Document:

exv10w1

 

AMENDMENT NUMBER EIGHT TO AMENDED AND RESTATED

CREDIT AGREEMENT

     This AMENDMENT NUMBER EIGHT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated
as of September 5, 2006, is entered into among DECKERS OUTDOOR CORPORATION, a Delaware corporation
(“Borrower”), and COMERICA BANK, a Michigan banking corporation, successor by merger to Comerica
Bank-California, a California banking corporation (“Bank”), with reference to the following facts:

     A. Borrower and UGG Holdings, Inc., a California corporation (“UGG”), on the one hand, as
co-borrowers, and Bank, on the other hand, previously entered into that certain Amended and
Restated Credit Agreement, dated as of November 25, 2002, as amended from time to time (as so
amended, the “Agreement”);

     B. UGG has duly merged with and into Borrower and Borrower is the surviving entity; and

     C. Borrower and Bank desire to amend the Agreement in accordance with the terms of this
Amendment.

     NOW, THEREFORE, in consideration of the foregoing, the parties hereto hereby agree as follows:

     1. Defined Terms. All initially capitalized terms used but not defined herein shall have the
meanings assigned to such terms in the Agreement.

     2. Exhibits and Schedules.

          (a) Exhibit 1.1B (Form of Borrowing Base Certificate) to the Agreement is hereby deleted.

          (b) Exhibit 2.5(b) (Form of Notice of Borrowing) to the Agreement is hereby replaced by
Exhibit 2.5(b) attached hereto.

          (c) Exhibit 1.1E (Locations of Eligible Inventory) to the Agreement is hereby deleted.

     3. Amendments to Section 1.1.

          (a) The following definitions are hereby deleted from Section 1.1 of the Agreement:
“Applicable A/R Advance Rate,” “Borrowing Base,” “Borrowing Base Certificate,” “Eligible Accounts,”
“Eligible Inventory,” “Inventory Sublimit” and “Inventory Sublimit Increase Date.”

          (b) The definition of “Revolving Loans Maturity Date” is hereby amended in its entirety as
follows: “‘Revolving Loans Maturity Date’ means June 1, 2008.”

1

 

     4. Amendments to Sections 2.1 and 2.2. Sections 2.1 and 2.2 of the Agreement are hereby
amended in their entirety as follows:

     “2.1 Revolving Loans. Provided that no Event of Default or Unmatured
Event of Default has occurred and is continuing, and subject to the other
terms and conditions hereof, Bank agrees to make revolving loans (“Revolving
Loans”) to Borrower, upon notice in accordance with Section 2.5(b), from the
Closing Date up to but not including the Revolving Loans Maturity Date, the
proceeds of which shall be used only for the purposes allowed in Section
7.1(a), subject to the following conditions and limitations:

          “(a) Intentionally omitted.

          “(b) Borrower shall not be permitted to borrow, and Bank shall not be
obligated to make, any Revolving Loans to Borrower, unless and until all of
the conditions for a Borrowing set forth in Section 4.2 have been met to the
reasonable satisfaction of Bank; and

          “(c) Intentionally omitted.”

“Borrower may repay and, subject to the terms and conditions hereof,
reborrow Revolving Loans. All such repayments shall be without penalty or
premium except as otherwise required by Section 2.7 with respect to
repayments of LIBOR Lending Rate Portions. Borrower shall give Bank at
least three (3) LIBOR Business Days’ prior written notice of any repayment
of a LIBOR Lending Rate Portion. On the Revolving Loans Maturity Date,
Borrower shall pay to Bank the entire unpaid principal balance of the
Revolving Loans together with all accrued but unpaid interest thereon.”

     “2.2 Foreign Exchange Forward Contracts. Provided that no Event of
Default or Unmatured Event of Default has occurred and is continuing, and
subject to the other terms and conditions of this Agreement and the Foreign
Exchange Agreement, Borrower may incur Currency Obligations from time to
time from the Closing Date up to but not including the Revolving Loans
Maturity Date, subject to the following conditions and limitations:

          “(a) Tenors for Borrower’s Currency Obligations shall not exceed the
lesser of 365 days and the Revolving Loans Maturity Date;

          “(b) The aggregate amount of Currency Obligations outstanding at any one
time after giving effect to any proposed incurrence of a Currency Obligation
by Borrower shall not exceed the Foreign Exchange Sublimit;

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          “(c) Intentionally omitted.

          “(d) The Currency Obligations shall be incurred by Borrower only for
international transactions incurred in the ordinary course of business; and

          “(e) In connection with all Currency Obligations, Borrower shall pay all
amounts due to Bank, including all fees, charges and expenses, in accordance
with the terms of the Foreign Exchange Agreement.”

     5. Amendment to Section 3.1. Section 3.1 of the Agreement is hereby amended in its entirety
as follows:

     “3.1 Letters of Credit.

          “(a) Provided that no Event of Default or Unmatured Event of Default is
continuing and subject to the other terms and conditions hereof, Bank agrees
to issue standby and sight and usance commercial letters of credit (“Letters
of Credit”) for the account of Borrower in such form as may be approved from
time to time by Bank, subject to the following limitations:

               “(i) Intentionally omitted.

               “(ii) The face amount of the Letter of Credit requested if and when
issued must not cause the Letter of Credit Usage to exceed the Letter of
Credit Sublimit;

               “(iii) Standby Letters of Credit may not have an expiry date or draw
period which extends beyond the earlier of (x) 365 days following the date of
issuance, or (y) the date which is ten (10) days prior to the Revolving Loans
Maturity Date;

               “(iv) Commercial Letters of Credit may not have an expiry date or draw
period which extends beyond the earlier of (x) 180 days following the date of
issuance, or (y) the date which is ten (10) days prior to the Revolving Loans
Maturity Date; and

               “(v) The conditions specified in Section 4.2 shall have been satisfied
on the date of issuance of such Letter of Credit.

          “(b) Each Letter of Credit shall (i) be denominated in Dollars or other
currency acceptable to Bank, and (ii) be a standby or commercial letter of
credit issued to support obligations of Borrower, contingent or otherwise, in
the ordinary course of business.

3

 

          “(c) Each Letter of Credit shall be subject to the Uniform Customs or
the ISP, as determined by Bank, in its sole discretion, and, to the extent
not inconsistent therewith, the laws of the State of California.

          “(d) Bank shall not at any time be obligated to issue any Letter of
Credit hereunder if such issuance would conflict with, or cause the Bank to
exceed any limits imposed by its organizational or governing documents or by
any applicable law, rule, regulation or treaty or determination of an
arbitrator or a court or other governmental authority to which Bank is
subject.”

     6. Deletion of Sections 5.19 and 5.20. Sections 5.19 (Representations and Warranties re
Eligible Accounts) and 5.20 (Representations and Warranties re Eligible Inventory) of the Agreement
are hereby deleted in their entirety and replaced with the statements, “Intentionally omitted.”

     7. Amendment to Section 6.3(a). Section 6.3(a) (Collateral Reporting) of the Agreement is
hereby amended in its entirety to read as follows:

               “(a) as soon as available but not later than twenty (20) days after the
end of each month, a backlog report on a quarterly basis;”

     8. Amendments to Section 7.15.

          (a) Subsection (a) of Section 7.15 of the Agreement is hereby amended in its entirety as
follows:

               “(a) the Quick Ratio, measured as of the end of each fiscal quarter of
Borrower, at any time to be less than 0.90:1.00.

          (b) Subsection (b) of Section 7.15 of the Agreement is hereby amended in its entirety as
follows:

               “(b) Consolidated Net Profit, for any fiscal quarter of Borrower, to be
less than $1,000,000.

     9. Representations and Warranties. In order to induce Bank to enter into this Amendment,
Borrower hereby represents and warrants to Bank that:

          (a) No Event of Default or Unmatured Event of Default is continuing;

          (b) All of the representations and warranties set forth in the Agreement and the Loan
Documents are true, complete and accurate in all respects (except for representations and
warranties which are expressly stated to be true and correct as of the Closing Date); and

4

 

          (c) This Amendment has been duly executed and delivered by Borrower, and after giving effect
to this Amendment, the Agreement and the Loan Documents continue to constitute the legal, valid and
binding agreements and obligations of Borrower, enforceable in accordance with their terms, except
as enforceability may be limited by bankruptcy, insolvency, and similar laws and equitable
principles affecting the enforcement of creditors’ rights generally.

     10. Conditions Precedent to Effectiveness of Amendment. The effectiveness of this Amendment
is subject to and contingent upon the fulfillment of each and every one of the following
conditions:

          (a) Bank shall have received this Amendment, duly executed by Borrower and Bank;

          (b) Bank shall have received an updated corporate borrowing resolution and incumbency
certificate in form and substance satisfactory to Bank;

          (c) No Event of Default, Unmatured Event of Default or Material Adverse Effect shall have
occurred and be continuing; and

          (d) All of the representations and warranties set forth herein, in the Loan Documents and in
the Agreement shall be true, complete and accurate in all respects as of the date hereof (except
for representations and warranties which are expressly stated to be true and correct as of the
Closing Date).

     11. Counterparts; Telefacsimile Execution. This Amendment may be executed in any number of
counterparts and by different parties on separate counterparts, each of which, when executed and
delivered, shall be deemed to be an original, and all of which, when taken together, shall
constitute but one and the same Amendment. Delivery of an executed counterpart of this Amendment
by telefacsimile shall be equally as effective as delivery of a manually executed counterpart of
this Amendment. Any party delivering an executed counterpart of this Amendment by telefacsimile
also shall deliver a manually executed counterpart of this Amendment but the failure to deliver a
manually executed counterpart shall not affect the validity, enforceability, and binding effect of
this Amendment.

     12. Integration. The Agreement as amended by this Amendment constitutes the entire agreement
and understanding between the parties hereto with respect to the subject matter hereof and thereof,
and supersedes any and all prior agreements and understandings, oral or written, relating to the
subject matter hereof and thereof.

     13. Reaffirmation of the Agreement. The Agreement as amended hereby and the other Loan
Documents remain in full force and effect.

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     IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Amendment as of
the date first hereinabove written.

	 	 	 	 	 
	 	DECKERS OUTDOOR CORPORATION,

a Delaware corporation

 	 
	 	By:  	/s/ Zohar Ziv
 	 
	 	Name:  	Zohar Ziv 	 
	 	Title:  	Chief Financial Officer 	 
	 
 
	 	COMERICA BANK,

a Michigan banking corporation, successor by merger
to Comerica Bank-California, a California banking
corporation

 	 
	 	By:  	/s/ Geoffrey Matthews
 	 
	 	Name:  	Geoffrey Matthews 	 
	 	Title:  	Vice President 	 

6

 

Exhibit 2.5(b)

To

Amendment Number Eight to Amended and Restated Revolving Credit Agreement

Form of Notice of Borrowing

Exhibit 1.1B

 

 

NOTICE OF BORROWING

			
	To:     	 	COMERICA BANK-CALIFORNIA

15303 Ventura Boulevard

Sherman Oaks, California 91403

Attn: Geoffrey Matthews

     This Notice of Borrowing is given pursuant to Section 2.5(b) of that certain Amended and
Restated Credit Agreement, dated as of November 25, 2002 (the “Agreement”), between DECKERS
OUTDOOR CORPORATION, a Delaware corporation (“Borrower”), and COMERICA BANK-CALIFORNIA, a
California corporation (“Bank”). All initially capitalized terms used but not defined in
this Notice of Borrowing shall have the meanings assigned to such terms in the Agreement.

     The undersigned hereby requests a Borrowing as follows:

			
	     $__________	 	Base Lending Rate Portion;

			
	     $__________	 	LIBOR Lending Rate Portion with an Interest Period of __ [1, 2, 3, or 6]
months and expiring on __________, 20__ ($1,000,000 minimum);

			
	     $__________	 	Total

     The undersigned requests that such Borrowing be made available on __________, 20__.

     The undersigned certifies that, as of the date of the requested Borrowing:

          (a) the representations and warranties of Borrower contained in the Agreement and the Loan
Documents are true on and as of such date, except to the extent such representations and warranties
expressly relate solely to an earlier date;

          (b) no Event of Default or Unmatured Event of Default has occurred or will result from the
proposed Borrowing;

          (c) after giving effect to the Borrowing(s) requested hereby, there shall be no more than
three (3) LIBOR Lending Rate Portions outstanding;

          (d) the proceeds of the Loan requested hereby shall be used in accordance with Section 7.1 of
the Agreement; and

          (e) Borrower has satisfied in all respects all conditions under the Agreement to be performed
or satisfied by it on or before such date.

1

 

	 	 	 	 	 
	Dated: ____________ __, 200_ 	DECKERS OUTDOOR CORPORATION,

a Delaware corporation

 	 
	 	By:  	
 	 
	 	Name:  	
 	 
	 	Title:  	
 	 
	 

2exv10w1

 

Exhibit 10.1

AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of August 31, 2006

among

GRANT PRIDECO, INC.,

and

CERTAIN SUBSIDIARIES

as Borrowers,

BANK OF AMERICA, N.A.,

as Syndication Agent

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent, US Swing Line Lender and an L/C Issuer,

HSBC BANK PLC,

as UK Swing Line Lender and an L/C Issuer,

JPMORGAN CHASE BANK, N.A.,

as Documentation Agent,

and

The Other Lenders Party Hereto

BANC OF AMERICA SECURITIES LLC

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Joint Lead Arrangers and Co-Book Managers

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I
	 	DEFINITIONS AND ACCOUNTING TERMS	 	 	1	 
	 
	 	 	 	 	 	 
	1.01
	 	Defined Terms	 	 	1	 
	1.02
	 	Other Interpretive Provisions	 	 	28	 
	1.03
	 	Accounting Terms	 	 	29	 
	1.04
	 	Exchange Rates; Currency Equivalents	 	 	29	 
	1.05
	 	Additional Alternative Currencies	 	 	30	 
	1.06
	 	Change of Currency	 	 	30	 
	1.07
	 	Times of Day	 	 	31	 
	1.08
	 	Letter of Credit Amounts	 	 	31	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	THE COMMITMENTS AND CREDIT EXTENSIONS	 	 	31	 
	 
	 	 	 	 	 	 
	2.01
	 	Committed Loans	 	 	31	 
	2.02
	 	Borrowings, Conversions and Continuations of Committed Loans	 	 	32	 
	2.03
	 	Letters of Credit	 	 	34	 
	2.04
	 	Swing Line Loans	 	 	47	 
	2.05
	 	Prepayments	 	 	55	 
	2.06
	 	Termination or Reduction of Commitments	 	 	57	 
	2.07
	 	Repayment of Loans	 	 	58	 
	2.08
	 	Interest	 	 	58	 
	2.09
	 	Fees	 	 	59	 
	2.10
	 	Computation of Interest and Fees	 	 	60	 
	2.11
	 	Evidence of Debt	 	 	60	 
	2.12
	 	Payments Generally; Administrative Agent's Clawback	 	 	61	 
	2.13
	 	Sharing of Payments by Lenders	 	 	63	 
	2.14
	 	Designated Borrowers	 	 	64	 
	2.15
	 	Increase in Commitments	 	 	65	 
	 
	 	 	 	 	 	 
	ARTICLE III
	 	TAXES, YIELD PROTECTION AND ILLEGALITY	 	 	67	 
	 
	 	 	 	 	 	 
	3.01
	 	Taxes	 	 	67	 
	3.02
	 	Illegality	 	 	69	 
	3.03
	 	Inability to Determine Rates	 	 	70	 
	3.04
	 	Increased Costs; Reserves on Eurocurrency Rate Loans	 	 	70	 
	3.05
	 	Compensation for Losses	 	 	72	 

-i-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	3.06
	 	Mitigation Obligations; Replacement of Lenders	 	 	73	 
	3.07
	 	Survival	 	 	73	 
	 
	 	 	 	 	 	 
	ARTICLE IV
	 	CONDITIONS PRECEDENT TO CREDIT EXTENSIONS	 	 	73	 
	 
	 	 	 	 	 	 
	4.01
	 	Conditions of Initial Credit Extension	 	 	73	 
	4.02
	 	Conditions to all Credit Extensions	 	 	75	 
	 
	 	 	 	 	 	 
	ARTICLE V
	 	REPRESENTATIONS AND WARRANTIES	 	 	76	 
	 
	 	 	 	 	 	 
	5.01
	 	Existence, Qualification and Power	 	 	76	 
	5.02
	 	Authorization; No Contravention	 	 	76	 
	5.03
	 	Governmental Authorization; Other Consents	 	 	76	 
	5.04
	 	Binding Effect	 	 	77	 
	5.05
	 	Financial Statements	 	 	77	 
	5.06
	 	Litigation	 	 	77	 
	5.07
	 	No Default	 	 	77	 
	5.08
	 	Ownership of Property; Liens	 	 	77	 
	5.09
	 	Environmental Compliance	 	 	77	 
	5.10
	 	Insurance	 	 	78	 
	5.11
	 	Taxes	 	 	78	 
	5.12
	 	ERISA Compliance	 	 	78	 
	5.13
	 	Subsidiaries	 	 	79	 
	5.14
	 	Margin Regulations; Investment Company Act	 	 	79	 
	5.15
	 	Disclosure	 	 	79	 
	5.16
	 	Compliance with Laws	 	 	79	 
	5.17
	 	[Intentionally deleted.]	 	 	79	 
	5.18
	 	Representations as to Foreign Obligors	 	 	80	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	 	AFFIRMATIVE COVENANTS	 	 	81	 
	 
	 	 	 	 	 	 
	6.01
	 	Financial Statements	 	 	81	 
	6.02
	 	Certificates; Other Information	 	 	81	 
	6.03
	 	Notices	 	 	83	 
	6.04
	 	[Intentionally deleted]	 	 	83	 
	6.05
	 	Preservation of Existence, Etc.	 	 	83	 
	6.06
	 	Maintenance of Properties	 	 	84	 

-ii-

 

TABLE
OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	6.07
	 	Maintenance of Insurance	 	 	84	 
	6.08
	 	Compliance with Laws	 	 	84	 
	6.09
	 	Books and Records	 	 	84	 
	6.10
	 	Inspection Rights	 	 	84	 
	6.11
	 	Use of Proceeds	 	 	84	 
	6.12
	 	[Intentionally Deleted]	 	 	84	 
	6.13
	 	Additional Guarantors	 	 	84	 
	 
	 	 	 	 	 	 
	ARTICLE VII
	 	NEGATIVE COVENANTS	 	 	85	 
	 
	 	 	 	 	 	 
	7.01
	 	Liens	 	 	85	 
	7.02
	 	[Intentionally Deleted]	 	 	86	 
	7.03
	 	Indebtedness	 	 	86	 
	7.04
	 	Fundamental Changes	 	 	88	 
	7.05
	 	Dispositions	 	 	88	 
	7.06
	 	Restricted Payments	 	 	89	 
	7.07
	 	Change in Nature of Business	 	 	90	 
	7.08
	 	Transactions with Affiliates	 	 	90	 
	7.09
	 	Burdensome Agreements	 	 	90	 
	7.10
	 	Use of Proceeds	 	 	90	 
	7.11
	 	Financial Covenants	 	 	90	 
	 
	 	 	 	 	 	 
	ARTICLE VIII
	 	EVENTS OF DEFAULT AND REMEDIES	 	 	91	 
	 
	 	 	 	 	 	 
	8.01
	 	Events of Default	 	 	91	 
	8.02
	 	Remedies Upon Event of Default	 	 	93	 
	8.03
	 	Application of Funds	 	 	93	 
	 
	 	 	 	 	 	 
	ARTICLE IX
	 	ADMINISTRATIVE AGENT AND OTHER AGENTS	 	 	94	 
	 
	 	 	 	 	 	 
	9.01
	 	Appointment and Authority	 	 	94	 
	9.02
	 	Rights as a Lender	 	 	95	 
	9.03
	 	Exculpatory Provisions	 	 	95	 
	9.04
	 	Reliance by Administrative Agent	 	 	96	 
	9.05
	 	Delegation of Duties	 	 	96	 
	9.06
	 	Resignation of Administrative Agent	 	 	96	 
	9.07
	 	Non-Reliance on Administrative Agent and Other Lenders	 	 	97	 

-iii-

 

TABLE
OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	9.08
	 	No Other Duties, Etc.	 	 	97	 
	9.09
	 	Administrative Agent May File Proofs of Claim	 	 	98	 
	9.10
	 	Guaranty Matters	 	 	98	 
	 
	 	 	 	 	 	 
	ARTICLE X
	 	MISCELLANEOUS	 	 	99	 
	 
	 	 	 	 	 	 
	10.01
	 	Amendments, Etc.	 	 	99	 
	10.02
	 	Notices; Effectiveness; Electronic Communication	 	 	100	 
	10.03
	 	No Waiver; Cumulative Remedies	 	 	102	 
	10.04
	 	Expenses; Indemnity; Damage Waiver	 	 	102	 
	10.05
	 	Payments Set Aside	 	 	104	 
	10.06
	 	Successors and Assigns	 	 	104	 
	10.07
	 	Treatment of Certain Information; Confidentiality	 	 	109	 
	10.08
	 	Right of Setoff	 	 	110	 
	10.09
	 	Interest Rate Limitation	 	 	110	 
	10.10
	 	Counterparts; Integration; Effectiveness	 	 	110	 
	10.11
	 	Survival of Representations and Warranties	 	 	111	 
	10.12
	 	Severability	 	 	111	 
	10.13
	 	Replacement of Lenders	 	 	111	 
	10.14
	 	Governing Law; Jurisdiction; Etc.	 	 	112	 
	10.15
	 	Waiver of Jury Trial	 	 	113	 
	10.16
	 	USA PATRIOT Act Notice	 	 	113	 
	10.17
	 	Judgment Currency	 	 	113	 
	10.18
	 	Amendment and Restatement; Release of Security for	 	 	 	 
	 
	 	Existing Credit Agreement	 	 	114	 
	10.19
	 	ENTIRE AGREEMENT	 	 	114	 

-iv-

 

TABLE OF CONTENTS

(continued)

	 	 	 
	SCHEDULES
	 	 
	 
	 	 
	1.01(a)
	 	Loan Funding Accounts
	1.01(b)
	 	Mandatory Cost Formulae
	1.01(c)
	 	Subsidiary Guarantors
	2.01
	 	Commitments and Applicable Percentages
	5.11
	 	Tax Agreements
	5.13
	 	Subsidiaries and Other Equity Investments
	7.01
	 	Existing Liens
	7.03
	 	Existing Indebtedness
	7.03A
	 	Intercompany Debt Subordination Terms
	7.09
	 	Existing Burdensome Agreements
	10.02
	 	Administrative Agent's Office; Certain Addresses for Notices
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	Form of
	 	 
	 
	 	 
	A-1
	 	Committed Loan Notice
	A-2
	 	US Swing Line Loan Notice
	A-3
	 	UK Swing Line Loan Notice
	B
	 	Note
	C
	 	Compliance Certificate
	D
	 	Assignment and Assumption
	E
	 	Company Guaranty
	F
	 	Subsidiary Guaranty
	G
	 	Designated Borrower Request and Assumption Agreement
	H
	 	Designated Borrower Notice

-v-

 

AMENDED AND RESTATED CREDIT AGREEMENT

     This AMENDED AND RESTATED CREDIT AGREEMENT (“Agreement”) is entered into as of August
31, 2006, among GRANT PRIDECO, INC., a Delaware corporation (the “Company”), certain
Subsidiaries of the Company party hereto pursuant to Section 2.14 (each, including each
Designated UK Borrower (as hereinafter defined), a “Designated Borrower” and, together with
the Company, the “Borrowers” and, each a “Borrower”), each lender from time to time
party hereto (collectively, the “Lenders” and individually, a “Lender”), BANK OF
AMERICA, N.A., as Syndication Agent, WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative
Agent, US Swing Line Lender and an L/C Issuer, HSBC BANK PLC, as UK Swing Line Lender and an L/C
Issuer, and JPMORGAN CHASE BANK, N.A., as Documentation Agent.

     The Company and the Designated Borrowers have entered into the Credit Agreement dated as of
May 12, 2005 (as the same has been modified, the “Existing Credit Agreement”), with Bank of
America, N.A., as syndication agent, Wells Fargo Bank, National Association, as administrative
agent, US swing line lender and an L/C issuer, HSBC Bank plc, as UK swing line lender and an L/C
issuer, Deutsche Bank Securities Inc., as documentation agent, and the other lenders party thereto.

     The Borrowers have requested that the Lenders amend and restate the terms of the Existing
Credit Agreement, and the Lenders are willing to do so on the terms and conditions set forth
herein.

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

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

     1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings
set forth below:

     “Acquisition” means the direct or indirect purchase or acquisition, whether in one or
more related transactions, of all or substantially all of the capital stock of any Person or group
of Persons or all or substantially all of the assets, liabilities, and business of any Person or
group of Persons.

     “Administrative Agent” means Wells Fargo Bank, National Association in its capacity as
administrative agent under any of the Loan Documents, or any successor administrative agent.

     “Administrative Agent’s Office” means, with respect to any currency, the
Administrative Agent’s address and, as appropriate, account as set forth on Schedule 10.02
with respect to such currency, or such other address or account with respect to such currency as
the Administrative Agent may from time to time notify to the Company and the Lenders.

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

 

 

     “Affiliate” means, with respect to any 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.

     “Aggregate Combined Commitments” means the Aggregate Commitments (US) plus the
UK Commitment.

     “Aggregate Commitments (US)” means the Commitments of all the Lenders other than the
UK Swing Line Lender.

     “Agreement” means this Credit Agreement.

     “Alternative Currency” means (i) with respect to Loans hereunder, each of Euro,
Sterling and Canadian Dollars, (ii) with respect to Letters of Credit issued hereunder, each of
Euro, Sterling, Canadian Dollars, Saudi Riyals, Australian Dollars and Singapore Dollars, and (iii)
each other currency (other than Dollars) that is approved in accordance with Section 1.05.

     “Alternative Currency Equivalent” means, at any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable Alternative Currency as
determined by the Administrative Agent or the applicable L/C Issuer, as the case may be, at such
time on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for
the purchase of such Alternative Currency with Dollars.

     “Alternative Currency Reserve” means, at any time, the Dollar amount equal to 5% of
the Outstanding Amount of Loans denominated in Alternative Currencies at such time.

     “Alternative Currency Sublimit” means an amount equal to the lesser of the Aggregate
Combined Commitments and $75,000,000. The Alternative Currency Sublimit is part of, and not in
addition to, the Aggregate Combined Commitments.

     “Applicable Percentage” means with respect to any Lender at any time (a) when
Outstanding Amounts exist or remain with respect to Committed Loans made or deemed made to
refinance UK Swing Line Loans or Unreimbursed Amounts with respect to UK Issued L/Cs, risk
participations are held by the Lenders in any UK Swing Line Loan, or risk participations are held
by the Lenders in UK Issued L/Cs, or when such Committed Loans are concurrently being made or
deemed made or such participations are concurrently being purchased or deemed purchased, the
Applicable Percentage (UK Included) of such Lender (including the UK Swing Line Lender), at such
time and (b) when no such Outstanding Amounts exist or remain (or are concurrently being made or
deemed made) and no such risk participations are held (or are concurrently being purchased or
deemed purchased), the Applicable Percentage (US) of such Lender.

     “Applicable Percentage (UK Included)” means with respect to any Lender at any time,
the percentage (carried out to the ninth decimal place) of the Aggregate Combined Commitments
represented by such Lender’s Commitment or UK Commitment, as applicable. If the commitment of each
Lender to make Loans and the obligation of the L/C Issuers to make L/C Credit Extensions have been
terminated pursuant to Section 8.02 or if the Aggregate Commitments (US) and UK Commitment
have expired, then the Applicable Percentage (UK

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Included) of each Lender shall be determined based on the Applicable Percentage (UK Included)
of such Lender most recently in effect, giving effect to any subsequent assignments and
participations pursuant to Article 2. The initial Applicable Percentage (UK included) of
each Lender is set forth opposite the name of such Lender on Schedule 2.01 or in the
Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

     “Applicable Percentage (US)” means with respect to any Lender at any time, the
percentage (carried out to the ninth decimal place) of the Aggregate Commitments (US) represented
by such Lender’s Commitment at such time. If the commitment of each Lender to make Loans and the
obligation of the L/C Issuers to make L/C Credit Extensions have been terminated pursuant to
Section 8.02 or if the Aggregate Commitments (US) have expired, then the Applicable
Percentage (US) of each Lender shall be determined based on the Applicable Percentage (US) of such
Lender most recently in effect, giving effect to any subsequent assignments, and participations
pursuant to Article 2. The initial Applicable Percentage (US) of each Lender is set forth
opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable.

     “Applicable Rate” means, from time to time, the following percentages per annum, based
upon the Debt Rating as set forth below:

Applicable Rate

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable	 	 	 	 	 	Applicable
	 	 	 	 	 	 	Rate for	 	Applicable Rate	 	Rate for the
	Pricing	 	Debt Ratings	 	Eurocurrency	 	for Base Rate	 	Commitment
	  Level	 	Moody’s/S&P	 	Rate Loans	 	Loans	 	Fee
	     1
	 	A3/A- or better	 	 	0.300	%	 	 	0.000	%	 	 	0.065	%
	     2
	 	Baa1/BBB+	 	 	0.350	%	 	 	0.000	%	 	 	0.080	%
	     3
	 	Baa2/BBB	 	 	0.450	%	 	 	0.000	%	 	 	0.100	%
	     4
	 	Baa3/BBB-	 	 	0.650	%	 	 	0.000	%	 	 	0.125	%
	     5
	 	Ba1/BB+	 	 	0.825	%	 	 	0.000	%	 	 	0.175	%
	     6
	 	Ba2/BB	 	 	1.000	%	 	 	0.000	%	 	 	0.225	%
	     7
	 	lower than Ba2/BB	 	 	1.375	%	 	 	0.375	%	 	 	0.300	%

     “Debt Rating” means, as of any date of determination, the rating as determined by
either S&P or Moody’s (collectively, the “Debt Ratings”) of the Company’s
non-credit-enhanced, senior unsecured long-term debt; provided that (a) if the respective
Debt Ratings issued by the foregoing rating agencies differ by one level, then the Pricing Level
for the higher of such Debt Ratings shall apply (with the Debt Rating for Pricing Level 1 being the
highest and the Debt Rating for Pricing Level 7 being the lowest); (b) if there is a split in Debt
Ratings of more than one level, then, the Pricing Level that is one level lower than the Pricing
Level of the higher Debt Rating shall apply; and (c) if the Company does not have any Debt Rating,
Pricing Level 7 shall apply.

Initially, the Applicable Rate shall be determined based upon Pricing Level 5. Thereafter, each
change in the Applicable Rate resulting from a publicly announced change in the Debt Rating shall
be effective, in the case of an upgrade, during the period commencing on the date of

-3-

 

delivery by the Borrower to the Administrative Agent of notice thereof pursuant to Section
6.03(e) and ending on the date immediately preceding the effective date of the next such change
and, in the case of a downgrade, during the period commencing on the date of the public
announcement thereof and ending on the date immediately preceding the effective date of the next
such change.

     “Applicable Time” means, with respect to any borrowings and payments in any
Alternative Currency, the local time in the place of settlement for such Alternative Currency as
may be determined by the Administrative Agent, any Swing Line Lender, or any L/C Issuer, as the
case may be, to be necessary for timely settlement on the relevant date in accordance with normal
banking procedures in the place of payment.

     “Applicant Borrower” means an Applicant Domestic Borrower or an Applicant Foreign
Borrower, as applicable.

     “Applicant Domestic Borrower” has the meaning specified in Section 2.14.

     “Applicant Foreign Borrower” has the meaning specified in Section 2.14.

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

     “Arrangers” means Banc of America Securities LLC, and Wells Fargo Bank, National
Association, in their respective capacities as joint lead arrangers and co-book managers.

     “Assignee Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by
Section 10.06(b), and accepted by the Administrative Agent, in substantially the form of
Exhibit D or any other form approved by the Administrative Agent.

     “Attributable Indebtedness” means, on any date, (a) in respect of any capital lease of
any Person, the capitalized amount thereof that would appear on a balance sheet of such Person
prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease Obligation
or other arrangement described in clauses (b) or (c) of the definition of Off-Balance Sheet
Liabilities, the capitalized amount of the remaining lease payments under the relevant lease that
would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if
such lease were accounted for as a capital lease and (c) in respect of any asset securitization
transaction, the outstanding balance of the amounts advanced in respect of the applicable assets.

     “Audited Financial Statements” means the audited consolidated balance sheet of the
Company and its Subsidiaries for the fiscal year ended December 31, 2005, and the related
consolidated statements of income or operations, shareholders’ equity and cash flows for such
fiscal year of the Company and its Subsidiaries, including the notes thereto.

-4-

 

     “Australian Dollars” means the lawful currency of Australia.

     “Availability Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments (US)
pursuant to Section 2.06, and (c) the date of termination of the commitment of each Lender
to make Loans and of the obligation of each L/C Issuer to make L/C Credit Extensions pursuant to
Section 8.02.

     “Bank of America” means Bank of America, N.A. and its successors.

     “Bank Guaranty” means a guaranty executed by HSBC with respect to obligations of a
Designated UK Borrower and provided pursuant to this Agreement.

     “Base Rate” means for any day a fluctuating rate per annum equal to (a) with respect
to Loans other than UK Swing Line Loans, the higher of (i) the Federal Funds Rate plus 1/2 of 1%
and (ii) the rate of interest in effect for such day as publicly announced from time to time by
Wells Fargo as its “prime rate,” and (b) with respect to UK Swing Line Loans, the rate of interest
in effect for such day as published from time to time by HSBC as its “base rate”. The “prime rate”
or “base rate” is a rate set by Wells Fargo or HSBC, as applicable, based upon various factors
including such Person’s respective costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be priced at, above, or
below such announced rate. Any change in such rate announced by Wells Fargo or HSBC, as
applicable, shall take effect at the opening of business on the day specified in the public
announcement of such change.

     “Base Rate Committed Loan” means a Committed Loan that is a Base Rate Loan.

     “Base Rate Loan” means a Loan that bears interest based on the Base Rate. All Base
Rate Loans shall be denominated in Dollars.

     “Borrower” and “Borrowers” each has the meaning specified in the introductory
paragraph hereto.

     “Borrower Materials” has the meaning specified in Section 6.02.

     “Borrowing” means a Committed Borrowing, a US Swing Line Borrowing, or a UK Swing Line
Borrowing, as the context may require.

     “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the state
where the Administrative Agent’s Office with respect to Obligations denominated in Dollars is
located and:

     (a) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in Dollars, any fundings, disbursements, settlements and payments in Dollars in
respect of any such Eurocurrency Rate Loan, or any other dealings in Dollars to be carried
out pursuant to this Agreement in respect of any such Eurocurrency Rate

-5-

 

Loan, means any such day on which dealings in deposits in Dollars are conducted by and
between banks in the London interbank eurodollar market;

     (b) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in Euro, any fundings, disbursements, settlements and payments in Euro in
respect of any such Eurocurrency Rate Loan, or any other dealings in Euro to be carried out
pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means a TARGET
Day;

     (c) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in a currency other than Dollars or Euro, means any such day on which dealings
in deposits in the relevant currency are conducted by and between banks in the London or
other applicable offshore interbank market for such currency; and

     (d) if such day relates to any fundings, disbursements, settlements and payments in a
currency other than Dollars or Euro in respect of a Eurocurrency Rate Loan denominated in a
currency other than Dollars or Euro, or any other dealings in any currency other than
Dollars or Euro to be carried out pursuant to this Agreement in respect of any such
Eurocurrency Rate Loan (other than any interest rate settings), means any such day on which
banks are open for foreign exchange business in the principal financial center of the
country of such currency.

     “Canadian Dollars” and “$Cdn” mean the lawful currency of Canada.

     “Cash Collateralize” has the meaning specified in Section 2.03(g), and
“Cash Collateral” shall mean the cash or deposit account balances provided by the Company
as collateral pursuant to Section 2.03(g).

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

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

     (a) any “person” or “group” (as such terms are used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit
plan of such person or its subsidiaries, and any person or entity acting in its capacity as
trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934,
except that a person or group shall be deemed to have “beneficial ownership” of all
securities that such person or group has the right to acquire (such right, an “option
right”), whether such right is exercisable immediately or only after the passage of
time), directly or indirectly, of 50% or more of the equity securities of the Company
entitled to vote for members of the board of directors or equivalent governing body of the
Company on a fully-diluted basis (and taking into account all such securities that such
person or group has the right to acquire pursuant to any option right);

-6-

 

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

     (c) any Person or two or more Persons acting in concert shall have acquired by contract
or otherwise, or shall have entered into a contract or arrangement that, upon consummation
thereof, will result in its or their acquisition of the power to exercise, directly or
indirectly, a controlling influence over the management or policies of the Company, or
control over the equity securities of the Company entitled to vote for members of the board
of directors or equivalent governing body of the Company on a fully-diluted basis (and
taking into account all such securities that such Person or group has the right to acquire
pursuant to any option right) representing 50% or more of the combined voting power of such
securities.

     “Closing Date” means the first date all the conditions precedent in Section
4.01 are satisfied or waived in accordance with Section 10.01.

     “Code” means the Internal Revenue Code of 1986.

     “Commitment” means, as to each Lender (other than the UK Swing Line Lender), its
obligation to (a) make Committed Loans to the Borrowers pursuant to Section 2.01, (b)
purchase participations in L/C Obligations, and (c) purchase participations in Swing Line Loans, in
an aggregate principal amount at any one time outstanding not to exceed the Dollar amount set forth
opposite such Lender’s name on Schedule 2.01 or in the Assignment and Assumption pursuant
to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from
time to time in accordance with this Agreement, including pursuant to Section 2.15.

     “Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans of
the same Type, in the same currency and, in the case of Eurocurrency Rate Loans, having the same
Interest Period made by each of the Lenders pursuant to Section 2.01.

     “Committed Loan” has the meaning specified in Section 2.01.

     “Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion
of Committed Loans from one Type to the other, or (c) a continuation of

-7-

 

Eurocurrency Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be
substantially in the form of Exhibit A-1.

     “Company” has the meaning specified in the introductory paragraph hereto.

     “Company Guaranty” means the Company Guaranty made by the Company in favor of the
Administrative Agent and the Lenders, substantially in the form of Exhibit E.

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

     “Consolidated EBITDA” means, for any period, for the Company and its Subsidiaries on a
consolidated basis, an amount equal to Consolidated Net Income for such period plus (or
minus, as indicated) the following to the extent deducted (or included, as applicable) in
calculating such Consolidated Net Income and without duplication: (i) plus Consolidated
Interest Charges for such period, (ii) plus or minus, as the case may be, the provision for
Federal, state, local and foreign income taxes of the Company and its Subsidiaries for such period,
(iii) plus depreciation and amortization expense, including amortization of any goodwill or
other intangibles, for such period, and (iv) plus or minus, as the case may be, other non-recurring
expenses or items of the Company and its Subsidiaries reducing or increasing, as applicable, such
Consolidated Net Income, in each case, which do not represent a cash item in such period or any
future period, including any impairment of goodwill or other long lived assets, (v) plus
any issuances of Equity Interests attributable to non-cash compensation expense, (vi) plus or
minus, as the case may be, non-cash gains or losses, including, without limitation, the non-cash
gains or losses arising from write-offs in connection with discontinued operations and the
subsequent sale of any such written off operations, (vii) plus the write-off of amortized
or deferred financing, legal and accounting costs in connection with the refinancing of the
Existing Credit Agreement, (viii) plus tender premiums, fees, and other amounts expensed in
connection with the Tender Activities, including without limitation the cost of related Swap
Contracts; provided, however, that for purposes of calculating the foregoing, (A)
with respect to any Person that is not a Subsidiary of the Company, or that is accounted for by the
equity method of accounting, the net income of such Person for such period shall not be included in
the calculation of Consolidated EBITDA for such period, but the amount of dividends or
distributions, or other payments not constituting a return of capital, which are paid in cash (or
to the extent converted into cash during the applicable period) to the Company or a Subsidiary
thereof in respect of such period shall be included in the calculation of Consolidated EBITDA for
such period, and (B) Consolidated EBITDA for any period shall be calculated on a pro forma basis to
give effect to any material business acquisitions or material business dispositions during such
period as if such acquisition or disposition, and any related assumption or repayment of
indebtedness, occurred on the first day of the applicable period.

     “Consolidated Interest Charges” means, for any period, for the Company and its
Subsidiaries on a consolidated basis, the sum of (a) all interest, premium payments, debt discount,
fees, charges and related expenses of the Company and its Subsidiaries in connection with borrowed
money (including capitalized interest) or in connection with the deferred purchase price of assets,
in each case to the extent treated as interest in accordance with GAAP, and (b) the portion of rent
expense of the Company and its Subsidiaries with respect to such period under capital leases that
is treated as interest in accordance with GAAP. Consolidated Interest

-8-

 

Charges for any period shall be calculated on a pro forma basis to give effect to any material
business acquisitions or material business dispositions during such period as if such acquisition
or disposition, and any related assumption or repayment of indebtedness, occurred on the first day
of the applicable period.

     “Consolidated Interest Coverage Ratio” means, as of any date of determination, the
ratio of (a) Consolidated EBITDA for the period of the four prior fiscal quarters ending on such
date to (b) Consolidated Interest Charges for such period.

     “Consolidated Net Income” means, for any period, for the Company and its Subsidiaries
on a consolidated basis, the net income of the Company and its Subsidiaries (excluding all
extraordinary items and excluding the cumulative effect of changes in accounting practices) for
that period.

     “Consolidated Net Worth” means, as of any date of determination, for the Company and
its Subsidiaries on a consolidated basis, Shareholders’ Equity of the Company and its Subsidiaries
on that date, calculated without giving effect to goodwill impairment charges during any period on
or after December 31, 2004.

     “Consolidated Total Indebtedness” means, as of any date of determination, for the
Company and its Subsidiaries on a consolidated basis but without duplication, the sum of (a) the
outstanding principal amount of all obligations, whether current or long-term, for borrowed money
(including Obligations hereunder) and all obligations evidenced by bonds, debentures, notes, loan
agreements or other similar instruments, (b) all purchase money Indebtedness, (c) all direct (but
not contingent) obligations arising under draws on letters of credit (including standby and
commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments, (d) all
obligations in respect of the deferred purchase price of property or services (other than trade
accounts payable in the ordinary course of business) where the purchase price is deferred in excess
of 270 days, (e) Attributable Indebtedness in respect of capital leases and Synthetic Lease
Obligations, (f) all Guarantees with respect to outstanding Indebtedness of the types specified in
clauses (a) through (e) above of Persons other than the Company or any Subsidiary, and (g) all
Indebtedness of the types referred to in clauses (a) through (f) above of any partnership or joint
venture (other than a joint venture that is itself a corporation or limited liability company) in
which the Company or a Subsidiary is a general partner or joint venturer, unless such Indebtedness
is expressly made non-recourse to the Company or such Subsidiary; provided however, that
Consolidated Total Indebtedness shall not include obligations arising in connection with any
letters of credit, except to the extent that any reimbursement obligation owed by the account party
with respect thereto remains unpaid after the date on which reimbursement therefore is due under
the applicable documentation, or if no due date is so specified, for more than two Business Days
following demand for payment therefor.

     “Consolidated Total Indebtedness to Total Capitalization Ratio: means, as of any date
of determination, the ratio of (a) Consolidated Total Indebtedness as of such date to (b) Total
Capitalization as of such date.

-9-

 

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

     “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.

     “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension.

     “Debt Rating” has the meaning specified in the definition of “Applicable Rate”.

     “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

     “Default” means any event or condition that constitutes an Event of Default or that,
with the giving of any notice, the passage of time, or both, would be an Event of Default.

     “Default Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if
any, applicable to Base Rate Loans plus (iii) 2% per annum; provided,
however, that with respect to a Eurocurrency Rate Loan, the Default Rate shall be an
interest rate equal to the interest rate (including any Applicable Rate and any Mandatory Cost)
otherwise applicable to such Loan plus 2% per annum, and (b) when used with respect to Letter of
Credit Fees, a rate equal to the Applicable Rate plus 2% per annum.

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Committed Loans, participations in L/C Obligations, or participations in Swing Line Loans required
to be funded by it hereunder within one Business Day of the date required to be funded by it
hereunder, (b) has otherwise failed to pay over to the Administrative Agent or any other Lender any
other amount required to be paid by it hereunder within one Business Day of the date when due,
unless the subject of a good faith dispute, or (c) has been deemed insolvent or become the subject
of a bankruptcy or insolvency proceeding.

     “Designated Borrower” has the meaning specified in the introductory paragraph hereto.

     “Designated Borrower Notice” has the meaning specified in Section 2.14.

     “Designated Borrower Request and Assumption Agreement” has the meaning specified in
Section 2.14.

     “Designated UK Borrower” means each of ReedHycalog Eurasia Ltd, a company organized
under the laws of England and Wales, and ReedHycalog UK Ltd, a company

-10-

 

organized under the laws of Northern Ireland, together with any Foreign Subsidiary that
becomes a Designated Borrower pursuant to Section 2.14.

     “Designated UK Borrower Obligations” means, collectively, the Loans and L/C
Obligations, including Committed Loans and UK Swing Line Loans, of the Designated UK Borrowers.

     “Disposition” or “Dispose” means the sale, transfer, exclusive license, lease
or other disposition (including any sale and leaseback transaction) of any property by any Person,
including any sale, assignment, transfer or other disposal, with or without recourse, of any notes
or accounts receivable or any rights and claims associated therewith; provided however,
that a “Disposition” does not include any of the following: (a) the non-exclusive licensing of
intellectual property rights, (b) any license by the Company to a Subsidiary thereof and (c) any
single transaction or series of related transactions that involves assets having a fair market
value (as reasonably determined by the Company) of less than $5,000,000.

     “Documentation Agent” means JPMorgan Chase Bank, N.A., in its capacity as
documentation agent under any of the Loan Documents, or any successor documentation agent.

     “Dollar” and “$” mean lawful money of the United States.

     “Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in
Dollars, such amount, and (b) with respect to any amount denominated in any Alternative Currency,
the equivalent amount thereof in Dollars as determined by the Administrative Agent or the
applicable L/C Issuer, as the case may be, at such time on the basis of the Spot Rate (determined
in respect of the most recent Revaluation Date) for the purchase of Dollars with such Alternative
Currency.

     “Domestic Subsidiary” means any Subsidiary that is organized under the laws of any
political subdivision of the United States.

     “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved
Fund; and (d) any other Person (other than a natural person) approved by (i) the Administrative
Agent, the L/C Issuers, and the Swing Line Lenders and (ii) unless an Event of Default has occurred
and is continuing, the Company (each such approval not to be unreasonably withheld or delayed);
provided that notwithstanding the foregoing, “Eligible Assignee” shall not include the
Company or any of the Company’s Affiliates or Subsidiaries; and provided further,
however, that an Eligible Assignee shall include only a Lender, an Affiliate of a Lender or
another Person, which, through its Lending Offices, is capable of lending the applicable
Alternative Currencies to the relevant Borrowers without the imposition of any additional
Indemnified Taxes.

     “EMU” means the economic and monetary union in accordance with the Treaty of Rome
1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the Amsterdam
Treaty of 1998.

     “EMU Legislation” means the legislative measures of the European Council for the
introduction of, changeover to or operation of a single or unified European currency.

-11-

 

     “Environmental Laws” means any and all Federal, state, local, and foreign statutes,
laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including those
related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Company, any other Loan Party or any of their respective Subsidiaries 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.

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

     “Equity Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person, all of the warrants, options or
other rights for the purchase or acquisition from such Person of shares of capital stock of (or
other ownership or profit interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person
or warrants, rights or options for the purchase or acquisition from such Person of such shares (or
such other interests), and all of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting, and whether or not
such shares, warrants, options, rights or other interests are outstanding on any date of
determination.

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

     “ERISA Affiliate” means any trade or business (whether or not incorporated) under
common control with the Company within the meaning of Section 414(b) or (c) of the Code (and
Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the
Code).

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Company or any ERISA Affiliate from a Pension Plan subject to Section 4063 of
ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2)
of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e)
of ERISA; (c) a complete or partial withdrawal by the Company or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing
of a notice of intent to terminate a Pension Plan in a distress termination under Section 4041(c)
of ERISA; (e) the termination of a Multiemployer Plan under Section 4041A of ERISA; (f) the
commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (g) an
event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or
the appointment of a trustee to administer, any

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Pension Plan or Multiemployer Plan; or (h) the imposition of any liability under Title IV of
ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the
Company or any ERISA Affiliate.

     “Euro” and “EUR” mean the lawful currency of the Participating Member States
introduced in accordance with the EMU Legislation.

     “Eurocurrency Rate” means, for any Interest Period with respect to a Eurocurrency Rate
Loan, the rate per annum (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) equal
to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or
other commercially available source providing quotations of BBA LIBOR as designated by the
Administrative Agent or the UK Swing Line Lender, as applicable, from time to time) at
approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest
Period, for deposits in the relevant currency (for delivery on the first day of such Interest
Period) with a term equivalent to such Interest Period. If such rate is not available at such time
for any reason, then the “Eurocurrency Rate” for such Interest Period shall be the rate per annum
equal to the rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) at which the
Administrative Agent or the UK Swing Line Lender, as applicable, is offered Dollar deposits at or
about 11:00 a.m., London time, two Business Days prior to the beginning of such Interest Period in
the London or other offshore interbank market where the eurodollar and foreign currency and
exchange operations in respect of its Eurocurrency Rate Loans are then being conducted for delivery
on the first day of such Interest Period for the number of days comprised therein, in Same Day
Funds, and in the approximate amount of the Eurocurrency Rate Loan being made, continued or
converted.

     “Eurocurrency Rate Loan” means a Committed Loan that bears interest at a rate based on
the Eurocurrency Rate or a UK Swing Line Loan. Eurocurrency Rate Loans may be denominated in
Dollars or in an Alternative Currency. All Committed Loans denominated in an Alternative Currency
must be Eurocurrency Rate Loans.

     “Event of Default” has the meaning specified in Section 8.01.

     “Excluded Taxes” means, with respect to the Administrative Agent, any Swing Line
Lender, any Lender, any L/C Issuer, or any other recipient of any payment to be made by or on
account of any obligation of any Borrower hereunder, (a) Taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) 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 or any similar tax imposed by any other jurisdiction in which a Borrower, the
Administrative Agent, any Swing Line Lender, any L/C Issuer or any other such recipient is located
and (c) except as provided in the following sentence, in the case of a Foreign Lender (other than
an assignee pursuant to a request by the Company under Section 10.13), any withholding tax
that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a
party hereto (or designates a new Lending Office) or is attributable to such Foreign Lender’s
failure or inability (other than as a result of a Change in Law) to comply with Section
3.01(e), except to the extent that such Foreign Lender (or its assignor, if any) was

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entitled, at the time of designation of a new Lending Office (or assignment), to receive
additional amounts from the applicable Borrower with respect to such withholding tax pursuant to
Section 3.01(a). Notwithstanding anything to the contrary contained in this definition,
“Excluded Taxes” shall not include any withholding tax imposed at any time on payments made by or
on behalf of a Foreign Obligor to any Lender hereunder or under any other Loan Document,
provided that such Lender shall have complied with Section 3.01(e).

     “Existing Credit Agreement” means that certain Credit Agreement dated as of May 12,
2005, by and among the Company, the other Borrowers, the financial institutions parties thereto as
Lenders, Bank of America, N.A., as Syndication Agent, Wells Fargo Bank, National Association, as
Administrative Agent, US Swing Line Lender and an L/C Issuer, HSBC Bank PLC, as UK Swing Line
Lender and an L/C Issuer, and Deutsche Bank Securities Inc., as Documentation Agent.

     “Existing Letters of Credit” means any letters of credit issued under the Existing
Credit Agreement and outstanding on the Closing Date.

     “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of
New York on the Business Day next succeeding such day; provided that (a) if such day is not
a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such
rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day
shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Wells Fargo on such day on such transactions as determined by the Administrative Agent.

     “Fee Letter” means each of (a) the letter agreement dated August ___, 2006, among the
Company, the Administrative Agent and Wells Fargo in its capacity as Arranger and (b) the letter
agreement dated August ___, 2006, among the Company, the Syndication Agent, and Banc of America
Securities LLC in its capacity as Arranger.

     “Foreign Lender” means, with respect to any Borrower, any Lender that is organized
under the laws of a jurisdiction other than that in which such Borrower is resident for tax
purposes. For purposes of this definition, the United States, each State thereof and the District
of Columbia shall be deemed to constitute a single jurisdiction.

     “Foreign Obligor” means a Loan Party that is a Foreign Subsidiary.

     “Foreign Subsidiary” means any Subsidiary that is organized under the laws of a
jurisdiction other than the United States, a State thereof or the District of Columbia.

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

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

     “GAAP” means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

     “Governmental Authority” means the government of the United States or any other
nation, or of 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 (including any supra-national bodies such as the European Union or the European Central
Bank).

     “Granting Lender” has the meaning specified in Section 10.06(h).

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

     “Guaranties” means the Company Guaranty and the Subsidiary Guaranty.

     “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas,

-15-

 

infectious or medical wastes and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.

     “HSBC” means HSBC Bank plc, and its successors.

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

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

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

     (c) net obligations of such Person under any Swap Contract;

     (d) all obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of business and, in each
case, not past due for more than 270 days after the date on which such trade account payable
was created);

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

     (f) capital leases and Off-Balance Sheet Liabilities;

     (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise
make any payment in respect of any Equity Interest in such Person or any other Person,
valued, in the case of a redeemable preferred interest, at the greater of its voluntary or
involuntary liquidation preference plus accrued and unpaid dividends, but excluding
from the foregoing obligations to purchase or acquire Equity Interests pursuant to indemnity
provisions of a business acquisition agreement that provides, directly or indirectly, for
the settlement of claims in the Equity Interests of the purchaser; and

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

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

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     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitees” has the meaning specified in Section 10.04(b).

     “Information” has the meaning specified in Section 10.07.

     “Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurocurrency Rate Loan exceeds three months, the
respective dates that fall every three months after the beginning of such Interest Period shall
also be Interest Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the
last Business Day of each March, June, September and December and the Maturity Date.

     “Interest Period” means, as to each Eurocurrency Rate Loan, the period commencing on
the date such Eurocurrency Rate Loan is disbursed or converted to or continued as a Eurocurrency
Rate Loan and ending on the date one, two, three or six months thereafter, as selected by the
Company in its Committed Loan Notice or UK Swing Line Loan Notice, as applicable; provided
that:

     (i) any Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding
Business Day;

     (ii) any Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall end on the last Business Day of the calendar month at the
end of such Interest Period; and

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

     “IP Rights” has the meaning specified in Section 5.17.

     “IRS” means the United States Internal Revenue Service.

     “ISP” means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice (or such later
version thereof as may be in effect at the time of issuance).

     “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by the L/C Issuer and
the Company (or any Subsidiary) or in favor of the applicable L/C Issuer and relating to any such
Letter of Credit.

     “Laws” means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or
judicial precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or administration thereof,

-17-

 

and all applicable administrative orders, directed duties, requests, licenses, authorizations
and permits of, and agreements with, any Governmental Authority, in each case whether or not having
the force of law.

     “L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable Percentage. All L/C Advances
shall be denominated in Dollars.

     “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made or refinanced as a Committed
Borrowing. All L/C Borrowings shall be denominated in Dollars.

     “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount thereof.

     “L/C Issuer” means (a) with respect to Letters of Credit, other than Bank Guaranties,
issued hereunder and presentable in the United States, each of Wells Fargo and any other Lender
that agrees to become an L/C Issuer hereunder and (b) with respect to Letters of Credit, including
Bank Guaranties, issued for the account of a Designated UK Borrower and presentable in London,
HSBC, in each case in its capacity as an issuer of Letters of Credit hereunder, or any successor
issuer or issuers of Letters of Credit hereunder.

     “L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing the amount available
to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.08. For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

     “Lender” has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the Swing Line Lenders.

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

     “Letter of Credit” means any standby letter of credit, commercial letter of credit or,
in the case of HSBC, Bank Guaranty, issued hereunder and shall include the Existing Letters of
Credit. Letters of Credit may be issued in Dollars or in an Alternative Currency.

     “Letter of Credit Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the applicable L/C Issuer.

     “Letter of Credit Expiration Date” means the day that is seven days prior to the
Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business
Day).

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     “Letter of Credit Fee” has the meaning specified in Section 2.03(i).

     “Letter of Credit Sublimit” means an amount equal to the sum of (a) $75,000,000 and
(b) the amount of all L/C Obligations as of any date of determination with respect to UK Issued
L/Cs (not to exceed the UK Sublimit). The Letter of Credit Sublimit is part of, and not in
addition to, the Aggregate Combined Commitments.

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or other security interest
(including any conditional sale or other title retention agreement, any easement, right of way or
other encumbrance on title to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

     “Loan” means an extension of credit by a Lender to a Borrower under Article II
in the form of a Committed Loan or a Swing Line Loan.

     “Loan Documents” means this Agreement, each Designated Borrower Request and Assumption
Agreement (and each comparable agreement by any future Designated UK Borrower), each Note, each
Issuer Document, each Fee Letter, and the Guaranties.

     “Loan Funding Account” means, for all Borrowings, the operating account that (a) is
listed on Schedule 1.01(a) as the “Loan Funding Account” for the applicable type of
Borrowing or (b) is hereafter designated in writing by two Responsible Officers of the Company as
the “Loan Funding Account” for such type of Borrowing.

     “Loan Parties” means, collectively, the Company, each Subsidiary Guarantor, and each
Designated Borrower.

     “Mandatory Cost” means, with respect to any period, the percentage rate per annum
determined in accordance with Schedule 1.01(b).

     “Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities (actual or contingent) or
condition (financial or otherwise) of the Company and its Subsidiaries taken as a whole; (b) a
material impairment of the ability of any Loan Party to perform its obligations under any Loan
Document to which it is a party; or (c) a material adverse effect upon the legality, validity,
binding effect or enforceability against any Loan Party of any Loan Document to which it is a
party.

     “Material Domestic Subsidiary” means any Domestic Subsidiary of the Company with
consolidated assets having an aggregate book value, as of the end of its fiscal year most recently
ended, of at least $5,000,000.

     “Material UK Subsidiary” means any UK Subsidiary of the Company with consolidated
assets having an aggregate book value, as of the end of its fiscal year most recently ended, of at
least $5,000,000.

     “Maturity Date” means September 30, 2011.

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

     “Multiemployer Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which the Company or any ERISA Affiliate makes or is obligated to make
contributions, or with respect to which the Company or any ERISA Affiliate may have any liability,
contingent or otherwise.

     “Note” means a promissory note made by a Borrower in favor of a Lender evidencing
Loans made by such Lender to such Borrower, substantially in the form of Exhibit B.

     “Obligations” means all advances to, and debts, liabilities, obligations, covenants
and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan
or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute
or contingent, due or to become due, now existing or hereafter arising and including interest and
fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of
any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such proceeding.

     “Off-Balance Sheet Liabilities” means, with respect to any Person as of any date of
determination thereof, without duplication and to the extent not included as a liability on the
consolidated balance sheet of such Person and its Subsidiaries in accordance with GAAP: (a) with
respect to any asset securitization transaction (including any accounts receivable purchase
facility) (i) the unrecovered investment of purchasers or transferees of assets so transferred, and
(ii) any other payment, recourse, repurchase, hold harmless, indemnity or similar obligation of
such Person or any of its Subsidiaries in respect of assets transferred or payments made in respect
thereof, other than limited recourse provisions that are customary for transactions of such type
and that neither (x) have the effect of limiting the loss or credit risk of such purchasers or
transferees with respect to payment or performance by the obligors of the assets so transferred nor
(y) impair the characterization of the transaction as a true sale under applicable Laws (including
Debtor Relief Laws); (b) Synthetic Lease Obligations; (c) the monetary obligations under any sale
and leaseback transaction which does not create a liability on the consolidated balance sheet of
such Person and its Subsidiaries; or (d) any other monetary obligation arising with respect to any
other transaction which (i) is characterized as indebtedness for tax purposes but not for
accounting purposes in accordance with GAAP or (ii) is the functional equivalent of or takes the
place of borrowing but which does not constitute a liability on the consolidated balance sheet of
such Person and its Subsidiaries (for purposes of this clause (d), any transaction structured to
provide tax deductibility as interest expense of any dividend, coupon or other periodic payment
will be deemed to be the functional equivalent of a borrowing).

     “Organization Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement,

-20-

 

instrument, filing or notice with respect thereto filed in connection with its formation or
organization with the applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or organization of such
entity.

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

     “Outstanding Amount” means (i) with respect to Committed Loans on any date, the Dollar
Equivalent amount of the aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of such Committed Loans occurring on such date; (ii) with
respect to Swing Line Loans on any date, the Dollar Equivalent amount of the aggregate outstanding
principal amount thereof after giving effect to any borrowings and prepayments or repayments of
such Swing Line Loans occurring on such date; and (iii) with respect to any L/C Obligations on any
date, the Dollar Equivalent amount of the aggregate outstanding amount of such L/C Obligations on
such date after giving effect to any L/C Credit Extension occurring on such date and any other
changes in the aggregate amount of the L/C Obligations as of such date, including as a result of
any reimbursements by the Company of Unreimbursed Amounts; provided that if a Supporting
L/C is issued with respect to a Bank Guaranty, the Outstanding Amount of such Bank Guaranty shall
not be included for purposes of determining the Outstanding Amount of the L/C Obligations. In
determining the Outstanding Amount of a Lender’s Loans or L/C Obligations, the aggregate amount of
each Lender’s risk participation and funded participation in L/C Obligations, Committed Loans, and
Swing Line Loans shall be deemed to be held by such Lender (and not by the Lender granting such
participation), or deemed to be included in such Lender’s Applicable Percentage (and not in the
Applicable Percentage of the Lender granting such participation), as applicable, for purposes of
this definition.

     “Overnight Rate” means, for any day, (a) with respect to any amount denominated in
Dollars, the greater of (i) the Federal Funds Rate and (ii) an overnight rate determined by the
Administrative Agent, the applicable L/C Issuer, or the applicable Swing Line Lender, as the case
may be, in accordance with banking industry rules on interbank compensation, and (b) with respect
to any amount denominated in an Alternative Currency, the rate of interest per annum at which
overnight deposits in the applicable Alternative Currency, in an amount approximately equal to the
amount with respect to which such rate is being determined, would be offered for such day by a
branch or Affiliate of Wells Fargo in the applicable offshore interbank market for such currency to
major banks in such interbank market.

     “Participant” has the meaning specified in Section 10.06(d).

     “Participating Member State” means each state so described in any EMU Legislation.

     “PBGC” means the Pension Benefit Guaranty Corporation.

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     “Pension Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by the Company or any ERISA Affiliate or to which the Company or any
ERISA Affiliate contributes or has an obligation to contribute, or with respect to which the
Company or any ERISA Affiliate may have any liability, contingent or otherwise.

     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

     “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by the Company or, with respect to any such plan that is subject to Section 412
of the Code or Title IV of ERISA, any ERISA Affiliate.

     “Platform” has the meaning specified in Section 6.02.

     “Qualified Stock” means any Equity Interests of the Company other than any Equity
Interests that, by their respective terms (or by the terms of any security into which such Equity
Interests are convertible or for which they are exercisable, redeemable, or exchangeable), or upon
the happening of any event or with the passage of time, matures, or are mandatorily redeemable,
pursuant to a sinking fund obligation or otherwise, or are redeemable at the option of the holder
thereof, in whole or in part, in each case, on or prior to the date that is 91 days after the
Maturity Date, or are convertible into or are exchangeable for debt securities of the Company or
any of its Subsidiaries.

     “Register” has the meaning specified in Section 10.06(c).

     “Registered Public Accounting Firm” has the meaning specified in the Securities Laws
and shall be independent of the Company as prescribed by the Securities Laws.

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

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA,
other than events for which the 30 day notice period has been waived.

     “Request for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Committed Loans, a Committed Loan Notice, (b) with respect to an L/C Credit
Extension, a Letter of Credit Application, (c) with respect to a US Swing Line Loan, a US Swing
Line Loan Notice, and (d) with respect to a UK Swing Line Loan, a UK Swing Line Loan Notice.

     “Required Lenders” means, as of any date of determination, Lenders having more than
50% of the Aggregate Combined Commitments or, if the commitment of each Lender to make Loans and
the obligation of the L/C Issuers to make L/C Credit Extensions have been terminated pursuant to
Section 8.02, Lenders holding in the aggregate more than 50% of the Total Outstandings
(with the aggregate amount of each Lender’s risk participation and funded participation in L/C
Obligations, Swing Line Loans, and Committed Loans being deemed “held”

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by such Lender, and not by the Lender granting such participation, for purposes of this
definition); provided that the Commitment of, and the portion of the Total Outstandings
held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a
determination of Required Lenders.

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, chief accounting officer, treasurer or assistant treasurer of a Loan Party. Any document
delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively
presumed to have been authorized by all necessary corporate, partnership and/or other action on the
part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted
on behalf of such Loan Party. With respect to the UK Borrower, a director shall constitute a
Responsible Officer.

     “Restricted Payment” means, with respect to any Person, any payment (whether in cash,
securities or other property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of any capital stock or
other Equity Interest of such Person, or on account of any return of capital to such Person’s
stockholders, partners or members (or the equivalent Person thereof); provided that “Restricted
Payments” shall not include distributions constituting dividends paid out of current income or
retained earnings.

     “Revaluation Date” means (a) with respect to any Loan, each of the following: (i)
each date of a Borrowing of a Eurocurrency Rate Loan denominated in an Alternative Currency, (ii)
each date of a continuation of a Eurocurrency Rate Loan denominated in an Alternative Currency
pursuant to Section 2.02, and (iii) such additional dates, not more frequently than once
every 7 days, as the Administrative Agent shall determine or the Required Lenders shall require;
and (b) with respect to any Letter of Credit, each of the following: (i) each date of issuance of
a Letter of Credit denominated in an Alternative Currency, (ii) each date of an amendment of any
such Letter of Credit having the effect of increasing the amount thereof (solely with respect to
the increased amount), (iii) each date of any payment by the applicable L/C Issuer under any Letter
of Credit denominated in an Alternative Currency, and (iv) such additional dates as the
Administrative Agent or the applicable L/C Issuer shall determine or the Required Lenders shall
require.

     “S&P” means Standard & Poor’s Ratings Services, a division of the McGraw-Hill
Companies, Inc. and any successor thereto.

     “Same Day Funds” means (a) with respect to disbursements and payments in Dollars,
immediately available funds, and (b) with respect to disbursements and payments in an Alternative
Currency, same day or other funds as may be determined by the Administrative Agent, the applicable
Swing Line Lender, or the applicable L/C Issuer, as the case may be, to be customary in the place
of disbursement or payment for the settlement of international banking transactions in the relevant
Alternative Currency.

     “Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002.

     “Saudi Riyals” means the lawful currency of Saudi Arabia.

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     “SEC” means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

     “Securities Laws” means the Securities Act of 1933, the Securities Exchange Act of
1934, Sarbanes-Oxley and the applicable accounting and auditing principles, rules, standards and
practices promulgated, approved or incorporated by the SEC or the Public Company Accounting
Oversight Board, as each of the foregoing may be amended and in effect on any applicable date
hereunder.

     “Shareholders’ Equity” means, as of any date of determination, consolidated
shareholders’ equity of the Company and its Subsidiaries as of that date determined in accordance
with GAAP.

     “Singapore Dollars” means the lawful currency of Singapore.

     “SPC” has the meaning specified in Section 10.06(h).

     “Spot Rate” for a currency means the rate determined by the Administrative Agent or
the L/C Issuer, as applicable, to be the rate quoted by the Person acting in such capacity as the
spot rate for the purchase by such Person of such currency with another currency through its
principal foreign exchange trading office at approximately 11:00 a.m. on the date two Business Days
prior to the date as of which the foreign exchange computation is made; provided that the
Administrative Agent or the L/C Issuer may obtain such spot rate from another financial institution
designated by the Administrative Agent or the L/C Issuer if the Person acting in such capacity does
not have as of the date of determination a spot buying rate for any such currency; and
provided further that the L/C Issuer may use such spot rate quoted on the date as
of which the foreign exchange computation is made in the case of any Letter of Credit denominated
in an Alternative Currency.

     “Sterling” and “£” mean the lawful currency of the United Kingdom.

     “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise controlled, directly,
or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of the Company. Voest Alpine shall not be a Subsidiary for any purposes of this
Credit Agreement, except as otherwise expressly stated herein, until and unless the Company obtains
control of Voest Alpine. Solely for purposes of making calculations required hereunder in
accordance with GAAP, Persons that would be required under GAAP to be consolidated with the
Company, but which are not controlled by the Company, shall be deemed Subsidiaries solely for the
purpose of making such calculations, but such Persons shall not otherwise be deemed Subsidiaries
for purposes of any representation, warranty or covenant hereunder (other than covenants, such as
financial covenants, requiring a calculation in accordance with GAAP).

     “Subsidiary Guarantors” means, collectively, (a) the Subsidiaries listed on Part I of
Schedule 1.01(c) hereto, (b) all Domestic Subsidiaries required to execute a Subsidiary
Guaranty

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under Section 6.13 hereafter, and (c) all UK Guarantors, provided that in no event
shall the foregoing defined term be construed to intend or suggest that any of the UK Guarantors
(other than ReedHycalog UK Holdings, LLP) have guaranteed any indebtedness or obligations of the
Company or any Domestic Subsidiary.

     “Subsidiary Guaranty” means, collectively (i) the Subsidiary Guaranty made by the
Subsidiary Guarantors in favor of the Administrative Agent and the Lenders, substantially in the
form of Exhibit F, and (ii) each guaranty made by a UK Guarantor in favor of the
Administrative Agent and the Lenders with respect to, in the case of the UK Guarantors other than
ReedHycalog UK Holdings, LLP, the obligations of the Designated UK Borrowers, together with each
guaranty delivered hereafter pursuant to Section 6.13.

     “Supporting L/C” means a Letter of Credit issued in support of a Bank Guaranty
pursuant to Section 2.03(m).

     “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master agreement with respect to
subject matter described by any of the foregoing (any such master agreement, together with any
related schedules, a “Master Agreement”), including any such obligations or liabilities
under any Master Agreement.

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

     “Swing Line” means the UK Swing Line and the US Swing Line.

     “Swing Line Lender” means each of the UK Swing Line Lender and the US Swing Line
Lender.

     “Swing Line Loan” means a UK Swing Line Loan or a US Swing Line Loan.

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     “Syndication Agent” means Bank of America, N.A., in its capacity as syndication agent
under any of the Loan Documents, or any successor syndication agent.

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

     “TARGET Day” means any day on which the Trans-European Automated Real-time Gross
Settlement Express Transfer (TARGET) payment system (or, if such payment system ceases to be
operative, such other payment system (if any) determined by the Administrative Agent to be a
suitable replacement) is open for the settlement of payments in Euro.

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority, whether
calculated on a separate or consolidated, unitary or combined basis, and including any interest,
additions to tax or penalties applicable thereto.

     “Tender Activities” means the offers to purchase, call or redeem, and any related
consent solicitations, and the activities and expenses incurred in connection therewith, with
respect to the 9 5/8% Senior Notes due 2007 (CUSIP No. 38821GAB7), and the 9% Senior Notes due 2009
(CUSIP No. 38821GAD3).

     “Threshold Amount” means $25,000,000.

     “Total Capitalization” means, at any time, the sum of Consolidated Total Indebtedness
and Consolidated Net Worth at such time.

     “Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C
Obligations.

     “Type” means, with respect to a Committed Loan or UK Swing Line Loan, its character as
a Base Rate Loan or a Eurocurrency Rate Loan.

     “UK Commitment” means, as to the UK Swing Line Lender, its obligation to (a) make UK
Swing Line Loans pursuant to Section 2.04(b), (b) make Committed Loans and purchase
participations in Committed Loans pursuant to Section 2.01, and (c) issue Letters of Credit
for the account of the Designated UK Borrowers and purchase risk participations in Letters of
Credit pursuant to Section 2.03(b), in an aggregate principal amount at any one time
outstanding, in the case of Loans and participations in Loans, and aggregate amount of L/C
Obligations then outstanding in the case of Letters of Credit and risk participations in Letters of
Credit, not to exceed, in the aggregate, the UK Sublimit.

     “UK Guarantor” means, collectively, the Subsidiaries listed on Part II of Schedule
1.01(c) hereto, and all Subsidiaries (other than Domestic Subsidiaries) required to execute a
guaranty under Section 6.13 hereafter.

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     “UK Issued L/C” means a Letter of Credit issued by HSBC, including a Bank Guaranty.

     “UK Loan Party” means each of ReedHycalog UK Holdings, LLP, ReedHycalog Eurasia Ltd,
ReedHycalog UK Ltd, Reed Hycalog International Limited, and Camco Drilling Group Limited.

     “UK Sublimit” means $25,000,000.

     “UK Subsidiary” means a Subsidiary organized under the laws of a country comprising
the United Kingdom.

     “UK Swing Line” means the revolving credit facility made available by the UK Swing
Line Lender pursuant to Section 2.04(b).

     “UK Swing Line Borrowing” means a borrowing of a UK Swing Line Loan pursuant to
Section 2.04(b).

     “UK Swing Line Lender” means HSBC, in its capacity as provider of UK Swing Line Loans,
or any successor swing line lender hereunder.

     “UK Swing Line Lender’s Office” means, with respect to any currency, the UK Swing Line
Lender’s address and, as appropriate, account as set forth on Schedule 10.02 with respect
to such currency, or such other address or account with respect to such currency as the UK Swing
Line Lender may from time to time notify to the Company and the Lenders.

     “UK Swing Line Loan” has the meaning specified in Section 2.04(b)(i).

     “UK Swing Line Loan Notice” means a notice of a UK Swing Line Borrowing pursuant to
Section 2.04(b)(ii), which, if in writing, shall be substantially in the form of
Exhibit A-3.

     “Unfunded Pension Liability” means the excess of a the aggregate of the actuarial
present value of accumulated plan benefits (within the meaning of Statement of Financial Accounting
Standards No. 35) of all Pension Plans over the fair market value of the assets of the Pension
Plans, both determined as of the most recently completed fiscal years of the Pension Plans.

     “United States” and “U.S.” mean the United States of America.

     “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i), and
shall include any such amounts with respect to Bank Guaranties.

     “US Swing Line” means the revolving credit facility made available by the US Swing
Line Lender pursuant to Section 2.04(a).

     “US Swing Line Borrowing” means a borrowing of a US Swing Line Loan pursuant to
Section 2.04(a).

     “US Swing Line Lender” means Wells Fargo, in its capacity as provider of US Swing Line
Loans, or any successor swing line lender hereunder.

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     “US Swing Line Loan” has the meaning specified in Section 2.04(a)(i).

     “US Swing Line Loan Notice” means a notice of a US Swing Line Borrowing pursuant to
Section 2.04(a)(ii), which, if in writing, shall be substantially in the form of
Exhibit A-2.

     “US Swing Line Sublimit” means an amount equal to the lesser of (a) $20,000,000 and
(b) the Aggregate Commitments (US). The US Swing Line Sublimit is part of, and not in addition to,
the Aggregate Commitments (US).

     “Voest Alpine” means each of Voest Alpine Tubulars GmbH & Co. KG, and Voest Alpine
Tubulars GmbH, each an Austrian business entity.

     “Wells Fargo” means Wells Fargo Bank, National Association, and its successors.

     “Wholly Owned Foreign Subsidiary” means a Wholly Owned Subsidiary that is a Foreign
Subsidiary.

     “Wholly Owned Subsidiary” means, with respect to the Company, any Person all of the
capital stock or equivalent ownership interests of which, other than directors’ qualifying shares
required by law, is owned by the Company directly and/or through other Wholly Owned Subsidiaries.

     1.02 Other Interpretive Provisions. With reference to this Agreement and each other Loan
Document, unless otherwise specified herein or in such other Loan Document:

     (a) 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, (i) any definition of or reference to any agreement,
instrument or other document (including any Organization Document) 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 or in any other Loan Document), (ii) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (iii) the words “herein,”
“hereof” and “hereunder,” and words of similar import when used in any Loan
Document, shall be construed to refer to such Loan Document in its entirety and not to any
particular provision thereof, (iv) all references in a Loan Document to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall
include all statutory and regulatory provisions consolidating, amending, replacing or interpreting
such law and any reference to any law or regulation shall, unless otherwise specified, refer to
such law or regulation as amended, modified or supplemented from time to time, and (vi) 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.

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     (b) In the computation of periods of time from a specified date to a later specified date, the
word “from” means “from and including;” the words “to” and “until”
each mean “to but excluding;” and the word “through” means “to and
including.”

     (c) Section headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any other Loan
Document.

     1.03 Accounting Terms. (a) Generally. All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all financial data (including
financial ratios and other financial calculations) required to be submitted pursuant to this
Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect
from time to time, applied in a manner consistent with that used in preparing the Audited Financial
Statements, except as otherwise specifically prescribed herein.

     (b) Changes in GAAP. If at any time any change in GAAP that the Company is required
to adopt, would affect the computation of any financial ratio or requirement set forth in any Loan
Document, and either the Company or the Required Lenders shall so request, the Administrative
Agent, the Lenders and the Company shall negotiate in good faith to amend such ratio or requirement
to preserve the original intent thereof in light of such change in GAAP (subject to the approval of
the Required Lenders); provided that, until so amended, (i) such ratio or
requirement shall continue to be computed in accordance with GAAP prior to such change therein and
(ii) the Company shall provide to the Administrative Agent and the Lenders financial statements and
other documents required under this Agreement or as reasonably requested hereunder setting forth a
reconciliation between calculations of such ratio or requirement made before and after giving
effect to such change in GAAP.

     1.04 Exchange Rates; Currency Equivalents. (a) The Administrative Agent or the applicable L/C
Issuer, as applicable, shall determine the Spot Rates as of each Revaluation Date to be used for
calculating Dollar Equivalent amounts of Credit Extensions and Outstanding Amounts denominated in
Alternative Currencies. Such Spot Rates shall become effective as of such Revaluation Date and
shall be the Spot Rates employed in converting any amounts between the applicable currencies until
the next Revaluation Date to occur. Except for purposes of financial statements delivered by Loan
Parties hereunder or calculating financial covenants hereunder or except as otherwise provided
herein, the applicable amount of any currency (other than Dollars) for purposes of the Loan
Documents shall be such Dollar Equivalent amount as so determined by the Administrative Agent or
the applicable L/C Issuer, as applicable.

     (b) Wherever in this Agreement in connection with a Committed Borrowing, a UK Swing Line
Borrowing, conversion, continuation or prepayment of a Eurocurrency Rate Loan or the issuance,
amendment or extension of a Letter of Credit, an amount, such as a required minimum or multiple
amount, is expressed in Dollars, but such Committed Borrowing, UK Swing Line Borrowing,
Eurocurrency Rate Loan or Letter of Credit is denominated in an Alternative Currency, such amount
shall be the relevant Alternative Currency Equivalent of such Dollar amount (rounded to the nearest
unit of such Alternative Currency, with 0.5 of a unit being rounded upward), as determined by the
Administrative Agent, the UK Swing Line Lender, or the applicable L/C Issuer, as the case may be.

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     1.05 Additional Alternative Currencies. (a) The Company may from time to time request that
Eurocurrency Rate Loans be made and/or Letters of Credit be issued in a currency other than those
specifically listed in the definition of “Alternative Currency;” provided that such requested
currency is a lawful currency (other than Dollars) that is readily available and freely
transferable and convertible into Dollars. In the case of any such request with respect to the
making of Eurocurrency Rate Loans, such request shall be subject to the approval of the
Administrative Agent, the UK Swing Line Lender, and the Lenders; and in the case of any such
request with respect to the issuance of Letters of Credit, such request shall be subject to the
approval of the Administrative Agent, and the applicable L/C Issuers.

     (b) Any such request shall be made to the Administrative Agent not later than 11:00 a.m., 20
Business Days prior to the date of the desired Credit Extension (or such other time or date as may
be agreed by the Administrative Agent and, in the case of any such request pertaining to Letters of
Credit, the applicable L/C Issuers, in its or their sole discretion). In the case of any such
request pertaining to Eurocurrency Rate Loans, the Administrative Agent shall promptly notify each
Lender and the UK Swing Line Lender thereof; and in the case of any such request pertaining to
Letters of Credit, the Administrative Agent shall promptly notify the applicable L/C Issuers
thereof. Each Lender, the UK Swing Line Lender, and/or each L/C Issuer, as applicable, shall
notify the Administrative Agent, not later than 11:00 a.m., ten Business Days after receipt of such
request whether it consents, in its sole discretion, to the making of Eurocurrency Rate Loans or
the issuance of Letters of Credit, as the case may be, in such requested currency.

     (c) Any failure by a Lender or the UK Swing Line Lender or an L/C Issuer, as the case may be,
to respond to such request within the time period specified in the preceding sentence shall be
deemed to be a refusal by such Lender or the UK Swing Line Lender or such L/C Issuer, as the case
may be, to permit Eurocurrency Rate Loans to be made or Letters of Credit to be issued in such
requested currency. If the Administrative Agent, the UK Swing Line Lender, and all the Lenders
consent to making Eurocurrency Rate Loans in such requested currency, the Administrative Agent
shall so notify the Company and such currency shall thereupon be deemed for all purposes to be an
Alternative Currency hereunder for purposes of any Borrowings of Eurocurrency Rate Loans; and if
the Administrative Agent, the UK Swing Line Lender, and all the L/C Issuers consent to the issuance
of Letters of Credit in such requested currency, the Administrative Agent shall so notify the
Company and such currency shall thereupon be deemed for all purposes to be an Alternative Currency
hereunder for purposes of any Letter of Credit issuances. If the Administrative Agent shall fail to
obtain consent to any request for an additional currency under this Section 1.05, the
Administrative Agent shall promptly so notify the Company.

     1.06 Change of Currency. (a) Each obligation of the Borrowers to make a payment denominated
in the national currency unit of any member state of the European Union that adopts the Euro as its
lawful currency after the date hereof shall be redenominated into Euro at the time of such adoption
(in accordance with the EMU Legislation). If, in relation to the currency of any such member
state, the basis of accrual of interest expressed in this Agreement in respect of that currency
shall be inconsistent with any convention or practice in the London interbank market for the basis
of accrual of interest in respect of the Euro, such expressed basis shall be replaced by such
convention or practice with effect from the date on which such member

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state adopts the Euro as its lawful currency; provided that if any Committed Borrowing
in the currency of such member state is outstanding immediately prior to such date, such
replacement shall take effect, with respect to such Committed Borrowing, at the end of the then
current Interest Period.

     (b) Each provision of this Agreement shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time specify to be appropriate to reflect
the adoption of the Euro by any member state of the European Union and any relevant market
conventions or practices relating to the Euro.

     (c) Each provision of this Agreement also shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time specify to be appropriate to reflect
a change in currency of any other country and any relevant market conventions or practices relating
to the change in currency.

     1.07 Times of Day. Unless otherwise specified, all references herein to times of day shall be
references to Central time (daylight or standard, as applicable).

     1.08 Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of
Credit at any time shall be deemed to be the Dollar Equivalent of the stated amount of such Letter
of Credit in effect at such time; provided, however, that with respect to any Letter of Credit
that, by its terms or the terms of any Issuer Document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be
deemed to be the Dollar Equivalent of the maximum stated amount of such Letter of Credit after
giving effect to all such increases, whether or not such maximum stated amount is in effect at such
time.

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

     2.01 Committed Loans. Subject to the terms and conditions set forth herein, each Lender
severally agrees to make loans (each such loan, a “Committed Loan”) to the Borrowers in
Dollars or in one or more Alternative Currencies from time to time, on any Business Day during the
Availability Period, in an aggregate amount not to exceed at any time outstanding the amount of
such Lender’s Commitment; provided, however, that after giving effect to any
Committed Borrowing, (i) the Total Outstandings shall not exceed the Aggregate Combined
Commitments, (ii) the Total Outstandings minus the aggregate Outstanding Amount of all
Designated UK Borrower Obligations shall not exceed the Aggregate Commitments (US), (iii) the
aggregate Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s
Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s
Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such
Lender’s Commitment, (iv) the aggregate Outstanding Amount of all Designated UK Borrower
Obligations shall not exceed the UK Sublimit, and (v) the aggregate Outstanding Amount of all Loans
and L/C Obligations denominated in Alternative Currencies shall not exceed the Alternative Currency
Sublimit; and provided further that the availability of the Aggregate Commitments
(US) and the UK Commitment at any time for the making of Loans and the issuance of Letters of
Credit shall be reduced by the amount of the Alternative Currency Reserve

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(if any). Notwithstanding the foregoing, the UK Swing Line Lender’s agreement to make
Committed Loans hereunder is limited to (a) the making of Committed Loans pursuant to Section
2.04(b)(iv) to refinance UK Swing Line Loans and pursuant to Section 2.03(c) to
refinance Unreimbursed Amounts of UK Issued L/Cs, (b) the purchase of participations in existing
Committed Loans in connection therewith in accordance with Section 2.02(f), and
continuations and conversions of the foregoing. Within the limits of each Lender’s Commitment, and
subject to the other terms and conditions hereof, the Borrowers may borrow under this Section
2.01, prepay under Section 2.05, and reborrow under this Section 2.01.
Committed Loans may be Base Rate Loans or Eurocurrency Rate Loans, as further provided herein.

     2.02 Borrowings, Conversions and Continuations of Committed Loans.

     (a) Each Committed Borrowing, each conversion of Committed Loans from one Type to the other,
and each continuation of Committed Loans that are Eurocurrency Rate Loans shall be made upon Grant
Prideco, L.P.’s irrevocable notice to the Administrative Agent, which notices may be given by
telephone. Each such notice must be received by the Administrative Agent not later than 10:00 a.m.
(i) three Business Days prior to the requested date of any Borrowing of, conversion to or
continuation of Eurocurrency Rate Loans denominated in Dollars or of any conversion of Eurocurrency
Rate Loans denominated in Dollars to Base Rate Committed Loans, (ii) three Business Days prior to
the requested date of any Borrowing or continuation of Eurocurrency Rate Loans denominated in
Alternative Currencies, and (iii) on the requested date of any Borrowing of Base Rate Committed
Loans. Each telephonic notice by Grant Prideco, L.P. pursuant to this Section 2.02(a) must
be confirmed promptly by delivery to the Administrative Agent of a written Committed Loan Notice,
appropriately completed and signed by a Responsible Officer of Grant Prideco, L.P. Each Committed
Borrowing of, conversion to or continuation of Eurocurrency Rate Loans shall be in a principal
amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof. Except as provided in
Sections 2.03(c), 2.04(a)(iii) and 2.04(b)(iv), each Committed Borrowing of
or conversion to Base Rate Committed Loans shall be in a principal amount of $500,000 or a whole
multiple of $100,000 in excess thereof. Each Committed Loan Notice (whether telephonic or written)
shall specify (i) whether Grant Prideco, L.P. is requesting a Committed Borrowing, a conversion of
Committed Loans from one Type to the other, or a continuation of Eurocurrency Rate Loans, (ii) the
requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a
Business Day), (iii) the principal amount of Committed Loans to be borrowed, converted or
continued, (iv) the Type of Committed Loans to be borrowed or to which existing Committed Loans are
to be converted, (v) if applicable, the duration of the Interest Period with respect thereto, (vi)
the currency of the Committed Loans to be borrowed, and (vii) the applicable Borrower. If Grant
Prideco, L.P. fails to specify a currency in a Committed Loan Notice requesting a Borrowing, then
the Committed Loans so requested shall be made in Dollars. If Grant Prideco, L.P. fails to specify
a Type of Committed Loan in a Committed Loan Notice or if Grant Prideco, L.P. fails to give a
timely notice requesting a conversion or continuation, then the applicable Committed Loans shall be
made as, or converted to, Base Rate Loans; provided, however, that in the case of a
failure to timely request a continuation of Committed Loans denominated in an Alternative Currency,
such Loans shall be continued as Eurocurrency Rate Loans in their original currency with an
Interest Period of one month. Any automatic conversion to Base Rate Loans shall be effective as of
the last day of the Interest Period then in effect with respect to the applicable Eurocurrency Rate
Loans. If Grant Prideco, L.P. requests a Borrowing

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of, conversion to, or continuation of Eurocurrency Rate Loans in any such Committed Loan
Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest
Period of one month. No Committed Loan may be converted into or continued as a Committed Loan
denominated in a different currency, but instead must be prepaid in the original currency of such
Committed Loan and reborrowed in the applicable different currency.

     (b) Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly
notify each Lender of the amount (and currency) of its Applicable Percentage of the applicable
Committed Loans, and if no timely notice of a conversion or continuation is provided by Grant
Prideco, L.P., the Administrative Agent shall notify each Lender of the details of any automatic
conversion to Base Rate Loans or continuation of Committed Loans denominated in a currency other
than Dollars, in each case as described in the preceding subsection. In the case of a Committed
Borrowing, each Lender shall make the amount of its Committed Loan available to the Administrative
Agent in Same Day Funds at the Administrative Agent’s Office for the applicable currency, not later
than 12:00 noon in the case of any Committed Loan denominated in Dollars, and not later than the
Applicable Time specified by the Administrative Agent in the case of any Committed Loan in an
Alternative Currency, in each case on the Business Day specified in the applicable Committed Loan
Notice. Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if
such Borrowing is the initial Credit Extension, Section 4.01), the Administrative Agent
shall make all funds so received available to Grant Prideco, L.P. or the other applicable Borrower
in like funds as received by the Administrative Agent either by (i) crediting the Loan Funding
Account with the amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by
two Responsible Officers of Grant Prideco, L.P. (in each case, which Responsible Officers have been
designated in writing to the Administrative Agent by two other Responsible Officers of Grant
Prideco, L.P.); provided, however, that if, on the date the Committed Loan Notice
with respect to such Borrowing denominated in Dollars is given by Grant Prideco, L.P., there are
L/C Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied to
the payment in full of any such L/C Borrowings, and, second, shall be made available to the
applicable Borrower as provided above.

     (c) Except as otherwise provided herein, a Committed Loan that is a Eurocurrency Rate Loan may
be continued or converted only on the last day of an Interest Period for such Eurocurrency Rate
Loan. During the existence of a Default, no Loans may be requested as, converted to or continued
as Eurocurrency Rate Loans (whether in Dollars or any Alternative Currency) without the consent of
the Required Lenders, and the Required Lenders may demand that any or all of the then outstanding
Eurocurrency Rate Loans denominated in an Alternative Currency be prepaid, or redenominated into
Dollars in the amount of the Dollar Equivalent thereof, on the last day of the then current
Interest Period with respect thereto.

     (d) The Administrative Agent shall promptly notify Grant Prideco, L.P. and the Lenders of the
interest rate applicable to any Interest Period for Committed Loans that are Eurocurrency Rate
Loans upon determination of such interest rate. At any time that Committed Loans that are Base
Rate Loans are outstanding, the Administrative Agent shall notify Grant Prideco, L.P. and the
Lenders of any change in Wells Fargo’s prime rate used in determining the Base Rate promptly
following the public announcement of such change.

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     (e) After giving effect to all Committed Borrowings, all conversions of Committed Loans from
one Type to the other, and all continuations of Committed Loans as the same Type, there shall not
be more than ten Interest Periods in effect with respect to Committed Loans.

     (f) In the event that a Committed Loan is made pursuant to Section 2.04(b)(iv) or
Section 2.03(c) (in the case of a refinancing of any Unreimbursed Amounts of any UK Issued
L/Cs), the UK Swing Line Lender shall purchase (for cash at face value) participations in the other
Committed Loans of the other Lenders and, if applicable, in US Swing Line Loans, in an aggregate
principal amount equal to the amount of the UK Swing Line Loans so refinanced (less the UK Swing
Line Lender’s ratable share of such Committed Loan) or, if less, the aggregate Outstanding Amount
of Committed Loans and, if applicable, US Swing Line Loans, so that after giving effect to such
Committed Loan each Lender (including the UK Swing Line Lender) holds its Applicable Percentage of
the Outstanding Amount of the Committed Loans and, if applicable, US Swing Line Loans. The
respective amounts of such participations shall be adjusted upon any new borrowings or payments as
necessary to cause each Lender (including the UK Swing Line Lender) to hold its Applicable
Percentage of the Outstanding Amount of the Committed Loans and, if applicable, US Swing Line
Loans.

     2.03 Letters of Credit.

     (a) The Letter of Credit Commitment.

     (i) Subject to the terms and conditions set forth herein, (A) each L/C Issuer agrees,
in reliance upon the agreements of the Lenders set forth in this Section 2.03, (1)
from time to time on any Business Day during the period from the Closing Date until the
Letter of Credit Expiration Date, to issue Letters of Credit denominated in Dollars or in
one or more Alternative Currencies for the account of the Company or its Subsidiaries
(provided that HSBC shall issue Letters of Credit solely for the account of the
Designated UK Borrowers), and to amend or extend Letters of Credit previously issued by it,
in accordance with subsection (b) below, including Supporting L/Cs in accordance with
Section 2.03(m) and (2) to honor drawings under the Letters of Credit; and (B) the
Lenders severally agree to participate in Letters of Credit (other than Bank Guaranties)
issued for the account of the Company or its Subsidiaries and any drawings thereunder
(provided that HSBC shall participate in Letters of Credit solely as hereafter
provided); provided that after giving effect to any L/C Credit Extension with
respect to any Letter of Credit, (u) the aggregate Outstanding Amount of all Loans and L/C
Obligations denominated in Alternative Currencies shall not exceed the Alternative Currency
Sublimit, (v), the Total Outstandings shall not exceed the Aggregate Combined Commitments,
(w) the Total Outstandings minus the aggregate Outstanding Amount of all Designated
UK Borrower Obligations shall not exceed the Aggregate Commitments (US), (x) the aggregate
Outstanding Amount of the Committed Loans of any Lender plus such Lender’s
Applicable Percentage of the Outstanding Amount of all L/C Obligations plus such
Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not
exceed such Lender’s Commitment, (y) the Outstanding Amount of the L/C Obligations shall not
exceed the Letter of Credit Sublimit, and (z) the aggregate Outstanding Amount of all
Designated UK Borrower Obligations shall not exceed the UK Sublimit; and provided
further that the availability of the Aggregate Commitments

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(US) and the UK Commitment at any time for the making of Loans and the issuance of
Letters of Credit shall be reduced by the amount of the Alternative Currency Reserve (if
any). Letters of Credit shall be requested by Grant Prideco, L.P., on behalf of the Company
and its Subsidiaries, except that the applicable Designated UK Borrower shall request the
issuance or amendment of UK Issued L/Cs. Each request by Grant Prideco, L.P. or the
applicable Designated UK Borrower for the issuance or amendment of a Letter of Credit shall
be deemed to be a representation by such Person that the L/C Credit Extension so requested
complies with the conditions set forth in the provisos to the preceding sentence. Within
the foregoing limits, and subject to the terms and conditions hereof, Grant Prideco, L.P.’s
and the Designated UK Borrowers’ ability to obtain Letters of Credit shall be fully
revolving, and accordingly Grant Prideco, L.P. and the Designated UK Borrowers may, during
the foregoing period, obtain Letters of Credit to replace Letters of Credit that have
expired or that have been drawn upon and reimbursed. All Existing Letters of Credit shall
be deemed to have been issued pursuant hereto, and from and after the Closing Date shall be
subject to and governed by the terms and conditions hereof. Any Bank Guaranty issued under
this Agreement shall be subject to the additional requirements of Section 2.03(m).

     (ii) No L/C Issuer shall issue any Letter of Credit, if, subject to Section
2.03(b)(iii), the expiry date of such requested Letter of Credit would occur more than
two years after the Maturity Date, unless the Required Lenders have approved such expiry
date;

     (iii) No L/C Issuer shall be under any obligation to issue any Letter of Credit if:

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

     (B) the issuance of such Letter of Credit would violate one or more policies of
such L/C Issuer;

     (C) except as otherwise agreed by the Administrative Agent and such L/C Issuer,
such Letter of Credit is to be denominated in a currency other than Dollars or an
Alternative Currency;

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     (D) such L/C Issuer does not as of the issuance date of such requested Letter
of Credit issue Letters of Credit in the requested currency;

     (E) such Letter of Credit contains any provisions for automatic reinstatement
of the stated amount after any drawing thereunder; or

     (F) a default of any Lender’s obligations to fund under Section 2.03(c)
exists or any Lender is at such time a Defaulting Lender hereunder, unless such L/C
Issuer has entered into satisfactory arrangements with Grant Prideco, L.P. or such
Lender to eliminate such L/C Issuer’s risk with respect to such Lender.

     (iv) No L/C Issuer shall amend any Letter of Credit if such L/C Issuer would not be
permitted at such time to issue such Letter of Credit in its amended form under the terms
hereof.

     (v) No L/C Issuer shall be under any obligation to amend any Letter of Credit if such
L/C Issuer would have no obligation at such time to issue such Letter of Credit in its
amended form under the terms hereof. Each L/C Issuer shall notify the Administrative Agent
promptly upon rejection by the applicable beneficiary of an amendment to a Letter of Credit
issued by such L/C Issuer.

     (vi) Each L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and each L/C Issuer shall have
all of the benefits and immunities (A) provided to the Administrative Agent in Article
IX with respect to any acts taken or omissions suffered by such L/C Issuer in connection
with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents
pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used
in Article IX included such L/C Issuer with respect to such acts or omissions, and
(B) as additionally provided herein with respect to such L/C Issuer.

     (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
Credit.

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the
request of Grant Prideco, L.P. or the applicable Designated UK Borrower, as applicable,
delivered to the applicable L/C Issuer (with a copy to the Administrative Agent) in the form
of a Letter of Credit Application, appropriately completed and signed by a Responsible
Officer of Grant Prideco, L.P. or the applicable Designated UK Borrower. Such Letter of
Credit Application must be received by the applicable L/C Issuer and the Administrative
Agent not later than 10:00 a.m. (or 10:00 a.m. London time with respect to UK Issued L/Cs)
at least two Business Days (or such later date and time as the Administrative Agent and the
applicable L/C Issuer may agree in a particular instance in their sole discretion) prior to
the proposed issuance date or date of amendment, as the case may be. In the case of a
request for an initial issuance of a Letter of Credit, such Letter of Credit Application
shall specify in form and detail satisfactory to the applicable L/C Issuer: (A) the proposed
issuance date of the requested Letter of Credit

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(which shall be a Business Day); (B) the amount and currency thereof; (C) the expiry
date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be
presented by such beneficiary in case of any drawing thereunder; (F) the full text of any
certificate to be presented by such beneficiary in case of any drawing thereunder; and (G)
such other matters as such L/C Issuer may require. In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit Application shall
specify in form and detail satisfactory to the applicable L/C Issuer (A) the Letter of
Credit to be amended; (B) the proposed date of amendment thereof (which shall be a Business
Day); (C) the nature of the proposed amendment; and (D) such other matters as such L/C
Issuer may reasonably require. Additionally, Grant Prideco, L.P. or the applicable
Designated UK Borrower shall furnish to the applicable L/C Issuer and the Administrative
Agent such other documents and information pertaining to such requested Letter of Credit
issuance or amendment, including any Issuer Documents, as the applicable L/C Issuer or the
Administrative Agent may require.

     (ii) Promptly after receipt of any Letter of Credit Application, the applicable L/C
Issuer will confirm with the Administrative Agent (by telephone, by e-mail, or in writing)
that the Administrative Agent has received a copy of such Letter of Credit Application from
Grant Prideco, L.P. or the applicable Designated UK Borrower and, if not, such L/C Issuer
will provide the Administrative Agent with a copy thereof. With respect to any requested
Letter of Credit other than a Supporting L/C, unless the applicable L/C Issuer has received
written notice from any Lender, the Administrative Agent or any Loan Party, at least one
Business Day prior to the requested date of issuance or amendment of the applicable Letter
of Credit, that one or more applicable conditions contained in Article IV shall not
then be satisfied, then, subject to the terms and conditions hereof, such L/C Issuer shall,
on the requested date, issue a Letter of Credit for the account of Grant Prideco, L.P. or
the applicable Designated UK Borrower (or the Company or applicable Subsidiary of the
Company) or enter into the applicable amendment, as the case may be, in each case in
accordance with such L/C Issuer’s usual and customary business practices. Immediately upon
the issuance of each Letter of Credit (other than a Bank Guaranty or other UK Issued L/C),
each Lender (other than the UK Swing Line Lender) shall be deemed to, and hereby irrevocably
and unconditionally agrees to, purchase from the applicable L/C Issuer a risk participation
in such Letter of Credit in an amount equal to the product of such Lender’s Applicable
Percentage times the amount of such Letter of Credit. Upon the occurrence of a
Default or Event of Default, the UK Swing Line Lender may request that each other Lender,
and upon such request each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from HSBC a risk participation in each UK Issued L/C
(other than a Bank Guaranty) then outstanding in an amount equal to the product of such
Lender’s Applicable Percentage times the amount of such Letter of Credit, and HSBC
shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from each
other Lender a risk participation in each other Letter of Credit in an aggregate principal
amount equal to the amount of the UK Issued L/Cs in which the other Lenders purchased risk
participations (less the UK Swing Line Lender’s ratable share thereof) or, if less, the
aggregate Outstanding Amount of such other Letters of Credit, so that after giving effect to
such participation each Lender (including the UK Swing Line Lender) holds its Applicable
Percentage of the Outstanding Amount of the L/C Obligations. The

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respective amounts of such participations shall be adjusted upon any Letter of Credit
issuances, amendments, expirations, payments, or otherwise as necessary to cause each Lender
(including the HSBC) to hold its Applicable Percentage of the Outstanding Amount of the L/C
Obligations.

     (iii) If Grant Prideco, L.P. or the applicable Designated UK Borrower so requests in
any applicable Letter of Credit Application, the applicable L/C Issuer may, in its sole and
absolute discretion, agree to issue a Letter of Credit that has automatic extension
provisions (each, an “Auto-Extension Letter of Credit”); provided that any
such Auto-Extension Letter of Credit must permit such L/C Issuer to prevent any such
extension at least once in each auto-extension period (commencing with the date of issuance
of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a
day (the “Non-Extension Notice Date”) in each such auto-extension period to be
agreed upon at the time such Letter of Credit is issued. Unless otherwise directed by the
applicable L/C Issuer, Grant Prideco, L.P. or the applicable Designated UK Borrower shall
not be required to make a specific request to such L/C Issuer for any such extension. Once
an Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to have
authorized (but may not require) the applicable L/C Issuer to permit the extension of such
Letter of Credit at any time to an expiry date not later than the Letter of Credit
Expiration Date; provided, however, that such L/C Issuer shall not permit
any such extension if (A) such L/C Issuer has determined that it would not be permitted, or
would have no obligation, at such time to issue such Letter of Credit in its revised form
(as extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of
Section 2.03(a) or otherwise), or (B) it has received notice (which may be by
telephone, by e-mail, or in writing) on or before the day that is five Business Days before
the Non-Extension Notice Date (1) from the Administrative Agent that the Required Lenders
have elected not to permit such extension or (2) other than with respect to Supporting L/Cs,
from the Administrative Agent, any Lender, Grant Prideco, L.P., or the applicable Designated
UK Borrower that one or more of the applicable conditions specified in Section 4.02
is not then satisfied, and in each such case directing the L/C Issuer not to permit such
extension.

     (iv) Promptly after its delivery of any Letter of Credit or any amendment to a Letter
of Credit to an advising bank with respect thereto or to the beneficiary thereof, the
applicable L/C Issuer will also deliver to Grant Prideco, L.P. or the applicable Designated
UK Borrower and the Administrative Agent a true and complete copy of such Letter of Credit
or amendment.

     (c) Drawings and Reimbursements; Funding of Participations. With respect to Letters
of Credit other than Bank Guaranties and other UK Issued L/Cs in which the Lenders have not
purchased risk participations pursuant to Section 2.03(b)(ii) (but including Supporting
L/Cs and UK Issued L/Cs in which the Lenders have purchased risk participations pursuant to
Section 2.03(b)(ii)):

     (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a
drawing under such Letter of Credit, the applicable L/C Issuer shall notify Grant Prideco,
L.P. or the applicable Designated UK Borrower, as applicable, and the

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Administrative Agent thereof. In the case of a Letter of Credit denominated in an
Alternative Currency, Grant Prideco, L.P. or the applicable Designated UK Borrower, as
applicable, shall reimburse the applicable L/C Issuer in such Alternative Currency, unless
(A) such L/C Issuer (at its option) shall have specified in such notice that it will require
reimbursement in Dollars, or (B) in the absence of any such requirement for reimbursement in
Dollars, Grant Prideco, L.P. or the applicable Designated UK Borrower, as applicable, shall
have notified such L/C Issuer promptly following receipt of the notice of drawing that Grant
Prideco, L.P. or the applicable Designated UK Borrower, as applicable, will reimburse such
L/C Issuer in Dollars. In the case of any such reimbursement in Dollars of a drawing under
a Letter of Credit denominated in an Alternative Currency, the applicable L/C Issuer shall
notify Grant Prideco, L.P. or the applicable Designated UK Borrower, as applicable, of the
Dollar Equivalent of the amount of the drawing promptly following the determination thereof.
Not later than 10:00 a.m. on the date of any payment by the applicable L/C Issuer under a
Letter of Credit to be reimbursed in Dollars, or the Applicable Time on the date of any
payment by such L/C Issuer under a Letter of Credit to be reimbursed in an Alternative
Currency (each such date, an “Honor Date”), Grant Prideco, L.P. or the applicable
Designated UK Borrower, as applicable, shall reimburse such L/C Issuer through the
Administrative Agent in an amount equal to the amount of such drawing and in the applicable
currency. If Grant Prideco, L.P. or the applicable Designated UK Borrower, as applicable,
fails to so reimburse the applicable L/C Issuer by such time, the Administrative Agent shall
promptly notify each Lender of the honor date, the amount of the unreimbursed drawing
(expressed in Dollars in the amount of the Dollar Equivalent thereof in the case of a Letter
of Credit denominated in an Alternative Currency) (the “Unreimbursed Amount”), and
the amount of such Lender’s Applicable Percentage thereof. In such event, Grant Prideco,
L.P. or the applicable Designated UK Borrower, as applicable, shall be deemed to have
requested a Committed Borrowing of Base Rate Loans to be disbursed on the Honor Date in an
amount equal to the Unreimbursed Amount, without regard to the minimum and multiples
specified in Section 2.02 for the principal amount of Base Rate Loans, but subject
to the amount of the unutilized portion of the Aggregate Commitments (US) or Aggregate
Combined Commitments, as applicable, and the conditions set forth in Section 4.02
(other than the delivery of a Committed Loan Notice). Any notice given by an L/C Issuer or
the Administrative Agent pursuant to this Section 2.03(c)(i) may be given by
telephone if immediately confirmed in writing; provided that the lack of such an
immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

     (ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i) make
funds available to the Administrative Agent for the account of the applicable L/C Issuer, in
Dollars, at the Administrative Agent’s Office for Dollar-denominated payments in an amount
equal to its Applicable Percentage of the Unreimbursed Amount not later than 12:00 noon on
the Business Day specified in such notice by the Administrative Agent, whereupon, subject to
the provisions of Section 2.03(c)(iii), each Lender that so makes funds available
shall be deemed to have made a Base Rate Committed Loan to Grant Prideco, L.P. or the
applicable Designated UK Borrower, as applicable, in such amount. The Administrative Agent
shall remit the funds so received to the applicable L/C Issuer in Dollars.

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     (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Committed Borrowing of Base Rate Loans because the conditions set forth in Section
4.02 cannot be satisfied or for any other reason, Grant Prideco, L.P. or the applicable
Designated UK Borrower, as applicable, shall be deemed to have incurred from the applicable
L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so
refinanced, which L/C Borrowing shall be due and payable on demand (together with interest)
and shall bear interest at the Default Rate. In such event, each Lender’s payment to the
Administrative Agent for the account of the applicable L/C Issuer pursuant to Section
2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C
Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.03.

     (iv) Until each Lender funds its Committed Loan or L/C Advance pursuant to this
Section 2.03(c) to reimburse the applicable L/C Issuer for any amount drawn under
any Letter of Credit, interest in respect of such Lender’s Applicable Percentage of such
amount shall be solely for the account of such L/C Issuer.

     (v) Each Lender’s obligation to make Committed Loans or L/C Advances to reimburse the
applicable L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this
Section 2.03(c), shall be absolute and unconditional and shall not be affected by
any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right
which such Lender may have against such L/C Issuer, Grant Prideco, L.P., any Designated UK
Borrower, any Subsidiary or any other Person for any reason whatsoever; (B) the occurrence
or continuance of a Default or Event of Default, or (C) any other occurrence, event or
condition, whether or not similar to any of the foregoing; provided,
however, that each Lender’s obligation to make Committed Loans pursuant to this
Section 2.03(c) is subject to the conditions set forth in Section 4.02
(other than delivery by Grant Prideco, L.P. or the applicable Designated UK Borrower, as
applicable, of a Committed Loan Notice). No such making of an L/C Advance shall relieve or
otherwise impair the obligation of Grant Prideco, L.P. or the applicable Designated UK
Borrower, as applicable, to reimburse the applicable L/C Issuer for the amount of any
payment made by such L/C Issuer under any Letter of Credit, together with interest as
provided herein.

     (vi) If any Lender fails to make available to the Administrative Agent for the account
of the applicable L/C Issuer any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.03(c) by the time specified in Section
2.03(c)(ii), such L/C Issuer shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment is
immediately available to such L/C Issuer at a rate per annum equal to the applicable
Overnight Rate from time to time in effect. A certificate of the applicable L/C Issuer
submitted to any Lender (through the Administrative Agent) with respect to any amounts owing
under this clause (vi) shall be presumed correct absent manifest error.

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     (vii) The foregoing provisions are not applicable to Bank Guaranties or other UK Issued
L/Cs in which the Lenders have not purchased risk participations pursuant to Section
2.03(b)(ii), which are subject instead to Section 2.03(m).

     (d) Repayment of Participations.

     (i) At any time after the applicable L/C Issuer has made a payment under any Letter of
Credit and has received from any Lender such Lender’s L/C Advance in respect of such payment
in accordance with Section 2.03(c), if the Administrative Agent receives for the
account of such L/C Issuer any payment in respect of the related Unreimbursed Amount or
interest thereon (whether directly from Grant Prideco, L.P. or the applicable Designated UK
Borrower, as applicable, or otherwise, including proceeds of Cash Collateral applied thereto
by the Administrative Agent), the Administrative Agent will distribute to such Lender its
Applicable Percentage thereof (appropriately adjusted, in the case of interest payments, to
reflect the period of time during which such Lender’s L/C Advance was outstanding) in
Dollars and in the same funds as those received by the Administrative Agent.

     (ii) If any payment received by the Administrative Agent for the account of the
applicable L/C Issuer pursuant to Section 2.03(c)(i) is required to be returned
under any of the circumstances described in Section 10.05 (including pursuant to any
settlement entered into by such L/C Issuer in its discretion), each Lender shall pay to the
Administrative Agent for the account of such L/C Issuer its Applicable Percentage thereof on
demand of the Administrative Agent, plus interest thereon from the date of such demand to
the date such amount is returned by such Lender, at a rate per annum equal to the applicable
Overnight Rate from time to time in effect. The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination of this
Agreement.

     (e) Obligations Absolute. The obligation of Grant Prideco, L.P. or the applicable
Designated UK Borrower, as applicable, to reimburse the applicable L/C Issuer for each drawing
under each Letter of Credit issued by such L/C Issuer and to repay each L/C Borrowing shall be
absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of
this Agreement under all circumstances, including the following:

     (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other Loan Document;

     (ii) the existence of any claim, counterclaim, setoff, defense or other right that the
Company or any Subsidiary may have at any time against any beneficiary or any transferee of
such Letter of Credit (or any Person for whom any such beneficiary or any such transferee
may be acting), any L/C Issuer or any other Person, whether in connection with this
Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement
or instrument relating thereto, or any unrelated transaction;

     (iii) any draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect or

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any statement therein being untrue or inaccurate in any respect; or any loss or delay
in the transmission or otherwise of any document required in order to make a drawing under
such Letter of Credit;

     (iv) any payment by such L/C Issuer under such Letter of Credit against presentation of
a draft or certificate that does not strictly comply with the terms of such Letter of
Credit; or any payment made by such L/C Issuer under such Letter of Credit to any Person
purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of such Letter of Credit, including any arising in connection with any
proceeding under any Debtor Relief Law;

     (v) any adverse change in the relevant exchange rates or in the availability of the
relevant Alternative Currency to the Company or any Subsidiary or in the relevant currency
markets generally; or

     (vi) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute a defense
available to, or a discharge of, the Company or any Subsidiary.

     Grant Prideco, L.P. or the applicable Designated UK Borrower, as applicable, shall promptly
examine a copy of each Letter of Credit and each amendment thereto that is delivered to it and, in
the event of any claim of noncompliance with Grant Prideco, L.P.’s or the applicable Designated UK
Borrower’s, as applicable, instructions or other irregularity, Grant Prideco, L.P. or the
applicable Designated UK Borrower, as applicable, will promptly notify the applicable L/C Issuer.
Grant Prideco, L.P. or the applicable Designated UK Borrower, as applicable, shall be conclusively
deemed to have waived any such claim against the applicable L/C Issuer and its correspondents
unless such notice is given as aforesaid.

     (f) Role of L/C Issuer. Each Lender, Grant Prideco, L.P., each Designated UK Borrower
and the Company agree that, in paying any drawing under a Letter of Credit, the applicable L/C
Issuer shall not have any responsibility to obtain any document (other than any sight draft,
certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire
as to the validity or accuracy of any such document or the authority of the Person executing or
delivering any such document. None of any L/C Issuer, the Administrative Agent, any of their
respective Related Parties nor any correspondent, participant or assignee of any L/C Issuer shall
be liable to any Lender for (i) any action taken or omitted in connection herewith at the request
or with the approval of the Lenders or the Required Lenders, as applicable; (ii) any action taken
or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related to any Letter of
Credit or Issuer Document. The Company, each Designated UK Borrower and Grant Prideco, L.P.,
hereby assume all risks of the acts or omissions of any beneficiary or transferee with respect to
its use of any Letter of Credit; provided, however, that this assumption is not
intended to, and shall not, preclude the Company’s, any Designated UK Borrower’s or Grant Prideco
L.P’s pursuing such rights and remedies as it may have against the beneficiary or transferee at law
or under any other agreement. None of any L/C Issuer, the Administrative Agent, any of their
respective Related Parties nor any correspondent, participant or assignee of

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any L/C Issuer shall be liable or responsible for any of the matters described in clauses (i)
through (v) of Section 2.03(e); provided, however, that anything in such
clauses to the contrary notwithstanding, Grant Prideco, L.P. or the applicable Designated UK
Borrower, as applicable, may have a claim against the applicable L/C Issuer, and such L/C Issuer
may be liable to Grant Prideco, L.P. or the applicable Designated UK Borrower, as applicable, to
the extent, but only to the extent, of any direct, as opposed to consequential or exemplary,
damages suffered by Grant Prideco, L.P. or the applicable Designated UK Borrower, as applicable,
which Grant Prideco, L.P. or the applicable Designated UK Borrower, as applicable, proves were
caused by such L/C Issuer’s willful misconduct or gross negligence or such L/C Issuer’s willful
failure to pay under any Letter of Credit issued by it after the presentation to it by the
beneficiary of any certificates and/or other documents required by the Letter of Credit which
comply strictly with the terms and conditions of a Letter of Credit. In furtherance and not in
limitation of the foregoing, an L/C Issuer may accept documents that appear on their face to be in
order, without responsibility for further investigation, regardless of any notice or information to
the contrary, and an L/C Issuer shall not be responsible for the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason.

     (g) Cash Collateral. (i) Upon the request of the Administrative Agent, (A) if an L/C
Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing
has resulted in an L/C Borrowing or the advance of a UK Swing Line Loan to refinance the
Unreimbursed Amount of such drawing, as applicable, or (B) if, as of the Letter of Credit
Expiration Date, any L/C Obligation for any reason remains outstanding, the Company and, in the
case of any such L/C Obligations with respect to UK Issued L/Cs, the applicable Designated UK
Borrowers shall, in each case, immediately Cash Collateralize the then Outstanding Amount of all
L/C Obligations.

     (ii) In addition, if the Administrative Agent notifies the Company and, in the case of
any such L/C Obligations with respect to UK Issued L/Cs, the applicable Designated UK
Borrowers at any time that the Outstanding Amount of all L/C Obligations at such time
exceeds 105% of the Letter of Credit Sublimit then in effect or the Outstanding Amount of
all L/C Obligations with respect to UK Issued L/Cs at such time exceeds 105% of the UK
Sublimit then in effect, then, within two Business Days after receipt of such notice, the
Company and/or the Designated UK Borrowers, as applicable, shall Cash Collateralize the
applicable L/C Obligations in an amount equal to the amount by which the Outstanding Amount
of all L/C Obligations exceeds the Letter of Credit Sublimit or the amount by which the
Outstanding Amount of all L/C Obligations with respect to UK Issued L/Cs at such time
exceeds 105% of the UK Sublimit then in effect.

     (iii) The Administrative Agent may, at any time and from time to time after the initial
deposit of Cash Collateral, request that additional Cash Collateral be provided in order to
protect against the results of exchange rate fluctuations.

     (iv) Sections 2.05 and 8.02(c) set forth certain additional
requirements to deliver Cash Collateral hereunder. For purposes of this Section
2.03, Section 2.05 and

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Section 8.02(c), “Cash Collateralize” means to pledge and deposit with
or deliver to the Administrative Agent, for the benefit of the applicable L/C Issuer(s) and
the Lenders, as collateral for the L/C Obligations, cash or deposit account balances
pursuant to documentation in form and substance satisfactory to the Administrative Agent and
the applicable L/C Issuer(s) (which documents are hereby consented to by the Lenders).
Derivatives of such term have corresponding meanings. Cash Collateral shall be maintained
in blocked, non-interest bearing deposit accounts at Wells Fargo.

     (h) Applicability of ISP and UCP. Unless otherwise expressly agreed by the applicable
L/C Issuer and Grant Prideco, L.P. or the applicable Designated UK Borrower when a Letter of Credit
is issued (including any such agreement applicable to an Existing Letter of Credit), (i) the rules
of the ISP shall apply to each standby Letter of Credit, and (ii) the rules of the Uniform Customs
and Practice for Documentary Credits, as most recently published by the International Chamber of
Commerce at the time of issuance shall apply to each commercial Letter of Credit.

     (i) Letter of Credit Fees. Grant Prideco, L.P. or the applicable Designated UK
Borrower shall pay to the Administrative Agent for the account of each Lender in accordance with
its Applicable Percentage, in Dollars, a Letter of Credit fee (the “Letter of Credit Fee”)
(i) for each commercial Letter of Credit equal to the Applicable Rate for Eurocurrency Rate Loans
times the Dollar Equivalent of the daily amount available to be drawn under such Letter of
Credit and (ii) for each standby Letter of Credit equal to the Applicable Rate for Eurocurrency
Rate Loans times the Dollar Equivalent of the daily amount available to be drawn under such
Letter of Credit; provided that, except to the extent the Lenders have purchased risk
participations in UK Issued L/Cs, all Letter of Credit Fees with respect to the UK Issued L/Cs
shall be paid directly to, and shall be solely for the account of, the UK Swing Line Lender. For
purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount
of such Letter of Credit shall be determined in accordance with Section 1.08. Letter of
Credit Fees shall be (i) computed on a quarterly basis in arrears and (ii) due and payable on or
before the later of (y) the tenth Business Day after the end of each March, June, September and
December and (z) five Business Days after receipt by the applicable Borrower of an invoice
therefor, commencing with the first such date to occur after the issuance of such Letter of Credit,
on the Letter of Credit Expiration Date and thereafter on demand. If there is any change in the
Applicable Rate during any quarter, the daily amount available to be drawn under each Letter of
Credit shall be computed and multiplied by the Applicable Rate separately for each period during
such quarter that such Applicable Rate was in effect. Notwithstanding anything to the contrary
contained herein, upon the request of the Required Lenders, while any Event of Default exists, all
Letter of Credit Fees shall accrue at the Default Rate.

     (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. Grant
Prideco, L.P. or, in the case of any UK Issued L/C, the applicable Designated UK Borrower, shall
pay directly to the applicable L/C Issuer for its own account, in Dollars, a fronting fee (i) with
respect to each commercial Letter of Credit issued by such L/C Issuer, at a rate per annum equal to
0.125%, computed at issuance on the Dollar Equivalent of the face amount of such Letter of Credit,
with a minimum fee of $150, (ii) with respect to any amendment of a commercial Letter of Credit
increasing the amount of such Letter of Credit, at a rate separately agreed between Grant Prideco,
L.P. or, in the case of any UK Issued L/C, the

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applicable Designated UK Borrower, and the L/C Issuer, computed on the Dollar Equivalent of
the amount of such increase, (iii) with respect to each standby Letter of Credit issued by such L/C
Issuer, at a rate per annum equal to 0.125%, computed on the Dollar Equivalent of the daily amount
available to be drawn under such Letter of Credit on a quarterly basis in arrears, with a minimum
fee of $500, and (iv) with respect to each Bank Guaranty issued by such L/C Issuer, at a rate per
annum equal to 0.250%, computed on the Dollar Equivalent of the daily amount available to be drawn
under such Bank Guaranty on a quarterly basis in arrears, with a minimum fee of $500. Such
fronting fee with respect to standby Letters of Credit and Bank Guaranties shall be due and payable
on or before the later of (y) the tenth Business Day after the end of each March, June, September
and December and (z) five Business Days after receipt by the applicable Borrower of an invoice
therefor in respect of the most recently-ended quarterly period (or portion thereof, in the case of
the first payment), commencing with the first such date to occur after the issuance of such Letter
of Credit, on the Letter of Credit Expiration Date and thereafter on demand. Such fronting fee
with respect to commercial Letters of Credit shall be due and payable on or before the later of (y)
the tenth Business Day after the end of the applicable March, June, September or December and (z)
five Business Days after receipt by the applicable Borrower of an invoice therefor following the
date on which such Letter of Credit was issued or amended, as applicable. For purposes of
computing the daily amount available to be drawn under any Letter of Credit, the amount of such
Letter of Credit shall be determined in accordance with Section 1.08. In addition, Grant
Prideco, L.P. or, in the case of any UK Issued L/C, the applicable Designated UK Borrower, shall
pay directly to the applicable L/C Issuer for its own account, in Dollars, the customary issuance,
presentation, amendment and other processing fees, and other standard costs and charges, of such
L/C Issuer relating to letters of credit as from time to time in effect. Such customary fees and
standard costs and charges are due and payable on demand and are nonrefundable.

     (k) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

     (l) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of
Credit issued or outstanding hereunder is in support of any obligations of, or is for the account
of, the Company or a Subsidiary of the Company, Grant Prideco, L.P. shall be obligated to reimburse
the applicable L/C Issuer hereunder for any and all drawings under such Letter of Credit (other
than UK Issued L/Cs). Each of Grant Prideco, L.P. and the Company hereby acknowledges that the
issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of Grant
Prideco, L.P. and/or the Company, as applicable, and that each such Person’s business derives
substantial benefits from the businesses of such Subsidiaries.

     (m) Bank Guaranties; UK Issued L/Cs.

     (i) HSBC’s agreement to issue Bank Guaranties hereunder is conditioned upon and made in
reliance upon the agreements of the other L/C Issuers set forth in this Section 2.03
to issue Supporting L/Cs as provided herein. Upon the occurrence of a Default or Event of
Default, HSBC may request that an L/C Issuer issue Letters of Credit (other than Bank
Guaranties) supporting each Designated UK Borrower’s obligations in respect of each Bank
Guaranty then outstanding for the entire remaining term thereof (each such Letter of Credit,
a “Supporting L/C”) and, in the case of a Bank Guaranty

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without an expiry date such Supporting L/C shall be an Auto-Extension Letter of Credit.
Any such Supporting L/C shall remain in place for the duration of the term of the
corresponding Bank Guaranty, regardless of whether the Default or Event of Default relating
to its issuance is subsequently cured or waived. Any such request shall be delivered to the
applicable L/C Issuer (with a copy to the Administrative Agent), and shall specify the
information required by Section 2.03(b)(i) with respect to an initial request for a
Letter of Credit. Each L/C Issuer’s obligation to issue Supporting L/Cs hereunder shall be
absolute and unconditional and shall not be affected by any circumstance, including (1) any
setoff, counterclaim, recoupment, defense or other right which such L/C Issuer may have
against HSBC, the Company or any other Person for any reason whatsoever, (2) the occurrence
or continuance of a Default or Event of Default, or (3) any other occurrence, event or
condition, whether or not similar to any of the foregoing.

     (ii) Any amendment of a Bank Guaranty for which a Supporting L/C has been issued shall
be subject to the simultaneous amendment of such Supporting L/C as deemed necessary by HSBC
to reflect any increase in amount, extension of term, or other modifications of such Bank
Guaranty.

     (iii) Upon receipt from the beneficiary of any Bank Guaranty or other UK Issued L/C of
any notice of a drawing under such Bank Guaranty or other UK Issued L/C, HSBC shall notify
the applicable Designated UK Borrower and the Administrative Agent thereof. In the case of
a Bank Guaranty or other UK Issued L/C denominated in an Alternative Currency, the
applicable Designated UK Borrower shall reimburse HSBC in such Alternative Currency, unless
(A) HSBC (at its option) shall have specified in such notice that it will require
reimbursement in Dollars, or (B) in the absence of any such requirement for reimbursement in
Dollars, the applicable Designated UK Borrower shall have notified HSBC promptly following
receipt of the notice of drawing that the applicable Designated UK Borrower will reimburse
HSBC in Dollars. In the case of any such reimbursement in Dollars of a drawing under a Bank
Guaranty or other UK Issued L/C denominated in an Alternative Currency, HSBC shall notify
the applicable Designated UK Borrower of the Dollar Equivalent of the amount of the drawing
promptly following the determination thereof. Not later than 10:00 a.m. (London time) on
the date of any payment by HSBC under a Bank Guaranty or other UK Issued L/C to be
reimbursed in Dollars, or the Applicable Time on the date of any payment by HSBC under a
Bank Guaranty or other UK Issued L/C to be reimbursed in an Alternative Currency (each such
date, an “Honor Date”), the applicable Designated UK Borrower shall reimburse HSBC
in an amount equal to the amount of such drawing and in the applicable currency, which
reimbursement may be made by means of a UK Swing Line Loan. In the case of a Bank Guaranty
not supported by a Supporting L/C or other UK Issued L/C in which the Lenders have not
purchased a risk participation, if the applicable Designated UK Borrower fails to so
reimburse HSBC by the time required above, the applicable Designated UK Borrower shall be
deemed to have requested, and the UK Swing Line Lender shall make, a UK Swing Line Loan to
be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard
to the minimum and multiples specified in Section 2.04(b) for the principal amount
of UK Swing Line Loans and without regard to the conditions set forth in Section
4.02, but subject to the

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amount of the unutilized portion of the Aggregate Combined Commitments and the UK
Sublimit. In the case of a Bank Guaranty or other UK Issued L/C denominated in Dollars,
such Loan shall be made in Dollars, and in the case of a Bank Guaranty or other UK Issued
L/C denominated in an Alternative Currency, such Loan shall be made in Dollars or such
Alternative Currency, as elected by the UK Swing Line Lender. Any notice given by HSBC or
the Administrative Agent pursuant to this Section 2.03(m)(iii) may be given by
telephone if immediately confirmed in writing; provided that the lack of such an
immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

     2.04 Swing Line Loans.

     (a) US Swing Line Loans.

     (i) The US Swing Line. Subject to the terms and conditions set forth herein,
the US Swing Line Lender agrees, in reliance upon the agreements of the other Lenders set
forth in this Section 2.04, to make loans in Dollars (each such loan, a “US
Swing Line Loan”) to Grant Prideco, L.P. from time to time on any Business Day during
the Availability Period in an aggregate amount not to exceed at any time outstanding the
amount of the US Swing Line Sublimit, notwithstanding the fact that such US Swing Line
Loans, when aggregated with the Applicable Percentage (US) of the Outstanding Amount of
Committed Loans and L/C Obligations of the Lender acting as US Swing Line Lender, may exceed
the amount of such Lender’s Commitment; provided, however, that after giving
effect to any US Swing Line Loan, (A) the Total Outstandings shall not exceed the Aggregate
Combined Commitments, (B) the Total Outstandings minus the aggregate Outstanding
Amount of all Designated UK Borrower Obligations shall not exceed the Aggregate Commitments
(US), and (C) the aggregate Outstanding Amount of the Committed Loans of any Lender,
plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C
Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of
all Swing Line Loans shall not exceed such Lender’s Commitment, and provided,
further, that (A) Grant Prideco, L.P. shall not use the proceeds of any Swing Line
Loan to refinance any outstanding Swing Line Loan, and (B) the availability of the Aggregate
Commitments (US) at any time for the making of Loans and the issuance of Letters of Credit
shall be reduced by the amount of the Alternative Currency Reserve (if any). Within the
foregoing limits, and subject to the other terms and conditions hereof, Grant Prideco, L.P.
may borrow under this Section 2.04(a), prepay under Section 2.05, and
reborrow under this Section 2.04(a). Each US Swing Line Loan shall be a Base Rate
Loan. Immediately upon the making of a US Swing Line Loan, each Lender shall be deemed to,
and hereby irrevocably and unconditionally agrees to, purchase from the US Swing Line Lender
a risk participation in such US Swing Line Loan in an amount equal to the product of such
Lender’s Applicable Percentage times the amount of such US Swing Line Loan.

     (ii) Borrowing Procedures. Each US Swing Line Borrowing shall be made upon
Grant Prideco, L.P.’s irrevocable notice to the US Swing Line Lender and the Administrative
Agent, which may be given by telephone. Each such notice must be received by the US Swing
Line Lender and the Administrative Agent not later than 1:00

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p.m. on the requested borrowing date, and shall specify (A) the amount to be borrowed,
which shall be a minimum of $500,000, and (B) the requested borrowing date, which shall be a
Business Day. Each such telephonic notice must be confirmed promptly by delivery to the US
Swing Line Lender and the Administrative Agent of a written US Swing Line Loan Notice,
appropriately completed and signed by a Responsible Officer of Grant Prideco, L.P. Promptly
after receipt by the US Swing Line Lender of any telephonic US Swing Line Loan Notice, the
US Swing Line Lender will confirm with the Administrative Agent (by telephone or in writing)
that the Administrative Agent has also received such US Swing Line Loan Notice and, if not,
the US Swing Line Lender will notify the Administrative Agent (by telephone or in writing)
of the contents thereof. Unless the US Swing Line Lender has received notice (by telephone
or in writing) from the Administrative Agent (including at the request of any Lender) prior
to 2:00 p.m. on the date of the proposed US Swing Line Borrowing (1) directing the US Swing
Line Lender not to make such US Swing Line Loan as a result of the limitations set forth in
the provisos to the first sentence of Section 2.04(a)(i), or (2) that one or more of
the applicable conditions specified in Article IV is not then satisfied, then,
subject to the terms and conditions hereof, the US Swing Line Lender will, not later than
3:00 p.m. on the borrowing date specified in such US Swing Line Loan Notice, make the amount
of its US Swing Line Loan available to Grant Prideco, L.P. by crediting the Loan Funding
Account in Same Day Funds.

     (iii) Refinancing of US Swing Line Loans.

     (A) The US Swing Line Lender at any time in its sole and absolute discretion
may request, on behalf of Grant Prideco, L.P. (which hereby irrevocably authorizes
the US Swing Line Lender to so request on its behalf), that each Lender make a Base
Rate Committed Loan in an amount equal to such Lender’s Applicable Percentage of the
amount of US Swing Line Loans then outstanding. Such request shall be made in
writing (which written request shall be deemed to be a Committed Loan Notice for
purposes hereof) and in accordance with the requirements of Section 2.02,
without regard to the minimum and multiples specified therein for the principal
amount of Base Rate Loans, but subject to the amount of the unutilized portion of
the Aggregate Commitments (US) or Aggregate Combined Commitments, as applicable, and
the conditions set forth in Section 4.02. The US Swing Line Lender shall
furnish Grant Prideco, L.P. with a copy of the applicable Committed Loan Notice
promptly after delivering such notice to the Administrative Agent. Each Lender
shall make an amount equal to its Applicable Percentage of the amount specified in
such Committed Loan Notice available to the Administrative Agent in Same Day Funds
for the account of the US Swing Line Lender at the Administrative Agent’s Office for
Dollar-denominated payments not later than 1:00 p.m. on the day specified in such
Committed Loan Notice, whereupon, subject to Section 2.04(a)(iii)(B), each
Lender that so makes funds available shall be deemed to have made a Base Rate
Committed Loan to Grant Prideco, L.P. in such amount. The Administrative Agent
shall remit the funds so received to the US Swing Line Lender.

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     (B) If for any reason any US Swing Line Loan cannot be refinanced by such a
Committed Borrowing in accordance with Section 2.04(a)(iii)(A), the request
for Base Rate Committed Loans submitted by the US Swing Line Lender as set forth
herein shall be deemed to be a request by the US Swing Line Lender that each of the
Lenders fund its risk participation in the relevant US Swing Line Loan and each
Lender’s payment to the Administrative Agent for the account of the US Swing Line
Lender pursuant to Section 2.04(a)(iii)(A) shall be deemed payment in
respect of such participation.

     (C) If any Lender fails to make available to the Administrative Agent for the
account of the US Swing Line Lender any amount required to be paid by such Lender
pursuant to the foregoing provisions of this Section 2.04(a)(iii) by the
time specified in Section 2.04(a)(iii)(A), the US Swing Line Lender shall be
entitled to recover from such Lender (acting through the Administrative Agent), on
demand, such amount with interest thereon for the period from the date such payment
is required to the date on which such payment is immediately available to the US
Swing Line Lender at a rate per annum equal to the applicable Overnight Rate from
time to time in effect. A certificate of the US Swing Line Lender submitted to any
Lender (through the Administrative Agent) with respect to any amounts owing under
this clause (C) shall be presumed correct absent manifest error.

     (D) Each Lender’s obligation to make Committed Loans or to purchase and fund
risk participations in US Swing Line Loans pursuant to this Section
2.04(a)(iii) shall be absolute and unconditional and shall not be affected by
any circumstance, including (1) any setoff, counterclaim, recoupment, defense or
other right which such Lender may have against the US Swing Line Lender, Grant
Prideco, L.P., the Company or any other Person for any reason whatsoever, (2) the
occurrence or continuance of a Default or Event of Default, or (3) any other
occurrence, event or condition, whether or not similar to any of the foregoing;
provided, however, that each Lender’s obligation to make Committed
Loans pursuant to this Section 2.04(a)(iii) is subject to the conditions set
forth in Section 4.02. No such funding of risk participations shall relieve
or otherwise impair the obligation of Grant Prideco, L.P. to repay US Swing Line
Loans, together with interest as provided herein.

     (iv) Repayment of Participations.

     (A) At any time after any Lender has purchased and funded a risk participation
in a US Swing Line Loan, if the US Swing Line Lender receives any payment on account
of such US Swing Line Loan, the US Swing Line Lender will distribute to such Lender
its Applicable Percentage of such payment (appropriately adjusted, in the case of
interest payments, to reflect the period of time during which such Lender’s risk
participation was funded) in the same funds as those received by the US Swing Line
Lender.

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     (B) If any payment received by the US Swing Line Lender in respect of principal
or interest on any US Swing Line Loan is required to be returned by the US Swing
Line Lender under any of the circumstances described in Section 10.05
(including pursuant to any settlement entered into by the US Swing Line Lender in
its discretion), each Lender shall pay to the US Swing Line Lender its Applicable
Percentage thereof on demand of the Administrative Agent, plus interest thereon from
the date of such demand to the date such amount is returned, at a rate per annum
equal to the applicable Overnight Rate. The Administrative Agent will make such
demand upon the request of the US Swing Line Lender. The obligations of the Lenders
under this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

     (v) Interest for Account of US Swing Line Lender. The US Swing Line Lender
shall be responsible for invoicing Grant Prideco, L.P. for interest on the US Swing Line
Loans. Until each Lender funds its Base Rate Committed Loan or risk participation pursuant
to this Section 2.04(a) to refinance such Lender’s Applicable Percentage of any US
Swing Line Loan, interest in respect of such Applicable Percentage shall be solely for the
account of the US Swing Line Lender.

     (vi) Payments Directly to US Swing Line Lender. Grant Prideco, L.P. shall make
all payments of principal and interest in respect of the US Swing Line Loans directly to the
US Swing Line Lender.

     (b) UK Swing Line Loans.

     (i) The UK Swing Line. Subject to the terms and conditions set forth herein,
the UK Swing Line Lender agrees, in reliance upon the agreements of the other Lenders set
forth in this Section 2.04, to make loans in Dollars or any Alternative Currency, as
indicated in the applicable UK Swing Line Loan Notice (each such loan, a “UK Swing Line
Loan”) to the Designated UK Borrowers from time to time on any Business Day during the
Availability Period; provided, however, that after giving effect to any UK
Swing Line Loan, (A) the Total Outstandings shall not exceed the Aggregate Combined
Commitments, (B) the Total Outstandings minus the aggregate Outstanding Amount of
all Designated UK Borrower Obligations shall not exceed the Aggregate Commitments (US), (C)
the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such
Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations,
plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line
Loans shall not exceed such Lender’s Commitment, (D) the aggregate Outstanding Amount of all
Designated UK Borrower Obligations shall not exceed the UK Sublimit, and (E) the aggregate
Outstanding Amount of all Loans and L/C Obligations denominated in Alternative Currencies
shall not exceed the Alternative Currency Sublimit; and provided, further,
that (A) the Designated UK Borrowers shall not use the proceeds of any Swing Line Loan to
refinance any outstanding Swing Line Loan; and (B) the availability of the UK Sublimit at
any time for the making of Loans and the issuance of Letters of Credit shall be reduced by
the amount of the Alternative Currency Reserve (if any). Within the foregoing limits, and
subject to the other terms and conditions hereof, the Designated UK Borrowers may borrow
under this

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Section 2.04(b), prepay under Section 2.05, and reborrow under this
Section 2.04(b). UK Swing Line Loans may be Base Rate Loans or Eurocurrency Rate
Loans, as further provided herein.

     (ii) Borrowing Procedures. Each UK Swing Line Borrowing and each continuation
of UK Swing Line Loans that are Eurocurrency Rate Loans shall be made upon the applicable
Designated UK Borrower’s irrevocable notice to the UK Swing Line Lender and the
Administrative Agent. Each such notice must be received by the UK Swing Line Lender and the
Administrative Agent not later than 10:00 a.m. (London time) (A) three Business Days prior
to the requested date of any borrowing of or continuation of Eurocurrency Rate Loans and (B)
on the requested date of any borrowing of Base Rate Loans. Each notice shall be delivered
(including by telecopier) to the UK Swing Line Lender and the Administrative Agent and shall
consist of a written UK Swing Line Loan Notice, appropriately completed and signed by a
Responsible Officer of the applicable Designated UK Borrower. Each borrowing of or
continuation of Swing Line Loans shall be in a principal amount of $500,000 or a whole
multiple of $100,000 in excess thereof. Each UK Swing Line Loan Notice shall specify (i)
whether the applicable Designated UK Borrower is requesting a borrowing or a continuation of
UK Swing Line Loans, (ii) the requested date of the borrowing or continuation, as the case
may be (which shall be a Business Day), (iii) the principal amount of UK Swing Line Loans to
be borrowed or continued, (iv) the Type of UK Swing Line Loans to be borrowed or continued,
(v) if applicable, the duration of the Interest Period with respect thereto, and (vi) the
currency of the UK Swing Line Loans to be borrowed or continued; provided that all
Base Rate Loans shall be denominated in Dollars. If such Designated UK Borrower fails to
specify a currency in a UK Swing Line Loan Notice requesting a borrowing, then the UK Swing
Line Loans so requested shall be made in Dollars. If such Designated UK Borrower fails to
specify a Type of Loan in a UK Swing Line Loan Notice, such Loans shall be made as Base Rate
Loans, in the case of Loans requested to be made in Dollars, and Eurocurrency Loans, in the
case of Loans requested to be made an Alternative Currency. If such Designated UK Borrower
fails to give a timely notice requesting a continuation, then the applicable UK Swing Line
Loans shall be continued as Eurocurrency Rate Loans in their original currency with an
Interest Period of one month. If such Designated UK Borrower fails to specify an Interest
Period in a UK Swing Line Loan Notice requesting (or deemed to request) a Eurocurrency Rate
Loan, it will be deemed to have specified an Interest Period of one month. No UK Swing Line
Loan may be continued as a UK Swing Line Loan denominated in a different currency, but
instead must be prepaid in the original currency of such UK Swing Line Loan and reborrowed
in the applicable different currency. Promptly after receipt by the UK Swing Line Lender of
any UK Swing Line Loan Notice, the UK Swing Line Lender will confirm with the Administrative
Agent (in writing, including by telecopier) that the Administrative Agent has also received
such UK Swing Line Loan Notice and, if not, the UK Swing Line Lender will notify the
Administrative Agent (in writing, including by telecopier) of the contents thereof. Unless
the UK Swing Line Lender has received notice (in writing, including by telecopier) from the
Administrative Agent (including at the request of any Lender) prior to (A) 10:00 a.m. London
time on the date of the proposed UK Swing Line Borrowing in the case of a Eurocurrency Rate
Loan and (B) 2:00 p.m. London time on the date of the proposed UK Swing Line Borrowing in
the case of a Base Rate Loan (1) directing the UK Swing Line

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Lender not to make such UK Swing Line Loan as a result of the limitations set forth in
the provisos to the first sentence of Section 2.04(b)(i), or (2) in the case of any
proposed UK Swing Line Borrowing other than a UK Swing Line Borrowing to be disbursed
pursuant to Section 2.03(m)(iii) in an amount equal to the Unreimbursed Amount of a
Bank Guaranty, that one or more of the applicable conditions specified in Article IV
is not then satisfied, then, subject to the terms and conditions hereof, the UK Swing Line
Lender will, not later than 4:00 p.m. London time on the borrowing date specified in such UK
Swing Line Loan Notice, make the amount of such UK Swing Line Loan available to the
applicable Designated UK Borrower by crediting the applicable Loan Funding Account in Same
Day Funds.

     (iii) Except as otherwise provided herein, a UK Swing Line Loan that is a Eurocurrency
Rate Loan may be continued only on the last day of an Interest Period for such UK Swing Line
Loan. During the existence of a Default, no UK Swing Line Loans may be requested or
continued as Eurocurrency Rate Loans (whether in Dollars or any Alternative Currency)
without the consent of the UK Swing Line Lender, and the UK Swing Line Lender may demand
that any or all of the then outstanding UK Swing Line Loans denominated in an Alternative
Currency (other than Sterling) be prepaid, or redenominated into Dollars in the amount of
the Dollar Equivalent thereof, on the last day of the then current Interest Period with
respect thereto. The UK Swing Line Lender shall promptly notify the Company and the
Administrative Agent of the interest rate applicable to any Interest Period for UK Swing
Line Loans that are Eurocurrency Rate Loans upon determination of such interest rate. At
any time that any UK Swing Line Loans that are Base Rate Loans are outstanding, the UK Swing
Line Lender shall notify the Company and the Administrative Agent of any change in the rate
utilized in determining the Base Rate promptly following any such change. After giving
effect to all UK Swing Line Loans and all continuations of UK Swing Line Loans, there shall
not be more than seven Interest Periods in effect with respect to UK Swing Line Loans.

     (iv) Refinancing of UK Swing Line Loans.

     (A) Upon the occurrence of a Default or Event of Default, the UK Swing Line
Lender may request, on behalf of each Designated UK Borrower (each of which hereby
irrevocably authorizes the UK Swing Line Lender to so request on its behalf), that
each Lender make a Committed Loan in an amount equal to such Lender’s Applicable
Percentage of the amount of each UK Swing Line Loan then outstanding to such
Designated UK Borrower. Committed Loans made pursuant to such request shall be made
in the applicable currencies in which the UK Swing Line Loans to be refinanced are
denominated, and shall be Base Rate Loans, in the case of UK Swing Line Loans
denominated in Dollars, and Eurocurrency Rate Loans with Interest Periods of one
month, in the case of UK Swing Line Loans denominated in an Alternative Currency.
Such request shall be made in writing (which written request shall be deemed to be a
Committed Loan Notice for purposes hereof) and in accordance with the requirements
of Section 2.02, without regard to the minimum and multiples specified
therein for the principal amount of Base Rate Loans, but subject to the amount of
the unutilized portion of the Aggregate Combined Commitments and the UK

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Sublimit. The UK Swing Line Lender shall furnish each Designated UK Borrower
with a copy of the applicable Committed Loan Notice promptly after delivering such
notice to the Administrative Agent. Each Lender shall make an amount equal to its
Applicable Percentage of the amount specified in such Committed Loan Notice
available to the Administrative Agent in the same applicable currencies as the Swing
Line Loan being refinanced in Same Day Funds for the account of the UK Swing Line
Lender at the Administrative Agent’s Office for the applicable currencies not later
than the Applicable Time specified by the Administrative Agent on the day specified
in such Committed Loan Notice, whereupon, subject to Section 2.04(b)(iv)(B),
each Lender that so makes funds available shall be deemed to have made a Base Rate
Committed Loan, in the case of a refinancing of a UK Swingline Loan denominated in
Dollars, or a Eurocurrency Rate Committed Loan, in the case of a refinancing of a UK
Swingline Loan denominated in an Alternative Currency, to each applicable Designated
UK Borrower in such amount and such currency. The Administrative Agent shall remit
the funds so received to the UK Swing Line Lender at the UK Swing Line Lender’s
Office. In the event that a Committed Loan is made pursuant to Section
2.04(b)(iv), the UK Swing Line Lender shall purchase participations in the other
Committed Loans of the other Lenders in an aggregate principal amount equal to the
amount of the UK Swing Line Loans so refinanced (less the UK Swing Line Lender’s
ratable share of such Committed Loan) as provided in Section 2.02(f). In
the event that the making of any such Committed Loan would cause the Total
Outstandings minus the aggregate Outstanding Amount of all Loans and L/C
Obligations (including UK Swing Line Loans and UK Issued L/Cs) of the Designated UK
Borrowers to exceed the Aggregate Commitments (US), then each applicable UK Swing
Line Loan shall be deemed readvanced as a Committed Loan of corresponding amount,
and simultaneously with such deemed advance (i) the UK Swing Line Lender shall
purchase (for cash at face value) participations in the Committed Loans of the other
Lenders in an aggregate principal amount equal to the amount of the UK Swing Line
Loans so refinanced (less the UK Swing Line Lender’s ratable share of such Committed
Loan), and (ii) each other Lender shall purchase (for cash at face value)
participations in each such readvanced Committed Loan, so that after giving effect
to such participation each Lender (including the UK Swing Line Lender) holds its
Applicable Percentage of the Outstanding Amount of the Committed Loans.

     (B) If for any reason any UK Swing Line Loan cannot be refinanced by such a
Committed Borrowing in accordance with Section 2.04(b)(iv)(A), the request
for Committed Loans submitted by the UK Swing Line Lender as set forth herein shall
be deemed to be a request by the UK Swing Line Lender that each of the Lenders, and
each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees
to, purchase (for cash at face value) from the UK Swing Line Lender a risk
participation in such UK Swing Line Loan in an amount equal to the product of such
Lender’s Applicable Percentage times the amount of such UK Swing Line Loan,
and each Lender’s payment to the Administrative Agent for the account of the UK
Swing Line Lender pursuant to Section 2.04(b)(iv)(A) shall

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be deemed payment in respect of such participation. In the event that such
participations are purchased, the UK Swing Line Lender shall purchase participations
in Committed Loans of the other Lenders as provided in Section
2.04(b)(iv)(A) as if such UK Swing Line Loan had been refinanced by a Committed
Borrowing. The respective amounts of such participations shall be adjusted upon any
new borrowings or payments as necessary to cause each Lender (including the UK Swing
Line Lender) to hold its Applicable Percentage of the Outstanding Amount of such UK
Swing Line Loan.

     (C) If any Lender fails to make available to the Administrative Agent for the
account of the UK Swing Line Lender any amount required to be paid by such Lender
pursuant to the foregoing provisions of this Section 2.04(b)(iv) by the time
specified in Section 2.04(b)(iv)(A), the UK Swing Line Lender shall be
entitled to recover from such Lender (acting through the Administrative Agent), on
demand, such amount with interest thereon for the period from the date such payment
is required to the date on which such payment is immediately available to the UK
Swing Line Lender at a rate per annum equal to the applicable Overnight Rate from
time to time in effect. A certificate of the UK Swing Line Lender submitted to any
Lender (through the Administrative Agent) with respect to any amounts owing under
this clause (C) shall be presumed correct absent manifest error.

     (D) Each Lender’s obligation to make Committed Loans or to purchase and fund
risk participations in UK Swing Line Loans pursuant to this Section
2.04(b)(iv) shall be absolute and unconditional and shall not be affected by any
circumstance, including (1) any setoff, counterclaim, recoupment, defense or other
right which such Lender may have against the UK Swing Line Lender, the Company or
any other Person for any reason whatsoever, (2) the occurrence or continuance of a
Default or Event of Default, or (3) any other occurrence, event or condition,
whether or not similar to any of the foregoing. No such funding of risk
participations shall relieve or otherwise impair the obligation of the Designated UK
Borrowers to repay UK Swing Line Loans, together with interest as provided herein.

     (v) Repayment of Participations.

     (A) At any time after any Lender has purchased and funded a risk participation
in a UK Swing Line Loan, if the UK Swing Line Lender receives any payment on account
of such UK Swing Line Loan, the UK Swing Line Lender will distribute to such Lender
its Applicable Percentage of such payment (appropriately adjusted, in the case of
interest payments, to reflect the period of time during which such Lender’s risk
participation was funded) in the same funds as those received by the UK Swing Line
Lender.

     (B) If any payment received by the UK Swing Line Lender in respect of principal
or interest on any UK Swing Line Loan is required to be returned by the UK Swing
Line Lender under any of the circumstances described in

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Section 10.05 (including pursuant to any settlement entered into by the
UK Swing Line Lender in its discretion), each Lender shall pay to the UK Swing Line
Lender its Applicable Percentage thereof on demand of the Administrative Agent, plus
interest thereon from the date of such demand to the date such amount is returned,
at a rate per annum equal to the applicable Overnight Rate. The Administrative
Agent will make such demand upon the request of the UK Swing Line Lender. The
obligations of the Lenders under this clause shall survive the payment in full of
the Obligations and the termination of this Agreement.

     (vi) Interest for Account of UK Swing Line Lender. The UK Swing Line Lender
shall be responsible for invoicing the Designated UK Borrowers for interest on the UK Swing
Line Loans. Until each Lender funds its Committed Loan or risk participation pursuant to
this Section 2.04(b) to refinance such Lender’s Applicable Percentage of any UK
Swing Line Loan, interest in respect of such Applicable Percentage shall be solely for the
account of the UK Swing Line Lender.

     (vii) Payments Directly to UK Swing Line Lender. Each Designated UK Borrower
shall make all payments of principal and interest in respect of the UK Swing Line Loans
directly to the UK Swing Line Lender at the UK Swing Line Lender’s Office.

     (viii) UK Swing Line Loans and UK Issued L/Cs. The UK Swing Line Lender and
the other parties hereto agree and acknowledge that (a) if the UK Swing Line Lender elects
to request that the Lenders refinance UK Swing Line Loan or purchase risk participations in
any UK Swing Line Loan or UK Issued Letter of Credit, the UK Swing Line Lender must request
that the Lenders refinance and/or purchase risk participations in all UK Swing Line Loans
then outstanding and purchase risk participations in all UK Issued Letter of Credit then
outstanding (and any such request by the UK Swing Line Lender shall be deemed a request that
the Lenders refinance and/or participate in all such outstanding obligations) and (b) the UK
Swing Line Lender may not request the making of any such refinancing Loans or purchase of
Letter of Credit participations after the date that is 10 Business Days after the earlier of
(a) exercise of remedial rights under the Loan Documents (other than the charging of default
interest), and (b) the institution of proceedings under any Debtor Relief Law by any Loan
Party.

     2.05 Prepayments.

     (a) Voluntary Prepayments.

     (i) Each Borrower may, upon notice from the Company to the Administrative Agent, at any
time or from time to time voluntarily prepay Committed Loans in whole or in part without
premium or penalty; provided that (A) such notice must be received by the
Administrative Agent not later than 10:00 a.m. (1) three Business Days prior to any date of
prepayment of Eurocurrency Rate Loans denominated in Dollars, (2) four Business Days prior
to any date of prepayment of Eurocurrency Rate Loans denominated in Alternative Currencies,
and (3) on the date of prepayment of Base Rate Committed Loans; (B) any prepayment of
Eurocurrency Rate Loans denominated in Dollars shall be in a principal amount of $5,000,000
or a whole multiple of $1,000,000 in excess thereof;

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(C) any prepayment of Eurocurrency Rate Loans denominated in Alternative Currencies
shall be in a minimum principal amount of $5,000,000 or a whole multiple of $1,000,000 in
excess thereof; and (D) any prepayment of Base Rate Committed Loans shall be in a principal
amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each case, if
less, the entire principal amount thereof then outstanding. Each such notice shall specify
the date and amount of such prepayment and the Type(s) of Committed Loans to be prepaid and,
if Eurocurrency Loans are to be prepaid, the Interest Period(s) of such Loans. The
Administrative Agent will promptly notify each Lender of its receipt of each such notice,
and of the amount of such Lender’s Applicable Percentage of such prepayment. If such notice
is given by the Company, the applicable Borrower shall make such prepayment and the payment
amount specified in such notice shall be due and payable on the date specified therein. Any
prepayment of a Eurocurrency Rate Loan shall be accompanied by all accrued interest on the
amount prepaid, together with any additional amounts required pursuant to Section
3.05. Each such prepayment shall be applied to the Committed Loans of the Lenders in
accordance with their respective Applicable Percentages.

     (ii) Grant Prideco, L.P. may, upon notice to the US Swing Line Lender (with a copy to
the Administrative Agent), at any time or from time to time, voluntarily prepay US Swing
Line Loans in whole or in part without premium or penalty; provided that (A) such
notice must be received by the US Swing Line Lender and the Administrative Agent not later
than 1:00 p.m. on the date of the prepayment, and (B) any such prepayment shall be in a
minimum principal amount of $100,000. Each such notice shall specify the date and amount of
such prepayment. If such notice is given by Grant Prideco, L.P., Grant Prideco, L.P. shall
make such prepayment and the payment amount specified in such notice shall be due and
payable on the date specified therein.

     (iii) Each Designated UK Borrower may, upon notice to the UK Swing Line Lender (with a
copy to the Administrative Agent), at any time or from time to time, voluntarily prepay UK
Swing Line Loans in whole or in part without premium or penalty; provided that (A)
such notice must be received by the UK Swing Line Lender and the Administrative Agent not
later than 10:00 a.m. (1) three Business Days prior to any date of prepayment of UK Swing
Line Loans denominated in Dollars or Sterling and (2) four Business Days prior to any date
of prepayment of UK Swing Line Loans denominated in Alternative Currencies (other than
Sterling); (B) any prepayment of UK Swing Line Loans shall be in a minimum principal amount
of $500,000 (or Dollar Equivalent thereof, as applicable) or a whole multiple of $100,000 in
excess thereof or, if less, the entire principal amount thereof then outstanding. Each such
notice shall specify the date and amount of such prepayment and the Interest Period(s) of
the UK Swing Line Loans to be prepaid. If such notice is given by a Designated UK Borrower,
such Designated UK Borrower shall make such prepayment and the payment amount specified in
such notice shall be due and payable on the date specified therein. Any prepayment of a UK
Swing Line Loan, including any prepayment by refinancing thereof with a Committed Borrowing
pursuant to Section 2.04(b)(iv), shall be accompanied by all accrued interest on the
amount prepaid, together with any additional amounts required pursuant to Section
3.05.

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     (b) Mandatory Prepayments; Total Outstandings. If the Administrative Agent notifies
the Company and, if applicable, the Designated UK Borrowers at any time that the Total Outstandings
at such time exceed an amount equal to 105% of the Aggregate Combined Commitments then in effect,
the Total Outstandings minus the aggregate Outstanding Amount of all Designated UK Borrower
Obligations exceed an amount equal to 105% of the Aggregate Commitments (US) then in effect, or the
Outstanding Amount of all Designated UK Borrower Obligations at such time exceed an amount equal to
105% of the UK Sublimit then, within two Business Days after receipt of such notice, the Borrowers
shall prepay Loans and/or the Company shall Cash Collateralize the L/C Obligations in an aggregate
amount sufficient to reduce such Outstanding Amount as of such date of payment to an amount not to
exceed 100% of the Aggregate Combined Commitments, Aggregate Commitments (US), or UK Sublimit, as
applicable, then in effect; provided, however, that, subject to the provisions of
Section 2.03(g)(ii), the Company shall not be required to Cash Collateralize the L/C
Obligations pursuant to this Section 2.05(b) unless after the prepayment in full of the
Loans the Total Outstandings exceed the Aggregate Combined Commitments, Aggregate Commitments (US),
or UK Sublimit, as applicable, then in effect. The Administrative Agent may, at any time and from
time to time after the initial deposit of such Cash Collateral, request that additional Cash
Collateral be provided, in an aggregate amount sufficient to reduce such Outstanding Amount as of
the date of provision of such Cash Collateral to an amount not to exceed 95% of the Aggregate
Combined Commitments, Aggregate Commitments (US), or UK Sublimit, as applicable, then in effect, in
order to protect against the results of further exchange rate fluctuations. All Cash Collateral
provided by the Company pursuant to this subparagraph (d) shall be returned to the Company within
15 days after the end of any period of 30 consecutive days following its provision during which
average Total Outstandings have not exceeded 95% of the Aggregate Combined Commitments, Aggregate
Commitments (US), or UK Sublimit, as applicable.

     (c) Mandatory Prepayments; Alternative Currencies. If the Administrative Agent
notifies the Company at any time that the Outstanding Amount of all Loans denominated in
Alternative Currencies at such time exceeds an amount equal to 105% of the Alternative Currency
Sublimit then in effect, then, within two Business Days after receipt of such notice, the Borrowers
shall prepay Loans in an aggregate amount sufficient to reduce such Outstanding Amount as of such
date of payment to an amount not to exceed 100% of the Alternative Currency Sublimit then in
effect.

     (d) Application of Prepayments. Amounts to be applied in connection with prepayments
made pursuant to this Section 2.05 shall be applied first to the prepayment of the
Committed Loans, and second to the prepayment of the Swing Line Loans, in each case as provided in
Section 2.12.

     2.06 Termination or Reduction of Commitments. The Company may, upon notice to the
Administrative Agent, terminate the Aggregate Commitments (US), or from time to time permanently
reduce the Aggregate Commitments (US); provided that (i) any such notice shall be received by the
Administrative Agent not later than 10:00 a.m. five Business Days prior to the date of termination
or reduction, (ii) any such partial reduction shall be in an aggregate amount of $10,000,000 or any
whole multiple of $1,000,000 in excess thereof, (iii) the Company shall not terminate or reduce the
Aggregate Commitments (US) if, after giving effect thereto and to

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any concurrent prepayments hereunder, the Total Outstandings plus the Alternative Currency
Reserve (if any) would exceed the Aggregate Combined Commitments or if the Total Outstandings
(excluding the Designated UK Borrower Obligations) plus the Alternative Currency Reserve (if any)
would exceed the Aggregate Commitments (US), and (iv) if, after giving effect to any reduction of
the Aggregate Commitments (US), the Alternative Currency Sublimit, the Letter of Credit Sublimit
or the US Swing Line Sublimit exceeds the amount of the Aggregate Commitments (US), such Sublimit
shall be automatically reduced by the amount of such excess. The Administrative Agent shall
promptly notify the Lenders of any such notice of termination or reduction of the Aggregate
Commitments (US). The amount of any such Aggregate Commitment (US) reduction shall not be applied
to the Alternative Currency Sublimit or the Letter of Credit Sublimit unless otherwise specified by
the Company. Any reduction of the Aggregate Commitments (US) shall be applied to the Commitment of
each Lender according to its Applicable Percentage (US). All fees accrued until the effective date
of any termination of the Aggregate Commitments (US) shall be paid on the effective date of such
termination.

     2.07 Repayment of Loans. (a) Each Borrower shall repay to the Lenders on the Maturity Date
the aggregate principal amount of Committed Loans made to such Borrower outstanding on such date.

     (b) Grant Prideco, L.P. shall repay each US Swing Line Loan on the earlier to occur of (i) the
date ten Business Days after such Loan is made and (ii) the Maturity Date.

     (c) Each Designated UK Borrower shall repay to the UK Swing Line Lender on the Maturity Date
the aggregate principal amount of the UK Swing Line Loans made to such Designated UK Borrower
outstanding on such date.

     2.08 Interest. (a) Subject to the provisions of subsection (b) below, (i) each Eurocurrency
Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period
at a rate per annum equal to the Eurocurrency Rate for such Interest Period plus the
Applicable Rate for Eurocurrency Rate Loans plus (in the case of a Eurocurrency Rate Loan
of any Lender which is lent from a Lending Office in the United Kingdom or a Participating Member
State) the Mandatory Cost; (ii) each Base Rate Loan shall bear interest on the outstanding
principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base
Rate plus the Applicable Rate for Base Rate Loans; and (iii) each US Swing Line Loan shall
bear interest on the outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the Base Rate plus the Applicable Rate for Base Rate Loans.

     (b) (i) If any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount
shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.

     (ii) If any amount (other than principal of any Loan) payable by any Borrower under any
Loan Document is not paid when due (without regard to any applicable grace periods), whether
at stated maturity, by acceleration or otherwise, then upon the request of the Required
Lenders, such amount shall thereafter bear interest at a fluctuating

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interest rate per annum at all times equal to the Default Rate to the fullest extent
permitted by applicable Laws.

     (iii) Upon the request of the Required Lenders, while any Event of Default exists, the
Borrowers shall pay interest on the principal amount of all outstanding Obligations
hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws.

     (iv) Accrued and unpaid interest on past due amounts (including interest on past due
interest) shall be due and payable upon demand.

     (c) Interest on each Loan (other than UK Swingline Loans) shall be due and payable in arrears
on each Interest Payment Date applicable thereto and at such other times as may be specified
herein. Interest on each UK Swingline Loan shall be due and payable in arrears on the later of (i)
each Interest Payment Date applicable thereto and (ii) five Business Days after receipt by the
applicable Borrower of an invoice therefor and at such other times as may be specified herein.
Interest hereunder shall be due and payable in accordance with the terms hereof before and after
judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

     2.09 Fees. In addition to certain fees described in subsections (i) and (j) of Section
2.03:

     (a) Commitment Fee. The Company shall pay to the Administrative Agent for the account
of each Lender (other than the UK Swing Line Lender) in accordance with its Applicable Percentage,
a commitment fee in Dollars equal to the Applicable Rate for the Commitment Fee times the
actual daily amount by which the Aggregate Commitments (US) exceed the sum of (i) the Outstanding
Amount of Committed Loans and (ii) the Outstanding Amount of L/C Obligations (excluding the UK
Issued L/Cs). The Company shall pay to the UK Swing Line Lender for its own account a commitment
fee in Dollars equal to the Applicable Rate for the Commitment Fee times the actual daily
amount by which the UK Sublimit exceeds the sum of (i) the Outstanding Amount of UK Swing Line
Loans and (ii) the Outstanding Amount of L/C Obligations with respect to UK Issued L/Cs.
Notwithstanding the preceding two sentences, for any period during which the Applicable Percentage
(UK Included) is applicable, the Company shall pay to the Administrative Agent for the account of
each Lender (including the UK Swing Line Lender) a commitment fee in Dollars equal to the
Applicable Rate for the Commitment Fee times the actual daily amount by which the Aggregate
Combined Commitments exceed the sum of (i) the Outstanding Amount of Committed Loans and UK Swing
Line Loans and (ii) the Outstanding Amount of L/C Obligations (including the UK Issued L/Cs), which
fee shall be in lieu of, and not in addition to, the fees provided above in this Section
2.09. The commitment fees shall accrue at all times during the Availability Period, including
at any time during which one or more of the conditions in Article IV is not met, and shall
be due and payable quarterly in arrears on or before the later of (x) the last Business Day of each
March, June, September and December and (z) five Business Days after receipt by the applicable
Borrower of an invoice therefor, commencing with the first such date to occur after the Closing
Date, and on the Maturity Date. The commitment fees shall be calculated quarterly in arrears, and
if there is any change in the Applicable Rate during any quarter, the actual daily

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amount shall be computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect.

     (b) Other Fees. (i) The Company shall pay to the Arrangers, the Administrative Agent,
and the UK Swing Line Lender for their own respective accounts, in Dollars, fees in the amounts and
at the times specified in the applicable Fee Letter. Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

     (ii) The Company shall pay to the Lenders, in Dollars, such fees as shall have been
separately agreed upon in writing in the amounts and at the times so specified. Such fees
shall be fully earned when paid and shall not be refundable for any reason whatsoever.

     2.10 Computation of Interest and Fees. All computations of interest for Base Rate Loans when
the Base Rate is determined by Wells Fargo’s “prime rate” shall be made on the basis of a year of
365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and
interest shall be made on the basis of a 360-day year and actual days elapsed (which results in
more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year),
or, in the case of interest in respect of Loans denominated in Alternative Currencies as to which
market practice differs from the foregoing, in accordance with such market practice. Interest
shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or
any portion thereof, for the day on which the Loan or such portion is paid, provided that
any Loan that is repaid on the same day on which it is made shall, subject to Section
2.12(a), bear interest for one day. Each determination by the Administrative Agent or the UK
Swing Line Lender, as applicable, of an interest rate or fee hereunder shall be presumed correct
for all purposes, absent manifest error.

     2.11 Evidence of Debt. (a) The Credit Extensions made by each Lender shall be evidenced by
one or more accounts or records maintained by such Lender and by the Administrative Agent in the
ordinary course of business. The accounts or records maintained by the Administrative Agent and
each Lender shall be presumed correct absent manifest error of the amount of the Credit Extensions
made by the Lenders to the Borrowers and the interest and payments thereon. Any failure to so
record or any error in doing so shall not, however, limit or otherwise affect the obligation of the
Borrowers hereunder to pay any amount owing with respect to the Obligations. In the event of any
conflict between the accounts and records maintained by any Lender and the accounts and records of
the Administrative Agent in respect of such matters, the accounts and records of the Administrative
Agent shall control in the absence of manifest error. Upon the request of any Lender to a Borrower
made through the Administrative Agent, such Borrower shall execute and deliver to such Lender
(through the Administrative Agent) a Note, which shall evidence such Lender’s Loans to such
Borrower in addition to such accounts or records. Each Lender may attach schedules to a Note and
endorse thereon the date, Type (if applicable), amount, currency and maturity of its Loans and
payments with respect thereto.

     (b) In addition to the accounts and records referred to in subsection (a), each Lender and the
Administrative Agent shall maintain in accordance with its usual practice accounts or records
evidencing the purchases and sales by such Lender of participations in Letters of Credit and Swing
Line Loans. In the event of any conflict between the accounts and records maintained

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by the Administrative Agent and the accounts and records of any Lender in respect of such
matters, the accounts and records of the Administrative Agent shall control in the absence of
manifest error.

     2.12 Payments Generally; Administrative Agent’s Clawback. (a) General. All payments
to be made by the Borrowers shall be made without condition or deduction for any counterclaim,
defense, recoupment or setoff. Except as otherwise expressly provided herein and except with
respect to principal of and interest on Loans denominated in an Alternative Currency, all payments
by the Borrowers hereunder shall be made to the Administrative Agent, for the account of the
respective Lenders to which such payment is owed, at the applicable Administrative Agent’s Office
in Dollars and in Same Day Funds not later than 1:00 p.m. on the date specified herein. Except as
otherwise expressly provided herein, all payments by the Borrowers hereunder with respect to
principal and interest on Loans denominated in an Alternative Currency shall be made to the
Administrative Agent, for the account of the respective Lenders to which such payment is owed, at
the applicable Administrative Agent’s Office in such Alternative Currency and in Same Day Funds not
later than the Applicable Time specified by the Administrative Agent on the dates specified herein.
All payments by the Designated UK Borrowers hereunder with respect to UK Swing Line Loans shall be
made to the UK Swing Line Lender, at the applicable UK Swing Line Lender’s Office in Dollars or the
applicable Alternative Currency, in Same Day Funds, not later than 1:00 p.m. London time with
respect to payments of principal and interest on UK Swing Line Loans denominated in Dollars or
Sterling or, with respect to payments of principal and interest on UK Swing Line Loans denominated
in an Alternative Currency (other than Sterling), not later than the Applicable Time specified by
the UK Swing Line Lender for such Alternative Currency, on the dates specified herein. Without
limiting the generality of the foregoing, the Administrative Agent may require that any payments
due under this Agreement to the Administrative Agent be made in the United States and the UK Swing
Line Lender may require that any payments due under this Agreement to the UK Swing Line Lender be
made in London. If, for any reason, any Borrower is prohibited by any Law from making any required
payment hereunder in an Alternative Currency, such Borrower shall make such payment in Dollars in
the Dollar Equivalent of the Alternative Currency payment amount. The Administrative Agent will
promptly distribute to each Lender its Applicable Percentage (or other applicable share as provided
herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office.
All payments received by the Administrative Agent (i) after 1:00 p.m., in the case of payments in
Dollars, or (ii) after the Applicable Time specified by the Administrative Agent in the case of
payments in an Alternative Currency, shall in each case be deemed received on the next succeeding
Business Day and any applicable interest or fee shall continue to accrue. All payments received by
the UK Swing Line Lender (i) after 1:00 p.m. London time, in the case of payments in Dollars or
Sterling, or (ii) after the Applicable Time specified by the UK Swing Line Lender in the case of
payments in an Alternative Currency, shall in each case be deemed received on the next succeeding
Business Day and any applicable interest or fee shall continue to accrue. If any payment to be
made by any Borrower shall come due on a day other than a Business Day, payment shall be made on
the next following Business Day, and such extension of time shall be reflected in computing
interest or fees, as the case may be.

     (b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any

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Committed Borrowing of Eurocurrency Rate Loans (or, in the case of any Committed Borrowing of
Base Rate Loans, prior to 11:00 a.m. on the date of such Committed Borrowing) that such Lender will
not make available to the Administrative Agent such Lender’s share of such Committed Borrowing, the
Administrative Agent may assume that such Lender has made such share available on such date in
accordance with Section 2.02 (or, in the case of a Committed Borrowing of Base Rate Loans,
that such Lender has made such share available in accordance with and at the time required by
Section 2.02) and may, in reliance upon such assumption, make available to the applicable
Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the
applicable Committed Borrowing available to the Administrative Agent, then the applicable Lender
and the applicable Borrower severally agree to pay to the Administrative Agent forthwith on demand
such corresponding amount in Same Day Funds with interest thereon, for each day from and including
the date such amount is made available to such Borrower to but excluding the date of payment to the
Administrative Agent, at (A) in the case of a payment to be made by such Lender, the Overnight Rate
and (B) in the case of a payment to be made by such Borrower, the interest rate applicable to Base
Rate Loans. If such Borrower and such Lender shall pay such interest to the Administrative Agent
for the same or an overlapping period, the Administrative Agent shall promptly remit to such
Borrower the amount of such interest paid by such Borrower for such period. If such Lender pays
its share of the applicable Committed Borrowing to the Administrative Agent, then the amount so
paid shall constitute such Lender’s Committed Loan included in such Committed Borrowing. Any
payment by such Borrower shall be without prejudice to any claim such Borrower may have against a
Lender that shall have failed to make such payment to the Administrative Agent.

     (ii) Payments by Borrowers; Presumptions by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Borrower prior to the date on which
any payment is due to the Administrative Agent for the account of the Lenders or an L/C
Issuer hereunder that such Borrower will not make such payment, the Administrative Agent may
assume that such Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders or the applicable L/C Issuer, as
the case may be, the amount due. In such event, if such Borrower has not in fact made such
payment, then each of the Lenders or the applicable L/C Issuer, as the case may be,
severally agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender or such L/C Issuer, in Same Day Funds with 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 Overnight Rate.

     A notice of the Administrative Agent to any Lender or Borrower with respect to any amount
owing under this subsection (b) shall be presumed correct, absent manifest error.

     (c) Failure to Satisfy Conditions Precedent. If any Lender makes available to the
Administrative Agent funds for any Loan to be made by such Lender to any Borrower as provided in
the foregoing provisions of this Article II, and such funds are not made available to such
Borrower by the Administrative Agent because the conditions to the applicable Credit Extension set
forth in Article IV are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from such Lender) to such
Lender, without interest.

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     (d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make
Committed Loans, to fund participations in Letters of Credit and Swing Line Loans and to make
payments pursuant to Section 10.04(c) are several and not joint. The failure of any Lender
to make any Committed Loan, to fund any such participation or to make any payment under Section
10.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the failure of any other
Lender to so make its Committed Loan, to purchase its participation or to make its payment under
Section 10.04(c).

     (e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain
the funds for any Loan in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any particular place or
manner.

     2.13 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff
or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of
the Committed Loans made by it (or in which it holds participations), or the participations in L/C
Obligations or in Swing Line Loans held by it resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of such Committed Loans or participations and accrued interest
thereon greater than its pro rata share thereof as provided herein, then the Lender receiving such
greater proportion shall (a) notify the Administrative Agent of such fact and (b) purchase (for
cash at face value) participations in the Committed Loans and subparticipations in L/C Obligations
and Swing Line Loans of the other Lenders, or make such other adjustments as shall be equitable, 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 Committed Loans and other
amounts owing them, provided that:

     (i) if any such participations or subparticipations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the extent of such
recovery, without interest; and

     (ii) the provisions of this Section shall not be construed to apply to (x) any payment
made by a Borrower pursuant to and in accordance with the express terms of this Agreement or
(y) any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Committed Loans or subparticipations in L/C Obligations or Swing
Line Loans to any assignee or participant, other than to the Company or any Subsidiary
thereof (as to which the provisions of this Section shall apply).

     Each 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 such Borrower rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Borrower in the amount
of such participation.

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     2.14 Designated Borrowers. (a) Effective as of the date hereof, each of Grant Prideco, L.P.,
ReedHycalog Eurasia Ltd and ReedHycalog UK Ltd shall be a “Designated Borrower” hereunder and may
receive Loans for its respective account on the terms and conditions set forth in this Agreement.

     (b) (i) The Company may at any time, upon not less than 15 Business Days’ notice from the
Company to the Administrative Agent (or such shorter period as may be agreed by the Administrative
Agent in its sole discretion), designate any Material Domestic Subsidiary of the Company (an
“Applicant Domestic Borrower”) as a Designated Borrower to receive Loans hereunder by
delivering to the Administrative Agent (which shall promptly deliver counterparts thereof to each
Lender) a duly executed notice and agreement in substantially the form of Exhibit G (a
“Designated Borrower Request and Assumption Agreement”). The parties hereto acknowledge
and agree that, prior to any Applicant Domestic Borrower becoming entitled to utilize the credit
facilities provided for herein, the Administrative Agent and the Lenders shall have received such
supporting resolutions, incumbency certificates, opinions of counsel and other documents or
information, in form, content and scope reasonably satisfactory to the Administrative Agent, as may
be required by the Administrative Agent or the Required Lenders in their sole discretion, and Notes
signed by such new Borrowers to the extent any Lenders so require.

     (ii) The Company may at any time, upon not less than 15 Business Days’ notice from the
Company to the Administrative Agent and the UK Swing Line Lender (or such shorter period as
may be agreed by each of the Administrative Agent and the UK Swing Line Lender in its sole
discretion), designate any Foreign Subsidiary of the Company which is organized under the
laws of a jurisdiction reasonably acceptable to the Administrative Agent and the UK Swing
Line Lender (an “Applicant Foreign Borrower”) as a Designated Borrower to receive
Loans hereunder by delivering to the Administrative Agent (which shall promptly deliver
counterparts thereof to each Lender) and the UK Swing Line Lender a duly executed notice and
agreement in form and substance reasonably acceptable to the Administrative Agent and the UK
Swing Line Lender. The parties hereto acknowledge and agree that, prior to any Applicant
Foreign Borrower becoming entitled to utilize the credit facilities provided for herein, the
Administrative Agent and the Lenders shall have received such supporting resolutions,
incumbency certificates, opinions of counsel and other documents or information, in form,
content and scope reasonably satisfactory to the Administrative Agent and the UK Swing Line
Lender, as may be required by the Administrative Agent, the UK Swing Line Lender or the
Required Lenders in their sole discretion, and Notes signed by such new Borrowers to the
extent any Lenders so require.

     (iii) If the Administrative Agent and the Required Lenders and, with respect to any
Applicant Foreign Borrower, the UK Swing Line Lender, agree that an Applicant Borrower shall
be entitled to receive Loans hereunder, then promptly following receipt of all such
requested resolutions, incumbency certificates, opinions of counsel and other documents or
information, the Administrative Agent shall send a notice in substantially the form of
Exhibit H (a “Designated Borrower Notice”) to the Company and the Lenders
specifying the effective date upon which the Applicant Borrower shall constitute a
Designated Borrower for purposes hereof, whereupon each of the Lenders agrees to

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permit such Designated Borrower to receive Loans hereunder, on the terms and conditions
set forth herein, and each of the parties agrees that such Designated Borrower otherwise
shall be a Borrower for all purposes of this Agreement; provided that no Committed
Loan Notice, UK Swing Line Loan Notice or Letter of Credit Application may be submitted by
or on behalf of such Designated Borrower until the date five Business Days after such
effective date.

     (c) The Obligations of the Company and each Designated Borrower that is a Domestic Subsidiary,
including without limitation Grant Prideco, L.P’s obligations with respect to Letters of Credit and
US Swing Line Loans, shall be joint and several in nature. The Obligations of all Designated
Borrowers that are Foreign Subsidiaries shall be several in nature.

     (d) Each of the Company and each Subsidiary of the Company that is or becomes a “Designated
Borrower” pursuant to this Section 2.14 hereby irrevocably appoints each of Grant Prideco,
L.P. and the Company as its agent for all purposes relevant to this Agreement and each of the other
Loan Documents, including (i) the giving and receipt of notices, (ii) the execution and delivery of
all documents, instruments and certificates contemplated herein and all modifications hereto, and
(iii) the receipt of the proceeds of any Loans made by the Lenders, to any such Designated Borrower
hereunder. Any acknowledgment, consent, direction, certification or other action which might
otherwise be valid or effective only if given or taken by all Borrowers, or by each Borrower acting
singly, shall be valid and effective if given or taken only by Grant Prideco, L.P. or the Company,
whether or not any such other Borrower joins therein. Any notice, demand, consent,
acknowledgement, direction, certification or other communication delivered to the Company or Grant
Prideco, L.P. in accordance with the terms of this Agreement shall be deemed to have been delivered
to each Designated Borrower.

     (e) The Company may from time to time, upon not less than 15 Business Days’ notice from the
Company to the Administrative Agent (or such shorter period as may be agreed by the Administrative
Agent), terminate a Designated Borrower’s status as such, provided that there are no
outstanding Loans payable by such Designated Borrower, or other amounts payable by such Designated
Borrower on account of any Loans made to it, as of the effective date of such termination. The
Administrative Agent will promptly notify the Lenders of any such termination of a Designated
Borrower’s status.

     2.15 Increase in Commitments.

     (a) Request for Increase. Provided there exists no Default, upon notice to the
Administrative Agent (which shall promptly notify the Lenders), the Company may from time to time,
request an increase in the Aggregate Commitments (US) by an amount for all such requests not
exceeding $150,000,000; provided that any such request for an increase shall be in a
minimum amount of $25,000,000. Such increase may be effectuated by increasing the Commitment of
one or more Lenders as provided below, or the Company may, subject to the approval of the
Administrative Agent and each L/C Issuer (which approvals shall not be unreasonably withheld),
invite additional Eligible Assignees to become Lenders pursuant to a joinder agreement in form and
substance satisfactory to the Administrative Agent and its counsel. At the time of sending such
notice, the Company shall advise the Administrative Agent as to how it proposes to effectuate such
increase, and if the Company elects to request an

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increase from existing Lenders, at such time the Company (in consultation with the
Administrative Agent) shall specify the time period within which each Lender is requested to
respond (which shall in no event be less than ten Business Days from the date of delivery of such
notice to the Lenders).

     (b) Lender Elections to Increase. Upon receipt of a notice of requested increase,
each Lender shall notify the Administrative Agent within such time period whether or not it agrees
to increase its Commitment and, if so, whether by an amount equal to, greater than, or less than
its Applicable Percentage (US) of such requested increase. Any Lender not responding within such
time period shall be deemed to have declined to increase its Commitment.

     (c) Notification by Administrative Agent; Additional Lenders. The Administrative
Agent shall notify the Company and each Lender of the Lenders’ responses to each request made
hereunder. To achieve the full amount of a requested increase and subject to the approval of the
Administrative Agent and each L/C Issuer (which approvals shall not be unreasonably withheld), the
Company may also invite additional Eligible Assignees to become Lenders pursuant to a joinder
agreement in form and substance satisfactory to the Administrative Agent and its counsel.

     (d) Effective Date and Allocations. If the Aggregate Commitments (US) are increased
in accordance with this Section, the Administrative Agent and the Company shall determine the
effective date (the “Increase Effective Date”) and the final allocation of such increase.
The Administrative Agent shall promptly notify the Company and the Lenders of the final allocation
of such increase and the Increase Effective Date.

     (e) Conditions to Effectiveness of Increase. As a condition precedent to such
increase, the Company shall deliver to the Administrative Agent (y) a certificate of each Loan
Party dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a
Responsible Officer of such Loan Party (i) certifying and attaching the resolutions adopted by such
Loan Party approving or consenting to such increase, and (ii) in the case of the Company,
certifying that, before and after giving effect to such increase, (A) the representations and
warranties contained in Article V and the other Loan Documents are true and correct on and
as of the Increase Effective Date, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct as of such earlier
date, and except that for purposes of this Section 2.16, the representations and warranties
contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most
recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01,
and (B) no Default exists and (z) if applicable, a joinder agreement, in form and substance
satisfactory to the Administrative Agent and its counsel, from each Eligible Assignee becoming a
Lender in connection with such increase, duly executed by such Lender. The Borrowers shall prepay
any Committed Loans outstanding on the Increase Effective Date (and pay any additional amounts
required pursuant to Section 3.05) to the extent necessary to keep the outstanding
Committed Loans ratable with any revised Applicable Percentages (US) arising from any nonratable
increase in the Commitments or the addition of new Lenders under this Section.

     (f) Conflicting Provisions. This Section shall supersede any provisions in
Sections 2.13 or 10.01 to the contrary.

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ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

     3.01 Taxes.

     (a) Payments Free of Taxes. Any and all payments by or on account of any obligation
of the respective Borrowers hereunder or under any other Loan Document shall be made free and clear
of and without reduction, deduction, or withholding for any Indemnified Taxes or Other Taxes,
provided that if the applicable Borrower shall be required by applicable law to deduct any
Indemnified Taxes (including any 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 applicable Agent, Lender or L/C
Issuer, as the case may be, receives an amount equal to the sum it would have received had no such
deductions been made, (ii) such Borrower shall make such deductions and (iii) such Borrower shall
timely pay the full amount deducted to the relevant Governmental Authority in accordance with
applicable law.

     (b) Payment of Other Taxes by the Borrowers. Without limiting the provisions of
subsection (a) above, each Borrower shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

     (c) Indemnification by the Borrowers. Each Borrower shall indemnify each of the
Administrative Agent, each Lender, each Swing Line Lender, and each L/C Issuer, within 30 days
after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under
this Section) paid by the Administrative Agent, Lender, Swing Line Lender, or L/C Issuer, as the
case may be, and any penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate setting forth the amount, and
detailing the calculation, of such Indemnified Taxes or Other Taxes shall be submitted by such the
Administrative Agent, Lender, Swing Line Lender, or L/C Issuer, as the case may be to the
applicable Borrower with any demand for payment thereof, and shall be presumptively correct, absent
manifest error.

     (d) Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by any Borrower to a Governmental Authority, such 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) Status of Lenders. No Person may become a Lender under this Agreement unless such
Person is entitled to an exemption from withholding under this Section 3.01(e) with respect
to payments received under this Agreement. Any Foreign Lender that is entitled to an exemption
from withholding tax under the law of the jurisdiction in which a Borrower is resident for tax
purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder
or under any other Loan Document shall deliver to the Company (with a copy to the Administrative
Agent), at the time or times prescribed by applicable law or reasonably requested

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by the Company or the Administrative Agent, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without withholding.

     Any Lender, at the time or times prescribed by applicable law or as reasonably requested by
the Company or the Administrative Agent, shall deliver such other documentation prescribed by
applicable law or reasonably requested by the Company or the Administrative Agent as will enable
the Company or the Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements.

     Without limiting the generality of the foregoing, in the event that a Borrower is resident for
tax purposes in the United States, any Foreign Lender shall deliver to Company and the
Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior
to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to
time thereafter upon the request of the Company or the Administrative Agent if such Foreign Lender
is legally entitled to do so, or as required by applicable law), whichever of the following is
applicable:

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

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

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

     (iv) any other form prescribed by applicable law as a basis for claiming exemption from
United States Federal withholding tax duly completed together with such supplementary
documentation as may be prescribed by applicable law.

     Without limiting the obligations of the Lenders set forth above regarding delivery of certain
forms and documents to establish each Lender’s status for U.S. withholding tax purposes, each
Lender agrees promptly to deliver to the Administrative Agent or the Company, as the Administrative
Agent or the Company shall reasonably request, on or prior to the Closing Date, and in a timely
fashion thereafter, such other documents and forms required by any relevant taxing authorities
under the Laws of any other jurisdiction, duly executed and completed by such Lender, as are
required under such Laws to confirm such Lender’s entitlement to any available exemption from
applicable withholding taxes in respect of all payments to be made to such Lender outside of the
U.S. by the Borrowers pursuant to this Agreement or otherwise to establish such Lender’s status for
withholding tax purposes in such other jurisdiction. Each Lender shall promptly (i) notify the
Administrative Agent of any change in circumstances which would

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modify or render invalid any such claimed exemption under this Section 3.01(e), and
(ii) take such steps as shall not be materially disadvantageous to it, in the reasonable judgment
of such Lender, and as may be reasonably necessary (including the re-designation of its Lending
Office) to avoid any requirement of applicable Laws of any such jurisdiction that any Borrower make
any deduction or withholding for taxes from amounts payable to such Lender. Additionally, each of
the Borrowers shall promptly deliver to the Administrative Agent or any Lender, as the
Administrative Agent or such Lender shall reasonably request, on or prior to the Closing Date, and
in a timely fashion thereafter, such documents and forms required by any relevant taxing
authorities under the Laws of any jurisdiction, duly executed and completed by such Borrower, as
are required to be furnished by such Lender or the Administrative Agent under such Laws in
connection with any payment by the Administrative Agent or any Lender of Taxes or Other Taxes, or
otherwise in connection with the Loan Documents, with respect to such jurisdiction.

     (f) Treatment of Certain Refunds. If the Administrative Agent, Lender, Swing Line
Lender, or L/C Issuer determines, in its sole discretion, that it has received a refund of any
Taxes or Other Taxes as to which it has been indemnified by any Borrower or with respect to which
any Borrower has paid additional amounts pursuant to this Section, it shall pay to such Borrower an
amount equal to such refund (but only to the extent of indemnity payments made, or additional
amounts paid, by such Borrower under this Section with respect to the Taxes or Other Taxes giving
rise to such refund), net of all out-of-pocket expenses of the Administrative Agent, Lender, Swing
Line Lender, or L/C Issuer, as the case may be, and without interest (other than any interest paid
by the relevant Governmental Authority with respect to such refund), provided that each
Borrower, upon the request of the Administrative Agent, Lender, Swing Line Lender, or L/C Issuer,
agrees to repay the amount paid over to such Borrower (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Administrative Agent, Lender, Swing
Line Lender, or L/C Issuer in the event the Administrative Agent, Lender, Swing Line Lender, or L/C
Issuer is required to repay such refund to such Governmental Authority. This subsection shall not
be construed to require the Administrative Agent, any Lender, any Swing Line Lender, or any L/C
Issuer to make available its tax returns (or any other information relating to its taxes that it
deems confidential) to any Borrower or any other Person.

     3.02 Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending
Office to make, maintain or fund Eurocurrency Rate Loans (whether denominated in Dollars or an
Alternative Currency), or to determine or charge interest rates based upon the Eurocurrency Rate,
or any Governmental Authority has imposed material restrictions on the authority of such Lender to
purchase or sell, or to take deposits of, Dollars or any Alternative Currency in the applicable
interbank market, then, on notice thereof by such Lender to Grant Prideco, L.P. through the
Administrative Agent, or to or the Designated UK Borrower in the case of the UK Swing Line Lender
(with a copy to the Administrative Agent) any obligation of such Lender to make or continue
Eurocurrency Rate Loans in the affected currency or currencies or, in the case of Eurocurrency Rate
Loans in Dollars, to convert Base Rate Committed Loans to Eurocurrency Rate Loans, shall be
suspended until such Lender notifies the Administrative Agent and Grant Prideco, L.P. or the
Administrative Agent and the Designated UK Borrowers, as applicable, that the circumstances giving
rise to such determination no longer exist. Upon receipt of such notice, the applicable Borrowers
shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if
applicable and such Loans are denominated in

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Dollars, convert all such Eurocurrency Rate Loans of such Lender to Base Rate Loans, either on
the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such
Eurocurrency Rate Loans to such day, or immediately, if such Lender may not lawfully continue to
maintain such Eurocurrency Rate Loans. Upon any such prepayment or conversion, the Borrowers shall
also pay accrued interest on the amount so prepaid or converted.

     3.03 Inability to Determine Rates. If the Required Lenders or, in the case of any UK Swing
Line Loan or a continuation thereof the UK Swing Line Lender, determine that for any reason in
connection with any request for a Eurocurrency Rate Loan or a conversion to or continuation thereof
that (a) deposits (whether in Dollars or an Alternative Currency) are not being offered to banks in
the applicable offshore interbank market for such currency for the applicable amount and Interest
Period of such Eurocurrency Rate Loan, (b) adequate and reasonable means do not exist for
determining the Eurocurrency Rate for any requested Interest Period with respect to a proposed
Eurocurrency Rate Loan (whether denominated in Dollars or an Alternative Currency), or (c) the
Eurocurrency Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate
Loan does not adequately and fairly reflect the cost to such Lenders of funding such Eurocurrency
Rate Loan, the Administrative Agent will promptly so notify Grant Prideco L.P. and each Lender or
the UK Swing Line Lender will promptly notify the Designated UK Borrowers and the Administrative
Agent, as applicable. Thereafter, the obligation of the Lenders or the UK Swing Line Lender, as
applicable, to make or maintain Eurocurrency Rate Loans in the affected currency or currencies
shall be suspended until the Administrative Agent (upon the instruction of the Required Lenders)
or, in the case of UK Swing Line Loans, the UK Swing Line Lender, revokes such notice. Upon
receipt of such notice, Grant Prideco L.P. or the applicable Designated UK Borrower may revoke any
pending request for a Borrowing of, conversion to or continuation of Eurocurrency Rate Loans in the
affected currency or currencies or, failing that, will be deemed to have converted such request
into a request for a Committed Borrowing or UK Swing Line Borrowing, as applicable, of Base Rate
Loans in the amount specified therein.

     3.04 Increased Costs; Reserves on Eurocurrency Rate Loans.

     (a) Increased Costs Generally. If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account
of, or credit extended or participated in by, any Lender (except (A) any reserve requirement
contemplated by Section 3.04(e) and (B) the requirements of the Bank of England and
the Financial Services Authority or the European Central Bank reflected in the Mandatory
Cost, other than as set forth below) or any L/C Issuer;

     (ii) subject any Lender or L/C Issuer to any tax of any kind whatsoever with respect to
this Agreement, any Letter of Credit, any participation in a Letter of Credit or any
Eurocurrency Rate Loan made by it, or change the basis of taxation of payments to such
Lender or L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes covered
by Section 3.01 and the imposition of, or any change in the rate of, any Excluded
Tax payable by such Lender or L/C Issuer);

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(iii) the Mandatory Cost, as calculated hereunder, does not represent the cost to any
Lender of complying with the requirements of the Bank of England and/or the Financial
Services Authority or the European Central Bank in relation to its making, funding or
maintaining Eurocurrency Rate Loans; or

     (iv) impose on any Lender or L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurocurrency Rate Loans made by such
Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurocurrency Rate Loan (or of maintaining its obligation to make any such Loan), or
to increase the cost to such Lender or L/C Issuer of participating in, issuing or maintaining any
Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of
Credit), or to reduce the amount of any sum received or receivable by such Lender or L/C Issuer
hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or
L/C Issuer, the Company will pay (or cause the applicable Designated Borrower to pay) to such
Lender or L/C Issuer, as the case may be, such additional amount or amounts as will compensate such
Lender or L/C Issuer, as the case may be, for such additional costs incurred or reduction suffered.

     (b) Capital Requirements. If any Lender or L/C Issuer determines that any Change in
Law affecting such Lender or L/C Issuer or any Lending Office of such Lender or such Lender’s or
L/C Issuer’s holding company, if any, regarding capital requirements has or would have the effect
of reducing the rate of return on such Lender’s or L/C Issuer’s capital or on the capital of such
Lender’s or L/C Issuer’s holding company, if any, as a consequence of this Agreement, the
Commitments or UK Commitment, as applicable, of such Lender or the Loans made by, or participations
in Letters of Credit held by, such Lender, or the Letters of Credit issued by such L/C Issuer, to a
level below that which such Lender or L/C Issuer or such Lender’s or L/C Issuer’s holding company
could have achieved but for such Change in Law (taking into consideration such Lender’s or L/C
Issuer’s policies and the policies of such Lender’s or L/C Issuer’s holding company with respect to
capital adequacy), then from time to time the Company will pay (or cause the applicable Designated
Borrower to pay) to such Lender or L/C Issuer, as the case may be, such additional amount or
amounts as will compensate such Lender or L/C Issuer or such Lender’s or L/C Issuer’s holding
company for any such reduction suffered.

     (c) Certificates for Reimbursement. A certificate of a Lender or the applicable L/C
Issuer setting forth the amount or amounts necessary to compensate such Lender or L/C Issuer or its
holding company, as the case may be, as specified in subsection (a) or (b) of this Section and
delivered to the Company shall be presumed correct absent manifest error. The Company shall pay
(or cause the applicable Designated Borrower to pay) such Lender or L/C Issuer, as the case may be,
the amount shown as due on any such certificate within 10 days after receipt thereof.

     (d) Delay in Requests. Failure or delay on the part of any Lender or L/C Issuer to
demand compensation pursuant to the foregoing provisions of this Section shall not constitute a
waiver of such Lender’s or L/C Issuer’s right to demand such compensation, provided that no
Borrower shall be required to compensate a Lender or L/C Issuer pursuant to the foregoing
provisions of this Section for any increased costs incurred or reductions suffered more than nine

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months prior to the date that such Lender or L/C Issuer, as the case may be, notifies the
Company of the Change in Law giving rise to such increased costs or reductions and of such Lender’s
or L/C Issuer’s intention to claim compensation therefor (except that, if the Change in Law giving
rise to such increased costs or reductions is retroactive, then the nine-month period referred to
above shall be extended to include the period of retroactive effect thereof).

     (e) Additional Reserve Requirements. The Company shall pay (or cause the applicable
Designated Borrower to pay) to each Lender, (i) as long as such Lender shall be required to
maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency
funds or deposits (currently known as “Eurocurrency liabilities”), additional interest on the
unpaid principal amount of each Eurocurrency Rate Loan equal to the actual costs of such reserves
allocated to such Loan by such Lender (as determined by such Lender in good faith, which
determination shall be presumed correct), and (ii) as long as such Lender shall be required to
comply with any reserve ratio requirement or analogous requirement of any other central banking or
financial regulatory authority imposed in respect of the maintenance of the Commitments or UK
Commitment, as applicable, or the funding of the Eurocurrency Rate Loans, such additional costs
(expressed as a percentage per annum and rounded upwards, if necessary, to the nearest five decimal
places) equal to the actual costs allocated to such Commitment or Loan by such Lender (as
determined by such Lender in good faith, which determination shall be presumed correct), which in
each case shall be due and payable on each date on which interest is payable on such Loan,
provided the Company shall have received at least 10 days’ prior notice (with a copy to the
Administrative Agent) of such additional interest or costs from such Lender. If a Lender fails to
give notice 10 days prior to the relevant Interest Payment Date, such additional interest or costs
shall be due and payable 10 days from receipt of such notice.

     3.05 Compensation for Losses. Upon demand of any Lender (with a copy to the Administrative
Agent) from time to time, the Company shall promptly compensate (or cause the applicable Designated
Borrower to compensate) such Lender for and hold such Lender harmless from any loss, cost or
expense incurred by it as a result of:

     (a) any continuation, conversion, payment or prepayment of any Loan other than a Base Rate
Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary,
mandatory, automatic, by reason of acceleration, or otherwise);

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

     (c) any failure by any Borrower to make payment of any Loan or drawing under any Letter of
Credit (or interest due thereon) denominated in an Alternative Currency on its scheduled due date
or any payment thereof in a different currency; or

     (d) any assignment of a Eurocurrency Rate Loan on a day other than the last day of the
Interest Period therefor as a result of a request by the Company pursuant to Section 10.13;

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including any loss of anticipated profits, any foreign exchange losses and any loss or expense
arising from the liquidation or reemployment of funds obtained by it to maintain such Loan, from
fees payable to terminate the deposits from which such funds were obtained or from the performance
of any foreign exchange contract. The Company shall also pay (or cause the applicable Designated
Borrower to pay) any customary administrative fees charged by such Lender in connection with the
foregoing.

For purposes of calculating amounts payable by the Company (or the applicable Designated Borrower)
to the Lenders under this Section 3.05, each Lender shall be deemed to have funded each
Eurocurrency Rate Loan made by it at the Eurocurrency Rate for such Loan by a matching deposit or
other borrowing in the offshore interbank market for such currency for a comparable amount and for
a comparable period, whether or not such Eurocurrency Rate Loan was in fact so funded.

     3.06 Mitigation Obligations; Replacement of Lenders.

     (a) Designation of a Different Lending Office. If any Lender requests compensation
under Section 3.04, or any Borrower is required to pay any additional amount to any Lender
or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if
any Lender gives a notice pursuant to Section 3.02, 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 3.01 or 3.04, as the case may be, in the
future, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and
(ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender. The Company hereby agrees to pay (or to cause the
applicable Designated Borrower to pay) all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

     (b) Replacement of Lenders. If any Lender requests compensation under Section
3.04, or if any Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01, the Company
may replace such Lender in accordance with Section 10.13.

     3.07 Survival. All of the Borrowers’ obligations under this Article III shall survive
termination of the Aggregate Combined Commitments and repayment of all other Obligations hereunder.

ARTICLE IV

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

     4.01 Conditions of Initial Credit Extension. The obligation of each L/C Issuer and each
Lender to make its initial Credit Extension hereunder is subject to satisfaction of the following
conditions precedent:

     (a) The Administrative Agent’s receipt of the following, each of which shall be originals or
telecopies (followed promptly by originals) unless otherwise specified, each properly

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executed by a Responsible Officer of the signing Loan Party, each dated the Closing Date (or,
in the case of certificates of governmental officials, a recent date before the Closing Date) and
each in form and substance satisfactory to the Administrative Agent and each of the Lenders:

     (i) executed counterparts of this Agreement and the Guaranties, sufficient in number
for distribution to the Administrative Agent, each Lender, each Swing Line Lender, and the
Company;

     (ii) Notes executed by the Borrowers in favor of each Lender or Swing Line Lender
requesting Notes;

     (iii) such certificates of resolutions or other action, incumbency certificates and/or
other certificates of Responsible Officers of each Loan Party as the Administrative Agent
may require evidencing the identity, authority and capacity of each Responsible Officer
thereof authorized to act as a Responsible Officer in connection with this Agreement and the
other Loan Documents to which such Loan Party is a party;

     (iv) such documents and certifications as the Administrative Agent may reasonably
require to evidence that each Loan Party is duly organized or formed, and that each Loan
Party is validly existing, in good standing and qualified to engage in business in each
jurisdiction where its ownership, lease or operation of properties or the conduct of its
business requires such qualification, except to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect;

     (v) a favorable opinion of (A) Fulbright & Jaworski, L.L.P., counsel to the Loan
Parties, addressed to the Administrative Agent and each Lender, as to such matters
concerning the Loan Parties and the Loan Documents as the Required Lenders may reasonably
request, and (B) appropriate local counsel, addressed to the Administrative Agent and each
Lender, as to such other matters concerning the Loan Parties and the Loan Documents as the
Required Lenders may reasonably request;

     (vi) a certificate signed by a Responsible Officer of the Company certifying (A) that
the conditions specified in Sections 4.02(a) and (b) have been satisfied and
(B) that there has been no event or circumstance since the date of the Audited Financial
Statements that has had or could be reasonably expected to have, either individually or in
the aggregate, a Material Adverse Effect;

     (vii) evidence that all insurance required to be maintained pursuant to the Loan
Documents has been obtained and is in effect; and

     (viii) such other assurances, certificates, documents, consents or opinions as the
Administrative Agent, any L/C Issuer, any Swing Line Lender, or the Required Lenders
reasonably may require.

     (b) There shall not have occurred a material adverse change in the business, assets,
properties, liabilities (actual or contingent), operations, condition (financial or otherwise), or
prospects, taken as a whole, of the Company and its Subsidiaries since December 31, 2005, or in the
facts and information regarding such entities as represented to date.

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     (c) Any fees required to be paid on or before the Closing Date shall have been paid.

     (d) Unless waived by the Administrative Agent or the Syndication Agent, as applicable, the
Company shall have paid all fees, charges and disbursements of counsel to the Administrative Agent
to the extent invoiced prior to or on the Closing Date, plus such additional amounts of such fees,
charges and disbursements as shall constitute its reasonable estimate of such fees, charges and
disbursements incurred or to be incurred by it through the closing proceedings (provided that such
estimate shall not thereafter preclude a final settling of accounts between the Company and the
Administrative Agent and the Syndication Agent).

     (e) The Closing Date shall have occurred on or before September 30, 2006.

     Without limiting the generality of the provisions of Section 9.04, for purposes of
determining compliance with the conditions specified in this Section 4.01, each Lender that
has signed this Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with, each document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

     4.02 Conditions to all Credit Extensions. The obligation of each Lender and each L/C Issuer
to honor any Request for Credit Extension (other than a Committed Loan Notice requesting only a
conversion of Committed Loans to the other Type, or a continuation of Eurocurrency Rate Loans) is
subject to the following conditions precedent:

     (a) The representations and warranties of (i) the Borrowers contained in Article V and
(ii) each Loan Party contained in each other Loan Document or in any document furnished at any time
under or in connection herewith or therewith, shall be true and correct on and as of the date of
such Credit Extension, except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they shall be true and correct as of such earlier date, and
except that for purposes of this Section 4.02, the representations and warranties contained
in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the then most
recently furnished statements pursuant to clauses (a) and (b), respectively, of Section
6.01.

     (b) No Default shall exist, or would result from such proposed Credit Extension or the
application of the proceeds thereof.

     (c) The Administrative Agent and any applicable L/C Issuer or Swing Line Lender shall have
received a Request for Credit Extension in accordance with the requirements hereof.

     (d) If the applicable Borrower is a Designated Borrower, then the conditions of Section
2.14 to the designation of such Borrower as a Designated Borrower shall have been met to the
satisfaction of the Administrative Agent.

     (e) In the case of a Credit Extension to be denominated in an Alternative Currency, there
shall not have occurred any change in national or international financial, political or economic
conditions or currency exchange rates or exchange controls which in the reasonable opinion of the
Administrative Agent, the Required Lenders (in the case of any Committed Loans or Swing Line Loans
to be denominated in an Alternative Currency), the UK Swing Line Lender

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(in the case of any UK Swing Line Loan to be denominated in an Alternative Currency), or the
applicable L/C Issuer (in the case of any Letter of Credit to be denominated in an Alternative
Currency), would make it impracticable for such Credit Extension to be denominated in the relevant
Alternative Currency.

     Each Request for Credit Extension (other than a Committed Loan Notice requesting only a
conversion of Committed Loans to the other Type or a continuation of Eurocurrency Rate Loans)
submitted by the Company shall be deemed to be a representation and warranty that the conditions
specified in Sections 4.02(a) and (b) have been satisfied on and as of the date of
the applicable Credit Extension.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     Except as otherwise provided in Section 5.18, each Borrower represents and warrants to
the Administrative Agent, the L/C Issuers, the Swing Line Lenders, and the Lenders that:

     5.01 Existence, Qualification and Power. Each Loan Party and each Subsidiary thereof (a) is
duly organized or formed, validly existing and in good standing under the Laws of the jurisdiction
of its incorporation or organization, (b) has all requisite power and authority and all requisite
governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and
carry on its business and (ii) execute, deliver and perform its obligations under the Loan
Documents to which it is a party, and (c) is duly qualified and is licensed and in good standing
under the Laws of each jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license; except in each case referred to in
clause (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have
a Material Adverse Effect.

     5.02 Authorization; No Contravention. The execution, delivery and performance by each Loan
Party of each Loan Document to which such Person is party, have been duly authorized by all
necessary corporate or other organizational action, and do not and will not (a) violate the terms
of any of such Person’s Organization Documents; (b) violate or result in any breach or
contravention of, or the creation of any Lien under, or require any payment to be made under (i)
any Contractual Obligation to which such Person is a party or affecting such Person or the
properties of such Person or any of its Subsidiaries (other than the creation of Liens under the
Loan Documents) or (ii) any order, injunction, writ or decree of any Governmental Authority or any
arbitral award to which such Person or its property is subject; or (c) violate any Law. As of the
date hereof, each Loan Party and each Subsidiary thereof is in compliance with all Contractual
Obligations referred to in clause (b)(i), except to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect.

     5.03 Governmental Authorization; Other Consents. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any Governmental Authority or any
other Person is necessary or required in connection with the execution, delivery or performance by,
or enforcement against, any Loan Party of this Agreement or any other Loan Document, except for
such as have been received and are in full force and effect;

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     5.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto.
This Agreement constitutes, and each other Loan Document when so delivered will constitute, a
legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is
party thereto in accordance with its terms.

     5.05 Financial Statements.

     (a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly noted therein and (ii)
fairly present the financial condition of the Company and its Subsidiaries as of the date thereof
and their results of operations for the period covered thereby in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly noted therein.

     (b) The unaudited consolidated balance sheet of the Company and its Subsidiaries dated June
30, 2006, and the related consolidated statements of income or operations, shareholders’ equity and
cash flows for the fiscal quarter ended on that date (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise expressly noted
therein, and (ii) fairly present the financial condition of the Company and its Subsidiaries as of
the date thereof and their results of operations for the period covered thereby, subject, in the
case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments.

     5.06 Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to
the knowledge of the Company after due and diligent investigation, threatened or contemplated, at
law, in equity, in arbitration or before any Governmental Authority, by or against the Company or
any of its Subsidiaries or against any of their properties or revenues that (a) purport to affect
or pertain to this Agreement or any other Loan Document, or any of the transactions contemplated
hereby, or (b) either individually or in the aggregate could reasonably be expected to have a
Material Adverse Effect.

     5.07 No Default. Neither the Company nor any Subsidiary is in default under or with respect
to any Contractual Obligation that could, either individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. No Default has occurred and is continuing or would
result from the consummation of the transactions contemplated by this Agreement or any other Loan
Document.

     5.08 Ownership of Property; Liens. Each of the Company and each Subsidiary has good record
and marketable title in fee simple to, or valid leasehold interests in, all real property necessary
or used in the ordinary conduct of its business, except for such defects in title as could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The
property of the Company and its Subsidiaries is subject to no Liens, other than Liens permitted by
Section 7.01.

     5.09 Environmental Compliance. (a) The Company and its Subsidiaries conduct in the ordinary
course of business a review of the effect of existing Environmental Laws and claims

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alleging potential liability or responsibility for violation of any Environmental Law on their
respective businesses, operations and properties, and as a result thereof the Company has
reasonably concluded that such Environmental Laws and claims could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

     (b) The Company and its Subsidiaries are in compliance with all applicable Environmental Laws,
and have no liability under any Environmental Laws, except for such non-compliance or liability
which would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

     (c) The Company and its Subsidiaries hold all Environmental Permits (each of which is in full
force and effect) necessary for the operation of its business and for the use of any property
owned, leased, or otherwise operated by them, except for such Environmental Permits the failure to
hold which would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

     (d) There are no pending or, to the knowledge of the Company or any Subsidiary, threatened,
claims against the Company or any Subsidiary under any Environmental Laws, and, neither the Company
nor any Subsidiary has received any written notice of alleged non-compliance with applicable
Environmental Laws or Environmental Permits which, in each case, would individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

     5.10 Insurance. The properties of the Company and its Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of the Company, in such amounts,
with such deductibles and covering such risks as are customarily carried by companies engaged in
similar businesses and owning similar properties in localities where the Company or the applicable
Subsidiary operates.

     5.11 Taxes. The Company and its Subsidiaries have filed all United States federal, material
state and other material tax returns and reports required to be filed, and have paid all United
States federal, material state and other material taxes, assessments, fees and other governmental
charges levied or imposed upon them or their properties, income or assets otherwise due and
payable, except those which are being contested in good faith by appropriate proceedings diligently
conducted and for which adequate reserves have been provided in accordance with GAAP. There is no
proposed tax assessment against the Company or any Subsidiary that would, if made, have a Material
Adverse Effect.

     5.12 ERISA Compliance.

     (a) Each Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other Federal or state Laws except for such noncompliance which could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each
Plan that is intended to qualify under Section 401(a) of the Code has received a favorable
determination letter from the IRS or the remedial amendment period under Section 401(b) of the Code
with respect to the Plan has not expired and, to the best knowledge of the Company, nothing has
occurred which would prevent, or cause the loss of, such qualification, if such

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prevention or loss would reasonably be expected to have a Material Adverse Effect. The
Company and each ERISA Affiliate have made all material required contributions to each Plan subject
to Section 412 of the Code, other than any failures which could not, individually or in the
aggregate, be reasonably expected to have a Material Adverse Effect, and no application for a
funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has
been made with respect to any Plan.

     (b) There are no pending or, to the best knowledge of the Company, threatened claims, actions
or lawsuits, or action by any Governmental Authority, with respect to any Plan that could
reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction
or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or
could reasonably be expected to result in a Material Adverse Effect.

     5.13 Subsidiaries. As of the Closing Date, the Company has no Subsidiaries other than those
specifically disclosed in Schedule 5.13.

     5.14 Margin Regulations; Investment Company Act.

     (a) No Borrower is engaged or will engage, principally or as one of its important activities,
in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued
by the FRB), or extending credit for the purpose of purchasing or carrying margin stock.

     (b) None of the Company, any Person Controlling the Company, or any Subsidiary is or is
required to be registered as an “investment company” under the Investment Company Act of 1940.

     5.15 Disclosure. No report, financial statement, certificate or other information furnished
(whether in writing or orally) by or on behalf of any Loan Party to the Administrative Agent or any
Lender in connection with the transactions contemplated hereby and the negotiation of this
Agreement or delivered hereunder or under any other Loan Document (in each case, as modified or
supplemented by other information so furnished) contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with respect to
projected financial information, the Company represents only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time.

     5.16 Compliance with Laws. Each of the Company and each of its Subsidiaries is in compliance
in all material respects with the requirements of all Laws and all orders, writs, injunctions and
decrees applicable to it or to its properties, except in such instances in which (a) such
requirement of Law or order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted or (b) the failure to comply therewith, either
individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

     5.17 [Intentionally deleted.]

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     5.18 Representations as to Foreign Obligors. Each of the Company and each Foreign Obligor
represents and warrants to the Administrative Agent, the Swing Line Lenders, the L/C Issuers, and
the Lenders that:

     (a) Such Foreign Obligor is subject to civil and commercial Laws with respect to its
obligations under this Agreement and the other Loan Documents to which it is a party (collectively
as to such Foreign Obligor, the “Applicable Foreign Obligor Documents”), and the execution,
delivery and performance by such Foreign Obligor of the Applicable Foreign Obligor Documents
constitute and will constitute private and commercial acts and not public or governmental acts.
Neither such Foreign Obligor nor any of its property has any immunity from jurisdiction of any
court or from any legal process (whether through service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) under the laws of the jurisdiction in which
such Foreign Obligor is organized and existing in respect of its obligations under the Applicable
Foreign Obligor Documents.

     (b) The Applicable Foreign Obligor Documents are in proper legal form under the Laws of the
jurisdiction in which such Foreign Obligor is organized and existing for the enforcement thereof
against such Foreign Obligor under the Laws of such jurisdiction, and to ensure the legality,
validity, enforceability, priority or admissibility in evidence of the Applicable Foreign Obligor
Documents. It is not necessary to ensure the legality, validity, enforceability, priority or
admissibility in evidence of the Applicable Foreign Obligor Documents that the Applicable Foreign
Obligor Documents be filed, registered or recorded with, or executed or notarized before, any court
or other authority in the jurisdiction in which such Foreign Obligor is organized and existing or
that any registration charge or stamp or similar tax be paid on or in respect of the Applicable
Foreign Obligor Documents or any other document, except for (i) any such filing, registration,
recording, execution or notarization as has been made or is not required to be made until the
Applicable Foreign Obligor Document or any other document is sought to be enforced and (ii) any
charge or tax as has been timely paid.

     (c) There is no tax, levy, impost, duty, fee, assessment or other governmental charge, or any
deduction or withholding, imposed by any Governmental Authority in or of the jurisdiction in which
such Foreign Obligor is organized and existing either (i) on or by virtue of the execution or
delivery of the Applicable Foreign Obligor Documents or (ii) on any payment to be made by such
Foreign Obligor pursuant to the Applicable Foreign Obligor Documents, except as has been disclosed
to the Administrative Agent.

     (d) The execution, delivery and performance of the Applicable Foreign Obligor Documents
executed by such Foreign Obligor are, under applicable foreign exchange control regulations of the
jurisdiction in which such Foreign Obligor is organized and existing, not subject to any
notification or authorization except (i) such as have been made or obtained or (ii) such as cannot
be made or obtained until a later date (provided that any notification or authorization
described in clause (ii) shall be made or obtained as soon as is reasonably practicable).

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ARTICLE VI

AFFIRMATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the
Company shall, and shall (except in the case of the covenants set forth in Sections 6.01,
6.02, and 6.03) cause each Subsidiary to:

     6.01 Financial Statements. Deliver to the Administrative Agent, in form and detail
satisfactory to the Administrative Agent:

     (a) as soon as available, but in any event within 90 days after the end of each fiscal year of
the Company, a consolidated balance sheet of the Company and its Subsidiaries as at the end of such
fiscal year, and the related consolidated statements of income or operations, shareholders’ equity
and cash flows for such fiscal year, setting forth in each case in comparative form the figures for
the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, audited
and accompanied by (i) a report and opinion of a Registered Public Accounting Firm of nationally
recognized standing reasonably acceptable to the Required Lenders, which report and opinion shall
be prepared in accordance with generally accepted auditing standards and applicable Securities Laws
and shall not be subject to any “going concern” or like qualification or exception or any
qualification or exception as to the scope of such audit and (ii) an attestation report of such
Registered Public Accounting Firm as to the Borrower’s internal controls pursuant to Section 404 of
Sarbanes-Oxley, and;

     (b) as soon as available, but in any event within 45 days after the end of each of the first
three fiscal quarters of each fiscal year of the Company (commencing with the fiscal quarter ended
September 30, 2006), a consolidated balance sheet of the Company and its Subsidiaries as at the end
of such fiscal quarter, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal quarter and for the portion of the Company’s
fiscal year then ended, setting forth in each case in comparative form the figures for the
corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the
previous fiscal year, all in reasonable detail, certified by a Responsible Officer of the Company
as fairly presenting the financial condition, results of operations, shareholders’ equity and cash
flows of the Company and its Subsidiaries in accordance with GAAP, subject only to normal year-end
audit adjustments and the absence of footnotes.

As to any information contained in materials furnished pursuant to Section 6.02(c), the
Company shall not be separately required to furnish such information under clause (a) or (b) above,
but the foregoing shall not be in derogation of the obligation of the Company to furnish the
information and materials described in clauses (a) and (b) above at the times specified therein.

     6.02 Certificates; Other Information. Deliver to the Administrative Agent, in form and detail
satisfactory to the Administrative Agent:

     (a) concurrently with the delivery of the financial statements referred to in Sections
6.01(a) and (b), a duly completed Compliance Certificate signed by a Responsible
Officer of the Company;

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     (b) promptly after any request by the Administrative Agent, copies of any detailed audit
reports, management letters or recommendations submitted to the board of directors (or the audit
committee of the board of directors) of the Company by independent accountants in connection with
the accounts or books of the Company or any Subsidiary, or any audit of any of them;

     (c) promptly after the same are available, copies of each annual report, definitive proxy or
financial statement or other report or communication sent to the stockholders of the Company, and
copies of all annual and quarterly reports, all reports on Form 8-K and all effective registration
statements which the Company may file or be required to file with the SEC pursuant to the
Securities Act of 1933, and any filing under Sections 13 or 15(d) of the Securities Exchange Act of
1934 that indicates that a Change of Control has occurred, and not otherwise required to be
delivered to the Administrative Agent pursuant hereto;

     (d) promptly, and in any event within ten Business Days after receipt thereof by any Loan
Party or any Subsidiary thereof, copies of each written notice or other written correspondence
received from the SEC concerning any investigation by the SEC regarding financial improprieties or
violations of law by the Company or any Subsidiary thereof; and

     (e) promptly, such additional information regarding the business, financial or corporate
affairs of the Company or any Subsidiary, or compliance with the terms of the Loan Documents, as
the Administrative Agent may from time to time reasonably request.

     Documents required to be delivered pursuant to Section 6.01(a) or (b) or
Section 6.02(c) (to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Company posts such documents, or provides a link thereto on
the Company’s website on the Internet at the website address listed on Schedule 10.02; or
(ii) on which such documents are posted on the Company’s behalf on an Internet or intranet website,
if any, to which each Lender and the Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by the Administrative Agent); provided that: (i)
the Company shall deliver paper copies of such documents to the Administrative Agent if so
requested thereby, each time that paper copies are so requested and (ii) the foregoing requirement
to deliver “paper copies” shall be deemed satisfied if the Company delivers to the Administrative
Agent by electronic mail electronic versions (i.e., soft copies) of the final executed form
of any such documents. Notwithstanding anything contained herein, in every instance the Company
shall be required to provide, within five Business Days of delivering an electronic version
thereof, paper copies of the Compliance Certificates required by Section 6.02(a) to the
Administrative Agent, which paper copies may not be in the form of electronic mail electronic
versions. Except for such Compliance Certificates, the Administrative Agent shall have no
obligation to request the delivery or to maintain copies of the documents referred to above, and in
any event shall have no responsibility to monitor compliance by the Company with any such request
for delivery, and each Lender shall be solely responsible for maintaining its copies of such
documents.

     The Administrative Agent shall, to the extent it receives items required to be delivered
pursuant to Section 6.01 or 6.02 and such items are not posted by the Company as
provided

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above, make the same available to the Lenders as hereinafter provided. Each Borrower hereby
acknowledges that the Administrative Agent, the Syndication Agent, and/or the Arrangers will make
available to the Lenders, the Swing Line Lenders, and the L/C Issuers materials and/or information
provided by or on behalf of such Borrower hereunder (collectively, “Borrower Materials”) by
posting the Borrower Materials on IntraLinks or another similar electronic system (the
“Platform”). All Borrower Materials delivered to the Administrative Agent by the Company
and all Borrower Materials received by the Lenders, in each case to the extent they constitute
Information, other than Borrower Materials filed with a governmental authority and available to the
public for review, shall be presumed to be confidential and to contain material non-public
information with respect to the Company and its subsidiaries for purposes of United States Federal
and state securities laws, and shall be treated by the Administrative Agent in accordance with
Section 10.07.

     6.03 Notices. Promptly notify the Administrative Agent:

     (a) of the occurrence of any Default;

     (b) of any matter that has resulted or could reasonably be expected to result in a Material
Adverse Effect;

     (c) of the occurrence of any ERISA Event that could reasonably be expected to result in
liability in excess of $10,000,000;

     (d) of any material change in accounting policies or financial reporting practices by the
Company or any Subsidiary that would affect the calculation of the financial covenants set forth in
Section 7.11; and

     (e) of any written announcement by Moody’s or S&P of any adverse change in a Debt Rating.

     Each notice pursuant to this Section shall be accompanied by a statement of a Responsible
Officer of the Company setting forth details of the occurrence referred to therein and stating what
action the Company has taken and proposes to take with respect thereto. Each notice pursuant to
Section 6.03(a) shall describe with particularity any and all provisions of this Agreement
and any other Loan Document that have been breached.

     6.04 [Intentionally deleted].

     6.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and
effect its legal existence and good standing under the Laws of the jurisdiction of its organization
except in a transaction permitted by Section 7.04 or 7.05; (b) take all reasonable
action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable
in the normal conduct of its business, except to the extent that failure to do any of the foregoing
could not reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all
of its registered patents, trademarks, trade names and service marks, the non-preservation of which
could reasonably be expected to have a Material Adverse Effect.

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     6.06 Maintenance of Properties. Maintain, preserve and protect all of its properties and
equipment necessary in the operation of its business in good working order and condition, ordinary
wear and tear excepted, except where the failure to do so could not reasonably be expected to have
a Material Adverse Effect.

     6.07 Maintenance of Insurance. Maintain with financially sound and reputable insurance
companies not Affiliates of the Company, insurance with respect to its properties and business
against loss or damage of the kinds customarily insured against by Persons engaged in the same or
similar business, of such types and in such amounts as are customarily carried under similar
circumstances by such other Persons.

     6.08 Compliance with Laws. Comply in all material respects with the requirements of all Laws
and all orders, writs, injunctions and decrees applicable to it or to its business or property,
except in such instances in which (a) such requirement of Law or order, writ, injunction or decree
is being contested in good faith by appropriate proceedings diligently conducted; or (b) the
failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.

     6.09 Books and Records. (a) Maintain proper books of record and account, in which full, true
and correct entries in conformity with GAAP consistently applied shall be made of all financial
transactions and matters involving the assets and business of the Company or such Subsidiary, as
the case may be; and (b) maintain such books of record and account in conformity with all
applicable requirements of any Governmental Authority having regulatory jurisdiction over the
Company or such Subsidiary, as the case may be, except where the failure to comply with clauses (a)
or (b) could not reasonably be expected to have a Material Adverse Effect.

     6.10 Inspection Rights. Permit representatives and independent contractors of the
Administrative Agent to visit and inspect any of its properties, to examine its corporate,
financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its
affairs, finances and accounts with its directors, officers, and independent public accountants,
all at the expense of the Company and at such reasonable times during normal business hours and as
often as may be reasonably desired, upon reasonable advance notice to the Company.

     6.11 Use of Proceeds. Use the proceeds of the Credit Extensions for working capital, capital
expenditures and other lawful corporate purposes not in contravention of any Law or of any Loan
Document.

     6.12 [Intentionally Deleted].

     6.13 Additional Guarantors. With respect to any new Material Domestic Subsidiary or Material
UK Subsidiary created or acquired after the Closing Date including without limitation pursuant to
Section 7.04(c), by any Loan Party, promptly (i) cause such new Subsidiary to become a
party to the applicable Subsidiary Guaranty (which shall be the Subsidiary Guaranty described in
clause (i) of the definition of Subsidiary Guaranty, in the case of a new Domestic Subsidiary (or a
first tier UK Subsidiary that is not a “controlled foreign corporation” under Section 957 of the
Code) and a Subsidiary Guaranty as described in clause (ii) of such definition, in the case of a
new UK Subsidiary), and (ii) if requested by the

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Administrative Agent, deliver to the Administrative Agent legal opinions relating to the
matters described above, which opinions shall be in form and substance, and from counsel,
reasonably satisfactory to the Administrative Agent. Notwithstanding the foregoing, if at any time
the aggregate book value of the consolidated assets of the Domestic Subsidiaries which are not
Subsidiary Guarantors exceeds $50,000,000, then the Loan Parties shall promptly (i) cause
additional Domestic Subsidiaries (regardless of whether such Subsidiaries are Material Domestic
Subsidiaries) to become parties to the applicable Subsidiary Guaranty (as provided above) so that
the aggregate book value of the consolidated assets of the Domestic Subsidiaries which are not
Subsidiary Guarantors is less than $50,000,000 and (ii) if requested by the Administrative Agent,
deliver to the Administrative Agent legal opinions relating to the matters described above, which
opinions shall be in form and substance, and from counsel, reasonably satisfactory to the
Administrative Agent.

ARTICLE VII

NEGATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the
Company shall not, nor shall it permit any Subsidiary to, directly or indirectly:

     7.01 Liens. Create, incur, assume or suffer to exist any Lien upon any of its property,
assets or revenues, whether now owned or hereafter acquired, other than the following:

     (a) [Intentionally Deleted.]

     (b) Liens existing on the date hereof and listed on Schedule 7.01 and any renewals or
extensions thereof, provided that (i) the property covered thereby is not changed, (ii) the
amount secured or benefited thereby is not increased, (iii) the direct or any contingent obligor
with respect thereto is not changed, and (iv) any renewal or extension of the obligations secured
or benefited thereby is permitted by Section 7.03(b); and provided further that any
such Liens noted on Schedule 7.01 as to be released on or after the Closing Date shall
cease to be permitted hereunder if not released on the applicable date;

     (c) Liens for taxes not yet due or which are being contested in good faith and by appropriate
proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the
books of the applicable Person in accordance with GAAP;

     (d) carriers’, warehousemen’s, landlords’ mechanics’, materialmen’s, repairmen’s or other like
Liens arising in the ordinary course of business which are not overdue for a period of more than 30
days or which are being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the books of the applicable
Person;

     (e) pledges or deposits in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other social security legislation, other than any Lien
imposed by ERISA;

     (f) inchoate statutory Liens arising under ERISA;

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     (g) deposits or pledges to secure the performance of bids, tenders, trade contracts and leases
(other than Indebtedness), statutory obligations, surety and appeal bonds, performance bonds and
other obligations of a like nature incurred in the ordinary course of business;

     (h) zoning restrictions, easements, encroachments, rights-of-way, restrictive covenants, other
restrictions and other similar encumbrances affecting real property which, in the aggregate, are
not substantial in amount, and which do not in any case materially detract from the value of the
property subject thereto or materially interfere with the ordinary conduct of the business of the
applicable Person;

     (i) Liens securing judgments for the payment of money not constituting an Event of Default
under Section 8.01(h), and pre-judgment Liens created by or existing from any litigation or
legal proceeding that are being contested in good faith by appropriate proceedings, promptly
instituted and diligently conducted, for which adequate reserves have been made to the extent
required by GAAP, and which would not, upon becoming Liens securing judgments for the payment of
money, constitute an Event of Default under Section 8.01(h);

     (j) Liens securing Indebtedness permitted under Section 7.03(e); provided that
(i) such Liens do not at any time encumber any property other than the property financed by such
Indebtedness and the proceeds thereof (including without limitation insurance proceeds) and (ii)
the Indebtedness secured thereby does not exceed the cost or fair market value on the date of
acquisition, whichever is lower, of the property being acquired (including transportation and
installation costs, if any); and

     (k) Liens on the property or assets of a Person which becomes a Subsidiary after the date
hereof securing Indebtedness permitted by Section 7.03(f); provided that (i) such
Liens existed at the time such Person became a Subsidiary and were not created in anticipation
thereof, (ii) any such Lien is not spread to cover any additional property or assets after the time
such Person becomes a Subsidiary, and (iii) the amount of Indebtedness secured thereby is not
increased;

     (l) Liens on the property or assets of a Foreign Subsidiary, excluding Foreign Subsidiaries
that are parties to this Credit Agreement, securing indebtedness of Foreign Subsidiaries permitted
under Section 7.03(i) hereof;

     (m) Liens not otherwise permitted in clauses (a) through (l) above securing indebtedness in an
aggregate principal amount outstanding at any time not to exceed 10% of the Company’s Consolidated
Net Worth (as reflected on the consolidated balance sheet of the Company contained in the Audited
Financial Statements or most recently delivered to the Administrative Agent pursuant to Section
6.01(a) or (b), as applicable).

     7.02 [Intentionally Deleted].

     7.03 Indebtedness. Create, incur, assume or, except with respect to clauses (g) and (i) of
this Section 7.03, suffer to exist any Indebtedness, except:

     (a) Indebtedness under the Loan Documents;

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     (b) Indebtedness outstanding on the date hereof and listed on Schedule 7.03 and any
refinancings, refundings, renewals or extensions thereof; provided that (i) the amount of
such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension
except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and
expenses reasonably incurred, in connection with such refinancing and by an amount equal to any
existing commitments unutilized thereunder, it being understood that the amount of such
Indebtedness shall not be deemed to be increased if funds, raised in a public offering of debt
securities, are restricted to repayment of such Indebtedness, even if a period of up to 30 days (or
a longer period to the extent that such funds are escrowed pursuant to arrangements satisfactory to
the Administrative Agent) intervenes between the date such public offering closes and the date that
the applicable Indebtedness is repaid from such funds, and (ii) the terms relating to principal
amount, amortization, maturity, collateral (if any) and subordination (if any), and other material
terms taken as a whole, of any such refinancing, refunding, renewing or extending Indebtedness, and
of any agreement entered into and of any instrument issued in connection therewith, are no less
favorable in any material respect to the Loan Parties or the Lenders than the terms of any
agreement or instrument governing the Indebtedness being refinanced, refunded, renewed or extended
and the interest rate applicable to any such refinancing, refunding, renewing or extending
Indebtedness does not exceed the then applicable market interest rate;

     (c) Guarantees of the Company or any Subsidiary in respect of Indebtedness otherwise permitted
hereunder of the Company or any Subsidiary, and guarantees by the Company or any of its
Subsidiaries of the performance of contractual obligations (other than an obligation with respect
to indebtedness for borrowed money) of the Company or any Subsidiary thereof;

     (d) obligations (contingent or otherwise) of the Company or any Subsidiary existing or arising
under any Swap Contract, provided that (i) such obligations are (or were) entered into by
such Person in the ordinary course of business for the purpose of directly mitigating risks
associated with liabilities, commitments, investments, assets, or property held or reasonably
anticipated by such Person, or changes in the value of securities issued by such Person, and not
for purposes of speculation or taking a “market view;” and (ii) such Swap Contract does not contain
any provision exonerating the non-defaulting party from its obligation to make payments on
outstanding transactions to the defaulting party;

     (e) Indebtedness in respect of capital leases, Synthetic Lease Obligations and purchase money
obligations for fixed or capital assets acquired after the Closing Date within the limitations set
forth in Section 7.01(j);

     (f) Indebtedness of a Person which becomes a Subsidiary after the date hereof, provided that
(i) such Indebtedness existed at the time such Person became a Subsidiary and was not created in
anticipation thereof and (ii) immediately after giving effect to the acquisition of such Person by
the Company or any of its Subsidiaries no Default or Event of Default shall have occurred and be
continuing and the Company would be in compliance on a proforma basis with all financial covenants
after giving effect to such acquisition;

     (g) Indebtedness of the Company or any Subsidiary owed to the Company or any Subsidiary;
provided that if such Subsidiary to whom such Indebtedness is owed is not a

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Guarantor, then such Indebtedness (other than Indebtedness owed by a Foreign Subsidiary which
is not a Loan Party to another Foreign Subsidiary which is not a Loan Party) shall be subordinated
to the Obligations pursuant to terms set forth on Schedule 7.03A hereto;

     (h) [Intentionally Deleted]; and

     (i) Indebtedness of the Company or any Subsidiary provided that (i) the Company shall
be in compliance, on a pro forma basis after giving effect to such transactions, with the covenants
contained in this Article VII recomputed as of the last day of the most recently ended
fiscal quarter of the Company as if the transaction in question had occurred on the first day of
each relevant period for testing such compliance and (ii) the aggregate outstanding principal
amount of all Indebtedness of the Subsidiaries (other than Indebtedness permitted pursuant to
clause (g) above), shall not exceed 10% of the Company’s Consolidated Net Worth (as reflected on
the consolidated balance sheet of the Company contained in the Audited Financial Statements or most
recently delivered to the Administrative Agent pursuant to Section 6.01(a) or (b),
as applicable) at any time.

     7.04 Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into another
Person, or Dispose of (whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any
Person, except that, so long as no Default exists or would result therefrom:

     (a) any Subsidiary may merge with (i) the Company, provided that the Company shall be
the continuing or surviving Person, or (ii) any one or more other Subsidiaries, provided
that (A) when any Subsidiary that is a Loan Party is merging with another Subsidiary that is not a
Loan Party, a Loan Party (including, for purposes of the foregoing, a Person who becomes a Loan
Party contemporaneously with the closing of such merger) shall be the continuing or surviving
Person and (B) when any Wholly Owned Subsidiary is merging with another Subsidiary, a Wholly Owned
Subsidiary shall be the continuing or surviving Person;

     (b) any Subsidiary may convert from one form of business organization to another, or change
its jurisdiction of incorporation in accordance with applicable law,

     (c) any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary
liquidation or otherwise) to the Company or to another Subsidiary; provided that (A) if the
transferor in such a transaction is a Loan Party, then the transferee must either be the Company or
another Loan Party and (B) if the transferor in such a transaction is a Wholly Owned Subsidiary,
then the transferee must either be the Company or a Wholly Owned Subsidiary.

     (d) the Company or any of its Subsidiaries may make any Acquisition (by purchase or merger of
the acquired Person with the Company or a Subsidiary thereof) provided that the Company or the
applicable Subsidiary is the acquiring or surviving entity (or, with respect to any merger by a
Subsidiary of the Company, the surviving entity becomes a Subsidiary in the transaction).

     7.05 Dispositions. Make any Disposition or enter into any agreement to make any Disposition,
except:

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     (a) Dispositions of obsolete or worn out property, whether now owned or hereafter acquired, in
the ordinary course of business;

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

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

     (d) Dispositions of property (i) by the Company to any Subsidiary, or (ii) by any Subsidiary
to the Company or to a Subsidiary; provided that if the transferor of such property is a
Loan Party, the transferee thereof must either be the Company or a Subsidiary Guarantor;

     (e) Dispositions permitted by Section 7.04;

     (f) Non-exclusive licenses of intellectual property in the ordinary course of business; and

     (g) Dispositions by the Company and its Subsidiaries not otherwise permitted under this
Section 7.05; provided that (i) at the time of such Disposition, no Default shall
exist or would result from such Disposition and (ii) the aggregate book value of all property
Disposed of in reliance on this clause (g) shall not exceed, on a cumulative basis since the
Closing Date, an amount equal to 33% of the Company’s Consolidated Net Worth (as reflected on the
consolidated balance sheet of the Company contained in the Audited Financial Statements or most
recently delivered to the Administrative Agent pursuant to Section 6.01(a) or (b),
as applicable); provided that for purposes of calculating the aggregate book value of all
property Disposed of in reliance on this clause (g), the Company may exclude from such total the
amount of any net cash proceeds received from any such Disposition to the extent that the Company
or any Subsidiary has reinvested such proceeds in replacement property or other capital assets
within 365 days after receipt of such proceeds;

provided, however, that any Disposition pursuant to clauses (c) and (g) shall be
for fair market value, as reasonably determined by the Company and certified to the Administrative
Agent in writing by a Responsible Officer of the Company.

     7.06 Restricted Payments. Declare or make, directly or indirectly, any Restricted Payment, or
incur any obligation (contingent or otherwise) to do so, or, in the case of the Subsidiaries, issue
or sell any Equity Interests other than to the Company or any of its Subsidiaries, except that:

     (a) each Subsidiary of the Company may make Restricted Payments to the Company or other
Subsidiaries;

     (b) each Subsidiary of the Company may redeem any of its Equity Interests held by the Company
or any Subsidiary of the Company; and

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     (c) the Company and its Subsidiaries may make any other Restricted Payment, so long as no
Default shall have occurred and be continuing at the time of the making of such Restricted Payment
or would result therefrom.

     7.07 Change in Nature of Business. Engage in any material line of business substantially
different from those lines of business conducted by the Company and its Subsidiaries on the date
hereof or any business substantially related or incidental thereto.

     7.08 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate
of the Company, whether or not in the ordinary course of business, other than on fair and
reasonable terms substantially as favorable to the Company or such Subsidiary as would be
obtainable by the Company or such Subsidiary at the time in a comparable arm’s length transaction
with a Person other than an Affiliate, provided that the foregoing restriction shall not
apply to (i) non-exclusive licenses of IP Rights, (ii) reasonable and customary compensation
programs for officers and directors of the Company or its Subsidiaries as approved by the Board of
Directors of the Company or its Subsidiaries, as applicable, and (iii) transactions between or
among (A) any of the Company and its Wholly-Owned Subsidiaries with the Company or its Wholly-Owned
Subsidiaries, (B) the Company or any Subsidiary thereof with Voest Alpine, and (C) the Company or
any Subsidiary thereof with Tianjin Grant TPCO Drilling Tools Co., Ltd. or Tianjin Grant Prideco
TPCO Oilfield Products Co., Ltd.

     7.09 Burdensome Agreements. Except (i) as set forth on Schedule 7.09, (ii) for
restrictions or conditions imposed by law, (iii) for restrictions and conditions contained in any
agreement of a Foreign Subsidiary relating to Indebtedness otherwise permitted under this Agreement
entered into after the date hereof (which may include extensions, renewals, amendments or
modifications of restrictions and conditions existing on the date hereof), so long as such
restrictions and conditions apply only to such Foreign Subsidiary and its property and assets, (iv)
for customary restrictions and conditions in agreements relating to the sale of a Subsidiary
pending such sale, if such restrictions and conditions apply only to the Subsidiary to be sold and
such sale is permitted hereunder; enter into any Contractual Obligation (other than this Agreement
or any other Loan Document) that limits the ability (a) of any Subsidiary to make dividends,
distributions, or other payments to the Company or any Subsidiary or to otherwise transfer property
to the Company or any Subsidiary or (b) of any Subsidiary to Guarantee the Indebtedness of the
Company.

     7.10 Use of Proceeds. Use the proceeds of any Credit Extension, whether directly or
indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock
(within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of
purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose.

     7.11 Financial Covenants.

     (a) Consolidated Total Indebtedness to Total Capitalization Ratio. Permit the
Consolidated Total Indebtedness to Total Capitalization Ratio at any time to be greater than 50%.

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     (b) Consolidated Interest Coverage Ratio. Permit the Consolidated Interest Coverage
Ratio as of the end of any fiscal quarter of the Company to be less than 2.50 : 1.00.

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

     8.01 Events of Default. Any of the following shall constitute an Event of Default:

     (a) Non-Payment. Any Borrower or any other Loan Party fails to pay (i) when and as
required to be paid herein, and in the currency required hereunder, any amount of principal of any
Loan or any L/C Obligation, or (ii) within three days after the same becomes due, any interest on
any Loan or on any L/C Obligation, or any fee due hereunder within such three day period, or (iii)
within five days after the same becomes due, any other amount payable hereunder or under any other
Loan Document; or

     (b) Specific Covenants. The Company fails to perform or observe any term, covenant or
agreement contained in any of Sections 6.03, 6.05, 6.10, 6.11 or
6.13 or Article VII, or any Subsidiary Guarantor fails to perform or observe any
term, covenant or agreement contained in Section 1 of the Subsidiary Guaranty; or

     (c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or
agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part
to be performed or observed and such failure continues for 30 days (or such other applicable grace
period as is provided in such Loan Document); or

     (d) Representations and Warranties. Any representation, warranty, certification or
statement of fact made or deemed made by or on behalf of the Company or any other Loan Party
herein, in any other Loan Document, or in any document delivered in connection herewith or
therewith shall be incorrect or misleading in any material respect when made or deemed made; or

     (e) Cross-Default. (i) The Company or any Subsidiary (A) fails to make any payment
when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise)
in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness
under Swap Contracts) having an aggregate principal amount (including undrawn committed or
available amounts and including amounts owing to all creditors under any combined or syndicated
credit arrangement) of more than the Threshold Amount, or (B) fails to observe or perform any other
agreement or condition relating to any such Indebtedness, or Guarantee, of an amount in excess of
the Threshold Amount, or contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event occurs, the effect of which default or other event is to cause, or to
permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such
Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or
to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or
an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated
maturity, or such Guarantee to become payable or cash collateral in excess of the Threshold Amount
in respect thereof to be demanded; or (ii) there

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occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract)
resulting from (A) any event of default under such Swap Contract as to which the Company or any
Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event
(as so defined) under such Swap Contract as to which the Company or any Subsidiary is an Affected
Party (as so defined) and, in either event, the Swap Termination Value owed by the Company or such
Subsidiary as a result thereof is greater than the Threshold Amount; or

     (f) Insolvency Proceedings, Etc. Any Loan Party institutes or consents to the
institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of
its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or
similar officer is appointed without the application or consent of such Person and the appointment
continues undischarged or unstayed for 60 calendar days; or any proceeding under any Debtor Relief
Law relating to any such Person or to all or any material part of its property is instituted
without the consent of such Person and continues undismissed or unstayed for 60 calendar days, or
an order for relief is entered in any such proceeding; or

     (g) Inability to Pay Debts; Attachment. (i) Any Loan Party becomes unable or admits
in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ
or warrant of attachment or execution or similar process is issued or levied against all or any
material part of the property of any such Person and is not released, vacated or fully bonded
within 30 days after its issue or levy; or

     (h) Judgments. There is entered against any Loan Party (i) a final judgment or order
for the payment of money in an aggregate amount exceeding the Threshold Amount (to the extent not
covered by independent third-party insurance as to which the insurer does not dispute coverage), or
(ii) any one or more non-monetary final judgments that have, or could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A)
enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is
a period of 10 consecutive days during which a stay of enforcement of such judgment, by reason of a
pending appeal or otherwise, is not in effect; or

     (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer
Plan which has resulted or would reasonably be expected to result in liability of the Company under
Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in
excess of the Threshold Amount, or (ii) the Company or any ERISA Affiliate fails to pay when due,
after the expiration of any applicable grace period, any installment payment with respect to its
withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount
in excess of the Threshold Amount; or

     (j) Invalidity of Loan Documents. Any Loan Document, at any time after its execution
and delivery and for any reason other than as expressly permitted hereunder or satisfaction in full
of all the Obligations, ceases to be in full force and effect; or any Loan Party or any other
Person contests in any manner the validity or enforceability of any Loan Document;

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or any Loan Party denies that it has any or further liability or obligation under any Loan
Document, or purports to revoke, terminate or rescind any Loan Document; or

     (k) Change of Control. There occurs any Change of Control.

     8.02 Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders,
take any or all of the following actions:

     (a) declare the commitment of each Lender to make Loans and any obligation of each L/C Issuer
to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall be
terminated;

     (b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document
to be immediately due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived by the Borrowers;

     (c) require that the Company and, in the case of L/C Obligations with respect to UK Issued
L/Cs, the Designated UK Borrowers, Cash Collateralize the L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

     (d) exercise on behalf of itself and the Lenders all rights and remedies available to it and
the Lenders under the Loan Documents;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to any Borrower under the Bankruptcy Code of the United States, the
Insolvency Act (UK) or under any similar laws, the obligation of each Lender to make Loans and any
obligation of each L/C Issuer to make L/C Credit Extensions shall automatically terminate, the
unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid
shall automatically become due and payable, and the obligation of the Company and the Designated UK
Borrowers to Cash Collateralize the L/C Obligations as aforesaid shall automatically become
effective, in each case without further act of the Administrative Agent or any Lender.

     8.03 Application of Funds. After the exercise of remedies provided for in Section
8.02 (or after the Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set forth in the proviso
to Section 8.02), any amounts received on account of the Obligations shall be applied by
the Administrative Agent in the following order:

     First, to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including fees, charges and disbursements of counsel to the
Administrative Agent and amounts payable under Article III) payable to the Administrative
Agent in its capacity as such;

     Second, to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders

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and the L/C Issuers (including fees, charges and disbursements of counsel to the respective
Lenders and L/C Issuers and amounts payable under Article III), ratably among them in
proportion to the respective amounts described in this clause Second payable to them;

     Third, to payment of that portion of the Obligations constituting accrued and unpaid
Letter of Credit Fees and interest on the Loans, L/C Borrowings, Unreimbursed Amounts with respect
to Bank Guaranties and other UK Issued L/Cs, and other Obligations, ratably among the Lenders and
the L/C Issuers in proportion to the respective amounts described in this clause Third
payable to them;

     Fourth, to payment of that portion of the Obligations constituting unpaid principal of
the Loans and L/C Borrowings, and Unreimbursed Amounts with respect to Bank Guaranties and other UK
Issued L/Cs ratably among the Lenders and the L/C Issuers in proportion to the respective amounts
described in this clause Fourth held by them;

     Fifth, to the Administrative Agent for the account of the L/C Issuers, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters
of Credit, ratably among the L/C Issuers in proportion to the respective amounts described in this
clause Fifth held by them; and

     Last, the balance, if any, after all of the Obligations have been indefeasibly paid in
full, to the Company or as otherwise required by Law.

Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount
of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings
under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral
after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be
applied to the other Obligations, if any, in the order set forth above.

Notwithstanding anything above to the contrary, after the exercise of remedies provided for in
Section 8.02 (or after the Loans have automatically become immediately due and payable and
the L/C Obligations have automatically been required to be Cash Collateralized as set forth in the
proviso to Section 8.02), the Cash Collateral provided by the UK Loan Parties (other than
ReedHycalog UK Holdings, LLP), and amounts received from the UK Loan Parties (other than
ReedHycalog UK Holdings, LLP), shall be applied only to the Obligations of the UK Loan Parties.

ARTICLE IX

ADMINISTRATIVE AGENT AND OTHER AGENTS

     9.01 Appointment and Authority.

     Each of the Lenders and the L/C Issuers hereby irrevocably appoints Wells Fargo to act on its
behalf as the Administrative Agent hereunder and under the other Loan Documents, and authorizes the
Administrative Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms hereof or thereof, together with such actions
and powers as are reasonably incidental thereto. The provisions of this Article are solely for the
benefit of the Administrative Agent, the Lenders, the Swing Line Lenders, and the

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L/C Issuers, and neither any Borrower nor any other Loan Party shall have rights as a third
party beneficiary of any of such provisions.

     9.02 Rights as a Lender. Each Person serving as Administrative 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 the Administrative Agent and the term “Lender” or “Lenders” shall, unless
otherwise expressly indicated or unless the context otherwise requires, include each Person serving
as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates
may accept deposits from, lend money to, act as the financial advisor or in any other advisory
capacity for and generally engage in any kind of business with the Borrowers or any Subsidiary or
other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without
any duty to account therefor to the Lenders.

     9.03 Exculpatory Provisions. The Administrative Agent shall not have any duties or
obligations except those expressly set forth for it herein and in the other Loan Documents.
Without limiting the generality of the foregoing, the Administrative Agent shall not:

     (a) be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing;

     (b) have any duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents
that the Administrative Agent is required to exercise as directed in writing by the Required
Lenders (or such other number or percentage of the Lenders as shall be expressly provided for
herein or in the other Loan Documents), provided that the Administrative Agent shall not be
required to take any action that, in its opinion or the opinion of its counsel, may expose the
Administrative Agent to liability or that is contrary to any Loan Document or applicable law; and

     (c) except as expressly set forth herein and in the other Loan Documents, have any duty to
disclose, and the Administrative Agent shall not be liable for the failure to disclose, any
information relating to any of the Borrowers or any of their respective Affiliates that is
communicated to or obtained by any Person serving as the Administrative Agent or any of its
Affiliates in any capacity.

     The Administrative Agent shall not be liable for any action taken or not taken by it (i) with
the consent or at the request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Sections 10.01 and 8.02) or (ii)
in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall
not be deemed to have knowledge of any Default unless and until notice describing such Default is
given to the Administrative Agent by the Company, a Lender, a Swing Line Lender, or an L/C Issuer.

     The Administrative 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 or
any other Loan Document, (ii) the contents of any certificate, report or other

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document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or conditions set
forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document 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 the
Administrative Agent.

     9.04 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing (including any electronic message,
Internet or intranet website posting or other distribution) believed by it to be genuine and to
have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed by it to have been
made by the proper Person, and shall not incur any liability for relying thereon. In determining
compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of
Credit, that by its terms must be fulfilled to the satisfaction of a Swing Line Lender, a Lender,
or an L/C Issuer, the Administrative Agent may presume that such condition is satisfactory to such
Swing Line Lender, Lender, or L/C Issuer unless the Administrative Agent shall have received notice
to the contrary from such Swing Line Lender, Lender, or L/C Issuer prior to the making of such Loan
or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel
(who may be counsel for the Company), 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.

     9.05 Delegation of Duties. The Administrative Agent may perform any and all of its duties and
exercise its rights and powers hereunder or under any other Loan Document by or through any one or
more sub-agents appointed by it. The Administrative Agent and any such sub-agent may perform any
and all of its duties and exercise its rights and powers by or through their respective Related
Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the
Related Parties of the Administrative 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 the Administrative Agent.

     9.06 Resignation of Administrative Agent. The Administrative Agent may at any time give
notice of its resignation to the Lenders, the L/C Issuers and the Company. Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, in consultation with the
Company, to appoint a successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States. If no such successor shall have
been so appointed by the Required Lenders 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 and the L/C Issuers, appoint a successor
Administrative Agent meeting the qualifications set forth above; provided that if the
retiring Administrative Agent shall notify the Company and the Lenders that no qualifying Person
has accepted such appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative Agent shall be discharged from its
duties and obligations hereunder and under the other Loan Documents

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(except that in the case of any collateral security held by the Administrative Agent on behalf
of the Lenders or the L/C Issuers under any of the Loan Documents, the retiring Administrative
Agent shall continue to hold such collateral security until such time as a successor Administrative
Agent is appointed) and (2) all payments, communications and determinations provided to be made by,
to or through the Administrative Agent shall instead be made by or to each Lender, Swing Line
Lender, and L/C Issuer directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this Section. Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, as applicable, such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring (or retired)
Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its
duties and obligations hereunder or under the other Loan Documents (if not already discharged
therefrom as provided above in this Section). The fees payable by the Company to a successor
Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed
between the Company and such successor. After the retiring Administrative Agent’s resignation
hereunder and under the other Loan Documents, the provisions of this Article and Section
10.04 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 the retiring Administrative Agent was acting as Administrative Agent.

     Any resignation by Wells Fargo as Administrative Agent pursuant to this Section shall also
constitute its resignation as an L/C Issuer and as US Swing Line Lender. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of Wells Fargo, as retiring L/C
Issuer and retiring US Swing Line Lender, (b) Wells Fargo, as retiring L/C Issuer and retiring US
Swing Line Lender, shall be discharged from all of its respective duties and obligations hereunder
or under the other Loan Documents, and (c) the successor L/C Issuer shall issue letters of credit
in substitution for the Letters of Credit, if any, issued by Wells Fargo, as retiring L/C Issuer
and outstanding at the time of such succession or make other arrangements satisfactory to Wells
Fargo, as retiring L/C Issuer, to effectively assume the obligations of the retiring L/C Issuer
with respect to such Letters of Credit.

     9.07 Non-Reliance on Administrative Agent and Other Lenders. Each Lender, each Swing Line
Lender, and each L/C Issuer acknowledges that it has, independently and without reliance upon
Administrative Agent or any other Lender or any of their Related Parties 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, each Swing Line Lender, and each L/C Issuer also
acknowledges that it will, independently and without reliance upon Administrative Agent or any
other Lender or any of their Related Parties 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 other Loan Document or any related agreement
or any document furnished hereunder or thereunder.

     9.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, none of the
Bookrunners, Arrangers, Documentation Agents, or Syndication Agents listed on the cover page hereof
shall have any powers, duties or responsibilities under this Agreement or any of the

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other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a
Swing Line Lender, a Lender or an L/C Issuer hereunder.

     9.09 Administrative Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Loan Party, the Administrative Agent
(irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable
as herein expressed or by declaration or otherwise and irrespective of whether the Administrative
Agent shall have made any demand on any Borrower) shall be entitled and empowered, by intervention
in such proceeding or otherwise:

     (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid
and to file such other documents as may be necessary or advisable in order to have the claims of
the Lenders, the L/C Issuers, the Swing Line Lenders, and the Administrative Agent (including any
claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C
Issuers, the Swing Line Lenders, and the Administrative Agent, and their respective agents and
counsel, and all other amounts due the Lenders, the L/C Issuers, the Swing Line Lenders, and the
Administrative Agent under Sections 2.03(i) and (j), 2.09 and
10.04) allowed in such judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender, each Swing Line Lender, and
each L/C Issuer to make such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to the Lenders, the
Swing Line Lenders, and the L/C Issuers, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its
agents and counsel, and any other amounts due the Administrative Agent under Sections 2.09
and 10.04.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender, Swing Line Lender, or L/C Issuer any plan of
reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of
any Lender, Swing Line Lender, or L/C Issuer or to authorize the Administrative Agent to vote in
respect of the claim of any Lender, Swing Line Lender, or L/C Issuer in any such proceeding.

     9.10 Guaranty Matters. The Lenders, the Swing Line Lenders, and the L/C Issuers irrevocably
authorize the Administrative Agent, at its option and in its discretion, to release any Subsidiary
Guarantor from its obligations under the Subsidiary Guaranty if such Person ceases to be a
Subsidiary as a result of a transaction permitted hereunder.

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     Upon request by the Administrative Agent at any time, the Required Lenders will confirm in
writing the Administrative Agent’s authority to release any Subsidiary Guarantor from its
obligations under the Guaranty pursuant to this Section 9.10.

ARTICLE X

MISCELLANEOUS

     10.01 Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other
Loan Document, and no consent to any departure by the Company or any other Loan Party therefrom,
shall be effective unless in writing signed by the Required Lenders and the Company or the
applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each
such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no such amendment, waiver or
consent shall:

     (a) waive any condition set forth in Section 4.01(a)-(c) without the written consent
of each Lender;

     (b) extend or increase the Commitment, or UK Commitment, as applicable, of any Lender (or
reinstate any Commitment terminated pursuant to Section 8.02) without the written consent
of such Lender;

     (c) postpone any date fixed by this Agreement or any other Loan Document for any payment or
mandatory prepayment of principal, interest, fees or other amounts due to the Lenders (or any of
them) hereunder or under any other Loan Document without the written consent of each Lender
directly affected thereby;

     (d) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (v) of the final proviso to this Section 10.01) any fees
or other amounts payable hereunder or under any other Loan Document, or change the manner of
computation of any financial ratio (including any change in any applicable defined term) used in
determining the Applicable Rate that would result in a reduction of any interest rate on any Loan
or any fee payable hereunder without the written consent of each Lender directly affected thereby;
provided, however, that only the consent of the Required Lenders shall be necessary
to amend the definition of “Default Rate” or to waive any obligation of any Borrower to pay
interest or Letter of Credit Fees at the Default Rate;

     (e) change Section 2.13 or Section 8.03 in a manner that would alter the pro
rata sharing of payments or order of application of payments required thereby without the written
consent of each Lender;

     (f) amend Section 1.05 or the definition of “Alternative Currency” without the written
consent of each Lender;

     (g) change any provision of this Section or the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to amend, waive or
otherwise modify any rights hereunder or make any determination or grant any consent hereunder
without the written consent of each Lender; or

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     (h) release the Company from the Company Guaranty or all or substantially all of the value of
the Subsidiary Guaranty without the written consent of each Lender.

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by each affected L/C Issuer in addition to the Lenders required above, affect
the rights or duties of the L/C Issuers under this Agreement or any Issuer Document relating to any
Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless
in writing and signed by the Administrative Agent in addition to the Lenders required above, affect
the rights or duties of the Administrative Agent under this Agreement or any other Loan Document;
(iii) no amendment, waiver or consent shall, unless in writing and signed by each affected Swing
Line Lender in addition to the Lenders required above, affect the rights or duties of the Swing
Line Lenders under this Agreement or any other Loan Document; (iv) Section 10.06(h) may not
be amended, waived or otherwise modified without the consent of each Granting Lender all or any
part of whose Loans are being funded by an SPC at the time of such amendment, waiver or other
modification; and (v) each Fee Letter may be amended, or rights or privileges thereunder waived, in
a writing executed only by the parties thereto. Notwithstanding anything to the contrary herein,
no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent
hereunder, except that the Commitment, or UK Commitment, as applicable, of such Lender may not be
increased or extended without the consent of such Lender.

     10.02 Notices; Effectiveness; Electronic Communication.

     (a) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in subsection (b) below), 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 telecopier as
follows, and all notices and other communications expressly permitted hereunder to be given by
telephone shall be made to the applicable telephone number, as follows:

     (i) if to the Borrowers, the Administrative Agent, any L/C Issuer, or any Swing Line
Lender, to the address, telecopier number, electronic mail address or telephone number
specified for such Person on Schedule 10.02; and

     (ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall
be deemed to have been given when received; notices sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next business day for the recipient).
Notices delivered through electronic communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

     (b) Electronic Communications. Notices and other communications to the Lenders and
the L/C Issuers hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent, provided that the foregoing shall not apply to notices to any Lender or

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L/C Issuer pursuant to Article II if such Lender or L/C Issuer, as applicable, has
notified the Administrative Agent that it is incapable of receiving notices under such Article by
electronic communication. Each of the Administrative Agent and the Company 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.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

     (c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR
THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent, the Syndication
Agent, the Documentation Agent, or any of their respective Related Parties (collectively, the
“Agent Parties”) have any liability to any Borrower, any Lender, any Swing Line Lender, any
L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of any kind
(whether in tort, contract or otherwise) arising out of any Borrower’s or the Administrative
Agent’s or Syndication Agent’s transmission of Borrower Materials through the Internet, except to
the extent that such losses, claims, damages, liabilities or expenses are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Agent Party; provided, however, that in no
event shall any Agent Party have any liability to any Borrower, any Lender, any Swing Line Lender,
any L/C Issuer or any other Person for indirect, special, incidental, consequential or punitive
damages (as opposed to direct or actual damages).

     (d) Change of Address, Etc. Each of the Borrowers, the Administrative Agent, the
Swing Line Lenders, and the L/C Issuers may change its address, telecopier or telephone number for
notices and other communications hereunder by notice to the other parties hereto. Each other
Lender may change its address, telecopier or telephone number for notices and other communications
hereunder by notice to the Company, the Administrative Agent, each L/C Issuer, and each Swing Line
Lender. In addition, each Lender agrees to notify the Administrative Agent from time to time to
ensure that each of the Administrative Agent has on

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record (i) an effective address, contact name, telephone number, telecopier number and
electronic mail address to which notices and other communications may be sent and (ii) accurate
wire instructions for such Lender.

     (e) Reliance by Administrative Agent, Swing Line Lenders, L/C Issuers and Lenders.
The Administrative Agent, Swing Line Lenders, L/C Issuers and Lenders shall be entitled to rely and
act upon any notices (including telephonic Committed Loan Notices and US Swing Line Loan Notices)
purportedly given by or on behalf of any Borrower even if (i) such notices were not made in a
manner specified herein, were incomplete or were not preceded or followed by any other form of
notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof. The Company shall indemnify the Administrative Agent, each Swing Line
Lender, each L/C Issuer, and each Lender, and the Related Parties of each of them, from all losses,
costs, expenses and liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of any Borrower. All telephonic notices to and other telephonic
communications with the Administrative Agent may be recorded by the Administrative Agent, and each
of the parties hereto hereby consents to such recording.

     10.03 No Waiver; Cumulative Remedies. No failure by any Lender or the Administrative Agent to
exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right,
remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise
of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein
provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided
by law.

     10.04 Expenses; Indemnity; Damage Waiver.

     (a) Costs and Expenses. The Company shall pay (i) all reasonable out-of-pocket
expenses incurred by the Syndication Agent, the Administrative Agent, and their respective
Affiliates (including the reasonable fees, charges and disbursements of counsel for each of the
Administrative Agent and Syndication Agent), in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution, delivery and
administration of this Agreement and the other Loan Documents or any amendments, modifications or
waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or
thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the L/C
Issuers in connection with the issuance, amendment, renewal or extension of any Letter of Credit or
any demand for payment thereunder and (iii) all out-of-pocket expenses incurred by the
Administrative Agent, the Syndication Agent, any Lender, any Swing Line Lender, or any L/C Issuer
(including the fees, charges and disbursements of any counsel for the Administrative Agent, the
Syndication Agent, any Lender, any Swing Line Lender, or any L/C Issuer), and shall pay all fees
and time charges for attorneys who may be employees of the Administrative Agent, the Syndication
Agent, any Lender, any Swing Line Lender, or any L/C Issuer, in connection with the enforcement or
protection of its rights (A) in connection with this Agreement and the other Loan Documents,
including its rights under this Section, or (B) in connection with the Loans made or Letters of
Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans or Letters of Credit.

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     (b) Indemnification by the Company. The Company shall indemnify the Administrative
Agent (and any sub-agent thereof), the Syndication Agent, the Documentation Agent, each Lender,
each Swing Line Lender, and each L/C Issuer, and each Related Party of any of the foregoing Persons
(each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless
from, any and all losses, claims, damages, liabilities and related reasonable expenses (including
the reasonable fees, charges and disbursements of any counsel for any Indemnitee), and shall
indemnify and hold harmless each Indemnitee from all fees and time charges and disbursements for
attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or asserted against
any Indemnitee by any third party or by any Borrower or any other Loan Party arising out of, in
connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto of their respective obligations hereunder or thereunder, the consummation of the
transactions contemplated hereby or thereby, or, in the case of the Administrative Agent (and any
sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other
Loan Documents, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds
therefrom (including any refusal by an L/C Issuer to honor a demand for payment under a Letter of
Credit if the documents presented in connection with such demand do not strictly comply with the
terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous
Materials on or from any property owned or operated by any Borrower or any of its Subsidiaries, or
any Environmental Liability related in any way to any 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, whether brought by a third party or
by the Company or any other Loan Party, and regardless of whether any Indemnitee is a party
thereto, in all cases, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE
COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNITEE; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the gross negligence or willful misconduct
of such Indemnitee or (y) result from a claim brought by the Company or any other Loan Party
against an Indemnitee for an intentional breach of such Indemnitee’s obligations hereunder or under
any other Loan Document, if the Company or such other Loan Party has obtained a final and
nonappealable judgment in its favor on such claim as determined by a court of competent
jurisdiction.

     (c) Reimbursement by Lenders. To the extent that the Company for any reason fails to
pay indefeasibly any amount required under subsection (a) or (b) of this Section to be paid by it
to the Administrative Agent (or any sub-agent thereof), the Syndication Agent, any L/C Issuer, any
Swing Line Lender, or any Related Party of any of the foregoing, each Lender (including the UK
Swing Line Lender) severally agrees to pay to the Administrative Agent (or any such sub-agent), the
Syndication Agent, such L/C Issuer, such Swing Line Lender, or such Related Party, as the case may
be, such Lender’s Applicable Percentage (UK Included) (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
(or any such sub-agent), the Syndication Agent, such L/C Issuer, or such Swing Line Lender in its
capacity as such, or against any Related Party of any of the foregoing acting for the

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Administrative Agent (or any such sub-agent), the Syndication Agent, such L/C Issuer, such
Swing Line Lender in connection with such capacity. The obligations of the Lenders under this
subsection (c) are subject to the provisions of Section 2.12(d).

     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, no Borrower shall assert, and hereby waives, any claim against any Indemnitee, on
any theory of liability, for special, indirect, consequential or punitive damages (as opposed to
direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.
No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the
use by unintended recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in connection with this
Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

     (e) Payments. All amounts due under this Section shall be payable not later than ten
Business Days after demand therefor.

     (f) Survival. The agreements in this Section shall survive the resignation of the
Administrative Agent, the Syndication Agent, the Swing Line Lenders, and the L/C Issuers, the
replacement of any Lender, the termination of the Aggregate Combined Commitments and the repayment,
satisfaction or discharge of all the other Obligations.

     10.05 Payments Set Aside. To the extent that any payment by or on behalf of any Borrower is
made to the Administrative Agent, the Syndication Agent, any L/C Issuer, any Swing Line Lender, or
any Lender, or the Administrative Agent, the Syndication Agent, any L/C Issuer, any Swing Line
Lender, or any Lender exercises its right of setoff, and such payment or the proceeds of such
setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by Administrative Agent,
the Syndication Agent, any L/C Issuer, any Swing Line Lender, or any Lender in its discretion) to
be repaid to a trustee, receiver or any other party, in connection with any proceeding under any
Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such setoff had not occurred, and (b) each Lender, L/C
Issuer, and Swing Line Lender severally agrees to pay to the Administrative Agent upon demand its
applicable share (without duplication) of any amount so recovered from or repaid by Administrative
Agent, plus interest thereon from the date of such demand to the date such payment is made at a
rate per annum equal to the applicable Overnight Rate from time to time in effect, in the
applicable currency of such recovery or payment. The obligations of the Lenders, the Swing Line
Lenders, and the L/C Issuers under clause (b) of the preceding sentence shall survive the payment
in full of the Obligations and the termination of this Agreement.

     10.06 Successors and Assigns.

     (a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and

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assigns permitted hereby, except that no Borrower may assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the Administrative Agent and
each Lender and no Lender may assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an Eligible Assignee in accordance with the provisions of subsection (b) of
this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of
this Section, (iii) by way of pledge or assignment of a security interest subject to the
restrictions of subsection (f) of this Section, or (iv) to an SPC in accordance with the provisions
of subsection (h) of this Section (and any other attempted assignment or transfer by any party
hereto 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, Participants to the extent provided in subsection (d) of this Section
and, to the extent expressly contemplated hereby, the Related Parties of the Administrative Agent,
the Syndication Agent, the Swing Line Lenders, the L/C Issuers and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment or UK Commitment, as applicable, and the Loans (including for purposes of
this subsection (b), participations in L/C Obligations and in Swing Line Loans) at the time owing
to it); provided that

     (i) except in the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the case of an assignment to
a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the
aggregate amount of the Commitment (which for this purpose includes Loans outstanding
thereunder) or, if the Commitment is not then in effect, the principal outstanding balance
of the Loans of the assigning Lender subject to each such assignment, determined as of the
date the Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as
of the Trade Date, shall not be less than $10,000,000 unless each of the Administrative
Agent and, so long as no Event of Default has occurred and is continuing, the Company
otherwise consents (each such consent not to be unreasonably withheld or delayed);
provided, however, that concurrent assignments to members of an Assignee
Group and concurrent assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has been met;

     (ii) 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 with respect to the
Loans or the Commitment assigned, except that this clause (ii) shall not apply to rights in
respect of Swing Line Loans;

     (iii) any assignment of a Commitment or UK Commitment, as applicable, must be approved
by the Administrative Agent, the L/C Issuers, and the Swing Line Lenders unless the Person
that is the proposed assignee is itself a Lender (whether or not the proposed assignee would
otherwise qualify as an Eligible Assignee); and the parties to

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each assignment shall execute and deliver to the Administrative Agent, an Assignment
and Assumption, together with a processing and recordation fee in the amount of $3,500,
provided, however, that the Administrative Agent may, in its sole
discretion, elect to waive such processing and recordation fee in the case of any
assignment. The Eligible Assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire;

     (iv) Any assignment by the UK Swing Line Lender shall be of all (and not less than all)
of its rights and obligations under this Agreement (including all of its UK Commitment and
the Loans (including for purposes of this subsection (b), participations in L/C Obligations
and in Swing Line Loans) at the time owing to it).

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest
assigned by such Assignment and Assumption, 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 Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption 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 3.01, 3.04, 3.05, and 10.04
with respect to facts and circumstances occurring prior to the effective date of such assignment.
Upon request, each Borrower (at its expense) shall execute and deliver a Note to the assignee
Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this subsection 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 subsection (d) of
this Section.

     (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrowers, shall maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments or UK Commitment, as applicable, of, and principal amounts of the
Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register shall be conclusive, and the Borrowers, 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 each of
the Borrowers, the Swing Line Lenders, and the L/C Issuers at any reasonable time and from time to
time upon reasonable prior notice. In addition, at any time that a request for a consent for a
material or substantive change to the Loan Documents is pending, any Lender may request and receive
from the Administrative Agent a copy of the Register.

     (d) Participations. Any Lender may at any time, without the consent of, or prior
notice to, any Borrower or the Administrative Agent, sell participations to any Person (other than
a natural person or the Company or any of the Company’s Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment or UK Commitment, as applicable, and/or the

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Loans (including such Lender’s participations in L/C Obligations and/or Swing Line 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 and (iii) the Borrowers, the Administrative Agent, the Swing Line
Lenders, the Lenders and the L/C Issuers shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Agreement. A Lender
shall notify the Company of any participation sold by such Lender, including the name of the
Participant, promptly following any 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 such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in the first proviso to
Section 10.01 that affects such Participant.

     (e) Limitation upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the Company’s prior written
consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to
the benefits of Section 3.01 unless the Company is notified of the participation sold to
such Participant and such Participant agrees, for the benefit of the Borrowers, to comply with
Section 3.01(e) as though it were a Lender.

     (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Note(s), if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as
a party hereto.

     (g) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

     (h) Special Purpose Funding Vehicles. Notwithstanding anything to the contrary
contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding
vehicle identified as such in writing from time to time by the Granting Lender to the
Administrative Agent and the Company (an “SPC”) the option to provide all or any part of
any Committed Loan that such Granting Lender would otherwise be obligated to make pursuant to this
Agreement; provided that (i) nothing herein shall constitute a commitment by any SPC to

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fund any Committed Loan, and (ii) if an SPC elects not to exercise such option or otherwise
fails to make all or any part of such Committed Loan, the Granting Lender shall be obligated to
make such Committed Loan pursuant to the terms hereof or, if it fails to do so, to make such
payment to the Administrative Agent as is required under Section 2.12(b)(ii). Each party
hereto hereby agrees that (i) neither the grant to any SPC nor the exercise by any SPC of such
option shall increase the costs or expenses or otherwise increase or change the obligations of the
Borrowers under this Agreement (including its obligations under Section 3.04), (ii) no SPC
shall be liable for any indemnity or similar payment obligation under this Agreement for which a
Lender would be liable, and (iii) the Granting Lender shall for all purposes, including the
approval of any amendment, waiver or other modification of any provision of any Loan Document,
remain the lender of record hereunder. The making of a Committed Loan by an SPC hereunder shall
utilize the Commitment of the Granting Lender to the same extent, and as if, such Committed Loan
were made by such Granting Lender. In furtherance of the foregoing, each party hereto hereby
agrees (which agreement shall survive the termination of this Agreement) that, prior to the date
that is one year and one day after the payment in full of all outstanding commercial paper or other
senior debt of any SPC, it will not institute against, or join any other Person in instituting
against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or liquidation
proceeding under the laws of the United States or any State thereof. Notwithstanding anything to
the contrary contained herein, any SPC may (i) with notice to, but without prior consent of the
Company and the Administrative Agent and with the payment of a processing fee in the amount of
$3,500, assign all or any portion of its right to receive payment with respect to any Committed
Loan to the Granting Lender and (ii) disclose on a confidential basis any non-public information
relating to its funding of Committed Loans to any rating agency, commercial paper dealer or
provider of any surety or Guarantee or credit or liquidity enhancement to such SPC.

     (i) Resignation as L/C Issuer or Swing Line Lender After Assignment. Notwithstanding
anything to the contrary contained herein, if at any time Wells Fargo or HSBC, as applicable,
assigns all of its Commitment or UK Commitment, as applicable, and Loans pursuant to subsection (b)
above, Wells Fargo may, (i) upon 30 days’ notice to the Company and the Lenders, resign as an L/C
Issuer and/or (ii) upon 30 days’ notice to the Company, resign as US Swing Line Lender, and HSBC
shall, upon effectiveness of any such assignment, cease to be an L/C Issuer and the UK Swing Line
Lender. In the event of any such resignation by Wells Fargo as L/C Issuer or US Swing Line Lender,
the Company shall be entitled to appoint from among the Lenders a successor L/C Issuer and/or US
Swing Line Lender hereunder; provided, however, that no failure by the Company to
appoint any such successor shall affect the resignation of Wells Fargo as an L/C Issuer or US Swing
Line Lender, as the case may be. In the event that HSBC assigns its UK Commitment, the assignee
thereof shall succeed HSBC as L/C Issuer with respect to UK Issued L/Cs and as UK Swing Line
Lender. If Wells Fargo or HSBC, as applicable, resigns as or ceases to be, as applicable, an L/C
Issuer, it shall retain all the rights, powers, privileges and duties of L/C Issuer hereunder with
respect to all Letters of Credit issued by it which are outstanding as of the effective date of its
resignation as, or ceasing to be, as applicable, an L/C Issuer and all L/C Obligations with respect
thereto (including the right to require the Lenders to make Base Rate Committed Loans or fund risk
participations in Unreimbursed Amounts pursuant to Section 2.03(c)). If Wells Fargo
resigns as US Swing Line Lender, it shall retain all the rights of a US Swing Line Lender provided
for hereunder with respect to US Swing Line Loans made by it and outstanding as of the effective
date of such resignation, including the right to require the Lenders to make Base Rate Committed
Loans or

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fund risk participations in outstanding US Swing Line Loans pursuant to Section 2.04.
Upon the appointment or succession of a successor L/C Issuer or Swing Line Lender, (a) such
successor shall succeed to and become vested with all of the rights, powers, privileges and duties
of the applicable retiring L/C Issuer or Swing Line Lender, as the case may be, and (b) the
successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if
any, issued by Wells Fargo or HSBC, as applicable, which are outstanding at the time of such
succession or make other arrangements satisfactory to Wells Fargo or HSBC, as applicable, to
effectively assume the obligations of Wells Fargo or HSBC, as applicable, with respect to such
Letters of Credit.

     10.07 Treatment of Certain Information; Confidentiality. The Administrative Agent, the
Lenders, the Swing Line Lenders, and the L/C Issuers agree to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to its Affiliates and
to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors
and representatives (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 authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the National Association of
Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any action or proceeding
relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or
thereunder, (f) subject to an agreement containing provisions substantially the same as those of
this Section, to (i) any assignee of or Participant in, or any prospective assignee of or
Participant in, any of its rights or obligations under this Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative transaction relating to a
Borrower and its obligations, (g) with the consent of the Company or (h) to the extent such
Information (x) becomes publicly available other than as a result of a breach of this Section or
(y) becomes available to Administrative Agent, any Lender, any Swing Line Lender, any L/C Issuer or
any of their respective Affiliates on a nonconfidential basis, and, to the knowledge of such
Person, without violation of any agreement or law in obtaining such information, from a source
other than the Company.

     For purposes of this Section, “Information” means all information received from the
Company or any Subsidiary relating to the Company or any Subsidiary or any of their respective
businesses, other than any such information that is available to Administrative Agent, any Lender,
any Swing Line Lender, or any L/C Issuer on a nonconfidential basis prior to disclosure by the
Company or any Subsidiary. 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.

     The Administrative Agent, the Lenders, the Swing Line Lenders, and the L/C Issuers acknowledge
that (a) the Information may include material non-public information concerning the Company or a
Subsidiary, as the case may be, (b) it has developed compliance procedures regarding the use of
material non-public information and (c) it will handle such material non-

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public information in accordance with applicable Law, including Federal and state securities
Laws.

     10.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each
Lender, each L/C Issuer and each of their respective Affiliates is hereby authorized at any time
and from time to time, to the fullest extent permitted by applicable law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final, in whatever currency)
at any time held and other obligations (in whatever currency) at any time owing by such Lender,
such L/C Issuer or any such Affiliate to or for the credit or the account of any Borrower against
any and all of the obligations of such Borrower now or hereafter existing under this Agreement or
any other Loan Document to such Lender or L/C Issuer, irrespective of whether or not such Lender or
L/C Issuer shall have made any demand under this Agreement or any other Loan Document and although
such obligations of such Borrower may be contingent or unmatured or are owed to a branch or office
of such Lender or L/C Issuer different from the branch or office holding such deposit or obligated
on such indebtedness. The rights of each Lender, each Swing Line Lender, each L/C Issuer, and
their respective Affiliates under this Section are in addition to other rights and remedies
(including other rights of setoff) that such Lender, L/C Issuer or their respective Affiliates may
have. Each Lender, each Swing Line Lender, and each L/C Issuer agrees to notify the Company and
the Administrative Agent promptly after any such setoff and application, provided that the
failure to give such notice shall not affect the validity of such setoff and application.

     10.09 Interest Rate Limitation. Notwithstanding anything to the contrary contained in any
Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If
the Administrative Agent, any Swing Line Lender, or any Lender shall receive interest in an amount
that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans
or, if it exceeds such unpaid principal, refunded to the Company. In determining whether the
interest contracted for, charged, or received by the Administrative Agent, any Swing Line Lender,
or any Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law,
(a) characterize any payment that is not principal as an expense, fee, or premium rather than
interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate,
allocate, and spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder.

     10.10 Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents 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 4.01, this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received counterparts hereof
that, when taken together, bear the signatures of each of the other parties hereto. 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.

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     10.11 Survival of Representations and Warranties. All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or
in connection herewith or therewith shall survive the execution and delivery hereof and thereof.
Such representations and warranties have been or will be relied upon by the Administrative Agent,
each Swing Line Lender, each L/C Issuer, and each Lender, regardless of any investigation made by
the Administrative Agent, any Swing Line Lender, any L/C Issuer, or any Lender or on their behalf
and notwithstanding that the Administrative Agent, any Swing Line Lender, any L/C Issuer, or any
Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and
shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall
remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.

     10.12 Severability. If any provision of this Agreement or the other Loan Documents is held to
be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the
remaining provisions of this Agreement and the other Loan Documents shall not be affected or
impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable provisions. The
invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

     10.13 Replacement of Lenders. If any Lender requests compensation under Section 3.04,
or if any Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, or if any Lender is a
Defaulting Lender or a Non-Consenting Lender (as such term is hereinafter defined) or if any other
circumstance exists hereunder that gives the Company the right to replace a Lender as a party
hereto, then the Company may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in, and consents required by, Section
10.06), all of its interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may be another Lender,
if a Lender accepts such assignment), provided that:

     (a) the Company shall have paid (or caused a Designated Borrower to pay) to the Administrative
Agent the assignment fee specified in Section 10.06(b);

     (b) such Lender shall have received payment of an amount equal to the outstanding principal of
its Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts payable to
it hereunder and under the other Loan Documents (including any amounts under Section 3.05)
from the assignee (to the extent of such outstanding principal and accrued interest and fees) or
the Company or applicable Designated Borrower (in the case of all other amounts);

     (c) in the case of any such assignment resulting from a claim for compensation under
Section 3.04 or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments thereafter; and

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     (d) such assignment does not conflict with applicable Laws.

     A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling the Company to
require such assignment and delegation cease to apply. As used in this Section, the term
“Non-Consenting Lender” means, with respect to any amendment or waiver to the provisions of
the Loan Documents that requires the approval of 100% of the Lenders pursuant to the provisions of
Section 10.01 hereof or any request by the Company for Eurocurrency Rate Loans to be made
in a currency other than those specifically listed in the definition of “Alternative Currency”, any
Lender that declines to approve any such amendment or waiver proposed by the Company or to make
Eurocurrency Rate Loans in such currency requested by the Company, as applicable, provided
that (x) Required Lenders have approved and consented to such amendment or waiver or such currency,
as applicable, and (y) the assignee of such Lender as proposed by the Company under this Section
would vote to approve such amendment or waiver or would make Eurocurrency Rate Loans in such
currency, as applicable.

     10.14 Governing Law; Jurisdiction; Etc.

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

     (b) SUBMISSION TO JURISDICTION. EACH BORROWER IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE
OF NEW YORK SITTING IN NEW YORK CITY 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 ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO 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 COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF
THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.
NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY BORROWER OR ITS
PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     (c) WAIVER OF VENUE. EACH BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT IN ANY

-112-

 

COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS
IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02, TO THE EXTENT PERMITTED BY APPLICABLE
LAW. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY APPLICABLE LAW.

     10.15 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY 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 ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON 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 AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

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

     10.17 Judgment Currency. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder or any other Loan Document in one currency into another
currency, the rate of exchange used shall be that at which in accordance with normal banking
procedures the Administrative Agent could purchase the first currency with such other currency on
the Business Day preceding that on which final judgment is given. The obligation of each Borrower
in respect of any such sum due from it to the Administrative Agent or the Lenders hereunder or
under the other Loan Documents shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than that in which such sum is denominated in accordance with the applicable
provisions of this Agreement (the “Agreement Currency”), be discharged only to the extent
that on the Business Day following receipt by the Administrative Agent of any sum adjudged to be so
due in the Judgment Currency, the Administrative Agent may in accordance with normal banking
procedures purchase the Agreement Currency with the Judgment Currency. If the amount of the
Agreement Currency so purchased is less than the sum

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originally due to the Administrative Agent from any Borrower in the Agreement Currency, such
Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the
Administrative Agent or the Person to whom such obligation was owing against such loss. If the
amount of the Agreement Currency so purchased is greater than the sum originally due to the
Administrative Agent in such currency, the Administrative Agent agrees to return the amount of any
excess to such Borrower (or to any other Person who may be entitled thereto under applicable law).

     10.18 Amendment and Restatement; Release of Security for Existing Credit Agreement.

     (a) This Agreement represents an amendment and restatement of the Existing Credit Agreement.
The indebtedness under the Existing Credit Agreement continues under this Agreement, and the
execution of this Agreement does not indicate a payment, satisfaction, novation, or discharge
thereof.

     (b) In connection with the execution of this Agreement and the amendment and restatement of
the Existing Credit Agreement, the Liens of the Administrative Agent under the Security Documents
(as defined in the Existing Credit Agreement) are hereby released and such Security Documents are
hereby terminated, in each case, effective upon the Closing Date. The Lenders (who were also
“Lenders” under the Existing Credit Agreement) acknowledge and agree to such release and
termination.

     10.19 ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL
AGREEMENT AMONG 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.

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	 	GRANT PRIDECO, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	James M. Mitchell

Treasurer
	 
	 	 	 	 
	 	 	GRANT PRIDECO, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Grant Prideco Holding, LLC,
	 

	 	 	 	its General Partner
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	James M. Mitchell

Treasurer
	 
	 	 	 	 
	 	 	REEDHYCALOG EURASIA LTD
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Gregor Ritchie

Director
	 
	 	 	 	 
	 	 	REEDHYCALOG UK LTD
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Gregor Ritchie

Director

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL
	 	 	ASSOCIATION, as Administrative Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	William S. Rogers

Vice President and Senior Relationship Manager
	 
	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL
	 	 	ASSOCIATION, as a Lender, an L/C Issuer,
	 	 	and US Swing Line Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	William S. Rogers

Vice President and Senior Relationship Manager

Signature Page to Amended and Restated Credit Agreement

 

 

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

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Claire Liu

Senior Vice President

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	 	HSBC BANK PLC, as Lender, UK Swing Line
	 	 	Lender and an L/C Issuer
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

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

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	 	CREDIT SUISSE, CAYMAN ISLANDS
	 	 	BRANCH, as Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	 	CITIBANK, N.A., as Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	 	NATEXIS BANQUES POPULAIRES, as
	 	 	Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Tim Polvado

Vice President and Manager
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Renaud d’Herbes

Senior Vice President and Regional

Manager

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	 	WHITNEY NATIONAL BANK, as Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	 	REGIONS BANK, as Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Signature Page to Amended and Restated Credit Agreement

 

 

SCHEDULE 1.01(a)

LOAN FUNDING ACCOUNTS

Schedule 1.01(a) to Amended and Restated Credit Agreement

-1-

 

SCHEDULE 1.01(b)

MANDATORY COST FORMULAE

	1.	 	The Mandatory Cost (to the extent applicable) is an addition to the interest rate to
compensate Lenders for the cost of compliance with:

	 	(a)	 	the requirements of the Bank of England and/or the Financial Services Authority
(or, in either case, any other authority which replaces all or any of its functions);
or
	 
	 	(b)	 	the requirements of the European Central Bank.

	2.	 	On the first day of each Interest Period (or as soon as practicable thereafter) the
Administrative Agent or the UK Swing Line Lender, as applicable, shall calculate, as a
percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in accordance
with the paragraphs set out below. The Mandatory Cost will be calculated by the
Administrative Agent or the UK Swing Line Lender, as applicable, as a weighted average of the
Lenders’ Additional Cost Rates (weighted in proportion to the percentage participation of each
Lender in the relevant Loan) and will be expressed as a percentage rate per annum. The
Administrative Agent or the UK Swing Line Lender, as applicable, will, at the request of the
Company or any Lender, deliver to the Company or such Lender as the case may be, a statement
setting forth the calculation of any Mandatory Cost.

	3.	 	The Additional Cost Rate for any Lender lending from a Lending Office in a Participating
Member State will be the percentage notified by that Lender to the Administrative Agent or the
UK Swing Line Lender, as applicable. This percentage will be certified by such Lender in its
notice to the Administrative Agent or the UK Swing Line Lender, as applicable, as the cost
(expressed as a percentage of such Lender’s participation in all Loans made from such Lending
Office) of complying with the minimum reserve requirements of the European Central Bank in
respect of Loans made from that Lending Office.

	4.	 	The Additional Cost Rate for any Lender lending from a Lending Office in the United Kingdom
will be calculated by the Administrative Agent or the UK Swing Line Lender, as applicable, as
follows:

	 	(a)	 	in relation to any Loan in Sterling:

	 	 	 	 	 
	 

	 	AB+C(B-D)+E x 0.01
	 	per cent per annum
	 

	 	100 — (A+C)	 	 

	 	(b)	 	in relation to any Loan in any currency other than Sterling:

	 	 	 	 	 	 	 
	 

	 	 	E x 0.01	 	 	per cent per annum
	 

	 	 	300	 	 	 

Schedule 1.01(b) to Amended and Restated Credit Agreement

-1-

 

Where:

	 	“A”	 	 is the percentage of Eligible Liabilities (assuming these to be in excess of
any stated minimum) which that Lender is from time to time required to maintain as an
interest free cash ratio deposit with the Bank of England to comply with cash ratio
requirements.
	 
	 	“B” 	 	is the percentage rate of interest (excluding the Applicable Rate, the
Mandatory Cost and any interest charged on overdue amounts pursuant to the first
sentence of Section 2.08(b) and, in the case of interest (other than on overdue
amounts) charged at the Default Rate, without counting any increase in interest rate
effected by the charging of the Default Rate) payable for the relevant Interest Period
of such Loan.
	 
	 	“C”	 	 is the percentage (if any) of Eligible Liabilities which that Lender is
required from time to time to maintain as interest bearing Special Deposits with the
Bank of England.
	 
	 	“D”	 	 is the percentage rate per annum payable by the Bank of England to the
Administrative Agent on interest bearing Special Deposits.
	 
	 	“E”	 	 is designed to compensate Lenders for amounts payable under the Fees
Regulations and is calculated by the Administrative Agent or the UK Swing Line Lender,
as applicable, as being the average of the most recent rates of charge supplied by the
Lenders to the Administrative Agent or the UK Swing Line Lender, as applicable,
pursuant to paragraph 7 below and expressed in pounds per £1,000,000.

	5.	 	For the purposes of this Schedule:

	 	(a)	 	Eligible Liabilities” and “Special Deposits” have the meanings
given to them from time to time under or pursuant to the Bank of England Act 1998 or
(as may be appropriate) by the Bank of England;
	 
	 	(b)	 	“Fees Regulations” means the FSA Supervision Manual or such other law
or regulation as may be in force from time to time in respect of the payment of fees
for the acceptance of deposits;
	 
	 	(c)	 	“Fee Tariffs” means the fee tariffs specified in the Fees Regulations
under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated
fee required pursuant to the Fees Regulations but taking into account any applicable
discount rate); and
	 
	 	(d)	 	“Tariff Base” has the meaning given to it in, and will be calculated in
accordance with, the Fees Regulations.

	6.	 	In application of the above formulae, A, B, C and D will be included in the formulae as
percentages (i.e. 5% will be included in the formula as 5 and not as 0.05). A negative

Schedule 1.01(b) to Amended and Restated Credit Agreement

-2-

 

	 	 	result
obtained by subtracting D from B shall be taken as zero. The resulting figures shall be
rounded to four decimal places.
	 
	7.	 	If requested by the Administrative Agent or the UK Swing Line Lender, as applicable, or the
Company, each Lender with a Lending Office in the United Kingdom or a Participating Member
State shall, as soon as practicable after publication by the Financial Services Authority,
supply to the Administrative Agent, the UK Swing Line Lender and the Company, the rate of
charge payable by such Lender to the Financial Services Authority pursuant to the Fees
Regulations in respect of the relevant financial year of the Financial Services Authority
(calculated for this purpose by such Lender as being the average of the Fee Tariffs applicable
to such Lender for that financial year) and expressed in pounds per £1,000,000 of the Tariff
Base of such Lender.
	 
	8.	 	Each Lender shall supply any information required by the Administrative Agent or the UK Swing
Line Lender, as applicable for the purpose of calculating its Additional Cost Rate. In
particular, but without limitation, each Lender shall supply the following information in
writing on or prior to the date on which it becomes a Lender:

	 	(a)	 	its jurisdiction of incorporation and the jurisdiction of the Lending Office
out of which it is making available its participation in the relevant Loan; and
	 
	 	(b)	 	any other information that the Administrative agent or the UK Swing Line
Lender, as applicable, may reasonably require for such purpose.

Each Lender shall promptly notify the Administrative Agent and the UK Swing Line Lender in writing
of any change to the information provided by it pursuant to this paragraph.

	9.	 	The percentages or rates of charge of each Lender for the purpose of A, C and E above shall
be determined by the Administrative Agent or the UK Swing Line Lender, as applicable, based
upon the information supplied to it pursuant to paragraphs 7 and 8 above and
on the assumption that, unless a Lender notifies the Administrative Agent and the UK Swing
Line Lender to the contrary, each Lender’s obligations in relation to cash ratio deposits,
Special Deposits and the Fees Regulations are the same as those of a typical bank from its
jurisdiction of incorporation with a Lending Office in the same jurisdiction as such Lender’s
Lending Office.

	10.	 	Neither the Administrative Agent nor the UK Swing Line Lender shall have any liability to any
Person if such determination results in an Additional Cost Rate which over- or
under-compensates any Lender and shall be entitled to assume that the information provided by
any Lender pursuant to paragraphs 3, 7 and 8 above is true and correct
in all respects.

	11.	 	The Administrative Agent and the UK Swing Line Lender shall distribute the respective
additional amounts received as a result of the Mandatory Cost to the Lenders on the basis of
the Additional Cost Rate for each Lender based on the information provided by each Lender
pursuant to paragraphs 3, 7 and 8 above.

Schedule 1.01(b) to Amended and Restated Credit Agreement

-3-

 

	12.	 	Any determination by the Administrative Agent or the UK Swing Line Lender pursuant to this
Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount
payable to a Lender shall, in the absence of manifest error, be conclusive and binding on all
parties hereto.

	13.	 	Each of the Administrative Agent and the UK Swing Line Lender may from time to time, after
consultation with each other, the Company and the Lenders, determine and notify to all parties
any amendments which are required to be made to this Schedule in order to comply with any
change in law, regulation or any requirements from time to time imposed by the Bank of
England, the Financial Services Authority or the European Central Bank (or, in any case, any
other authority which replaces all or any of its functions) and any such determination shall,
in the absence of manifest error, be conclusive and binding on all parties hereto.

Schedule 1.01(b) to Amended and Restated Credit Agreement

-4-

 

SCHEDULE 1.01(c)

SUBSIDIARY GUARANTORS

Part
I — Domestic Subsidiary Guarantors

Part II
— UK Guarantors

Schedule 1.01(c) to Amended and Restated Credit Agreement

-1-

 

SCHEDULE 2.01

COMMITMENTS

AND APPLICABLE PERCENTAGES

Schedule 2.01 to Amended and Restated Credit Agreement

-1-

 

SCHEDULE 5.11

TAX AGREEMENTS

Schedule 5.11 to Amended and Restated Credit Agreement

-1-

 

SCHEDULE 5.13

SUBSIDIARIES

Schedule 5.13 to Amended and Restated Credit Agreement

-1-

 

SCHEDULE 7.01

EXISTING LIENS

Schedule 7.01 to Amended and Restated Credit Agreement

-1-

 

SCHEDULE 7.03

EXISTING INDEBTEDNESS

Schedule 7.03 to Amended and Restated Credit Agreement

-1-

 

SCHEDULE 7.09

EXISTING BURDENSOME AGREEMENTS

Schedule 7.09 to Amended and Restated Credit Agreement

-1-

 

SCHEDULE 10.02

ADMINISTRATIVE AGENT’S OFFICE;

CERTAIN ADDRESSES FOR NOTICES

Schedule 10.02 to Amended and Restated Credit Agreement

-1-

 

EXHIBIT A-1

FORM OF COMMITTED LOAN NOTICE

Date:                     , _____

To:     Wells Fargo Bank, National Association, as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement, dated as of August
31, 2006 (as amended, restated, extended, supplemented or otherwise modified in writing from time
to time, the “Agreement;” the terms defined therein being used herein as therein defined),
among Grant Prideco, Inc. (the “Company”), the Designated Borrowers from time to time party
thereto, the Lenders from time to time party thereto, Bank of America, N.A. as Syndication Agent,
Wells Fargo Bank, National Association as Administrative Agent, US Swing Line Lender, and an L/C
Issuer, HSBC Bank plc as UK Swing Line Lender and an L/C Issuer, and JPMorgan Chase Bank, N.A., as
Documentation Agent.

     Grant Prideco, L.P. hereby requests, on behalf of itself or, if applicable, the Company or
other Designated Borrower referenced in item 6 below (the “Applicable Borrower”) (select
one):

___ A Borrowing of Committed Loans      ___ A conversion or continuation of Committed Loans

	 	1.	 	On                                            (a Business Day).
	 
	 	2.	 	In the amount of                      (continuation or Borrowing).
	 
	 	3.	 	In the amount of                      (conversion from Eurocurrency Rate Loans to Base Rate Loans).

___ Eurocurrency Rate Loans                ___ Base Rate Loans

	 	4.	 	In the following currency:                     
	 
	 	5.	 	For Eurocurrency Rate Loans: with an Interest Period of ___months.
	 
	 	6.	 	On behalf of                      [insert name of Applicable Borrower].

     The Committed Borrowing, if any, requested herein complies with the provisos to the first
sentence of Section 2.01 of the Agreement.

	 	 	 	 	 	 	 
	 	 	GRANT PRIDECO, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Exhibit A-1 to Amended and Restated Credit Agreement

-1-

 

EXHIBIT A-2

FORM OF US SWING LINE LOAN NOTICE

Date:                     , _____

			
	To:	 	Wells Fargo Bank, National Association, as US Swing Line Lender

Wells Fargo Bank, National Association, as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement, dated as of August
31, 2006 (as amended, restated, extended, supplemented or otherwise modified in writing from time
to time, the “Agreement;” the terms defined therein being used herein as therein defined),
among Grant Prideco, Inc. (the “Company”), the Designated Borrowers from time to time party
thereto, the Lenders from time to time party thereto, Bank of America, N.A. as Syndication Agent,
Wells Fargo Bank, National Association as Administrative Agent, US Swing Line Lender, and an L/C
Issuer, HSBC Bank plc as UK Swing Line Lender and an L/C Issuer, and JPMorgan Chase Bank, N.A., as
Documentation Agent.

     The undersigned hereby requests a US Swing Line Loan:

	 	1.	 	On                      (Business Day).
	 
	 	2.	 	In the amount of $                    .

     The US Swing Line Borrowing requested herein complies with the requirements of the provisos to
the first sentence of Section 2.04(a)(i) of the Agreement.

	 	 	 	 	 	 	 
	 	 	GRANT PRIDECO, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Exhibit A-2 to Amended and Restated Credit Agreement

-1-

 

EXHIBIT A-3

FORM OF UK SWING LINE LOAN NOTICE

Date:                     , _____

			
	To:	 	HSBC Bank plc, as UK Swing Line Lender

Wells Fargo Bank, National Association, as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement, dated as of August
31, 2006 (as amended, restated, extended, supplemented or otherwise modified in writing from time
to time, the “Agreement;” the terms defined therein being used herein as therein defined),
among Grant Prideco, Inc. (the “Company”), the Designated Borrowers from time to time party
thereto, the Lenders from time to time party thereto, Bank of America, N.A. as Syndication Agent,
Wells Fargo Bank, National Association as Administrative Agent, US Swing Line Lender, and an L/C
Issuer, HSBC Bank plc as UK Swing Line Lender and an L/C Issuer, and JPMorgan Chase Bank, N.A., as
Documentation Agent.

     The undersigned hereby requests (select one):

     o A UK Swing Line Loan                o A continuation of a UK Swing Line Loan

	 	1.	 	On (a Business Day).
	 
	 	2.	 	In the following currency:                     .
	 
	 	3.	 	In the amount of                     .
	 
	 	4.	 	Comprised of                     

[Type of UK Swing Line Loan requested]
	 
	 	5.	 	For Eurocurrency Rate Loans: with an Interest Period of                      months.

     The UK Swing Line Borrowing requested herein complies with the requirements of the provisos to
the first sentence of Section 2.04(b)(i) of the Agreement.

	 	 	 	 	 	 	 
	 	 	[DESIGNATED UK BORROWER]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Exhibit A-3 to Amended and Restated Credit Agreement

-1-

 

EXHIBIT B

FORM OF NOTE

[Date]

     FOR VALUE RECEIVED, the undersigned (the “Borrower”) hereby promises to pay to
                     or registered assigns (the “Lender”), in accordance with the
provisions of the Agreement (as hereinafter defined), the principal amount of each Loan from time
to time made by the Lender to the Borrower under that certain Amended and Restated Credit
Agreement, dated as of August 31, 2006 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Agreement;” the terms defined therein being
used herein as therein defined), among Grant Prideco, Inc., the Designated Borrowers from time to
time party thereto, the Lenders from time to time party thereto, Bank of America, N.A. as
Syndication Agent, Wells Fargo Bank, National Association as Administrative Agent, US Swing Line
Lender, and an L/C Issuer, HSBC Bank plc as UK Swing Line Lender and an L/C Issuer, and JPMorgan
Chase Bank, N.A., as Documentation Agent.

     The Borrower promises to pay interest on the unpaid principal amount of each Loan from the
date of such Loan until such principal amount is paid in full, at such interest rates and at such
times as provided in the Agreement. Except as otherwise provided in Section 2.04(f) of the
Agreement with respect to Swing Line Loans, all payments of principal and interest shall be made to
the Administrative Agent for the account of the Lender in the currency in which such Committed Loan
was denominated and in Same Day Funds at the Administrative Agent’s Office for such currency. If
any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be
paid upon demand, from the due date thereof until the date of actual payment (and before as well as
after judgment) computed at the per annum rate set forth in the Agreement.

     This Note is one of the Notes referred to in the Agreement, is entitled to the benefits
thereof and may be prepaid in whole or in part subject to the terms and conditions provided
therein. This Note is also entitled to the benefits of the [Company Guaranty][Subsidiary
Guaranty]. Upon the occurrence and continuation of one or more of the Events of Default specified
in the Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared
to be, immediately due and payable all as provided in the Agreement. Loans made by the Lender
shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary
course of business. The Lender may also attach schedules to this Note and endorse thereon the date,
amount, currency and maturity of its Loans and payments with respect thereto.

     The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, demand, dishonor and non-payment of this Note.

Exhibit B to Amended and Restated Credit Agreement

-1-

 

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.

	 	 	 	 	 	 	 
	 	 	[COMPANY]	 	 
	 
	 	 	 	 	 	 
	 	 	OR	 	 
	 
	 	 	 	 	 	 
	 	 	[APPLICABLE DESIGNATED BORROWER]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Exhibit B to Amended and Restated Credit Agreement

-2-

 

LOANS AND PAYMENTS WITH RESPECT THERETO

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Amount of	 	 	 	 
	 	 	 	 	Currency	 	 	 	Principal or	 	Outstanding	 	 
	 	 	 	 	and	 	End of	 	Interest	 	Principal	 	 
	 	 	Type of	 	Amount of	 	Interest	 	Paid This	 	Balance	 	Notation
	Date	 	Loan Made	 	Loan Made	 	Period	 	Date	 	This Date	 	Made By
	 	 	 	 	 	 	 	 	 	 	 	 	 

Exhibit B to Amended and Restated Credit Agreement

-3-

 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date:                    ,

To:     Wells Fargo Bank, National Association, as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement, dated as of August
31, 2006 (as amended, restated, extended, supplemented or otherwise modified in writing from time
to time, the “Agreement;” the terms defined therein being used herein as therein defined),
among Grant Prideco, Inc. (the “Company”), the Designated Borrowers from time to time party
thereto, the Lenders from time to time party thereto, Bank of America, N.A. as Syndication Agent,
Wells Fargo Bank, National Association as Administrative Agent, US Swing Line Lender, and an L/C
Issuer, HSBC Bank plc as UK Swing Line Lender and an L/C Issuer, and JPMorgan Chase Bank, N.A., as
Documentation Agent.

     The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                     of the Company, and that, as such, he/she is authorized to execute and deliver this Certificate to
the Administrative Agent on the behalf of the Company, and that:

[Use following paragraph 1 for fiscal year-end financial statements]

     1. Attached hereto as Schedule 1 are the year-end audited financial statements
required by Section 6.01(a) of the Agreement for the fiscal year of the Company ended as of
the above date, together with the report and opinion of an independent certified public accountant
required by such section.

[Use following paragraph 1 for fiscal quarter-end financial statements]

     2. Attached hereto as Schedule 1 are the unaudited financial statements required by
Section 6.01(b) of the Agreement for the fiscal quarter of the Company ended as of the
above date. Such financial statements fairly present the financial condition, results of
operations and cash flows of the Company and its Subsidiaries in accordance with GAAP as at such
date and for such period, subject only to normal year-end audit adjustments and the absence of
footnotes.

     3. The undersigned has reviewed and is familiar with the terms of the Agreement and has made,
or has caused to be made under his/her supervision, a review of the transactions and condition
(financial or otherwise) of the Company during the accounting period covered by the attached
financial statements.

     4. A review of the activities of the Company during such fiscal period has been made under the
supervision of the undersigned with a view to determining whether during such fiscal period the
Company performed and observed all its Obligations under the Loan Documents, and

Exhibit C to Amended and Restated Credit Agreement

-1-

 

[select one:]

     [to the knowledge of the undersigned during such fiscal period, the Company performed and
observed each covenant and condition of the Loan Documents applicable to it, and no Default has
occurred and is continuing.]

—or—

     [the following covenants or conditions have not been performed or observed and the following
is a list of each such Default and its nature and status:]

     5. The representations and warranties of (i) the Borrowers contained in Article V of
the Agreement and (ii) each Loan Party contained in each other Loan Document or in any document
furnished at any time under or in connection with the Loan Documents, are true and correct on and
as of the date hereof, except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they are true and correct as of such earlier date, and
except that for purposes of this Compliance Certificate, the representations and warranties
contained in subsections (a) and (b) of Section 5.05 of the Agreement shall be deemed to
refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of
Section 6.01 of the Agreement, including the statements in connection with which this
Compliance Certificate is delivered.

     6. The financial covenant analyses and information set forth on Schedule 2 and
Schedule 3 attached hereto are true and accurate on and as of the date of this Certificate.

     7. As of the date of this Certificate, the Company’s Debt Ratings are:

          (a) S&P:                            

          (b) Moody’s:                     

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of                     ,                     .

	 	 	 	 	 	 	 
	 	 	GRANT PRIDECO, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Exhibit C to Amended and Restated Credit Agreement

-2-

 

For the Quarter/Year ended                                          (“Statement Date”)

SCHEDULE 2 (THIS SCHEDULE 2 IS PREPARED IN ACCORDANCE WITH THE

AGREEMENT AND THE DEFINITIONS SET FORTH THEREIN)

to the Compliance Certificate

($ in 000’s)

	 	 	 	 	 	 	 	 	 	 	 
	I.	 	Section 7.11(a) – Consolidated Total Indebtedness to Total Capitalization Ratio.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	A.	 	Consolidated Total Indebtedness at Statement Date:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	B.	 	Total Capitalization at Statement Date	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	1.	 	Consolidated Net Worth at Statement Date:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2.	 	Total Capitalization	 	 	 	 
	 
	 	 	 	 	 	(Line I.A plus Line I.B.1):	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	C.	 	Maximum permitted Consolidated Total

Indebtedness to Total Capitalization Ratio:	 	 	50	%
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	D.	 	Actual Consolidated Total Indebtedness to

Total Capitalization Ratio (Line I.A / I.B.2):	 	 	                                        	%
	 
	 	 	 	 	 	 	 	 	 	 
	II.	 	Section 7.11(b) – Consolidated Interest Coverage Ratio.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	A.	 	Consolidated EBITDA for four consecutive fiscal

quarters ending on above date:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	1.	 	Consolidated Net Income:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2.	 	Consolidated Interest Charges:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	3.	 	Provision for income taxes:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	4.	 	Depreciation expenses:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	5.	 	Amortization expenses:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	6.	 	Non-recurring non-cash reductions/increases	 	 	 	 
	 
	 	 	 	 	 	of Consolidated Net Income:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	7.	 	Capital stock issuances attributable to	 	 	 	 
	 
	 	 	 	 	 	non-cash compensation expense:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	8.	 	Non-cash gains or losses:	 	$	                                        	 

Exhibit C to Amended and Restated Credit Agreement

-3-

 

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	9.	 	Write-offs on amortized/deferred costs in	 	 	 	 
	 
	 	 	 	 	 	connection with refinancing of Existing	 	 	 	 
	 
	 	 	 	 	 	Credit Agreement:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	10.	 	Amounts expensed in connection with	 	 	 	 
	 
	 	 	 	 	 	Tender Activities:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	11.	 	Any amount included in Consolidated	 	 	 	 
	 
	 	 	 	 	 	Net Income from any Subsidiary(s) accounted	 	 	 	 
	 
	 	 	 	 	 	for under equity method of accounting:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	12.	 	Dividends and distributions received from	 	 	 	 
	 
	 	 	 	 	 	any Subsidiary(s) accounted for under	 	 	 	 
	 
	 	 	 	 	 	equity method of accounting:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	13.	 	Pro Forma adjustments to EBITDA for	 	 	 	 
	 
	 	 	 	 	 	Acquisitions or (divestitures) from	 	 	 	 
	 
	 	 	 	 	 	Schedule 3 Attachment 1:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	14.	 	Consolidated EBITDA	 	 	 	 
	 
	 	 	 	 	 	(Lines II.A.1 + 2 +/- 3 + 4 + 5 +/-	 	 	 	 
	 
	 	 	 	 	 	6 + 7 +/- 8 + 9 + 10 – 11 + 12 +/- 13):	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	B.	 	Consolidated Interest Charges for four consecutive fiscal

quarters ending on above date:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	1.	 	Interest expenses, including premium	 	 	 	 
	 
	 	 	 	 	 	payments, debt discounts, fees, charges and	 	 	 	 
	 
	 	 	 	 	 	related expenses in connection with	 	 	 	 
	 
	 	 	 	 	 	borrowed money or deferred purchase prices	 	 	 	 
	 
	 	 	 	 	 	of assets:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2.	 	Portion of rent expenses of any capital lease	 	 	 	 
	 
	 	 	 	 	 	that is treated as interest expense according	 	 	 	 
	 
	 	 	 	 	 	to GAAP:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	3.	 	Pro Forma adjustments for interest expenses	 	 	 	 
	 
	 	 	 	 	 	from additional debt from acquisitions or	 	 	 	 
	 
	 	 	 	 	 	reductions in debt from divestitures:	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	4.	 	Consolidated Interest Expense	 	 	 	 
	 
	 	 	 	 	 	(Lines II.B.1 + 2 +/- 3):	 	$	                                        	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	C.	 	Minimum required Interest Coverage Ratio:	 	 	2.50 to 1.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	D.	 	Consolidated Interest Coverage Ratio (Line II.A.14  ̧
Line II.B.4):	 	                           to 1.00

Exhibit C to Amended and Restated Credit Agreement

-4-

 

For the Quarter/Year ended                                          (“Statement Date”)

SCHEDULE 3

to the Compliance Certificate

($ in 000’s)

Consolidated EBITDA

(in accordance with the definition of Consolidated EBITDA

as set forth in the Agreement)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Twelve	 
	Consolidated	 	Quarter	 	 	Quarter	 	 	Quarter	 	 	Quarter	 	 	Months	 
	EBITDA	 	Ended	 	 	Ended	 	 	Ended	 	 	Ended	 	 	Ended	 
	Consolidated
Net Income
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	+ Consolidated
Interest Charges
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	+/- income taxes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	+ depreciation expense
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	+ amortization expense
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	+/- non-recurring
non-cash
expenses/items
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	+ Equity Interests
(non-cash
compensation expense)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	+/- non-cash
gains/losses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	+ Credit Agreement
refinancing/cost
write-offs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	+ Tender
Activities/amounts
expensed
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	- income from
Subsidiaries
accounted for using
equity method of GAAP
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	+ Dividends and
distributions from
Subsidiaries
accounted for using
equity method of GAAP
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Exhibit C to Amended and Restated Credit Agreement

-5-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Twelve	 
	Consolidated	 	Quarter	 	 	Quarter	 	 	Quarter	 	 	Quarter	 	 	Months	 
	EBITDA	 	Ended	 	 	Ended	 	 	Ended	 	 	Ended	 	 	Ended	 
	+/- adjustments to
EBITDA for
acquisitions and
dispositions
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	= Consolidated EBITDA
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Exhibit C to Amended and Restated Credit Agreement

-6-

 

For the Quarter/Year ended                                         (“Statement Date”)

ATTACHMENT 1 TO SCHEDULE 3

to the Compliance Certificate

($ in 000’s)

Consolidated EBITDA

(in accordance with the definition of Consolidated EBITDA

as set forth in the Agreement)

Detail regarding adjustments to EBITDA associated with acquisitions or dispositions for subject
period (on a per acquisition/per disposition basis):

Exhibit C to Amended and Restated Credit Agreement

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EXHIBIT D

ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Credit Agreement identified
below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed
to and incorporated herein by reference and made a part of this Assignment and Assumption as if set
forth herein in full.

     For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations as a Lender under the Credit Agreement and any other documents or
instruments delivered pursuant thereto to the extent related to the amount and percentage interest
identified below of all of such outstanding rights and obligations of the Assignor under the
respective facilities identified below (including, without limitation, the Letters of Credit and
the Swing Line Loans included in such facilities1) and (ii) to the extent permitted to
be assigned under applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under
or in connection with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or related to any of the
foregoing, including, but not limited to, contract claims, tort claims, malpractice claims,
statutory claims and all other claims at law or in equity related to the rights and obligations
sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned
pursuant to clauses (i) and (ii) above being referred to herein collectively as, the “Assigned
Interest”). Such sale and assignment is without recourse to the Assignor and, except as
expressly provided in this Assignment and Assumption, without representation or warranty by the
Assignor.

	 	 	 	 	 	 	 
	1.

	 	Assignor:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	2.

	 	Assignee:
	 	 	 	[and is an Affiliate/Approved Fund of [identify Lender]2]
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	3.

	 	Borrower(s):	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	4.	 	Administrative Agent: Wells Fargo Bank, National Association, as the administrative agent under the Credit Agreement

 

			
	1	 	Include all applicable subfacilities.
	 
	2	 	Select as applicable.

Exhibit D to Amended and Restated Credit Agreement

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	5.	 	Credit Agreement: Reference is made to that certain Amended and Restated Credit
Agreement, dated as of August 31, 2006, among Grant Prideco, Inc., the Designated Borrowers
from time to time party thereto, the Lenders from time to time party thereto, Bank of America,
N.A. as Syndication Agent, Wells Fargo Bank, National Association as Administrative Agent, US
Swing Line Lender, and an L/C Issuer, HSBC Bank plc as UK Swing Line Lender and an L/C Issuer,
and JPMorgan Chase Bank, N.A., as Documentation Agent.
	 
	6.	 	Assigned Interest:

	 	 	 	 	 	 	 	 	 
	 	 	Aggregate	 	 	 	 	 	 
	 	 	Amount of	 	Amount of	 	Percentage	 	 
	 	 	Commitment/Loans	 	Commitment/Loans	 	Assigned of	 	 
	Facility Assigned	 	for all Lenders*	 	Assigned*	 	Commitment/Loans3	 	CUSIP Number
	                    
	 	$                     
	 	$                     
	 	                     %	 	 
	                    
	 	$                     
	 	$                     
	 	                     %	 	 
	                    
	 	$                     
	 	$                     
	 	                     %	 	 

	7.	 	Trade Date:                                                             ]4

 

			
	3	 	Set forth, to at least 9 decimals, as a
percentage of the Commitment/Loans of all Lenders thereunder.
	 
	4	 	To be completed if the Assignor and the
Assignee intend that the minimum assignment amount is to be determined as of
the Trade Date.

Exhibit D to Amended and Restated Credit Agreement

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Effective Date:                                         , 20___[TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE
THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

     The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	 	ASSIGNOR
	 	 	[NAME OF ASSIGNOR]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	ASSIGNEE
	 	 	[NAME OF ASSIGNEE]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

[Consented to and]5 Accepted:

WELLS FARGO BANK, NATIONAL ASSOCIATION, as

Administrative Agent

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

[Consented to:]6

[COMPANY]

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

 

			
	5	 	To be added only if the consent of the
Administrative Agent is required by the terms of the Credit Agreement.
	 
	6	 	To be added only if the consent of the
Company and/or other parties (L/C Issuers) is required by the terms of the
Credit Agreement.

Exhibit D to Amended and Restated Credit Agreement

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ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties.

     1.1. Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of the Company, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by the Company, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under any
Loan Document.

     1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit Agreement
(subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and
after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant to Section 6.01 thereof, as applicable, and
such other documents and information as it has deemed appropriate to make its own credit analysis
and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on
the basis of which it has made such analysis and decision independently and without reliance on the
Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached hereto is any
documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly
completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without
reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance
with their terms all of the obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

2. Payments. From and after the Effective Date, the Administrative Agent shall make all
payments in respect of the Assigned Interest (including payments of principal, interest, fees and
other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date
and to the Assignee for amounts which have accrued from and after the Effective Date.

Exhibit D to Amended and Restated Credit Agreement

-4-

 

3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to
the benefit of, the parties hereto and their respective successors and assigns. This Assignment
and Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of New York.

Exhibit D to Amended and Restated Credit Agreement

-5-

 

EXHIBIT E

FORM OF COMPANY GUARANTY

Exhibit E to Amended and Restated Credit Agreement

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EXHIBIT F

FORM OF SUBSIDIARY GUARANTY

Exhibit F to Amended and Restated Credit Agreement

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EXHIBIT G

FORM OF DESIGNATED BORROWER

REQUEST AND ASSUMPTION AGREEMENT

Date:                     , _____

To:    Wells Fargo Bank, National Association, as Administrative Agent

     Ladies and Gentlemen:

     This Designated Borrower Request and Assumption Agreement is made and delivered pursuant to
Section 2.14 of that certain Amended and Restated Credit Agreement, dated as of August 31,
2006 (as amended, restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as therein defined),
among Grant Prideco, Inc. (the “Company”), the Designated Borrowers from time to time party
thereto, the Lenders from time to time party thereto, Bank of America, N.A. as Syndication Agent,
Wells Fargo Bank, National Association as Administrative Agent, US Swing Line Lender, and an L/C
Issuer, HSBC Bank plc as UK Swing Line Lender and an L/C Issuer, and JPMorgan Chase Bank, N.A., as
Documentation Agent, and reference is made thereto for full particulars of the matters described
therein. All capitalized terms used in this Designated Borrower Request and Assumption Agreement
and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.

     Each of                                          (the “Designated Borrower”) and the Company hereby
confirms, represents and warrants to the Administrative Agent and the Lenders that the Designated
Borrower is a Subsidiary of the Company.

     The documents required to be delivered to the Administrative Agent under Section 2.14
of the Credit Agreement will be furnished to the Administrative Agent in accordance with the
requirements of the Credit Agreement.

     The parties hereto hereby confirm that with effect from the date hereof, the Designated
Borrower shall have obligations, duties and liabilities toward each of the other parties to the
Credit Agreement identical to those which the Designated Borrower would have had if the Designated
Borrower had been an original party to the Credit Agreement as a Borrower. The Designated Borrower
confirms its acceptance of, and consents to, all representations and warranties, covenants, and
other terms and provisions of the Credit Agreement.

     The parties hereto hereby request that the Designated Borrower be entitled to receive Loans
under the Credit Agreement, and understand, acknowledge and agree that neither the Designated
Borrower nor the Company on the Designated Borrower’s behalf shall have any right to request any
Loans for its account unless and until the date five Business Days after the effective date
designated by the Administrative Agent in a Designated Borrower Notice delivered to the Company and
the Lenders pursuant to Section 2.14 of the Credit Agreement.

     This Designated Borrower Request and Assumption Agreement shall constitute a Loan Document
under the Credit Agreement.

Exhibit G to Amended and Restated Credit Agreement

-1-

 

     THIS DESIGNATED BORROWER REQUEST AND ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

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

	 	 	 	 	 
	 	 	[DESIGNATED BORROWER]
	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	GRANT PRIDECO, INC.
	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Exhibit G to Amended and Restated Credit Agreement

-2-

 

EXHIBIT H

FORM OF DESIGNATED BORROWER NOTICE

Date:                     , _____

     To: Grant Prideco, Inc.

     The Lenders party to the Credit Agreement referred to below

     Ladies and Gentlemen:

     This Designated Borrower Notice is made and delivered pursuant to Section 2.14 of that
certain Amended and Restated Credit Agreement, dated as of August 31, 2006 (as amended, restated,
extended, supplemented or otherwise modified in writing from time to time, the “Agreement;”
the terms defined therein being used herein as therein defined), among Grant Prideco, Inc. (the
“Company”), the Designated Borrowers from time to time party thereto, the Lenders from time
to time party thereto, Bank of America, N.A. as Syndication Agent, Wells Fargo Bank, National
Association as Administrative Agent, US Swing Line Lender, and an L/C Issuer, HSBC Bank plc as UK
Swing Line Lender and an L/C Issuer, and JPMorgan Chase Bank, N.A., as Documentation Agent, and
reference is made thereto for full particulars of the matters described therein.

     The Administrative Agent hereby notifies Company and the Lenders that effective as of the date
hereof [                                        ] shall be a Designated Borrower and may receive Loans for its
account on the terms and conditions set forth in the Credit Agreement.

     This Designated Borrower Notice shall constitute a Loan Document under the Credit Agreement.

	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	 	 	as Administrative Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Exhibit H to Amended and Restated Credit Agreement

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