Credit Agreement dated as of December 31, 2000, between the Borrower
and Brown Brothers Harriman & Co., as lender.

     “Fair Market Value” means, with respect to any asset (including any Equity Interests
of any Person), the price at which a willing buyer, not an Affiliate of the seller, and a willing
seller who does not have to sell, would agree to purchase and sell such asset, as determined in
good faith by the board of directors or, pursuant to a specific delegation of authority by such
board of directors or a designated senior executive officer, of the Borrower, or the Subsidiary of
the Borrower selling such asset.

     “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

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Funds Rate for such day shall be such rate on such transactions on the next preceding Business
Day as so published on the next succeeding Business Day and (b) if no such rate is so published on
such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate
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 letter dated as of January 29, 2010 between the
Borrower and Wells Fargo.

     “Fixed Charges” means, with respect to any period and with respect to any Person and
without duplication, the sum of (a) Interest Expense for such period plus (b) as of the end of such
period, the current portion of long term Debt, including the current portion of Capital Leases but
excluding the scheduled principal payment of the Revolving Loan due on the Maturity Date plus (c)
all Restricted Payments paid (whether in cash or other property, other than Equity Interests that
are permitted to be issued by the Borrower under this Agreement) during such period.

     “Fixed Charge Coverage Ratio” means, as of each fiscal quarter end, the ratio of (a)
the amount equal to (i) Borrower’s consolidated EBITDA for the four-fiscal quarter period then
ended minus (ii) all federal, state, and local taxes paid in cash or required to be paid in cash
during the four-fiscal quarter period then ended minus (iii) Maintenance Capital Expenditures paid
or required to be paid during for the four-fiscal quarter period then ended to (b) Fixed Charges
for the four-fiscal quarter period then ended.

     “Foreign Subsidiary” means any Subsidiary of Borrower that is a “controlled foreign
corporation” as defined in Section 957 of the Code.

     “Fund” means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its activities.

     “GAAP” means 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.

     “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.

     “Guarantors” means any Person that now or hereafter executes a Guaranty, including (a)
the Borrower, (b) the Subsidiaries of the Borrower listed on Schedule 4.11; and (c) each Material
Domestic Subsidiary or other Subsidiary that becomes a guarantor of all or a portion of the
Obligations and which has entered into either a joinder agreement substantially in the form
attached to the Guaranty or a new Guaranty.

     “Guaranty” means the Guaranty Agreement executed in substantially the same form as
Exhibit C.

     “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, petroleum, petroleum products, radionuclides, and radioactive materials.

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     “Hazardous Waste” means any substance or material regulated or designated as such
pursuant to any 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, and
similar substances and materials.

     “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 Expense” means, for any period and with respect to any Person, total cash
interest expense, letter of credit fees and other fees and expenses incurred by such Person in
connection with any Debt (including but not limited to Debt under this Agreement) for such period
(excluding the arrangement fees and the upfront fees due pursuant to the Fee Letter to the
Administrative Agent and the Lenders on or prior to the Effective Date), whether paid or accrued
(including that attributable to obligations which have been or should be, in accordance with GAAP,
recorded as Capital Leases), including, without limitation, all commissions, discounts, and other
fees and charges owed with respect to letters of credit and bankers’ acceptance financing, fees
owed with respect to the Obligations, and net costs under Hedging Arrangements entered into
addressing interest rates, all as determined in conformity with GAAP.

     “Interest Period” means for each LIBOR Advance comprising part of the same Borrowing,
the period commencing on the date of such LIBOR 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 day following 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, three, or six months, in each case as the Borrower may select,
provided that:

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

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

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

     (d) the Borrower may not select any Interest Period for any Advance which ends after
the Maturity Date.

     “Issuing Lender” means Wells Fargo, in its capacity as the Lender that issues Letters
of Credit for the account of any Credit Party pursuant to the terms of this Agreement.

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     “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.

     “Lender Insolvency Event” means that (a) a Lender or its Parent Company is insolvent,
or is generally unable to pay its debts as they become due, or admits in writing its inability to
pay its debts as they become due, or makes a general assignment for the benefit of its creditors,
or (b) such Lender or its Parent Company is the subject of a bankruptcy, insolvency,
reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator, intervenor
or sequestrator or the like has been appointed for such Lender or its Parent Company, or such
Lender or its Parent Company has taken any action in furtherance of or indicating its consent to or
acquiescence in any such proceeding or appointment.

     “Lenders” means the Persons listed on the signature pages hereto as Lenders, any other
Person that shall have become a Lender hereto pursuant to Section 2.14, and any other Person that
shall have become a Lender hereto pursuant to an Assignment and Assumption, but in any event,
excluding any such Person that ceases to be a party hereto pursuant to an Assignment and
Assumption. Unless the context otherwise requires, the term “Lenders” includes the Swing Line
Lender.

     “Lending Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other office or offices as
a Lender may from time to time notify the Borrower and the Administrative Agent.

     “Letter of Credit” means any standby or commercial letter of credit issued by the
Issuing Lender for the account of a Credit Party pursuant to the terms of this Agreement, in such
form as may be agreed by the Borrower and the Issuing Lender.

     “Letter of Credit Application” means the Issuing Lender standard form letter of credit
application for standby or commercial letters of credit which has been executed by the Borrower and
accepted by the Issuing Lender in connection with the issuance of a Letter of Credit.

     “Letter of Credit Documents” means all Letters of Credit, Letter of Credit
Applications 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 unpaid amount of all of the Borrower’s payment obligations under drawn Letters of Credit.

     “Letter of Credit Maximum Amount” means $3,000,000; provided that, on and
after the Maturity Date, the Letter of Credit Maximum Amount shall be zero.

     “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 each fiscal quarter, the ratio of (a) all
consolidated Debt of the Borrower as of the last day of such fiscal quarter to (b) the Borrower’s
consolidated EBITDA for the four-fiscal quarter period then ended.

     “LIBOR Advance” means an Advance that bears interest based upon the LIBO Rate (other
than Advances that bear interest based upon the Daily One Month LIBOR).

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     “LIBO Base Rate” means (a) in determining LIBO Rate for purposes of the “Daily One
Month LIBOR”, the rate per annum for Dollar deposits quoted by the Administrative Agent for the
purpose of calculating effective rates of interest for loans making reference to the “Daily
One-Month LIBOR”, as the inter-bank offered rate in effect from time to time for delivery of funds
for one (1) month in amounts approximately equal to the principal amount of the applicable
Advances; provided that, the Administrative Agent may base its quotation of the inter-bank offered
rate upon such offers or other market indicators of the inter-bank market as the Administrative
Agent in its discretion deems appropriate including, but not limited to, the rate determined under
the following clause (b), and (b) in determining LIBO Rate for all other purposes, the rate per
annum (rounded upward to the nearest whole multiple of 1/8th of 1%) equal to the interest rate per
annum set forth on the Reuters Reference LIBOR1 page as the London Interbank Offered Rate, for
deposits in Dollars at 11:00 a.m. (London, England time) two Business Days before the first day of
the applicable Interest Period and for a period equal to such Interest Period; provided
that, if such quotation is not available for any reason, then for purposes of this clause (b), LIBO
Base Rate shall then be the rate determined by the Administrative Agent to be the rate at which
deposits in Dollars for delivery on the first day of such Interest Period in immediately available
funds in the approximate amount of the Advances being made, continued or converted by the Lenders
and with a term equivalent to such Interest Period would be offered by the Administrative Agent’s
London Branch (or other branch or Affiliate of the Administrative Agent) to major banks in the
London or other offshore inter-bank market for Dollars at their request at approximately 11:00 a.m.
(London time) two Business Days prior to the commencement of such Interest Period.

     “LIBO Rate” means a rate per annum determined by the Administrative Agent pursuant to
the following formula:

	 	 	 	 	 	 	 	 	 
	 

	 	LIBO Rate	=	 	 	LIBO Base Rate	 	 
	 

	 	 	 	 

1.00 - LIBO Reserve Percentage
	 	 

Where,

“LIBO Reserve Percentage” means, as of any day, the reserve percentage
(expressed as a decimal, carried out to five decimal places) in effect on such day,
whether or not applicable to any Lender, under regulations issued from time to time
by the Federal Reserve Board for determining the maximum reserve requirement
(including any emergency, supplemental or other marginal reserve requirement) with
respect to liabilities or assets consisting of or including Eurocurrency
Liabilities. The LIBO Rate for each outstanding Advance shall be adjusted
automatically as of the effective date of any change in the LIBO Reserve Percentage.

     “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 Affiliate of any Lender or (ii) any commercial banking institutions or corporations rated at
least P-1 by Moody’s or A-1 by S&P; (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 and rated Aa by Moody’s or AA by S&P; (d) repurchase
agreements which are entered into with any of the Lenders or any

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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); and (f) 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.

     “Maintenance Capital Expenditure” means Capital Expenditures made by any Credit Party
to maintain the operations of any Credit Party at current levels; provided however, the parties
acknowledge that Capital Expenditures made to replace equipment or to extend the life of fixed
assets shall constitute Maintenance Capital Expenditures.

     “Majority Lenders” means (a) other than as provided in clause (b) below, two or more
Lenders (other than Lenders that are at such time Defaulting Lenders) holding at least 51% of the
sum of (i) the aggregate unfunded Revolving Commitments (excluding the Revolving Commitments of
Lenders that are at such time Defaulting Lenders) at such time plus (ii) the aggregate unpaid
principal amount of the Revolving Notes (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 as unpaid principal under such Lender’s Revolving Note but excluding the pro rata
shares thereof for any Lender that is at such time a Defaulting Lender) and (b) at any time when
there is only one Lender or there is only one Lender that is not then a Defaulting Lender, such
Lender.

     “Material Adverse Change” means a material adverse change (a) in the business,
financial condition, properties or results of operations of the Borrower and its Subsidiaries,
taken as a whole; (b) on the validity or enforceability of this Agreement or any of the other
Credit Documents; or (c) on any Credit Party’s ability to perform its obligations under this
Agreement, any Note, the Guaranties or any other Credit Document.

     “Material Domestic Subsidiary” means, as of any fiscal quarter end, any Domestic
Subsidiary that (a) has operating income equal to or greater than 10% of the Borrower’s
consolidated operating income, in each case, for the four-fiscal quarter period then ended, or (b)
has book value of total assets equal to or greater than 10% of the Borrower’s consolidated book
value of total assets, in each case under clauses (a) and (b) above, as established in accordance
with GAAP and as reflected in the financial statements covering such fiscal quarter and delivered
to the Administrative Agent pursuant hereto.

     “Maturity Date” means the earlier of (a) January 29, 2013 and (b) the earlier
termination in whole of the Revolving Commitments pursuant to Section 2.1(b)(i) or Article 7.

     “Maximum Exposure Amount” means, at any time for each Lender, the sum of (a) the
unfunded Revolving Commitment held by such Lender at such time; plus (b) the aggregate unpaid
principal amount of the Revolving Note held by such Lender at such time, (with the aggregate amount
of such Lender’s risk participation and funded participation in the Letter of Credit Exposure and
Swing Line Advances being deemed as unpaid principal under such Lender’s Revolving Note).

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

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

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     “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 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,
(a) extraordinary items, including (i) 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 (ii) any
write-up or write-down of assets and (b) the cumulative effect of any change in GAAP; provided
that, for purposes of this Agreement, “Net Income” shall not include any net income generated from
the Wilkinson Bonds.

     “Net Worth” means, with respect to any Person as of any date of 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-Material Domestic Subsidiary” means any Domestic Subsidiary other than a Material
Domestic Subsidiary.

     “Nonordinary Course Asset Sales” means any sales, conveyances, or other transfers of
Property made by any Credit Party (a) of any division of any Credit Party, (b) of the Equity
Interest in any direct or indirect Subsidiary or (c) outside the ordinary course of business of
such Credit Party, whether in a transaction or related series of transactions.

     “Notes” means the Revolving Notes and the Swing Line Note.

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

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

     “Obligations” means 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 other 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.

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

     “Parent Company” means, with respect to a Lender, the bank holding company (as defined
in Federal Reserve Board Regulation Y), if any, of such Lender, and/or any Person owning,
beneficially or of record, directly or indirectly, a majority of the shares of such Lender.

     “Patriot Act” means the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)).

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

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     “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.

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

     “Potential Defaulting Lender” means, at any time, a Lender (a) as to which the
Administrative Agent has notified the Borrower that an event of the kind referred to in the
definition of “Lender Insolvency Event” has occurred and is continuing in respect of any Subsidiary
of such Lender, (b) as to which the Administrative Agent or the Issuing Lender has in good faith
determined and notified the Borrower (and in the case of the Issuing Lender the Administrative
Agent) that such Lender or its Parent Company or a Subsidiary thereof has notified the
Administrative Agent, or has stated publicly, that it will not comply with its funding obligations
under any other loan agreement or credit agreement or other financing agreement or (c) that has, or
whose Parent Company has, a non-investment grade rating from Moody’s or S&P or another nationally
recognized rating agency. Any determination that a Lender is a Potential Defaulting Lender will be
made by the Administrative Agent or, in the case of clause (b), the Issuing Lender, as the case may
be, in its sole discretion acting in good faith. The Administrative Agent will promptly send to
all parties hereto a copy of any notice to the Borrower provided for in this definition.

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

     “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.

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

     “Response” 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).

     “Responsible Officer” means (a) with respect to any Person that is a corporation, such
Person’s chief financial officer, treasurer or controller, (b) with respect to any Person that is a
limited liability

-13-

 

company, if such Person has officers, then such Person’s chief financial officer, treasurer or
controller, and if such Person is managed by members, then a chief financial officer, treasurer or
controller of such Person’s managing member, and if such Person is managed by managers, then a
manager (if such manager is an individual) or a Responsible Officer of such manager (if such
manager is an entity), and (c) with respect to any Person that is a general partnership, limited
partnership or a limited liability partnership, the Responsible Officer of such Person’s general
partner or partners.

     “Restricted Payment” means, with respect to any Person, (a) any direct or indirect
dividend or distribution (whether in cash, securities or other Property) or any direct or indirect
payment of any kind or character (whether in cash, securities or other Property) in consideration
for or otherwise in connection with any retirement, purchase, redemption 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 such Person or warrants, options or other rights to purchase such Equity Interests.

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

     “Revolving Borrowing” means a Borrowing consisting of 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 each Lender to
advance to Borrower the amount set opposite such Lender’s name on Schedule II 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)(i); provided that, after the Maturity Date, the Revolving Commitment for
each Lender shall be zero. The initial aggregate Revolving Commitment on the date hereof is
$10,000,000.

     “Revolving Loan” means the aggregate principal from a Lender which represents such
Lender’s ratable share of a Revolving Borrowing.

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

     “Revolving Pro Rata Share” means, at any time with respect to any Lender, (a) the
ratio (expressed as a percentage) of such Lender’s Revolving Commitment at such time to the
aggregate Revolving Commitments at such time, or (b) if all of the Revolving Commitments have been
terminated, the ratio (expressed as a percentage) of such Lender’s aggregate outstanding Revolving
Advances at such time to the total aggregate outstanding Revolving Advances at such time.

     “SEC” means, the Securities and Exchange Commission.

     “S&P” means Standard & Poor’s Rating Agency Group, a division of McGraw-Hill
Companies, Inc., or any successor thereof which is a national credit rating organization.

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     “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
realize upon its assets and 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, (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, and (f)
such Person has not transferred, concealed or removed any Property with intent to hinder, delay or
defraud any creditor of such Person.

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

     “Subsidiary” means, with respect to any Person (the “holder”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the holder in the holder’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity,
a majority of whose outstanding Voting Securities shall at any time be owned by the holder or one
more Subsidiaries of the holder. Unless expressly provided otherwise, all references herein and in
any other Credit Document to any “Subsidiary” or “Subsidiaries” means a Subsidiary or Subsidiaries
of the Borrower.

     “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 the Borrowing consisting of a Swing Line Advance made by
the Swing Line Lender pursuant to Section 2.3 or, if an AutoBorrow Agreement is in effect, any
transfer of funds pursuant to such AutoBorrow Agreement.

     “Swing Line Sublimit Amount” means $3,000,000; provided that, on and after the
Maturity Date, the Swing Line Sublimit Amount shall be zero.

     “Swing Line Lender” means Wells Fargo.

     “Swing Line Note” means the promissory note made by the Borrower payable to the order
of 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 F-2.

     “Swing Line Payment Date” means (a) if an AutoBorrow Agreement is in effect, the
earliest to occur of (i) the date required by such AutoBorrow Agreement, (ii) demand is made by the
Swing Line Lender and (iii) the Maturity Date, or (b) if an AutoBorrow Agreement is not in effect,
the earlier to occur of (i) three (3) Business Days after demand is made by the Swing Line Lender
if no Default exists, and otherwise upon demand by the Swing Line Lender and (ii) the Maturity
Date.

     “Tangible Net Worth” means, as to the Borrower, (i) the consolidated
shareholder’s (or other type of equity holder’s) equity of the Borrower and its Subsidiaries
(determined in accordance with GAAP), less (ii) the amount of consolidated intangible assets (as
defined under GAAP) of the Borrower and its Subsidiaries.

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

     “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.

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

     “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.

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

     “Wilkinson Bonds” means the Taxable Industrial Development Revenue Bond (Carbo
Ceramics Inc. Project), Series 2008, having a maximum principal amount not to exceed $410,000,000,
issued by the Development Authority of Wilkinson County.

     “Wilkinson Capital Lease Obligations” means the Debt under the Capital Lease described
in Schedule 6.1.

     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 December 31, 2008 as required under Section 5.2.

     (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 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.

     (c) If at any time any change in GAAP would affect the computation of any financial
ratio or requirement set forth in any Credit Document, and either the Borrower or the Majority
Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in
good faith to amend

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such ratio or requirement to preserve the original intent thereof in light of such change in
GAAP (subject to the approval of the Majority Lenders); provided that, until so
amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior
to such change therein and (ii) the Borrower shall provide to the Administrative Agent and the
Lenders financial statements and other documents required under this Agreement or as reasonably
requested hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

     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 LIBOR 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 (including this Agreement) are references to such instruments,
documents, contracts, and agreements as the same may be amended, supplemented, and otherwise
modified from time to time, unless otherwise specified and shall include all schedules and exhibits
thereto unless otherwise specified. Any reference herein to any law shall be construed as
referring to such law as amended, modified, codified or reenacted, in whole or in part, and in
effect from time to time. Any reference herein to any Person shall be construed to include such
Person’s successors and assigns (subject to the restrictions contained herein). 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
aggregate Revolving Commitments in effect at such time. Each Revolving Borrowing shall (A) if
comprised of Base Rate Advances be in an aggregate amount not less than $100,000 and in integral
multiples of $100,000 in excess thereof, (B) if comprised of LIBOR Advances be in an aggregate
amount not less than $200,000 and in integral multiples of $100,000 in excess thereof, and (C)
consist of Revolving Advances of the same Type made on the same day by the Lenders ratably
according to their respective Revolving Commitments. 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).

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     (b) Reduction of the Commitments.

     (i) Revolving 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 in part the unused portion of the Revolving Commitments; provided
that each partial reduction shall be in a minimum amount of $200,000 and in integral
multiples of $100,000 in excess thereof. Other than as provided in Section 2.1(b)(ii)
below, any reduction or termination of the Commitments pursuant to this Section 2.1(a)(i)
shall be applied ratably to each Lender’s Revolving Commitment and shall be permanent, with
no obligation of the Lenders to reinstate such Revolving Commitments, and the Commitment
Fees shall thereafter be computed on the basis of the aggregate Revolving Commitments, as so
reduced. If there are no outstanding Revolving Commitments, Letters of Credit, expenses,
fees or any other amounts owing pursuant to any Credit Document, the Borrower shall have the
right, upon at least one Business Day’s notice to the Administrative Agent, to terminate
this Agreement except the terms hereof which expressly state that such terms survive the
termination of this Agreement or the termination of the Revolving Commitments.

     (ii) Defaulting Lender. At any time when a Lender is then a
Defaulting Lender, the Borrower, at the Borrower’s election, may terminate such Defaulting
Lender’s Revolving Commitment hereunder; provided that (A) such termination must be
of the Defaulting Lender’s entire Revolving Commitment, (B) the Borrower shall pay all
amounts owed by the Borrower to such Defaulting Lender in such Lender’s capacity as a Lender
under this Agreement and under the other Credit Documents (including principal of and
interest on the Revolving Advances owed to such Defaulting Lender, accrued commitment fees
(subject to Section 2.7(a)), and letter of credit fees but specifically excluding any
amounts owing under Section 2.10 as result of such payment of Revolving Advances) and shall
deposit with the Administrative Agent into the Cash Collateral Account cash collateral in
the amount equal to such Defaulting Lender’s ratable share of the Letter of Credit Exposure,
(C) a Defaulting Lender’s Revolving Commitment may be terminated by the Borrower under this
Section 2.1(b)(ii) if and only if at such time, the Borrower has elected, or is then
electing, to terminate the Revolving Commitments of all then existing Defaulting Lenders.
Upon written notice to the Defaulting Lender and Administrative Agent of the Borrower’s
election to terminate a Defaulting Lender’s Revolving Commitment pursuant to this clause
(ii) and the payment and deposit of amounts required to be made by the Borrower under clause
(B) above, (1) such Defaulting Lender shall cease to be a “Lender” hereunder for all
purposes except that such Lender’s rights as a Lender under Sections 2.11, 2.13, 8.5 and 9.2
shall continue with respect to events and occurrences occurring before or concurrently with
its ceasing to be a “Lender” hereunder, (2) such Defaulting Lender’s Revolving Commitment
shall be deemed terminated, and (3) such Defaulting Lender shall be relieved of its
obligations hereunder as a “Lender”.

     (c) Notes. The indebtedness of the Borrower to each Lender resulting (i)
from Revolving Advances owing to such Lender shall be evidenced by a Revolving Note and (ii) 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 date that is 10 days prior to the Maturity Date, to issue,
increase or extend the expiration date of,

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Letters of Credit for the account of any Credit Party, 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) the Letter of Credit Maximum Amount and (B) an amount
equal to (1) the aggregate Revolving Commitments in effect at such time minus (2)
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;

     (ii) unless such Letter of Credit has an expiration date not later than 10
days prior to the Maturity Date; provided that, if Revolving Commitments are
terminated in whole pursuant to Section 2.1(b)(i), the Borrower shall, at its election,
either (A) deposit into the Cash Collateral Account cash in an amount equal to 105% of the
Letter of Credit Exposure for the Letters of Credit which have an expiry date beyond the
Maturity Date or (B) provide a replacement letter of credit (or other security) reasonably
acceptable to the Administrative Agent and the Issuing Lender in an amount equal to 105% of
the Letter of Credit Exposure;

     (iii) unless such Letter of Credit is (A) a standby letter of credit not
supporting the repayment of indebtedness for borrowed money of any Person, or (B) with the
consent of the Issuing Lender (such consent not to be unreasonably withheld) and so long as
the Borrower as agreed to such additional reasonable fees which may apply, a commercial
letter of credit;

     (iv) unless such Letter of Credit is in form and substance acceptable to the
Issuing Lender in its sole discretion;

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

     (vi) unless such Letter of Credit is governed by (A) the Uniform Customs and
Practice for Documentary Credits (2007 Revision), International Chamber of Commerce
Publication No. 600, or (B) the International Standby Practices (ISP98), International
Chamber of Commerce Publication No. 590, in either case, including any subsequent revisions
thereof approved by a Congress of the International Chamber of Commerce and adhered to by
the Issuing Lender;

     (vii) if any order, judgment or decree of any Governmental Authority or
arbitrator shall by its terms purport to enjoin or restrain the Issuing Lender from issuing,
increasing or extending such Letter of Credit, or any Legal Requirement applicable to the
Issuing Lender or any request or directive (whether or not having the force of law) from any
Governmental Authority with jurisdiction over the Issuing Lender shall prohibit, or request
that the Issuing Lender refrain from, the issuance, increase or extension of letters of
credit generally or such Letter of Credit in particular or shall impose upon the Issuing
Lender with respect to such Letter of Credit any restriction, reserve or capital requirement
(for which the Issuing Lender is not otherwise compensated hereunder) not in effect on the
Effective Date, or shall impose upon the Issuing Lender any unreimbursed loss, cost or
expense which was not applicable on the Effective Date and which the Issuing Lender in good
faith deems material to it;

     (viii) if the issuance, increase or extension of such Letter of Credit would
violate one or more policies of the Issuing Lender applicable to letters of credit
generally;

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     (ix) if Letter of Credit is to be denominated in a currency other than
Dollars; or

     (x) any Lender is at such time a Defaulting Lender or a Potential Defaulting
Lender hereunder, unless the Issuing Lender has entered into satisfactory arrangements with
the Borrower or such Lender to eliminate the Issuing Lender’s risk with respect to such
Lender.

Furthermore, anything contained herein to the contrary notwithstanding, the Issuing Lender may, but
shall not be obligated to, issue or cause the issuance of a Letter of Credit that supports the
obligations of the Borrower or its Subsidiaries in respect of (1) a lease of real property, or (2)
an employment contract.

     (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 facsimile or other writing not later than 11:00 a.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 date of such Letter of Credit issue such Letter of Credit to the
beneficiary of such Letter of Credit.

     (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, 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, the Borrower may, with a written notice, request
that the Borrower’s obligations to the Issuing Lender thereunder be satisfied with the
proceeds of a Revolving Advance in the same amount (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 or the Letter of Credit Application, 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 Revolving Advance, to transfer the proceeds
thereof to the Issuing Lender in satisfaction of such obligations, 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 Borrowings
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, 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 deemed advanced hereunder, caused by the Borrower’s failure to
comply with the provisions of this Agreement or the Letter of Credit Application.

     (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 and regardless of whether (A) the
conditions in Section 3.2 have been met, (B) such notice complies with 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 Revolving Pro Rata Share of the amount of
such Revolving

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Advance not later than 1:00 p.m. 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. 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
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 and (B) the Maximum Rate. Whenever,
at any time after the Administrative Agent has received from any Lender such Lender’s
Revolving Advance, 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 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
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 Revolving Commitments; (3) any breach of
this Agreement by any Credit Party 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 under Section 2.2(a), 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 Revolving 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
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 any
Credit Party 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;

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     (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 (g);

     (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 the Letters of Credit.

     (f) Prepayments of Letters of Credit. In the event that any Letter of
Credit shall be outstanding or shall be drawn and not reimbursed on or prior to the 5th
Business Day prior to the Maturity Date, the Borrower shall pay to the Administrative Agent an
amount equal to 105% of the Letter of Credit Exposure allocable to such Letter of Credit, such
amount to be due and payable on the 5th Business Day prior to the Maturity Date, and to
be held in the Cash Collateral Account and applied in accordance with paragraph (h) below.

     (g) Liability of Issuing Lender. 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 nor any of its 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 a Letter of Credit, including failure of any documents to
bear any reference or adequate reference to the relevant Letter of Credit; or

     (iv) any other circumstances whatsoever in making or failing to make payment
under any Letter of Credit (INCLUDING THE 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 the Borrower proves were caused by
(A) the Issuing Lender’s willful misconduct or gross negligence in determining whether documents
presented under a 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.

     (h) Cash Collateral Account.

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     (i) If the Borrower is required to deposit funds in the Cash Collateral
Account pursuant to Sections 2.2(f), 2.2(i), 2.5(c), 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, including the Administrative Agent’s standard form
assignment of deposit accounts, 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. The Borrower
hereby pledges to the Administrative Agent and grants the Administrative Agent, for the
ratable benefit of the Administrative Agent, the Issuing Lender, the Swing Line Lender and
the Lenders, 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 obligations with respect to Letters of Credit and promptly applied by the
Administrative Agent at the request of the Issuing Lender to any reimbursement or other
obligations under Letters of Credit that exist or occur. To the extent that any surplus
funds are held in the Cash Collateral Account above 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 any manner directed by the Majority Lenders. If no Default
exists, the Administrative Agent shall release any surplus funds held in the Cash Collateral
Account above the Letter of Credit Exposure to the Borrower promptly following the
Borrower’s written request. Notwithstanding the foregoing, if the Borrower has complied
with the terms of Section 2.2(i) and no Default exists, or would result therefrom, the
Administrative Agent shall release the funds deposited by the Borrower pursuant to Section
2.2(i) to the Borrower promptly following the Borrower’s written request.

     (iii) Funds held in the Cash Collateral Account may be invested (for the
benefit of the Borrower) 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
obligation to make any 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 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.

     (i) Defaulting Lender. If, at any time, a Defaulting Lender or a Potential
Defaulting Lender exists hereunder, then, at the request of the Issuing Lender, the Borrower shall
deposit funds with Administrative Agent into the Cash Collateral Account an amount equal to such
Defaulting Lender’s or Potential Defaulting Lender’s pro rata share of the Letter of Credit
Exposure.

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

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     Section 2.3 Swing Line Advances.

     (a) Facility. 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 may, in its sole discretion, from time-to-time on any Business Day
during the period from the date of this Agreement until the last Business Day occurring before the
Maturity Date, make Swing Line Advances under the Swing Line Note to the Borrower which shall be
due and payable on the Swing Line Payment Date (except that no Swing Line Advance may mature after
the Maturity Date), bearing interest at the Adjusted Base Rate plus the Applicable Margin for Base
Rate Advances, and in an aggregate outstanding principal amount not to exceed the Swing Line
Sublimit Amount at any time; provided that (i) 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 aggregate Revolving Commitments in effect at such time; (ii) 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 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; and (iii) if an AutoBorrow Agreement is
in effect, such additional terms and conditions of such AutoBorrow Agreement shall have been
satisfied, and in the event that any of the terms of this Section 2.3(a) conflict with such
AutoBorrow Agreement, the terms of the AutoBorrow Agreement shall govern and control. The
indebtedness of the Borrower to the Swing Line Lender resulting from Swing Line Advances shall be
evidenced by the Swing Line Note. No Lender shall have any rights or obligations under any
AutoBorrow Agreement, but each Lender shall have the obligation to purchase and fund risk
participations in the Swing Line Advances and to refinance Swing Line Advances as provided below.

     (b) Prepayment. Within the limits expressed in this Agreement, amounts
advanced pursuant to Section 2.3(a) may from time to time be borrowed, prepaid without penalty, and
reborrowed. If the aggregate outstanding principal amount of the Swing Line Advances ever exceeds
the Swing Line Sublimit Amount, 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 outstanding principal of the Swing Line Advances such that such excess is eliminated. If an
AutoBorrow Agreement is in effect, each prepayment of a Swing Line Borrowing shall be made as
provided in such AutoBorrow Agreement.

     (c) Reimbursements for Swing Line Obligations.

     (i) With respect to the Swing Line Advances and the interest, premium, fees,
and other amounts owed by the Borrower to the Swing Line Lender in connection with the Swing
Line Advances, 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 and, if an AutoBorrow
Agreement is in effect, in accordance with the terms of such AutoBorrow Agreement. If the
Borrower does not pay to the Swing Line Lender any such amounts when due and payable to the
Swing Line Lender, the Swing Line Lender may upon notice to the Administrative Agent request
the satisfaction of such obligation by the making of a Revolving Borrowing in the amount of
any such amounts not paid when due and payable. Upon such request, the Borrower shall be
deemed to have requested the making of a Revolving Borrowing in the amount of such
obligation and the transfer of the proceeds thereof to the Swing Line Lender. Such
Revolving Borrowing shall bear interest based upon the Adjusted Base Rate plus the
Applicable Margin for Base Rate 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 conditions in Section 3.2 have been met, (B) such notice
complies with Section 2.4, or (C) a Default exists,

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make available such Lender’s ratable share of such Revolving Borrowing to the
Administrative Agent, and 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. The Borrower hereby unconditionally and irrevocably authorizes, empowers, and
directs the Swing Line Lender to make such requests for Revolving Borrowings on behalf of
the Borrower, and the Lenders to make Revolving Advances to the Administrative Agent for the
benefit of the Swing Line Lender in satisfaction of such obligations. The Administrative
Agent and each Lender may record and otherwise treat the making of such Revolving Borrowings
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 the Borrower’s obligations under the
Swing Line Note, but only to provide an additional method of payment therefor. The making
of any Borrowing under this Section 2.3(c) shall not constitute a cure or waiver of any
Default or Event of Default, other than the payment Default or Event of Default which is
satisfied by the application of the amounts deemed advanced hereunder, caused by the
Borrower’s failure to comply with the provisions of this Agreement or the Swing Line Note.

     (ii) If at any time, the Revolving Commitments shall have expired or be
terminated while any Swing Line Advance 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) be deemed,
without further action by any Person, to have purchased from the Swing Line Lender a
participation in such Swing Line Advance, in either case in an amount equal to the product
of such Lender’s Revolving Pro Rata Share times the outstanding aggregate principal balance
of the Swing Line Advances. 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 the Revolving 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 Advance,
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
Revolving 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 Advance, once so participated by any Lender, shall cease
to be a Swing Line Advance 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 Borrowing. If an AutoBorrow Agreement is in effect, each
Swing Line Borrowing shall be made as provided in such AutoBorrow Agreement. Otherwise, and except
as provided in the clause (c) above, each request for a Swing Line Advance shall be made pursuant
to telephone notice to the Swing Line Lender given no later than 1:00 p.m. (Houston, Texas time) on
the date of the proposed Swing Line Advance, promptly confirmed by a completed and executed Notice
of Borrowing 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.

     (e) Interest for Account of Swing Line Lender. Swing Line Lender shall be
responsible for invoicing the Borrower for interest on the Swing Line Advances (provided
that any failure of the Swing Line Lender to provide such invoice shall not release the Borrower
from its obligation to pay such interest). Until each Lender funds its Revolving Advance or risk
participation pursuant to clause (c) above, interest in respect of Lender’s Revolving Pro Rata
Share of the Swing Line Advances shall be solely for the account of the Swing Line Lender.

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

     (g) Discretionary Nature of the Swing Line Facility. Notwithstanding any
terms to the contrary contained herein or in any AutoBorrow Agreement, the Swing Line facility
provided herein or in any AutoBorrow Agreement (i) is an uncommitted facility and the Swing Line
Lender may, but shall not be obligated to, make Swing Line Advances, and (ii) may be terminated at
any time by the Swing Line Lender upon written notice to the Borrower.

     Section 2.4 Advances.

     (a) Notice. Each Revolving Borrowing, shall be made pursuant to a Notice of
Borrowing given not later than (i) 11:00 a.m. (Houston, Texas time) on the third Business Day
before the date of the proposed Borrowing, in the case of a LIBOR Advance or (ii) 11:00 a.m.
(Houston, Texas time) on the Business Day before the date of the proposed 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 Borrowing by facsimile or telex. Each Notice of Borrowing shall be
by facsimile or telex, confirmed promptly by the Borrower with a hard copy (other than with respect
to notice sent by facsimile), specifying the requested (i) date of such Borrowing, (ii) Type and
Class of Advances comprising such Borrowing, (iii) aggregate amount of such Borrowing, and (iv) if
such Borrowing is to be comprised of LIBOR Advances, Interest Period for each such Advance. In the
case of a proposed Borrowing comprised of LIBOR 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 Borrowing, make available for the account of
its applicable Lending Office to the Administrative Agent at its address referred to in Section
9.9, or such other location as the Administrative Agent may specify by notice to the Lenders, in
same day funds, such Lender’s Revolving Pro Rata Share of such 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 as otherwise directed by the Borrower with written notice to the
Administrative Agent.

     (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
Continuation or Conversion to the Administrative Agent at the Administrative Agent’s office no
later than 11:00 a.m. (Houston, Texas time) (i) on the Business Day before the date of the proposed
conversion date in the case

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of a Conversion to a Base Rate Advance and (ii) at least three Business Days in advance of the
proposed Conversion or continuation date in the case of a Conversion to, or a continuation of, a
LIBOR Advance. Each such Notice of Conversion or Continuation shall be in writing or by telex or
facsimile confirmed promptly 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 LIBOR 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 LIBOR 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 five Interest Periods applicable to
outstanding LIBOR Advances;

     (ii) the Borrower may not select LIBOR Advances for any Borrowing at any time
when a Default has occurred and is continuing;

     (iii) if any Lender shall, at least one Business Day before the date of any
requested 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
applicable Lending Office to perform its obligations under this Agreement to make LIBOR
Advances or to fund or maintain LIBOR Advances, (A) the obligation of such Lender to make
such LIBOR 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 LIBOR 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 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 LIBO Rate for
LIBOR Advances comprising any requested Borrowing, the right of the Borrower to select LIBOR
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 Business Day before the date
of any requested Borrowing, notify the Administrative Agent that the LIBO Rate for LIBOR
Advances comprising such Borrowing will not adequately reflect the cost to such Lenders of
making or funding their respective LIBOR Advances, as the case may be, for such Borrowing,
the right of the Borrower to select LIBOR Advances for such Borrowing or for any subsequent
Borrowing shall be suspended until the Administrative Agent shall notify the Borrower and
the Lenders that

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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 LIBOR 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 Base Rate Advances or, if an
existing Advance, Convert into Base Rate Advances.

     (d) Notices Irrevocable. Each Notice of Borrowing and Notice of
Continuation or Conversion delivered by the Borrower hereunder, including its deemed request for
borrowing made under Section 2.2(c), 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 applicable pro rata share of any
Borrowing, the Administrative Agent may assume that such Lender has made its applicable 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 applicable pro rata share of such Borrowing available to the
Administrative Agent, such Lender and the Borrower severally agree to immediately repay to the
Administrative Agent on demand such corresponding amount, together with interest on such amount,
for each day from the date such amount is made available to the Borrower until the date such amount
is repaid to the Administrative Agent, at (i) in the case of the Borrower, the interest rate
applicable on such day to Advances comprising such Borrowing and (ii) in the case of such Lender,
the 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.

     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 to prepay any of the Advances without
penalty or premium except as set forth in Section 2.10 and after giving by 11:00 a.m. (Houston,
Texas time) (i) in the case of LIBOR Advances, at least three Business Days’ or (ii) in case of
Base Rate Advances, one Business Day’s prior written notice to the Administrative Agent stating the
proposed date and aggregate principal amount of such prepayment. If any such notice is given, the
Borrower shall prepay Advances comprising part of the same Borrowing in whole or ratably in part in
an aggregate principal amount equal to the amount specified in such notice, 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 (A) each optional prepayment of LIBOR Advances shall be in a minimum
amount not less than $200,000 and in multiple integrals of $100,000 in excess thereof, (B) each
optional prepayment of Base Rate Advances shall be in a minimum amount not less than $100,000 and
in multiple integrals of $100,000 in excess thereof and (C) each optional prepayment of Swing Line
Advances shall have no minimum requirement. If an AutoBorrow Agreement

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is in effect, each prepayment of Swing Line Advances shall be made as provided in such
AutoBorrow Agreement.

     (c) 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.

     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 Swing Line Advance shall be paid in full on
the Swing Line Payment Date.

     Section 2.7 Fees.

     (a) Commitment Fees. The Borrower agrees to pay to the Administrative Agent
for the account of each Lender a Commitment Fee 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 Revolving Pro Rata Share of the Letter of Credit Exposure, at the rate equal to
the Applicable Margin for Commitment Fees for such period; provided that, no Commitment Fee
shall accrue on the Revolving Commitment of a Defaulting Lender during the period such Lender
remains a Defaulting Lender. The Commitment Fee is due quarterly in arrears on March 31, June 30,
September 30, and December 31 of each year commencing on March 31, 2010, and on the Maturity Date.
For purposes of this Section 2.7(a) only, amounts advanced under the Swing Line Note shall not
reduce the amount of the unused Revolving 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 each Letter of Credit issued hereunder, for the period such
Letter of Credit is to be outstanding, in an amount equal to the greater of (A) the
Applicable Margin for LIBOR Advances per annum on the face amount of such Letter of Credit,
and (B) $600 per Letter of Credit. Such fee 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 equal to
the greater of (A) 0.250% per annum on the face amount of such Letter of Credit and (B)
$600. 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 Administrative Agent for the pro rata benefit of the Lenders
such additional per annum letter of credit fee for each commercial Letter of Credit issued
hereunder, for the period such Letter of Credit is to be outstanding, in an amount agreed to
between the Borrower and the Issuing Lender in writing. Such fee 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.

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     (iv) To the Issuing Lender, an additional fronting fee for each commercial
Letter of Credit equal an amount agreed to between the Borrower and the Issuing Lender.
Such fee shall be due and payable in advance on the date of the issuance of the Letter of
Credit in writing, and, in the case of an increase or extension only, on the date of such
increase or such extension.

     (v) 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 any Letter of Credit is canceled prior to its
expiration date.

     (c) Other Fee. The Borrower agrees to pay the fees to the Administrative
Agent 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, provided that while an Event of Default is continuing the Base
Rate Advances shall bear interest at the Adjusted Base Rate in effect from time to time
plus the Applicable Margin plus 2%. The Borrower shall pay to Administrative Agent
for the ratable account 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, 2010, and
on the Maturity Date. The Swing Line Advances shall bear interest only at the Adjusted Base Rate
plus the Applicable Margin for Base Rate Advances or such other per annum rate to be agreed to
between the Borrower and the Swing Line Lender; provided that while an Event of Default is
continuing the Swing Line Advances shall bear interest at the Adjusted Base Rate in effect from
time to time plus the Applicable Margin for Base Rate Advances plus 2%.

     (b) LIBOR Advances. Each LIBOR Advance shall bear interest during its
Interest Period equal to at all times the LIBO Rate for such Interest Period plus the
Applicable Margin for LIBOR Advances for such period; provided that while an Event of
Default is continuing, each LIBOR Advance shall bear interest at the LIBO Rate in effect from time
to time plus the Applicable Margin plus 2%. The Borrower shall pay to the
Administrative Agent for the ratable account of each Lender all accrued but unpaid interest on each
of such Lender’s LIBOR Advances on the last day of the Interest Period therefor (provided that for
LIBOR Advances with six month Interest Periods, accrued but unpaid interest shall also be due on
the day three months from the first day of such Interest Period), on the date any LIBOR Advance is
repaid, and on the Maturity Date.

     (c) Retroactive Adjustments of Applicable Margin. In the event that any
financial statement or Compliance Certificate delivered pursuant to Section 5.2 is shown to be
inaccurate (regardless of whether this Agreement or the Revolving Commitments are in effect when
such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the
application of a higher Applicable Margin for any period (an “Applicable Period”) than the
Applicable Margin applied for such Applicable Period, then (i) the Borrower shall immediately
deliver to the Administrative Agent a corrected Compliance Certificate for such Applicable Period,
(ii) the Applicable Margin shall be determined as if the higher Applicable Margin that would have
applied were applicable for such Applicable Period (and in any event at Level 3 if the inaccuracy
was the result of dishonesty, fraud or willful misconduct), and (iii) the Borrower shall
immediately, without further action by the Administrative Agent, any Lender or the Issuing Lender,
pay to the Administrative Agent for the account of the applicable Lenders, the accrued

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additional interest owing as a result of such increased Applicable Margin for such Applicable
Period. This Section 2.8(c) shall not limit the rights of the Administrative Agent and Lenders
with respect to the default rate of interest as set forth in Section 2.8(a) and Section 2.8(b) and
Article 7. The Borrower’s obligations under this Section 2.8(c) shall survive the termination of
the Revolving Commitments and the repayment of all other Obligations hereunder.

     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 to
make, maintain, or fund any LIBOR 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 LIBOR Advance or (ii) if required by such
notice, on the second Business Day following its receipt of such notice, prepay all of the LIBOR
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 LIBOR Advances prepaid to such Lender, and (c) the right of the Borrower to select
LIBOR Advances from such Lender for any subsequent Borrowing shall be suspended until such Lender
shall notify the Borrower that the circumstances 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 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. Upon demand of any Lender (with a copy to the
Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender for and
hold such Lender harmless from any loss, cost or expense incurred by it as a result of:

     (a) any continuation, conversion, payment or prepayment (including any deemed
payment or repayment and any reallocated repayment to non-defaulting Lenders provided for in
Section 2.12(a)) of any Advance other than a Base Rate Advance on a day other than the last day of
the Interest Period for such Advance (whether voluntary, mandatory, automatic, by reason of
acceleration, or otherwise);

     (b) any failure by the Borrower (for a reason other than the failure of such Lender
to make an Advance) to prepay, borrow, continue or convert any Advance other than a Base Rate
Advance on the date or in the amount notified by the Borrower; or

     (c) any assignment of an LIBO Rate Advance on a day other than the last day of the
Interest Period therefor as a result of a request by the Borrower pursuant to Section 2.14;

including any loss of anticipated profits, any foreign exchange losses and any loss or expense
arising from the liquidation or reemployment of funds obtained by it to maintain such Advance, from
fees payable to terminate the deposits from which such funds were obtained or from the performance
of any foreign exchange contract. The Borrower shall also pay any customary administrative fees
charged by such Lender in connection with the foregoing. For purposes of calculating amounts
payable by the Borrower to the Lenders under this Section 2.10, the requesting Lender shall be
deemed to have funded the LIBO Rate Advances made by it at the LIBO Base Rate used in determining
the LIBO Rate for such Advance by a matching deposit or other borrowing in the offshore interbank
market for Dollars for a comparable amount and for a comparable period, whether or not such LIBO
Rate Advance was in fact so funded.

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     Section 2.11 Increased Costs.

     (a) LIBOR Advances. If any Change in Law shall:

     (i) 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 LIBO 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 Revolving Commitments of such Lender hereunder; or

     (ii) 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 LIBOR 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 LIBOR Advances, then the Borrower shall pay to such
Lender within three 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 or the
Issuing Lender shall have determined that any Change in Law affecting such Lender or Issuing Lender
or any lending office of such Lender or such Lender’s or Issuing Lender’s holding company, if any,
regarding capital requirements has or would have the effect of reducing the rate of return on the
capital of financial institutions generally, including such Lender or the Issuing Lender or any
corporation controlling such Lender or the Issuing Lender, as a consequence of such Lender’s or the
Issuing Lender’s obligations hereunder to a level below that which such Lender or the Issuing
Lender or such corporation could have achieved but for such Change in Law (taking into
consideration its policies with respect to capital adequacy), then from time to time within three
Business Days after written demand by such Lender or the Issuing Lender, as the case may be, the
Borrower shall pay to such Lender or the Issuing Lender such additional amount or amounts as such
Lender determines in good faith to be necessary to compensate such Lender or the Issuing 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 this Section 2.11 and will designate a
different 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 this Section 2.11 shall furnish to the Borrower and
the Administrative Agent a statement setting forth 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) Delay in Requests. Failure or delay on the part of any Lender or
Issuing Lender to demand compensation pursuant to this Section 2.11 shall not constitute a waiver
of such Lender’s or such Issuing Lender’s right to demand such compensation, provided that
the Borrower shall not be required to compensate a Lender or Issuing Lender pursuant to this
Section 2.11 for any increased costs incurred or reductions suffered more than one year prior to
the date that such Lender or Issuing Lender, as the case may be, notifies the Borrower and the
Administrative Agent of the Change in Law giving rise to such

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increased costs or reductions and of such Lender’s or Issuing Lender’s intention to claim
compensation therefor (except that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the one-year 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 other Credit Documents shall be made to the
Administrative Agent in Dollars and in immediately available funds, without setoff, deduction, or
counterclaim; provided that, the Borrower may setoff amounts owing to any Lender that is at such
time a Defaulting Lender against Advances that such Defaulting Lender failed to the fund to the
Borrower under this Agreement (the “Unfunded Advances”) so long as (i) the Borrower shall
have delivered prior written notice of such setoff to the Administrative Agent and such Defaulting
Lender, (ii) the Advances made by the non-defaulting Lenders as part of the original Borrowing to
which the Unfunded Advances applied shall still be outstanding, (iii) if such Defaulting Lender
failed to fund Advances under more than one Borrowing, such setoff shall be applied in a manner
satisfactory to the Administrative Agent, and (iv) upon the application of such setoff, the
Unfunded Advances shall be deemed to have been made by such Defaulting Lender on the effective date
of such setoff.

     (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 in the Notes (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 2.9, 2.10, 2.11, 2.13, 2.14, and 9.2 but after
taking into account payments effected pursuant to Section 9.1) in accordance with each Lender’s
applicable 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 LIBOR Advances to be made in the next following calendar month, such
payment shall be made on the next preceding Business Day.

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

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     (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 (other than as a result of a
termination of a Defaulting Lender’s Revolving Commitment under Section 2.1(b)(ii), the setoff
right of the Borrower under clause (a) above, or the non-pro rata application of payments provided
in the last sentence of this clause (e)), 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 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. If a Lender fails to fund a Revolving Advance
with respect to a Borrowing as and when required hereunder and the Borrower subsequently makes a
repayment of any Revolving Advances, then, after taking into account any setoffs made pursuant to
Section 2.12(a) above, such payment shall be applied among the non-defaulting Lenders ratably in
accordance with their respective Revolving Commitment percentages until each Lender (including any
Lender that is at such time a Defaulting Lender) has its percentage of all of the outstanding
Revolving Advances and the balance of such repayment shall be applied among the Lenders in
accordance with their Revolving Pro Rata Share.

     Section 2.13 Taxes.

     (a) No Deduction for Certain Taxes. Any and all payments by any Credit
Party under any of the Credit Documents to the Administrative Agent, the Issuing 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, or a Lender, (i) taxes imposed on its income and franchise (or margin) taxes imposed on it
by the jurisdiction (or any political subdivision thereof) under (A) the laws of which (or under
the laws of a political subdivision of which) the Administrative Agent, the Issuing Lender, or such
Lender is organized or in which its principal executive office is located, (B) in the case of each
Lender, the laws of which (or under the laws of a political subdivision of which) such Lender’s
applicable Lending Office is located, and (C) the laws of the State of Texas; and (ii) 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
(all such nonexcluded taxes, levies, imposts, deductions, charges, withholdings, and liabilities
being hereinafter referred to as “Taxes”). 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, 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,

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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
INDEMNIFIES EACH LENDER, THE ISSUING LENDER, AND THE ADMINISTRATIVE AGENT 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, 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.

     (d) Evidence of Tax Payments. As soon as practicable after any payment of
Taxes or Other Taxes by any Credit Party to a Governmental Authority, the Borrower shall deliver to
the Administrative Agent the original or a certified 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.

     (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, any Lender or the
Issuing Lender determines, in its sole discretion, that it has received a refund of any Taxes or
Other Taxes as to which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section, it shall pay to the Borrower an
amount equal to such refund (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section with respect to the Taxes or Other Taxes giving
rise to such refund), net of all out-of-pocket expenses of the Administrative Agent, such Lender or
the Issuing Lender, as the case may be, and without interest (other

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

     (i) Payment. If the Administrative Agent 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
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 30 days after the Borrower’s
receipt of such notice and demand.

     Section 2.14 Replacement of Lenders. If (a) the Borrower is required
pursuant to Section 2.11 or 2.13 to make any additional payment to any Lender, (b) any Lender’s
obligation to make or continue, or to convert Base Rate Advances into, LIBOR Advances shall be
suspended pursuant to 2.4(c)(iii) or 2.9, or (c) any Lender is a Defaulting Lender or a Potential
Defaulting Lender (any such Lender described in any of the preceding clauses (a) — (c), being a
“Subject Lender”), then (i) in the case of a Defaulting Lender or a Potential Defaulting
Lender, the Administrative Agent may, upon notice to the Subject Lender and the Borrower, require
such Subject Lender to assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in, and consents required by, Section 9.7), all of its interests, rights and
obligations under this Agreement and the related Credit Documents as a Lender to an Eligible
Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment) and (ii) in the case of any Subject Lender, including a Potential
Defaulting Lender, the Borrower may, upon notice to the Subject Lender and the Administrative Agent
and at the Borrower’s sole cost and expense, require such Subject Lender to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained in, and consents
required by, Section 9.7), all of its interests, rights and obligations under this Agreement and
the related Credit Documents to an Eligible Assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment), provided that, in any event

(A) as to assignments requested by the Borrower, the Borrower shall have paid to the
Administrative Agent the assignment fee specified in Section 9.7;

(B) such Subject Lender shall have received payment of an amount equal to the outstanding
principal of its applicable Advances and participations in outstanding Letter of Credit
Obligations, accrued interest thereon, accrued fees and all other amounts payable to it
hereunder and under the other Credit Documents (including any amounts under Section 2.10) from
the assignee (to the extent of such outstanding principal and accrued interest and fees) or the
Borrower (in the case of all other amounts);

(C) in the case of any such assignment resulting from a claim for compensation under Section
2.13, such assignment will result in a reduction in such compensation or payments thereafter;
and

(D) such assignment does not conflict with applicable Legal Requirements.

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A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require
such assignment
and delegation cease to apply. Solely for purposes of effecting any assignment involving a
Defaulting Lender under this Section 2.14 and to the extent permitted under applicable Legal
Requirements, each Lender hereby designates and appoints the Administrative Agent as true and
lawful agent and attorney-in-fact, with full power and authority, for and on behalf of and in the
name of such Lender to execute, acknowledge and deliver the Assignment and Acceptance required
hereunder if such Lender is a Defaulting Lender and such Lender shall be bound thereby as fully and
effectively as if such Lender had personally executed, acknowledged and delivered the same. In
lieu of the Borrower or the Administrative Agent replacing a Defaulting Lender as provided in this
Section 2.14, the Borrower may terminate such Defaulting Lender’s Revolving Commitment as provided
in Section 2.1(b)(ii).

     Section 2.15 Defaulting Lender Cure. If the Borrower, the Administrative
Agent, and the Issuing Lender agree in writing in their discretion that a Lender that is a
Defaulting Lender or a Potential Defaulting Lender should no longer be deemed to be a Defaulting
Lender or Potential Defaulting Lender, as the case may be, the Administrative Agent will so notify
the parties hereto, whereupon as of the effective date specified in such notice and subject to any
conditions set forth therein, such Lender will, to the extent applicable, purchase such portion of
outstanding Advances of the other Lenders and/or make such other adjustments as the Administrative
Agent may determine to be necessary to cause the Advances and Letter of Credit Exposure of the
Lenders to be on a pro rata basis in accordance with their respective Revolving
Commitments, whereupon such Lender will cease to be a Defaulting Lender or Potential Defaulting
Lender (and the Advances and Letter of Credit Exposure of each Lender will automatically be
adjusted on a prospective basis to reflect the foregoing); provided that no adjustments
will be made retroactively with respect to fees accrued or payments made by or on behalf of the
Borrower while such Lender was a Defaulting Lender; and provided, further, that except to
the extent otherwise expressly agreed by the affected parties, no cessation hereunder as being a
Defaulting Lender or Potential Defaulting Lender will constitute a waiver or release of any claim
of any party hereunder arising from such Lender’s having been a Defaulting Lender or Potential
Defaulting Lender.

ARTICLE 3

CONDITIONS OF EFFECTIVENESS

     Section 3.1 Conditions to Effectiveness. This Agreement shall become
effective upon satisfaction of the following conditions precedent:

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

     (i) this Agreement and all attached Exhibits and Schedules and a Note payable
to the order of each Lender;

     (ii) certificates of insurance in compliance with Section 5.3(b) of this
Agreement;

     (iii) a certificate from an authorized 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 then
exists;

     (iv) a secretary’s certificate from each Credit Party certifying such Credit
Party’s (A) officers’ incumbency, (B) authorizing resolutions, (C) organizational documents,
and (D)

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governmental approvals, if any, with respect to the Credit Documents to which the
Borrower is a party;

     (v) certificates of good standing for each Credit Party in the state in which
each such Person is incorporated or organized, which certificates shall be dated a date not
earlier than 30 days prior to the Effective Date;

     (vi) a legal opinion of Haynes and Boone, L.L.P. as outside counsel to the
Credit Parties, in form and substance reasonably acceptable to the Administrative Agent; and

     (vii) 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 shall have received
any consents, licenses and approvals required in accordance with applicable law, or in accordance
with any document, agreement, instrument or arrangement to which the Borrower, or any Subsidiary is
a party, in connection with the execution, delivery, performance, validity and enforceability of
this Agreement and the other Credit Documents. In addition, the Borrower and the Subsidiaries
shall have all such material consents, licenses and approvals required in connection with the
continued operation of the Borrower and the Subsidiaries, 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.

     (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 before and after giving effect to the initial Borrowings or issuance (or deemed
issuance) of Letters of Credit and to the application of the proceeds from such Borrowing, as
though made on and as of such date.

     (d) Payment of Fees. The Borrower shall have paid the fees and expenses
required to be paid as of the Effective Date pursuant to 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 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, any other Credit Agreement or any
transaction contemplated hereby or thereby 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) Other Reports. The Administrative Agent shall have received, in form
and substance reasonably satisfactory to it, all environmental reports, and such other reports,
audits or certifications as it may reasonably request, which reports the Administrative Agent
acknowledges it has received as of the date of this Agreement.

     (g) 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), prospects, or results of operations of the Borrower and its Subsidiaries, taken as a
whole, shall have occurred since September 30, 2009.

     (h) No Default. No Default then exists.

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     (i) Solvency. The Administrative Agent shall have received a certificate in
form and substance reasonably satisfactory to the Administrative Agent from a senior financial
officer of the Borrower and each Guarantor certifying that, before and after giving effect to the
initial Borrowings made hereunder on the Effective Date, the Borrower and each such other Guarantor
is Solvent (assuming with respect to each Guarantor, that the fraudulent conveyance savings
language contained in the Guaranty applicable to such Guarantor will be given full effect).

     (j) Delivery of Financial Statements. The Administrative Agent shall have
received true and correct copies of (i) the audited financial statements for the fiscal year ended
December 31, 2008 and (ii) the unaudited financial statements for the fiscal quarter ended
September 30, 2009.

     (k) Due Diligence. The Administrative Agent shall have completed its
business and legal due diligence and be satisfied with the results thereof.

     (l) USA Patriot Act. The Borrower has delivered to each Lender that is
subject to the Patriot Act such information requested by such Lender in order to comply with the
Patriot Act.

     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, increase, renew or extend a Letter of Credit (including the deemed
issuance of Letters of Credit) shall be subject to the further conditions precedent that on the
date of such Borrowing or such issuance, increase, renewal or extension:

     (a) Representations and Warranties. As of the date of the making of any
Advance or issuance, increase, renewal or extension of any Letter of Credit, the representations
and warranties made by any Credit Party or any officer of any Credit Party contained in the Credit
Documents shall be true and correct in all material respects (except that such materiality
qualifier shall not be applicable to any representations and warranties that already are qualified
or modified by materiality in the text thereof) 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
only as of such specified date and each request for the making of any Advance or issuance,
increase, renewal or extension of any Letter of Credit and the making of such Advance or the
issuance, increase, renewal or extension of such Letter of Credit shall be deemed to be a
reaffirmation of such representations and warranties.

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

     (c) Payment in Full of Existing Debt. Prior to, or concurrently with, the
making of the initial Advances hereunder, all outstanding obligations owing under the Existing Debt
shall have been paid in full and the Administrative Agent shall have received a “pay-off” letter
(or such other evidence) in form and substance reasonably satisfactory to the Administrative Agent
with respect to all such Debt evidencing the termination of all commitments to lend under the
respective loan documents; and the Administrative Agent shall have received from any Person holding
any Lien securing any such Debt, such UCC (or equivalent) termination statements, mortgage
releases, releases of assignments of leases and rents, and other instruments, in each case in
proper form for recording or filing, as the Administrative Agent shall have reasonably requested to
release and terminate of record the Liens securing such Debt.

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     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

     Each Credit Party hereto represents and warrants as follows:

     Section 4.1 Organization. Each Credit Party 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 where the failure to be so qualified or
authorized could not reasonably be expected to result in a Material Adverse Change. As of the
Effective Date, each Credit Party’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 (a) are within such Credit Party’s powers, (b) have been duly
authorized by all necessary corporate, limited liability company or partnership action, (c) do not
contravene any articles or certificate of incorporation or bylaws, partnership or limited liability
company agreement 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 Agreement, and (f) do not require any
authorization or approval or other action by, or any notice or filing with, any Governmental
Authority. At the time of each Advance or the issuance, renewal, extension or increase of each
Letter of Credit, such Advance and the use of the proceeds of such Advance or the issuance,
renewal, extension or increase of such Letter of Credit are within the Borrower’s corporate power,
have been duly authorized by all necessary action, do not contravene (i) the Borrower’s certificate
or articles of incorporation or bylaws, or (ii) any Legal Requirement or any material contractual
restriction binding on or affecting the Borrower, will not result in or require the creation or
imposition of any Lien prohibited by this Agreement, and do not require any authorization or
approval or other action by, or any notice or filing with, any Governmental Authority.

     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 against such Credit Party 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 by general principles of equity whether applied by a court of
law or equity.

     Section 4.4 Financial Condition.

     (a) The Borrower has delivered to the Administrative Agent the unaudited financial
statements for the Borrower and its Subsidiaries dated as of September 30, 2009 for the fiscal
quarter ending thereon. The financial statements referred to in the preceding sentence have been
prepared in

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accordance with GAAP and present fairly the consolidated financial condition of the
aforementioned Persons as of the respective dates thereof. As of the date of the aforementioned
financial statements, there were no material contingent obligations, liabilities for taxes, unusual
forward or long-term commitments, or unrealized or anticipated losses of the applicable Persons,
except as disclosed therein and adequate reserves for such items have been made in accordance with
GAAP.

     (b) Since the Effective Date, after giving pro forma effect to all Advances made
hereunder on the Effective Date, no event or condition has occurred that could reasonably be
expected to result in Material Adverse Change.

     Section 4.5 Ownership and Liens; Real Property. Each Credit Party (a) has
good and defensible title to, or a valid and subsisting leasehold interest in, all real property,
and good title to all personal Property, used in its business, and (b) none of the Property owned
or leased by the Borrower or a Subsidiary of the Borrower is subject to any Lien except 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 its Subsidiaries and furnished to the Administrative Agent or the Lenders for purposes
of or in connection with this Agreement, any other Credit Document or any transaction contemplated
hereby or thereby does not contain any material misstatement of fact or omits to state any material
fact necessary to make the statements therein not misleading. There is no fact known to any
officer of any Credit Party 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. All
projections, estimates, budgets, and pro forma financial information furnished by the Borrower or
any of its Subsidiaries (or on behalf of the Borrower or any such Subsidiary), were prepared on the
basis of assumptions, data, information, tests, or conditions (including current and reasonably
foreseeable business conditions) believed to be reasonable at the time such projections, estimates,
and pro forma financial information were furnished.

     Section 4.7 Litigation. Except as set forth in Schedule 4.7, there are no
actions, suits, or proceedings pending or, to any Credit Party’s knowledge, threatened against the
Borrower or any Subsidiary, at law, in equity, or in admiralty, or by or before any Governmental
Authority, which could reasonably be expected to result in a Material Adverse Change.
Additionally, except as disclosed in writing to the Administrative Agent and the Lenders, there is
no pending or, to the knowledge of any Credit Party, threatened action or proceeding instituted
against the Borrower or any Subsidiary which seeks to adjudicate the Borrower or any 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.

     Section 4.8 Compliance with Agreements.

     (a) Neither the Borrower nor any of its Subsidiaries is a party to any indenture,
loan or credit agreement or any lease or any other types 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 of its Subsidiaries is in default under or with respect to
any contract, agreement, lease or any other types of agreement or instrument to which the Borrower
or such Subsidiary is a party and which could reasonably be expected to cause a Material Adverse
Change. To the best knowledge of the Credit Parties, neither the Borrower nor any of its
Subsidiaries is in default under, or has received a notice of default under, any contract,
agreement, lease or any other document or instrument to which the

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Borrower or its Subsidiaries is a party which is continuing and which, if not cured, could
reasonably be expected to cause a Material Adverse Change.

     (b) No Default has occurred and is continuing.

     Section 4.9 Pension Plans. (a) Except for matters that could not reasonably
be expected to result in a Material Adverse Change, all Plans are in compliance 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, except for matters that could not
reasonably be expected to result in a Material Adverse Change, each Plan has complied with and been
administered in accordance with applicable provisions of ERISA and the Code, (c) no “accumulated
funding deficiency” (as defined in Section 302 of ERISA) has occurred, and for plan years after
December 31, 2007, no unpaid minimum required contribution exists, and there has been no excise tax
imposed under Section 4971 of the Code, (d) to the knowledge of Credit Parties, 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 in all
material respects, (e) the present value of all benefits vested under each Plan (based on the
assumptions used to fund such Plan) did not, as of the last annual valuation date applicable
thereto, exceed the value of the assets of such Plan allocable to such vested benefits in an amount
that could reasonably be expected to result in a Material Adverse Change, (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 that could reasonably be
expected to result in a Material Adverse Change or an Event of Default under Section 7.1(i), and
(g) except for matters that could not reasonably result in a Material Adverse Change, as of the
most recent valuation date applicable thereto, neither the Borrower nor any member of the
Controlled Group would become subject to any liability under ERISA if the Borrower or any
Subsidiary has received notice that any Multiemployer Plan is insolvent or in reorganization.
Based upon GAAP existing as of the date of this Agreement and current factual circumstances, no
Credit Party has any reason to believe that the annual cost during the term of this Agreement to
the Borrower or any Subsidiary for post-retirement benefits to be provided to the current and
former employees of the Borrower or any Subsidiary under Plans that are welfare benefit plans (as
defined in Section 3(1) of ERISA) could, in the aggregate, reasonably be expected to cause a
Material Adverse Change.

     Section 4.10 Environmental Condition.

     (a) Permits, Etc. Except as set forth on Schedule 4.10 hereto, each Credit
Party (i) has obtained all material Environmental Permits necessary for the ownership and operation
of its Properties and the conduct of its businesses; (ii) is in material compliance with all terms
and conditions of such Permits and with all other material requirements of applicable Environmental
Laws; (iii) has not received written notice of any material violation or alleged material violation
of any Environmental Law or Environmental Permit that has not been resolved; and (iv) is not
subject to any actual or contingent Environmental Claim which could reasonably be expected to cause
a Material Adverse Change.

     (b) Certain Liabilities. To the Credit Parties’ best knowledge, none of the
present or previously owned or operated Property of any Credit Party or of any Subsidiary thereof,
wherever located, (i) has been placed on or proposed to be placed on the National Priorities List,
the Comprehensive Environmental Response Compensation Liability Information System list, or their
state or local analogs, or have been otherwise investigated, designated, listed, or identified as a
potential site for removal, remediation, cleanup, closure, restoration, reclamation, or other
response activity under any Environmental Laws; (ii) is subject to a Lien, arising under or in
connection with any Environmental Laws, that attaches to any revenues or to any Property owned or
operated by any Credit Party, wherever located, which could reasonably be expected to cause a
Material Adverse Change; or (iii) has been the site

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of any Release of Hazardous Substances or Hazardous Wastes from present or past operations
which has caused at the site or at any third-party site any condition that has resulted in or could
reasonably be expected to result in the need for Response that could cause a Material Adverse
Change.

     (c) Certain Actions. Without limiting the foregoing, (i) all necessary
material notices have been properly filed, and no further action is required under current
applicable Environmental Law as to each Response undertaken by the Borrower, any of its
Subsidiaries or any of the Borrower’s or such Subsidiary’s former Subsidiaries on any of their
presently or formerly owned or operated Property and (ii) to the Credit Parties’ knowledge, the
present and future liability, if any, of the Borrower or of any Subsidiary which could reasonably
be expected to arise in connection with requirements under Environmental Laws will not result in a
Material Adverse Change.

     Section 4.11 Subsidiaries. As of the Effective Date, the Borrower has no
Subsidiaries other than those listed on Schedule 4.11. Each Material Domestic Subsidiary of the
Borrower (including any such Material Domestic 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
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
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. To the extent that failure to do so could reasonably,
either individually or in the aggregate, be expected to result in a Material Adverse Change, proper
and accurate (in all material respects), federal, state, local and foreign tax returns, reports and
statements required to be filed (after giving effect to any extension granted in the time for
filing) by the Borrower and each Subsidiary or any member of the Affiliated Group as determined
under Section 1504 of the Code (hereafter collectively called the “Tax Group”) have been
filed with the appropriate Governmental Authorities, and all taxes (which are material in amount)
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 where
contested in good faith and by appropriate proceeding. Neither the Borrower nor any member of the
Tax Group has given, or been requested to give, a waiver of the statute of limitations relating to
the payment of any federal, state, local or foreign taxes or other impositions. None of the
Property owned by the Borrower or any other member of the Tax Group is Property which the Borrower
or any member of the Tax Group is required to treat as being owned by any other Person pursuant to
the provisions of Section 168(f)(8) of the Code. 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. Each of the Borrower and its
Subsidiaries 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. Each of the Borrower and its Subsidiaries manages and operates its business in
accordance with all applicable Legal Requirements except where the failure to so manage or operate
could not reasonably be expected to result in a Material Adverse Change; provided that this Section
4.14 does not apply with respect to Environmental Permits or Legal Requirements of Environmental
Law.

     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. No Credit Party is engaged in the business
of extending credit for

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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 each Subsidiary, are in good
working order and condition, normal wear and tear excepted. Neither the business nor the material
Properties of the Borrower or any Subsidiary has been affected as a result of any fire, explosion,
earthquake, flood, drought, windstorm, accident, strike or other labor disturbance, embargo,
requisition or taking of Property or cancellation of contracts, permits or concessions by a
Governmental Authority, riot, activities of armed forces or acts of God or of any public enemy,
which effect could reasonably be expected to cause a Material Adverse Change.

     Section 4.17 Insurance. The Borrower and its Subsidiaries carry insurance
(which may be carried by the Borrower on a consolidated basis) with reputable insurers in respect
of such of their respective Properties, in such amounts and against such risks as is customarily
maintained by other Persons of similar size engaged in similar businesses or, self-insure to the
extent that is customary for Persons of similar size engaged in similar businesses.

     Section 4.18 Compliance with Laws. The Borrower will, and will cause each
of the Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental
Authority applicable to them or their Property, except where the failure to do so, individually or
in the aggregate, could not reasonably be expected to result in a Material Adverse Change; provided
that, this Section 4.18 shall not apply with respect to any requirement under Environmental Laws.

ARTICLE 5

AFFIRMATIVE COVENANTS

     So long as any Obligation shall remain unpaid, any Lender shall have any Revolving Commitment
hereunder, or there shall exist any Letter of Credit Exposure, each Credit Party agrees to comply
with the following covenants.

     Section 5.1 Organization. Each Credit Party shall, and shall cause each of
its respective Subsidiaries 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 and where failure to qualify could reasonably be expected to cause 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. 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 December
31, 2009), a consolidated and consolidating balance sheet of the Borrower and its Subsidiaries
(excluding, in the case of Foreign Subsidiaries, consolidating balance sheets) as at the end of
such fiscal year, and the related consolidated and consolidating statements of income or
operations, shareholders’ equity and cash flow for such fiscal year (excluding (i) consolidating
cash flow and (ii) in the case of Foreign Subsidiaries, consolidating statements of income or
operations, shareholders’ equity and cash flow), setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail and prepared in

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accordance with GAAP, such consolidated statements to be audited and accompanied by a report
and opinion of an independent certified public accountant of nationally recognized standing
reasonably acceptable to the Administrative Agent, which report and opinion shall be prepared in
accordance with generally accepted auditing standards and shall not be subject to any “going
concern” or like qualification or exception or any qualification or exception as to the scope of
such audit, and such consolidating statements to be certified by the chief executive officer, chief
financial officer, treasurer or controller of the Borrower to the effect that such statements are
fairly stated in all material respects when considered in relation to the consolidated financial
statements of the Borrower and its Subsidiaries;

     (b) Quarterly Financials. The Borrower shall provide, or shall cause to be
provided, to the Administrative Agent, as soon as available, but in any event within 45 days after
the end of each of the first three fiscal quarters of each fiscal year of the Borrower (commencing
with the fiscal quarter ended March 31, 2010), a consolidated and consolidating balance sheet of
the Borrower and its Subsidiaries (excluding, in the case of Foreign Subsidiaries, consolidating
balance sheets) as at the end of such fiscal quarter, and the related consolidated and
consolidating statements of income or operations, shareholders’ equity and cash flow for such
fiscal quarter and for the portion of the Borrower’s fiscal year then ended (excluding (i)
consolidating cash flow and (ii) in the case of Foreign Subsidiaries, consolidating statements of
income or operations, shareholders’ equity and cash flow), setting forth in each case in
comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and
the corresponding portion of the previous fiscal year, all in reasonable detail, such consolidated
statements to be certified by the chief executive officer, chief financial officer, treasurer or
controller of the Borrower as fairly presenting the financial condition, results of operations,
shareholders’ equity and cash flow of the Borrower and its Subsidiaries in accordance with GAAP,
subject only to normal year-end audit adjustments and the absence of footnotes and such
consolidating statements to be certified by the chief executive officer, chief financial officer,
treasurer or controller of the Borrower to the effect that such statements are fairly stated in all
material respects when considered in relation to the consolidated financial statements of the
Borrower and its Subsidiaries;

     (c) Compliance Certificate. Concurrently with the delivery of the financial
statements referred to in Section 5.2(a) and (b) above, the Borrower shall provide to the
Administrative Agent a duly completed Compliance Certificate signed by the chief executive officer,
chief financial officer, treasurer or controller of the Borrower;

     (d) Annual Budget. As soon as available and in any event within 30 days
after the end of each fiscal year of the Borrower, the Borrower shall provide to the Administrative
Agent an annual budget to include an income statement, balance sheet, cash flow statement and
capital spending forecast for the immediately following fiscal year and in reasonable detail.

     (e) Defaults. The Credit Parties 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 or Event of Default known to the Borrower or to any of its Subsidiaries, together with
a statement of an officer of the Borrower setting forth the details of such Default or Event of
Default and the actions which the Credit Parties have taken and proposes to take with respect
thereto.

     (f) Other Creditors. The Credit Parties shall provide to the Administrative
Agent promptly after the giving or receipt thereof, copies of any default notices given or received
by the Borrower or by any of its Subsidiaries pursuant to the terms of any indenture, loan
agreement, credit agreement, or similar agreement.

     (g) Litigation. The Credit Parties shall provide to the Administrative
Agent promptly after the commencement thereof, notice of all actions, suits, and proceedings before
any Governmental

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Authority, affecting the Borrower or any of its Subsidiaries that could reasonably be expected
to result in a Material Adverse Change.

     (h) Environmental Notices. Promptly upon, and in any event no later than 15
days after, the receipt thereof, or the acquisition of knowledge thereof, by any Credit Party, the
Credit Parties 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 $2,000,000, (ii) concerning any action or omission on the
part of any of the Credit Parties or any of their former Subsidiaries in connection with Hazardous
Waste or Hazardous Substances which could reasonably result in the imposition of liability in
excess of $2,000,000 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 $2,000,000, including without limitation any information request
related to, or notice of, potential responsibility under CERCLA, or (iii) concerning the filing of
a Lien arising under Environmental Law upon, against or in connection with the Borrower, any
Subsidiary, or any of their respective former Subsidiaries, or any of their leased or owned
Property, wherever located.

     (i) Material Changes. The Credit Parties shall provide to the
Administrative Agent prompt written notice of any condition or event of which the Borrower or any
of its Subsidiaries has knowledge, which condition or event has resulted or may reasonably be
expected 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 of its
Subsidiaries is a party or by which their Properties may be bound which breach or noncompliance
could reasonably be expected to result in a Material Adverse Change.

     (j) Termination Events. As soon as possible and in any event (i) within 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 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 Credit Parties shall provide to the Administrative Agent a statement of an authorized
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;

     (k) Termination of Plans. Promptly and in any event within seven (7)
Business Days after receipt thereof by the Borrower or any member of the Controlled Group from the
PBGC, the Credit Parties 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;

     (l) Other ERISA Notices. Promptly and in any event within seven (7)
Business Days after receipt thereof by the Borrower or any member of the Controlled Group from a
Multiemployer Plan sponsor, the Credit Parties 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;

     (m) Other Governmental Notices. Promptly and in any event within five
Business Days after receipt thereof by the Borrower or any Subsidiary, the Credit Parties shall
provide to the Administrative

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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;

     (n) Disputes; etc. The Credit Parties 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 any Credit Party, any such actions
threatened, or affecting the Borrower or any Subsidiary, which, if adversely determined, could
reasonably be expected to cause a Material Adverse Change, or any material labor controversy of
which the Borrower or any of its Subsidiaries has knowledge resulting in or reasonably considered
to be likely to result in a strike against the Borrower or any Subsidiary;

     (o) Securities Law Filings and other Public Information. Promptly after the
same are available, the Credit Parties shall provide to the Administrative Agent copies of each
annual report, proxy or financial statement or other report or communication sent to the
stockholders of the Borrower, and copies of all annual, regular, periodic and special reports and
registration statements which the Borrower may file or be required to file with the SEC under
Section 13 or 15(d) of the Exchange Act or any other securities Governmental Authority, and not
otherwise required to be delivered to the Administrative Agent pursuant hereto (provided that a
notice and link posted to the Borrower’s main company website of any such document or information
shall be deemed a satisfaction of the covenant in this clause (o).

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

     (q) Accounting Changes. No Credit Party shall make a change in the method
of accounting employed in the preparation of the financial statements referred to in Section 4.4 or
change the fiscal year end of the Borrower unless required to conform to GAAP or approved in
writing by the Administrative Agent.

     Section 5.3 Insurance.

     (a) Each Credit Party shall, and shall cause each of its Subsidiaries to, carry
insurance in such amounts and against such risks as is customarily maintained by other Persons of
similar size engaged in similar businesses and with sound and reputable insurers.

     (b) Certificates of all insurance policies covering the property or business of the
Credit Parties, and the renewals thereof, shall be delivered by Borrower to the Administrative
Agent. All 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, its
Subsidiaries, and the applicable insurance company, such policies will not be canceled or allowed
to lapse without renewal without at least 30 days’ prior written notice to the Administrative
Agent.

     Section 5.4 Compliance with Laws. Each Credit Party shall, and shall cause
each of its Subsidiaries to, comply with all federal, state, and local laws and regulations
(including Environmental Laws) which are applicable to the operations and Property of any Credit
Party and maintain all related permits necessary for the ownership and operation of each Credit
Party’s Property and business, except in any case where the failure to so comply could not
reasonably be expected to result in a Material Adverse Change.

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     Section 5.5 Taxes. Each Credit Party shall, and shall cause each of its
Subsidiaries to pay and discharge all material taxes, assessments, and other charges and claims
related thereto imposed on the Borrower or any of its Subsidiaries prior to the date on which
penalties attach other than any tax, assessment, charge, or claims which is being contested in good
faith and for which adequate reserves have been established in compliance with GAAP.

     Section 5.6 Material Domestic Subsidiaries. The Borrower shall cause each
Material Domestic Subsidiary, whether existing on the Effective Date or created or acquired after
the Effective Date, to, within 30 days of creation or acquisition (or such later date as the
Administrative Agent shall agree), to execute and deliver to the Administrative Agent a joinder to
the Guaranty or otherwise deliver a Guaranty, in any event, in form and substance satisfactory to
the Administrative Agent. Furthermore, if, as of any fiscal quarter end, the Non-Material Domestic
Subsidiaries collectively (a) have operating income equal to or greater than 10% of the Borrower’s
consolidated operating income for the four fiscal quarter period then ended, or (b) have a total
book value of total assets equal to or greater than 10% of the Borrower’s consolidated book value
of total assets, in either case under clause (a) or (b), as established in accordance with GAAP and
as reflected in the financial statements covering such fiscal quarter and delivered to the
Administrative Agent pursuant hereto, then, within 30 days of delivery of such financial statements
and the accompanying Compliance Certificate required under Section 5.2(c) above, the Borrower shall
cause such Non-Material Domestic Subsidiaries to execute and deliver to the Administrative Agent a
joinder to the Guaranty or otherwise deliver a Guaranty, in any event, in form and substance
satisfactory to the Administrative Agent, but only to the extent necessary in order to result in
(i) operating income of all Non-Material Domestic Subsidiaries that are not Guarantors to be less
than 10% of the Borrower’s consolidated operating income for the four fiscal quarter period then
ended, and (ii) total book value of total assets of all Non-Material Domestic Subsidiaries that are
not Guarantors to be less than 10% of the Borrower’s consolidated book value of total assets, in
either case under clause (i) or (ii), as established in accordance with GAAP and as reflected in
the financial statements covering such fiscal quarter and delivered to the Administrative Agent
pursuant hereto. Furthermore, concurrently with the delivery of each financial statement as
required in Sections 5.2(a) and (b) and the accompanying Compliance Certificate required under
Section 5.2(c), the Borrower may request that the Administrative Agent release, and within 30 days
of such request, the Administrative Agent shall release, any Domestic Subsidiary from its Guaranty
as requested by the Borrower, so long as no Default then exists and after giving effect to such
release, the Borrower is in compliance with this Section 5.6. For the avoidance of doubt, no
Foreign Subsidiary shall be required to become a Guarantor hereunder.

     Section 5.7 Records; Inspection. Each Credit Party shall, and shall cause
each of its Subsidiaries to maintain proper, complete and consistent, in all material respects,
books of record with respect to such Person’s operations, affairs, and financial condition. From
time to time upon reasonable prior notice, each Credit Party shall permit any Lender and shall
cause each of its Subsidiaries to permit any Lender, at such reasonable times and intervals and to
a reasonable extent and under the reasonable guidance of officers of or employees delegated by
officers of such Credit Party or such Subsidiary, to, subject to any applicable confidentiality
considerations, examine and copy the books and records of such Credit Party or such Subsidiary, to
visit and inspect the Property of such Credit Party or such Subsidiary, and to discuss the business
operations and Property of such Credit Party or such Subsidiary with the officers and directors
thereof.

     Section 5.8 Maintenance of Property. Each Credit Party shall, and shall
cause each of its Subsidiaries to, maintain its owned, leased, or operated Property in good
condition and repair, normal wear and tear excepted; and shall abstain from, and cause each of its
Subsidiaries to abstain 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

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or operated Property involving the Environment that could reasonably be expected to result in
Response activities and that could reasonably be expected to cause a Material Adverse Change.

ARTICLE 6

NEGATIVE COVENANTS

     So long as any Obligation shall remain unpaid, any Lender shall have any Revolving Commitment
hereunder, or there shall exist any Letter of Credit Exposure, the Borrower agrees to comply with
the following covenants.

     Section 6.1 Debt. No Credit Party shall, nor shall it permit any of its
Subsidiaries 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) the Obligations;

     (b) intercompany Debt incurred in the ordinary course of business owed by any Credit
Party to any other Credit Party; provided that, if applicable, such Debt as an investment
is also permitted in Section 6.3;

     (c) Debt in the form of accounts payable to trade creditors for goods or services
and current operating liabilities (other than for borrowed money) which in each case are not more
than 90 days past due, in each case incurred in the ordinary course of business, as presently
conducted, unless contested in good faith and by appropriate proceedings;

     (d) (i) purchase money indebtedness and Capital Leases in effect on the Effective
Date and set forth in Schedule 6.1 and (ii) such other purchase money indebtedness or Capital
Leases incurred after the Effective Date; provided that, the aggregate outstanding
principal amount of such purchase money indebtedness and Capital Leases incurred after the
Effective Date shall not exceed $25,000,000.00;

     (e) Debt for borrowed money incurred after the Effective Date; provided that (i)
such Debt is unsecured or the Obligations hereunder are secured on a pari passu basis with such
Debt on terms satisfactory to the Administrative Agent, (ii) the covenants under instruments or
agreements governing the credit facility for such Debt (including, without limitation, indentures)
are not more restrictive than such covenants set forth in this Agreement as reasonably determined
by the Administrative Agent, (iii) the scheduled maturity of such Debt is at least 90 days past the
scheduled Maturity Date and no amortization payments, mandatory prepayments, mandatory redemptions
or mandatory repurchases of such Debt are required thereunder other than at the scheduled maturity
thereof (other than amortization payments, mandatory prepayments, mandatory redemptions or
mandatory repurchases required in respect of such Debt in connection with the occurrence of an
event of default under such Debt, a change of control of the issuer (including a disposition of all
or substantially all of the assets of the Borrower and its Subsidiaries, a liquidation or
dissolution of the Borrower, or any event constituting a Change of Control (as defined herein) or
an asset sale by the issuer or a Subsidiary thereof), (iv) the Borrower and its Subsidiaries are in
pro forma compliance with the covenants set forth in this Agreement, both before and after giving
effect to each incurrence of such Debt, and (v) the aggregate amount of such Debt shall not exceed
20% of the Borrower’s Tangible Net Worth when incurred;

     (f) Debt in respect of Hedging Arrangements; and

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     (g) the letter of credit with Wells Fargo Bank, National Association, issued to Southeastern
Alabama Gas, in the amount of $3,000,000.

     Section 6.2 Liens. No Credit Party shall, nor shall it permit any of its
Subsidiaries to, create, assume, incur, or suffer to exist any Lien on the Property of any Credit
Party or any 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) Liens imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s,
landlords’ 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 30 days or are being
contested in good faith by appropriate procedures or proceedings and for which adequate reserves
have been established;

     (c) 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;

     (d) Liens for taxes, assessment, or other governmental charges which are not yet due
and payable or which are being actively contested in good faith by appropriate proceedings;

     (e) Liens securing purchase money debt or Capital Lease obligations permitted under
Section 6.1(d); provided that each such Lien encumbers only the Property purchased in
connection with the creation of any such purchase money debt or the subject of any such Capital
Lease and the amount secured thereby is not increased;

     (f) Liens arising from precautionary UCC financing statements regarding operating
leases to the extent such operating leases are permitted hereby;

     (g) 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 any Credit
Party 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;

     (h) 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;

     (i) 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;

     (j) 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; and

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     (k) Liens to secure the Debt permitted under Section 6.1(e).

     Section 6.3 Investments. No Credit Party shall, nor shall it permit any of
its Subsidiaries to, make or hold any direct or indirect investment in any Person, including
capital contributions to the Person, investments in or the acquisition of the debt or equity
securities of the Person, or any loans, guaranties, trade credit, or other extensions of credit to
any Person, other than the following (collectively, the “Permitted Investments”):

     (a) investments in the form of trade credit to customers of a Credit Party arising
in the ordinary course of business and represented by accounts from such customers;

     (b) Liquid Investments;

     (c) loans, advances, or capital contributions to, or investments in, or purchases or
commitments to purchase any stock or other securities or evidences of indebtedness of or interests
in any Person (other than a Credit Party but including any Subsidiary that is domiciled in or
outside the U.S. that is not a Guarantor), including any travel advances or travel loans to
officers and employees; provided that, the aggregate amount of such loans, advances,
capital contributions, investments, purchases and commitments (other than appreciation) shall not
exceed 20% of the Borrower’s Tangible Net Worth when incurred;

     (d) loans and advances by a Credit Party to any other Credit Party;

     (e) investments in the form of Acquisitions permitted by Section 6.4; provided that,
if such Acquisition is of an equity interest or other securities in a Person (other than a Credit
Party), such investments shall also be permitted under clause(c) above;

     (f) creation of any additional Subsidiaries domiciled in the U.S. in compliance with Section
5.6; and

     (g) the Wilkinson Bonds.

     Section 6.4 Acquisitions. No Credit Party shall, nor shall it permit any of
its Subsidiaries to, make an Acquisition in a transaction or related series of transactions,
unless: (a) no Default or Event of Default exists both before and after giving effect to such
Acquisition; (b) such Acquisition is substantially related to, or will support or further, the
business of the Borrower and its Subsidiaries, taken as a whole, and is not hostile; and (c) both
before and after giving effect to such Acquisition, the Borrower is in pro forma compliance with
the covenants and representations set forth herein (and, if requested by the Administrative Agent,
a Responsible Officer of the Borrower has delivered to the Administrative Agent a Compliance
Certificate reflecting such pro forma compliance with Sections 6.15, 6.16 and 6.17).

     Section 6.5 Agreements Restricting Liens. No Credit Party shall, nor shall
it permit any of its Subsidiaries to, create, incur, assume or permit to exist any contract,
agreement or understanding (other than this Agreement, the Credit Documents and agreements
governing Debt permitted by Sections 6.1(d) and (e) to the extent such restrictions govern only the
asset financed pursuant to such Debt) which in any 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 Subsidiary from paying Restricted
Payments to the Borrower, or which requires the consent of or notice to other Persons in connection
therewith.

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     Section 6.6 Use of Proceeds; Use of Letters of Credit. No Credit Party
shall, nor shall it permit any of its Subsidiaries to: (a) use the proceeds of the Revolving
Advances for any purposes other than (i) to refinance the advances and other obligations
outstanding under the Existing Debt, (ii) working capital purposes of any Credit Party, and (iii)
other general corporate purposes of any Credit Party, including the payment of fees and expenses
related to the entering into of this Agreement and the other Credit Documents; or (b) use the
proceeds of the Swing Line Advances or the Letters of Credit for any purposes other than (i)
working capital purposes of any Credit Party and (ii) other general corporate purposes of any
Credit Party. No Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or
indirectly, 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.

     (a) No Credit Party shall, nor shall it permit any of its Subsidiaries to, merge or
consolidate with or into any other Person, except that the Borrower may merge with any of its
wholly-owned Subsidiaries and any Credit Party may merge or be consolidated with or into any other
Credit Party; provided that immediately after giving effect to any such proposed
transaction no Default would exist and, in the case of any such merger to which the Borrower or the
Borrower is a party, the Borrower or the Borrower is the surviving entity.

     (b) No Credit Party shall, nor shall it permit any of its Subsidiaries to, change
its name, change its state of incorporation, formation or organization, change its organizational
identification number or reorganize in another jurisdiction, create or suffer to exist any
Subsidiary not existing on the date of this Agreement, sell or otherwise dispose of any of its
ownership interest in any of its Subsidiaries, or in any manner rearrange its business structure as
it exists on the date of this Agreement, provided that (i) the Borrower may create or
acquire new Subsidiaries if such new Subsidiaries comply with Section 5.6 and such transactions
otherwise comply with the terms of this Agreement, and (ii) a Credit Party may change its name,
change its state of incorporation, formation or organization, and change its organizational number
provided that such Credit Party has given the Administrative Agent at least ten (10) days’ prior
notice of such change.

     (c) The Borrower shall not, nor shall it permit any of its Subsidiaries to, modify
or change its fiscal year or its method of accounting (other than as may be required to conform to
GAAP).

     Section 6.8 Sale of Assets. No Credit Party shall, nor shall it permit any
of its Subsidiaries to, sell, convey, or otherwise transfer any of its assets except that the
Borrower and its Subsidiaries may (a) sell inventory in the ordinary course of business; (b) sell,
convey, or otherwise transfer of equipment that is (i) obsolete, worn out, depleted or uneconomic
and disposed of in the ordinary course of business, or (ii) contemporaneously replaced by equipment
of at least comparable value and use; provided that no Event of Default shall exist or
shall result from such sale, conveyance, or transfer; and (c) sell, convey or otherwise transfer
assets outside the ordinary course of business; provided that, the aggregate net book value (or if
greater, the Fair Market Value) of all assets sold, conveyed or transferred outside the ordinary
course of business shall not exceed 10% of the Borrower’s Tangible Net Worth as set forth in the
financial statements most recently delivered under Section 5.2.

     Section 6.9 Restricted Payments. No Credit Party shall, nor shall it permit
any of its Subsidiaries to make any Restricted Payments except that (a) the Subsidiaries of the
Borrower may make Restricted Payments to the Borrower or any other Credit Party, and (b) so long as
no Default exists or would result from the making of such Restricted Payment, the Borrower may make
Restricted Payments in the form of cash dividends to its equity holders in an aggregate amount, in
any fiscal year, not to

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exceed 20% of the Borrower’s Tangible Net Worth for such fiscal year as shown in the audited
financial statements for the prior fiscal year.

     Section 6.10 Affiliate Transactions. No Credit Party shall, nor shall it
permit any of its Subsidiaries to, directly or indirectly, enter into or permit to exist any
transaction or series of transactions (including, but not limited to, the purchase, sale, lease or
exchange of Property, the making of any investment, the giving of any guaranty, the assumption of
any obligation or the rendering of any service) with any of their Affiliates which are not Credit
Parties unless such transaction or series of transactions is on terms no less favorable to the
Borrower or any Subsidiary, as applicable, than those that could be obtained in a comparable arm’s
length transaction with a Person that is not an affiliate.

     Section 6.11 Line of Business. No Credit Party shall, and shall not permit
any of its Subsidiaries to, change the character of the Borrower’s and its Subsidiaries collective
business as conducted on the Effective Date, or engage in any type of business not reasonably
related to the Borrower’s and its Subsidiaries collective business as of the Effective Date.

     Section 6.12 Hazardous Materials. No Credit Party shall, nor shall it
permit any of its Subsidiaries to, (a) create, handle, transport, use, or dispose of any Hazardous
Substance or Hazardous Waste, except in the ordinary course of its business and except in
compliance with Environmental Law other than to the extent that such non-compliance could not,
individually or in the aggregate, reasonably be expected to result in a Material Adverse Change or
in any liability on the Lenders or the Administrative Agent, and (b) Release any Hazardous
Substance or Hazardous Waste into the environment or permit any Credit Party’s or any Subsidiary’s
Property to be subjected to any Release of Hazardous Substance or Hazardous Waste, except in
compliance with Environmental Law other than to the extent that such non-compliance could not,
individually or in the aggregate, reasonably be expected to result in a Material Adverse Change or
in any liability on the Lenders or the Administrative Agent.

     Section 6.13 Compliance with ERISA. Except for matters that individually or
in the aggregate could not reasonably be expected to cause a Material Adverse Change, no Credit
Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly: (a) knowingly
engage in any transaction in connection with which the Borrower or any Subsidiary 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, any Subsidiary 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, a Subsidiary or member of the
Controlled Group is required to pay as contributions thereto; (d) permit to exist, or allow any
Subsidiary or any member of the Controlled Group to permit to exist, any accumulated funding
deficiency (or unpaid minimum required contribution for plan years after December 31, 2007) 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

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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 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 Borrower or any Subsidiary, 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 a material increase in current liability such that the
Borrower, any Subsidiary 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 Limitation on Hedging. No Credit Party shall, nor shall it
permit any of its Subsidiaries 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 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 its
Subsidiaries’ operations.

     Section 6.15 Minimum Tangible Net Worth. Borrower shall not permit its
Tangible Net Worth as of the end of each fiscal quarter, commencing with the quarter ending
December 31, 2009, to be less than an amount equal to (i) $370,000,000.00 plus (ii) an amount equal
to 50% of the Borrower’s consolidated Net Income for each fiscal quarter ending on or after March
31, 2010 (if such consolidated Net Income in the applicable quarter is greater than $0) plus (iii)
an amount equal to 100% of Equity Issuance Proceeds received by any Credit Party or any Subsidiary
after the Effective Date.

     Section 6.16 Leverage Ratio. Borrower shall not permit the Leverage Ratio
as of each fiscal quarter end, commencing with the quarter ended December 31, 2009, to be more than
2.50 to 1.00.

     Section 6.17 Fixed Charge Coverage Ratio. Borrower shall not permit the
Fixed Charge Coverage Ratio as of each fiscal quarter end, commencing with the quarter ended
December 31, 2009, to be less than 1.50 to 1.0.

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. Any Credit Party (i) fails to pay any principal when
due under this Agreement or (ii) fails to pay, within three Business Days of when 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 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 (except that
such materiality qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof) at the time it was made or
deemed made;

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     (c) Breach of Covenant. (i) Any breach by any Credit Party of any of the
covenants in Section 5.2(d), Section 5.2(g), Section 5.3(a), Section 5.6 or Article 6 of this
Agreement or the corresponding covenants in any Guaranty or (ii) any breach by any Credit Party of
any other covenant contained in this Agreement or any other Credit Document and such breach shall
remain unremedied for a period of thirty days after the earlier of (A) the date on which any Credit
Party has actual knowledge of such breach and (B) the date written notice of such breach shall have
been given to the Borrower by the Administrative Agent or any Lender (such grace period to be
applicable only in the event such Default can be remedied by corrective action of a Credit Party or
any of its Subsidiaries);

     (d) Guaranties. Any provisions in the Guaranties 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 such Guaranties; or any Guarantor
shall cease to exist other than as expressly permitted by the terms of this Agreement;

     (e) Cross-Default. (i) The Borrower or any Guarantor shall fail to pay any
principal of or premium or interest on its Debt which is outstanding in a principal amount of at
least $2,000,000 individually or when aggregated with all such Debt of the Borrower and the
Subsidiaries so in default (but excluding Debt evidenced by the Notes) when the same becomes due
and payable (whether by scheduled maturity, required prepayment, acceleration, demand or
otherwise), and such failure shall continue after the applicable grace period, if any, specified in
the agreement or instrument relating to such 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 $2,000,000 individually or when aggregated with all such Debt of the Borrower
and the Subsidiaries so in default (other than Debt evidenced by the Notes), 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 such Debt shall be declared to be due and
payable, or required to be prepaid (other than by a regularly scheduled required prepayment);
provided that, for purposes of this paragraph (f), the “principal amount” of the
obligations in respect of Hedging Arrangements at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that would be required to be paid if such Hedging
Arrangements were terminated at such time;

     (f) Bankruptcy and Insolvency. (i) Any Credit Party or any Subsidiary of
the Borrower shall terminate its existence or dissolve or (ii) any Credit Party or any Subsidiary
of the Borrower (A) 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 (B) 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 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 60 days, whether or not consecutive;

     (g) Adverse Judgment. The Borrower or any of its Subsidiaries 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 $2,000,000 and either (i) enforcement proceedings shall have been
commenced by any creditor upon such judgments or (ii) there shall be any period of 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;

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     (h) Termination Events. Any Termination Event with respect to a Plan shall
have occurred, and, 30 days after notice thereof shall have been given to the Borrower by the
Administrative Agent, 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 $2,000,000;

     (i) Plan Withdrawals. The Borrower or any member of the Controlled Group as
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 $2,000,000; or

     (j) 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(f)) 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 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 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 each of the Credit Parties,

     (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 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 Guaranties or any other
Credit Document for the ratable benefit of the Administrative Agent, the Swing Line Lender, the
Issuing Lender and the Lenders by appropriate proceedings.

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

     (a) the obligation of each 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 interest on the Notes, 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 each of the Credit Parties,

     (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

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an amount of cash equal to 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 Guaranties or any other
Credit Document for the ratable benefit of the Administrative Agent, the Swing Line Lender, the
Issuing Lender and the Lenders 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 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 or such Lender to or for the credit or the account of any Credit Party
against any and all of the obligations of the Borrower now or hereafter existing under this
Agreement, the Notes held by the Administrative Agent or such Lender, and the other Credit
Documents, irrespective of whether or not the Administrative Agent 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 and each Lender under this Section 7.4 are in addition to any other rights and remedies
(including, without limitation, other rights of set-off) which the Administrative Agent or such
Lender may have.

     Section 7.5 Remedies Cumulative, No Waiver. No right, power, or remedy
conferred to 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 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. Any Lender may cure any Event of Default without waiving the Event
of Default. No notice to or demand upon the Borrower or any other Credit Party shall entitle the
Borrower or any other Credit Party 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 subject to the terms of this Agreement, including the application of prepayments according to
Section 2.5 and Section 2.12. During the existence of an Event of Default, all payments and
collections received by the Administrative Agent shall be applied to the Obligations in accordance
with Section 2.12 and otherwise 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 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 costs or expenses incurred in connection with the exercise
of any right or remedy hereunder or under any other Credit Document;

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     SECOND, to the payment of all accrued interest constituting part of the Obligations
(the amounts so applied to be distributed ratably among the Lenders, 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, pro rata in
accordance with the principal amounts of the Obligations owed to them on the date of any
such distribution), and when applied to make distributions by the Administrative Agent to
pay the principal amount of the outstanding Borrowings, pro rata to the Lenders;

     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, pro rata in accordance with such amounts owed to them on the date
of any such distribution), and when applied to make distributions by the Administrative
Agent to pay such amounts payable to the Lenders under this Credit Agreement, pro rata to
the Lenders; 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 Lender 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 Lender; (b) shall not
be responsible to the Lenders 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 Lenders; 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

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legal counsel (including counsel for any Credit Party), independent accountants, and other
experts selected by the Administrative Agent. The 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
Lenders; 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 Lenders 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 or Event of Default unless the Administrative
Agent has received written notice from a Lender or the Borrower specifying such Default or Event of
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 or Event of 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 or Event of 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 or Event of Default as it shall deem advisable in the best interest of the Lenders.

     Section 8.4 Rights as Lender. With respect to its Revolving Commitments 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 Lender) 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 Lenders.

     Section 8.5 Indemnification.

     (a) THE LENDERS SEVERALLY AGREE TO INDEMNIFY THE ADMINISTRATIVE AGENT AND EACH
AFFILIATE THEREOF AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AND AGENTS (TO THE EXTENT
NOT REIMBURSED BY THE BORROWER), RATABLY ACCORDING TO THE RESPECTIVE PRINCIPAL AMOUNTS OF THE
ADVANCES THEN HELD BY EACH OF THEM (OR IF NO PRINCIPAL OF THE ADVANCES IS AT THE TIME OUTSTANDING,
RATABLY ACCORDING TO THE RESPECTIVE REVOLVING COMMITMENTS HELD BY EACH OF THEM IMMEDIATELY PRIOR TO
THE TERMINATION, EXPIRATION OR FULL REDUCTION OF EACH SUCH REVOLVING COMMITMENT), 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

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ADMINISTRATIVE AGENT IN ANY WAY RELATING TO OR ARISING OUT OF THIS AGREEMENT OR ANY ACTION
TAKEN OR OMITTED BY THE ADMINISTRATIVE AGENT UNDER THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT
(INCLUDING THE ADMINISTRATIVE AGENT’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 GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.
WITHOUT LIMITATION OF THE FOREGOING, EACH LENDER AGREES TO REIMBURSE THE ADMINISTRATIVE AGENT
PROMPTLY UPON DEMAND FOR ITS RATABLE SHARE (DETERMINED AS SET FORTH ABOVE IN THIS PARAGRAPH) OF ANY
OUT-OF-POCKET EXPENSES (INCLUDING COUNSEL FEES) INCURRED BY THE ADMINISTRATIVE AGENT 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 IS NOT REIMBURSED FOR SUCH BY THE BORROWER.

     (b) THE LENDERS SEVERALLY AGREE TO INDEMNIFY THE ISSUING LENDER AND EACH AFFILIATE
THEREOF AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AND AGENTS (TO THE EXTENT NOT
REIMBURSED BY THE BORROWER), RATABLY ACCORDING TO THE RESPECTIVE PRINCIPAL AMOUNTS OF THE REVOLVING
ADVANCES THEN HELD BY EACH OF THEM (OR IF NO PRINCIPAL OF THE REVOLVING ADVANCES IS AT THE TIME
OUTSTANDING, RATABLY ACCORDING TO THE RESPECTIVE AMOUNTS OF THE REVOLVING COMMITMENTS THEN HELD BY
EACH OF THEM, OR, IF NO SUCH PRINCIPAL AMOUNTS ARE THEN OUTSTANDING AND NO REVOLVING COMMITMENTS
ARE THEN EXISTING, RATABLY ACCORDING TO THE REVOLVING COMMITMENTS HELD BY EACH OF THEM IMMEDIATELY
PRIOR TO THE TERMINATION OR EXPIRATION THEREOF), 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 ISSUING LENDER IN ANY WAY RELATING TO OR ARISING OUT OF THIS AGREEMENT OR ANY ACTION
TAKEN OR OMITTED BY THE ISSUING LENDER UNDER THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT (INCLUDING
THE ISSUING 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 ISSUING LENDER’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. WITHOUT LIMITATION OF THE
FOREGOING, EACH LENDER AGREES TO REIMBURSE THE ISSUING LENDER PROMPTLY UPON DEMAND FOR ITS RATABLE
SHARE (DETERMINED AS SET FORTH ABOVE IN THIS PARAGRAPH) OF ANY OUT-OF-POCKET EXPENSES (INCLUDING
COUNSEL FEES) INCURRED BY THE ISSUING 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 ISSUING LENDER IS NOT
REIMBURSED FOR SUCH BY THE BORROWER.

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     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 Lender, and based on such documents and information as it has deemed appropriate, made its
own credit analysis of the Borrower and the other Credit Parties and decision to enter into this
Agreement and that it will, independently and without reliance upon the Administrative Agent or any
other Lender, 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 Lender 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 or the Issuing 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 or Issuing 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 or Issuing Lender
shall have been so appointed by the Majority Lenders with the consent of the Borrower, and shall
have accepted such appointment, within 30 days after the retiring Administrative Agent’s or Issuing
Lender’s giving of notice of resignation, then the retiring Administrative Agent or Issuing Lender
may, on behalf of the Lenders and the Borrower, appoint a successor Administrative Agent or Issuing
Lender, which shall be, in the case of a successor 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 and, in the case of the Issuing Lender, a Lender; provided
that, if the Administrative Agent or Issuing Lender shall notify the Borrower and the Lenders
that no qualifying Person has accepted such appointment, then such resignation shall nonetheless
become effective in accordance with such notice and (1) the retiring Administrative Agent or
Issuing Lender shall be discharged from its duties and obligations hereunder and under the other
Credit Documents (except that (A) in the case of any collateral security held by the Administrative
Agent on behalf of the Lenders or the Issuing Lender under any of the Credit Documents, the
retiring Administrative Agent shall continue to hold such collateral security until such time as a
successor Administrative Agent is appointed and (B) 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) and (2) all payments, communications and determinations provided to be made
by, to or through the retiring Administrative Agent shall instead be made by or to each Lender and
the Issuing Lender directly, until such time as the Required Lenders appoint a successor
Administrative Agent or Issuing Lender, as applicable, as provided for above in this paragraph.
Upon the acceptance of any appointment as Administrative Agent or Issuing Lender by a successor
Administrative Agent or Issuing Lender, such successor Administrative Agent or Issuing Lender shall
thereupon succeed to and become vested with all the rights, powers, privileges, and duties of the
retiring Administrative Agent or Issuing Lender, and the retiring Administrative Agent or Issuing
Lender shall be discharged from its duties and obligations under this Agreement and the other
Credit Documents, except that the retiring 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 or Issuing Lender’s resignation as Administrative Agent
or Issuing Lender, the provisions of this

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Article 8 shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent or Issuing Lender under this Agreement and the other Credit
Documents.

ARTICLE 9

MISCELLANEOUS

     Section 9.1 Costs and Expenses. The Borrower agrees to pay on demand

     (a) all reasonable 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 reasonable costs
associated with field examinations, appraisals, and the reasonable fees and out-of-pocket expenses
of outside counsel for Administrative Agent (but not of other Lenders), with respect to advising
the Administrative Agent as to its rights and responsibilities under this Agreement, and

     (b) all out-of-pocket costs and expenses, if any, of the Administrative Agent and each Lender
(including outside counsel fees and expenses 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; Waiver of Damages.

     (A) INDEMNIFICATION. EACH CREDIT PARTY HERETO AGREES TO, JOINTLY AND SEVERALLY,
INDEMNIFY AND HOLD HARMLESS THE ADMINISTRATIVE AGENT, THE ISSUING LENDER AND EACH LENDER AND EACH
OF THEIR AFFILIATES AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, AND ADVISORS
(EACH, AN “INDEMNITEE”) 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 INDEMNITEE, 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 INDEMNITEE’S OWN NEGLIGENCE, EXCEPT TO THE EXTENT SUCH
CLAIM, DAMAGE, LOSS, LIABILITY, COST, OR EXPENSE IS FOUND IN A FINAL, NON-APPEALABLE JUDGMENT BY A
COURT OF COMPETENT JURISDICTION TO HAVE RESULTED FROM SUCH INDEMNITEE’S GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT. 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 ANY CREDIT PARTY, ITS DIRECTORS, SHAREHOLDERS OR CREDITORS
OR AN INDEMNITEE OR ANY OTHER PERSON OR ANY INDEMNITEE IS OTHERWISE A PARTY THERETO AND WHETHER OR
NOT THE TRANSACTIONS CONTEMPLATED HEREBY ARE CONSUMMATED. THE FOREGOING INDEMNITY AND HOLD
HARMLESS SHALL NOT APPLY TO ANY CLAIMS, DAMAGES, LOSSES, LIABILITIES, COSTS OR EXPENSES THAT IS
INCURRED BY OR ASSERTED OR AWARDED AGAINST ANY INDEMNITEE DIRECTLY FOR, OR AS A DIRECT CONSEQUENCE
OF, SUCH INDEMNITEE BEING A DEFAULTING LENDER UNDER CLAUSE (A) OR (B) OF THE DEFINITION OF

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“DEFAULTING LENDER”, WHETHER ASSERTED BY ANY CREDIT PARTY, THE ADMINISTRATIVE AGENT, THE
ISSUING LENDER OR THE SWING LINE LENDER.

     (b) Waiver of Consequential Damages, Etc.

     (i) To the fullest extent permitted by applicable law, no Credit Party shall assert,
agrees not to assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this Agreement, any
other Credit Document or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, any Advance or Letter of Credit or the use of the proceeds
thereof. No Indemnitee referred to in subsection (a) above shall be liable for any damages
arising from the use by unintended recipients of any information or other materials
distributed to such unintended recipients by such Indemnitee through telecommunications,
electronic or other information transmission systems in connection with this Agreement or
the other Credit Documents or the transactions contemplated hereby or thereby other than for
direct or actual damages resulting from the gross negligence or willful misconduct of such
Indemnitee as determined by a final and nonappealable judgment of a court of competent
jurisdiction.

     (ii) To the fullest extent permitted by applicable law, no Indemnitee shall assert,
agrees not to assert, and hereby waives, any claim against any Credit Party, on any theory
of liability, for special, indirect, consequential or punitive damages (as opposed to direct
or actual damages) arising out of, in connection with, or as a result of, this Agreement,
any other Credit Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Advance or Letter of Credit or the use of
the proceeds thereof other than for such claims provide for in this Agreement.

     (c) Survival. Without prejudice to the survival of any other agreement of the Credit
Parties hereunder, the agreements and obligations of the Credit Parties contained in this Section
9.2 shall survive the termination of this Agreement, the termination of all Revolving Commitments,
and 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:

     (a) no amendment, waiver, or consent shall, unless in writing and signed by all the
Lenders and the Borrower, do any of the following: (i) reduce the principal of, or interest on,
the Revolving Notes, (ii) postpone or extend any date fixed for any payment of principal of, or
interest on, the Revolving Notes, including, without limitation, the Maturity Date, (iii) change
the number of Lenders which shall be required for the Lenders to take any action hereunder or under
any other Credit Document, or (iv) amend Section 2.2(f)(ii) or waive or consent to any departure by
the Borrower from the terms of thereof;

     (b) no amendment, waiver, or consent shall, unless in writing and signed by all the
Lenders and the Borrower, do any of the following: (i) waive any of the conditions specified in
Article 3, (ii) reduce any fees or other amounts payable hereunder or under any other Credit
Document (other than those specifically addressed above in this Section 9.3), (iii) increase the
aggregate Revolving Commitments, (iv) postpone or extend any date fixed for any payment of any fees
or other amounts payable hereunder (other than those otherwise specifically addressed in this
Section 9.3), (v) amend

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Section 2.12(e), Section 7.6, this Section 9.3 or any other provision in any Credit Document
which expressly requires the consent of, or action or waiver by, all of the Lenders, (vi) release
any Guarantor from its obligation under any Guaranty or, except as specifically provided in the
Credit Documents and as a result of transactions permitted by the terms of this Agreement, release
all or a material portion of collateral, if any, securing the Obligations; or (vii) amend the
definitions of “Majority Lenders” or “Maximum Exposure Amount”;

     (c) no Revolving Commitment of a Lender or any obligations of a Lender may be
increased without such Lender’s written consent;

     (d) no amendment, waiver, or consent shall, unless in writing and signed by the
Administrative Agent in addition to the Lenders required above to take such action, affect the
rights or duties of the Administrative Agent under this Agreement or any other Credit Document;

     (e) no amendment, waiver or consent shall, unless in writing and signed by the
Issuing Lender in addition to the Lenders required above to take such action, affect the rights or
duties of the Issuing Lender under this Agreement or any other Credit Document; and

     (f) no amendment, waiver or consent shall, unless in writing and signed by the Swing
Line Lender in addition to the Lenders required above to take such action, affect the rights or
duties of the Swing Line Lender 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 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 Lenders, none of which investigations
shall diminish any Lender’s right to rely on such representations and warranties. All obligations
of the Borrower or any other Credit Party 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 upon the
satisfaction of the conditions set forth in Section 3.1 above, and thereafter shall be binding upon
and inure to the benefit of the Borrower, the Administrative Agent, and each Lender and their
respective successors and assigns, except that neither the Borrower nor any other Credit Party
shall 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 Revolving 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 with respect to the Revolving Commitments shall be in an amount at least equal
to $5,000,000; (iii) each assignment of a

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Lender’s rights and obligations with respect to Revolving Advances and its Revolving
Commitment shall be of an constant, and not varying percentage of all of its rights and obligations
under this Agreement as a Lender and the Revolving 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 and Revolving Commitments; 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; provided that such processing fee shall
not be required for the initial assignments made by Wells Fargo as a Lender in connection with the
initial syndication of its Revolving Commitments hereunder. 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 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 required, 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
Section 9.9 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 Revolving 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 Credit Parties, 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.

     (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, obligations or rights and obligations under this Agreement (including all or a
portion of its Revolving 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 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 Revolving 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 Section 9.8.

     Section 9.8 Confidentiality. The Administrative Agent, the Swing Line
Lender, the Issuing Lender, and each Lender (each a “Lending Party”) agree to keep
confidential any information furnished or made available to it by any Credit Party pursuant to this
Agreement and identified by such Credit Party as proprietary or confidential; provided that
nothing herein shall prevent any Lending Party from disclosing such information (a) to any other
Lending Party or any Affiliate of any Lending Party, or any officer, director, employee, agent, or
advisor of any Lending Party or Affiliate of any Lending Party for purposes of administering,
negotiating, considering, processing, implementing, syndicating, assigning, or evaluating the
credit facilities provided herein and the transactions contemplated hereby, (b) to any other Person
if directly incidental to the administration of the credit facilities provided herein, (c) as
required by any Legal Requirement, (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 other 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 right or 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 similar to those contained in
this Section 9.8. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, nothing in this
Agreement shall (a) restrict any Lending Party from providing information to any bank or other
regulatory or governmental authorities, including the Federal Reserve Board and its supervisory
staff; (b) require or permit any Lending Party to disclose to any Credit Party that any information
will be or was provided to the Federal Reserve Board or any of its supervisory staff; or (c)
require or permit any Lending Party to inform any Credit Party of a current or upcoming Federal
Reserve Board examination or any nonpublic Federal Reserve Board supervisory initiative or action.

     Section 9.9 Notices, Etc. 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 9.9), sent by a nationally
recognized overnight courier, or sent by certified mail, return receipt requested as follows: if to
a Credit Party, as specified on Schedule II and if to any Lender, the Swing Line Lender, or the
Issuing Lender, at its credit contact specified under its name on Schedule II. Each party may
change its notice address by written notification to the other parties. All such notices and
communications shall be effective when delivered, except that notices and communications to any
Lender, Swing Line Lender, or the Issuing Lender pursuant to Article 2 shall not be effective until
received and, in the case of telecopy, such receipt is confirmed by such Lender, Swing Line Lender
or Issuing Lender, as applicable, verbally or in writing.

     Section 9.10 Business Loans. Each Credit Party warrants and represents that
the Obligations evidenced by the Notes 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 9.11 Usury Not Intended. It is the intent of each Credit Party and
each Lender in the execution and performance of this Agreement and the other Credit Documents to
contract in strict

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compliance with applicable usury laws, including conflicts of law concepts, governing the
Advances of each 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 Lenders and the
Credit Parties 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 each Lender receiving same shall credit the same on the
principal of its Notes (or if such Notes shall have been paid in full, refund said excess to the
Borrower). In the event that the maturity of the Notes are accelerated by reason of any election
of the holder thereof resulting from any Event of Default under this Agreement or otherwise, or in
the event of any required or permitted prepayment, then such consideration that constitutes
interest may never include more than the Maximum Rate, and excess interest, if any, provided for in
this Agreement or otherwise shall be canceled automatically as of the date of such acceleration or
prepayment and, if theretofore paid, shall be credited on the applicable Notes (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 Credit Parties 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 the Notes all amounts considered to be 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 9.12 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 9.13 Governing Law. 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

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the indicated (weekly) rate ceiling from time to time in effect. Each Letter of Credit shall
be governed by either (i) the Uniform Customs and Practice for Documentary Credits (2007 Revision),
International Chamber of Commerce Publication No. 600, or (ii) the International Standby Practices
(ISP98), International Chamber of Commerce Publication No. 590, in either case, including any
subsequent revisions thereof approved by a Congress of the International Chamber of Commerce and
adhered to by the Issuing Lender.

     Section 9.14 Submission to Jurisdiction. Each Credit Party 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 each Credit Party hereby irrevocably agrees that all claims in respect of such
action or proceeding may be heard and determined in such court. Each Credit Party 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. Each Credit Party 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 Credit Party at its address set forth in this
Agreement. Each Credit Party hereby 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 Lender to
serve legal process in any other manner permitted by the law or affect the right of any Lender to
bring any action or proceeding against any Credit Party or its Property in the courts of any other
jurisdiction.

     Section 9.15 Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same agreement.

     Section 9.16 Waiver of Jury. EACH CREDIT PARTY, 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 9.17 USA Patriot Act. Each Lender that is subject to the Patriot
Act and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies each
Credit Party that pursuant to the requirements of the Patriot Act it is required to obtain, verify
and record information that identifies such Credit Party, which information includes the name and
address of such Credit Party and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify such Credit Party in accordance with the Patriot
Act.

     PURSUANT TO SECTION 26.02 OF THE TEXAS BUSINESS AND COMMERCE CODE, A LOAN AGREEMENT IN WHICH
THE AMOUNT INVOLVED IN THE LOAN AGREEMENT EXCEEDS $50,000 IN VALUE IS NOT ENFORCEABLE UNLESS THE
LOAN AGREEMENT IS IN WRITING AND SIGNED BY THE PARTY TO BE BOUND OR THAT PARTY’S AUTHORIZED
REPRESENTATIVE.

     THE RIGHTS AND OBLIGATIONS OF THE PARTIES TO AN AGREEMENT SUBJECT TO THE PRECEDING PARAGRAPH
SHALL BE DETERMINED SOLELY FROM THE WRITTEN LOAN AGREEMENT, AND ANY PRIOR ORAL AGREEMENTS BETWEEN
THE PARTIES ARE SUPERSEDED BY AND MERGED INTO THE LOAN AGREEMENT. THIS WRITTEN AGREEMENT AND THE
CREDIT DOCUMENTS, AS DEFINED IN THIS

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AGREEMENT, REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES WITH RESPECT TO THE SUBJECT MATTERS
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.

[Remainder of this page intentionally left blank. Signature pages follow.]

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     EXECUTED as of the date first above written.

	 	 	 	 	 
	 	BORROWER:

CARBO CERAMICS INC.

 	 
	 	By:  	/s/ Ernesto Bautista III
 	 
	 	 	Ernesto Bautista III 	 
	 	 	Vice President and Chief Financial Officer 	 
	 

Signature page to Credit Agreement

(CARBO Ceramics Inc.)

 

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT:

WELLS FARGO BANK,

      NATIONAL ASSOCIATION

      as Administrative Agent, Swing Line
Lender and Issuing Lender

 	 
	 	By:  	/s/ Michael Janak
 	 
	 	 	Michael Janak 	 
	 	 	Vice President & Senior Relationship Manager 	 
	 
	 	LENDERS:

WELLS FARGO BANK,

      NATIONAL ASSOCIATION

      as a Lender

 	 
	 	By:  	/s/ Michael Janak
 	 
	 	 	Michael Janak 	 
	 	 	Vice President & Senior Relationship Manager 	 
	 

Signature page to Credit Agreement

(CARBO Ceramics Inc.)

 

 

SCHEDULE I

Pricing Schedule

The Applicable Margin with respect to Commitment Fee, Revolving Advances, and Swing Line Advances
shall be determined in accordance with the following Table based on the Borrower’s 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 such 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. 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 the delivered pursuant
to Section 5.2, the Applicable Margin with respect to Commitment Fee, Revolving Advances, and Swing
Line Advances shall be determined at Level III 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 Borrower shall be deemed to be at Level I described below until
delivery of its audited financial statements and corresponding Compliance Certificate for the
fiscal year ending December 31, 2009. Notwithstanding anything to the contrary contained herein,
the determination of the Applicable Margin for any period shall be subject to the provisions of
Section 2.8(c).

	 	 	 	 	 	 	 	 	 
	Applicable	 	 	 	LIBO	 	Base Rate	 	Commitment
	Margin	 	Leverage Ratio	 	Advances	 	Advances	 	Fee
	Level I
	 	Less than 1.50	 	2.50%	 	1.50%	 	0.50%
	Level II
	 	Equal to or greater than 1.50 but less than 2.00	 	2.75%	 	1.75%	 	0.50%
	Level III
	 	Equal to or greater than 2.00	 	3.00%	 	2.00%	 	0.50%

I

 

 

SCHEDULE II

Commitments, Contact Information

	 	 	 	 	 
	ADMINISTRATIVE AGENT

	 
	Wells Fargo Bank, National Association

	 	Address:
	 	1740 Broadway, MAC C7300-034
	 

	 	 	 	Denver, CO 80209
	 

	 	Attn:
	 	Agency Syndication
	 

	 	Telephone:
	 	(303) 863-5378
	 

	 	Facsimile:
	 	(303) 863-5533
	 
	 	 	 	 
	 

	 	with a copy to:	 	 
	 

	 	Address:
	 	1000 Louisiana, 9th Floor
	 

	 	 	 	MAC T5002-090
	 

	 	 	 	Houston, Texas 77002
	 

	 	Attn:
	 	Michael Janak, Vice President
	 

	 	Telephone:
	 	(713) 319-1924
	 

	 	Facsimile:
	 	(713) 739-1087
	 
	 	 	 	 
	CREDIT PARTIES

	 
	Borrower/Guarantors	 	Address for Notices:	 	 
	 	 	 	 	Energy Center II
	 	 	 	 	575 N. Dairy Ashford Rd., Ste 300
	 	 	 	 	Houston, TX 77079
	 

	 	Attn:
	 	Ernesto Bautista III
	 

	 	 	 	Chief Financial Officer
	 

	 	Telephone:
	 	(281) 931-8884
	 

	 	Facsimile:
	 	(281) 931-8302
	 
	 	 	 	 
	LENDERS

	 
	Wells Fargo Bank, National Association	 	Address for Notices:
	 

	 	 	 	1740 Broadway, MAC C7300-059
	 

	 	 	 	Denver, CO 80203-4500
	Revolving Commitment:

	 	Attn:
	 	Wholesale Loan Servicing
	$10,000,000

	 	Telephone:
	 	(303) 863-5326
	 

	 	Facsimile:
	 	(303) 863-2729
	 
	 	 	 	 
	 

	 	with a copy to:	 	 
	 

	 	Address:
	 	1000 Louisiana, 9th Floor
	 

	 	 	 	MAC T5002-090
	 

	 	 	 	Houston, Texas 77002
	 

	 	Attn:
	 	Michael Janak, Vice President
	 

	 	Telephone:
	 	(713) 319-1924
	 

	 	Facsimile:
	 	(713) 739-1087

I

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