Document:

exv10w3

Exhibit 10.3

LICENSE AGREEMENT

          This LICENSE AGREEMENT (the “Agreement”), dated as of July 2, 2010 (the “Effective Date”), is
entered into by and between Columbia Laboratories, Inc., a Delaware corporation, and Columbia
Laboratories (Bermuda) Ltd., a Bermuda corporation (together, “Seller”), and Coventry Acquisition,
Inc., a Delaware corporation (“Buyer”). Seller and Buyer are each referred to herein as a “Party”,
and collectively, as the “Parties.”

RECITALS

          WHEREAS, the Columbia Laboratories, Inc., Watson Pharmaceuticals, Inc., a Nevada corporation
and Buyer have entered into a Purchase and Collaboration Agreement, dated as of March 3, 2010 (the
“PCA”), for the sale by Seller, and the purchase by Buyer, of the First Closing Date Purchased
Assets on the First Closing Date and the Second Closing Date Purchased Assets on the Second Closing
Date (each as defined in the PCA);

          WHEREAS, pursuant to the PCA, the Parties will collaborate with respect to certain Development
activities relating to the Products (as defined in the PCA); and

          WHEREAS, as a condition to the First Closing (as defined in the PCA) under the PCA, Buyer will
grant to Seller certain licenses, and Seller will grant Buyer certain licenses, on the terms and
conditions set forth herein.

          NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

ARTICLE I.

DEFINITIONS

          For the purposes of this Agreement, the following terms shall have the following meanings.
All other capitalized terms used herein and not defined in this Agreement shall be as defined in
the PCA.

          “Ascend Agreement” means the License and Supply Agreement, dated as of September 27, 2007,
between Columbia Laboratories, Inc. and Ascend Therapeutics, Inc.

          “Buyer Introduced Technology” means all Patents and Know-How Controlled by Buyer from time to
time during the Joint Development Period covering technology identified by Buyer in writing for use
by Seller in Seller Development Activities.

          “Buyer Technology” means the Purchased Asset Technology and Collaboration Technology.

 

 

          “Collaboration Invention” shall have the meaning set forth in Section 3.2(a) hereof.

          “Collaboration Invention Patent” shall have the meaning set forth in Section 3.2(a) hereof.

          “Collaboration Technology” shall have the meaning set forth in Section 3.2(a) hereof.

          “Dimera Agreement” means the Reciprocal License Agreement, dated as of May 19, 2004, among
Columbia Laboratories, Inc., Columbia Laboratories (Bermuda) Ltd. and Dimera Incorporated.

          “Effective Date” means the date set forth in the Preamble.

          “Excluded Asset Patents” shall have the meaning set forth in the definition of Excluded Asset
Technology.

          “Excluded Asset Technology” means (a) the Patents (“Excluded Asset Patents”) and Know-How
Controlled by Seller and/or its Affiliates as of the First Closing Date which relate primarily to
the Products and are not included in the Purchased Assets, and (b) the Seller Next Generation
Delivery System Patents.

          “Non-US Asset Purchaser” shall have the meaning set forth in Section 2.3(a) hereof.

          “Non-US Rights to Intellectual Property” shall have the meaning set forth in Section 2.3(a)
hereof.

          “Product Infringement” shall have the meaning set forth in Section 3.4(a)(i) hereof.

          “Purchased Asset Patents” shall have the meaning set forth in the definition of Purchased
Asset Technology.

          “Purchased Asset Technology” means the Patents (“Purchased Asset Patents”) and Know-How
included in the Purchased Assets.

          “Seller Next Generation Delivery System Invention” shall have the meaning set forth in Section
3.2(b) hereof.

          “Seller Next Generation Delivery System Patents” means any Patent Controlled by Seller and/or
its Affiliates containing at least one claim that, without a license thereunder, would be infringed
by the manufacture, use, marketing, importing, exporting, sale, offer for sale or other
Commercialization of any product utilizing a Seller Next Generation Delivery System.

 

 

          “Seller Next Generation Delivery System Technology” shall have the meaning set forth in
Section 3.2(b) hereof.

          “Territory” means worldwide.

ARTICLE II.

CERTAIN LICENSES RELATING TO THE PRODUCTS

          2.1 Grant of Licenses.

          (a) Grant of Technology Licenses to Buyer. Subject to the terms and conditions of
this Agreement, the PCA, the Ascend Agreement, the Merck-Serono Agreement, and the Dimera
Agreement, Seller hereby grants to Buyer an exclusive (even as to Seller and its Affiliates),
irrevocable, perpetual, royalty-free and fully paid-up (except as provided in the PCA) license,
with the right to grant sublicenses subject to Section 2.2, under the Excluded Asset Technology and
Seller Next Generation Delivery System Technology to Develop, manufacture, have manufactured, use,
import, export, market, sell, offer to sell or otherwise Commercialize the Products in the
Territory in any and all fields.

          (b) Grant of Technology Licenses to Seller. Subject to the terms and conditions of
this Agreement and the PCA, including without limitation Section 8.11 of the PCA, Buyer hereby
grants to Seller:

               (i) a non-exclusive, non-transferable (except pursuant to Section 6.8), royalty-free and fully
paid-up license under the Buyer Technology to manufacture, have manufactured, import and export the
Products for the purpose of supply of such Products to Buyer under the terms and conditions of the
Supply Agreement;

               (ii) a non-exclusive, non-transferable (except pursuant to Section 6.8), royalty-free and
fully paid-up license under the Buyer Technology, Collaboration Technology and Buyer Introduced
Technology for the sole purpose of conducting the Seller Development Activities during the Joint
Development Period;

               (iii) an exclusive (even as to Buyer and its Affiliates), irrevocable, perpetual, royalty-free
and fully paid-up license, with the right to grant sublicenses subject to Section 2.2, under (A)
the Purchased Asset Technology and Collaboration Technology (but solely to the extent such
Collaboration Technology arises out of clinical trials conducted by or on behalf of Seller on the
Product known as progesterone/COL-1620 vaginal gel containing progesterone in a concentration of
either four percent (4%) or eight percent (8%)) to the extent required to permit Seller or its
Affiliate to perform under and comply with the terms of the Merck-Serono Agreement and (B) the
Purchased Asset Technology to the extent required to permit Seller or its Affiliate to perform
under and comply with the terms of the Dimera Agreement; and

               (iv) a non-exclusive, irrevocable, perpetual, royalty-free and fully paid-up license, with the
right to grant sublicenses subject to Section 2.2, under Collaboration Technology to Develop,
manufacture, have manufactured, use, import, export, market, sell, offer

 

 

to sell or otherwise Commercialize the Seller Next Generation Delivery System to the extent
that it incorporates or otherwise delivers any product other than Products in the Territory in any
and all fields.

          2.2 Sublicenses. In the event that a Party shall have the right to grant sublicenses
under licenses granted pursuant to Section 2.1 of this Agreement, each such Party shall ensure that
its sublicensee shall be subject to a written agreement with terms and condition that are
consistent with, and no less protective of, the other Party than the terms and conditions
hereunder, provided that, it is acknowledged that the Seller shall have no obligation to amend the
Merck-Serono Agreement or the Dimera Agreement notwithstanding that such agreements include
licenses that constitute sublicenses hereunder.

          2.3 Non-U.S. Rights.

          (a) To the extent that rights licensed by Seller hereunder are to be used in connection with
or in order to exploit the Non-United States Purchased Assets purchased by a wholly-owned
Subsidiary of Parent pursuant to Section 11.1 of the PCA (such licensed rights, the “Non-US Rights
to Intellectual Property,” and such wholly-owned Subsidiary, the “Non-US Asset Purchaser”), such
Non-US Rights to Intellectual Property shall be licensed to the Non-US Asset Purchaser.

          (b) To the extent that rights licensed to Seller hereunder are rights to use the Non-United
States Purchased Assets purchased by the Non-US Asset Purchaser, such rights shall be licensed to
Columbia Laboratories (Bermuda) Ltd.

ARTICLE III.

DEVELOPMENT UNDER THE PCA

          3.1 Invention Disclosures. Each Party shall promptly disclose to the other Party any
inventions and other Know-How, including any inventions or other Know-How related to the Products
or any Next Generation Product, arising under the Parties’ activities conducted pursuant to the PCA
during the Joint Development Period. Such disclosures shall be provided in writing and in
sufficient detail for the other Party to understand the scope and nature of such inventions and
other Know-How. Any such disclosure shall be treated as the Confidential Information (as defined
in the PCA) of the disclosing Party, subject to the terms of this Article III.

          3.2 Ownership of Inventions. All inventions arising from the Parties’ activities
pursuant to the PCA during the Joint Development Period, including any Patents covering such
inventions, shall be owned as follows:

          (a) All inventions arising from the Parties’ activities under the PCA (each, a “Collaboration
Invention”) and any Patent covering any such an invention (each, a “Collaboration Invention
Patent”) and Know-How arising from the Parties’ activities under the PCA (Collaboration Invention
Patents and such Know-How, collectively, “Collaboration Technology”) shall be owned by Buyer.
Notwithstanding the previous sentence, Collaboration Invention and Collaboration Technology shall
exclude any Seller Next Generation Delivery

 

 

System Inventions and Seller Next Generation Delivery System Technology. Seller and
Affiliates of Seller shall assign, and hereby assign, to Buyer all right, title and interest in and
to Collaboration Inventions, and all right, title and interest in, to and under Collaboration
Technology, in each case, held by Seller and/or Affiliates of Seller. Seller shall, and shall
cause its Affiliates to, cooperate with Buyer and take all reasonable actions and execute
agreements, instruments and documents as may be reasonably required to perfect Buyer’s right, title
and interest in and to Collaboration Inventions and Buyer’s right, title and interest in, to and
under Collaboration Technology.

          (b) All inventions arising from the Parties’ activities under the PCA that relate solely to
the Seller Next Generation Delivery System (each a “Seller Next Generation Delivery System
Invention”) and any Patent covering such an invention (each such Patent to constitute a Seller Next
Generation Delivery System Patent) and Know-How arising from the Parties’ activities under the PCA
that relates solely to the Seller Next Generation Delivery System (Seller Next Generation Delivery
System Patents and such Know-How, collectively, “Seller Next Generation Delivery System
Technology”) shall be owned by Seller. Buyer and Affiliates of Buyer shall assign, and hereby
assign, to Seller all right, title and interest in and to Seller Next Generation Delivery System
Inventions, and all right, title and interest in, to and under Seller Next Generation Delivery
System Technology, in each case, held by Buyer and/or Affiliates of Buyer. Buyer shall, and shall
cause its Affiliates to, cooperate with Seller and take all reasonable actions and execute
agreements, instruments and documents as may be reasonably required to perfect Seller’s right,
title and interest in and to Seller Next Generation Delivery System Inventions and Seller’s right,
title and interest in, to and under Seller Next Generation Delivery System Technology.

          (c) Determination of inventorship shall be made in accordance with United States patent laws.

          3.3 Patent Prosecution.

          (a) Purchased Asset Patents and Collaboration Invention Patents.

               (i) Subject to Sections 3.3(a)(ii) and 3.3(a)(iii), Buyer will have the responsibility for,
and the obligation with respect to, filing, prosecuting and maintaining the Purchased Asset Patents
and Collaboration Invention Patents, at Buyer’s sole cost and expense. Seller will fully cooperate
with Buyer, at Buyer’s expense, in connection with the filing, prosecution and maintenance of such
Purchased Asset Patents and such Collaboration Invention Patents, including by providing access to
relevant Persons and executing all documentation reasonably requested by Buyer or its Affiliates.

               (ii) Buyer will consult with Seller and keep Seller reasonably informed of the status of the
Purchased Asset Patents and Collaboration Invention Patents, and will provide Seller with all
material filings and correspondences with the patent authorities with respect to such Purchased
Asset Patents and such Collaboration Invention Patents for Seller’s review and comment; provided
that Buyer shall have full and complete control over the filing, prosecution and maintenance of the
Purchased Asset Patents and the Collaboration Invention Patents.

 

 

               (iii) Buyer will notify Seller of any decision not to file applications for, or to cease
prosecution and/or maintenance of, or not to continue to pay the expenses of prosecution and/or
maintenance of, any Purchased Asset Patent or Collaboration Invention Patent. Buyer will provide
such notice at least sixty (60) days prior to any filing or payment due date, or any other due date
that requires action, in connection with such Purchased Asset Patent or Collaboration Invention
Patent. In such event, Buyer shall permit Seller, at Seller’s sole discretion and expense, to file
or to continue prosecution or maintenance of such Purchased Asset Patent or such Collaboration
Invention Patent, in each case, in Buyer’s name.

          (b) Excluded Asset Patents and Seller Next Generation Delivery System Patents. Seller
will have the responsibility for, and the obligation with respect to, filing, prosecuting and
maintaining the Excluded Asset Patents and Seller Next Generation Delivery System Patents at
Seller’s sole cost and expense. Buyer will fully cooperate with Seller, at Seller’s expense, in
connection with the filing, prosecution and maintenance of the Excluded Asset Patents and Seller
Next Generation Delivery System Patents, including by providing access to relevant Persons and
executing all documentation reasonably requested by Seller or its Affiliates. Seller shall have
full and complete control over the filing, prosecution and maintenance of the Excluded Asset
Patents and Seller Next Generation Delivery Patents; provided that, so long as Buyer is Developing
and/or Commercializing a Product utilizing the Seller Next Generation Delivery System, Seller will:

               (i) consult with Buyer and keep Buyer reasonably informed of the status of the Seller Next
Generation Delivery System Patents with respect to such Product, and will provide Buyer with all
material filings and correspondences with the patent authorities with respect to such Seller Next
Generation Delivery System Patents for Buyer’s review and comment; and

               (ii) notify Buyer of any decision not to file applications for, or to cease prosecution and/or
maintenance of, or not to continue to pay the expenses of prosecution and/or maintenance of, any
Seller Next Generation Delivery System Patents with respect to such Product. Seller will provide
such notice at least sixty (60) days prior to any filing or payment due date, or any other due date
that requires action, in connection with any such Seller Next Generation Delivery System Patent and
Buyer, at Buyer’s sole discretion and expense, will have a right to file or to continue prosecution
or maintenance of such Seller Next Generation Delivery System Patent in Seller’s name.

          3.4 Patent Infringement.

          (a) Purchased Asset Patents and Collaboration Invention Patents.

               (i) Each Party will notify the other of any infringement by a Third Party of any of the
Purchased Asset Patents, Collaboration Invention Patents or Seller Next Generation Delivery System
Patents that cover a Product of which such Party becomes aware, including any “patent
certification” filed in the United States under 21 U.S.C. §355(b)(2) or 21 U.S.C. §355(j)(2) or
similar provisions in other jurisdictions and of any declaratory judgment, opposition, or similar
action alleging the invalidity, unenforceability or non-infringement of any

 

 

of the Purchased Asset Patents, Collaboration Invention Patents or Seller Next Generation
Delivery System Patents that cover a Product (collectively “Product Infringement”).

               (ii) Buyer will have the sole right to bring and control any legal action in connection with
Product Infringement at Buyer’s own expense as it reasonably determines appropriate, and Seller
shall have the right, at Seller’s own expense, to be represented in any such action by counsel of
its own choice.

               (iii) If Buyer fails to bring an action or proceeding with respect to, or to terminate,
infringement of any Purchased Asset Patents, Collaboration Invention Patents or Seller Next
Generation Delivery System Patents that cover a Product (A) within ninety (90) days following
notice of alleged infringement or (B) prior to ten (10) days before the time limit, if any, set
forth in the appropriate laws and regulations for the filing of such actions, whichever comes
first, Seller shall have the right, upon prior consultation with Buyer, to bring and control any
such action at Seller’s own expense and by counsel of its own choice.

               (iv) At the request of the Party prosecuting the Product Infringement action or proceeding,
the other Party, at the prosecuting Party’s expense, shall provide reasonable assistance in
connection therewith, including by executing reasonably appropriate documents, cooperating in
discovery and joining as a party to the action if required.

               (v) In connection with any such proceeding, Buyer shall not enter into any settlement
admitting the invalidity of, or otherwise impairing the Purchased Asset Patents, Collaboration
Invention Patents or Seller Next Generation Delivery System Patents that cover a Product in any
manner that would impair royalties payable pursuant to the PCA without the prior written consent of
Seller, which will not be unreasonably withheld or delayed.

               (vi) Any recoveries resulting from an action relating to a claim of Product Infringement shall
be first applied against payment of each Party’s costs and expenses in connection therewith. Any
remainder will be considered Net Sales for purposes of Section 2.8(d) of the PCA.

          (b) Excluded Asset Patents and Seller Next Generation Delivery System Patents.

               (i) Each Party will notify the other of any infringement by a Third Party of any of the
Excluded Asset Patents or Seller Next Generation Delivery System Patents (other than Seller Next
Generation Delivery System Patents that cover a Product, which are included within Section
3.4(a)(i)) of which such Party becomes aware, including any “patent certification” filed in the
United States under 21 U.S.C. §355(b)(2) or 21 U.S.C. §355(j)(2) or similar provisions in other
jurisdictions and of any declaratory judgment, opposition, or similar action alleging the
invalidity, unenforceability or non-infringement of any of such Excluded Asset Patent or Seller
Next Generation Delivery System Patent (other than Seller Next Generation Delivery System Patents
that cover a Product, which are included within Section 3.4(a)(i)).

               (ii) Seller will have the sole right to bring and control any legal action in connection with
infringement of any Excluded Asset Patent or Seller Next Generation

 

 

Delivery System Patents (other than Seller Next Generation Delivery System Patents that cover
a Product, which are included within Section 3.4(a)(ii)) at Seller’s own expense as it reasonably
determines appropriate.

               (iii) If Seller fails to bring an action or proceeding with respect to, or to terminate,
infringement of any Excluded Asset Patent or Seller Next Generation Delivery System Patents (other
than Seller Next Generation Delivery System Patents that cover a Product, which are included within
Section 3.4(a)(iii)) (A) within ninety (90) days following notice of alleged infringement or (B)
prior to ten (10) days before the time limit, if any, set forth in the appropriate laws and
regulations for the filing of such actions, whichever comes first, Buyer shall have the right, upon
prior consultation with Seller, to bring and control any such action at its own expense and by
counsel of its own choice.

               (iv) At the request of the Party prosecuting the infringement action or proceeding, the other
Party shall provide reasonable assistance in connection therewith, including by executing
reasonably appropriate documents, cooperating in discovery and joining as a party to the action if
required.

               (v) In connection with any such proceeding, the Party prosecuting the infringement action or
proceeding shall not enter into any settlement admitting the invalidity of, or otherwise impairing
any Excluded Asset Patent or Seller Next Generation Delivery System Patent (other than Seller Next
Generation Delivery System Patents that cover a Product, which are included within Section
3.4(a)(v)) utilized in a Product in any manner that would impair the other Party’s Development
and/or Commercialization of such Product or a product utilizing the Seller Next Generation Delivery
System without the prior written consent of the other Party, which will not be unreasonably
withheld or delayed.

               (vi) Any recoveries resulting from an action relating to a claim of infringement of any
Excluded Asset Patent or Seller Next Generation Delivery System Patent (other than Seller Next
Generation Delivery System Patents that cover a Product, which are included within Section
3.4(a)(vi)) utilized in a Product shall be first applied against payment of each Party’s costs and
expenses in connection therewith. Any remainder will be retained by Seller.

          3.5 Third Party Agreements. Each Party shall ensure that any agreement entered into
with Third Parties engaged to perform Development activities pursuant to the PCA provides for
ownership of inventions and other rights in favor of such Party consistent with this Agreement.

ARTICLE IV.

CONSIDERATION; NO IMPLIED LICENSES

          4.1 Consideration. The rights and obligations provided under this Agreement are being
provided as a condition to the First Closing under the PCA. As such, no further consideration,
financial or otherwise, will be due under this Agreement, except as expressly provided herein.

 

 

          4.2 No Implied Licenses. Any Intellectual Property rights of a Party not expressly
granted to the other Party under the provisions of this Agreement shall be retained by such Party.
Except as expressly provided in this Agreement, a Party does not grant to the other Party any right
or license in any Intellectual Property right, whether by implication, estoppel or otherwise.

ARTICLE V.

TERM AND TERMINATION

          5.1 Term. The term of this Agreement shall commence on the Effective Date and shall
continue until the Parties mutually agree in writing to terminate this Agreement.

          5.2 Bankruptcy. Any licenses granted under or pursuant to this Agreement by either
Party to the other Party are, and shall otherwise be deemed to be, for purposes of Section 365(n)
of Title 11, US Code (the “Bankruptcy Code”), licenses of rights to “intellectual property” as
defined under Section 101(35A) of the Bankruptcy Code. The Parties agree that during the term of
this Agreement, each Party, as a licensee of rights under this Agreement, shall retain and may
fully exercise all of its rights and elections under the Bankruptcy Code. The Parties further
agree that, in the event of the commencement of a bankruptcy proceeding by or against a Party under
the Bankruptcy Code, then the other Party (which is not a Party to such proceeding) will be
entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual
property licensed to such other Party under this Agreement and all embodiments of such intellectual
property, and same, if not already in such other Party’s possession, will be promptly delivered by
the Party to such other Party (a) upon any such commencement of a bankruptcy proceeding upon its
written request therefor, unless the Party subject to such proceeding elects to continue, and
thereafter continues, to perform all of its obligations under this Agreement, or (b) if not
delivered under (a) above, following the rejection of this Agreement by or on behalf of the Party
subject to such proceeding upon written request therefor by the non-subject Party.

ARTICLE VI.

MISCELLANEOUS

          6.1 Disclaimer of Warranty. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS
AGREEMENT OR THE PCA, NEITHER PARTY MAKES ANY REPRESENTATIONS NOR GRANTS ANY WARRANTIES, EXPRESS OR
IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE RELATED TO ANY AND ALL OF
THE INTELLECTUAL PROPERTY LICENSED HEREUNDER, AND EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER
REPRESENTATIONS AND WARRANTIES, WHETHER WRITTEN OR ORAL, EXPRESS, STATUTORY OR IMPLIED, INCLUDING
ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE.

          6.2 Governing Law. This Agreement (including any claim or controversy arising out of
or relating to this Agreement) shall be governed by and construed in accordance

 

 

with the Laws of the State of Delaware without regard to conflict of law principles that would
result in the application of any Law other than the Laws of the State of Delaware.

          6.3 Waiver. Any term or condition of this Agreement may be waived at any time by the
Party that is entitled to the benefit thereof, but no such waiver shall be effective unless set
forth in a written instrument duly executed by or on behalf of the party waiving such term or
condition. The failure of any Party to enforce any condition or part of this Agreement at any time
shall not be construed as a waiver of that condition or part, nor shall it forfeit any rights to
future enforcement thereof.

          6.4 Notices. All notices, requests, claims, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given (a) when received if
delivered personally, (b) when transmitted if telecopied (which is confirmed), (c) upon receipt, if
sent by registered or certified mail (postage prepaid, return receipt requested) and (d) the day
after it is sent, if sent for next-day delivery to a domestic address by overnight mail or courier,
to the Parties at the following addresses:

          If to Seller, to:

Columbia Laboratories, Inc.

354 Eisenhower Parkway

Plaza 1, Second Floor

Livingston, NJ 07039

Attention: General Counsel

Facsimile: 973.994.3001

          with copies (which shall not constitute notice) sent concurrently
to:

Kaye Scholer LLP

425 Park Avenue

New York, NY 10022

Attention: Adam H. Golden and Steven G. Canner

Facsimile: 212.836.8689

          If to Buyer, to:

Coventry Acquisition, Inc.

311 Bonnie Circle

Corona, CA 92880

Attention: General Counsel

Facsimile: 951.493.5817

 

 

          with copies (which shall not constitute notice) sent concurrently
to:

Latham & Watkins LLP

650 Town Center Drive, 20th Floor

Costa Mesa, CA 92626-1925

Attention: R. Scott Shean

Facsimile: 714.755.8290

provided, however, that if any Party shall have designated a different address by notice to the
others, then to the last address so designated.

          6.5 (a) Relationship of the Parties. The Parties are independent contractors.
Nothing herein is intended, or shall be deemed, to constitute a partnership, agency, joint venture
or employment relationship between the Parties. Neither Party shall be responsible for the other
Party’s acts or omissions; and neither Party shall have authority to speak for, represent or
obligate the other Party in any way without prior written authority from the other Party. Subject
to the terms of this Agreement, the activities and resources of each Party shall be managed by such
Party, acting independently and in its individual capacity.

          (a) No Third Party Beneficiaries. This Agreement is solely for the benefit of the
Parties hereto and their respective Affiliates and no provision of this Agreement shall be deemed
to confer upon any third parties any remedy, claim, liability, reimbursement, claim of action or
other right in excess of those existing without reference to this Agreement.

          6.6 Amendment; Entire Agreement. This Agreement may not be amended, supplemented or
otherwise modified except by an instrument in writing signed by both Parties hereto. This
Agreement, the PCA, the Other Agreements and the Confidentiality Agreement contain the entire
agreement of the Parties hereto with respect to the Transactions, superseding all negotiations,
prior discussions and preliminary agreements made prior to the Effective Date.

          6.7 Severability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction or other Regulatory Authority to be invalid, void,
unenforceable or against its regulatory policy such determination shall not affect the
enforceability of any others or of the remainder of this Agreement.

          6.8 Assignment and Transfer.

          (a) Neither this Agreement nor any right or obligation hereunder may be assigned or otherwise
transferred by either Party without the prior written consent of the other Party, except that
either Party may, without consent of the other Party, assign or otherwise transfer this Agreement
and its rights and obligations hereunder in whole or in part: (i) to any Affiliate; (ii) in
connection with a merger, reorganization or a sale or transfer of all or substantially all of the
assets to which this Agreement relates. Any attempted assignment or other transfer not in
accordance with this Section 6.8 shall be void. Any permitted assignee shall assume in writing all
assigned obligations of its assignor under this Agreement. The Party making any assignment or
other transfer permitted under this Section 6.8 shall provide prompt written notice to the other
Party of such assignment or transfer. The assignor shall remain jointly

 

 

and severally liable with any such assignee(s) with respect to all obligations and liabilities
of the assignor hereunder.

          (b) Successors and Assigns. Except as otherwise provided herein, this Agreement shall
be binding upon and inure to the benefit of the Parties hereto and their successors and permitted
assigns.

          6.9 Arbitration.

          (a) All disputes, differences, controversies and claims of the Parties arising out of or
relating to the Agreement (individually, a “Dispute” and, collectively, “Disputes”), except as
otherwise provided under this Agreement, shall be resolved by final and binding arbitration
administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration
Rules, subject to the provisions of this Section 6.9.

          (b) Following the delivery of a written demand for arbitration by either Party, each of Buyer
and Seller shall choose one (1) arbitrator within ten (10) Business Days after the date of such
written demand and the two chosen arbitrators shall mutually, within ten (10) Business Days after
selection select a third (3rd) arbitrator (each, an “Arbitrator” and together, the “Arbitrators”),
each of whom shall be a retired judge selected from a roster of arbitrators provided by the AAA.
If the third (3rd) Arbitrator is not selected within fifteen (15) Business Days after delivery of
the written demand for arbitration (or such other time period as the Parties may agree), the
Parties shall promptly request that the commercial panel of the AAA select an independent
Arbitrator meeting such criteria.

          (c) The rules of arbitration shall be the Commercial Rules of the American Arbitration
Association; provided, however, that notwithstanding any provisions of the Commercial Arbitration
Rules to the contrary, unless otherwise mutually agreed to by Buyer and Seller, the sole discovery
available to each Party shall be its right to conduct up to two (2) non expert depositions of no
more than three (3) hours of testimony each.

          (d) The Arbitrators shall render an award by majority decision within three (3) months after
the date of appointment, unless the Parties agree to extend such time. The award shall be final
and binding upon the Parties.

          (e) Any judicial proceeding arising out of or relating to this Agreement or the relationship
of the Parties, including without limitation any proceeding to enforce this Section 6.9, to review
or confirm the award in arbitration, shall be brought exclusively in the Delaware Chancery Court
sitting in the county of New Castle, Delaware (the “Enforcing Court”). By execution and delivery
of this Agreement, each Party accepts the jurisdiction of the Enforcing Court.

          (f) Each Party shall pay its own expenses in connection with the resolution of Disputes
pursuant to this Section 6.9, including attorneys’ fees, unless determined otherwise by the
Arbitrator.

          (g) The Parties agree that the existence, conduct and content of any arbitration pursuant to
this Section 6.9 shall be kept confidential and no Party shall disclose to any Person

 

 

any information about such arbitration, except in connection with such arbitration or as may
be required by Law or by any Regulatory Authority (or any exchange on which such Party’s securities
are listed) or for financial reporting purposes in such Party’s financial statements.

          (h) Notwithstanding the foregoing, none of the provisions of this Section 6.9 shall restrict
the right of any Party to seek injunctive relief or other equitable remedies, to enjoin any breach
or threatened breach of this Agreement or otherwise specifically enforce any provision of this
Agreement.

          6.10 Remedies.

          (a) Injunctive Relief. The Parties hereto agree that irreparable damage would occur
in the event that any of the provisions of this Agreement were not performed in accordance with
their specific terms or were otherwise breached and that such damages would not be fully
compensable by an award of money damages. It is accordingly agreed that the Parties hereto shall
be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions of this Agreement without posting a bond or other
undertaking, this being in addition to any other remedy to which they are entitled at law or in
equity. The parties agree that notwithstanding Section 6.9, any Action brought for an injunction,
or for specific performance shall be heard and exclusively in the Delaware Chancery Court sitting
in New Castle County and each Party waives any objection which it may now or hereafter have to the
laying of venue of any such proceeding, and irrevocably submits to the jurisdiction of such courts
in any such suit, action or proceeding.

          (b) Indemnification. Seller represents and warrants to Buyer that, other than the
Non-US Rights to Intellectual Property, any Intellectual Property licensed by Seller to Buyer
hereunder (including without limitation any Excluded Asset Technology and Seller Next Generation
Delivery System Technology licensed by Seller to Buyer pursuant to Section 2.1(a)) is owned
directly by Columbia Laboratories, Inc., and has not been assigned or otherwise transferred to any
other Person. Seller shall indemnify, reimburse and defend Buyer and its Affiliates and each of
their respective Representatives, successors and assigns from and against, and hold them harmless
from, any Taxes (including without limitation any withholding Taxes) arising from any breach of the
foregoing representation and warranty.

          6.11 Interpretation. Unless the context of this Agreement otherwise requires, (a)
words of one gender include the other gender; and (b) words using the singular or plural number
also include the plural or singular number, respectively. Reference to days are to calendar days
unless specified otherwise. References to any statute, act, or regulation are to that statute,
act, or regulation as amended, modified or supplemented from time to time in accordance with the
terms hereof and thereof. The headings contained in this Agreement are for convenience of
reference only and shall not be considered in interpreting this Agreement. The words “hereof”,
“herein” and “hereunder” and words of like import used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement. Whenever the words
“include”, “includes” or “including” are used in this Agreement, they shall be deemed to be
followed by the words “without limitation”, whether or not they are in fact followed by those words
or words of like import. The language in all parts of this Agreement shall be construed, in all
cases, according to its fair meaning. The Parties acknowledge that each

 

 

Party and its counsel have reviewed and revised this Agreement and that any rule of
construction to the effect that any ambiguities are to be resolved against the drafting Party shall
not be employed in the interpretation of this Agreement.

          6.12 Counterparts. This Agreement may be executed in two or more counterparts
(including by facsimile or by an electronic scan delivered by electronic mail), each of which shall
be deemed to be an original, but all of which, taken together, shall constitute one and the same
agreement and shall become effective when counterparts have been signed by each of the Parties
hereto delivered to the other Parties, it being understood that all Parties need not sign the same
counterpart.

          6.13 Further Actions. Each Party will duly execute and deliver, or cause to be duly
executed and delivered, such further instruments and do and cause to be done such further acts and
things, as may be reasonably necessary or as the other Party may reasonably request in connection
with this Agreement in order to carry out more effectively the provisions and purposes hereof.

[Remainder of Page Left Intentionally Blank]

 

 

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

	 	 	 	 	 
	 	

COLUMBIA LABORATORIES, INC.

 	 
	 	By:  	/s/ Frank C. Condella, Jr.
 	 
	 	 	Name:  	Frank C. Condella, Jr. 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	COLUMBIA LABORATORIES (BERMUDA) LTD.

 	 
	 	By:  	/s/ Michael McGrane
 	 
	 	 	Name:  	Michael McGrane 	 
	 	 	Title:  	Vice President 	 
	 
	 	COVENTRY ACQUISITION, INC.

 	 
	 	By:  	/s/ Paul M. Bisaro
 	 
	 	 	Name:  	Paul M. Bisaro 	 
	 	 	Title:  	President and Chief
Executive Officerexv10w1

Exhibit 10.1

Execution
copy

 

364-DAY CREDIT AGREEMENT

Dated as of July 2, 2010

among

PATTERSON — UTI ENERGY, INC.,

as the Borrower,

WELLS FARGO BANK, N.A.,

as Administrative Agent and a Lender,

and

The Other Lenders Party Hereto

 

 

 

TABLE
OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	 
	1.01 Defined Terms
	 	 	1	 
	1.02 Other Interpretive Provisions
	 	 	20	 
	1.03 Accounting Terms
	 	 	21	 
	1.04 Rounding
	 	 	21	 
	1.05 Times of Day
	 	 	21	 
	1.06 Responsible Officer
	 	 	21	 
	 
	ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS
	 	 	22	 
	 
	2.01 Loans
	 	 	22	 
	2.02 Borrowings, Conversions and Continuations of Loans
	 	 	22	 
	2.03 [Reserved]
	 	 	23	 
	2.04 Voluntary Prepayments
	 	 	23	 
	2.05 Mandatory Prepayments
	 	 	23	 
	2.06 [Reserved]
	 	 	24	 
	2.07 Repayment of Loans
	 	 	24	 
	2.08 Interest
	 	 	24	 
	2.09 Fees
	 	 	25	 
	2.10 Computation of Interest and Fees
	 	 	25	 
	2.11 Evidence of Debt
	 	 	25	 
	2.12 Payments Generally; Administrative Agent’s Clawback
	 	 	26	 
	2.13 Sharing of Payments by Lenders
	 	 	27	 
	 
	ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	28	 
	 
	3.01 Taxes
	 	 	28	 
	3.02 Illegality
	 	 	30	 
	3.03 Inability to Determine Rates
	 	 	31	 
	3.04 Increased Costs; Reserves on Eurodollar Rate Loans
	 	 	31	 
	3.05 Compensation for Losses
	 	 	32	 
	3.06 Mitigation Obligations
	 	 	33	 
	3.07 Survival
	 	 	33	 
	 
	ARTICLE IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	 	 	33	 

-i-

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	4.01 Conditions of Initial Credit Extension
	 	 	33	 
	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES
	 	 	35	 
	 
	5.01 Existence, Qualification and Power; Compliance with Laws
	 	 	35	 
	5.02 Authorization; No Contravention
	 	 	36	 
	5.03 Governmental Authorization; Other Consents
	 	 	36	 
	5.04 Binding Effect
	 	 	36	 
	5.05 Financial Statements
	 	 	36	 
	5.06 Litigation
	 	 	36	 
	5.07 No Default
	 	 	37	 
	5.08 Ownership of Property; Liens
	 	 	37	 
	5.09 Environmental Compliance
	 	 	37	 
	5.10 Insurance
	 	 	37	 
	5.11 Taxes
	 	 	37	 
	5.12 ERISA Compliance
	 	 	37	 
	5.13 Subsidiaries; Equity Interests
	 	 	38	 
	5.14 Margin Regulations; Investment Company Act
	 	 	38	 
	5.15 Disclosure
	 	 	38	 
	5.16 Compliance with Laws
	 	 	39	 
	 
	ARTICLE VI AFFIRMATIVE COVENANTS
	 	 	39	 
	 
	6.01 Financial Statements
	 	 	39	 
	6.02 Certificates; Other Information
	 	 	40	 
	6.03 Notices
	 	 	41	 
	6.04 Payment of Obligations
	 	 	42	 
	6.05 Preservation of Existence, Etc
	 	 	42	 
	6.06 Maintenance of Properties
	 	 	42	 
	6.07 Maintenance of Insurance
	 	 	42	 
	6.08 Compliance with Laws
	 	 	42	 
	6.09 Books and Records
	 	 	43	 
	6.10 Inspection Rights
	 	 	43	 
	6.11 Use of Proceeds
	 	 	43	 

-ii-

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	6.12 Additional Guarantors
	 	 	43	 
	 
	ARTICLE VII NEGATIVE COVENANTS
	 	 	43	 
	 
	7.01 Liens
	 	 	43	 
	7.02 Foreign Subsidiaries and Joint Ventures
	 	 	45	 
	7.03 Indebtedness of Subsidiaries
	 	 	45	 
	7.04 Fundamental Changes
	 	 	46	 
	7.05 Hedging Agreements
	 	 	47	 
	7.06 Change in Nature of Business
	 	 	47	 
	7.07 Transactions with Affiliates
	 	 	47	 
	7.08 Burdensome Agreements
	 	 	48	 
	7.09 Use of Proceeds
	 	 	48	 
	7.10 Financial Covenants
	 	 	48	 
	 
	ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES
	 	 	48	 
	 
	8.01 Events of Default
	 	 	48	 
	8.02 Remedies Upon Event of Default
	 	 	50	 
	8.03 Application of Funds
	 	 	51	 
	 
	ARTICLE IX ADMINISTRATIVE AGENT
	 	 	51	 
	 
	9.01 Appointment and Authority
	 	 	51	 
	9.02 Rights as a Lender
	 	 	51	 
	9.03 Exculpatory Provisions
	 	 	52	 
	9.04 Reliance by Administrative Agent
	 	 	53	 
	9.05 Delegation of Duties
	 	 	53	 
	9.06 Resignation of Administrative Agent
	 	 	53	 
	9.07 Non-Reliance on Administrative Agent and Other Lenders
	 	 	54	 
	9.08 No
Other Duties, Etc.
	 	 	54	 
	9.09 Administrative Agent May File Proofs of Claim
	 	 	54	 
	9.10 Guaranty Matters
	 	 	55	 
	 
	ARTICLE X MISCELLANEOUS
	 	 	55	 
	 
	10.01
Amendments, Etc.
	 	 	55	 
	10.02 Notices; Effectiveness; Electronic Communication
	 	 	56	 

-iii-

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	10.03 No Waiver; Cumulative Remedies
	 	 	57	 
	10.04 Expenses; Indemnity; Damage Waiver
	 	 	57	 
	10.05 Payments Set Aside
	 	 	59	 
	10.06 Successors and Assigns
	 	 	59	 
	10.07 Treatment of Certain Information; Confidentiality
	 	 	63	 
	10.08 Right of Setoff
	 	 	64	 
	10.09 Interest Rate Limitation
	 	 	64	 
	10.10 Counterparts; Integration; Effectiveness
	 	 	64	 
	10.11 Survival of Representations and Warranties
	 	 	65	 
	10.12 Severability
	 	 	65	 
	10.13 Replacement of Lenders
	 	 	65	 
	10.14
Governing Law; Jurisdiction; Etc.
	 	 	66	 
	10.15 Waiver of Jury Trial
	 	 	67	 
	10.16 USA PATRIOT Act Notice
	 	 	67	 
	10.17 ENTIRE AGREEMENT
	 	 	67	 
	 
	SIGNATURES
	 	 	S-1	 

-iv-

 

TABLE
OF CONTENTS

(continued)

SCHEDULES

	 	 	 	 	 	 	 

	 

	 	 	2.01	 	 	Commitments and Applicable Percentages
	 

	 	 	5.13	 	 	Subsidiaries; Other Equity Investments
	 

	 	 	7.01	 	 	Existing Liens
	 

	 	 	10.02	 	 	Administrative Agent’s Office; Certain Addresses for Notices

EXHIBITS

	 	 	 	 	 

	 

	 	 	 	Form of
	 

	 	A
	 	Loan Notice
	 

	 	B
	 	Note
	 

	 	C
	 	Compliance Certificate
	 

	 	D
	 	Assignment and Assumption
	 

	 	E
	 	Guaranty
	 

	 	F
	 	Opinion of Counsel
	 

	 	G
	 	Prepayment Notice

 

 

364-DAY CREDIT AGREEMENT

     This 364-DAY CREDIT AGREEMENT is entered into as of July 2, 2010 among PATTERSON — UTI
ENERGY, INC., a Delaware corporation (the “Borrower”), each lender from time to time party
hereto (collectively, the “Lenders” and individually, a “Lender”), and WELLS FARGO
BANK, N.A., as Administrative Agent and a Lender.

     The Borrower has requested that the Lenders provide a term loan facility, 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 acquisition by the Borrower or one of its wholly-owned
Subsidiaries of certain pressure pumping and electric wireline businesses of the Sellers pursuant
to the Asset Purchase Agreement.

     “Acquisition Documents” means the “Transaction Documents” as defined in the Asset
Purchase Agreement.

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

     “Administrative Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02, or such other address or account as
the Administrative Agent may from time to time provide to the Borrower 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 Commitments” means the Commitments of all the Lenders.

     “Agreement” means this 364-Day Credit Agreement, as the same may hereafter be renewed,
extended, amended or restated from time to time.

 

 

     “Applicable Percentage” means with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of the Aggregate Commitments represented by such Lender’s
Commitment at such time. If the commitment of each Lender to make Loans has been terminated
pursuant to Section 8.02 or if the Aggregate Commitments have expired, then the Applicable
Percentage of each Lender shall be determined based on the Applicable Percentage of such Lender
most recently in effect, giving effect to any subsequent assignments. The initial Applicable
Percentage 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 to Capitalization Ratio as set forth below:

Applicable Rate

	 	 	 	 	 	 	 
	 	 	 	 	Eurodollar	 	 
	 	 	Debt to	 	Rate;	 	 
	Pricing	 	Capitalization	 	Letters of	 	 
	Level	 	Ratio	 	Credit	 	Base Rate
	1
	 	Less than or equal to 20%
	 	3.00%
	 	2.00%
	 	 	 	 	 	 	 
	2
	 	Greater than 20%, but less
than or equal to 30%
	 	3.50%
	 	2.50%
	 	 	 	 	 	 	 
	3
	 	Greater than 30%
	 	4.00%
	 	3.00%

     Any increase or decrease in the Applicable Rate resulting from a change in the Debt to
Capitalization Ratio shall become effective as of the date (the “Adjustment Date”) that is
the first day of the fiscal quarter (the “Applicable Quarter”) immediately following the
date that a Compliance Certificate is due to be delivered pursuant to Section 6.02(b)
hereof; provided, however, that if a Compliance Certificate is not delivered within thirty (30)
days after the date due, then Pricing Level 3 shall apply as of the Adjustment Date.

     The Applicable Rate in effect from the Closing Date through the date the Compliance
Certificate is delivered in connection with the fiscal quarter ended September 30, 2010, shall be
the Pricing Level 1.

     “Asset Disposition” means any disposition, (i) whether by sale, lease, license,
transfer or otherwise, to a Person that is not a Subsidiary of any or all of the property of the
Borrower or any of its Subsidiaries, other than (a) dispositions in the ordinary course of
business, (b) any casualty or other insured damage to, or any taking under power of eminent domain
or condemnation or similar proceeding of, any property or asset of the Borrower or any of its
Subsidiaries, (c) leases or subleases of property and licenses or sublicenses of intellectual
property, (d) dispositions or write-downs of accounts receivable in connection with the compromise,
settlement or collection thereof in the ordinary course of business or bankruptcy or similar
proceedings, (e) disposition of investments’ acquired in connection with the bankruptcy or
reorganization of, or settlement of

-2-

 

delinquent accounts and disputes with customers and suppliers
or as a result of a foreclosure by Borrower or any of its Subsidiaries with respect to any secured
investment or other transfer of title with respect to any secured investment in default, (f)
customary post closing settlement arrangements as part of a merger or acquisition, (g) Liens permitted by Section 7.01, (h)
voluntary termination of Swap Contracts; and (ii) the Net Proceeds of which exceed $5,000,000 in a
single transaction or $10,000,000 in the aggregate during any fiscal year.

     “Asset Purchase Agreement” means the Asset Purchase Agreement dated as of July 2, 2010
among one or more of the Borrower’s wholly-owned Subsidiaries, the Borrower, the Sellers, and Key
Energy Services, Inc., a Maryland corporation, together with all exhibits and schedules thereto.

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

     “Audited Financial Statements” means the audited consolidated balance sheet of the
Borrower and its Subsidiaries for the fiscal year ended December 31, 2009, and the related
consolidated statements of income or operations, shareholders’ equity and cash flows for such
fiscal year of the Borrower and its Subsidiaries, including the notes thereto.

     “Base Rate” means for any day a fluctuating rate per annum equal to the greatest of
(a) the Federal Funds Rate plus one and one-half percent (1.50%), (b) the Daily One Month LIBOR
Rate plus one and one-half percent (1.50%), and (c) the rate of interest in effect for such day as
publicly announced from time to time by Wells Fargo as its “prime rate.” The “prime rate” is a
rate set by Wells Fargo based upon various factors including Wells Fargo’s 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 shall take effect at the opening of business on the day specified in the
public announcement of such change.

     “Base Rate Loan” means a Loan that bears interest based on the Base Rate.

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

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

-3-

 

     “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 is located and, if such day relates to any Eurodollar
Rate Loan, means, in addition, any such day on which dealings in Dollar deposits are conducted by
and between banks in the London interbank eurodollar market.

     “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 25% or more of the equity securities of
the Borrower entitled to vote for members of the board of directors or equivalent governing body of
the Borrower on a fully-diluted basis (and taking into account all such securities that such person
or group has the right to acquire pursuant to any option right);

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

-4-

 

all such securities that such Person or group has the right to acquire pursuant to any option
right) representing 25% 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, which date shall not be
later than September 30, 2010 (or October 30 upon Wells Fargo’s receipt of the Commitment Extension
Fee (as defined in the Fee Letter)).

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

     “Commitment” means, as to each Lender, its obligation to make Loans to the Borrower
pursuant to Section 2.01 in an aggregate principal amount at any one time outstanding not
to exceed the 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.

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

     “Consolidated EBITDA” means, for any period, for the Borrower and its Subsidiaries on
a consolidated basis, an amount equal to Consolidated Net Income for such period plus (a) the
following to the extent deducted in calculating such Consolidated Net Income: (i) Consolidated
Interest Charges for such period, (ii) the provision for Federal, state, local and foreign income
taxes (including state franchise taxes based on income or similar taxes based on income) payable by
the Borrower and its Subsidiaries for such period, (iii) depreciation, depletion and amortization
expense and (iv) other expenses of the Borrower and its Subsidiaries reducing such Consolidated Net
Income which do not represent a cash item in such period or any future period and minus, to the
extent included in calculating such Consolidated Net Income, all non-cash items increasing
Consolidated Net Income for such period. For the purposes of calculating Consolidated EBITDA for
any period of four consecutive fiscal quarters, if the Borrower or any Subsidiary has had a
material acquisition during such period, Consolidated EBITDA for such period shall be calculated
after giving pro forma effect thereto as if such material acquisition had occurred on the first day
of such period.

     “Consolidated Funded Indebtedness” means, as of any date of determination,
Indebtedness of the Borrower and its Subsidiaries on a consolidated basis, excluding (a)
Indebtedness of the type described in clauses (b) (so long as such amounts in such clause are
contingent obligations), (c) and (g) of the definition of Indebtedness; and (b) Guarantees in
respect of Indebtedness described in the foregoing clause (a).

     “Consolidated Interest Charges” means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, the sum of (a) all interest, premium payments, debt discount,
fees, charges and related expenses of the Borrower 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 Borrower and its Subsidiaries with respect to such period under capital leases that
is treated as interest in accordance with GAAP.

-5-

 

     “Consolidated Net Income” means, for any period, for the Borrower and its Subsidiaries
on a consolidated basis, the net income of the Borrower and its Subsidiaries (excluding
extraordinary gains and extraordinary losses) for that period.

     “Consolidated Net Worth” means, as of any date of determination, for the Borrower and
its Subsidiaries on a consolidated basis, Shareholders’ Equity of the Borrower and its Subsidiaries
on that date.

     “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 a Borrowing.

     “Daily One Month LIBOR” means, for any day, the rate per annum equal to the Eurodollar
Rate for a one month Interest Period.

     “Debt to Capitalization Ratio” means the ratio of Consolidated Funded Indebtedness to
Total Capital.

     “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 an interest rate equal to (a) the Base Rate plus (b) the
Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per annum; provided, however,
that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to
the interest rate (including any Applicable Rate) otherwise applicable to such Loan plus 2% per
annum.

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Loans or any other amount required to be funded by it hereunder within one Business Day of the date
required to be funded by it hereunder, (b) has indicated to the Administrative Agent that such
Lender will not fund any portion of the Loans required to be funded by it hereunder, (c) 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 (d) (i) has become, been deemed, or is insolvent or (ii) become
the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee,

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or custodian appointed for it, or has taken any action in furtherance of, or indicating
its consent to, approval of or acquiescence in any such proceeding or appointment.

     “Disposition” or “Dispose” means the sale, transfer, 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.

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

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

     “Eligible Assignee” means any Person (other than a natural person) approved by (a) the
Administrative Agent and (b) unless an Event of Default has occurred and is continuing, the
Borrower (each such approval not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of the
Borrower’s Affiliates or Subsidiaries.

     “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
Borrower, 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.

     “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.

     “Equity Issuance” means any issuance of Equity Interests by the Borrower after the
Closing Date, other than Equity Interests issued pursuant to stock option plans or other benefit
plans, incentive or compensation arrangements or agreements for directors, officers or

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employees of
the Borrower and its Subsidiaries, or issued or sold as compensation and held by future, present or
former directors, officers, members of management, employees or consultants of the Borrower or any
of its Subsidiaries or family members or relatives thereof, or trusts, partnerships or limited
liability companies for the benefit or any of the foregoing, or any of their heirs, executors
successors and legal representatives

     “Equity Issuance Proceeds” means, with respect to any Equity Issuance, all cash
proceeds actually received by the Borrower from such Equity Issuance, net of underwriting discounts
and commissions and net of out-of-pocket costs, expenses and disbursements paid or incurred in
connection therewith; for the avoidance of doubt, the Borrower shall be deemed not to have received
cash proceeds for purposes of this definition with respect to the cashless exercise of a warrant,
option or other right or the withholding of cash for tax purposes related to the exercise of a
warrant, option or other right.

     “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 Borrower within the meaning of Section 414(b) or (c), (m) or (o) of the
Code.

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Borrower 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 withdrawal (within the meaning of Section 4203 of ERISA) or partial
withdrawal (within the meaning of Section 4205 of ERISA) by the Borrower or any ERISA Affiliate
from a Multiemployer Plan or receipt by the Borrower or an ERISA Affiliate of notice that a
Multiemployer Plan is in reorganization within the meaning of Section 4241 of ERISA; (d) the filing
of a notice of intent to terminate, the treatment of a Plan amendment as a termination under
Section 4041(c) of ERISA, receipt by the Borrower or an ERISA Affiliate of notice or the
termination or a Multiemployer Plan under Section 4041A of ERISA, or receipt by the Borrower or an
ERISA Affiliate of notice of the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) receipt by the Borrower or an ERISA Affiliate of notice of a
determination by the PBGC that an event has occurred or a condition exists which constitutes
grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Pension Plan or Multiemployer Plan; or (f) 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 Borrower or any ERISA Affiliate.

     “Eurodollar Rate” means, for any Interest Period with respect to a Eurodollar Rate
Loan, the rate per annum (rounded upward, if necessary, to the nearest whole 1/8 of 1%) equal to
the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other
commercially available, internationally recognized source providing quotations of BBA LIBOR as
designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time,
two (2) Business Days prior to the commencement of such Interest Period, for Dollar deposits (for
delivery on the first day of such Interest Period) with a term equivalent to

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such Interest Period. If such rate is not available at such time for any reason or will not adequately and fairly reflect
the cost to the Required Lenders of funding such Loan, then either (A) the “Eurodollar Rate” for
such Interest Period shall be the rate per annum determined by the Administrative Agent to be the
rate at which deposits in Dollars for delivery on the first day of such Interest Period in same day
funds in the approximate amount of the Eurodollar Rate Loan being made, continued or converted by
Administrative Agent and with a term equivalent to such Interest Period would be offered by
Administrative Agent’s London Branch to major banks in the London interbank eurodollar market at
their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement
of such Interest Period or (B) for purposes of determining the Daily One Month LIBOR Rate only, the
Daily One Month LIBOR Rate shall be equal to the arithmetic average (rounded in accordance with
normal market practice) of BBA LIBOR for each day during the week prior to BBA LIBOR becoming
unavailable.

     “Eurodollar Rate Loan” means a Loan that bears interest at a rate based on the
Eurodollar Rate.

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

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender or any
other recipient of any payment to be made by or on account of any obligation of the 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 United States, any state
thereof, or 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 the Administrative
Agent, any Lender, any other recipient of any payment to be made by or on account of any obligation
of the Borrower hereunder or the Borrower is located, (c) in the case of a Foreign Lender, 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 entitled, at the time of designation of a new Lending Office (or assignment), to receive
additional amounts from the Borrower with respect to such withholding tax pursuant to Section
3.01(a), and (d) in the case of any Foreign Lender that is subject to withholding tax on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party hereto (or
designates a new Lending Office), any additional withholding tax that is imposed on amounts payable
to such Foreign Lender as a result of a Change in Law.

     “Existing Credit Agreement” means the Credit Agreement dated as of March 20, 2009
among the Borrower, the lenders party thereto and Wells Fargo, as administrative agent, as amended,
supplemented or otherwise modified on or before the date hereof.

     “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

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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 rate most recently published.

     “Fee Letter” means the letter agreement, dated June 17, 2010, between the Borrower and
Wells Fargo.

     “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the 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 Subsidiary” means any Subsidiary other than a Domestic Subsidiary.

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

     “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).

     “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

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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.

     “Guarantor” means (a) as of the Closing Date, each of the Domestic Subsidiaries
identified on Schedule 5.13, and (b) after the Closing Date, any other Subsidiary of the
Company required to execute a Guaranty under Section 6.12 hereof.

     “Guaranty” means the Guaranty made by the Guarantors in favor of the Administrative
Agent and the Lenders, substantially in the form of Exhibit E, and such additional guaranty
agreements as may hereafter be executed.

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

     “Hydrocarbon Interests” means all rights, titles, interests and estates now owned or
hereafter acquired by the Borrower or any of its Subsidiaries in any and all oil, gas and other
liquid or gaseous hydrocarbon properties and interests, including without limitation, mineral fee
or lease interests, production sharing agreements, concession agreements, license agreements,
service agreements, risk service agreements or similar Hydrocarbon interests granted by an
appropriate Governmental Authority, farmout, overriding royalty and royalty interests, net profit
interests, oil payments, production payment interests and similar interests in Hydrocarbons,
including any reserved or residual interests of whatever nature.

     “Hydrocarbons” means oil, gas, casing head gas, condensate, distillate, liquid
hydrocarbons, gaseous hydrocarbons, all products refined, separated, settled and dehydrated
therefrom, including, without limitation, kerosene, liquefied petroleum gas, refined lubricating
oils, diesel fuel, drip gasoline, natural gasoline, helium, sulfur and all other minerals.

     “Immaterial Subsidiary” means Ambar Lone Star Fluids Services LLC and any Subsidiary
having total assets (real or personal, tangible or intangible) of less than $100,000.

     “Impacted Lender” means (a) any Lender that is a Defaulting Lender and (b) any Lender
as to which (i) the Borrower, the Administrative Agent has a good faith belief that such Lender has
defaulted in fulfilling its obligations under one or more other syndicated credit facilities or
(ii) an entity that controls such Lender has been deemed insolvent or become subject to a
bankruptcy or other similar proceeding.

     “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:

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          (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) (i) reimbursement obligations of such Person in respect of letters of credit (including
standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar
instruments; and (ii) contingent obligations of such Person in respect of 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 (i) trade accounts payable to a Person in the United States or Canada in the ordinary
course of business and, in each case, not past due for more than 60 days, and (ii) trade accounts
payable to a Person in a country other than the United States or Canada in the ordinary course of
business and, in each case, not past due for more than 120 days); and

          (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;

          (g) Off-Balance Sheet Liabilities;

          (h) obligations in respect of a forward sale of production for which such Person has received
payment in advance other than on ordinary trade terms;

          (i) 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, on a date certain and
not subject to any contingencies, or at the option of the holder of such Equity Interest, valued,
in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary
liquidation preference plus accrued and unpaid dividends; and

          (j) 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 Synthetic Lease Obligation as of any date shall be deemed
to be the amount of Attributable Indebtedness in respect thereof as of such date.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

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

     “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.

     “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 Eurodollar 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, the last Business Day of each March, June,
September and December and the Maturity Date.

     “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the
date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan
and ending on the date one, three or six months thereafter, as selected by the Borrower in its Loan
Notice; provided that:

          (a) 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;

          (b) 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

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

     “Investment” means, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition of capital stock or other
securities of another Person, or (b) a loan, advance or capital contribution to, Guarantee or
assumption of debt of, or purchase or other acquisition of any other debt or equity participation
or interest in, another Person, including any partnership or joint venture interest in such other
Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other
Person. For purposes of covenant compliance, the amount of any Investment shall be the amount
actually invested, without adjustment for subsequent increases or decreases in the value of such
Investment. The term “Investment” does not include (a) investment in cash equivalents or
short-term marketable debt securities; (b) extensions of credit in the nature of accounts
receivable or notes receivable arising from the grant of trade credit in the ordinary course of
business, or (c) investments in direct ownership interests in Oil and Gas Properties (and related
personal property used in the operating, working or development thereof), net revenue interests,
royalty interests, or related to Oil and Gas Agreements, or other similar arrangements in the
ordinary course of the Borrower’s business which are usual and customary in the ordinary course of
the oil and gas exploration and production business. As used in this definition, “Person” does not
include a natural person.

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     “IRS” means the United States Internal Revenue Service.

     “Joint Venture” means any Person (A) in which the Borrower or a Subsidiary invests
cash, or to which the Borrower or a Subsidiary transfers assets (other than in the ordinary course
of business) used or useful in the Borrower’s or such Subsidiary’s business, and the Borrower or
such Subsidiary receives in return ownership interests in such Person, (B) that carries on a trade
or business that is the same or similar to the business carried on by the Borrower and its
Subsidiaries, (C) some portion of the equity interests (excluding director’s qualifying shares or
similar ownership qualifications applying to such Person’s board of directors or similar policy
making group) of which are owned by a Person or Persons other than the Borrower or its
Subsidiaries, and (D) the senior management functions of which are carried out by a group that
includes officers or directors of the Borrower or a Subsidiary; provided, however, that a Joint
Venture shall not include:

          (a) a natural person, or

          (b) a Person having a class of common stock (a) that is registered under the Securities
Exchange Act of 1934, (b) that is publicly traded on a recognized national market, including
electronic markets such as the NASDAQ Stock Market, or (c) for which bid or ask prices are quoted
in the publication known as the pink sheets or similar reporting service for thinly traded
companies.

     “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, and
all applicable administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority.

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

     “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 designate by notice to the Borrower and the Administrative Agent.

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or other security interest
or preferential arrangement in the nature of a security interest of any kind or nature whatsoever
(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” has the meaning specified in Section 2.01.

     “Loan Documents” means this Agreement, each Note, the Fee Letter and the Guaranty.

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     “Loan Notice” means a notice of (a) a Borrowing, (b) a conversion of Loans from one
Type to the other, or (c) a continuation of Eurodollar Rate Loans, pursuant to Section
2.02(a), which, if in writing, shall be substantially in the form of Exhibit A.

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

     “Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities (actual or contingent),
condition (financial or otherwise) of the Borrower and its Subsidiaries, taken as a whole; (b) a
material impairment of the ability of the Loan Parties collectively to perform their payment or
other material obligations under any Loan Document; (c) a material adverse effect upon the
legality, validity, binding effect or enforceability against the Borrower of any Loan Document to
which it is a party, or (d) a material adverse effect upon the legality, validity, binding effect
or enforceability against a Guarantor of any Loan Document to which it is a party if such material
adverse effect constitutes a material adverse effect on the legality, validity, binding effect or
enforceability of the Loan Documents against the Borrower and the Guarantors considered as a whole.

     “Maturity Date” means the day immediately preceding the one year anniversary of the
Closing Date.

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

     “Net Debt Proceeds” means cash proceeds received from the issuance or incurrence by
the Borrower or any Subsidiary of (a) during the period from and including the Closing Date to
September 15, 2010 (or October 15, 2010 upon the Administrative Agent’s receipt of the Commitment
Extension Fee referred to in the Fee Letter), Indebtedness with respect to either (i) promissory
notes issued in a public offering or a Rule 144A or other private placement or (ii) the funded term
loan portion of the Permanent Credit Facility and (b) thereafter, any funded Indebtedness for
borrowed money (other than the Existing Credit Agreement and any purchase money Indebtedness), in
each case, net of underwriting discounts and commissions and out-of-pocket costs and expenses and
disbursements paid or incurred by the Borrower or any of its Subsidiaries in connection therewith.

     “Net Proceeds” means with respect to any Asset Disposition, the sum of all proceeds in
cash, checks or other cash equivalents as and when received by the Person making such Asset
Disposition less: (a) the direct costs relating to such Asset Disposition, (b) sale, use or other
transaction taxes incurred as a result thereof, and (c) amounts required to be applied to repay
principal, interest and prepayment premiums and penalties on Indebtedness (other than the Loans)
secured by a Lien on the property which is the subject of such Asset Disposition.

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

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     “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, 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
provided that such investment is ultimately due for repayment at some date certain, 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) any Synthetic Lease Obligation; (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).

     “Oil and Gas Agreements” means operating agreements, processing agreements, farm-out
and farm-in agreements, development agreements, area of mutual interest agreements, contracts for
the gathering and/or transportation of oil and natural gas, unitization agreements, pooling
arrangements, joint bidding agreements, joint venture agreements, participation agreements, surface
use agreements, service contracts, leases and subleases of Oil and Gas Properties or other similar
agreements which are customary in the oil and gas business, howsoever designated, in each case made
or entered into in the ordinary course of the oil and gas business as conducted by the Borrower and
its Subsidiaries.

     “Oil and Gas Properties” means (a) Hydrocarbon Interests; (b) the Property now or
hereafter pooled or unitized with Hydrocarbon Interests; (c) all presently existing or future
unitization, pooling agreements and declarations of pooled units and the units created thereby
(including, without limitation, all units created under orders, regulations and rules of any
Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d) all
operating agreements, contracts and other agreements which relate to any of the Hydrocarbon
Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or
attributable to such Hydrocarbon Interest; (e) all Hydrocarbons in and under and which may be

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produced and saved or attributable to the Hydrocarbon Interests, the lands covered thereby and
all oil in tanks and all rents, issues, profits, proceeds, products, revenues and other income from
or attributable to the Hydrocarbon Interests; and (f) all tenements, hereditaments, appurtenances
and property in any manner appertaining, belonging, affixed or incidental to the Hydrocarbon
Interests, and any and all property, now owned or hereinafter acquired and situated upon, used,
held for use or useful in connection with the operating, working or development of any of such
Hydrocarbon Interests or property (excluding drilling rigs, automotive equipment or other personal
property which may be on such premises for the purpose of drilling a well or for other similar
temporary uses) and including any and all oil wells, gas wells, injection wells or other wells,
buildings, structures, fuel separators, liquid extraction plants, plant compressors, pumps, pumping
units, field gathering systems, tanks and tank batteries, fixtures, valves, fittings, machinery and
parts, engines, boilers, meters, apparatus, equipment, appliances, tools, implements, cables,
wires, towers, casing, tubing and rods, surface leases, rights-of-way, easements and servitudes
together with all additions, substitutions, replacements, accessions and attachments to any and all
of the foregoing.

     “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 or limited liability company
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, 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, except to
the extent such taxes, charges or similar levies are attributable to a Lender’s failure to comply
with Section 3.01(e).

     “Outstanding Amount” means with respect to Loans on any date, the aggregate
outstanding principal amount thereof after giving effect to any borrowings and prepayments or
repayments of Loans occurring on such date.

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

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “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 Borrower or any ERISA Affiliate or to which the Borrower or any
ERISA Affiliate contributes or has an obligation to contribute, or in the case of

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a multiple employer or other plan described in Section 4064(a) of ERISA, with respect to which
the Borrower or any ERISA Affiliate, may have any liability, contingent or otherwise.

     “Permanent Credit Facility” means a bank credit facility that refinances the
Indebtedness under the Existing Credit Agreement.

     “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 Borrower or, with respect to any such plan that is subject to Section 412
of the Code or Title IV of ERISA, any ERISA Affiliate.

     “Qualified Investment” means expenditures incurred by the Borrower or any Subsidiary
in order to acquire (a) assets of the same type as those subject to such Reinvestment Event; or (b)
equipment, real property, or other fixed or capital assets owned (or to be owned) by and used (or
to be used) in the business of the Borrower and its Subsidiaries.

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

     “Reinvestment Deferred Amount” means with respect to an Asset Disposition, the
aggregate Net Proceeds received by the Borrower or any of its Subsidiaries in connection therewith
that are specified in a Reinvestment Notice as not being initially subject to Section
2.05(a) as a result of the delivery of such Reinvestment Notice.

     “Reinvestment Event” means any Asset Disposition in respect of which the Borrower has
delivered a Reinvestment Notice.

     “Reinvestment Notice” means a written notice executed by the Borrower stating that no
Default or Event of Default has occurred and is continuing and stating that the Borrower and its
Subsidiaries intend and expect to use all or a specified portion of the Net Proceeds of a
Reinvestment Event specified in such notice to make a Qualified Investment.

     “Reinvestment Prepayment Amount” means with respect to any Reinvestment Event, the
Reinvestment Deferred Amount relating thereto less the portion, if any, thereof expended prior to
the relevant Reinvestment Prepayment Date to make a Qualified Investment.

     “Reinvestment Prepayment Date” means, with respect to any Reinvestment Event, the
earlier of (a) the 180th day immediately after the consummation of such Reinvestment Event and (b)
the date on which the Borrower shall have determined not to make a Qualified Investment in respect
of such Reinvestment Event.

     “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.

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     “Request for Credit Extension” means with respect to a Borrowing, conversion or
continuation of Loans, a Loan Notice.

     “Required Lenders” means, as of any date of determination, Lenders having more than
50% of the Aggregate Commitments or, if the commitment of each Lender to make Loans has been
terminated pursuant to Section 8.02, Lenders holding in the aggregate more than 50% of the
Total Outstandings.

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, treasurer or assistant treasurer of a Loan Party.

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

     “Sellers” means Key Energy Pressure Pumping Services, LLC, a Texas limited liability
company, and Key Electric Wireline Services, LLC, a Delaware limited liability company.

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

     “Solvent” means, as to any Person, on the date of any determinations, that on such
date the fair value of the property of such Person, exclusive of property transferred, concealed
or removed with intent to hinder, delay or defraud such entity’s creditors and property that may be
exempted from property of a bankruptcy estate pursuant to Section 522 of the Bankruptcy Code of
1978, as amended, is greater than the total amount of the debts of such Person.

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

     “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 Borrower.

     “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

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Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement,
or any other master agreement (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 values determined in accordance therewith, such termination values, and (b) for any
date prior to the date referenced in clause (a), the amounts determined as the mark-to-market
values 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).

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

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority, including
any interest, additions to tax or penalties applicable thereto.

     “Threshold Amount” means $20,000,000.

     “Total Capital” means, at any time, the sum of (a) Consolidated Funded Indebtedness
and (b) Consolidated Net Worth.

     “Total Outstandings” means the aggregate Outstanding Amount of all Loans.

     “Type” means, with respect to a Loan, its character as a Base Rate Loan or a
Eurodollar Rate Loan.

     “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities
under Section 4001(a)(16) of ERISA as of the most recently completed fiscal year of the Pension
Plan, over the current value of that Pension Plan’s assets as of the most recently completed fiscal
year of the Pension Plan, determined in accordance with the assumptions used for funding the
Pension Plan pursuant to Section 412 of the Code for the applicable plan year.

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

     “Wells Fargo” means Wells Fargo Bank, N.A. and its successors.

     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:

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          (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.

          (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 calculated and 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. Except as otherwise expressly provided herein, all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as in effect from time
to time; provided that, if the Borrower notifies the Administrative Agent that the Borrower
requests an amendment to any provision hereof to eliminate the effect of any change occurring after
the date hereof in GAAP (including but not limited to any Statement of Financial Accounting
Standards) or in the application thereof on the operation of such provision (or if the
Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any
provision hereof for such purpose), regardless of whether any such notice is given before or after
such change in GAAP or in the application thereof, then (a) such provision shall be

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interpreted on the basis of GAAP as in effect and applied immediately before such change shall
have become effective until such notice shall have been withdrawn or such provision amended in
accordance herewith, and (b) if such change in GAAP would affect the computation of any financial
ratio or requirement set forth in this Agreement, then if so requested by the Administrative Agent,
the Borrower shall provide to the Administrative Agent and the Lenders financial statements and
other documents required under this Agreement or as reasonably requested setting forth a
reconciliation between calculations of such ratio or requirement made before and after giving
effect to such change in GAAP.

     1.04 Rounding. Any financial ratios required to be maintained by the Borrower pursuant to
this Agreement shall be calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a rounding-up if there is no
nearest number).

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

     1.06 Responsible Officer. 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.

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

     2.01 Loans. Subject to the terms and conditions set forth herein, each Lender severally
agrees to make a single term loan (each such loan, a “Loan”) to the Borrower on the Closing
Date in an aggregate amount not to exceed the amount of such Lender’s Commitment; provided,
however, that the Total Outstandings shall not exceed the Aggregate Commitments. Principal
repayments made after the Closing Date may not be reborrowed. Loans may be Base Rate Loans or
Eurodollar Rate Loans, as further provided herein.

     2.02 Borrowings, Conversions and Continuations of Loans.

          (a) Each Borrowing, each conversion of Loans from one Type to the other, and each continuation
of Eurodollar Rate Loans shall be made upon the Borrower’s irrevocable notice to the Administrative
Agent, which 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 Eurodollar Rate Loans or of any conversion of
Eurodollar Rate Loans to Base Rate Loans, and (ii) on the requested date of any Borrowing of Base
Rate Loans. Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must
be confirmed promptly by delivery to the Administrative Agent of a written Loan Notice,
appropriately completed and signed by a Responsible Officer of the Borrower. Each Borrowing of,
conversion to or continuation of Eurodollar Rate Loans shall be in a principal amount of $5,000,000
or a whole multiple of $1,000,000 in excess thereof. Each

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Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $500,000 or a
whole multiple of $100,000 in excess thereof. Each Loan Notice (whether telephonic or written)
shall specify (i) whether the Borrower is requesting a Borrowing, a conversion of Loans from one
Type to the other, or a continuation of Eurodollar 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 Loans to be borrowed, converted or continued, (iv) the Type of Loans to be
borrowed or to which existing Loans are to be converted, and (v) if applicable, the duration of the
Interest Period with respect thereto. If the Borrower fails to specify a Type of Loan in a Loan
Notice or if the Borrower fails to give a timely notice requesting a conversion or continuation,
then the applicable Loans shall be made as, or converted to, Base Rate Loans. Any such 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 Eurodollar Rate Loans. If the Borrower requests a Borrowing
of, conversion to, or continuation of Eurodollar Rate Loans in any such Loan Notice, but fails to
specify an Interest Period, it will be deemed to have specified an Interest Period of one month.

          (b) Following receipt of a Loan Notice, the Administrative Agent shall promptly notify, on the
same day that the request is received from the Borrower, each Lender of the amount of its
Applicable Percentage of the applicable Loans, and if no timely notice of a conversion or
continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the
details of any automatic conversion to Base Rate Loans described in the preceding subsection. In
the case of a Borrowing, each Lender shall make the amount of its Applicable Percentage of the Loan
available to the Administrative Agent in immediately available funds at the Administrative Agent’s
Office not later than 2:00 p.m. on the Business Day specified in the applicable Loan Notice. Upon
satisfaction of the applicable conditions set forth in Section 4.01, the Administrative
Agent shall make all funds so received available to the Borrower in like funds as received by the
Administrative Agent either by (i) crediting the account of the Borrower on the books of Wells
Fargo 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 the
Borrower.

          (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted
only on the last day of an Interest Period for such Eurodollar Rate Loan. During the existence of
a Default, no Loans may be requested as, converted to or continued as Eurodollar Rate Loans without
the consent of the Required Lenders.

          (d) The Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of
such interest rate. At any time that Base Rate Loans are outstanding, the Administrative Agent
shall notify the Borrower 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.

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

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     2.03 [Reserved].

     2.04 Voluntary Prepayments. The Borrower may, upon notice to the Administrative Agent, at any
time or from time to time voluntarily prepay Loans in whole or in part without premium or penalty;
provided that (i) such notice must be received by the Administrative Agent not later than 10:00
a.m. (A) three Business Days prior to any date of prepayment of Eurodollar Rate Loans and (B) on
the date of prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate Loans shall be in
a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof; and (iii) any
prepayment of Base Rate 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 (which shall be a Business Day) and amount of
such prepayment, the Type(s) of Loans to be prepaid and shall be substantially in the form of
Exhibit G. 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 Borrower, the 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 Loan shall be accompanied by all accrued interest to the date of prepayment on the
amount prepaid, and, in the case of Eurodollar Rate Loans, any additional amounts required pursuant
to Section 3.05. Each such prepayment shall be applied to the Loans of the Lenders in
accordance with their respective Applicable Percentages.

     2.05 Mandatory Prepayments.

          (a) Asset Dispositions. If the Borrower or any of its Subsidiaries shall at any time
or from time to time make an Asset Disposition then (A) the Borrower shall promptly notify the
Administrative Agent of such Asset Disposition (including the amount of the estimated Net Proceeds
to be received by the Borrower and/or any of its Subsidiaries in respect thereof) and (B) promptly
upon receipt by the Borrower and/or any of its Subsidiaries of the Net Proceeds of such Asset
Disposition (unless the Borrower has delivered a Reinvestment Notice to the Administrative Agent),
the Borrower shall prepay the Loans in an aggregate principal amount equal to 100% of such Net
Proceeds; provided, however, that, on the Reinvestment Prepayment Date in respect
of any Reinvestment Event, the Borrower shall prepay the Loans in an aggregate principal amount
equal to such Reinvestment Prepayment Amount if greater than zero.

          (b) Debt Issuance. Promptly upon the receipt by the Borrower or any of its
Subsidiaries of any Net Debt Proceeds, the Borrower shall prepay Loans in an aggregate principal
amount equal to 100% of such Net Debt Proceeds.

          (c) Equity Issuance. Promptly upon receipt by the Borrower of any Equity Issuance
Proceeds, the Borrower shall prepay Loans in an aggregate principal amount equal to 100% of such
Equity Issuance Proceeds.

          (d) Accrued Interest; Ratable Payments; Application of Payments. Each prepayment
pursuant to this Section 2.05 shall be accompanied by accrued interest on the amount
prepaid to the date of such prepayment and amounts, if any, required to be paid pursuant to
Section 3.05 as a result of such prepayment being made on such date. Each such prepayment

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shall be applied to the Loans in accordance with the Lenders’ respective Applicable
Percentages, until all of the Loans are repaid in full. All prepayments of Loans made pursuant to
Section 2.05 shall be applied to the ratable repayment of the Loans, until all such Loans
are repaid in full.

          (e) Change of Control. Promptly upon the Change of Control of the Borrower, the
Borrower shall prepay the Loans in full.

     2.06 [Reserved].

     2.07 Repayment of Loans. The Borrower shall repay to the Lenders on the Maturity Date the
aggregate principal amount of Loans outstanding on such date.

     2.08 Interest.

          (a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall
bear interest on the outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate; and (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.

          (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, so long as such amount remains unpaid, 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 Event of Default under Section 8.01(f) occurs and is continuing,
then the Borrower 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.

          (iii) If any amount (other than principal of any Loan) payable by the 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 interest rate
per annum at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws.

          (iv) Upon the request of the Required Lenders, so long as any Event of Default is
continuing (except as set forth in clause (ii) above), the Borrower 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.

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

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          (c) Interest on each Loan 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 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. Except as provided in Section 10.13, the Borrower shall pay to Wells Fargo for its
own account fees in the amounts and at the times specified in the Fee Letter. 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).
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
of an interest rate or fee hereunder shall be presumed correct and binding for all purposes, absent
manifest error.

     2.11 Evidence of Debt. 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 Borrower 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 Borrower
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 made through
the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the
Administrative Agent) a Note, which shall evidence such Lender’s Loans in addition to such accounts
or records. Each Lender may attach schedules to its Note and endorse thereon the date, Type (if
applicable), amount and maturity of its Loans and payments with respect thereto.

     2.12 Payments Generally; Administrative Agent’s Clawback.

          (a) General. All payments to be made by the Borrower shall be made without condition
or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent,
for the account of the respective Lenders to which such payment is owed, at the Administrative
Agent’s Office in Dollars and in immediately available funds not later than 1:00 p.m. on the date
specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable
Percentage (or other applicable share as provided herein) of such

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payment in like funds as received by wire transfer to such Lender’s Lending Office. All
payments received by the Administrative Agent after 1:00 p.m. shall 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 the 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
Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share
of such Borrowing, the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with Section 2.02 and may, in reliance upon such
assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has
not in fact made its share of the applicable Borrowing available to the Administrative Agent, then
the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith
on demand such corresponding amount in immediately available funds with interest thereon, for each
day from and including the date such amount is made available to the 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 greater of the Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation and (B) in the case of a payment
to be made by the Borrower, the interest rate applicable to Base Rate Loans. If the 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 the Borrower the amount of such interest
paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to
the Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in
such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower
may have against a Lender that shall have failed to make such payment to the Administrative Agent.

          (ii) Payments by Borrower; Presumptions by Administrative Agent. Unless the
Administrative Agent shall have received notice from the Borrower prior to the date on which
any payment is due to the Administrative Agent for the account of the Lenders that the
Borrower will not make such payment, the Administrative Agent may assume that the Borrower
has made such payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders the amount due. In such event, if the Borrower has
not in fact made such payment, then each of the Lenders severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such Lender in
immediately available 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 greater of the Federal Funds Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation.

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

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          (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 as provided in the foregoing
provisions of this Article II, and such funds are not made available to the 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.

          (d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make
Loans and to make payments pursuant to Section 10.04(c) are several and not joint. The
failure of any Lender to make any Loan 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
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 Loans made by it resulting in such Lender’s receiving payment of a proportion of the aggregate
amount of such Loans 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
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 Loans and other amounts
owing them, provided that:

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

          (b) the provisions of this Section shall not be construed to apply to (x) any payment made by
the 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 Loans to any assignee or participant, other than to the Borrower or any Subsidiary
thereof (as to which the provisions of this Section shall apply).

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

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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 Borrower hereunder or under any other Loan Document shall be made free and clear of and
without reduction or withholding for any Indemnified Taxes or Other Taxes, provided that if the
Borrower shall be required by applicable law to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that after making all
required deductions (including deductions applicable to additional sums payable under this Section)
the Administrative Agent or Lender receives an amount equal to the sum it would have received had
no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower
shall timely pay the full amount deducted to the relevant Governmental Authority in accordance with
applicable law.

          (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of
subsection (a) above, the Borrower shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law, to the extent such Other Taxes are imposed on the
Borrower or any obligation of it hereunder under applicable law.

          (c) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent and each Lender, 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 or such Lender
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 as to the amount of such payment or
liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by
the Administrative Agent on its own behalf or on behalf of a Lender, shall be presumed correct
absent manifest error. However, neither the Administrative Agent nor any Lender shall be entitled
to receive any payment with respect to Indemnified or Other Taxes that are incurred or accrued more
that 270 days prior to the date the Administrative Agent or such Lender gives notice and demand
thereof to the Borrower.

          (d) Evidence of Payments. As soon as reasonably practicable after any payment of
Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the 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. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the 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 Borrower (with a

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copy to the Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent, such properly completed and
executed documentation prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate of withholding. In addition, any Lender, at the time or times
prescribed by law or reasonably requested by the Borrower or the Administrative Agent, shall
deliver such other documentation prescribed by applicable law or reasonably requested by the
Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to
determine whether or not such Lender is subject to backup withholding or information reporting
requirements. Each Lender shall promptly notify the Borrower and the Administrative Agent of any
change in circumstances which would modify or render invalid any claimed exemption or reduction.

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

          (i) duly completed copies of IRS Form W-8BEN claiming the benefits of the portfolio
interest exemption pursuant to subsection (iii) below or eligibility for benefits of an
income tax treaty to which the United States is a party,

          (ii) duly completed copies of IRS 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 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 or (D) that such payments are not effectively connected with such
Foreign Lender’s conduct of a trade or business in the United States, and (y) duly completed
copies of IRS Form W-8BEN, or

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

          (f) Treatment of Certain Refunds. If the Administrative Agent or any Lender
determines in good faith that it has received a refund of any Taxes or Other Taxes as to which it
has been indemnified by the Borrower or with respect to which the Borrower has paid additional
amounts pursuant to this Section, it shall pay to the Borrower an amount equal to such refund (but
only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under
this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of the Administrative Agent or such Lender, as the case may be, and without
interest (other than any interest paid by the relevant Governmental Authority with

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respect to such refund), provided that the Borrower, upon the request of the Administrative
Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus any penalties,
interest or other charges imposed by the relevant Governmental Authority) to the Administrative
Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such
refund to such Governmental Authority, in which case the Administrative Agent or such Lender shall
provide evidence that such refund is due to such Governmental Authority. This subsection shall not
be construed to require the Administrative Agent or any Lender to make available its tax returns
(or any other information relating to its taxes that it deems confidential) to the 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 Eurodollar Rate Loans, or to determine or charge interest rates
based upon the Eurodollar, or any Governmental Authority has imposed material restrictions on the
authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London
interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative
Agent, any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert Base
Rate Loans to Eurodollar Rate Loans shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to such determination no
longer exist. Upon receipt of such notice, the Borrower shall, upon demand from such Lender (with
a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar 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 Eurodollar Rate Loans to such day, or immediately, if
such Lender may not lawfully continue to maintain such Eurodollar Rate Loans. Upon any such
prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or
converted.

     3.03 Inability to Determine Rates. If the Required Lenders determine that for any reason in
connection with any request for a Eurodollar Rate Loan or a conversion to or continuation thereof
that (a) Dollar deposits are not being offered to banks in the London interbank eurodollar market
for the applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and
reasonable means do not exist for determining the Eurodollar for any requested Interest Period with
respect to a proposed Eurodollar Rate Loan, or (c) the Eurodollar for any requested Interest Period
with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to
such Lenders of funding such Loan, the Administrative Agent will promptly so notify the Borrower
and each Lender. Thereafter, the obligation of the Lenders to make or maintain Eurodollar Rate
Loans shall be suspended until the Administrative Agent (upon the instruction of the Required
Lenders) revokes such notice. Upon receipt of such notice, the Borrower may revoke any pending
request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans or, failing
that, will be deemed to have converted such request into a request for a Borrowing of Base Rate
Loans in the amount specified therein.

     3.04 Increased Costs; Reserves on Eurodollar Rate Loans.

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

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          (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 any reserve requirement
reflected in the Eurodollar);

          (ii) subject any Lender to any tax of any kind whatsoever with respect to this
Agreement or any Eurodollar Rate Loan made by it, or change the basis of taxation of
payments to such Lender 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

          (iii) impose on any Lender or the London interbank market any other condition, cost or
expense affecting this Agreement or Eurodollar Rate Loans made by such Lender;

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

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

          (c) Certificates for Reimbursement. A certificate of a Lender setting forth the
amount or amounts necessary to compensate such Lender or its holding company, as the case may be,
as specified in subsection (a) or (b) of this Section and delivered to the Borrower shall be
presumed correct absent manifest error. The Borrower shall pay such Lender 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 to demand
compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of
such Lender’s right to demand such compensation, provided that the Borrower shall not be required
to compensate a Lender pursuant to the foregoing provisions of this Section for any increased costs
incurred or reductions suffered more than six months prior to the date that such Lender notifies
the Borrower of the Change in Law giving rise to such increased costs or reductions and of such
Lender’s intention to claim compensation therefor (except that, if the

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Change in Law giving rise to such increased costs or reductions is retroactive, then the
six-month period referred to above shall be extended to include the period of retroactive effect
thereof).

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

          (a) any continuation, conversion, payment or prepayment 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); or

          (b) any failure by the 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 Borrower; or

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

including any loss of anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained. The Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing.

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

     3.06 Mitigation Obligations. (a) If any Lender requests compensation under
Section 3.04, or the 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 Borrower hereby agrees to pay all reasonable
costs and expenses incurred by any Lender in connection with any such designation or assignment.

          (b) If any Lender requests compensation under Section 3.04, or if the 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 Borrower may replace such Lender in accordance with Section 10.13.

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     3.07 Survival. All of the Borrower’s obligations under this Article III shall survive
termination of the Aggregate 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 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 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 Guaranty;

          (ii) a Note executed by the Borrower in favor of each Lender requesting a Note;

          (iii) such certificates of resolutions or other action, incumbency certificates and/or
other certificates of a secretary or assistant secretary or similar officer 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 its
jurisdiction of incorporation or formation;

          (v) a favorable opinion of Fulbright and Jaworski, L.L.P., counsel to the Loan Parties,
addressed to the Administrative Agent and each Lender, as to the matters set forth in
Exhibit F;

          (vi) a certificate of a Responsible Officer of the Borrower either (A) attaching copies
of all consents, licenses and approvals required in connection with the execution, delivery
and performance by the Borrower and the validity against the Borrower of the Loan Documents
to which it is a party, and such consents, licenses and approvals shall be in full force and
effect, or (B) stating that no such consents, licenses or approvals are so required;

          (vii) a certificate signed by a Responsible Officer of the Borrower certifying (A) that
the representations and warranties of the Loan Parties set forth in the

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Loan Documents are true and correct in all material respects (except to the extent that
such representation and warranty is qualified by materiality or is limited to a specific
date), and (B) no Default or Event of Default has occurred and is continuing or would result
from the initial Borrowing contemplated hereunder or the application of proceeds therefrom;

          (viii) a certificate signed by the chief financial officer of the Borrower certifying
that each of the Loan Parties, in each case after giving effect to the initial Borrowing
contemplated hereunder, the Acquisition and the other transactions contemplated hereby, is
or are Solvent;

          (ix) a certificate signed by the chief financial officer of the Borrower certifying
that immediately after giving pro forma effect to the initial Borrowings and the
Acquisition, the Borrower shall be in compliance with Section 7.10;

          (x) a certificate signed by a Responsible Officer of the Borrower certifying that, to
the Borrower’s knowledge as certified to it by the Sellers, no “Material Adverse Effect” (as
such term is defined in the Acquisition Agreement) has occurred and is continuing since
March 31, 2010; and

          (xi) such other assurances, certificates, documents, consents or opinions as the
Administrative Agent or the Required Lenders reasonably may require.

          (b) There shall not have occurred (i) any bankruptcy of any Loan Party, or (ii) any material
pending or threatened litigation or other proceeding by or against a Loan Party that has a
reasonable likelihood of being adversely determined, and if adversely determined, would reasonably
be expected to materially and adversely affect the ability of the Loan Parties as a whole to repay
when due the Loans contemplated herein.

          (c) The Administrative Agent shall have received (i) copies of all Acquisition Documents,
together with all amendments, supplements, waivers or other modifications thereto, in each case
certified by a Responsible Officer of the Borrower as true, correct and complete and (ii) evidence
of all consents and approvals required pursuant to the terms of the Acquisition Documents,
including the consent or approval of the board of directors or other governing body of the Sellers.
The Acquisition will have been consummated in accordance in all material respects with the terms
and conditions of the Acquisition Documents without any waiver, modification or consent thereunder
that is materially adverse to the Lenders unless approved by the Lenders.

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

          (e) Unless waived by the Administrative Agent, the Borrower 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

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shall not thereafter preclude a final settling of accounts between the Borrower and the
Administrative Agent).

          (f) The Administrative Agent shall have received a Request for Credit Extension in accordance
with the requirements hereof.

          (g) No statute, rule, regulation or other legal requirement shall have been promulgated or
enacted and be in effect that on a permanent basis restrains, enjoins, or prohibits the Lenders
from making such Credit Extension.

          (h) The Administrative Agent and each Lender shall have received all documentation and other
information that the Administrative Agent and each such Lender shall have reasonably requested in
order to comply with its respective obligations under applicable “know your customer” and
anti-money laundering rules and regulations, including the Patriot Act.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to the Administrative Agent and the Lenders that:

     5.01 Existence, Qualification and Power; Compliance with Laws. Each Loan Party (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 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, (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, and (d) is in compliance with all Laws; except in
each case referred to in clause (b)(i), (c) or (d), 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 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 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. Each Loan
Party 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.

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     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.

     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, except as may be limited by bankruptcy, insolvency,
moratorium, fraudulent transfer and fraudulent conveyance laws, and other similar laws and
provisions, and general principles of equity.

     5.05 Financial Statements. The Audited Financial Statements (i) were prepared in accordance
with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly
noted therein; (ii) fairly present the financial condition of the Borrower 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; and (iii) show all material indebtedness and other liabilities, direct or
contingent, of the Borrower and its Subsidiaries as of the date thereof, including liabilities for
taxes, material commitments and Indebtedness.

     5.06 Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to
the knowledge of the Borrower after due and diligent investigation, threatened or contemplated, at
law, in equity, in arbitration or before any Governmental Authority, by or against the Borrower 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) as to which there is a reasonable possibility of an adverse determination, and that,
if determined adversely, could reasonably be expected, either individually or in the aggregate, to
have a Material Adverse Effect.

     5.07 No Default. 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 Borrower and each Subsidiary has good record
and indefeasible 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 Borrower and its Subsidiaries is subject to no Liens, other than Liens
permitted by Section 7.01.

     5.09 Environmental Compliance. The Borrower and its Subsidiaries conduct in the ordinary
course of business a review of the effect of existing Environmental Laws and claims alleging
potential liability or responsibility for violation of any Environmental Law on their respective
businesses, operations and properties, and as a result thereof, the Borrower has

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reasonably concluded that such Environmental Laws and claims could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

     5.10 Insurance. The properties of the Borrower and its Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of the Borrower, 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 Borrower or the
applicable Subsidiary operates.

     5.11 Taxes. The Borrower and its Subsidiaries have filed all Federal, state and other
material tax returns and reports required to be filed, and have paid all Federal, 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. Neither the Borrower nor any of its
Subsidiaries have received any written notice from any Governmental Authority proposing a tax
assessment against the Borrower or any Subsidiary that would, if made, have a Material Adverse
Effect. Neither any Loan Party nor any Subsidiary thereof is party, with any Person other than the
Borrower or a Subsidiary of the Borrower, to any tax sharing agreement; provided that the
allocation of taxes in connection with a business acquisition agreement does not constitute a tax
sharing agreement.

     5.12 ERISA Compliance.

          (a) Except as could not reasonably be expected to have a Material Adverse Effect, each Plan is
in compliance in all material respects with the applicable provisions of ERISA, the Code and other
Federal or state Laws. Each Plan that is intended to qualify under Section 401(a) of the Code has
received a favorable determination letter or opinion letter from the IRS or an application for such
a letter is currently being processed by the IRS with respect thereto and, to the best knowledge of
the Borrower, no event or circumstance has occurred or exists which would prevent, or cause the
loss of, such qualification. The Borrower and each ERISA Affiliate have made all material amounts
of required contributions to each Plan subject to Section 412 of the Code, 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 Borrower, 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.

          (c) (i) No ERISA Event has occurred or is reasonably expected to occur that, when taken
together with each other ERISA Event that has occurred or is reasonably expected to occur, could
reasonably be expected to result in a Material Adverse Effect; (ii) the Unfunded Pension Liability
of all Pension Plans does not exceed the Threshold Amount; and (iii) neither the Borrower nor any
ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of
ERISA.

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     5.13 Subsidiaries; Equity Interests. As of the Closing Date, the Borrower has no Subsidiaries
other than those specifically disclosed in Part (a) of Schedule 5.13, and all of the
outstanding Equity Interests in such Subsidiaries have been validly issued, are fully paid and
nonassessable and are owned by a Loan Party in the amounts specified on Part (a) of
Schedule 5.13 free and clear of all Liens. As of the Closing Date, the Borrower has no
equity investments in any other corporation or entity other than those specifically disclosed in
Part (b) of Schedule 5.13.

     5.14 Margin Regulations; Investment Company Act.

          (a) The Borrower is not engaged and will not 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. Following the application of the proceeds of each Borrowing, not more than 25% of
the value of the assets (either of the Borrower only or of the Borrower and its Subsidiaries on a
consolidated basis) subject to the provisions of Section 7.01 or Section 7.05 or
subject to any restriction contained in any agreement or instrument between the Borrower and any
Lender or any Affiliate of any Lender relating to Indebtedness and within the scope of
Section 8.01(e) will be margin stock.

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

     5.15 Disclosure. The Borrower has disclosed to the Administrative Agent and the Lenders, or
has stated in filings with the Securities and Exchange Commission of the type described in
Section 6.02(d), all agreements, instruments and corporate or other restrictions to which
it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or
in the aggregate, could reasonably be expected to result in a Material Adverse Effect. 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, or read in conjunction
with, other information so furnished) contains any material misstatement of fact or, when read
together with filings with the Securities and Exchange Commission of the type described in
Section 6.02(d), 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 in any material
respect; provided that, with respect to projected financial information, the Borrower represents
only that such information was prepared in good faith based upon assumptions believed to be
reasonable at the time. The Borrower has given all notices required to be delivered pursuant to
Section 6.03.

     5.16 Compliance with Laws. Each of the Borrower and each Subsidiary 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

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individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

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, the Borrower 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 and each Lender, in form and
detail satisfactory to the Administrative Agent and the Required Lenders:

          (a) as soon as available, but in any event within 90 days after the end of each fiscal year of
the Borrower, its Annual Report, the Form 10-K, or its equivalent, of the Borrower, for such fiscal
year that includes a consolidated balance sheet of the Borrower 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 a report and opinion of an independent certified public accountant
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 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

          (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 Borrower, its Quarterly Report on Form 10-Q, or
its equivalent, of the Borrower that includes a consolidated balance sheet of the Borrower 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 Borrower’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, and that includes a certification of
a Responsible Officer of the Borrower in accordance with applicable law and regulations,
certifying that the foregoing fairly presents the financial condition, results of operations,
shareholders’ equity and cash flows of the Borrower and its Subsidiaries in accordance with GAAP,
subject only to normal year-end audit adjustments and the absence of footnotes (provided, however,
that the requirement for certification contained in this paragraph (b) shall be deemed satisfied by
a certification of a Responsible Officer made in conjunction with a Form 10-Q as required by the
Sarbanes-Oxley Act of 2002 as in effect on the Closing Date (or as subsequently amended if such law
as amended requires a certification that is more comprehensive than, or substantially similar to,
the certification required by this paragraph (b)).

     As to any information contained in materials furnished pursuant to Section 6.02, the
Borrower 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 Borrower to furnish

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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 and each Lender, in
form and detail satisfactory to the Administrative Agent and the Required Lenders:

          (a) concurrently with the delivery of the financial statements referred to in
Section 6.01(a), a certificate of its independent certified public accountants certifying
such financial statements and stating that in making the examination necessary therefor no
knowledge was obtained of any Default or, if any such Default shall exist, stating the nature and
status of such event;

          (b) 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 Borrower;

          (c) promptly after any request by the Administrative Agent or any Lender, 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 Borrower by independent accountants in
connection with the accounts or books of the Borrower or any Subsidiary, or any audit of any of
them;

          (d) promptly after the same are available the following (provided, however, that the
requirement to deliver the following may be satisfied by giving notice as provided in the last
paragraph of this Section 6.02): (i) each report on Form 8-K (other than earnings reports)
and effective registration statement filed with the Securities and Exchange Commission, and (ii)
each annual report, proxy, financial statement or other report sent to the stockholders of the
Borrower, to the extent that such items are not otherwise required to be delivered to the
Administrative Agent pursuant hereto;

          (e) promptly after the furnishing thereof, copies of any statement or report other than those
related to ministerial matters furnished to any holder of debt securities of any Loan Party or any
Subsidiary thereof pursuant to the terms of any indenture, loan or credit or similar agreement and
not otherwise required to be furnished to the Lenders pursuant to Section 6.01 or any other
clause of this Section 6.02;

          (f) promptly, and in any event within five Business Days after receipt thereof by any Loan
Party or any Subsidiary thereof, copies of each notice or other correspondence received from the
SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or
possible investigation by such agency regarding financial or other operational results of any Loan
Party or any Subsidiary thereof;

          (g) the items required to be delivered pursuant to Schedule 4.01 within the time
periods therein specified; and

          (h) promptly, such additional information regarding the business, financial or corporate
affairs of the Borrower or any Subsidiary, or compliance with the terms of the Loan

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Documents, as the Administrative Agent or any Lender may from time to time reasonably request.

     The Borrower shall be deemed to have satisfied the requirement to deliver documents pursuant
to Section 6.01(a) or (b) or Section 6.02(d) if such documents shall have
been timely made available on “EDGAR” and/or on the Borrower’s home page on the world wide web (as
of the date of this Agreement located at www.patenergy.com). Notwithstanding anything contained
herein, in every instance the Borrower shall be required to provide to the Administrative Agent a
copy by electronic mail of the Compliance Certificates required by Section 6.02(b) and the
financial statements referred to in Section 6.01(a) and (b). 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 Borrower with any such request for delivery, and each
Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such
documents.

     6.03 Notices. Promptly notify the Administrative Agent and each Lender:

          (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, including (i) breach or non-performance of, or any default under, a Contractual
Obligation of the Borrower or any Subsidiary; (ii) any dispute, litigation, investigation,
proceeding or suspension between the Borrower or any Subsidiary and any Governmental Authority; or
(iii) the commencement of, or any material development in, any litigation or proceeding affecting
the Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws;

          (c) of the occurrence of any ERISA Event; and

          (d) of any material change in accounting policies or financial reporting practices by the
Borrower or any Subsidiary.

     Each notice pursuant to this Section shall be accompanied by a statement of a Responsible
Officer of the Borrower setting forth details of the occurrence referred to therein and stating
what action the Borrower 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 Payment of Obligations. Pay and discharge as the same shall become due and payable, all
its obligations and liabilities, including (a) all tax liabilities, assessments and governmental
charges or levies upon it or its properties or assets, unless the same are being contested in good
faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP
are being maintained by the Borrower or such Subsidiary; (b) all lawful claims which, if unpaid,
would by law become a Lien upon its property, except those that are being contested in good faith
by appropriate proceedings and for which adequate reserves have been established in accordance with
GAAP; and (c) all Indebtedness, as and when due and payable, but subject to any subordination
provisions contained in any instrument or agreement evidencing such Indebtedness.

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     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; (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 so 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 failure to preserve any of which could
reasonably be expected to have a Material Adverse Effect.

     6.06 Maintenance of Properties. (a) Maintain, preserve and protect all of its material
properties and equipment necessary in the operation of its business in accordance with industry
practices; (b) make all necessary repairs thereto and renewals and replacements thereof except
where the failure to do so could not reasonably be expected to have a Material Adverse Effect; and
(c) use the standard of care typical in the industry in the operation and maintenance of its
facilities.

     6.07 Maintenance of Insurance. Maintain with financially sound and reputable insurance
companies not Affiliates of the Borrower, 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 Person.

     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. 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 Borrower or such Subsidiary, as
the case may be.

     6.10 Inspection Rights. Permit representatives and independent contractors of the
Administrative Agent and each Lender 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 such reasonable times during normal business hours and as often as may be
reasonably desired, upon reasonable advance notice to the Borrower; provided, however, that when an
Event of Default exists the Administrative Agent or any Lender (or any of their respective
representatives or independent contractors) may do any of the foregoing at the expense of the
Borrower at any time during normal business hours and without advance notice.

     6.11 Use of Proceeds. Use the proceeds of the Credit Extensions to finance a portion of the
purchase price for the Acquisition and/or to pay a portion of the fees, commissions and expenses
associated with the Acquisition.

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     6.12 Additional Guarantors. Notify the Administrative Agent within 10 days after the date
that any Person becomes a Domestic Subsidiary other than an Immaterial Subsidiary, and within 10
days after the date that any Person becomes a Domestic Subsidiary other than an Immaterial
Subsidiary, cause such Person to (a) become a Guarantor by executing and delivering to the
Administrative Agent a counterpart of the Guaranty or such other document as the Administrative
Agent shall deem appropriate for such purpose, and (b) deliver to the Administrative Agent
documents of the types referred to in clauses (iii) and (iv) of Section 4.01(a) and
favorable opinions of counsel to such Person (which shall cover, among other things, the legality,
validity, binding effect and enforceability of the documentation referred to in clause (a)), all in
form, content and scope 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, the Borrower 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) Liens pursuant to any Loan Document;

          (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, and (iii) the direct or any contingent obligor with
respect thereto is not changed;

          (c) Liens for taxes or unpaid utilities 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, 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 60 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) deposits to secure the performance of bids, trade contracts and leases (other than
Indebtedness), statutory obligations, surety bonds (other than bonds related to judgments or
litigation), performance bonds and other obligations of a like nature incurred in the ordinary
course of business;

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          (g) easements, rights-of-way, 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;

          (h) (i) Liens securing purchase money obligations of the Borrower or of Subsidiaries of the
Borrower, for fixed or capital assets acquired after the Closing Date, provided that (A) such Liens
do not at any time encumber any property other than the property financed by such Indebtedness, (B)
the Indebtedness secured thereby does not exceed the cost or fair market value, whichever is lower,
of the property being acquired on the date of acquisition and (C) such Liens attach to such
property concurrently with or within 90 days after the acquisition thereof, and (ii) Liens securing
any refinancing of such Indebtedness, provided that such Liens do not extend to additional property
and the amount of the Indebtedness is not increased;

          (i) Liens securing judgments for the payment of money not constituting an Event of Default
under Section 8.01(h) or securing appeal or other surety bonds related to such judgments;

          (j) Liens arising in the ordinary course of business under Oil and Gas Agreements to secure
compliance with such agreements, provided that any such Lien referred to in this clause are for
claims which are not delinquent or which are being contested in good faith by appropriate action
and for which adequate reserves have been maintained in accordance with GAAP, and provided,
further, that any such Lien referred to in this clause does not materially impair the use of the
property covered by such Lien for the purposes for which such property is held by the Borrower or
any Subsidiary or materially impair the value of such property subject thereto, and provided,
further, that such Liens are limited to property that is the subject of the relevant Oil and Gas
Agreement and any proceeds thereof; and

          (k) Liens not otherwise permitted by this Section 7.01 if at the time of, and after
giving effect to, the creation or assumption of any such Lien, the aggregate of all obligations of
the Borrower and its Subsidiaries secured by any Liens not otherwise permitted hereby does not
exceed 10% of Consolidated Net Worth of the Borrower and its Subsidiaries.

     7.02 Foreign Subsidiaries and Joint Ventures.

          (a) Make or permit any Domestic Subsidiary to make any Investment in any Foreign Subsidiary or
any Joint Venture unless the book value of all Investments (including such Investment then being
made) in Foreign Subsidiaries and Joint Ventures made on or after the Closing Date does not exceed
an amount equal to 30% of the total book value of all assets of the Borrower and its Subsidiaries
calculated on a pro forma basis taking into account such Investment; or

          (b) Incur any Indebtedness owed by the Borrower to any Foreign Subsidiary or other Subsidiary
that is not a Guarantor unless such Indebtedness is subordinated to the Obligations pursuant to
terms that are substantially the same as the subordination terms applicable to the Guarantors
pursuant to the Guaranty.

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     7.03 Indebtedness of Subsidiaries. Permit any Subsidiary of the Borrower to create, incur,
assume or suffer to exist any Indebtedness, except:

          (a) Indebtedness under the Loan Documents;

          (b) Guarantees in respect of Indebtedness otherwise permitted hereunder of the Borrower;

          (c) Indebtedness owed by any Subsidiary to (i) the Borrower, or (ii) another Subsidiary,
provided that if such Subsidiary to whom such Indebtedness is owed is not a Guarantor, then such
Indebtedness (other than Indebtedness owed by a Foreign Subsidiary to another Foreign Subsidiary)
shall be subordinated to the Obligations pursuant to terms substantially the same as the
subordination terms applicable to the Guarantors pursuant to the Guaranty;

          (d) purchase money Indebtedness permitted by Section 7.01(h); and

          (e) unsecured Indebtedness, provided that (i) both before and after such Indebtedness is
created, incurred or assumed, no Default or Event of Default shall have occurred and be continuing,
and (ii) the aggregate outstanding principal amount of such Indebtedness for all Subsidiaries taken
together shall not exceed at any time an amount equal to 10% of Consolidated Net Worth.

          (f) secured Indebtedness, provided that (i) both before and after such Indebtedness is
created, incurred or assumed, no Default or Event of Default shall have occurred and be continuing,
and (ii) the aggregate outstanding principal amount of such Indebtedness for all Subsidiaries taken
together shall not exceed at any time an amount equal to 5% of Consolidated Net Worth.

     7.04 Fundamental Changes. (A) Wind up, liquidate or dissolve its affairs, or (B) amalgamate
or consolidate with, or merge into, or sell, lease or otherwise dispose of, in one transaction or a
series of transactions, all or substantially all of its assets to, any other Person, or permit any
other Person to amalgamate or consolidate with, or merge into, or sell, lease or otherwise dispose
of all or substantially all of its assets to, it, except that this Section 7.04 shall not
prohibit any of the following transactions, or any agreement to effect the same, provided that no
Default has occurred and is continuing or would result therefrom:

          (a) any amalgamation, consolidation or merger, or sale or other disposition of assets (other
than by lease) involving the Borrower or any of its consolidated Subsidiaries, provided that

          (i) in any such transaction involving the Borrower, the Borrower is the surviving,
resulting or continuing Person in such merger, amalgamation or consolidation, or the
transferee in such sale or other disposition (in any such case, the “Survivor”), or

          (ii) in any such transaction involving any Guarantor, the entity that constituted the
Guarantor immediately prior thereto is the Survivor, or

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          (b) the Guarantor shall have amalgamated or merged with and into the Borrower and the Borrower
shall be the Survivor, or

          (c) if neither the entity that constituted the Guarantor immediately prior thereto nor the
Borrower is the Survivor, the Survivor shall execute and deliver to the Administrative Agent an
instrument, in form and substance satisfactory to it, whereby the Survivor shall assume all rights
and obligations of the Guarantor under the Guaranty to which the Guarantor is a party),

          (i) in any such transaction not involving the Borrower or a Guarantor, a wholly-owned
Subsidiary of the Borrower is the Survivor, and

          (ii) in the case of any transaction specified in the foregoing clauses 7.04(a)(i) or
(ii) or 7.04(c)(i) (A) the Borrower, the Guarantor (except in a case specified in clause
(a)(ii)) and their Subsidiaries shall be in compliance, on a pro forma basis after giving
effect to such transaction, with the covenants contained in this Article VII recomputed as
of the last day of the most recently ended fiscal quarter of the Borrower, the Guarantor and
their Subsidiaries as if such transaction had occurred on the first day of each relevant
period for testing such compliance, (B) with respect to any amalgamation, consolidation or
merger, or sale or other disposition of assets with or to a Person not a consolidated
Subsidiary of the Borrower, the Borrower shall have delivered to the Administrative Agent an
officer’s certificate to such effect, together with all relevant financial information and
calculations demonstrating such compliance and (C) in a transaction of the type described in
clause (a)(ii) above in which a Guarantor is not the Survivor, the Administrative Agent
shall have received an opinion reasonably satisfactory in form, scope and substance to the
Administrative Agent, of counsel reasonably satisfactory to the Administrative Agent,
addressing such matters in connection with such transaction as the Administrative Agent or
such Lender may reasonably request, and such other documentation as the Administrative Agent
may reasonably request;

          (d) any winding up, liquidation or dissolution of any consolidated Subsidiary if in the
reasonable judgment of the board of directors (or other managing group) of such Subsidiary, such
winding up, liquidation or dissolution is in the best interests of the Borrower and its
consolidated Subsidiaries taken as a whole and is not materially disadvantageous to any Lender,
provided, however, with respect to any winding up, liquidation or dissolution of any Guarantor the
owner of all of the capital stock of the Guarantor immediately prior to such event shall be the
Borrower or a wholly-owned Subsidiary of the Borrower;

          (e) transactions and transfers of assets among or between Loan Parties, or among and between
Loan Parties and wholly-owned Subsidiaries or among and between wholly-owned Subsidiaries, provided
that any transaction or transfers described in this clause (e) that involves the Borrower shall be
subject to the requirements of Section 7.04(a)(i) and any transaction or transfer that
involves a Guarantor shall be subject to the requirements of Section 7.04(a)(ii); and

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          (f) dispositions (whether in the form of a sale of assets or by merger) not otherwise
permitted hereunder which are made for fair market value; provided that (i) any merger shall be
subject to the requirements set forth in Section 7.04(a), (ii) the aggregate sales price
from such disposition shall be paid in cash or otherwise on payment terms satisfactory to the
applicable Loan Party or Subsidiary, and (iii) the aggregate book value of all assets of the
Borrower and its consolidated Subsidiaries, taken as a whole, shall not be reduced at any time to
an amount which is less than the Asset Threshold Value. As used in this Section “Asset
Threshold Value” means an amount equal to 80% of the aggregate book value of all assets of the
Borrower and its consolidated Subsidiaries, taken as a whole, on December 31, 2009, as reflected in
the Audited Financial Statements. No disposition (or series of dispositions) shall be permitted
if, following such disposition or series of dispositions, the aggregate book value of all assets of
the Borrower and its consolidated Subsidiaries, taken as a whole, would be less than the Asset
Threshold Value.

     7.05 Hedging Agreements. Enter into any Swap Contracts other than in the ordinary course of
business for the purpose of directly mitigating risks to which the Borrower or its Subsidiaries are
exposed in the conduct of their business and not for purposes of speculation.

     7.06 Change in Nature of Business. (a) Engage in any material line of business substantially
different from those lines of business conducted by the Borrower and its Subsidiaries on the date
hereof or any business substantially related or incidental thereto and (b) permit Ambar Lone Star
Fluids Services LLC to conduct any operations.

     7.07 Transactions with Affiliates. Enter into any material transaction of any kind with any
Affiliate of the Borrower, whether or not in the ordinary course of business, other than on fair
and reasonable terms substantially as favorable to the Borrower or such Subsidiary as would be
obtainable by the Borrower or such Subsidiary at the time in a comparable arm’s length transaction
with a Person other than an Affiliate, except that the foregoing shall not apply to transactions
among the Borrower and one or more of its wholly-owned Subsidiaries, or between or among the
Borrower’s wholly-owned Subsidiaries.

     7.08 Burdensome Agreements. Enter into any Contractual Obligation (other than this Agreement
or any other Loan Document) that limits the ability of any Subsidiary to pay dividends or make
other payments or distributions to the Borrower or any Guarantor or to otherwise transfer property
to the Borrower or any Guarantor, except restrictions that could not reasonably be expected to
impair the Borrower’s ability to repay the Obligations as and when due.

     7.09 Use of Proceeds.

          (a) Use the proceeds of any Credit Extension, whether directly or indirectly 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; or

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          (b) Use the proceeds of any Credit Extension in connection with the acquisition of a voting
interest of five percent or more in any Person if such acquisition is opposed by the board of
directors or management of such Person.

     7.10 Financial Covenants.

          (a) Permit the Debt to Capitalization Ratio, expressed as a percentage, to exceed at any time
(i) 35% or (ii) if a Permanent Credit Facility exists, the lesser of (A) the Debt to Capitalization
Ratio as set forth in such Permanent Credit Facility and (B) 45%.

          (b) Permit the Interest Coverage Ratio as of the last day of a fiscal quarter to be less than
3.00 to 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. The Borrower or any other Loan Party fails to pay (i) when and as
required to be paid herein, any amount of principal of any Loan, or (ii) within three days after
the same becomes due, any interest on any Loan, or any fee due hereunder, 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 Borrower fails to perform or observe any term, covenant
or agreement contained in any of Sections 6.03(a), 6.05(a) or 6.11 or
Article VII; 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 after delivery of written notice
thereof to the Borrower from the Administrative Agent acting on the instructions of any Lender; or

          (d) Representations and Warranties. Any representation, warranty, certification or
statement of fact made or deemed made by or on behalf of the Borrower 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 when made or deemed made; or

          (e) Cross-Default. (i) The Borrower 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 or contained in any
instrument or agreement evidencing, securing or relating thereto,

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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 respect thereof to be demanded;
or (ii) there 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 Borrower
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 Borrower or any Subsidiary is an
Affected Party (as so defined) and, in either event, the Swap Termination Value owed by the
Borrower or such Subsidiary as a result thereof is greater than the Threshold Amount; or

          (f) Insolvency Proceedings, Etc. Any Loan Party or any of its Subsidiaries 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, or similar officer for it or for all or any
material part of its property; or any receiver, trustee, custodian, conservator, liquidator, 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 the Borrower or any of its Subsidiaries
shall take any corporate, partnership or company action in furtherance of the foregoing; or

          (g) Inability to Pay Debts; Attachment. (i) The Borrower or any Subsidiary 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 property of such Person if such property is a material part of the property of
the Borrower and its Subsidiaries taken as a whole and is not released, vacated or fully bonded
within 30 days after its issue or levy; or

          (h) Judgments. There is entered against the Borrower or any Subsidiary (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) the same shall remain undischarged for a period of 20 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 could reasonably be expected to result in liability of the Borrower
under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in

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an aggregate amount in excess of the Threshold Amount, or (ii) the Borrower 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 thereunder 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; 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

     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 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, notice of intent to
accelerate, notice of acceleration, or other notice of any kind, all of which are hereby expressly
waived by the Borrower; and

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

provided, however, that upon the occurrence of an actual or deemed entry of an order for relief
with respect to the Borrower under the Bankruptcy Code of the United States, the obligation of each
Lender to make Loans 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,
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),
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 and interest) payable to the Lenders (including fees, charges and
disbursements of counsel to the respective Lenders and amounts payable under Article III),

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ratably among them in proportion to the amounts described in this clause Second payable to
them;

     Third, to payment of that portion of the Obligations constituting accrued and unpaid interest
on the Loans and other Obligations, ratably among the Lenders 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, ratably among the Lenders in proportion to the respective amounts described in this clause
Fourth held by them; and

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

ARTICLE IX

ADMINISTRATIVE AGENT

     9.01 Appointment and Authority. Each of the Lenders 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 and the Lenders, and neither the 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. The Person serving as the 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 the 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 Borrower 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 herein and in the other Loan Documents. Without
limiting the generality of the foregoing, the Administrative Agent:

          (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing;

          (b) shall not 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

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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) shall not, except as expressly set forth herein and in the other Loan Documents, have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
the Borrower or any of its Affiliates that is communicated to or obtained by the 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
be deemed not to have knowledge of any Default unless and until notice describing such Default is
given to the Administrative Agent by the Borrower or a Lender.

     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 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 that by its terms must be fulfilled
to the satisfaction of a Lender, the Administrative Agent may presume that such condition is
satisfactory to such Lender unless the Administrative Agent shall have received notice to the
contrary from such Lender prior to the making of such Loan. The Administrative Agent may consult
with legal counsel (who may be counsel for the Borrower), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it in accordance with
the advice of any such counsel, accountants or experts.

     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 the Administrative Agent. The Administrative

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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 Administrative Agent.

     9.06 Resignation of Administrative Agent. The Administrative Agent may at any time give
notice of its resignation to the Lenders and the Borrower. Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, in consultation with the Borrower, 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, appoint a successor Administrative Agent meeting the
qualifications set forth above; provided that if the Administrative Agent shall notify the Borrower
and the Lenders that no qualifying Person has accepted such appointment, then such resignation
shall nonetheless become effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder and under the
other Loan Documents (except that in the case of any collateral security held by the Administrative
Agent on behalf of the Lenders 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 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, 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
Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower 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.

     9.07 Non-Reliance on Administrative Agent and Other Lenders. Each Lender acknowledges that it
has, independently and without reliance upon the 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 also
acknowledges that it will, independently and without reliance upon the 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.

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     9.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, none of the
Bookrunners, Arrangers or agents, if any, listed on the cover page hereof shall have any powers,
duties or responsibilities under this Agreement or any of the other Loan Documents, except in its
capacity, as applicable, as the Administrative Agent or a Lender.

     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 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 the 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 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 and the
Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements
and advances of the Lenders and the Administrative Agent and their respective agents and counsel
and all other amounts due the Lenders and the Administrative Agent under Sections 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 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, 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 any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

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

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

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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 Borrower or any other Loan Party therefrom,
shall be effective unless in writing signed by the Required Lenders and the Borrower 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) without the written consent of
each Lender;

          (b) extend or increase the Commitment 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 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
(subject to clause (iv) of the second proviso to this Section 10.01) any fees or other
amounts payable hereunder or under any other Loan Document without the written consent of each
Lender directly affected thereby; provided, however, that only the consent of the Required Lenders
shall be necessary (i) to amend the definition of “Default Rate” or (ii) to amend any
financial covenant hereunder (or any defined term used therein) even if the effect of such
amendment would be to reduce the rate of interest on any Loan or to reduce any fee payable
hereunder;

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

          (f) 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

          (g) release all or substantially all of the Guarantors from the 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 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; and (ii)
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

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amendment, waiver or other modification; and (iii) the Fee Letter may be amended, or rights or
privileges thereunder waived, in a writing executed only by the parties thereto.

     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 Borrower or the Administrative Agent, 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
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 pursuant to Article II if such Lender has
notified the Administrative Agent that it is incapable of receiving notices under such Article by
electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree
to accept notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be limited to particular
notices or communications.

     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.

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          (c) Change of Address, Etc. Each of the Borrower and the Administrative Agent 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 Borrower and the
Administrative Agent.

          (d) Reliance by Administrative Agent and Lenders. The Administrative Agent and the
Lenders shall be entitled to rely and act upon any notices (including telephonic Loan Notices)
purportedly given by or on behalf of the 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 Borrower shall indemnify the Administrative Agent, 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 the 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 Borrower shall pay (i) all reasonable out of pocket
expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees,
charges and disbursements of counsel for the Administrative 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), and (ii) all out of pocket expenses incurred
by the Administrative Agent or any Lender (including the fees, charges and disbursements of any
counsel for the Administrative Agent or any Lender), 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, including all
such out of pocket expenses incurred during any workout, restructuring or negotiations in respect
of such Loans.

          (b) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent (and any sub-agent thereof), each Lender, 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 expenses (including the
fees, charges and disbursements of any counsel for any Indemnitee), incurred by

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any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any
other Loan Party arising out of, in connection with, or as a result of (i) the syndication of the
credit facilities provided for herein, the preparation, negotiation 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 or
the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or the use or
proposed use of the proceeds therefrom, (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by the Borrower or any of its
Subsidiaries, or any Environmental Liability related in any way to the 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 Borrower 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 are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the gross negligence or willful misconduct
of, or a breach of a Loan Document in any material respect by such Indemnitee.

          (c) Reimbursement by Lenders. To the extent that the Borrower for any reason fails to
indefeasibly pay 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) or any Related Party of any of the
foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent)
or such Related Party, as the case may be, such Lender’s Applicable Percentage (determined as of
the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the Administrative Agent
(or any such sub-agent) in its capacity as such, or against any Related Party of any of the
foregoing acting for the Administrative Agent (or any such sub-agent) 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 party hereto shall assert, and each party hereto 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 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.

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          (f) Survival. The agreements in this Section shall survive the resignation of the
Administrative Agent, the termination of the Aggregate 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 the Borrower is
made to the Administrative Agent or any Lender, or the Administrative Agent 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 the Administrative Agent or such 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 severally agrees to pay to the Administrative Agent upon demand its applicable share
(without duplication) of any amount so recovered from or repaid by the 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 Federal Funds Rate from time to time in effect. The obligations of the Lenders 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
assigns permitted hereby, except that the Borrower may not 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 each of the Administrative
Agent 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, upon obtaining written consent of the
Borrower, such consent not to be unreasonably conditioned, withheld or delayed, 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 and the 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

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of an assignment to
a Lender or an Affiliate of 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 $5,000,000
unless each of the Administrative Agent and, so long as no Event of Default has occurred and
is continuing, the Borrower otherwise consents (each such consent not to be unreasonably
withheld or delayed);

          (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;

          (iii) any assignment of a Commitment must be approved by the Administrative Agent
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

          (iv) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500
(unless the Eligible Assignee is an Affiliate of a Lender, in which case such fee shall not
apply), and the Eligible Assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire.

     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, the 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 Borrower, 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 of, and principal amounts of the Loans owing to, each Lender pursuant
to the terms hereof from time to time (the “Register”). The entries in the Register shall
be presumed correct, and the Borrower, the Administrative Agent and the Lenders

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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 the Borrower 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 wishing to consult with other
Lenders in connection therewith 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 notice to,
the Borrower or the Administrative Agent, sell participations to any Person (other than a natural
person or the Borrower or any of the Borrower’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 and/or the Loans owing to it); provided
that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrower, the Administrative Agent and the Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and obligations under this
Agreement.

     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. Subject to subsection (e) of this Section,
the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and
had acquired its interest by assignment pursuant to subsection (b) of this Section. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section 10.08
as though it were a Lender, provided such Participant agrees to be subject to Section 2.13
as though it were a Lender.

          (e) Limitations 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 Borrower’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 Borrower is notified of the participation sold to
such Participant and such Participant agrees, for the benefit of the Borrower, 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, 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.

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          (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 Borrower (an “SPC”) the option to provide all or any part of
any 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 fund any Loan, and
(ii) if an SPC elects not to exercise such option or otherwise fails to make all or any part of
such Loan, the Granting Lender shall be obligated to make such 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 Borrower 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 Loan by
an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if,
such 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 Borrower and the Administrative Agent and without paying any processing fee
therefor, assign all or any portion of its right to receive payment with respect to any Loan to the
Granting Lender and (ii) disclose on a confidential basis any non-public information relating to
its funding of Loans to any rating agency, commercial paper dealer or provider of any surety or
Guarantee or credit or liquidity enhancement to such SPC.

     10.07 Treatment of Certain Information; Confidentiality.

          (a) Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of
the Information (as defined below), except that Information may be disclosed (i) 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), (ii) to the extent requested by any regulatory authority

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purporting to have jurisdiction over it (including any self-regulatory authority, such as the National
Association of Insurance Commissioners), (iii) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (iv) to any other party hereto, (v) 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, (vi) subject to an agreement containing provisions substantially
the same as those of this Section, to (A) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this Agreement or (B) any
actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating
to the Borrower and its obligations, (vii) with the consent of the Borrower or (viii) 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 the Administrative Agent, any Lender or any of their respective
Affiliates on a nonconfidential basis from a source other than the Borrower.

     For purposes of this Section 10.07(a), “Information” means all information
received from the Borrower or any Subsidiary relating to the Borrower or any Subsidiary or any of
their respective businesses, other than any such information that is available to the
Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower
or any Subsidiary, provided that, in the case of information received from the Borrower or any
Subsidiary after the date hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

          (b) The Borrower agrees that the Fee Letter and any commitment letter executed in connection
herewith are confidential, and agrees not to disclose any information contained in any such letter
except upon the terms therein set forth.

     10.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each
Lender 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 or any such Affiliate
to or for the credit or the account of the Borrower or any other Loan Party against any and all of
the obligations of the Borrower or such Loan Party now or hereafter existing under this Agreement
or any other Loan Document to such Lender, irrespective of whether or not such Lender shall have
made any demand under this Agreement or any other Loan Document and although such obligations of
the Borrower or such Loan Party may be contingent or unmatured or are owed to a branch or office of
such Lender different from the branch or office holding such deposit or obligated on such
indebtedness. The rights of each Lender and their respective Affiliates under this Section are in
addition to other rights and remedies (including other rights of setoff) that such Lender or their
respective Affiliates may have. Each Lender agrees to notify the Borrower 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.

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     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 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 Borrower. In determining whether the interest contracted for,
charged, or received by the Administrative Agent or a 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.

     To the extent that the interest rate laws of the State of Texas are applicable to the Loans
for purposes of determining the “maximum rate” or the “maximum amount,” then those terms mean the
“weekly ceiling” from time to time in effect under Texas Finance Code § 303.001, as limited by
Texas Finance Code § 303.009, and, to the extent that this Agreement is deemed an open end account
as such term is defined in Texas Finance Code Section 301.002(a)(14), the Lenders retain the right
to modify the interest rate in accordance with applicable law. The parties agree that Texas
Finance Code, Chapter 346, which regulates certain revolving loan accounts and revolving triparty
accounts, shall not apply to any revolving loan accounts created under this Agreement or the Notes
or maintained in connection therewith.

     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.

     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
and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or
on their behalf and notwithstanding that the Administrative Agent 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.

     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

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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 Impacted Lenders. (a) If any Lender requests compensation under Section 3.04, or if the
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 an Impacted Lender, then
(y) the Borrower may, upon notice to such Lender and the Administrative Agent, and (z) in the case
of an Impacted Lender, the Administrative Agent may, upon notice to such Lender and the Borrower,
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:

          (i) other than an assignment required by the Administrative Agent, the Borrower shall
have paid to the Administrative Agent the assignment fee specified in Section 10.06(b);

          (ii) such Lender shall have received payment of an amount equal to 100% of the
outstanding principal of its Loans, 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 Borrower (in the case of all other amounts);

          (iii) 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

          (iv) 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 Borrower or the Administrative Agent to require such assignment and delegation cease to
apply. In the event that the Administrative Agent, the Borrower, and the other Lenders each
agree that an Impacted Lender has adequately remedied all matters that caused such Lender to
be an Impacted Lender and the Impacted Lender has not been removed or replaced, then such
Lender shall purchase at par such of the Loans of the other Lenders as the Administrative
shall determine may be necessary in order for such Lender to hold such Loans in accordance
with its Commitment hereunder.

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          (b) If a Lender is an Impacted Lender and upon the prior written consent of the Administrative
Agent, and the other Lenders (in each case which consent shall not be unreasonably withheld,
conditioned or delayed), then the Borrower shall have the right to remove such Impacted Lender as a
party to this Agreement, and the Borrower may, upon notice to such Impacted Lender and the
Administrative Agent remove such Impacted Lender by terminating such Impacted Lender’s Commitment.
The Borrower shall (i) pay in full all principal, interest, fees and other amounts owing to such
Impacted Lender through the date of termination, and (ii) release such Impacted Lender from its
obligations under the Loan Documents. The Administrative Agent shall distribute an amended
Schedule 2.01, which shall be deemed incorporated into this Agreement, to reflect the
removal of the Impacted Lender and termination of its respective Commitment. The removal of an
Impacted Lender and the termination of such Lender’s Commitment shall not increase or decrease any
other Lender’s Commitment which shall continue in effect notwithstanding such removal of the
Impacted Lender.

          (c) Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes an
Impacted Lender, then the following provisions shall apply for so long as such Lender is an
Impacted Lender: the Commitment of such Impacted Lender shall not be included in determining
whether all Lenders or the Required Lenders have taken or may take any action hereunder (including
any consent to any amendment or waiver pursuant to Section 10.01 hereof), provided that any waiver,
amendment or modification requiring the consent of all Lenders or each affected Lender which
affects such Impacted Lender shall require the consent of such Impacted Lender.

     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; PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER
SHALL RETAIN ALL RIGHTS ARISING UNDER APPLICABLE FEDERAL LAW.

          (b) SUBMISSION TO JURISDICTION. THE BORROWER AND EACH OTHER LOAN PARTY 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 TEXAS 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 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

-67-

 

DOCUMENT SHALL AFFECT ANY RIGHT
THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ANY OTHER LOAN PARTY
OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

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

-68-

 

     10.17 ENTIRE AGREEMENT. THIS WRITTEN 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.

-69-

 

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

	 	 	 	 	 
	 	PATTERSON-UTI ENERGY, INC.,

a Delaware corporation, as Borrower

 	 
	 	By:  	/s/
John E. Vollmer 	 
	 	 	Name:  	John E. Vollmer 	 
	 	 	Title:  	Senior Vice President — Corporate
Development, 
Chief Financial Officer and
Treasurer 	 
	 

Signature Page to Credit Agreement

(Patterson – UTI Energy, Inc.)

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.,

as Administrative Agent and a Lender

 	 
	 	By:  	/s/ Brad Ellis 	 
	 	 	Name:  Brad Ellis	 
	 	 	Title:  Vice President	 
	 

Signature Page to Credit Agreement

(Patterson – UTI Energy, Inc.)

 

 

SCHEDULE 2.01

COMMITMENTS

AND APPLICABLE PERCENTAGES

	 	 	 	 	 	 	 	 	 
	Lender        	 	Commitment	 	 	Applicable Percentage	 
	 
	Wells Fargo Bank, N.A.
	 	$	250,000,000	 	 	 	100	%
	 
	Total
	 	$	250,000,000	 	 	 	100.00000	%

Schedule 2.01

 

SCHEDULE 5.13

SUBSIDIARIES AND OTHER EQUITY INVESTMENTS

Part (a).  Subsidiaries

	 	 	 	 	 	 	 
	 	 	 	 	 	 	State of
	 	 	Percent Owned	 	Incorporation
	Name	 	by Borrower	 	or Organization
	Ambar Lone Star Fluids Services LLC

	 	 	100	%	 	Texas
	Patterson Petroleum LLC

	 	 	100	%	 	Texas
	Patterson-UTI Drilling Canada Limited

	 	 	100	%	 	Nova Scotia
	Patterson-UTI Drilling Company LLC

	 	 	100	%	 	Texas
	Patterson-UTI Drilling International, Inc.

	 	 	100	%	 	Delaware
	Patterson-UTI Management Services, LLC

	 	 	100	%	 	Delaware
	Portofino Acquisition Company

	 	 	100	%	 	Delaware
	Universal Well Services, Inc.

	 	 	100	%	 	Delaware

Part (b) Equity Investments in Other Entities

	 	 	 	 	 
	 	 	Number of Interests	 	 
	Entity	 	Held	 	Description of Interests
	Arrow Construction, Inc.
	 	5	 	Shares of Common Stock
	ECOMM Security Inc.
	 	93,478	 	Shares of Preferred Series A
	EPL Acquisition Corp.
	 	28,820	 	Shares of Common Stock
	Essential Security Software, Inc.
	 	100,000	 	Shares of Common Stock
	Futurelink Corp.
	 	2,272	 	Shares of Common Stock
	Giant Studios Inc.
	 	6,667	 	Shares of Preferred Convertible Series A
	GOIP Global, Inc.
	 	87	 	Shares of Common Stock
	Loral Space & Communications LTD
	 	2,400	 	Shares of Preferred Convertible Series C
	Miscor Group Ltd.
	 	29,000	 	Shares of Common Stock
	NYPPE Holdings LLC
	 	72,000	 	Shares of Preferred Class A
	RAK Partners II Qualified
Purchaser Fund, L.P.
	 	N/A	 	$100,000 limited partnership interest
	Scorpion Capital Partners, L.P.
	 	N/A	 	$250,000 limited partnership interest
	Streamcenter Inc.
	 	10,000	 	Shares of Series B Redeemable Convertible Preferred
	Walker Financial Corp.
	 	6,774,800	 	Shares of Common Stock
	Mediavest, Inc.
	 	167	 	Shares of Common Stock
	Network International, Inc.
	 	125,000	 	Shares of Common Stock

Schedule 5.13

 

SCHEDULE 7.01

Certain Existing Liens

	 	 	 	 	 	 	 	 	 	 	 
	Filing Number	 	Date Filed	 	Debtor(s)	 	Secured Party	 	Type of Filing	 	Description of Collateral
	07-0025091296

	 	7/25/2007
	 	Patterson-UTI Energy, Inc. and Patterson-UTI Drilling Company LLC (as assumed name)
	 	Lubbock National Bank

Lubbock, TX
	 	Financing Statement
	 	WorkCentre copier leased by DivLend Equipment Leasing L.L.C.
	 
	 	 	 	 	 	 	 	 	 	 
	83270631

	 	7/3/2008
	 	Universal Well Services, Inc.
	 	Cisco Systems Capital Corporation

Wayne, PA
	 	Financing Statement
	 	Various Cisco IT, server and internet components
	 
	 	 	 	 	 	 	 	 	 	 
	82887543

	 	8/25/2008
	 	Patterson-UTI Energy, Inc.
	 	Xerox Corporation

Lewisville, TX
	 	Financing Statement
	 	Five Xerox copiers
	 
	 	 	 	 	 	 	 	 	 	 
	09-0005992054

	 	3/3/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0006011198

	 	3/3/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0006012220

	 	3/3/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0010920788

	 	4/17/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0010922720

	 	4/17/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0010922942

	 	4/17/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0011302137

	 	4/21/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto

Schedule 7.01

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Filing Number	 	Date Filed	 	Debtor(s)	 	Secured Party	 	Type of Filing	 	Description of Collateral
	09-0011304624

	 	4/21/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0011306222

	 	4/21/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0012305212

	 	4/30/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0012307365

	 	4/30/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0012307587

	 	4/30/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0016579805

	 	6/11/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0016581292

	 	6/11/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0016582435

	 	6/11/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0016898536

	 	6/15/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-006900055

	 	6/15/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0016901632

	 	6/15/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto

Schedule 7.01

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Filing Number	 	Date Filed	 	Debtor(s)	 	Secured Party	 	Type of Filing	 	Description of Collateral
	09-0016904140

	 	6/15/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0016906526

	 	6/15/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0016907214

	 	6/15/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0018116157

	 	6/26/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0018116935

	 	6/26/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0018123549

	 	6/26/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0018130597

	 	6/26/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0018130931

	 	6/26/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0018131629

	 	6/26/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0020806015

	 	7/23/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0020828746

	 	7/23/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto

Schedule 7.01

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Filing Number	 	Date Filed	 	Debtor(s)	 	Secured Party	 	Type of Filing	 	Description of Collateral
	09-0020829434

	 	7/23/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0021224080

	 	7/28/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0021226800

	 	7/28/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0021229752

	 	7/28/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	09-0025750967

	 	9/14/2009
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One Caterpillar Model 3512 engine complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	93988604

	 	12/14/2009
	 	Universal Well Services, Inc.
	 	Kemper Valve & Fittings Corp.
Wauconda, IL
	 	Financing Statement
	 	All goods manufactured by Kemper Valve & Fittings Corp. and delivered to or in possession of Universal Well Services, Inc., including, without limitation certain valves, unions and fittings.
	 
	 	 	 	 	 	 	 	 	 	 
	10-00004508028

	 	2/16/2010
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	Three Caterpillar Model 3512 engines complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	10-00004511214

	 	2/16/2010
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	Three Caterpillar Model 3512 engines complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	10-0009968841

	 	4/8/2010
	 	Patterson-UTI Drilling Company LLC
	 	Associated Supply Company, Inc.
Lubbock, TX
	 	Financing Statement
	 	One 2008 Model Link Belt 30 Ton Rough Terrain Crane and one 2003 Model Link Belt 50 Ton Rough Terrain Crane

Schedule 7.01

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Filing Number	 	Date Filed	 	Debtor(s)	 	Secured Party	 	Type of Filing	 	Description of Collateral
	10-0014553342

	 	5/20/210
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	Three Caterpillar Model 3512 engines complete with all substitutions, replacements, additions, attachments and/or accessories thereto
	 
	 	 	 	 	 	 	 	 	 	 
	10-0017752811

	 	6/21/2010
	 	Patterson-UTI Drilling Company LLC
	 	Holt Cat

San Antonio, TX
	 	Financing Statement
	 	One 10 diesel package genset model with all substitutions, replacements, additions, attachments and/or accessories thereto

Schedule 7.01

 

 

SCHEDULE 10.02

ADDRESSES FOR NOTICES TO COMPANY, GUARANTORS

AND ADMINISTRATIVE AGENT

BORROWER

Patterson-UTI Energy, Inc.

450 Gears Road, Suite 500

Houston, Texas 77067

Attention: Chief Financial Officer

Telephone: (281) 765-7100

Facsimile: (281) 765-7175

GUARANTORS

Patterson Petroleum LLC

c/o Patterson-UTI Energy, Inc.

450 Gears Road, Suite 500

Houston, Texas 77067

Attention: Chief Financial Officer

Telephone: (281) 765-7100

Facsimile: (281) 765-7175

Patterson-UTI Drilling Company LLC

c/o Patterson-UTI Energy, Inc.

450 Gears Road, Suite 500

Houston, Texas 77067

Attention: Chief Financial Officer

Telephone: (281) 765-7100

Facsimile: (281) 765-7175

Patterson-UTI Drilling International, Inc.

c/o Patterson-UTI Energy, Inc.

450 Gears Road, Suite 500

Houston, Texas 77067

Attention: Chief Financial Officer

Telephone: (281) 765-7100

Facsimile: (281) 765-7175

Patterson-UTI Management Services, LLC

c/o Patterson-UTI Energy, Inc.

450 Gears Road, Suite 500

Houston, Texas 77067

Attention: Chief Financial Officer

Telephone: (281) 765-7100

Facsimile: (281) 765-7175

Schedule 10.02

 

 

Universal Well Services, Inc.

c/o Patterson-UTI Energy, Inc.

450 Gears Road, Suite 500

Houston, Texas 77067

Attention: Chief Financial Officer

Telephone: (281) 765-7100

Facsimile: (281) 765-7175

WELLS FARGO BANK, N.A., as Administrative Agent

Address for Notices:

Wells Fargo Bank, N.A.

1740 Broadway, MAC C7300-034

Denver, CO 80209

Attention: Agency Syndication

Telephone: (303) 863-5378

Facsimile: (303) 863-5533

Email:

With a copy to:

Wells Fargo Bank, N.A.

1000 Louisiana, 9th Floor

MAC T5002-090

Houston, Texas 77002

Attention: Brad Ellis, Vice President

Telephone: (713) 319-1985

Facsimile: (713) 739-1087

Email:

Administrative Agent’s Payment office:

Wells Fargo Bank, N.A.

ABA No.: 121000248

Acct. No.: 0296950720

Ref: Patterson-UTI Energy, Inc.

Wells Fargo Bank, N.A.

1740 Broadway, MAC C7300-034

Denver, CO 80209

Attention: Agency Syndication

Telephone: (303) 863-5378

Facsimile: (303) 863-5533

Email:

     Schedule 10.02

 

 

EXHIBIT A

FORM OF LOAN NOTICE

Date:
                               ,              

To: Wells Fargo Bank, N.A., as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Credit Agreement, dated as of July 2, 2010 (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
Patterson-UTI Energy, Inc., a Delaware corporation (the “Borrower”), the Lenders from time
to time party thereto, and Wells Fargo Bank, N.A., as Administrative Agent.

     The undersigned hereby requests (select one):

     o a Borrowing o a conversion of Loans o a continuation of Eurodollar Rate Loans

	 	1.	 	On                                               
                                  
(a Business Day).
	 
	 	2.	 	In the amount of $                                         .
	 
	 	3.	 	Comprised of                                         .

                      
                [Type of Loan requested]

	 	4.	 	For Eurodollar Rate Loans: with an Interest Period of                      months.

     The Borrowing, if any, requested herein complies with the proviso to the first sentence of
Section 2.01 of the Agreement.

	 	 	 	 	 
	 	PATTERSON-UTI ENERGY, INC.,

a Delaware corporation, as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit A

 

 

EXHIBIT B

FORM OF NOTE

                                        , 2010

     FOR VALUE RECEIVED, the undersigned (the “Borrower”) hereby promises to pay to
                                         or permitted and 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 Credit Agreement dated as
of July 2, 2010 (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 the Borrower, the Lenders from time to time party thereto, and Wells Fargo Bank,
N.A., as Administrative 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. All payments of principal and interest shall be made to the
Administrative Agent for the account of the Lender in Dollars in immediately available funds at the
Administrative Agent’s Office. 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 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 and by the Administrative Agent in the ordinary course
of business. The Lender may also attach schedules to this Note and endorse thereon the date, Type,
amount 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, notice of intent to accelerate, notice of acceleration,
demand, dishonor and non-payment of this Note.

     The terms of Section 10.09 of the Credit Agreement are incorporated herein as fully as
if set forth herein.

Exhibit B

 

 

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK; PROVIDED THAT EACH OF THE ADMINISTRATIVE AGENT AND THE LENDER SHALL RETAIN ALL RIGHTS ARISING
UNDER APPLICABLE FEDERAL LAW.

     THIS NOTE 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.

	 	 	 	 	 
	 	PATTERSON-UTI ENERGY, INC.,

a Delaware corporation, as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit B

 

 

Loans and Payments with respect thereto

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Amount of Principal	 	Outstanding	 	 
	 	 	 	 	 	 	End of Interest	 	or Interest Paid	 	Principal Balance	 	 
	Date	 	Type of Loan Made	 	Amount of Loan Made	 	Period	 	This Date	 	This Date	 	Notation Made By
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

     Exhibit B

 

 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date:                  
                       

To: Wells Fargo Bank, N.A., as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Credit Agreement dated as of July 2, 2010 (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
Patterson-UTI Energy, Inc., a Delaware corporation (the “Borrower”), the Lenders from time
to time party thereto, and Wells Fargo Bank, N.A., as Administrative Agent.

     The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                                        
                     of the Borrower, and that, as such, he/she is
authorized to execute and deliver this Certificate to the Administrative Agent on the behalf of the
Borrower, and that:

[Use following paragraph 1 for fiscal year-end financial statements]

     1. [Attached hereto are] or [The Borrower has submitted or is submitting on this date pursuant
to Section 6.01(a) of the Agreement the following:] the year-end audited financial statements
required by Section 6.01(a) of the Agreement for the fiscal year of the Borrower ended as of the
above date and the report and opinion of an independent certified public accountant required by
such section.

[Use following paragraph 1 for fiscal quarter-end financial statements]

     1. [Attached hereto are] or [The Borrower has submitted or is submitting on this date pursuant
to Section 6.01(b) of the Agreement the following:] the unaudited financial statements required by
Section 6.01(b) of the Agreement for the fiscal quarter of the Borrower ended as of the above date.
Such financial statements fairly present the financial condition, results of operations,
shareholders’ equity and cash flows of the Borrower 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.

     2. 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 detailed review of the transactions and
condition (financial or otherwise) of the Borrower during the accounting period covered by the
attached financial statements.

Exhibit C

 

 

     3. A review of the activities of the Borrower during such fiscal period has been made under
the supervision of the undersigned with a view to determining whether during such fiscal period the
Borrower performed and observed all its Obligations under the Loan Documents, and

[select one:]

[to the best knowledge of the undersigned during such fiscal period, the Borrower performed and
observed each covenant and condition of the Loan Documents applicable to it.]

—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:]

     4. The representations and warranties of the Borrower contained in Article V of the Agreement,
and any representations and warranties of any Loan Party that are contained 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, [except as follows:                     ].

     5. The financial covenant analyses and information set forth on Schedule 1 attached hereto are
true and accurate on and as of the date of this Certificate.

     6. Each Domestic Subsidiary (excluding Immaterial Subsidiaries) existing as of the date of
this Certificate has executed and delivered to the Administrative Agent a Guaranty (or such other
document as the Administrative Agent has requested to cause such Domestic Subsidiary to become a
Guarantor), and such other documents as are required by Section 6.12 of the Agreement.

Exhibit C

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of                                         .

	 	 	 	 	 
	 	PATTERSON-UTI ENERGY, INC.,

a Delaware corporation, as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit C

 

 

For the Quarter/Year ended      
                   
                
(“Statement Date”)

SCHEDULE 1

to the Compliance Certificate

($ in 000’s)

I. Section 7.10(a) —Debt to Capitalization Ratio.

	 	 	 	 	 

	A. Consolidated Funded Indebtedness:
	 	 	 	 
	1. Obligations for borrowed money:
	 	$	 	 
	 
	 	 	 
	2. Reimbursement obligations arising under letters of credit,
bankers’ acceptances, bank guaranties, surety bonds, and similar
instruments:
	 	$	 	 
	 
	 	 	 
	3. Obligations to pay deferred purchase price of property or
services (other than trade accounts payable to a Person (i) in the
United States or Canada, if not past due for more than 60 days or
(ii) in any other country, if not past due for more than 120 days):
	 	$	 	 
	 
	 	 	 
	4. Indebtedness secured by a Lien on property owned or being
purchased by the Borrower or its Subsidiaries:
	 	$	 	 
	 
	 	 	 
	5. Capital leases:
	 	$	 	 
	 
	 	 	 
	6. Obligations in respect of any forward sale of production for which
payment is received in advance, other than on ordinary trade terms:
	 	$	 	 
	 
	 	 	 
	7. Obligations to purchase, redeem, or otherwise make any payment in
respect of any Equity Interest, on a date certain and not subject to
any contingencies, or at the option of the holder of such Equity
Interest:
	 	$	 	 
	 
	 	 	 
	8. Guaranty obligations in respect of the foregoing:
	 	$	 	 
	 
	 	 	 
	9. Consolidated Funded Indebtedness (the sum of I.A.1 through I.A.8):
	 	$
	 
	 	 	 
	B. Total Capital
	 	 	 	 
	1. Consolidated Funded Indebtedness (I.A.9):
	 	$	 	 
	 
	 	 	 
	2. Consolidated Net Worth:
	 	$	 	 
	 
	 	 	 
	3. Total Capital (I.B.1 + I.B.2):
	 	$	 	 
	 
	 	 	 
	C. Debt to Capitalization Ratio ((I.A.9 ÷ I.B.3) x 100):
	 	 	 	%
	 
	 	 	 

Schedule 1 to Exhibit C

 

 

	 	 	 	 	 

	Maximum allowed:
	 	 	 	 
	At any time before the existence of the Permanent Credit Facility:
	 	 	35	%
	After a Permanent Credit Facility exists, the lesser of (i) the Debt
to Capitalization Ratio as set forth in such Permanent Credit
Facility and (ii) 45%:
	 	 	[45]	%

II. Section 7.10(b) — Interest Coverage Ratio.

	 	 	 	 	 

	A. Consolidated EBITDA for four consecutive fiscal quarters ending on
above date (“Subject Period”):
	 	 	 	 
	1. Consolidated Net Income for Subject Period:
	 	$	 	 
	 
	 	 	 
	2. Consolidated Interest Charges for Subject Period:
	 	$	 	 
	 
	 	 	 
	3. Income taxes for Subject Period (including state franchise taxes
based on income or similar taxes based on income):
	 	$	 	 
	 
	 	 	 
	4. Depreciation expenses for Subject Period:
	 	$	 	 
	 
	 	 	 
	5. Depletion expenses for Subject Period:
	 	$	 	 
	 
	 	 	 
	6. Amortization expenses for Subject Period:
	 	$	 	 
	 
	 	 	 
	7. Non-cash reductions of Consolidated Net Income for Subject Period:
	 	$	 	 
	 
	 	 	 
	8. Non-cash additions to Consolidated Net Income for Subject Period:
	 	$	 	 
	 
	 	 	 
	9. Consolidated EBITDA (II.A.1 + II.A.2 + II.A.3 + II.A.4 + II.A.5 +
II.A.6 + II.A.7 — II.A.8):
	 	$	 	 
	 
	 	 	 
	B. Consolidated Interest Charges for Subject Period:
	 	 	 	 
	1. Interest, premium payments, debt discount, fees, charges and
related expenses in connection with borrowed money or in connection
with the deferred purchase price of assets:
	 	$	 	 
	 
	 	 	 
	2. Rent expenses under capital leases treated as interest in
accordance with GAAP:
	 	$	 	 
	 
	 	 	 
	3. Consolidated Interest Charges (II.B.1 + II.B.2):
	 	$	 	 
	 
	 	 	 
	C. Interest Coverage Ratio (II.A.9 ÷ II.B.3):
	 	to 1	 
	 
	 	 	 
	Minimum required:
	 	3.00 to 1	 

Schedule 1 to Exhibit C

 

 

EXHIBIT D

FORM OF 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 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 of [identify Lender]]
	 
	3.	 	Borrower(s): Patterson-UTI Energy, Inc., a Delaware corporation
	 
	4.	 	Administrative Agent: Wells Fargo Bank, N.A., as the administrative agent under the Credit
Agreement
	 
	5.	 	Credit Agreement: Credit Agreement dated as of July 2, 2010, among Patterson-UTI Energy,
Inc., the Lenders from time to time party thereto, and Wells Fargo Bank, N.A., as
Administrative Agent
	 
	6.	 	Assigned Interest:

Exhibit D

 

 

	 	 	 	 	 	 	 
	Aggregate	 	 	 	 	 	 
	Amount of	 	Amount of	 	Percentage	 	 
	Commitment	 	Commitment	 	Assigned of	 	 
	for all Lenders	 	Assigned1	 	Commitment2	 	CUSIP Number
	$

	 	$
	 	 	%	 
	 
	 	 
	 	 	 	 

[7. Trade Date:                                         ]3

     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]4 Accepted:

WELLS FARGO BANK, N.A., as

Administrative Agent

 	 
	By:  	 	 
	 	Title: 	 
	 	 	 

 

			
	1	 	Amount to be adjusted by the counterparties
to take into account any payments or prepayments made between the Trade Date
and the Effective Date.
	 
	2	 	To be completed if the Assignor and the
Assignee intend that the minimum assignment amount is to be determined as of
the Trade Date.
	 
	3	 	To be added only if the consent of the
Administrative Agent is required by the terms of the Credit Agreement.
	 
	4	 	To be added only if the consent of the
Administrative Agent is required by the terms of the Credit Agreement.

Exhibit D

 

 

	 	 	 	 	 
	[Consented to:]5

PATTERSON-UTI ENERGY, INC., as

Borrower

 
	 
	By:  	 	 
	 	Title: 	 

 

			
	5	 	To be added only if the consent of the
Borrower is required by the terms of the Credit Agreement.

Exhibit D

 

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

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 Borrower, 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 Borrower, 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

Annex 1 to Assignment and Assumption

 

 

Effective Date and to the Assignee for amounts which have accrued from and after the Effective
Date.

          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.

Annex 1 to Assignment and Assumption

 

 

EXHIBIT E

FORM OF CONTINUING GUARANTY

     FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in consideration of
any credit and/or financial accommodation heretofore or hereafter from time to time made or granted
to Patterson-UTI Energy, Inc. (“Borrower”) or any other Loan Party under that certain
Credit Agreement dated as of July 2, 2010 (the “Credit Agreement”), by and between
Borrower, the financial institutions party thereto (collectively, the “Lenders”), and Wells
Fargo Bank, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”),
each of the Persons now or hereafter signatories hereto (each a “Guarantor,” and,
collectively, the “Guarantors”) hereby furnishes in favor of Administrative Agent and the
Lenders (each a “Guaranteed Party” and collectively, the “Guaranteed Parties”) its
joint and several guaranty of the Guaranteed Obligations (as hereinafter defined) as follows:

     1. Reference to Credit Agreement. Each Guarantor covenants and agrees that certain
representations, warranties and covenants set forth in the Credit Agreement are applicable to
Guarantors, and it (i) reaffirms that each such representation and warranty is true and correct in
every material respect with respect to such Guarantor to the extent that such representation and
warranty refers to such Guarantor, and (ii) agrees to comply with all of the covenants related to
it, contained in the Credit Agreement. Each Guarantor agrees that if the Credit Agreement shall
cease to remain in effect for any reason whatsoever during any period and any part of the
Guaranteed Obligations (as hereinafter defined) remain unpaid, then the terms, covenants, and
agreements thereof which are applicable to it shall nevertheless continue in full force and effect
as obligations of such Guarantor under this Guaranty. Each Guarantor shall take, or refrain from
taking, as the case may be, each action that is necessary to be taken or not taken, as the case may
be, so that no Event of Default is caused by the failure to take or refrain from taking such
action, as the case may be. All capitalized terms used but not defined herein shall have the
meaning assigned to such term in the Credit Agreement.

     2. Guaranty. (a) Each Guarantor hereby, jointly and severally, absolutely and unconditionally
guarantees, as a guarantee of payment and not as a guarantee of collection, the prompt payment in
full in Dollars when due, whether at stated maturity, upon acceleration or otherwise, and at all
times thereafter, of

          (i) any and all existing and future indebtedness and liabilities of every kind, nature
and character, direct or indirect, absolute or contingent, liquidated or unliquidated,
voluntary or involuntary, of any Loan Party arising under any Loan Document or otherwise
with respect to any Loan, and

          (ii) all existing and future indebtedness and liabilities of the Borrower or any
Subsidiary of the Borrower pursuant to any Lender Interest Rate Swap Contract arising while
such Lender or its Affiliate is a Lender party to the Credit Agreement,

in each case 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

Exhibit E

 

 

allowed claims in such proceeding (collectively, the “Guaranteed Obligations”). As used
herein, “Lender Interest Rate Swap Contract” means a Swap Contract between the Borrower or
any Subsidiary of the Borrower and any Lender or Affiliate of a Lender entered into for purposes of
mitigating interest rate risk.

          (b) The books and records of the Guaranteed Parties showing the amount of the Guaranteed
Obligations shall be admissible in evidence in any action or proceeding, and shall be binding upon
each Guarantor and conclusive for the purpose of establishing the amount of the Guaranteed
Obligations, absent manifest error. This Guaranty shall not be affected by the genuineness,
validity, regularity or enforceability of the Guaranteed Obligations or any instrument or agreement
evidencing any Guaranteed Obligations, or by the existence, validity, enforceability, perfection,
or extent of any collateral therefor, or by any fact or circumstance relating to the Guaranteed
Obligations which might otherwise constitute a defense to the obligations of any Guarantor under
this Guaranty.

          (c) The obligations of each Guarantor hereunder shall be limited to an aggregate amount equal
to the largest amount that would not render its obligations hereunder subject to avoidance under
Section 548 of the Bankruptcy Code (Title 11, United States Code) or any comparable provisions of
any applicable state law.

     3. No Setoff or Deductions; Taxes. Each Guarantor represents and warrants that it is an
entity formed or incorporated, as the case may be, under the laws of one or more states of the
United States of America. All payments by the Guarantors hereunder shall be paid in full, without
setoff or counterclaim or any deduction or withholding whatsoever for any and all Indemnified Taxes
or Other Taxes. If any Guarantor must make a payment under this Guaranty, such Guarantor agrees
that it will make the payment from one of its U.S. resident offices to Administrative Agent, on
behalf of the Guaranteed Parties. If notwithstanding the foregoing, any Guarantor makes a payment
to a Guaranteed Party under this Guaranty to which Guarantor shall be required by applicable law to
deduct any Indemnified Taxes or Other Taxes from such payments, such Guarantor shall pay all such
taxes to the relevant authority in accordance with applicable law such that the applicable
Guaranteed Party receives the sum it would have received had no such deduction or withholding been
made and shall also pay to such Guaranteed Party, within 30 days after demand therefor, all
additional amounts which such Guaranteed Party specifies as necessary to preserve the after-tax
yield would have received if such taxes had not been imposed. Such Guarantor shall promptly
provide such Guaranteed Party with an original receipt or certified copy issued by the relevant
authority evidencing the payment of any such amount required to be deducted or withheld.

     4. No Termination. This Guaranty is a continuing and irrevocable guaranty of all Guaranteed
Obligations now or hereafter existing and shall remain in full force and effect until (i) all
Guaranteed Obligations and any other amounts payable under this Guaranty are indefeasibly paid and
performed in full, the Commitments of the Lenders under the Credit Agreement are terminated, or
(ii) with respect to a Guarantor, such Guarantor is released from its obligations under this
Guaranty by an instrument in writing signed by the Administrative Agent pursuant to the Credit
Agreement (such Guarantor referenced in this clause (ii) is herein referred to as a “Released
Guarantor”.

Exhibit E

 

 

     5. Waiver of Notices. Each Guarantor waives notice of the acceptance of this Guaranty and of
the extension or continuation of the Guaranteed Obligations or any part thereof. Each Guarantor
further waives presentment, protest, notice, dishonor or default, demand for payment and any other
notices to which such Guarantor might otherwise be entitled.

     6. Subrogation. No Guarantor shall exercise any right of subrogation, contribution or similar
rights with respect to any payments it makes under this Guaranty until all of the Guaranteed
Obligations and any amounts payable under this Guaranty are indefeasibly paid and performed in full
and the commitments of the Lenders under the Credit Agreement are terminated. If any amounts are
paid to any Guarantor in violation of the foregoing limitation, then such amounts shall be held in
trust for the benefit of the Guaranteed Parties and shall forthwith be paid to Administrative
Agent, on behalf of the Guaranteed Parties, to reduce the amount of the Guaranteed Obligations,
whether matured or unmatured.

     7. Waiver of Suretyship Defenses. Each Guarantor agrees that the Guaranteed Parties may, at
any time and from time to time, and without notice to the Guarantors, make any agreement with
Borrower or with any other person or entity liable on any of the Guaranteed Obligations or
providing collateral as security for the Guaranteed Obligations, for the extension, renewal,
payment, compromise, discharge or release of the Guaranteed Obligations or any collateral (in whole
or in part), or for any modification or amendment of the terms thereof or of any instrument or
agreement evidencing the Guaranteed Obligations or the provision of collateral, all without in any
way impairing, releasing, discharging or otherwise affecting the obligations of the Guarantors
under this Guaranty. Each Guarantor waives any defense arising by reason of any disability or
other defense of Borrower or any other guarantor (including any other Guarantor hereunder), or the
cessation from any cause whatsoever of the liability of Borrower or any other Loan Party, or any
claim that such Guarantor’s obligations exceed or are more burdensome than those of Borrower or any
other Loan Party and waives the benefit of any statute of limitations affecting the liability of
such Guarantor hereunder. Each Guarantor waives any right to enforce any remedy which any
Guaranteed Party now has or may hereafter have against Borrower or any other Loan Party and waives
any benefit of and any right to participate in any security now or hereafter held by the Guaranteed
Parties. Further, each Guarantor consents to the taking of, or failure to take, any action which
might in any manner or to any extent vary the risks of such Guarantor under this Guaranty or which,
but for this provision, might operate as a discharge of such Guarantor.

     8. Exhaustion of Other Remedies Not Required. The obligations of each Guarantor hereunder are
those of primary obligor, and not merely as surety, and are independent of the Guaranteed
Obligations. Each Guarantor waives diligence by the Guaranteed Parties and action on delinquency
in respect of the Guaranteed Obligations or any part thereof, including, without limitation any
provisions of law requiring the Guaranteed Parties to exhaust any right or remedy or to take any
action against Borrower, any other guarantor (including any other Guarantor hereunder), or any
other person, entity or property before enforcing this Guaranty against such Guarantor, including,
but not limited to, the benefits of Chapter 34 of the Texas Business and Commerce Code, § 17.001 of
the Texas Civil Practice and Remedies Code, and Rule 31 of the Texas Rules of Civil Procedure, or
any similar statute.

Exhibit E

 

 

     9. Reinstatement. Notwithstanding anything in this Guaranty to the contrary, this Guaranty
shall continue to be effective or be reinstated, as the case may be, if at any time any payment of
any portion of the Guaranteed Obligations is revoked, terminated, rescinded or reduced or must
otherwise be restored or returned upon the insolvency, bankruptcy or reorganization of Borrower or
any other person or entity or otherwise, as if such payment had not been made and whether or not
the Guaranteed Parties have in possession of or have released this Guaranty and regardless of any
prior revocation, rescission, termination or reduction, in each case, however, other than a
Released Guarantor.

     10. Subordination. Each Guarantor hereby subordinates, to the extent herein provided and
except as otherwise set forth below in this Section 10, all obligations and indebtedness of any
Loan Party owing to such Guarantor, whether now existing or hereafter arising (the
“Subordinated Obligations”), to the indefeasible payment in full of all Guaranteed
Obligations. As long as no Event of Default has occurred and is continuing, this Guaranty shall
not limit any Guarantor’s right to receive payment from any Loan Party on account of any
Subordinated Obligations. Upon the occurrence and during the continuation of an Event of Default,
the Guarantor agrees not to accept any payment for any Subordinated Obligations. In the event of
(i) any insolvency, bankruptcy, receivership, liquidation, reorganization, readjustment,
composition or other similar proceeding relating to a Loan Party, its creditors as such or its
property, (ii) any proceeding for the liquidation, dissolution or other winding-up of a Loan Party,
voluntary or involuntary, whether or not involving insolvency or bankruptcy proceedings, (iii) any
assignment by a Loan Party for the benefit of creditors, or (iv) any other marshalling of the
assets of a Loan Party, the Guaranteed Obligations (including any interest thereon accruing at the
legal rate after the commencement of any such proceedings and any additional interest that would
have accrued thereon but for the commencement of such proceedings) shall first be paid in full
before any payment or distribution, whether in cash, securities or other property, shall be made by
or on behalf of or from the estate of such Loan Party to any holder of Subordinated Obligations.
If a Guarantor receives any payment of any Subordinated Obligations in violation of the terms of
this Section, such Guarantor shall hold that payment in trust for Administrative Agent and Lenders
and promptly turn it over to Administrative Agent, in the form received (with any necessary
endorsements), to be applied to the Guaranteed Obligations.

     11. Information. Each Guarantor agrees to furnish promptly to Administrative Agent such
information of the type described in Section 6.02(h) of the Credit Agreement.

     12. Stay of Acceleration. In the event that acceleration of the time for payment of any of
the Guaranteed Obligations is stayed, upon the insolvency, bankruptcy or reorganization of Borrower
or any other person or entity, or otherwise, all such amounts shall nonetheless be payable by the
Guarantors, jointly and severally, immediately upon demand by the Guaranteed Parties.

     13. Expenses. Each Guarantor shall pay, jointly and severally, on demand all out-of-pocket
expenses (including reasonable attorneys’ fees and expenses and the allocated cost and
disbursements of internal legal counsel) in any way relating to the enforcement or protection of
any Guaranteed Party’s rights under this Guaranty, including any incurred in the preservation,
protection or enforcement of any rights of any Guaranteed Party in any case commenced by or

Exhibit E

 

 

against any Guarantor under the Bankruptcy Code (Title 11, United States Code) or any similar or
successor statute. The obligations of each Guarantor under the preceding sentence shall survive
termination of this Guaranty.

     14. Application of Payments. Any payment received by any Guaranteed Party from any Guarantor
(or from any Lender pursuant to Paragraph 19 below), shall be remitted to and applied by
Administrative Agent in accordance with Section 8.03 of the Credit Agreement.

     15. Amendments. No amendment or waiver of any provision of this Guaranty, nor consent to any
departure by any Guarantor herefrom, shall in any event be effective unless the same shall be in
writing and signed, in the case of amendments, by the Guarantor(s) affected thereby and by
Administrative Agent, and, in the case of consents or waivers, by Administrative Agent, and then
such amendment, waiver or consent shall be effective only in the specific instance and for the
specific purpose for which made or given. Notwithstanding the foregoing, no Guarantor shall be
released from this Guaranty except by a writing signed by the Administrative Agent as permitted by
Section 9.10 or Section 10.01 of the Credit Agreement.

     16. No Waiver; Enforceability. No failure by the Guaranteed Parties to exercise, and no delay
in exercising, any right, remedy or power hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, remedy or power hereunder preclude any other or
further exercise thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law or in equity. The unenforceability or
invalidity of any provision of this Guaranty shall not affect the enforceability or validity of any
other provision herein.

     17. Assignment; Governing Laws; Jurisdiction. This Guaranty shall (a) bind each Guarantor and
its successors and assigns, provided that such Guarantor may not assign its rights or obligations
under this Guaranty without the prior written consent of Administrative Agent and the Lenders (and
any attempted assignment without such consent shall be void), (b) inure to the benefit of the
Guaranteed Parties and their successors and permitted assigns and each Lender may, without notice
to the Guarantor and without affecting the Guarantor’s obligations hereunder, assign or sell
participations in the Guaranteed Obligations and this Guaranty, in whole or in part, and (c) be
governed by the internal laws of the State of New York; provided that the Administrative Agent and
each Lender shall retain all rights arising under applicable federal law.

     Each Guarantor hereby irrevocably (i) submits to the non exclusive jurisdiction of any State
court sitting in New York City, any 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 Guaranty, and (ii) waives to the fullest extent permitted by applicable law any
defense asserting an inconvenient forum in connection therewith. Service of process by the
Guaranteed Parties in connection with such action or proceeding shall be binding on each Guarantor
if sent to such Guarantor by registered or certified mail at its address specified below. Subject
to such Lender’s compliance with Section 10.07 of the Credit Agreement, each Guarantor agrees that
each Lender may disclose to any prospective purchaser and any purchaser of all or part of the
Guaranteed Obligations any and all information in such Lender’s possession concerning such
Guarantor, this Guaranty and any security for this Guaranty.

Exhibit E

 

 

     18. Condition of Borrower. Each Guarantor acknowledges and agrees that it has the sole
responsibility for, and has adequate means of, obtaining from Borrower such information concerning
the financial condition, business and operations of Borrower as such Guarantor requires, and that
the Guaranteed Parties have no duty, and such Guarantor is not relying on the Guaranteed Parties at
any time, to disclose to such Guarantor any information relating to the business, operations or
financial condition of Borrower.

     19. Setoff. Each Guarantor agrees to the provisions of Section 10.08 of the Credit Agreement.

     20. Further Assurances. Each Guarantor agrees that at any time and from time to time, at the
expense of such Guarantor, to promptly execute and deliver all further instruments and documents,
and take all further action, that may be necessary or desirable, or that Administrative Agent may
reasonably request, to enable Administrative Agent to protect and to exercise and enforce the
rights and remedies of the Guaranteed Parties hereunder.

     21. Addition of Guarantors. The initial Guarantors hereunder shall be each of the
Subsidiaries of Borrower that are signatories hereto and that are listed on Schedule 1 attached
hereto. From time to time subsequent to the time hereof, additional Subsidiaries of Borrower may
become parties hereto as additional Guarantors (each an “Additional Guarantor”) by
executing a counterpart of this Guaranty Agreement in the form of Exhibit A attached hereto and
delivery to the Administrative Agent of all items required pursuant to Section 6.12(b) of
the Credit Agreement. Upon delivery of any such counterpart to Administrative Agent, notice of
which is hereby waived by Guarantors, each such Additional Guarantor shall be a Guarantor and shall
be a party hereto as if such Additional Guarantor were an original signatory hereof. Each
Guarantor expressly agrees that its obligations arising hereunder shall not be affected or
diminished by the addition or release of any other Guarantor hereunder, or by any election by
Administrative Agent not to cause any Subsidiary of Borrower to become an Additional Guarantor
hereunder.

     22. Notices. All notices, requests and other communications provided for hereunder shall be
in writing and given to Administrative Agent or any Guarantor as provided in Section 10.02 of the
Credit Agreement.

     23. Joint and Several Obligations. Each Guarantor acknowledges that (i) this Guaranty is a
master Guaranty pursuant to which other Subsidiaries of Borrower now or hereafter may become
parties, and (ii) the guaranty obligations of each of the Guarantors hereunder are joint and
several.

     24. WAIVER OF JURY TRIAL; FINAL AGREEMENT. TO THE EXTENT ALLOWED BY APPLICABLE LAW, EACH
GUARANTOR AND EACH GUARANTEED PARTY WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR
PROCEEDING ON OR ARISING OUT OF THIS GUARANTY. THIS GUARANTY (INCLUDING ANY SUPPLEMENTAL GUARANTY
OR OTHER AGREEMENT BY WHICH A PERSON BECOMES A GUARANTOR), AND THE CREDIT AGREEMENT REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE
CONTRADICTED BY EVIDENCE

Exhibit E

 

 

OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

Remainder of Page Intentionally Blank.

Signature(s) Page to Follow.

Exhibit E

 

 

     IN WITNESS WHEREOF, the Guarantors have caused this Guaranty to be duly executed and delivered
by their respective officers thereunto duly authorized as of July ___, 2010.

[NAMES OF THE GUARANTORS]

Exhibit E

 

 

SCHEDULE 1

INITIAL GUARANTORS

Patterson Petroleum LLC

Patterson-UTI Drilling Company LLC

Patterson-UTI Drilling International, Inc.

Patterson-UTI Management Services, LLC

Universal Well Services, Inc.

Schedule 1 to Exhibit E

 

 

EXHIBIT A

COUNTERPART TO CONTINUING GUARANTY

     In witness whereof, the undersigned Additional Guarantor has caused this Counterpart to
Continuing Guaranty to be duly executed and delivered by its duly authorized officer as of
                     ___, 20___.

	 	 	 	 	 
	 
	 	[NAME OF ADDITIONAL GUARANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit A to Exhibit E

 

 

EXHIBIT F

FORM OF OPINION OF COUNSEL

July ___, 2010

Each of the Lenders under the

Credit Agreement, including those

Lenders listed in Schedule A hereto

Wells Fargo Bank, N.A.,

as Administrative Agent for the Lenders and Lender

[Address to come]

Ladies and Gentlemen:

     We have acted as counsel to Patterson-UTI Energy, Inc., a Delaware corporation (the
“Company”), in connection with its execution and delivery of (i) the Credit Agreement dated as of
July 2, 2010 (the “Credit Agreement”), among the Company, the lenders from time to time parties
thereto (the “Lenders”), and Wells Fargo Bank, N.A., as administrative agent (in such capacity, the
“Administrative Agent”), land lender, and (ii) the promissory note dated July ___, 2010 (the
“Note”), executed and delivered by the Company pursuant to the Credit Agreement. In addition, we
have acted as counsel to the Guarantors each in connection with its execution and delivery of the
Continuing Guaranty dated as of July ___, 2010 (the “Guaranty”). Capitalized terms used and not
defined herein or in any Schedule hereto have the meanings assigned to such terms in the Credit
Agreement. The opinions expressed herein are being furnished to you pursuant to Section 4.01(a)(v)
of the Credit Agreement.

     In rendering the opinions expressed herein, we have (i) examined the Credit Agreement, the
Note, and the Guaranty (collectively, the “Financing Documents”), corporate records of the Company
and each of the Guarantors (collectively, the “Loan Parties”), certificates of representatives of
the Loan Parties, certificates and other communications of public officials and such other
instruments, agreements and documents as are in our judgment necessary to enable us to render the
opinions expressed herein, and (ii) as to questions of fact material to the opinions expressed
herein, and as to factual matters arising in connection with our examination of the aforesaid
materials, relied, to the extent we deemed appropriate, upon the factual representations and
warranties contained in the Financing Documents, upon such certificates, communications,
instruments, agreements, and documents and certain facts stated elsewhere herein.

     In making such examination and in such reliance, we have assumed the authenticity and
completeness of all records, certificates, instruments, agreements, and other documents submitted
to us as originals, the conformity to authentic originals, records, certificates, instruments,
agreements, and other documents of all copies submitted to us as copies, and the authenticity of
the originals of such latter records, certificates, instruments, agreements, and other documents.
In addition, we have assumed the legal capacity of each natural person identified in, or indicated
as

 

 

Wells Fargo Bank, N.A., as Administrative Agent

June ___, 2010

having executed, any of those records, certificates, instruments, agreements, and other
documents and the genuineness of all signatures on all such records, certificates, instruments,
agreements, and other documents.

     In rendering the opinions expressed herein, we also have assumed the following:

          (i) each Person a party to any Financing Document other than a Loan Party (each such Person
other than the Loan Parties, an “Other Party”) (a) has been duly organized or formed (as
applicable), (b) is validly existing and in good standing under the laws of its jurisdiction of
incorporation or formation (as applicable), and (c) has the corporate or equivalent power and
authority to execute and deliver, and to perform its obligations under, each of the Financing
Documents in which such Person is identified as a party;

          (ii) the execution and delivery of each of the Financing Documents by each Other Party, and
the performance of its obligations thereunder, have been duly authorized by all necessary corporate
or equivalent action on the part of each such Other Party;

          (iii) each Other Party has duly executed and delivered each of the Financing Documents in
which such Other Party is identified as a party;

          (iv) each Person a party to any Financing Document other than a Loan Party has (a) satisfied
each legal requirement that is applicable to such Person to the extent necessary to make such
Financing Document enforceable against such Person, and (b) complied with any other legal
requirements pertaining to the status of such Person as such status relates to the rights of such
Person to perform or enforce (as applicable) such Financing Document against each other Person that
is identified as a party to such Financing Document;

          (v) no order, consent, approval, license, authorization, waiver, or validation of, or filing,
recording, or registration with, or notice to, or exemption by any court, governmental body, or
authority, or any subdivision thereof, is required to authorize or is required in connection with
the execution and delivery of any Financing Document by any Person identified in any such Financing
Document as a party thereto or in connection with the performance of any such Person’s obligations
thereunder or the consummation of the transactions contemplated thereby, other than those that have
been obtained or made and are in full force and effect (provided, that we make no such assumption
with respect to consents, approvals, and the like applicable to the Loan Parties to the extent that
we express our opinion rendered in paragraph 6 below);

          (vi) each of the Financing Documents is the valid and binding obligation of each Person
identified as a party thereto (other than a Loan Party), enforceable against each such Person in
accordance with its terms; and

          (vii) Administrative Agent has been and is the duly appointed agent of each of the Lenders
(the Administrative Agent and Lenders collectively, the “Financing Parties”).

 

 

Wells Fargo Bank, N.A., as Administrative Agent

June ___, 2010

     Based upon the foregoing and in the reliance thereon, and subject to and qualified by the
assumptions, qualifications, limitations, and exceptions set forth herein, and having due regard
for such legal considerations as we deem relevant, we are of the opinion that:

          1. a. The Company is validly existing as a corporation in good standing under the General
Corporation Law of the State of Delaware (the “DGCL”).

               b. Each of the Delaware Corporations is validly existing as a corporation in good standing
under the DGCL.

               c. Each of the Delaware LLCs is validly existing as a limited liability company in good
standing under the Delaware Limited Liability Company Act (the “Delaware LLC Act”).

               d. Each of the Texas LLCs is validly existing as a limited liability company under the Texas
Limited Liability Company Law of the Texas Business Organizations Code.

          2. The execution and delivery by each Loan Party of each Financing Document to which it is a
party, and the performance by such Loan Party of its obligations thereunder, are within its
corporate or limited liability company (as the case may be) power and authority and have been duly
authorized by all necessary corporate or limited liability company (as the case may be) action.

          3. Each Financing Document to which a Loan Party is a party has been duly executed and
delivered by it.

          4. Under the internal laws of the State of New York, each of the Financing Documents to which
a Loan Party is a party is a valid and binding obligation of such Loan Party, enforceable against
such Loan Party in accordance with its terms.

          5. Neither the execution and delivery by a Loan Party of any Financing Document to which it is
a party, nor the performance of its obligations thereunder, will (i) result in a violation by it of
(a) any statutory law or regulation applicable to such Person, or (b) the certificate of
incorporation and bylaws or certificate of formation or limited liability company agreement (as the
case may be) of such Person, or (ii) result in a breach of, or constitute a default under, the
terms of any agreement or instrument binding on such Person which is filed as an exhibit to the
Company’s Annual Report on Form 10-K for the year ended December 31, 2009.

          6. No consent, approval, authorization, or waiver of, or notice to or filing with, or other
action by, any governmental authority is required to be obtained or made by a Loan Party by any
material statutory law or regulation applicable to such Loan Party as a condition to the execution
and delivery by such Loan Party of any Financing Document to which it is a party, or the
performance by such Loan Party of its obligations under any Financing Document to which it is a
party.

 

 

 Wells Fargo Bank, N.A., as Administrative Agent

June ___, 2010

          7. None of the Loan Parties is an “investment company,” as such term is defined in the
Investment Company Act of 1940, as amended.

          8. Assuming the Company complies with the provisions of the Credit Agreement relating to the
use of proceeds thereunder (whether or not therein stated as a covenant), the use by it of proceeds
from the Loans will not result in a violation of Regulation U of the Federal Reserve Board.

     The foregoing opinions expressed herein are further subject to, and qualified by, the
following assumptions, exceptions, qualifications, and limitations:

          A. The opinions expressed herein are limited exclusively to the laws of the States of New York
and Texas, the DGCL, the Delaware LLC Act, and the federal statutory laws and regulations of the
United States of America. In respect to such laws, in addition to other limitations set forth
herein, such reference is limited to laws that are normally applicable to the transactions provided
for in the Financing Documents, and, in any event and without limitation, does not include
statutes, laws, rules, or regulations relating to (i) the operation of any asset or property, (ii)
utility regulation, (iii) antitrust, (iv) taxation, or (v) securities law, or the construction or
interpretations of any of the foregoing, or authorizations, permits, consents, and the like with
respect thereto. Reference herein to the “internal laws” of a jurisdiction is to the laws of that
jurisdiction, other than (x) that jurisdiction’s choice-of-law statutes and rules, (y) the statutes
and ordinances, the administrative decisions, and the rules and regulations of counties, towns,
municipalities, and political subdivisions (whether created or enabled through legislative action
at the federal, state, regional, or local level), and (z) judicial decisions to the extent they
deal with any of the foregoing.

          B. The opinions expressed in paragraph 4 hereof (such opinions expressed in such paragraph,
the “Remedies Opinions”) are further subject to the following:

          (i) The enforceability of the Financing Documents, and to the extent applicable, the Liens
created thereby, may be limited or affected by (a) bankruptcy, insolvency, reorganization,
moratorium, liquidation, rearrangement, conservatorship, receivership, fraudulent conveyance, or
transfer or similar laws (including court decisions) relating to or affecting the rights and
remedies of creditors generally or providing for the relief of debtors, (b) general principles of
equity, including, without limitation, requirements of good faith, fairness, and reasonableness,
and the possible unavailability of specific performance or injunctive relief (regardless of whether
enforceability is considered in a proceeding in equity or at law), (c) the refusal of a particular
court to grant (1) equitable remedies, including, without limitation, specific performance and
injunctive relief, or (2) a particular remedy sought by a Financing Party under any Financing
Document as opposed to another remedy provided for therein or another remedy available at law or in
equity, and (d) judicial discretion.

          (ii) In rendering the Remedies Opinions expressed in paragraph 4, we express no opinion as to
the validity or enforceability of any provision of any Financing Document that:

 

 

Wells Fargo Bank, N.A., as Administrative Agent

June ___, 2010

     (1) purports to (i) establish evidentiary standards or characterizations, treatments
or effects of payments or rights, in each case made or existing under, or in connection
with, any Financing Document, (ii) waive or otherwise affect any right, warranty, or
defense that cannot be waived or otherwise affected as a matter of law, (iii) negate the
effect of any course of dealing or any exercise, or failure or delay to exercise, any
right, power, privilege, or remedy, (iv) relate to indemnities, exculpation, or
contribution to the extent prohibited by public policy or require indemnification or
contribution (as applicable) for liability on account of fraud, gross negligence, willful
misconduct, breach of the performance of an agreed undertaking, violation of law or illegal
conduct (or the public policy underlying such action or conduct) of any Person seeking or
asserting the benefit of such indemnity, exculpation, or contribution provision, (v) limit
liability of any Person to claims for gross negligence or willful misconduct, (vi) grant to
any Person the right to offset special deposits against obligations owed under the
Financing Documents, (vii) authorize conclusive determinations by any party or to permit a
party to make determinations in its sole discretion, or (viii) restrict access to legal or
equitable remedies;

     (2) states that (i) prohibition, illegality, invalidity, or unenforceability of any
provision of such Financing Document in any jurisdiction shall not (a) invalidate the
remaining provisions of such Financing Document, or (b) affect that provision in any other
jurisdiction, or (ii) the right of any Person to exercise any right or remedy on the basis
of any misrepresentation or breach of warranty is not affected by any action by a Lender;

     (3) constitutes a submission to or acceptance of the jurisdiction of, or permits an
action against any Person to be brought, or waives any objection to the laying of venue or
choice of forum in such an action, in, the courts of any jurisdiction, other than the
courts of the State of New York or the federal courts of the United States of America
sitting in the State of New York;

     (4) permits an action against any Person to be brought in the courts of the State of
New York (i) if such Person has not been served with process in that action in accordance
with applicable rules of procedure, or (ii) if the court in which the action is brought
does not have jurisdiction of the subject matter of the action;

     (5) permits an action against any Person to be brought in the federal courts of the
United States of America sitting in the State of New York (i) if such Person has not been
served with process in accordance with applicable rules of procedure, or (ii) if those
courts do not have jurisdiction in the subject matter of the action;

     (6) requires the reimbursement to any Person whose breach of a recognizable standard
of performance or care in acting or failing timely or otherwise properly to act
substantially contributed to the basis for which such reimbursement is sought; or

 

 

Wells Fargo Bank, N.A., as Administrative Agent

June ___, 2010

     (7) provides for the enforcement in any jurisdiction of a judgment of the courts of
another jurisdiction.

          (iii) We have assumed that each Financing Party will act reasonably and in good faith in
performing its duties, and in exercising its rights and remedies, under the Financing Documents.
In this regard, we note that the enforceability of specific provisions of the Financing Documents
may be subject to standards of reasonableness, care and diligence and “good faith” limitations and
obligations such as those provided in Sections 1.302(b), 1.304, 1.309, and 5.109 of the Uniform
Commercial Code as in effect in the State of New York and similar applicable principles of common
law and judicial precedent. Further, we have also assumed that each Financing Party will enforce
the respective Financing Documents in compliance with the provisions thereof and all requirements
of applicable law.

          (iv) Furthermore, we note that the maximum lawful amount or rate of interest which any
national bank, a federal savings bank or any foreign bank or branch of a foreign bank which is
subject to the jurisdiction of the federal banking laws of the United States of America, may take,
receive, reserve, contract for, or charge is governed by federal statutory law. Further, Financing
Parties that are entities other than such financial institutions may, in accordance with laws
governing their respective operation and business, be subject to statutory limits provided by the
laws other than the laws of the State of New York. In rendering the Remedies Opinions, we express
no opinion as to whether the interest provided for in any Financing Document is in excess of any
such maximum lawful amount or rate or as to the effect of the provisions for interest in any Loan
Document on the enforceability of the Financing Documents with respect to any Financing Party
constituting a national bank or such foreign bank or branch thereof which is located in any
jurisdiction other than the State of New York.

          C. We do not express any opinion with respect to any exhibit to, or other agreement referred
to in, any of the Financing Documents.

          D. In rendering the foregoing opinions, we have not, pursuant to our engagement, endeavored to
express any opinions, and we express no opinions, and none are intended to be implied hereby nor
shall be inferred herefrom, as to (i) the various state and federal laws, statutes, regulations,
interpretations, opinions, directives, orders, rulings, authorities, or similar matters regulating
or governing any Financing Party (collectively, the “Rules”) and/or its entry into, execution,
delivery, or performance of the Financing Documents, or the transactions provided for therein, or
the conduct of its business related thereto, or (ii) any Financing Party’s compliance with any of
the Rules in connection with any Financing Document, or the transactions provided for therein.

          E. In rendering the opinions expressed in paragraph 1 above relating to existence and good
standing, we have relied solely upon a review of certificates of public officials, without further
investigation as to matters set forth therein, and such opinions are limited to the dates of such
certificates.

 

 

 Wells Fargo Bank, N.A., as Administrative Agent

June ___, 2010

          The opinions expressed herein are solely for the benefit of, and may only be relied upon by
each Financing Party, and its permitted successors and assigns, in connection with the Financing
Documents; provided however, any reliance on such opinions by a Person who becomes a party to the
Financing Documents after the date of this opinion letter shall be as to the opinions expressed
herein as of the date of this opinion letter and shall not constitute a reissuance of such opinions
as of the date of any such subsequent reliance or other subsequent date. Neither this opinion
letter nor any excerpt hereof (nor any reproduction of any of the foregoing) may be furnished to
(except in connection with a legal or arbitral proceeding or as may be required by applicable law,
and in any such events, as shall be directed and required incident thereto pursuant to a duly
issued subpoena, writ, order or other legal process), or relied upon by, any other Person without
the prior written consent of this Firm. The opinions expressed herein are as of the date hereof
(and not as of any other date, including, without limitation, the effective date of any Financing
Document if a date other than the date hereof) or, to the extent a reference to certificates of
public officials or other documents made herein, such date or dates, and we make no undertaking to
amend or supplement such opinions as facts and circumstances come to our attention or changes in
the law occur which could affect such opinions.

Very truly yours,

DRAFT

Fulbright & Jaworski L.L.P.

 

 

SCHEDULE A

LIST OF LENDERS

Wells Fargo Bank, N.A.

 

 

SCHEDULE B

LIST OF GUARANTORS

The Persons listed immediately below, collectively, the “Delaware Corporations”

Patterson-UTI Drilling International, Inc.

Universal Well Services, Inc.

The Persons listed immediately below, collectively the “Delaware LLCs”

Patterson-UTI Management Services, LLC

The Persons listed immediately below, collectively, the “Texas LLCs”

Patterson Petroleum LLC

Patterson-UTI Drilling Company LLC

The Delaware Corporations, Delaware LLCs, and Texas LLCs, collectively, the “Guarantors.”

Schedule B to Exhibit F

 

 

EXHIBIT G

FORM OF PREPAYMENT NOTICE

Date:                     , _____

To:     Wells Fargo Bank, N.A., as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Credit Agreement, dated as of July 2, 2010 (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
Patterson-UTI Energy, Inc., a Delaware corporation (the “Borrower”), the Lenders from time
to time party thereto, and Wells Fargo Bank, N.A., as Administrative Agent.

     The undersigned hereby gives notice of prepayment on the following Type of Loan (select one):

     o Base Rate Loans   o Eurodollar Rate Loans

     1. On                                          (a Business Day).

     2. In
the amount of $                     .

     The giving of this notice and the amount of the prepayment of the Loans indicated herein
comply with Section 2.04(a) of the Agreement.

	 	 	 	 	 
	 	PATTERSON-UTI ENERGY, INC.,

a Delaware corporation, as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit G

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