Document:

exv10w2

Exhibit 10.2

Supplemental Agreement No. 2

to

Purchase Agreement No. 3219

between

The Boeing Company

and

American Airlines, Inc.

Relating to Boeing Model 787-9 Aircraft

          THIS SUPPLEMENTAL AGREEMENT No. 2, entered into as of July 21, 2010, (SA 2) by and
between THE BOEING COMPANY, a Delaware corporation with offices in Seattle, Washington, (Boeing)
and AMERICAN AIRLINES, INC., a Delaware corporation with offices in Fort Worth, Texas, together
with its successors and permitted assigns (Customer);

          WHEREAS, Boeing and Customer entered into Purchase Agreement No. 3219 dated as of October 15,
2008, relating to Boeing Model 787-9 aircraft (the Purchase Agreement). Capitalized terms used
herein without definitions shall have the meanings specified therefore in such Purchase Agreement;

          WHEREAS, on or about June 22, 2009, Boeing provided Customer with a revised delivery schedule
for the Aircraft and did so in the form of Supplemental Agreement No. 1. Supplemental Agreement
No. 1 was never executed by Customer and Boeing thus resulting in this Supplemental Agreement No. 2
being the first such supplement to Purchase Agreement No. 3219.

          WHEREAS, the deliveries of the Aircraft have been rescheduled as set forth herein;

          WHEREAS, Customer and Boeing entered into Letter Agreement No. 6-1162-CLO-1031 entitled
Performance Guarantee Matters whereby Boeing had the obligation to provide to Customer
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT];

          WHEREAS, Customer has selected the [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT];

					
	 	 	 	 	 
	P.A. No. 3219
	 	SA-2
	 	 
	AAL	 	 	 	 
	 
	 	BOEING PROPRIETARY	 	 

 

 

NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to
amend the Purchase Agreement as follows:

1. The Table of Contents is removed in its entirety and replaced with a revised Table
of Contents, attached hereto, which sets forth the appropriate SA-2 references. The
Table of Contents is hereby made part of the Purchase Agreement.

2. Table 1 entitled “Aircraft Delivery, Description, Price and [CONFIDENTIAL PORTION
OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] is deleted in its entirety and replaced with a revised Table 1 R1, attached
hereto, which reflects revised delivery dates for the Firm Aircraft. Table 1 R1 is
hereby made part of the Purchase Agreement.

3. Table 1 entitled “Aircraft Delivery, Description, Price and [CONFIDENTIAL PORTION
OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] is deleted in its entirety as Customer has chosen the [CONFIDENTIAL PORTION
OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT].

4. Supplemental Exhibit BFE1 entitled “Buyer Furnished Equipment Variables” is deleted
in its entirety and replaced with a revised BFE1, attached hereto, which sets forth
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]. Supplemental Exhibit BFE1 is hereby made part of
the Purchase Agreement.

5. Supplemental Exhibit EE1 entitled [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] is deleted in its
entirety as Customer has chosen the [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

6. Letter Agreement No. 6-1162-CLO-1031 entitled “Performance Guarantee Matters” is
deleted in its entirety and replaced with a revised letter agreement, which sets for
the [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO
A

					
	 	 	 	 	 
	P.A. No. 3219
	 	SA-2
	 	 
	AAL	 	 	 	 
	 
	 	BOEING PROPRIETARY	 	 

 

 

REQUEST FOR CONFIDENTIAL TREATMENT]. Letter Agreement No. 6-1162-CLO-1031R1 is hereby
made part of the Purchase Agreement.

7. Letter Agreement No. 6-1162-CLO-1032 entitled [CONFIDENTIAL PORTION OMITTED AND
FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
is deleted in its entirety and replaced with a revised letter agreement, which sets
forth revised dates for [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]. Letter Agreement No.
6-1162-CLO-1032R1 is hereby made part of the Purchase Agreement.

8. Letter Agreement No. 6-1162-CLO-1045 entitled [CONFIDENTIAL PORTION OMITTED AND
FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
is deleted in its entirety and replaced with a revised letter agreement, which sets
forth the current execution date as it relates to the Aircraft set forth in Table 1 and
Attachment C to Letter Agreement No. 6-1162-TRW-0664 entitled Aircraft Purchase Rights
and [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO
A REQUEST FOR CONFIDENTIAL TREATMENT]. Letter Agreement No. No. 6-1162-CLO-1045R1 is
hereby made part of the Purchase Agreement.

9. Letter Agreement No. 6-1162-CLO-1048 entitled “Final Matters” is deleted in its
entirety in consideration of the terms and conditions set forth in this Supplemental
Agreement No. 2.

10. Attachments A, B, and C to Letter Agreement No. 6-1162-TRW-0664 entitled “Aircraft
Purchase Rights and [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]” are deleted in their
entirety and replaced with revised Attachments A, B, and C, which set forth the revised
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]. Revised Attachments A, B, and C are hereby made
part of the Purchase Agreement.

11. Letter Agreement No. 6-1162-TRW-0665 entitled [CONFIDENTIAL PORTION OMITTED AND
FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
is deleted in its entirety as Customer has chosen the [CONFIDENTIAL PORTION OMITTED AND
FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

					
	 	 	 	 	 
	P.A. No. 3219
	 	SA-2
	 	 
	AAL	 	 	 	 
	 
	 	BOEING PROPRIETARY	 	 

 

 

12. Letter Agreement No. 6-1162-TRW-0666 entitled [CONFIDENTIAL PORTION OMITTED AND
FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
is deleted in its entirety as Customer has chosen the [CONFIDENTIAL PORTION OMITTED AND
FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

13. Letter Agreement No. 6-1162-TRW-0674 entitled “Business Considerations” is deleted
in its entirety and replaced with a revised letter agreement, which [CONFIDENTIAL
PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT]. Letter Agreement No. 6-1162-TRW-0674R1 is hereby made part of
the Purchase Agreement.

     [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

					
	 	 	 	 	 
	P.A. No. 3219
	 	SA-2
	 	 
	AAL	 	 	 	 
	 
	 	BOEING PROPRIETARY	 	 

 

 

          The Purchase Agreement will be deemed to be amended to the extent provided herein and as so
amended will continue in full force and effect. In the event of any inconsistency between the
above provisions and the provisions contained in the referenced exhibits to this Supplemental
Agreement, the terms of the exhibits will control.

EXECUTED IN DUPLICATE as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 

	THE BOEING COMPANY	 	 	 	AMERICAN AIRLINES, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	
	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	Its:

	 	Attorney-In-Fact
	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

					
	 	 	 	 	 
	P.A. No. 3219
	 	SA-2
	 	 
	AAL	 	 	 	 
	 
	 	BOEING PROPRIETARY	 	 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	SA	 	 	 	 
	 	 	NUMBER	 	 	 	 
	ARTICLES
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1. Quantity, Model and Description
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	2. Delivery Schedule
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	3. Price
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	4. Payment
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	5. Miscellaneous
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	6. Confidential Treatment
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	TABLE
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1. Aircraft Information Table – TRENT
	 	SA-2
	1 R1. Aircraft Information Table – GENX
	 	SA-2	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EXHIBIT
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	A. Aircraft Configuration
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	B. Aircraft Delivery Requirements and Responsibilities
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	C. Defined Terms
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SUPPLEMENTAL EXHIBITS
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	AE1. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	BFE1. Buyer Furnished Equipment Variables
	 	SA-2	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	CS1. 787 Customer Support Document
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EE1. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 	 	 

					
	 	 	 	 	 
	P.A. No. 3219
	 	 
	 	SA-2
	 
	 	BOEING PROPRIETARY	 	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	SA	 	 	 	 
	 	 	NUMBER	 	 	 	 
	EE1. [CONFIDENTIAL PORTION OMITTED AND FILED
SEPARATELY THE WITH COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT]
	 	SA-2
	 
	 	 	 	 	 	 	 	 
	SLP1. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 	 	 

					
	 	 	 	 	 
	P.A. No. 3219
	 	 
	 	SA-2
	 
	 	BOEING PROPRIETARY	 	 

ii

 

	 	 	 	 	 	 	 
	 	 	SA	 	 	 	 
	 	 	NUMBER	 	 	 	 
	LETTER AGREEMENTS
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	3219-01 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 
	3219-02 Special Terms – Seats and In-Flight Entertainment
	 	 	 	 	 	 
	3219-04 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 
	3219-05 Spare Parts Commitments
	 	 	 	 	 	 
	3219-06 Spare Parts Initial Provisioning
	 	 	 	 	 	 
	3219-08 Open Configuration Matters
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-AKP-071R1 Purchase Obligations
	 	 	 	 	 	 
	6-1162-AKP-072R2 [CONFIDENTIAL PORTION OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO
A REQUEST FOR CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 
	6-1162-AKP-073R1 Accident Claims and Litigation
	 	 	 	 	 	 
	6-1162-CLO-1031R1 [CONFIDENTIAL PORTION OMITTED
AND FILED SEPARATELY WITH THE COMMISSION PURSUANT
TO A REQUEST FOR CONFIDENTIAL TREATMENT]
	 	SA-2	 	 	 	 
	6-1162-CLO-1032R1 [CONFIDENTIAL PORTION OMITTED  AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]
6-1162-CLO-1039 [CONFIDENTIAL PORTION OMITTED  AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]

6-1162-CLO-1043 787 Inspection Process
	 	SA-2	 	 	 	 
	6-1162-CLO-1042 [CONFIDENTIAL PORTION OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO
A REQUEST FOR CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 
	6-1162-CLO-1045R1 [CONFIDENTIAL PORTION OMITTED
AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]
	 	SA-2	 	 	 	 
	6-1162-CLO-1046 [CONFIDENTIAL PORTION OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO
A REQUEST FOR CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 
	6-1162-CLO-1047 [CONFIDENTIAL PORTION OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO
A REQUEST FOR CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 
	6-1162-CLO-1048 Final Matters
	 	SA-2
	6-1162-CLO-1049 CS1 Matters
	 	 	 	 	 	 
	6-1162-TRW-0664 Aircraft Purchase Rights and Substitution Rights
	 	 	 	 	 	 
	Attachment A – MADP Exercise Dates
	 	SA-2	 	 	 	 
	Attachment B – QADP Exercise Dates
	 	SA-2	 	 	 	 

					
	 	 	 	 	 
	P.A. No. 3219
	 	 
	 	SA-2
	 
	 	BOEING PROPRIETARY	 	 

iii

 

	 	 	 	 	 	 	 
	 	 	SA	 	 	 	 
	 	 	NUMBER	 	 	 	 
	Attachment C – MADP & QADP
	 	SA-2	 	 	 	 
	Rights Aircraft
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-TRW-0665 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT
TO A REQUEST FOR CONFIDENTIAL TREATMENT]
	 	SA-2
	6-1162-TRW-0666 [CONFIDENTIAL PORTION OMITTED
AND FILED SEPARATELY WITH THE COMMISSION PURSUANT
TO A REQUEST FOR CONFIDENTIAL TREATMENT]
	 	SA-2
	6-1162-TRW-0667 [CONFIDENTIAL PORTION OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 
	6-1162-TRW-0668 [CONFIDENTIAL PORTION OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 
	6-1162-TRW-0670 Miscellaneous Commitments for Model 787 Aircraft
	 	 	 	 	 	 
	6-1162-TRW-0671 [CONFIDENTIAL PORTION OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO
A REQUEST FOR CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 
	6-1162-TRW-0672 [CONFIDENTIAL PORTION OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO
A REQUEST FOR CONFIDENTIAL TREATMENT]
	 	 	 	 	 	 
	6-1162-TRW-0673 Confidentiality
	 	 	 	 	 	 
	6-1162-TRW-0674R1 Business Considerations
	 	SA-2	 	 	 	 

					
	 	 	 	 	 
	P.A. No. 3219
	 	 
	 	SA-2
	 
	 	BOEING PROPRIETARY	 	 

iv

 

Table 1 R1 To

Purchase Agreement No. PA-03219

Aircraft Delivery, Description, Price and

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO

A REQUEST FOR CONFIDENTIAL TREATMENT]

					
	 	 	 	 	 
	AAL-PA-03219 54329-1F.TXT
	 	Boeing Proprietary
	 	 
	 
	 	 	 	SA-2

Page 1

 

Table 1 R1 To

Purchase Agreement No. PA-03219

Aircraft Delivery, Description, Price and

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A

REQUEST FOR CONFIDENTIAL TREATMENT]

					
	 	 	 	 	 
	AAL-PA-03219 54329-1F.TXT
	 	Boeing Proprietary
	 	 
	 
	 	 	 	SA-2

Page 2

 

Table 1 R1 To

Purchase Agreement No. PA-03219

Aircraft Delivery, Description, Price and

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A

REQUEST FOR CONFIDENTIAL TREATMENT]

					
	 	 	 	 	 
	AAL-PA-03219 54329-1F.TXT
	 	Boeing Proprietary
	 	 
	 
	 	 	 	SA-2

Page 3

 

BUYER FURNISHED EQUIPMENT VARIABLES

between

THE BOEING COMPANY

and

AMERICAN AIRLINES, INC.

Supplemental Exhibit BFE1 to Purchase Agreement Number 3219

					
	 	 	 	 	 
	P.A. No. 3219
	 	BFE1
	 	SA-2

BOEING PROPRIETARY

 

 

BUYER FURNISHED EQUIPMENT VARIABLES

relating to

BOEING MODEL 787 AIRCRAFT

This Supplemental Exhibit BFE1 contains vendor selection dates, on-dock dates and other
requirements applicable to the Aircraft.

1. Supplier Selection.

     Customer will select and notify Boeing of the suppliers of the following items by the
following dates:

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT]

2. Certification Document.

     [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

3. Import

Customer will insure that Customer’s BFE suppliers provide sufficient information to enable Boeing,
when acting as Importer of Record for Customer’s BFE, to comply with all applicable provisions of
the U.S. Customs Service.

					
	 	 	 	 	 
	P.A. No. 3219
	 	BFE1-1
	 	SA-2

BOEING PROPRIETARY

 

 

4. Delivery Dates and Other Information

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT]:

Item Preliminary On-Dock Dates

Premium Class (PC) Seats                 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

Lifevests                [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]

(As specified in Option Number ___)

Galley Meal Carts                [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT
TO A REQUEST FOR CONFIDENTIAL TREATMENT]

(As specified in Option Number ___)

					
	 	 	 	 	 
	P.A. No. 3219
	 	BFE1-2
	 	SA-2

BOEING PROPRIETARY

 

 

6-1162-CLO-1031R1

American Airlines, Inc.

P.O. Box 619616

Dallas-Fort Worth Airport

Texas 75261-9616

Subject: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]

			
	Reference:	 	(a) Purchase Agreement No. 3219 (the Purchase Agreement) between The Boeing Company
(Boeing) and American Airlines, Inc. (Customer) relating to Model 787-923 aircraft (the
Aircraft)

(b) Letter Agreement No. 6-1162-TRW-0671 entitled Performance Guarantees (the
Performance Guarantees)

     This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All
terms used but not defined in this Letter Agreement have the same meaning as in the Purchase
Agreement.

1. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

     [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

     [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

     [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

			
	 	 	 
	P.A. No. 3219
	 	SA-2
	Performance Guarantee Matters	 	 

BOEING PROPRIETARY

 

 

American Airlines, Inc.

6-1162-CLO-1031R1 Page 2

2. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

     [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

3. Assignment.

     Notwithstanding any other provisions of the Purchase Agreement, the rights and obligations
described in this Letter Agreement [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

			
	 	 	 
	P.A. No. 3219
	 	SA-2
	Performance Guarantee Matters	 	 

BOEING PROPRIETARY

 

 

American Airlines, Inc.

6-1162-CLO-1031R1 Page 3

4. Confidential Treatment.

     The information contained herein represents confidential business information and has value
precisely because it is not available generally or to other parties. Customer will limit the
disclosure of its contents to employees of Customer with a need to know the contents for purposes
of helping Customer perform its obligations under the Purchase Agreement and who understand they
are not to disclose its contents to any other person or entity without the prior written consent of
Boeing.

	 	 	 	 	 

	Very truly yours,	 	 
	 
	 	 	 	 
	THE BOEING COMPANY	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its

	 	Attorney-In-Fact	 	 
	 
	 	 	 	 
	ACCEPTED AND AGREED TO this	 	 
	 
	 	 	 	 
	Date:

	 	July 21, 2010	 	 
	 
	 	 	 	 
	AMERICAN AIRLINES, INC.	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its
	 	 	 	 
	 

	 	 	 	 

			
	 	 	 
	P.A. No. 3219
	 	SA-2
	Performance Guarantee Matters	 	 

BOEING PROPRIETARY

 

 

6-1162-CLO-1032R1

American Airlines, Inc.

P.O. Box 619616

Dallas-Fort Worth Airport

Texas 75261-9616

Subject:      [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]

	 	 	 

	Reference:

	 	(a) Purchase Agreement No. 3219 (the Purchase Agreement) between The Boeing Company
(Boeing) and American Airlines, Inc. (Customer) relating to Model 787-923 aircraft (the
Aircraft)
	 
	 	 
	 

	 	(b) Purchase Agreement No. 1979 between The Boeing Company and American Airlines,
Inc. relating to Model 767-323ER aircraft
	 
	 	 
	 

	 	( c) Purchase Agreement No. 1980 between The Boeing Company and American
Airlines, Inc relating to Model 777-223IGW aircraft
	 
	 	 
	 

	 	(d) Security Agreement dated October 16, 2002, as subsequently amended, between
The Boeing Company and American Airlines, Inc.

     This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All
terms used but not defined in this Letter Agreement have the same meaning as in the Purchase
Agreement.

1. Introduction.

          [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

2. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

			
	 	 	 
	P.A. No. 3219
	 	SA-2

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

BOEING PROPRIETARY

 

 

American Airlines, Inc.

6-1162-CLO-1032R1 Page 2

     2.1 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT].

     2.2 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT].

     2.3 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT].

     2.4 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT].

3. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

     [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

			
	 	 	 
	P.A. No. 3219
	 	SA-2

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

BOEING PROPRIETARY

 

 

American Airlines, Inc.

6-1162-CLO-1032R1 Page 3

4. Availability of [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Aircraft.

     [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT]:

     4.1 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]:

     4.1.1 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

     4.1.2 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

     4.2 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]:

     4.2.1 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

     4.2.2 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

     4.3 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT].

5. Purchase Obligations.

     [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

			
	 	 	 
	P.A. No. 3219
	 	SA-2

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

BOEING PROPRIETARY

 

 

American Airlines, Inc.

6-1162-CLO-1032R1 Page 4

6. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

     6.1 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT].

     6.2 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT].

     6.3 [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT].

7. Subsequent Agreement Amendments.

     [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

8. Assignment.

     Notwithstanding any other provisions of the Purchase Agreement, the rights and obligations
described in this Letter Agreement [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

			
	 	 	 
	P.A. No. 3219
	 	SA-2

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

BOEING PROPRIETARY

 

 

American Airlines, Inc.

6-1162-CLO-1032R1 Page 5

9. Confidential Treatment.

     Customer understands and agrees that the information contained herein represents confidential
business information and has value precisely because it is not available generally or to other
parties. Customer agrees to limit the disclosure of its contents to employees of Customer with a
need to know the contents for purposes of helping Customer perform its obligations under the
Purchase Agreement and who understand they are not to disclose its contents to any other person or
entity without the prior written consent of Boeing.

Very truly yours,

THE BOEING COMPANY

By                                                                                

Its Attorney-In-Fact

ACCEPTED AND AGREED TO this

Date: July 21, 2010

AMERICAN AIRLINES, INC.

By                                                                                

Its                                                                       
         

Attachments:

	 	1.	 	[CONFIDENTIAL PORTION OMITTED
	 
	 	2.	 	AND FILED SEPARATELY WITH THE
	 
	 	3.	 	COMMISSION PURSUANT TO A REQUEST
	 
	 	4.	 	FOR CONFIDENTIAL TREATMENT]

			
	 	 	 
	P.A. No. 3219
	 	SA-2

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

BOEING PROPRIETARY

 

 

6-1162-CLO-1045R1

American Airlines, Inc.

P.O. Box 619616

Dallas-Fort Worth Airport

Texas 75261-9616

Subject: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT]

	Reference:    	(a)	 	Purchase Agreement No. 3219 (the Purchase Agreement) between The Boeing Company
(Boeing) and American Airlines, Inc. (Customer) relating to Model 787-923 aircraft (the
Aircraft)
	 
	 	(b)	 	[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH
THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
	 
	 	(c)	 	Letter Agreement No. 6-1162-TRW-0664 entitled Aircraft
Purchase Rights and Substitution Rights

          This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All
terms used but not defined in this Letter Agreement have the same meaning as in the Purchase
Agreement.

1. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

          [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

2. Assignment.

          Notwithstanding any other provisions of the Purchase Agreement, the rights and obligations
described in this Letter Agreement are provided to Customer in consideration of Customer becoming
the operator of the Aircraft and cannot be assigned, in whole or in part, without the prior written
consent of Boeing.

	 	 	 

	P.A. No. 3219
	 	SA-2
	Treatment of Aircraft Delivering Beyond the MFC Period
	BOEING PROPRIETARY

 

American Airlines, Inc.

6-1162-CLO-1045R1 Page 2

3 Confidential Treatment.

          The information contained herein represents confidential business information and has value
precisely because it is not available generally or to other parties. Customer will limit the
disclosure of its contents to employees of Customer with a need to know the contents for purposes
of helping Customer perform its obligations under the Purchase Agreement and who understand they
are not to disclose its contents to any other person or entity without the prior written consent of
Boeing.

	 	 	 	 	 	 	 

	Very truly yours,	 	 	 	 
	 
	 	 	 	 	 	 
	THE BOEING COMPANY	 	 	 	 
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Its

	 	Attorney-In-Fact	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ACCEPTED AND AGREED TO this	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	July 21, 2010	 	
	 	 
	 
	 	 	 	 	 	 
	AMERICAN AIRLINES, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Its
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 

	P.A. No. 3219
	 	 SA-2
	Treatment of Aircraft Delivering Beyond the MFC Period
	BOEING PROPRIETARY

 

6-1162-TRW-0674R1

American Airlines, Inc.

P.O. Box 619616

Dallas-Fort Worth Airport, Texas 75261-9616

			
	Subject:	 	Business Considerations
	 
	Reference:	 	Purchase Agreement No. 3219 (the Purchase Agreement) between
The Boeing Company (Boeing) and American Airlines, Inc.
(Customer) relating to Model 787-923 aircraft (Aircraft) and
787-323 and 787-823 Substitute Aircraft (each Substitute
Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms
used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.

1. Basic Credit.

          [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT]:

          [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT]

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT].

	 	 	 

	P.A. No. 3219

	 	SA-2
	Business Considerations
	BOEING PROPRIETARY

 

American Airlines, Inc.

6-1162-TRW-0674R1

Page 2

2. Simulator Package[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

          [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

3. Delivery Reschedule Credit Memorandum.

          [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT]:

          [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT]

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT].

4. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT].

	 	 	 

	P.A. No. 3219

	 	SA-2
	Business Considerations
	BOEING PROPRIETARY

 

American Airlines, Inc.

6-1162-TRW-0674R1

Page 3

5. Confidential Treatment.

          Customer and Boeing understand that certain commercial and financial information contained in
this Letter Agreement are considered by Boeing and Customer as confidential. Customer and Boeing
agree that each will treat this Letter Agreement and the information contained herein as
confidential and will not, without the prior written consent of the other, disclose this Letter
Agreement or any information contained herein to any other person or entity, except as provided in
this Letter Agreement and or the Purchase Agreement.

	 	 	 	 	 	 	 

	Very truly yours,	 	 	 	 
	 
	 	 	 	 	 	 
	THE BOEING COMPANY	 	 	 	 
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Its

	 	Attorney-In-Fact	 	 	 	 
	 
	 	 	 	 	 	 
	ACCEPTED AND AGREED TO this	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	July 21, 2010	 	
	 	 
	 
	 	 	 	 	 	 
	AMERICAN AIRLINES, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Its
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 

	P.A. No. 3219

	 	SA-2
	Business Considerations
	BOEING PROPRIETARY

 

Attachment A to Letter Agreement 6-1162-TRW-0664

MADP Option

Rights Aircraft Exercise Lead Time Exercise Date

			
	 	 	 
	PA 3219
	 	Page 1 of 1
	 
	 	SA-2

 

 

Attachment B to Letter Agreement 6-1162-TRW-0664

QADP Option

Rights Aircraft Exercise Lead Time Exercise Date

			
	 	 	 
	PA 3219
	 	Page 1 of 1
	 
	 	SA-2

 

 

Attachment C to Letter Agreement No. LA Number No. 6-1162-TRW-0664

Rights Aircraft Delivery, Description, Price and

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A

REQUEST FOR CONFIDENTIAL TREATMENT]

					
	 	 	 	 	 
	54329-10.TXT
	 	Boeing Proprietary
	 	Page 1 MADP’s
	 
	 	 	 	SA-2

 

 

Attachment C to Letter Agreement No. LA Number No. 6-1162-TRW-0664

Rights Aircraft Delivery, Description, Price and

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A

REQUEST FOR CONFIDENTIAL TREATMENT]

					
	 	 	 	 	 
	54329-10.TXT
	 	Boeing Proprietary
	 	Page 2 MADP’s
	 
	 	 	 	SA-2

 

 

Attachment C to Letter Agreement No. LA Number No. 6-1162-TRW-0664

Rights Aircraft Delivery, Description, Price and

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A

REQUEST FOR CONFIDENTIAL TREATMENT]

					
	 	 	 	 	 
	54329-10.TXT
	 	Boeing Proprietary
	 	Page 1 QADP’s
	 
	 	 	 	SA-2

 

 

Attachment C to Letter Agreement No. LA Number No. 6-1162-TRW-0664

Rights Aircraft Delivery, Description, Price and

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A

REQUEST FOR CONFIDENTIAL TREATMENT]

					
	 	 	 	 	 
	54329-10.TXT
	 	Boeing Proprietary
	 	Page 2 QADP’s
	 
	 	 	 	SA-2

 

 

Attachment 1 – 767 MAPD and QADP upon execution of this Letter Agreement

Attachment B to Letter Agreement 6-1162-AKP-100R2 (Model 767)

MADP Rights Aircraft Delivery Months and Exercise Dates

					
	 	 	 	 	 
	PA No. 1979
	 	SA No. 8
	 	Page 1 of 1

 

 

Attachment 1 — 767 MAPD and QADP upon execution of this Letter Agreement

Attachment C to Letter Agreement 6-1162-AKP-100R2 (Model 767)

QADP Rights Aircraft Delivery Quarters and Exercise Dates

					
	 	 	 	 	 
	PA No. 1979
	 	SA No. 8
	 	Page 1 of 1

 

 

Attachment 2 – 777 MADP and QADP upon execution of this Letter Agreement

Attachment B to Letter Agreement 6-1162-AKP-110R2 (Model 777)

MADP Rights Aircraft Delivery Months and Exercise Dates

					
	 	 	 	 	 
	PA No. 1980
	 	SA No. 20
	 	Page 1 of 1

 

 

Attachment 2 – 777 MADP and QADP upon execution of this Letter Agreement

Attachment C to Letter Agreement 6-1162-AKP-110R2 (Model 777)

QADP Rights Aircraft Delivery Quarters and Exercise Dates

					
	 	 	 	 	 
	PA No. 1980
	 	SA No. 20
	 	Page 1 of 1

 

 

Attachment 3 – 767 MADP and QADP if no 787s are

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A

REQUEST FOR CONFIDENTIAL TREATMENT]

Attachment B to Letter Agreement 6-1162-AKP-100R2 (Model 767)

MADP Rights Aircraft Delivery Months and Exercise Dates

					
	 	 	 	 	 
	PA No. 1979
	 	SA No. 8
	 	Page 1 of 1

 

 

Attachment 3 – 767 MADP and QADP if no 787s are

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A

REQUEST FOR CONFIDENTIAL TREATMENT]

Attachment C to Letter Agreement 6-1162-AKP-100R2 (Model 767)

QADP Rights Aircraft Delivery Quarters and Exercise Dates

					
	 	 	 	 	 
	PA No. 1979
	 	SA No. 8
	 	Page 1 of 1

 

 

Attachment 4 – 777 MADP and QADP if no 787s are

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A

REQUEST FOR CONFIDENTIAL TREATMENT]

Attachment B to Letter Agreement 6-1162-AKP-110R2 (Model 777)

MADP Rights Aircraft Delivery Months and Exercise Dates

					
	 	 	 	 	 
	PA No. 1980
	 	SA No. 20
	 	Page 1 of 1

 

 

Attachment 4 – 777 MADP and QADP if no 787s are

[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A

REQUEST FOR CONFIDENTIAL TREATMENT]

Attachment C to Letter Agreement 6-1162-AKP-110R2 (Model 777)

QADP Rights Aircraft Delivery Quarters and Exercise Dates

					
	 	 	 	 	 
	PA No. 1980
	 	SA No. 20
	 	Page 1 of 1exv10w1

Exhibit
10.1

 

 

TERM LOAN AGREEMENT

dated as of July 20, 2010

among

APACHE CORPORATION,

THE LENDERS PARTY HERETO,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent,

and

CITIBANK, N.A.,

BANK OF AMERICA, N.A., and

GOLDMAN SACHS BANK USA,

as Co-Syndication Agents,

 

J.P. MORGAN SECURITIES INC.,

CITIGROUP GLOBAL MARKETS INC.,

BANC OF AMERICA SECURITIES, LLC and

GOLDMAN SACHS BANK USA

as Co-Lead Arrangers and Joint Bookrunners

 

 

 

 

TERM LOAN AGREEMENT

     THIS TERM LOAN AGREEMENT, dated as of July 20, 2010, is among APACHE CORPORATION, a Delaware
corporation (“Borrower”), the LENDERS (as defined below) party hereto, JPMORGAN CHASE BANK,
N.A., as Administrative Agent, and CITIBANK, N.A., BANK OF AMERICA, N.A. and GOLDMAN SACHS BANK
USA, as Co-Syndication Agents.

RECITALS

     A. Borrower, Lenders, the Administrative Agent and the other Agents desire to enter into this
Agreement to set forth the terms and conditions pursuant to which Lenders will make available to
Borrower a multiple advance senior term loan on a non-revolving basis for the purposes set forth in
this Agreement.

     B. Borrower, Lenders, the Administrative Agent, and the other Agents party hereto hereby agree
as follows:

ARTICLE I

Definitions

     SECTION 1.1 Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:

     “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

     “Acquisitions” means the acquisitions to be consummated pursuant to the Purchase and
Sale Agreements.

     “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to
(a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

     “Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as
Administrative Agent for the Lenders.

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

     “Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

     “Agents” means each of the Administrative Agent and the Co-Syndication Agents.

 

 

     “Agreement” means this Term Loan Agreement, as it may be amended, supplemented,
restated or otherwise modified and in effect from time to time.

     “Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of
(a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such
day plus 1/2 of 1% and (c) the LIBO Rate in effect on such day for a one-month interest period plus
1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such change in the Prime
Rate or the Federal Funds Effective Rate, respectively.

     “Applicable Percentage” means, with respect to any Lender, (a) before the Initial
Funding Date, the total percentage represented by such Lender’s Commitment and (b) on and after the
Initial Funding Date, the percentage that the aggregate principal amount of such Lender’s Loans
then outstanding constitutes the amount of the aggregate principal amount of all Loans then
outstanding.

     “Applicable Rate” means, for any day, (i) with respect to any Eurodollar Loan, the
applicable rate per annum set forth below under the caption “Eurodollar Margin”, or (ii) with
respect to the Undrawn Fees payable hereunder, the applicable rate per annum set forth below under
the caption “Undrawn Fee”, in either case, based upon the ratings by Moody’s, S&P and Fitch,
respectively, applicable on such date to the Index Debt:

	 	 	 	 	 	 	 	 	 
	 	 	Undrawn Fee (in	 	Eurodollar Margin
	Index Debt Ratings:	 	basis points)	 	(in basis points)
	Category
1:   >A/A2

	 	 	10.0	 	 	 	150.0	 
	Category 2:   A-/A3

	 	 	12.5	 	 	 	175.0	 
	Category 3:   BBB+/Baa1

	 	 	17.5	 	 	 	200.0	 
	Category 4:   BBB/Baa2

	 	 	25.0	 	 	 	225.0	 
	Category 5:   <BBB-/Baa3

	 	 	35.0	 	 	 	250.0	 

     For purposes of the foregoing, (i) if either Moody’s, S&P or Fitch shall not have in effect a
rating for the Index Debt (other than by reason of the circumstances referred to in the penultimate
sentence of this definition), then such rating agency shall be deemed to have established a rating
in Category 5; (ii) if the ratings established or deemed to have been established by Moody’s, S&P
and Fitch for the Index Debt shall fall within different Categories, the Applicable Rate shall be
based on the highest two ratings, unless the highest two ratings shall fall within
different Categories in which case the Applicable Rate shall be based on the lower of the highest
two ratings; and (iii) if the ratings established or deemed to have been established by Moody’s,
S&P and Fitch for the Index Debt shall be changed (other than as a result of a change in the rating
system of Moody’s, S&P or Fitch), such change shall be effective as of the date on which it is
first announced by the applicable rating agency. Each change in the Applicable Rate shall apply
during the period commencing on the effective date of such change and ending on the date
immediately preceding the effective date of the next such change. If the rating system of Moody’s,
S&P or Fitch shall change, or if any such rating agency shall cease to be in the

2

 

business of rating corporate debt obligations, Borrower and the Lenders shall negotiate in
good faith to amend this definition to reflect such changed rating system or the unavailability of
ratings from such rating agency and, pending the effectiveness of any such amendment, the
Applicable Rate shall be determined by reference to the rating most recently in effect prior to
such change or cessation. Changes in the Applicable Rate will occur automatically without prior
notice.

     “Arrangers” is defined in Article IX.

     “Asset Sale” means the sale or other disposition of any assets in any single
transaction or series of related transactions for Net Asset Sale Proceeds of $100,000,000 or more.
Notwithstanding the foregoing, any sale or other disposition of any of the following items shall
not constitute an Asset Sale:

	 	(a)	 	assets between or among the Borrower and its Subsidiaries;
	 
	 	(b)	 	products, services or accounts receivable in the ordinary course of business;
	 
	 	(c)	 	damaged, worn out or obsolete assets or assets no longer used or useful in the
Borrower’s or any of its Subsidiaries’ business;
	 
	 	(d)	 	cash or cash equivalents;
	 
	 	(e)	 	assets transferred in connection with a securitization; and
	 
	 	(f)	 	assets subject to any condemnation or casualty event.

     “Assignment and Acceptance” means an assignment and acceptance entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section
10.4), and accepted by the Administrative Agent, in substantially the form of Exhibit B
or any other form approved by the Administrative Agent.

     “Authorized Officer” means the Chairman, the President, the Executive Vice President
and Chief Financial Officer and the Vice President and Treasurer of Borrower, and any officer or
employee of Borrower specified as such to the Administrative Agent in writing by any of the
aforementioned officers of Borrower.

     “Availability Period” means, with respect to any Lender, the period from and including
the Initial Funding Date to but excluding the earlier of September 28, 2010 and the date of
termination of the Commitment of such Lender; provided, however, that no Commitment
of any Lender shall terminate prior to September 29, 2010 except as provided in Sections
2.8, 4.2, 8.2, 8.3 and 10.4.

     “Bankruptcy Event” means, with respect to any Person, such Person becomes the subject
of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee,
administrator, custodian, assignee for the benefit of creditors or similar Person charged with the
reorganization or liquidation of its business appointed for it, or, in the good faith determination
of the Administrative Agent, has taken any action in furtherance of, or consented to, approval of,

3

 

or acquiescence in, any such proceeding or appointment, provided that a Bankruptcy Event shall
not result solely by virtue of any ownership interest, or the acquisition of any ownership
interest, in such Person by a Governmental Authority or instrumentality thereof, provided, further,
that such ownership interest does not result in or provide such Person with immunity from the
jurisdiction of courts within the United States or from the enforcement of judgments or writs of
attachment on its assets or permit such Person (or such Governmental Authority or instrumentality)
to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.

     “Board” means the Board of Governors of the Federal Reserve System of the United
States of America.

     “Borrower” has the meaning assigned to such term in the Preamble.

     “Borrowing” means Loans of the same Type, made, converted or continued on the same
date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect.

     “Borrowing Request” means a request by Borrower for a Borrowing in accordance with
Section 2.3, in substantially the form of Exhibit C or any other form approved by
the Administrative Agent.

     “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed;
provided that, when used in connection with a Eurodollar Loan, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

     “Capital” means the consolidated shareholder’s equity of Borrower and its Subsidiaries
plus the consolidated Debt of Borrower and its Subsidiaries.

     “Capital Stock” means:

     (a) in the case of a corporation, corporate or capital stock;

     (b) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock;

     (c) in the case of a partnership or limited liability company, partnership interests (whether
general or limited) or membership interests; and

     (d) any other interest or participation that confers on a Person the right to receive a share
of the profits and losses of, or distributions of assets of, the issuing Person, but excluding from
all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt
securities include any right of participation with Capital Stock.

     “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability
Act of 1980, 42 U.S.C. § 9601, et. seq., as amended from time to time.

4

 

     “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender (or, for purposes of Section 2.16(b), by any lending office of
such Lender or by such Lender’s holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or issued after the
date of this Agreement.

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

     “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Loans, as such commitment may be (a) reduced from time to time pursuant to Section 2.8, (b)
reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to
Section 10.4, and (c) terminated pursuant to Sections 4.2, 8.2 or
8.3. The amount of the Commitment represents such Lender’s maximum Loan Exposure
hereunder. The initial amount of each Lender’s Commitment is set forth on Schedule 2.1, or
in the Assignment and Acceptance pursuant to which such Lender shall have assumed its Commitment,
as applicable. The initial aggregate amount of the Lenders’ Commitments is $5,000,000,000.

     “Consolidated Assets” means the total assets of the Borrower and its subsidiaries
which would be shown as assets on a consolidated balance sheet of Borrower and its subsidiaries
prepared in accordance with GAAP.

     “Consolidated Tangible Net Worth” means (i) the consolidated shareholder’s equity of
Borrower and its Subsidiaries (determined in accordance with GAAP), less (ii) the amount of
consolidated intangible assets of Borrower and its Subsidiaries, plus (iii) the aggregate amount of
any non-cash write downs, on a consolidated basis, by Borrower and its Subsidiaries during the term
hereof.

     “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

     “Controlled Group” means all members of a controlled group of corporations and all
members of a controlled group of trades or businesses (whether or not incorporated) under common
control which, together with Borrower, are treated as a single employer under Section 414 (b) or
414 (c) of the Internal Revenue Code or Section 4001 of ERISA.

     “Co-Syndication Agents” means Citibank, N.A., Bank of America, N.A. and Goldman Sachs
Bank USA, in their capacity as co-syndication agents.

     “Credit Party” means the Administrative Agent or any Lender.

     “Debt” of any Person means indebtedness, including capital leases, shown as debt on a
consolidated balance sheet of such Person prepared in accordance with GAAP.

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     “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

     “Defaulting Lender” means any Lender that (a) has failed, within two (2) Business Days
of the date required to be funded or paid, to (i) fund any portion of its Loans or (ii) pay over to
any Credit Party any other amount required to be paid by it hereunder, unless, in the case of
clause (i) above, such Lender notifies the Administrative Agent in writing that such failure is the
result of such Lender’s good faith determination that a condition precedent to funding
(specifically identified and including the particular default, if any) has not been satisfied, (b)
has notified the Borrower or any Credit Party in writing, or has made a public statement to the
effect, that it does not intend or expect to comply with any of its funding obligations under this
Agreement (unless such writing or public statement indicates that such position is based on such
Lender’s good faith determination that a condition precedent (specifically identified and including
the particular default, if any) to funding a loan under this Agreement cannot be satisfied) or
generally under other agreements in which it commits to extend credit, (c) has failed, within three
(3) Business Days after request by the Administrative Agent, acting in good faith, to provide a
certification in writing from an authorized officer of such Lender that it will comply with its
obligations (and is financially able to meet such obligations) to fund prospective Loans under this
Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause
(c) upon the Administrative Agent’s receipt of such certification in form and substance
satisfactory to it, or (d) has become the subject of a Bankruptcy Event.

     “dollars” or “$” refers to lawful money of the United States of America.

     “Effective Date” means the date this Agreement is executed by all parties name on the
signature pages hereto.

     “Environmental Laws” means all applicable federal, state or local statutes, laws,
ordinances, codes, rules and regulations (including consent decrees and administrative orders)
relating to public health and safety and protection of the environment.

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of
Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any contract, agreement
or other consensual arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.

     “Equity Interests” means Capital Stock and all warrants, options or other rights to
acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable
for, Capital Stock).

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any
successor statute of similar import, together with the regulations thereunder, in each case as in
effect from time to time.

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     “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or,
solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.

     “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by
Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to
the termination of any Plan; (e) the receipt by Borrower or any ERISA Affiliate from the PBGC or a
plan administrator of any notice relating to an intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (f) the incurrence by Borrower or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from Borrower or any ERISA Affiliate of any notice, concerning
the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

     “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

     “Event of Default” has the meaning assigned to such term in Article VIII.

     “Excluded Taxes” means, with respect to any Agent, any Lender or any other recipient
of any payment to be made by or on account of any obligation of Borrower hereunder, (a) income or
franchise taxes imposed on (or measured by) its net income by the United States of America, or by
the jurisdiction under the laws of which such recipient is organized or in which its principal
office is located or, in the case of any Lender, in which its applicable lending office is located,
(b) any branch profits taxes imposed by the United States of America or any similar tax imposed by
any other jurisdiction in which Borrower is located and (c) in the case of a Foreign Lender (other
than an assignee pursuant to a request by Borrower under Section 2.18(b)), any withholding
tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender
becomes a party to this Agreement (or designates a new lending office) or is attributable to such
Foreign Lender’s failure to comply with Section 2.16(e), except to the extent that such
Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from Borrower with respect to such
withholding tax pursuant to Section 2.16(a).

     “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if

7

 

such rate is not so published for any day that is a Business Day, the average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three (3) Federal funds brokers of
recognized standing selected by it.

     “Fitch” means Fitch, Inc. and any affiliate or successor thereto that is a nationally
recognized rating agency in the United States.

     “Foreign Lender” means any Lender that is not organized under the laws of, or
resident, in the United States. For purposes of this definition, the United States of America,
each State thereof and the District of Columbia shall be deemed to constitute a single
jurisdiction.

     “GAAP” means generally accepted accounting principles as in effect from time to time,
applied on a basis consistent with the most recent financial statements of Borrower and its
Subsidiaries delivered to the Lenders pursuant hereto.

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

     “Hazardous Material” means (a) any “hazardous substance,” as defined by CERCLA; (b)
any “hazardous waste,” as defined by the Resource Conservation and Recovery Act; or (c) any
pollutant or contaminant or hazardous, dangerous or toxic chemical, material or substance within
the meaning of any other Environmental Law.

     “Indebtedness” of any Person means all (i) Debt, and (ii) guaranties or other
contingent obligations in respect of the Debt of any other Person.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Index Debt” means senior, unsecured, non-credit enhanced, long-term indebtedness for
borrowed money of Borrower that is not guaranteed by any other Person or subject to any other
credit enhancement.

     “Initial Funding Date” means the date upon which the conditions specified in
Section 4.2 of this Agreement are satisfied (or waived in accordance with Section
10.2 of this Agreement).

     “Initial Funding Notice” means a notice and certificate of Borrower executed by an
Authorized Officer of Borrower addressed to the Lenders and delivered to the Administrative Agent,
whereby Borrower certifies to its knowledge satisfaction of all the conditions precedent to the
funding under Section 4.2 of this Agreement.

     “Interest Election Request” means a request by Borrower to convert or continue a
Borrowing in accordance with Section 2.7, in substantially the form of Exhibit C or
any other form approved by the Administrative Agent.

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     “Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each
March, June, September and December, and (b) with respect to any Eurodollar Loan, the last day of
the Interest Period applicable to the Borrowing of which such Loan is a part.

     “Interest Period” means, with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending (a) on the day that is seven or fourteen days
thereafter or, with the consent of the Administrative Agent and each Lender, another day that is
less than fourteen days thereafter or (b) on the numerically corresponding day that is one or two
months thereafter or with the consent of the Administrative Agent, such other day, in each case as
Borrower may elect; provided, that (i) if any Interest Period would end on a day other than
a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless,
in the case of a Eurodollar Borrowing only, such next succeeding Business Day would fall in the
next calendar month, in which case such Interest Period shall end on the next preceding Business
Day and (ii) any Interest Period pertaining to a Eurodollar Borrowing that commences on the last
Business Day of a calendar month (or on a day for which there is no numerically corresponding day
in the last calendar month of such Interest Period) shall end on the last Business Day of the last
calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially
shall be the date on which such Borrowing is made and thereafter shall be the effective date of the
most recent conversion or continuation of such Borrowing.

     “Lenders” means the Persons listed on Schedule 2.1 and any other Person that
shall have become a party hereto pursuant to an Assignment and Acceptance, other than any such
Person that ceases to be a party hereto pursuant to an Assignment and Acceptance.

     “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the applicable British Bankers’ Association Settlement Rate for deposits in dollars (for delivery
on the first day of such Interest Period) appearing on the Reuters “LIBOR01” screen (or on any
successor or substitute screen provided by Reuters, or any successor to or substitute for such
service, providing rate quotations comparable to those currently provided on such screen of such
service, as reasonably determined by the Administrative Agent and Borrower from time to time for
purposes of providing quotations of interest rates applicable to dollar deposits in the London
interbank market) at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to
such Interest Period. In the event that such rate is not available at such time for any reason,
then the “LIBO Rate” with respect to such Eurodollar Borrowing for such Interest Period
shall be the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the Administrative Agent in
immediately available funds in the London interbank market at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period.

     “Lien” means any mortgage, pledge, lien, encumbrance, charge, or security interest of
any kind, granted or created to secure Indebtedness; provided, however, that, with
respect to any prohibitions of Liens on Property, the following transactions shall not be deemed to
create a Lien to secure Indebtedness; (i) production payments and (ii) liens required by statute
and created in favor of U.S. governmental entities to secure partial, progress, advance, or other
payments intended to be used primarily in connection with air or water pollution control.

9

 

     “Loan Document” means this Agreement, any Borrowing Request, any Interest Election
Request, any Notice of Extension, any Assignment and Acceptance, any election notice, the agreement
with respect to fees described in Section 2.11(b), and each other agreement, document or
instrument delivered by Borrower or any other Person in connection with this Agreement, as such may
be amended, restated, supplemented or otherwise modified from time to time.

     “Loan Exposure” means, with respect to any Lender at any time, the sum of the
outstanding principal amount of such Lender’s Loans at such time.

     “Loans” means the loans made by the Lenders to Borrower pursuant to this Agreement.

     “Material Adverse Effect” means, as to any matter, that such matter could reasonably
be expected to materially and adversely affect the assets, business, properties, condition
(financial or otherwise) of Borrower and its Subsidiaries taken as a whole. No matter shall be
considered to result, or be expected to result, in a Material Adverse Effect unless such matter
causes Borrower and its Subsidiaries, on a consolidated basis, to suffer a loss or incur a cost
equal to at least ten percent (10%) of Borrower’s Consolidated Tangible Net Worth.

     “Maturity Date” means September 29, 2010, or if an extension is requested by Borrower
pursuant to Section 2.6, December 29, 2010.

     “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto that is a
nationally recognized rating agency in the United States.

     “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

     “Net Asset Sale Proceeds” means, with respect to any Asset Sale, an amount equal to:
(a) the aggregate cash proceeds received by the Borrower or any of its Subsidiaries in respect of
such Asset Sale less (b) the sum of (i) the direct costs relating to such Asset Sale, including
legal, accounting and investment banking fees, sales commissions, any relocation expenses incurred
as a result of the Asset Sale, and taxes paid or payable as a result of the Asset Sale, including
income taxes payable due to the distribution of such proceeds from a Subsidiary to the Borrower;
(ii) payments made to retire Indebtedness (other than the Loans) required to be repaid in
connection with such Asset Sale; and (iii) amounts reasonably reserved for adjustment in respect of
the sale price of such asset or assets.

     “Net Financing Proceeds” means with respect to the incurrence or issuance by the
Borrower or any of its Subsidiaries to any Person of any Debt or Equity Interests, an amount equal
to: (a) the gross cash proceeds received by the Borrower or such Subsidiaries from such incurrence
or issuance less (b) all reasonable and customary underwriting commissions, legal, investment
banking, brokerage and accounting and other professional fees, sales commissions and other
disbursements actually incurred in connection with such sale or issuance.

     “Notice of Extension” means a notice from Borrower, executed by an Authorized Officer
and delivered to the Administrative Agent, which requests an extension of the then scheduled
Maturity Date pursuant to Section 2.6.

10

 

     “Obligations” means, at any time, the sum of (i) the outstanding principal amount of
any Loans plus (ii) all accrued and unpaid interest and Undrawn Fees plus (iii) all
other obligations of Borrower or any Subsidiary to any Lender or any Agent, whether or not
contingent, arising under or in connection with any of the Loan Documents.

     “Other Taxes” means any and all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any payment made hereunder
or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement.

     “Participants” is defined in Section 10.4(e).

     “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

     “Pension Plan” means a “pension plan,” as such term is defined in Section 3(2) of
ERISA, which is subject to Title IV of ERISA (other than a multiemployer plan as defined in Section
4001(a)(3) of ERISA), and to which a Borrower or any corporation, trade or business that is, along
with a Borrower, a member of a Controlled Group, may have liability, including any liability by
reason of having been a substantial employer within the meaning of Section 4063 of ERISA at any
time during the preceding five years, or by reason of being deemed to be a contributing sponsor
under Section 4069 of ERISA.

     “Person” means any natural person, corporation, limited liability company, unlimited
liability company, joint venture, partnership, firm, association, trust, government, governmental
agency or any other entity, whether acting in an individual, fiduciary or other capacity.

     “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which Borrower or any ERISA Affiliate is (or, if such plan were terminated, would
under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

     “Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in New York City
which rate may not be the lowest rate offered; each change in the Prime Rate shall be effective
from and including the date such change is publicly announced as being effective.

     “Property” means (i) any property owned or leased by Borrower or any Subsidiary, or
any interest of Borrower or any Subsidiary in property, which is considered by Borrower to be
capable of producing oil, gas, or minerals in commercial quantities, (ii) any interest of Borrower
or any Subsidiary in any refinery, processing or manufacturing plant owned or leased by Borrower or
any manufacturing plant owned or leased by Borrower or any Subsidiary, (iii) any interest of
Borrower or any Subsidiary in all present and future oil, gas, other liquid and gaseous
hydrocarbons, and other minerals now or hereafter produced from any other Property or to which
Borrower or any Subsidiary may be entitled as a result of its ownership of any Property, and (iv)
all real and personal assets owned or leased by Borrower or any Subsidiary used in the drilling,
gathering, processing, transportation, or marketing of any oil, gas, and other

11

 

hydrocarbons or minerals, except (a) any such real or personal assets related thereto employed in
transportation, distribution or marketing or (b) any interest of Borrower or any Subsidiary in, any
refinery, processing or manufacturing plant, or portion thereof, which property described in
clauses (a) or (b), in the opinion of the Board of Directors of Borrower, is not a principal plant
or principal facility in relation to the activities of Borrower and its Subsidiaries taken as a
whole.

     “Purchase and Sale Agreements” means (a) that certain Purchase and Sale Agreement,
dated as of July 20, 2010, by and between BP America Production Company, as Seller, and ZPZ
Delaware I LLC, as Buyer, relating to the Permian assets; (b) that certain Purchase and Sale
Agreement, dated as of July 20, 2010, by and between BP Egypt Company and BP Exploration (Delta)
Limited, as Sellers, and ZPZ Egypt Corporation LDC, as Buyer, relating to the Egyptian assets; and
(c) that certain Partnership Interest and Share Purchase and Sale Agreement, dated as of July 20,
2010, by and between BP Canada Energy, as Seller, and Apache Canada Ltd., as Buyer, relating to the
Canadian assets.

     “Register” has the meaning set forth in Section 10.4.

     “Regulation U” means any of Regulations T, U or X of the Board from time to time in
effect and shall include any successor or other regulations or official interpretations of said
Board or any successor Person relating to the extension of credit for the purpose of purchasing or
carrying margin stocks applicable to member banks of the Federal Reserve System or any successor
Person.

     “Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

     “Required Lenders” means Lenders having in the aggregate 51% of the aggregate total
Commitments, or, if the Commitments have been terminated, Lenders holding 51% of the aggregate
unpaid principal amount of the outstanding Obligations.

     “Resource Conservation and Recovery Act” means the Resource Conservation and Recovery
Act, 42 U.S.C. Section 690, et seq., as amended from time to time.

     “Restricted Subsidiary” means any Subsidiary of Borrower that owns any asset
representing or consisting of an entitlement to production from, or other interest in, reserves of
oil, gas or other minerals in place located in the United States or Canada, including, without
limitation, Apache Canada Ltd., a corporation organized under the laws of the Province of Alberta,
Canada, or is otherwise designated by Borrower in writing to the Administrative Agent.

     “S&P” means Standard & Poor’s and any successor thereto that is a
nationally-recognized rating agency in the United States.

     “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
applicable maximum reserve percentages (including any basic, marginal, special, emergency or
supplemental reserves) expressed as a decimal established by the Board to which the Administrative
Agent is subject with respect to the Adjusted LIBO Rate, for eurocurrency

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funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board).
Such reserve percentages shall include those imposed pursuant to such Regulation D. Eurodollar
Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to any Lender under such Regulation D or any comparable regulation.
The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any
change in any reserve percentage.

     “subsidiary” means, with respect to any Person, any corporation or other similar
entity of which more than 50% of the outstanding capital stock (or other equity) having ordinary
voting power to elect a majority of the Board of Directors of such corporation or entity
(irrespective of whether or not at the time capital stock or any other class or classes of such
corporation or entity shall or might have voting power upon the occurrence of any contingency) is
at the time directly or indirectly owned by such Person.

     “Subsidiary” means any subsidiary of Borrower; provided, however, that
in all events the following Persons shall not be deemed to be Subsidiaries of Borrower or any of
its Subsidiaries: Apache Offshore Investment Partnership, a Delaware general partnership, Apache
Offshore Petroleum Limited Partnership, a Delaware limited partnership, Main Pass 151 Pipeline
Company, a Texas general partnership, and Apache 681/682 Joint Venture, a Texas joint venture.

     “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

     “Transactions” means the execution, delivery and performance by Borrower of this
Agreement and the other Loan Documents, the borrowing of Loans and the use of the proceeds thereof.

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

     “Undrawn Amount” means, at any time, (i) the aggregate maximum amount of the
Commitments at such time, minus (ii) the aggregate principal amount of then outstanding Loans at
such time.

     “Undrawn Fee” is defined in Section 2.11(a).

     “United States” or “U.S.” means the United States of America, its fifty states
and the District of Columbia.

     “Unrestricted Subsidiary” means any Subsidiary of Borrower that is not a Restricted
Subsidiary.

     “Welfare Plan” means a “welfare plan,” as such term is defined in Section 3(1) of
ERISA.

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     “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

     SECTION 1.2 Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Type (e.g., a “Eurodollar Loan”). Borrowings
also may be classified and referred to by Type (e.g., a “Eurodollar Borrowing”).

     SECTION 1.3 Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights.

     SECTION 1.4 Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if Borrower notifies the Administrative Agent that
Borrower requests an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the operation of such
provision (or if the Administrative Agent notifies Borrower that the Required Lenders request an
amendment to any provision hereof for such purpose), regardless of whether any such notice is given
before or after such change in GAAP or in the application thereof, then such provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before such change shall have
become effective until such notice shall have been withdrawn or such provision amended in
accordance herewith.

ARTICLE II

The Credits

     SECTION 2.1 The Facility; Commitments. Subject to the terms and conditions set forth
herein, each Lender agrees to make Loans to the Borrower in one or more advances from time to time
during the Availability Period in an aggregate principal amount that will not result in (a) the
aggregate principal amount of such Lender’s Loans exceeding such Lender’s Commitment or (b) the sum
of the aggregate principal amount of outstanding Loans exceeding

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the total Commitments. The Borrower may not reborrow Loans that have been paid or prepaid and
such payment or prepayment shall not reduce any unused Commitments.

     SECTION 2.2 Loans and Borrowings.

     (a) Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders
ratably in accordance with their respective Commitments. The failure of any Lender to make any
Loan required to be made by it shall not relieve any other Lender of its obligations hereunder;
provided that the Commitments of the Lenders are several and no Lender shall be responsible
for any other Lender’s failure to make Loans as required.

     (b) Subject to Section 2.13, each Borrowing shall be comprised entirely of ABR Loans
or Eurodollar Loans as Borrower may request in accordance herewith. Each Lender at its option may
make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to
make such Loan; provided that any exercise of such option shall not affect the obligation
of Borrower to repay such Loan in accordance with the terms of this Agreement.

     (c) At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing
shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than
$5,000,000 (including any continuation or conversion of existing Loans made in connection
therewith). At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate
amount that is an integral multiple of $1,000,000 and not less than $5,000,000 (including any
continuation or conversion of existing Loans made in connection therewith); provided that
an ABR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the
total Commitments. Borrowings of more than one Type may be outstanding at the same time;
provided that there shall not at any time be more than a total of ten (10) Eurodollar
Borrowings outstanding.

     (d) Notwithstanding any other provision of this Agreement, Borrower shall not be entitled to
request, or to elect to convert or continue, any Borrowing if the Interest Period requested with
respect thereto would end after the Maturity Date.

     SECTION 2.3 Requests for Borrowings. To request a Borrowing, Borrower shall notify
the Administrative Agent of such request by telephone (a) in the case of a Eurodollar Borrowing,
not later than 1:00 p.m., New York City time, three Business Days before the date of the proposed
Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time, on
the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable
and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Borrowing Request in a form approved by the Administrative Agent and signed by Borrower.
Each such telephonic and written Borrowing Request shall specify the following information in
compliance with Section 2.2:

     (i) the aggregate amount of the requested Borrowing;

     (ii) the date of such Borrowing, which shall be a Business Day;

     (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

15

 

     (iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of the term
“Interest Period”.

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an
ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar
Borrowing, then Borrower shall be deemed to have selected an Interest Period of one month’s
duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the amount of such
Lender’s Loan to be made as part of the requested Borrowing.

     SECTION 2.4 [Intentionally Omitted.]

     SECTION 2.5 Funding of Borrowings.

     (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof
by wire transfer of immediately available funds by 12:00 noon, New York City time, to the account
of the Administrative Agent most recently designated by it for such purpose by notice to the
Lenders. The Administrative Agent will make such Loans available to Borrower by promptly crediting
the amounts so received, in like funds, to an account of Borrower designated by Borrower from time
to time in a written notice to the Administrative Agent executed by two Authorized Officers of
Borrower.

     (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed time of any Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has
made such share available on the requested date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to Borrower a corresponding amount. In
such event, if a Lender has not in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender and Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to Borrower to but excluding the date
of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate or a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation or (ii) in the case of Borrower, the interest rate
applicable to Loans made in such Borrowing. If such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing.

     SECTION 2.6 Extension of Maturity Date. Subject to the other provisions of this
Agreement and provided that no Event of Default has occurred and is continuing, the total
Commitments shall be effective for the Availability Period (ending on September 28, 2010). The
Maturity Date may be extended one time at the option of Borrower to December 29, 2010, upon
Borrower’s delivery to the Administrative Agent of a Notice of Extension at least three (3)
Business Days prior to the Maturity Date. In the event that Borrower elects to extend the Maturity
Date pursuant to this Section 2.6, Borrower shall pay to the Administrative Agent, for the
account of Lenders, an extension fee equal to 75 basis points on each Lender’s pro rata

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portion of the Borrowings which remain outstanding at the time of such extension, which
extension fee shall be paid by Borrower in immediately available funds by wire transfer to
Administrative Agent on the date of delivery of the Notice of Extension. Such extension shall be
effective without other or further action by any party hereto for such additional period.

     SECTION 2.7 Interest Elections.

     (a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing
Request (or an ABR Borrowing if no Type is specified) and, in the case of a Eurodollar Borrowing,
shall have an initial Interest Period as specified in such Borrowing Request (or one week if no
Interest Period is specified). Thereafter, Borrower may elect to convert such Borrowing to a
different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect
Interest Periods therefor, all as provided in this Section. Borrower may, subject to the
requirements of Section 2.2(c), elect different options with respect to different portions
of the affected Borrowing, in which case each such portion shall be allocated ratably among the
Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion
shall be considered a separate Borrowing.

     (b) To make an election pursuant to this Section, Borrower shall notify the Administrative
Agent of such election by telephone by the time that a Borrowing Request would be required under
Section 2.3 if Borrower were requesting a Borrowing of the Type resulting from such
election to be made on the effective date of such election. Each such telephonic Interest Election
Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Interest Election Request signed by Borrower.

     (c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.2:

     (i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

     (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and

     (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then Borrower shall be deemed to have selected an Interest Period of one week’s
duration.

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     (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

     (e) If Borrower fails to deliver a timely Interest Election Request with respect to a
Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such
Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of
Default has occurred and is continuing and the Administrative Agent, at the request of the Required
Lenders, so notifies Borrower, then, so long as an Event of Default is continuing, (i) no
outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless
repaid and provided the Indebtedness has not been accelerated pursuant to Section 8.3, each
Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period
applicable thereto.

     SECTION 2.8 Termination and Reduction of Commitments.

     (a) Unless previously terminated, the Commitments shall terminate on September 29, 2010.

     (b) In the event that Borrower is required to make a mandatory prepayment or Commitment
reduction pursuant to Section 2.10, Borrower may elect to permanently reduce the
Commitments by the amount required by Section 2.10.

     (c) Borrower may at any time terminate, or from time to time reduce, the Commitments;
provided that (i) each reduction of the Commitments shall be in an amount that is an
integral multiple of $1,000,000 and not less than $5,000,000 and (ii) Borrower shall not terminate
or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in
accordance with Section 2.10, the sum of the Loan Exposures would exceed the total
Commitments.

     (d) Borrower shall notify the Administrative Agent of any election to terminate or reduce the
Commitments under paragraph (b) of this Section at least one (1) Business Day prior to the
effective date of such termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by Borrower pursuant to this Section shall
be irrevocable; provided that a notice of termination of the Commitments delivered by
Borrower may state that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by Borrower (by notice to the Administrative
Agent on or prior to the specified effective date) if such condition is not satisfied. Any
termination or reduction of the Commitments shall be permanent. Each reduction of the Commitments
shall be made ratably among the Lenders in accordance with their respective Commitments.

     SECTION 2.9 Repayment of Loans; Evidence of Debt.

     (a) Borrower hereby unconditionally promises to pay to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each Loan on the Maturity Date or, if
earlier, the date on which the Commitment of such Lender relating to such Loan is

18

 

terminated (except for termination of the Commitment of the assigning Lender pursuant to
Section 10.4(b)).

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

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

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

     (e) Any Lender may request that Loans made by it be evidenced by one or more promissory notes.
In such event, Borrower shall prepare, execute and deliver to such Lender promissory notes payable
to the order of such Lender (or, if requested by such Lender, to such Lender and its registered
assigns and in a form approved by the Administrative Agent). Thereafter, the Loans evidenced by
such promissory notes and interest thereon shall at all times (including after assignment pursuant
to Section 10.4) be represented by one or more promissory notes in such form payable to the
order of the payee named therein (or, if any such promissory note is a registered note, to such
payee and its registered assigns).

     SECTION 2.10 Prepayment of Loans.

     (a) The following amounts shall be applied, at the discretion of the Borrower, to prepay the
Loans or to reduce the Commitments of the Lenders on or before four (4) Business Days following in
the case of paragraphs (i), (ii) and (iv) of this clause (a), the receipt of any such amounts and,
in the case of paragraph (iii) of this clause (a), the effective date of such credit facility:

     (i) One hundred percent (100%) of the Net Financing Proceeds of any issuance of
Equity Interests to third parties by Borrower or any of its Subsidiaries on or after
July 19, 2010;

     (ii) One hundred percent (100%) of the Net Financing Proceeds of any incurrence of
Debt on or after July 19, 2010 by Borrower or any of its Subsidiaries under any debt
securities or any loan, credit or similar facility not described in paragraph (iii)
below, other than (a) any refinancing of, or draws under, the existing revolving credit
facilities of Borrower or any other existing Debt of the Borrower or

19

 

any of its Subsidiaries (including Mariner Energy Inc. and its subsidiaries when
they are merged into Borrower or any of its Subsidiaries or become Subsidiaries of
Borrower, as applicable), (b) any debt securities or any loan, credit or commercial
paper or similar facilities entered into for working capital purposes or otherwise in
the ordinary course of business, (c) any commercial paper issued by Borrower under its
existing $1,950,000,000 commercial paper program, and (d) any securitization facilities
entered into in the ordinary course of business;

     (iii) One hundred percent (100%) of the amount of any commitments under any credit
facility entered into on or after the date hereof by Borrower or any of its Subsidiaries
to provide financing relating to the Acquisitions; and

     (iv) One hundred percent (100%) of the Net Asset Sale Proceeds of any Asset Sale
received on or after July 19, 2010 by Borrower or any of its Subsidiaries.

     (b) Borrower shall have the right at any time and from time to time to prepay any Borrowing in
whole or in part, subject to prior notice in accordance with paragraph (c) of this Section.

     (c) Borrower shall notify the Administrative Agent by telephone (confirmed by telecopy) of any
prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 1:00
p.m., New York City time, three Business Days before the date of prepayment or (ii) in the case of
prepayment of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the date of
prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a
notice of prepayment is given in connection with a conditional notice of termination of the
Commitments as contemplated by Section 2.8, then such notice of prepayment may be revoked
if such notice of termination is revoked in accordance with Section 2.8. Promptly
following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise
the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an
amount that would be permitted in the case of an advance of a Borrowing of the same Type as
provided in Section 2.2. Each prepayment of a Borrowing shall be applied ratably to the
Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to
the extent required by Section 2.12 and compensation for break funding, to the extent
required by Section 2.15.

     SECTION 2.11 Fees.

     (a) Borrower agrees to pay to the Administrative Agent (for the ratable benefit of the Lenders
in accordance with their Applicable Percentage) a fee on the average daily Undrawn Amount (the
“Undrawn Fee”) in an amount equal to the product of the Applicable Rate and the average
daily Undrawn Amount. The Undrawn Fee shall accrue during the period from and including the
earlier to occur of (X) August 2, 2010 or (Y) the Initial Funding Date to but excluding the earlier
to occur of (i) the date on which such Commitment terminates (except for termination of the
Commitment of the assigning Lender pursuant to Section 10.4(b)) or (ii) the Maturity Date.
Accrued Undrawn Fees shall be payable monthly in arrears on the third Business Day following the
end of each calendar month and on the Maturity Date, commencing on the first such date to occur
after the Initial Funding Date; provided that any Undrawn Fees accruing

20

 

as of the date on which the Commitments terminate shall be payable on demand. All Undrawn
Fees shall be computed on the basis of a year of 365 days (or 366 days in a leap year) and shall be
payable for the actual number of days elapsed (including the first day but excluding the last day).

     (b) Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in
the amounts and at the times separately agreed upon between Borrower and the Administrative Agent.

     (c) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent for distribution, in the case of Undrawn Fees, to the Lenders. Fees
paid shall not be refundable under any circumstances.

     SECTION 2.12 Interest.

     (a) The Loans comprising each ABR Borrowing shall bear interest on the daily amount
outstanding at the Alternate Base Rate.

     (b) The Loans comprising each Eurodollar Borrowing shall bear interest on the daily amount
outstanding at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the
Applicable Rate.

     (c) [Intentionally Omitted.]

     (d) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by Borrower hereunder is not paid when due, whether at stated maturity, upon
acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in
paragraph (a) of this Section.

     (e) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and, in the case of Loans on the Maturity Date; provided that (i) interest
accrued pursuant to paragraph (d) of this Section shall be payable on demand, (ii) in the event of
any repayment or prepayment of any Loan, accrued interest on the principal amount repaid or prepaid
shall be payable on the date of such repayment or prepayment, and (iii) in the event of any
conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued
interest on such Loan shall be payable on the effective date of such conversion.

     (f) All interest hereunder shall be computed on the basis of a year of 360 days, except that
interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is
based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed (including the first
day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO
Rate shall be determined by the Administrative Agent, and such determination shall be conclusive
absent demonstrable error.

21

 

     SECTION 2.13 Alternate Rate of Interest. If prior to the commencement of any Interest
Period for a Eurodollar Borrowing:

     (i) the Administrative Agent determines (which determination shall be conclusive absent
demonstrable error) that adequate and reasonable means do not exist for ascertaining the
Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or

     (ii) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
Rate for such Interest Period will not adequately and fairly reflect the cost to such
Lenders of making or maintaining their Loans included in such Borrowing for such Interest
Period;

then the Administrative Agent shall give notice thereof to Borrower and the Lenders by telephone or
telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies
Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any
Interest Election Request that requests the conversion of any Borrowing to, or continuation of any
Borrowing as, a Eurodollar Borrowing shall be ineffective, and (ii) if any Borrowing Request
requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing; provided
that if the circumstances giving rise to such notice affect only one Type of Borrowings, then the
other Type of Borrowings shall be permitted.

     SECTION 2.14 Increased Costs.

     (a) If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or

     (ii) impose on any Lender or the London interbank market any other condition affecting
this Agreement or Eurodollar Loans made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to
reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal,
interest or otherwise), then Borrower will pay to such Lender such additional amount or amounts as
will compensate such Lender for such additional costs incurred or reduction suffered.

     (b) If any Lender reasonably determines that any Change in Law regarding capital requirements
has or would have the effect of reducing the rate of return on such Lender’s capital or on the
capital of such Lender’s holding company, if any, as a consequence of this Agreement or the Loans
made by such Lender, to a level below that which such Lender or such Lender’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s policies and the
policies of such Lender’s holding company with respect to capital adequacy), then from time to time
Borrower will pay to such Lender such additional amount or

22

 

amounts as will compensate such Lender or such Lender’s holding company for any such reduction
suffered.

     (c) A certificate of a Lender setting forth the amount or amounts necessary to compensate such
Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this
Section (together with the calculation thereof) shall be delivered to Borrower and shall be
conclusive absent demonstrable error. Borrower shall pay such Lender the amount shown as due on
any such certificate within 10 days after receipt thereof.

     (d) Failure or delay on the part of any Lender to demand compensation pursuant to this Section
shall not constitute a waiver of such Lender’s right to demand such compensation; provided
that Borrower shall not be required to compensate a Lender pursuant to this Section for any
increased costs or reductions incurred more than 180 days prior to the date that such Lender
notifies Borrower of the Change in Law giving rise to such increased costs or reductions and of
such Lender’s intention to claim compensation therefor; provided further that, if
the Change in Law giving rise to such increased costs or reductions is retroactive, then the
180-day period referred to above shall be extended to include the period of retroactive effect
thereof.

     SECTION 2.15 Break Funding Payments. In the event of (a) the payment of any principal
of any Eurodollar Loan other than on the last day of an Interest Period applicable thereto
(including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other
than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice may be revoked under Section 2.10(b) and is revoked in
accordance therewith), or (d) the assignment of any Eurodollar Loan other than on the last day of
the Interest Period applicable thereto as a result of a request by Borrower pursuant to Section
2.18 then, in any such event, Borrower shall compensate each Lender for the loss, cost and
expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense
to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if
any, of (i) the amount of interest which would have accrued on the principal amount of such Loan
had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such
Loan, for the period from the date of such event to the last day of the then current Interest
Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that
would have been the Interest Period for such Loan), over (ii) the amount of interest which would
accrue on such principal amount for such period at the interest rate which such Lender would bid
were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and
period from other banks in the eurodollar market. A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive, together with the calculation thereof,
pursuant to this Section shall be delivered to Borrower and to the Administrative Agent and shall
be conclusive absent demonstrable error. Borrower shall pay to the Administrative Agent for the
account of such Lender the amount shown as due on any such certificate within 10 days after receipt
thereof.

     SECTION 2.16 Taxes.

     (a) Any and all payments by or on account of any obligation of Borrower hereunder shall be
made free and clear of and without deduction for any Indemnified Taxes or Other Taxes;

23

 

provided that if Borrower shall be required to deduct any Indemnified Taxes or Other
Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional sums payable under
this Section) the Administrative Agent or Lender (as the case may be) receives an amount equal to
the sum it would have received had no such deductions been made, (ii) Borrower shall make such
deductions and (iii) Borrower shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

     (b) In addition, Borrower shall pay any Other Taxes to the relevant Governmental Authority in
accordance with applicable law.

     (c) Borrower shall pay the Administrative Agent and each Lender, within 10 days after written
demand therefor, the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative
Agent or such Lender, as the case may be, on or with respect to any payment by or on account of any
obligation of Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on
or attributable to amounts payable under this Section) and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto (other than any such penalties or interest
arising through the failure of the Administrative Agent or Lender to act as a reasonably prudent
agent or lender, respectively), whether or not such Indemnified Taxes or Other Taxes were correctly
or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the
amount of such payment or liability delivered to Borrower by a Lender, or by the Administrative
Agent on its own behalf or on behalf of a Lender, shall be conclusive absent demonstrable error.

     (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by Borrower
to a Governmental Authority, Borrower shall deliver to the Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy
of the return reporting such payment or other evidence of such payment reasonably satisfactory to
the Administrative Agent.

     (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to Borrower
(with a copy to the Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or reasonably requested
by Borrower as will permit such payments to be made without withholding or at a reduced rate.

     SECTION 2.17 Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

     (a) Borrower shall make each payment required to be made by it to the Administrative Agent
hereunder (whether of principal, interest or fees, or of amounts payable under Section
2.14, 2.15 or 2.16, or otherwise) prior to 1:00 p.m., New York City time, on
the date when due, in immediately available funds, without set-off or counterclaim. All such
payments shall be made to the Administrative Agent, c/o Loan & Agency Services Group, JPMorgan
Chase Bank, N.A., 1111 Fannin Street, 10th Floor, Houston, Texas 77002-8069, Attention:
Ms. Monica Espitia, telephone no.: 713-427-6557, facsimile no.: 713-427-6307,

24

 

except that payments pursuant to Sections 2.14, 2.16 and 10.3 shall be
made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate recipient promptly
following receipt thereof. If any payment hereunder shall be due on a day that is not a Business
Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case
of any payment accruing interest, interest thereon shall be payable for the period of such
extension. All payments hereunder shall be made in dollars.

     (b) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, interest and fees then due hereunder, such funds shall
be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees then due to such
parties, and (ii) second, towards payment of principal then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of principal then due to such parties. If
insufficient funds are received due to Borrower’s entitlement to withhold amounts on account of
Excluded Taxes in relation to a particular Lender, such insufficiency shall not be subject to this
Section 2.17(b) but shall be withheld from and shall only affect payments made to such
Lender.

     (c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Loans resulting in such
Lender receiving payment of a greater proportion of the aggregate amount of its Loans and accrued
interest thereon than the proportion received by any other Lender, then the Lender receiving such
greater proportion shall purchase (for cash at face value) participations in the Loans of other
Lenders to the extent necessary so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on
their respective Loans; provided that (i) if any such participations are purchased and all
or any portion of the payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery, without interest, and
(ii) the provisions of this paragraph shall not be construed to apply to any payment made by
Borrower pursuant to and in accordance with the express terms of this Agreement or any payment
obtained by a Lender as consideration for the assignment of or sale of a participation in any of
its Loans to any assignee or participant, other than to Borrower or any Subsidiary or Affiliate
thereof (as to which the provisions of this paragraph shall apply). Borrower consents to the
foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise against Borrower
rights of set-off and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of Borrower in the amount of such participation.

     (d) Unless the Administrative Agent shall have received notice from Borrower prior to the date
on which any payment is due to the Administrative Agent for the account of the Lenders hereunder
that Borrower will not make such payment, the Administrative Agent may assume that Borrower has
made such payment on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders the amount due. In such event, if Borrower has not in fact made such
payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith
on demand the amount so distributed to such Lender with

25

 

interest thereon, for each day from and including the date such amount is distributed to it to
but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

     (e) If any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.17(d), then the Administrative Agent may, in its discretion, notwithstanding any
contrary provision hereof, (i) apply any amounts thereafter received by the Administrative Agent
for the account of such Lender for the benefit of the Administrative Agent to satisfy such Lender’s
obligations to it under such Section until all such unsatisfied obligations are fully paid, and/or
(ii) hold any such amounts in a segregated account as cash collateral for, and application to, any
future funding obligations of such Lender under any such Section, in the case of each of clauses
(i) and (ii) above, in any order as determined by the Administrative Agent in its reasonable
discretion.

     SECTION 2.18 Mitigation Obligations; Replacement of Lenders.

     (a) If any Lender requests compensation under Section 2.14, or if Borrower is required
to pay any additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 2.16, then such Lender shall use reasonable efforts to designate
a different lending office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of
such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant
to Section 2.14 or 2.16, as the case may be, in the future and (ii) would not
subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous
to such Lender. Borrower hereby agrees to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment.

     (b) If any Lender requests compensation under Section 2.14, or if Borrower is required
to pay any additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 2.16, or if any Lender defaults in its obligation to fund Loans
hereunder, then Borrower may upon notice to such Lender and the Administrative Agent, require such
Lender to assign and delegate, without recourse or expense to, or warranty by, such Lender (in
accordance with and subject to the restrictions contained in Section 10.4), all its
interests, rights and obligations under this Agreement to an assignee designated by Borrower which
meets the requirements of Section 10.4(b) that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment); provided that (i)
Borrower shall have received the prior written consent of the Administrative Agent, which consent
shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal
to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and
accrued interest and fees) or Borrower (in the case of all other amounts), (iii) the assignee and
assignor shall have entered into an Assignment and Acceptance, and (iv) in the case of any such
assignment resulting from a claim for compensation under Section 2.14 or payments required
to be made pursuant to Section 2.16, such assignment will result in a reduction in such
compensation or payments.

26

 

     SECTION 2.19 Defaulting Lenders. Notwithstanding any provision of this Agreement to
the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply
for so long as such Lender is a Defaulting Lender:

          (a) Fees shall cease to accrue on the Commitment of such Defaulting Lender pursuant to
Section 2.11; and

          (b) the Commitment and Loan Exposure of such Defaulting Lender shall not be included (in
either the calculation of aggregate Commitments, outstanding Obligations or otherwise) in
determining whether the Required Lenders have taken or may take any action hereunder (including any
consent to any amendment, waiver or other modification pursuant to Section 10.2); provided, that
this clause (b) shall not apply to the vote of a Defaulting Lender in the case of an amendment,
waiver or other modification requiring the (i) the unanimous consent of the Lenders or (ii) the
consent of such Lender as an “affected” Lender.

In the event that the Administrative Agent and Borrower each agrees that a Defaulting Lender has
adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Loan
Exposure of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment.

ARTICLE III

Representations and Warranties

     In order to induce the Lenders and the Agents to enter into this Agreement and the Lenders to
make Loans hereunder, Borrower represents and warrants unto the Agents and each Lender as set forth
in this Article III.

     SECTION 3.1 Organization. Borrower is a corporation, and each of its Subsidiaries is
a corporation or other legal entity, in either case duly incorporated or otherwise properly
organized, validly existing and in good standing under the laws of its jurisdiction of
incorporation or organization and has all requisite authority, permits and approvals, and is in
good standing to conduct its business in each jurisdiction in which its business is conducted where
the failure to so qualify would have a Material Adverse Effect.

     SECTION 3.2 Authorization and Validity. The execution, delivery and performance by
Borrower of this Agreement and each other Loan Document executed or to be executed by it, are
within Borrower’s corporate powers, have been duly authorized by all necessary corporate action on
behalf of it, and do not (a) contravene Borrower’s articles of incorporation or other
organizational documents, as the case may be; (b) contravene any material contractual restriction,
law or governmental regulation or court decree or order binding on or affecting Borrower or any
Subsidiary; or (c) result in, or require the creation or imposition of, any Lien, not permitted by
Section 7.1, on any of Borrower’s or any Subsidiary’s properties. This Agreement
constitutes, and each other Loan Document executed by Borrower will, on the due execution and
delivery thereof, constitute, the legal, valid and binding obligations of Borrower enforceable in
accordance with their respective terms subject as to enforcement only to

27

 

bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditor rights generally and to general principles of equity.

     SECTION 3.3 Government Approval and Regulation. No authorization or approval or other
action by, and no notice to or filing with, any governmental authority or regulatory body or other
Person is required for the due execution, delivery or performance by Borrower of this Agreement or
any other Loan Document. Neither Borrower nor any of its Subsidiaries is an “investment company,”
within the meaning of the Investment Company Act of 1940, as amended, or a “holding company,” or a
“subsidiary company” of a “holding company,” or an “affiliate” of a “holding company” or of a
“subsidiary company” of a “holding company,” within the meaning of the Public Utility Holding
Company Act of 1935, as amended.

     SECTION 3.4 Pension and Welfare Plans. During the twelve-consecutive-month period
prior to the date of the execution and delivery of this Agreement and prior to the date of any
Borrowing hereunder, no steps have been taken to terminate any Pension Plan, and no contribution
failure has occurred with respect to any Pension Plan sufficient to give rise to a lien under
Section 302(f) of ERISA. No condition exists or event or transaction has occurred with respect to
any Pension Plan which would result in the incurrence by Borrower or any member of the Controlled
Group of any liability, fine or penalty in excess of $100,000,000. Neither Borrower nor any member
of the Controlled Group has any contingent liability with respect to any post-retirement benefit
under a Welfare Plan, other than liability for continuation coverage described in Part 6 of Title I
of ERISA.

     SECTION 3.5 Regulation U. Borrower is not engaged in the business of extending credit
for the purpose of purchasing or carrying margin stock, and no proceeds of any Loans will be used
for a purpose which violates, or would be inconsistent with, Regulation U. Terms for which
meanings are provided in Regulations U are used in this Section with such meanings.

     SECTION 3.6 Taxes. Borrower and each of its Subsidiaries has to the best knowledge of
Borrower after due investigation filed all tax returns and reports required by law to have been
filed by it and has paid all taxes and governmental charges thereby shown to be owing, except any
such taxes or charges which are being contested in good faith by appropriate proceedings and for
which adequate reserves in accordance with GAAP shall have been set aside on its books or which the
failure to file or pay could not reasonably be expected to have a Material Adverse Effect.

     SECTION 3.7 Subsidiaries; Restricted Subsidiaries. Schedule 3.7 hereto
contains an accurate list of all of the presently existing Subsidiaries, including, without
limitation, Restricted Subsidiaries, of Borrower as of the date of this Agreement, setting forth
their respective jurisdictions of incorporation or organization and the percentage of their
respective capital stock or, the revenue share attributable to the general and limited partnership
interests, as the case may be, owned by Borrower or other Subsidiaries. All of the issued and
outstanding shares of capital stock of such Subsidiaries which are corporations have been duly
authorized and issued and are fully paid and non-assessable.

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ARTICLE IV

Conditions

     SECTION 4.1 Effectiveness. This Agreement shall become effective upon the execution
of this Agreement by all of the parties listed on the signature pages hereto.

     SECTION 4.2 Initial Loan. Borrower shall be permitted to request Borrowings under
this Agreement on and after the Initial Funding Date, which shall occur upon the prior or
concurrent satisfaction or waiver of each of the conditions precedent set forth in this Section
4.2.

	 	(a)	 	Resolutions and Officers Certificates. The Administrative Agent shall
have received from Borrower a certificate, dated the Initial Funding Date, of the
Secretary or Assistant Secretary of Borrower as to (i) resolutions of its governing
board, then in full force and effect authorizing the execution, delivery and
performance of this Agreement and each other Loan Document to be executed by it; (ii)
the incumbency and signatures of those of its officers authorized to act with respect
to this Agreement and each other Loan Document executed by it; and (iii) its
certificate of incorporation and bylaws; upon which certificates each Lender may
conclusively rely until it shall have received a further certificate of an authorized
officer of Borrower canceling or amending such prior certificate.
	 
	 	(b)	 	Opinions of Counsel. The Administrative Agent shall have received
opinions, dated the Initial Funding Date, addressed to the Administrative Agent, the
other Agents and all Lenders, from Bracewell & Giuliani LLP, counsel to Borrower, in a
form reasonably acceptable to the Administrative Agent and its counsel.
	 
	 	(c)	 	Closing Fees and Expenses. The Administrative Agent shall have
received for its own account, or for the account of each Lender and other Agent, as the
case may be, all fees, costs and expenses due and payable pursuant hereto.
	 
	 	(d)	 	Financial Statements. The Administrative Agent shall have received a
certificate, signed by an Authorized Officer of Borrower, stating that the audited
consolidated financial statements of Borrower and its Subsidiaries for fiscal year 2009
(the “2009 Financials”) fairly present Borrower’s financial condition and that
no material adverse change in the condition or operations of Borrower and its
Subsidiaries, taken as a whole, from that reflected in the 2009 Financials has occurred
and is continuing from December 31, 2009 through July 20, 2010.
	 
	 	(e)	 	Initial Funding Notice. The Administrative Agent shall have received
the Initial Funding Notice.
	 
	 	(f)	 	Litigation. The Administrative Agent shall have received a
certificate, dated the Initial Funding Date, signed by an Authorized Officer of
Borrower, stating that no litigation, arbitration, governmental proceeding, Tax claim,
dispute or administrative or other proceeding shall be pending or, to the knowledge of
Borrower, threatened against Borrower or any of its Subsidiaries which purports

29

 

	 	 	 	to affect the legality, validity or enforceability of this Agreement or any other
Loan Document.

	 	(g)	 	Purchase and Sale Agreements. The Administrative Agent shall have
received copies of the executed Purchase and Sale Agreements, certified as of the
Initial Funding Date as being true and correct by an Authorized Officer or a secretary
or assistant secretary of Borrower.
	 
	 	(h)	 	Schedule 3.7. The Borrower shall have delivered Schedule 3.7 to this
Agreement to the Administrative Agent in a form reasonably satisfactory to the
Administrative Agent.
	 
	 	(i)	 	Other Documents. The Administrative Agent shall have received such
other instruments and documents as any of the Agents may have reasonably requested.

The Administrative Agent shall notify Borrower, the other Agents and the Lenders of the Initial
Funding Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the
obligations of the Lenders to make Loans hereunder shall not become effective unless each of the
foregoing conditions is satisfied (or waived pursuant to Section 10.2) at or prior to 3:00
p.m., New York City time, on September 28, 2010 (and, in the event such conditions are not so
satisfied or waived, the Commitments shall terminate at such time).

     SECTION 4.3 All Loans. The obligation of each Lender to fund any Loan which results
in an increase in the aggregate outstanding principal amount of Loans under this Agreement on the
occasion of any Borrowing shall be subject to the satisfaction of each of the conditions precedent
set forth in this Section 4.3.

	 	(a)	 	Compliance with Warranties and No Default. Both before and after
giving effect to any Borrowing, the following statements shall be true and correct: (1)
the representations and warranties set forth in Article III shall be true and
correct with the same effect as if then made (unless stated to relate solely to an
earlier date, in which case such representations and warranties shall be true and
correct as of such earlier date); and (b) no Default or Event of Default shall have
then occurred and be continuing.
	 
	 	(b)	 	Borrowings. The Administrative Agent shall have received a Borrowing
Request for such Borrowing.
	 
	 	(c)	 	Fees. The Administrative Agent shall have received from Borrower
payment of any fees then due and owing under this Agreement or under any other
agreement between the Administrative Agent and Borrower with respect to this Agreement
or the transactions contemplated hereby.

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ARTICLE V

Affirmative Covenants

     Until the Commitments have expired or been terminated and all Obligations shall have been paid
in full and unless the Required Lenders shall otherwise consent in writing, Borrower covenants and
agrees with the Lenders that:

     SECTION 5.1 Financial Reporting and Notices. Borrower will furnish, or will cause to
be furnished, to each Lender and the Administrative Agent copies of the following financial
statements, reports, notices and information:

	 	(a)	 	within 90 days after the end of each Fiscal Year of Borrower, a copy of the
audited annual report for such fiscal year for Borrower and its Subsidiaries, including
therein consolidated balance sheets of Borrower and its Subsidiaries as of the end of
such fiscal year and consolidated statements of earnings and cash flow of Borrower and
its Subsidiaries for such fiscal year, in each case certified (without qualification)
by independent public accountants of nationally recognized standing selected by
Borrower;
	 
	 	(b)	 	within 45 days after the end of each of the first three fiscal quarters of each
fiscal year of Borrower commencing with the fiscal quarter ending September 30, 2010,
unaudited consolidated balance sheets of Borrower and its Subsidiaries as of the end of
such fiscal quarter and consolidated statements of earnings and cash flow of Borrower
and its Subsidiaries for such fiscal quarter and for the period commencing at the end
of the previous fiscal year and ending with the end of such fiscal quarter, certified
by an Authorized Officer of Borrower;
	 
	 	(c)	 	together with the financial statements described in (a) and (b), above a
compliance certificate, in substantially the form of Exhibit A or any other
form approved by the Administrative Agent, executed by an Authorized Officer of
Borrower;
	 
	 	(d)	 	within five (5) days after the occurrence of each Default, a statement of an
Authorized Officer of Borrower setting forth details of such Default and the action
which Borrower has taken and proposes to take with respect thereto;
	 
	 	(e)	 	promptly after the sending or filing thereof, copies of all material public
filings, reports and communications from Borrower, and all reports and registration
statements which Borrower or any of its Subsidiaries files with the Securities and
Exchange Commission or any national securities exchange;
	 
	 	(f)	 	immediately upon becoming aware of the institution of any steps by Borrower or
any other Person to terminate any Pension Plan, or the failure to make a required
contribution to any Pension Plan if such failure is sufficient to give rise to a Lien
under Section 302(f) of ERISA, or the taking of any action with respect to a Pension
Plan which would reasonably be expected to result in the requirement that Borrower
furnish a bond or other security to the PBGC or such Pension Plan,

31

 

	 	 	 	or the occurrence of any event with respect to any Pension Plan which would
reasonably be expected to result in the incurrence by Borrower of any liability,
fine or penalty in excess of $100,000,000, or any material increase in the
contingent liability of Borrower with respect to any postretirement Welfare Plan
benefit, notice thereof;

	 	(g)	 	if not previously delivered pursuant to Section 4.2(g), then on or
before August 2, 2010, copies of the executed Purchase and Sale Agreements, certified
as of the date of delivery as being true and correct by an Authorized Officer or a
secretary or assistant secretary of Borrower; and
	 
	 	(h)	 	such other information respecting the financial condition or operations of
Borrower or any of its Subsidiaries as any Lender through the Administrative Agent may
from time to time reasonably request.

     SECTION 5.2 Compliance with Laws. Borrower will, and will cause each of its
Subsidiaries to, comply in all material respects with all applicable laws, rules, regulations and
orders where noncompliance therewith may reasonably be expected to have a Material Adverse Effect,
except where the necessity of compliance therewith is contested in good faith by appropriate
proceedings.

     SECTION 5.3 Maintenance of Properties. Borrower will, and will cause each of its
Subsidiaries to, maintain, preserve, protect and keep valid title to, or valid leasehold interest
in, all of its properties and assets, real and personal, tangible and intangible, of any nature
whatsoever (including patents, trademarks, trade names, service marks and copyrights), free and
clear of all Liens, charges or claims (including infringement claims with respect to patents,
trademarks, copyrights and the like) except as permitted pursuant to Section 7.1 and except
for imperfections and other burdens of title thereto as do not in the aggregate materially detract
from the value thereof or for the use thereof in their businesses (taken as a whole).

     SECTION 5.4 Insurance. Borrower will, and will cause each of its Subsidiaries to,
maintain or cause to be maintained with responsible insurance companies (subject to self-insured
retentions) insurance with respect to its properties and business against such casualties and
contingencies and of such types and in such amounts as is customary in the case of similar
businesses.

     SECTION 5.5 Books and Records. Borrower will, and will cause each of its Subsidiaries
to, keep books and records which accurately reflect all of its business affairs and transactions
and permit the Administrative Agent and the other Agents and each Lender through the Administrative
Agent or any of their respective authorized representatives, during normal business hours and at
reasonable intervals, to visit all of its offices, to discuss its financial matters with its
officers and to examine (and, at the expense of the Administrative Agent or such other Agent or
Lender or, if a Default or Event of Default has occurred and is continuing, at the expense of
Borrower, photocopy extracts from) any of its books or other records.

     SECTION 5.6 Use of Proceeds. Borrower will, and will cause each Subsidiary to, use
the proceeds of the Loans for the purpose of funding payment of the costs associated with the

32

 

Acquisitions and to pay fees and expenses in connection with the Acquisitions and this
Agreement.

ARTICLE VI

Financial Covenant

     Until the Commitments have expired or been terminated and all Obligations shall have been paid
in full and unless the Required Lenders shall otherwise consent in writing, Borrower covenants and
agrees with the Lenders that:

     SECTION 6.1 Ratio of Total Debt to Capital. Borrower will not permit its ratio
(expressed as a percentage) of (i) the consolidated Debt of Borrower and its Subsidiaries to (ii)
Capital to be greater than 60% at the end of any fiscal quarter beginning with the fiscal quarter
ending September 30, 2010.

ARTICLE VII

Negative Covenants

     Until the Commitments have expired or terminated and all Obligations have been paid in full
and unless the Required Lenders shall otherwise consent in writing, Borrower covenants and agrees
with the Lenders that:

     SECTION 7.1 Liens. Borrower will not, and will not permit any of its Subsidiaries to,
create, incur, assume or suffer to exist any Lien upon the stock, assets, or indebtedness of
Borrower or any of its Subsidiaries to secure Indebtedness of Borrower or any other Person except:

	 	(i)	 	Liens on any property or assets owned or leased by Borrower or any Subsidiary
existing at the time such property or asset was acquired (or at the time such Person
became a Subsidiary); provided that in the case of the acquisition of a
Subsidiary such Lien only encumbers property or assets immediately prior to, or at the
time of, the acquisition by Borrower of such Subsidiary;
	 
	 	(ii)	 	purchase money Liens so long as such Liens only encumber property or assets
acquired with the proceeds of the purchase money indebtedness incurred in connection
with such Lien;
	 
	 	(iii)	 	Liens granted by an Unrestricted Subsidiary on its assets to secure
Indebtedness incurred by such Unrestricted Subsidiary;
	 
	 	(iv)	 	Liens on assets of a Restricted Subsidiary securing Indebtedness of a
Restricted Subsidiary owing to Borrower or to another Restricted Subsidiary or Liens on
assets of an Unrestricted Subsidiary securing Indebtedness of an Unrestricted
Subsidiary owing to Borrower, to a Restricted Subsidiary or to another Unrestricted
Subsidiary;

33

 

	 	(v)	 	Liens existing on the Effective Date set forth on Schedule 7.1;
	 
	 	(vi)	 	Liens arising under operating agreements;
	 
	 	(vii)	 	Liens reserved in oil, gas and/or mineral leases for bonus rental payments and
for compliance with the terms of such leases;
	 
	 	(viii)	 	Liens pursuant to partnership agreements, oil, gas and/or mineral leases, farm-out
agreements, division orders, contracts for the sale, delivery, purchase, exchange, or
processing of oil, gas and/or other hydrocarbons, unitization and pooling declarations
and agreements, operating agreements, development agreements, area of mutual interest
agreements, forward sales of oil, natural gas and natural gas liquids, and other
agreements which are customary in the oil, gas and other mineral exploration,
development and production business and in the business of processing of gas and gas
condensate production for the extraction of products therefrom;
	 
	 	(ix)	 	Liens on the stock or other ownership interests of or in any Unrestricted
Subsidiary;
	 
	 	(x)	 	Liens for taxes, assessments or similar charges, incurred in the ordinary
course of business, that are not yet due and payable or that are being contested as set
forth in Section 3.6;
	 
	 	(xi)	 	pledges or deposits made in the ordinary course of business to secure payment
of worker’s compensation, or to participate in any fund in connection with worker’s
compensation, unemployment insurance, old-age pensions or other social security
programs;
	 
	 	(xii)	 	Liens imposed by mandatory provisions of law such as for mechanics’,
materialmen’s, warehousemen’s, carriers’, or other like Liens, securing obligations
incurred in the ordinary course of business that are not yet due and payable;
	 
	 	(xiii)	 	Liens in renewal or extension of any of the foregoing permitted Liens, so long as
limited to the property or assets encumbered and the amount of Indebtedness secured
immediately prior to such renewal or extension; and
	 
	 	(xiv)	 	in addition to Liens permitted by clauses (i) through (xiii)
above, Liens on property or assets of the Borrower and its Subsidiaries if the
aggregate Indebtedness of all such Persons secured thereby does not exceed five percent
(5%) of Borrower’s Consolidated Assets; provided that nothing in this
definition shall in and of itself constitute or be deemed to constitute an agreement or
acknowledgment by the Administrative Agent or any Lender that the Indebtedness subject
to or secured by any such Lien ranks (apart from the effect of any Lien included in or
inherent in any such Liens) in priority to the Obligations.

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     SECTION 7.2 Mergers. Borrower will not liquidate or dissolve, consolidate with, or
merge into or with, any other Person, or sell, lease or otherwise transfer all or substantially all
of its assets unless (a) Borrower is the survivor of such merger or consolidation, and (b) no
Default or Event of Default has occurred and is continuing or would occur after giving effect
thereto.

     SECTION 7.3 Asset Dispositions. Borrower will not, and will not permit any of its
Restricted Subsidiaries to, sell, transfer, lease, contribute or otherwise convey, or grant
options, warrants or other rights with respect to all or substantially all of its assets.
Notwithstanding the foregoing, nothing herein shall prohibit any transfer of any assets from
Borrower to any Subsidiary of Borrower, from any Subsidiary of Borrower to Borrower or from a
Subsidiary of Borrower to another Subsidiary of Borrower.

     SECTION 7.4 Transactions with Affiliates. Borrower will not, and will not permit any
of its Subsidiaries to, enter into, or cause, suffer or permit to exist any arrangement or contract
with any of its other Affiliates unless such arrangement or contract or group of arrangements or
contracts, as the case may be, are conducted on an arms-length basis; provided,
however, that this Section shall not apply to Apache Offshore Investment Partnership, a
Delaware general partnership, Apache Offshore Petroleum Limited Partnership, a Delaware limited
partnership, Main Pass 151 Pipeline Company, a Texas general partnership, and Apache 681/682 Joint
Venture, a Texas joint venture.

     SECTION 7.5 Restrictive Agreements. Borrower will not, and will not permit any of its
Subsidiaries to, enter into any agreement (excluding this Agreement, or any other Loan Document)
limiting the ability of Borrower to amend or otherwise modify this Agreement or any other Loan
Document. Borrower will not, and will not permit any of its Restricted Subsidiaries to, enter into
any agreement which restricts or prohibits the ability of any Restricted Subsidiary to make any
payments, directly or indirectly, to Borrower by way of dividends, advances, repayments of loans or
advances, reimbursements of management and other intercompany charges, expenses and accruals or
other returns on investments, or any other agreement or arrangement which restricts the ability of
any such Restricted Subsidiary to make any payment, directly or indirectly, to Borrower.

     SECTION 7.6 Guaranties. Borrower will not, and will not permit any of its Restricted
Subsidiaries to, guaranty any Indebtedness not included in the consolidated Debt of Borrower and
its Subsidiaries in an aggregate outstanding principal amount at any time exceeding $100,000,000.

ARTICLE VIII

Events of Default

     SECTION 8.1 Listing of Events of Default. Each of the following events or occurrences
described in this Section 8.1 shall constitute an “Event of Default”:

	 	(a)	 	Non-Payment of Obligations. Borrower shall default in the payment or
prepayment when due of any principal of any Loan, or Borrower shall default

35

 

	 	 	 	(and such default shall continue unremedied for a period of five (5) Business Days)
in the payment when due of any interest, fee or of any other obligation hereunder.

	 	(b)	 	Breach of Warranty. Any representation or warranty of Borrower made or
deemed to be made hereunder or in any other Loan Document or any other writing or
certificate furnished by or on behalf of Borrower to the Administrative Agent, any
other Agent or any Lender for the purposes of or in connection with this Agreement or
any such other Loan Document is or shall be false or misleading when made in any
material respect.
	 
	 	(c)	 	Non-Performance of Covenants and Obligations. Borrower shall default
in the due performance and observance of any of its obligations under Section
7.2 or under Article VI.
	 
	 	(d)	 	Non-Performance of Other Covenants and Obligations. Borrower shall
default in the due performance and observance of any other agreement contained herein
or in any other Loan Document, and such default shall continue unremedied for a period
of 30 days after notice thereof shall have been given to Borrower by the Administrative
Agent or the Required Lenders.
	 
	 	(e)	 	Default on Other Indebtedness. A default shall occur in the payment
when due (subject to any applicable grace period), whether by acceleration or
otherwise, of any direct payment obligation of Borrower or any of its Restricted
Subsidiaries in any amount in excess of $100,000,000.
	 
	 	(f)	 	Pension Plans. Any of the following events shall occur with respect to
any Pension Plan: (a) the termination of a Pension Plan if, as a result of such
termination, Borrower or any member of its Controlled Group could be required to make a
contribution to such Pension Plan, or would reasonably expect to incur a liability or
obligation to such Pension Plan, in excess of $100,000,000; or (b) a contribution
failure occurs with respect to any Pension Plan sufficient to give rise to a lien under
Section 302(f) of ERISA with respect to a liability or obligation in excess of
$100,000,000.
	 
	 	(g)	 	Bankruptcy and Insolvency. Borrower or any of its Restricted
Subsidiaries shall (a) become insolvent or generally fail to pay, or admit in writing
its inability or unwillingness to generally pay, debts as they become due; (b) apply
for, consent to, or acquiesce in, the appointment of a trustee, receiver, sequestrator
or other custodian for Borrower, or any of its Restricted Subsidiaries, or any
substantial part of the property of any thereof, or make a general assignment for the
benefit of creditors; (c) in the absence of such application, consent or acquiescence,
permit or suffer to exist the appointment of a trustee, receiver, sequestrator or other
custodian for Borrower, or any of its Restricted Subsidiaries, or for a substantial
part of the property of any thereof, and such trustee, receiver, sequestrator or other
custodian shall not be discharged within 60 days, provided that Borrower and each
Restricted Subsidiary hereby expressly authorizes the Administrative Agent,

36

 

	 	 	 	each other Agent and each Lender to appear in any court conducting any relevant
proceeding during such 60-day period to preserve, protect and defend their rights
under the Loan Documents; (d) permit or suffer to exist the commencement of any
bankruptcy, reorganization, debt arrangement or other case or proceeding under any
bankruptcy or insolvency law, or any dissolution, winding up or liquidation
proceeding, in respect of Borrower or any of its Restricted Subsidiaries, and, if
any such case or proceeding is not commenced by Borrower or such Restricted
Subsidiary, such case or proceeding shall be consented to or acquiesced in by
Borrower or such Restricted Subsidiary or shall result in the entry of an order for
relief or shall remain for 60 days undismissed, provided that Borrower and each
Restricted Subsidiary hereby expressly authorizes the Administrative Agent and each
Lender to appear in any court conducting any such case or proceeding during such
60-day period to preserve, protect and defend their rights under the Loan Documents;
or (e) take any corporate or partnership action authorizing, or in furtherance of,
any of the foregoing.

	 	(h)	 	Judgments. Any judgment or order for the payment of money in an amount
of $100,000,000 or more in excess of valid and collectible insurance in respect thereof
or in excess of an indemnity with respect thereto reasonably acceptable to the Required
Lenders shall be rendered against Borrower or any of its Restricted Subsidiaries and
either (a) enforcement proceedings shall have been commenced by any creditor upon such
judgment or order, or (b) such judgment shall have become final and non-appealable and
shall have remained outstanding for a period of 60 consecutive days.
	 
	 	(i)	 	Change in Control. Any Person or group of Persons (within the meaning
of Section 13 or 14 of the Securities Exchange Act) shall acquire beneficial ownership
(within the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission
under the Securities Exchange Act) of 33 1/3% or more of the outstanding shares of
common stock of Borrower.

     SECTION 8.2 Action if Bankruptcy. If any Event of Default described in Section
8.1(g) shall occur, the Commitments (if not theretofore terminated) shall automatically
terminate and the outstanding principal amount of all outstanding Loans and all other obligations
hereunder shall automatically be and become immediately due and payable, without notice or demand.

     SECTION 8.3 Action if Other Event of Default. If any Event of Default (other than any
Event of Default described in Section 8.2) shall occur for any reason, whether voluntary or
involuntary, and be continuing, the Administrative Agent, upon the direction of the Required
Lenders, shall by notice to Borrower declare all of the outstanding principal amount of the Loans
and all other obligations hereunder to be due and payable and the Commitments (if not theretofore
terminated) to be terminated, whereupon the full unpaid amount of such Loans and other obligations
shall be and become immediately due and payable, without further notice, demand or presentment, and
the Commitments shall terminate.

37

 

ARTICLE IX

Agents

     Each of the Lenders hereby irrevocably appoints JPMorgan Chase Bank, N.A. as Administrative
Agent, and Citibank, N.A., Bank of America, N.A. and Goldman Sachs Bank USA as Co-Syndication
Agents, and authorizes each such Agent to take such actions on its behalf and to exercise such
powers as are delegated to such Agent by the terms hereof, together with such actions and powers as
are reasonably incidental thereto.

     Any bank serving as an Agent hereunder shall have the same rights and powers in its capacity
as a Lender as any other Lender and may exercise the same as though it were not an Agent, and such
bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of
business with Borrower or any Subsidiary or other Affiliate thereof as if it were not an Agent
hereunder.

     The Agents and Lenders shall not have any duties or obligations except those expressly set
forth herein. Without limiting the generality of the foregoing, (a) the Agents and Lenders shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) each Agent shall not have any duty to take any discretionary action
or exercise any discretionary powers, except discretionary rights and powers expressly contemplated
hereby that such Agent is required to exercise in writing by the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the circumstances as provided in
Section 10.2), and (c) except as expressly set forth herein, each Agent shall not have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as such
Agent or any of its Affiliates in any capacity. Each Agent shall not be liable for any action
taken or not taken by it with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the circumstances as provided in
Section 10.2) or in the absence of its own gross negligence or willful misconduct. Each
Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof
is given to such Agent by Borrower or a Lender, and such Agent shall not be responsible for or have
any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in
connection with this Agreement, (ii) the contents of any certificate, report or other document
delivered hereunder or in connection herewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement or any other agreement, instrument
or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere
herein, other than to confirm receipt of items expressly required to be delivered to such Agent.
None of the Persons identified on the facing page of this Agreement as the “Co-Lead Arrangers and
Joint Bookrunners” (the “Arrangers”), or the Co-Syndication Agents shall have any right,
power, obligation, liability, responsibility or duty under this Agreement or any other Loan
Document other than, except in the case of the Arrangers, those applicable to all Lenders as such.

     The Administrative Agent and the other Agents shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent, statement,

38

 

instrument, document or other writing believed by it to be genuine and to have been signed or
sent by the proper Person. The Administrative Agent and the other Agents also may rely upon any
statement made to it orally or by telephone and believed by it to be made by the proper Person, and
shall not incur any liability for relying thereon. The Administrative Agent and the other Agents
may consult with legal counsel (who may be counsel for Borrower), independent accountants and other
experts selected by it, and shall not be liable for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or experts.

     Any Agent may perform any and all its duties and exercise its rights and powers by or through
any one or more sub-agents appointed by such Agent. Any Agent and any such sub-agent may perform
any and all its duties and exercise its rights and powers through their respective Related Parties.
The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to
the Related Parties of such Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided for herein as well
as activities as an Agent.

     Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders and
Borrower. Upon any such resignation, Borrower shall have the right, in consultation with the
Required Lenders, to appoint one of the Lenders as a successor. If no successor shall have been so
appointed by Borrower and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may,
on behalf of the Lenders, appoint a successor Administrative Agent which shall be a bank with an
office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and
become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations
hereunder. The fees payable by Borrower to a successor Administrative Agent shall be the same as
those payable to its predecessor unless otherwise agreed between Borrower and such successor.
After the Administrative Agent’s resignation hereunder, the provisions of this Article and
Section 10.3 shall continue in effect for the benefit of such retiring Administrative
Agent, its sub-agents and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while it was acting as Administrative Agent.

     Each Lender acknowledges that it has, independently and without reliance upon any Agent or any
other Lender and based on such documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon any Agent or any other Lender and based on such
documents and information as it shall from time to time deem appropriate, continue to make its own
decisions in taking or not taking action under or based upon this Agreement, any related agreement
or any document furnished hereunder or thereunder.

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ARTICLE X

Miscellaneous

     SECTION 10.1 Notices. Except in the case of notices and other communications
expressly permitted to be given by telephone, all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopy, as follows:

     (a) if to Borrower, to:

	 	 	 	 	 

	 	 	Apache Corporation
	 	 	2000 Post Oak Boulevard, Suite 100
	 	 	Houston, Texas 77056-4400
	 

	 	Attention:
	 	Matthew W. Dundrea
	 

	 	 	 	Vice President and Treasurer
	 

	 	Telephone:
	 	(713) 296-6640
	 

	 	Facsimile:
	 	(713) 296-6458

          with a copy to:

	 	 	 	 	 

	 	 	Assistant Treasurer
	 	 	Apache Corporation
	 	 	2000 Post Oak Boulevard, Suite 100
	 	 	Houston, Texas 77056-4400
	 

	 	Telephone:
	 	(713) 296-6642
	 

	 	Facsimile:
	 	(713) 296-6477

          and with copy to:

	 	 	 	 	 

	 	 	Vice President and General Counsel
	 	 	Apache Corporation
	 	 	2000 Post Oak Boulevard, Suite 100
	 	 	Houston, Texas 77056-4400
	 

	 	Telephone:

Facsimile:
	 	(713) 296-6204

(713) 296-6458

     (b) if to the Administrative Agent, to:

	 	 	 	 	 

	 	 	JPMorgan Chase Bank, N.A.
	 	 	Loan & Agency Services Group
	 	 	1111 Fannin Street, 10th Floor
	 	 	Houston, Texas 77002
	 

	 	Attention:
	 	Monica Espitia
	 

	 	Telephone:
	 	(713) 427-6557
	 

	 	Facsimile:
	 	(713) 427-6307

          with a copy to:

40

 

	 	 	 	 	 

	 	 	JPMorgan Chase Bank, N.A.
	 	 	707 Travis Street, 12th floor North
	 	 	Houston, Texas 77002
	 

	 	Attention:
	 	Debra Hrelja
	 

	 	Telephone:
	 	(713) 216-4039
	 

	 	Facsimile:
	 	(713) 216-8870

     (c) if to any other Lender, to it at its address (or telecopy number) provided to the
Administrative Agent and Borrower or as set forth in its Administrative Questionnaire.

Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in
its discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it; provided that approval of such procedures may
be limited to particular notices or communications.

Any party hereto may change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto. All notices and other communications given to any
party hereto in accordance with the provisions of this Agreement shall be deemed to have been given
on the date of receipt.

     SECTION 10.2 Waivers; Amendments.

     (a) No failure or delay by the Administrative Agent or any Lender in exercising any right or
power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any other right or power.
The rights and remedies of the Administrative Agent and the Lenders hereunder are cumulative and
are not exclusive of any rights or remedies that they would otherwise have. No waiver of any
provision of this Agreement or any other Loan Document or consent to any departure by Borrower
therefrom shall in any event be effective except in the specific instance and for the purpose for
which given. Without limiting the generality of the foregoing, the making of a Loan shall not be
construed as a waiver of any Default, regardless of whether the Administrative Agent or any Lender
may have had notice or knowledge of such Default at the time.

     (b) Neither this Agreement nor any other Loan Document nor any provision hereof or thereof may
be waived, amended or modified except pursuant to an agreement or agreements in writing entered
into by Borrower and the Required Lenders or by Borrower and the Administrative Agent with the
consent of the Required Lenders; provided that no such agreement shall (i) increase the
Commitment of any Lender or the Commitments without the written consent of such Lender or each
Lender, respectively, (ii) reduce the principal amount of any Loan or reduce the rate of interest
thereon, or reduce any fees payable hereunder, without the written consent of each Lender affected
thereby, (iii) postpone the scheduled date of payment of

41

 

the principal amount of any Loan, or any interest thereon, or any fees payable hereunder, or
reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of
expiration of any Commitment, without the written consent of each Lender affected thereby, (iv)
change Section 2.17(b) or (c) in a manner that would alter the pro rata sharing of
payments required thereby, without the written consent of each Lender, or (v) change any of the
provisions of this Section or the definition of “Required Lenders” or any other provision hereof or
thereof specifying the number or percentage of Lenders required to waive, amend or modify any
rights hereunder or thereunder or make any determination or grant any consent hereunder or
thereunder, without the written consent of each Lender; provided further that no
such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative
Agent hereunder or thereunder without the prior written consent of the Administrative Agent.

     SECTION 10.3 Expenses; Indemnity; Damage Waiver.

     (a) Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by J.P. Morgan
Securities, Inc. and the Agents, including the reasonable fees, charges and disbursements of
counsel for the Agents, in connection with the preparation, execution and delivery of this
Agreement or any amendments, modifications or waivers of the provisions hereof (whether or not the
transactions contemplated hereby or thereby shall be consummated) and (ii) all reasonable
out-of-pocket expenses incurred by the Agents or any Lender, including the reasonable fees, charges
and disbursements of any counsel for the Agents or any Lender, in connection with the enforcement
or protection of its rights in connection with this Agreement, including its rights under this
Section, or in connection with the Loans made hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such Loans or this
Agreement.

     (b) Borrower shall indemnify the Agents, the Arrangers and each Lender, and each Related Party
of any of the foregoing Persons (each such Person being called an “Indemnitee”), WHETHER OR
NOT RELATED TO ANY NEGLIGENCE OF THE INDEMNITEE, against, and hold each Indemnitee harmless from,
any and all losses, claims, damages, liabilities and related expenses, including the reasonable
fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against
any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery
of this Agreement or any agreement or instrument contemplated hereby, the performance by the
parties hereto of their respective obligations hereunder or the consummation of the Transactions or
any other transactions contemplated hereby, (ii) any Loan or the actual or proposed use of the
proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or
from any property owned or operated by Borrower or any of its Subsidiaries, or any Environmental
Liability related in any way to Borrower or any of its Subsidiaries, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether brought by a third
party or by the Borrower and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses (i) resulted from the gross
negligence or willful misconduct of such Indemnitee or (ii) arise in connection with any issue in
litigation commenced by Borrower or any of its Subsidiaries against any Indemnitee for which a
final judgment is entered in favor of Borrower or any of its Subsidiaries against such Indemnitee.

42

 

     (c) To the extent that Borrower fails to pay any amount required to be paid by it to the
Administrative Agent under paragraph (a) or (b) of this Section, each Lender severally agrees to
pay to the Administrative Agent, such Lender’s Applicable Percentage (determined as of the time
that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the Administrative Agent.

     (d) To the extent permitted by applicable law, Borrower shall not assert, and hereby waives,
any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential
or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or
as a result of, this Agreement or any agreement or instrument contemplated hereby, the Transactions
or any Loan or the use of the proceeds thereof, except for any such claim arising from such
Indemnitee’s gross negligence or willful misconduct.

     (e) All amounts due under this Section shall be payable not later than thirty (30) days after
written demand therefor.

     SECTION 10.4 Successors and Assigns.

     (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that Borrower
may not assign or otherwise transfer any of its rights or obligations hereunder without the prior
written consent of each Lender (and any attempted assignment or transfer by Borrower without such
consent shall be null and void). Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their respective successors and
assigns permitted hereby and, to the extent expressly contemplated hereby, the Related Parties of
each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim
under or by reason of this Agreement.

     (b) Any Lender may assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it); provided that (i) except in the case of an assignment to a Lender, each
of Borrower and the Administrative Agent must give their prior written consent to such assignment
(which consent shall not be unreasonably withheld), (ii) except in the case of an assignment to a
Lender or an assignment of the entire remaining amount of the assigning Lender’s Commitment, the
amount of the Commitment of the assigning Lender subject to each such assignment (determined as of
the date the Assignment and Acceptance with respect to such assignment is delivered to the
Administrative Agent) shall be in increments of $1,000,000 and not less than $10,000,000 unless
each of Borrower and the Administrative Agent otherwise consent, (iii) each partial assignment
shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement, (iv) the parties to each assignment shall execute and deliver to
the Administrative Agent an Assignment and Acceptance, together with a processing and recordation
fee of $3,500, and (v) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire; and provided further that any consent
of Borrower otherwise required under this paragraph shall not be required if an Event of Default
under Section 8.1 has occurred and is continuing. Subject to acceptance and

43

 

recording thereof pursuant to paragraph (d) of this Section, from and after the effective date
specified in each Assignment and Acceptance the assignee thereunder shall be a party hereto and, to
the extent of the interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections 2.14,
2.15, 2.16, 2.17 and 10.3). Any assignment or transfer by a Lender
of rights or obligations under this Agreement that does not comply with this paragraph shall be
treated for purposes of this Agreement as a sale by such Lender of a participation in such rights
and obligations in accordance with paragraph (e) of this Section.

     (c) The Administrative Agent, acting for this purpose as an agent of Borrower, shall maintain
at one of its offices in The City of New York a copy of each Assignment and Acceptance delivered to
it and a register for the recordation of the names and addresses of the Lenders, and the Commitment
of, and principal amount of the Loans owing to, each Lender pursuant to the terms hereof from time
to time (the “Register”). The entries in the Register shall be conclusive, and Borrower,
the Administrative Agent and the Lenders may treat each Person whose name is recorded in the
Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by Borrower
and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

     (d) Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section and any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Acceptance and record the
information contained therein in the Register and will provide prompt written notice to Borrower of
the effectiveness of such Assignment. No assignment shall be effective for purposes of this
Agreement unless it has been recorded in the Register as provided in this paragraph.

     (e) Any Lender may, without the consent of Borrower or the Administrative Agent, sell
participations to one or more banks or other entities (a “Participant”) in all or a portion
of such Lender’s rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (i) such Lender’s obligations under
this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) Borrower, the Administrative
Agent and the other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement, and (iv) if such
Participant is not a Lender or an Affiliate of a Lender, such Lender shall have given notice to
Borrower of the name of the Participant and the amount of such participation. Any agreement or
instrument pursuant to which a Lender sells such a participation shall provide that such Lender
shall retain the sole right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such agreement or instrument may
provide that

44

 

such Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in clauses (ii) and (iii) of the first proviso to Section
10.2(b) that affects such Participant. Subject to paragraph (f) of this Section, Borrower
agrees that each Participant shall be entitled to the benefits of Sections 2.14,
2.15 and 2.16 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 10.8 as though it were a
Lender, provided such Participant agrees to be subject to Section 2.17(c) as though it were
a Lender.

     (f) A Participant shall not be entitled to receive any greater payment under Section
2.14, 2.15 or 2.16 than the applicable Lender would have been entitled to
receive with respect to the participation sold to such Participant, unless Borrower shall expressly
agree otherwise in writing. A Participant that would be a Foreign Lender if it were a Lender shall
not be entitled to the benefits of Section 2.16 unless Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of Borrower, to
comply with Section 2.16(e) as though it were a Lender.

     (g) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender to a Federal Reserve Bank or,
in the case of a Lender organized in a jurisdiction outside of the United States, a comparable
Person, and this Section shall not apply to any such pledge or assignment of a security interest;
provided that no such pledge or assignment of a security interest shall release a Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as
a party hereto.

     SECTION 10.5 Survival. All covenants, agreements, representations and warranties made
by Borrower herein and in the certificates or other instruments delivered in connection with or
pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto
and shall survive the execution and delivery of this Agreement and the making of any Loans,
regardless of any investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended hereunder, and shall
continue in full force and effect as long as the principal of or any accrued interest on any Loan
or any fee or any other amount payable under this Agreement is outstanding and unpaid and so long
as the Commitments have not expired or terminated. The provisions of Sections 2.14,
2.15, 2.16, 2.17 and 10.3 and Article IX shall survive and
remain in full force and effect regardless of the consummation of the transactions contemplated
hereby, the repayment of the Loans, the expiration or termination of the Commitments or the
termination of this Agreement or any provision hereof.

     SECTION 10.6 Counterparts; Integration; Effectiveness. This Agreement may be executed
in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and any separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Section 4.1, this Agreement
shall

45

 

become effective when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement.

     SECTION 10.7 Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

     SECTION 10.8 Right of Setoff. If an Event of Default shall have occurred and be
continuing and the Obligations of Borrower shall have been accelerated, each Lender and each of its
Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted
by law, to set off and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other obligations at any time owing by such Lender or Affiliate to
or for the credit or the account of Borrower against any of and all the obligations of Borrower now
or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such
Lender shall have made any demand under this Agreement and although such obligations may be
unmatured. The rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have.

     SECTION 10.9 GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS.

     (a) THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

     (b) BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO
THE NONEXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK
COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY
APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING
MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH
FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT
OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT THE
AGENTS OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY

46

 

ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AGAINST BORROWER OR ITS PROPERTIES IN THE
COURTS OF ANY JURISDICTION.

     (c) BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY
LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF
VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT IN ANY COURT
REFERRED TO IN THE FIRST SENTENCE OF PARAGRAPH (b) OF THIS SECTION. EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     (d) EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS BY REGISTERED
MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. NOTHING IN
THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW.

     SECTION 10.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

     SECTION 10.11 Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

     SECTION 10.12 Confidentiality. Each of the Agents and the Lenders agrees to maintain
the confidentiality of the Information (as defined below), except that Information may be disclosed
(a) to its and its Affiliates’ directors, officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory or self-regulatory
authority, (c) to the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in connection with the
exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or
the enforcement of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to any assignee of or Participant in, or

47

 

any prospective assignee of or Participant in, any of its rights or obligations under this
Agreement, (g) with the consent of Borrower or (h) to the extent such Information (A) becomes
publicly available other than as a result of a breach of this Section by any Person or (B) becomes
available to any Agent or any Lender on a non-confidential basis from a source other than Borrower
or any Person obligated to maintain the confidentiality of such Information. Prior to disclosing
any Information under clause (c) above, the Agent or Lender required or asked to make such
disclosure shall make a good faith effort to give Borrower prior notice of such proposed disclosure
to permit Borrower to attempt to obtain a protective order or other appropriate injunctive relief.
For the purposes of this Section, “Information” means all information received from
Borrower relating to Borrower or its business, other than any publicly available information and
such information that is available to any Agent or any Lender on a non-confidential basis prior to
disclosure by Borrower; provided that, in the case of information received from Borrower
after the date hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

     SECTION 10.13 Interest Rate Limitation. It is the intention of the parties hereto to
conform strictly to applicable interest, usury and criminal laws and, anything herein to the
contrary notwithstanding, the obligations of Borrower to a Lender or any Agent under this Agreement
shall be subject to the limitation that payments of interest shall not be required to the extent
that receipt thereof would be contrary to provisions of law applicable to such Lender or Agent
limiting rates of interest which may be charged or collected by such Lender or Agent. Accordingly,
if the transactions contemplated hereby would be illegal, unenforceable, usurious or criminal under
laws applicable to a Lender or Agent (including the laws of any jurisdiction whose laws may be
mandatorily applicable to such Lender or Agent notwithstanding anything to the contrary in this
Agreement or any other Loan Document but subject to Section 2.12 hereof) then, in that
event, notwithstanding anything to the contrary in this Agreement or any other Loan Document, it is
agreed as follows:

     (i) the provisions of this Section shall govern and control;

     (ii) the aggregate of all consideration which constitutes interest under applicable law
that is contracted for, taken, reserved, charged or received under this Agreement, or under
any of the other aforesaid agreements or otherwise in connection with this Agreement by such
Lender or Agent shall under no circumstances exceed the maximum amount of interest allowed
by applicable law (such maximum lawful interest rate, if any, with respect to each Lender
and the Agent herein called the “Highest Lawful Rate”), and any excess shall be
cancelled automatically and if theretofore paid shall be credited to Borrower by such Lender
or Agent (or, if such consideration shall have been paid in full, such excess refunded to
Borrower);

     (iii) all sums paid, or agreed to be paid, to such Lender or Agent for the use,
forbearance and detention of the indebtedness of Borrower to such Lender or Agent hereunder
or under any Loan Document shall, to the extent permitted by laws applicable to such Lender
or Agent, as the case may be, be amortized, prorated, allocated and spread

48

 

throughout the full term of such indebtedness until payment in full so that the actual
rate of interest is uniform throughout the full term thereof;

     (iv) if at any time the interest provided pursuant to this Section or any other clause
of this Agreement or any other Loan Document, together with any other fees or compensation
payable pursuant to this Agreement or any other Loan Document and deemed interest under laws
applicable to such Lender or Agent, exceeds that amount which would have accrued at the
Highest Lawful Rate, the amount of interest and any such fees or compensation to accrue to
such Lender or Agent pursuant to this Agreement shall be limited, notwithstanding anything
to the contrary in this Agreement or any other Loan Document, to that amount which would
have accrued at the Highest Lawful Rate, but any subsequent reductions, as applicable, shall
not reduce the interest to accrue to such Lender or Agent pursuant to this Agreement below
the Highest Lawful Rate until the total amount of interest accrued pursuant to this
Agreement or such other Loan Document, as the case may be, and such fees or compensation
deemed to be interest equals the amount of interest which would have accrued to such Lender
or Agent if a varying rate per annum equal to the interest provided pursuant
to any other relevant Section hereof (other than this Section), as applicable, had at all
times been in effect, plus the amount of fees which would have been received but for
the effect of this Section; and

     (v) with the intent that the rate of interest herein shall at all times be lawful, and
if the receipt of any funds owing hereunder or under any other agreement related hereto
(including any of the other Loan Documents) by such Lender or Agent would cause such Lender
to charge Borrower a criminal rate of interest, the Lenders and the Agents agree that they
will not require the payment or receipt thereof or a portion thereof which would cause a
criminal rate of interest to be charged by such Lender or Agent, as applicable, and if
received such affected Lender or Agent will return such funds to Borrower so that the rate
of interest paid by Borrower shall not exceed a criminal rate of interest from the date this
Agreement was entered into.

     SECTION 10.14 USA PATRIOT Act Notice. Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender)
hereby notifies Borrower that pursuant to the requirements of the USA Patriot Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain,
verify and record information that identifies Borrower, which information includes the name and
address of Borrower and other information that will allow such Lender or the Administrative Agent,
as applicable, to identify Borrower in accordance with the Act.

     SECTION 10.15 NO ORAL AGREEMENTS. THIS WRITTEN AGREEMENT AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS AMONG THE PARTIES.

[SIGNATURES BEGIN ON FOLLOWING PAGE]

49

 

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

	 	 	 	 	 
	 	APACHE CORPORATION

 	 
	 	By:  	/s/ Matthew W. Dundrea
 	 
	 	 	Name:  	Matthew W. Dundrea 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

[SIGNATURE PAGE TO TERM LOAN AGREEMENT]

S - 1 

 

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

 	 
	 	By:  	/s/ Robert Traband
 	 
	 	 	Name:  	Robert Traband 	 
	 	 	Title:  	Managing Director 	 
	 

[SIGNATURE PAGE TO TERM LOAN AGREEMENT]

S - 2 

 

	 	 	 	 	 
	 	CITIBANK, N.A., as a Co-Syndication Agent and as a

Lender

 	 
	 	By:  	/s/ Andrew Sidford
 	 
	 	 	Name:  	Andrew Sidford 	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURE PAGE TO TERM LOAN AGREEMENT]

S - 3 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Co-Syndication Agent and
as a Lender

 	 
	 	By:  	/s/ Joseph Scott
 	 
	 	 	Name:  	Joseph Scott 	 
	 	 	Title:  	Senior Vice President 	 
	 

[SIGNATURE PAGE TO TERM LOAN AGREEMENT]

S - 4 

 

	 	 	 	 	 
	 	GOLDMAN SACHS BANK USA, as a
Co-Syndication Agent and
as a Lender

 	 
	 	By:  	/s/ Alexis Maged
 	 
	 	 	Name:  	Alexis Maged 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[SIGNATURE PAGE TO TERM LOAN AGREEMENT]

S - 5 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I DEFINITIONS	 	1
	SECTION 1.1
	 	Defined Terms	 	1
	SECTION 1.2
	 	Classification of Loans and Borrowings	 	14
	SECTION 1.3
	 	Terms Generally	 	14
	SECTION 1.4
	 	Accounting Terms; GAAP	 	14
	ARTICLE II THE CREDITS	 	14
	SECTION 2.1
	 	The Facility; Commitments	 	14
	SECTION 2.2
	 	Loans and Borrowings	 	15
	SECTION 2.3
	 	Requests for Borrowings	 	15
	SECTION 2.4
	 	[Intentionally Omitted]	 	16
	SECTION 2.5
	 	Funding of Borrowings	 	16
	SECTION 2.6
	 	Extension of Maturity Date	 	16
	SECTION 2.7
	 	Interest Elections	 	17
	SECTION 2.8
	 	Termination and Reduction of Commitments	 	18
	SECTION 2.9
	 	Repayment of Loans; Evidence of Debt	 	18
	SECTION 2.10
	 	Prepayment of Loans	 	19
	SECTION 2.11
	 	Fees	 	20
	SECTION 2.12
	 	Interest	 	21
	SECTION 2.13
	 	Alternate Rate of Interest	 	21
	SECTION 2.14
	 	Increased Costs	 	22
	SECTION 2.15
	 	Break Funding Payments	 	23
	SECTION 2.16
	 	Taxes	 	23
	SECTION 2.17
	 	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	 	24
	SECTION 2.18
	 	Mitigation Obligations; Replacement of Lenders	 	26
	SECTION 2.19
	 	Defaulting Lenders	 	27
	ARTICLE III REPRESENTATIONS AND WARRANTIES	 	27
	SECTION 3.1
	 	Organization	 	27
	SECTION 3.2
	 	Authorization and Validity	 	27
	SECTION 3.3
	 	Government Approval and Regulation	 	28
	SECTION 3.4
	 	Pension and Welfare Plans	 	28
	SECTION 3.5
	 	Regulation U	 	28

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	 	Page
	SECTION 3.6
	 	Taxes	 	28
	SECTION 3.7
	 	Subsidiaries; Restricted Subsidiaries	 	28
	ARTICLE IV CONDITIONS	 	29
	SECTION 4.1
	 	Effectiveness	 	29
	SECTION 4.2
	 	Initial Loan	 	29
	SECTION 4.3
	 	All Loans	 	30
	ARTICLE V AFFIRMATIVE COVENANTS	 	31
	SECTION 5.1
	 	Financial Reporting and Notices	 	31
	SECTION 5.2
	 	Compliance with Laws	 	32
	SECTION 5.3
	 	Maintenance of Properties	 	32
	SECTION 5.4
	 	Insurance	 	32
	SECTION 5.5
	 	Books and Records	 	32
	SECTION 5.6
	 	Use of Proceeds	 	32
	ARTICLE VI FINANCIAL COVENANT	 	33
	SECTION 6.1
	 	Ratio of Total Debt to Capital	 	33
	ARTICLE VII NEGATIVE COVENANTS	 	33
	SECTION 7.1
	 	Liens	 	33
	SECTION 7.2
	 	Mergers	 	34
	SECTION 7.3
	 	Asset Dispositions	 	35
	SECTION 7.4
	 	Transactions with Affiliates	 	35
	SECTION 7.5
	 	Restrictive Agreements	 	35
	SECTION 7.6
	 	Guaranties	 	35
	ARTICLE VIII EVENTS OF DEFAULT	 	35
	SECTION 8.1
	 	Listing of Events of Default	 	35
	SECTION 8.2
	 	Action if Bankruptcy	 	37
	SECTION 8.3
	 	Action if Other Event of Default	 	37
	ARTICLE IX AGENTS	 	38
	ARTICLE X MISCELLANEOUS	 	40
	SECTION 10.1
	 	Notices	 	40
	SECTION 10.2
	 	Waivers; Amendments	 	41
	SECTION 10.3
	 	Expenses; Indemnity; Damage Waiver	 	42

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	 	Page
	SECTION 10.4
	 	Successors and Assigns	 	43
	SECTION 10.5
	 	Survival	 	45
	SECTION 10.6
	 	Counterparts; Integration; Effectiveness	 	45
	SECTION 10.7
	 	Severability	 	46
	SECTION 10.8
	 	Right of Setoff	 	46
	SECTION 10.9
	 	GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS	 	46
	SECTION 10.10
	 	WAIVER OF JURY TRIAL	 	47
	SECTION 10.11
	 	Headings	 	47
	SECTION 10.12
	 	Confidentiality	 	47
	SECTION 10.13
	 	Interest Rate Limitation	 	48
	SECTION 10.14
	 	USA PATRIOT Act Notice	 	49
	SECTION 10.15
	 	NO ORAL AGREEMENTS	 	49

-iii-

 

TABLE OF CONTENTS

(continued)

SCHEDULES AND EXHIBITS

EXHIBITS:

	 	 	 

	Exhibit A

	 	Form of Compliance Certificate
	Exhibit B

	 	Form of Assignment and Acceptance
	Exhibit C

	 	Form of Borrowing/Interest Election Request

SCHEDULES:

	 	 	 

	Schedule 2.1

	 	Commitments
	Schedule 3.7

	 	Subsidiaries; Restricted Subsidiaries
	Schedule 7.1

	 	Liens

-iv-

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