Document:

exv10w3

Execution Version

Amended and Restated Collateral Agreement

Dated as of

November 3, 2010

Made by

EXLP Operating LLC;

Exterran Partners, L.P.;

and

EXLP Leasing LLC

in Favor of

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.01
	 	Definitions	 	 	1	 
	Section 1.02
	 	Other Definitional Provisions	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE II Grant of Security Interest	 	 	4	 
	 
	 	 	 	 	 	 
	Section 2.01
	 	Grant of Security Interest	 	 	4	 
	Section 2.02
	 	Transfer of Pledged Securities	 	 	4	 
	Section 2.03
	 	No Subrogation	 	 	5	 
	Section 2.04
	 	Amendments, Etc. With Respect to the Indebtedness	 	 	5	 
	Section 2.05
	 	Waivers	 	 	6	 
	Section 2.06
	 	Pledge Absolute and Unconditional	 	 	6	 
	Section 2.07
	 	Reinstatement	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE III Representations and Warranties	 	 	8	 
	 
	 	 	 	 	 	 
	Section 3.01
	 	Title; No Other Liens	 	 	8	 
	Section 3.02
	 	Perfected First Priority Liens	 	 	8	 
	Section 3.03
	 	Grantor Information	 	 	8	 
	Section 3.04
	 	Pledged Securities	 	 	9	 
	Section 3.05
	 	Instruments and Chattel Paper	 	 	9	 
	Section 3.06
	 	Truth of Information; Accounts	 	 	9	 
	Section 3.07
	 	Governmental Obligors	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE IV Covenants	 	 	9	 
	 
	 	 	 	 	 	 
	Section 4.01
	 	Maintenance of Perfected Security Interest; Further Documentation	 	 	9	 
	Section 4.02
	 	Changes in Locations, Name, Etc.	 	 	10	 
	Section 4.03
	 	Pledged Securities	 	 	10	 
	Section 4.04
	 	Instruments and Tangible Chattel Paper	 	 	11	 
	Section 4.05
	 	Article 8 of the UCC	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE V Remedial Provisions	 	 	12	 
	 
	 	 	 	 	 	 
	Section 5.01
	 	UCC and Other Remedies	 	 	12	 
	Section 5.02
	 	Collections on Accounts, Etc.	 	 	13	 
	Section 5.03
	 	Proceeds	 	 	13	 
	Section 5.04
	 	Pledged Securities	 	 	14	 
	Section 5.05
	 	Private Sales of Pledged Securities	 	 	16	 
	Section 5.06
	 	Deficiency	 	 	16	 
	Section 5.07
	 	Non-Judicial Enforcement	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE VI The Administrative Agent	 	 	17	 
	 
	 	 	 	 	 	 
	Section 6.01
	 	Administrative Agent’s Appointment as Attorney-in-Fact, Etc.	 	 	17	 
	Section 6.02
	 	Duty of Administrative Agent	 	 	18	 
	Section 6.03
	 	Filing of Financing Statements	 	 	19	 
	Section 6.04
	 	Authority of Administrative Agent	 	 	19	 
	 
	 	 	 	 	 	 
	ARTICLE VII Subordination of Indebtedness	 	 	19	 

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	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 7.01
	 	Subordination of All Grantor Claims	 	 	19	 
	Section 7.02
	 	Claims in Bankruptcy	 	 	19	 
	Section 7.03
	 	Payments Held in Trust	 	 	20	 
	Section 7.04
	 	Liens Subordinate	 	 	20	 
	Section 7.05
	 	Notation of Records	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE VIII Miscellaneous	 	 	20	 
	 
	 	 	 	 	 	 
	Section 8.01
	 	Waiver	 	 	20	 
	Section 8.02
	 	Notices	 	 	20	 
	Section 8.03
	 	Amendments in Writing	 	 	21	 
	Section 8.04
	 	Successors and Assigns	 	 	21	 
	Section 8.05
	 	Survival; Revival; Reinstatement	 	 	21	 
	Section 8.06
	 	Counterparts; Integration; Effectiveness; Conflicts	 	 	21	 
	Section 8.07
	 	Severability	 	 	22	 
	Section 8.08
	 	Governing Law; Submission to Jurisdiction	 	 	22	 
	Section 8.09
	 	Headings	 	 	23	 
	Section 8.10
	 	Acknowledgments	 	 	23	 
	Section 8.11
	 	Additional Equity Interests	 	 	24	 
	Section 8.12
	 	Additional Grantors	 	 	24	 
	Section 8.13
	 	Releases	 	 	24	 
	Section 8.14
	 	Acceptance	 	 	25	 

ANNEXES:

	I 	 	Form of Pledged Securities Supplement
	II	 	Form of Additional Grantor Supplement

SCHEDULES:

	1	 	Notice Addresses of Grantors
	 
	2	 	Description of Pledged Securities
	 
	3	 	Filings and Other Actions Required to Perfect Security Interests
	 
	4	 	Location of Jurisdiction of Organization and Chief Executive Office

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     This AMENDED AND RESTATED COLLATERAL AGREEMENT, dated as of November 3, 2010, is made by
EXLP OPERATING LLC, a Delaware limited liability company (“Operating”), EXTERRAN PARTNERS,
L.P., a Delaware limited partnership (“EXLP”) and EXLP LEASING LLC, a Delaware limited
liability company (“EXLP Leasing” and collectively with Operating and EXLP, the
“Grantors”), in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent
(in such capacity, together with its successors in such capacity, the “Administrative
Agent”), for the lenders and other financial institutions (the “Lenders”) from time to
time party to the Amended and Restated Senior Secured Credit Agreement dated of even date herewith
(as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Operating, as Borrower, EXLP, as Guarantor, the Administrative Agent, the Lenders and other
Agents party thereto.

RECITALS

     A. The Borrower, EXLP, the Administrative Agent and the lenders party thereto previously
entered into that certain Senior Secured Credit Agreement, dated as of October 20, 2006 (as
heretofore amended, restated, supplemented and otherwise modified, the “Existing Credit
Agreement”).

     B. The Borrower has requested that the Lenders (i) amend and restate the Existing Credit
Agreement and (ii) provide certain loans and extensions of credit to the Borrower pursuant to the
Credit Agreement.

     C. It is a condition precedent to the Lenders’ agreement (i) to amend and restate the Existing
Credit Agreement and (ii) to enter into the Credit Agreement and make such loans and extensions of
credit thereunder that the Grantors shall have executed and delivered this Agreement to the
Administrative Agent for the Secured Parties (as defined below).

     D. NOW, THEREFORE, in consideration of the premises herein and to induce the Administrative
Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders to make their
respective loans and extensions of credit to the Borrower thereunder, each Grantor hereby agrees
with the Administrative Agent, for the ratable benefit of the Secured Parties, as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Definitions.

          (a) As used in this Agreement, each term defined above shall have the meaning indicated above.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have
the meanings given to them in the Credit Agreement, and the following terms which are defined in
the UCC on the date hereof are used herein as so defined: Accounts, Chattel Paper, Documents,
Equipment, General Intangibles, Instruments, Inventory, Payment Intangibles and Tangible Chattel
Paper.

          (b) The following terms have the following meanings:

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     “Account Debtor” means any Person (other than any Grantor) obligated on an Account,
Chattel Paper, or General Intangible.

     “Administrative Agent” has the meaning assigned to such term in the preamble hereto.

     “Agreement” means this Amended and Restated Collateral Agreement, as the same may from
time to time be amended, supplemented, restated or otherwise modified from time to time.

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

     “Collateral” has the meaning assigned to such term in Section 2.01.

     “Credit Agreement” has the meaning assigned to such term in the preamble hereto.

     “EXLP” has the meaning assigned to such term in the preamble hereto.

     “EXLP Leasing” has the meaning assigned to such term in the preamble hereto.

     “Existing Credit Agreement” has the meaning assigned such term in the recitals hereto.

     “Grantor” has the meaning assigned to such term in the preamble hereto.

     “Grantor Claims” has the meaning assigned to such term in Section 7.01.

     “Issuers” means the collective reference to each issuer of Pledged Securities.

     “Lenders” has the meaning assigned to such term in the preamble hereto.

     “Operating” has the meaning assigned to such term in the preamble hereto.

     “Payment in Full” means (a) all the Indebtedness shall have been paid in full in cash
(other than (i) indemnity obligations that survive the termination of this Agreement for which no
notice of claim has been received by the Guarantors and (ii) obligations in respect of Letters of
Credit secured by cash collateral as permitted in Section 2.07(a)(ii) of the Credit Agreement), (b)
no Letter of Credit shall be outstanding (except for Letters of Credit secured by cash collateral
as permitted in Section 2.07(a)(iii) of the Credit Agreement) and (c) all of the Aggregate
Commitments have expired or are terminated.

     “Pledged Securities” means: (a) the Equity Interests described or referred to in
Schedule 2 (as the same may be supplemented from time to time pursuant to a Supplement in
substantially the form of Annex I); and (b) (i) the certificates or instruments, if any,
representing such Equity Interests, (ii) all dividends (cash, Equity Interests or otherwise), cash,
instruments, rights to subscribe, purchase or sell and all other rights and Property from time to
time received, receivable or otherwise distributed in respect of or in exchange for any or all of
such Equity Interests, (iii) all replacements, additions to and substitutions for any of the
Property referred to in this definition, including, without limitation, claims against third
parties, (iv) the proceeds, interest, profits and other income of or on any of the Property
referred to in this definition, (v) all

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security entitlements in respect of any of the foregoing, if any, and (vi) all books and
records relating to any of the Property referred to in this definition.

     “Proceeds” means all “proceeds” as such term is defined in Section 9.102(65) of the
UCC and, in any event, shall include, without limitation, all dividends or other income from the
Pledged Securities, collections thereon or distributions or payments with respect thereto.

     “Secured Documents” means, collectively, the Credit Agreement, the other Loan
Documents, each Secured Hedging Agreement, each Treasury Management Agreement executed between EXLP
or any Restricted Subsidiary and a Secured Treasury Management Counterparty and any other documents
made, delivered or given in connection with any of the foregoing.

     “Secured Hedging Agreement” means any Hedging Agreement between EXLP or any Restricted
Subsidiary and any Secured Hedging Provider, including any Hedging Agreement with a Secured Hedging
Provider in existence prior to the date hereof, but excluding any additional transactions or
confirmations entered into under such Hedging Agreement after such Secured Hedging Provider ceases
to be a Lender or an Affiliate of a Lender.

     “Secured Parties” means collectively, the Administrative Agent, the Issuing Banks, the
Lenders, any Secured Hedging Provider and any Secured Treasury Management Counterparty.

     “Securities Act” means the Securities Act of 1933, as amended.

     “UCC” means the Uniform Commercial Code as from time to time in effect in the State of
Texas; provided, however, that, in the event that, by reason of mandatory provisions of law, any of
the attachment, perfection or priority of the Secured Parties’ security interest in any Collateral
is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of
Texas, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such attachment, perfection, the
effect thereof or priority and for purposes of definitions related to such provisions.

     Section 1.02 Other Definitional Provisions.

          (a) The words “hereof,” “herein,” “hereto” and “hereunder” and words of similar import when
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement, and Section and Schedule references are to this Agreement unless otherwise
specified.

          (b) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

          (c) Where the context requires, terms relating to the Collateral or any part thereof, when
used in relation to a Grantor, refer to such Grantor’s Collateral or the relevant part thereof.

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ARTICLE II

GRANT OF SECURITY INTEREST

     Section 2.01 Grant of Security Interest. Each Grantor hereby pledges, assigns and
transfers to the Administrative Agent, and hereby grants to the Administrative Agent, for the
ratable benefit of the Secured Parties, a security interest in all of the following Property now
owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any
time in the future may acquire any right, title or interest (collectively, the
“Collateral”), as collateral security for the prompt and complete payment and performance
when due (whether at the stated maturity, by acceleration or otherwise) of the Indebtedness:

          (a) all Accounts;

          (b) all Chattel Paper;

          (c) all Documents;

          (d) all Equipment;

          (e) all General Intangibles;

          (f) all Instruments;

          (g) all Inventory;

          (h) all Pledged Securities;

          (i) all books and records pertaining to the Collateral; and

          (j) to the extent not otherwise included, all Proceeds and products of any and all of the
foregoing and all collateral security and guarantees given by any Person with respect to any of the
foregoing.

Each reference to Collateral or to any relevant type or item of Property constituting Collateral
shall be deemed to exclude (i) tangible Property that is not located in the continental United
States (including its possessions), (ii) motor vehicles, forklifts and trailers, (iii) voting
equity interests in any Foreign Subsidiary in excess of 66% of all voting equity interests in such
Foreign Subsidiary, (iv) any general intangibles or other rights arising under any contract,
instrument, license or other document if (but only to the extent that) the grant of a security
interest therein would constitute a material violation of a valid and enforceable restriction in
favor of a third party, unless and until all required consents shall have been obtained, (v) any
Property subject to a Lien permitted by Section 9.02(b), (c), (d), (e) or (g) of the Credit
Agreement, so long as such Lien is in effect and (vi) Pledged Securities consisting of Equity
Interests in a Joint Venture to the extent the Organization Documents of such Joint Venture
prohibit the granting of a Lien on such Equity Interests.

     Section 2.02 Transfer of Pledged Securities. Any certificates or instruments
representing or evidencing the Pledged Securities shall be delivered to and held pursuant hereto

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by the Administrative Agent or a Person designated by the Administrative Agent and shall be in
suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of
transfer or assignment in blank, and accompanied by any required transfer tax stamps to effect the
pledge of the Pledged Securities to the Administrative Agent. Notwithstanding the preceding
sentence, at the Administrative Agent’s discretion, all Pledged Securities must be delivered or
transferred in such manner as to permit the Administrative Agent to be a “protected purchaser” to
the extent of its security interest as provided in Section 8.303 of the UCC (if the Administrative
Agent otherwise qualifies as a protected purchaser). During the continuance of an Event of Default,
the Administrative Agent shall have the right, at any time in its discretion and without notice, to
transfer to or to register in the name of the Administrative Agent or any of its nominees any or
all of the Pledged Securities, subject only to the revocable rights specified in Section 5.04. In
addition, during the continuance of an Event of Default, the Administrative Agent shall have the
right at any time to exchange certificates or instruments representing or evidencing Pledged
Securities for certificates or instruments of smaller or larger denominations.

     Section 2.03 No Subrogation. Notwithstanding any payment made by any Grantor
hereunder or any set-off or application of funds of any Grantor by any Secured Party, no Grantor
shall be entitled to be subrogated to any of the rights of any Secured Party against the Borrower
or any other Grantor or any collateral security or pledge or guarantee or right of offset held by
any Secured Party for the payment of the Indebtedness, nor shall any Grantor seek or be entitled to
seek any indemnity, exoneration, participation, contribution or reimbursement from the Borrower or
any other Grantor in respect of payments made by such Grantor hereunder, until Payment in Full. If
any amount shall be paid to any Grantor on account of such subrogation rights at any time prior to
Payment in Full, such amount shall be held by such Grantor in trust for the Secured Parties, and
shall, forthwith upon receipt by such Grantor, be turned over to the Administrative Agent in the
exact form received by such Grantor (duly indorsed by such Grantor to the Administrative Agent, if
required), to be applied against the Indebtedness, whether matured or unmatured, in accordance with
Section 10.02(c) of the Credit Agreement.

     Section 2.04 Amendments, Etc. With Respect to the Indebtedness. Each Grantor shall
remain obligated hereunder, and such Grantor’s obligations hereunder shall not be released,
discharged or otherwise affected, notwithstanding that, without any reservation of rights against
any Grantor and without notice to, demand upon or further assent by any Grantor (which notice,
demand and assent requirements are hereby expressly waived by such Grantor), (a) any demand for
payment of any of the Indebtedness made by any Secured Party may be rescinded by such Secured Party
or otherwise and any of the Indebtedness continued; (b) the Indebtedness, the liability of any
other Person upon or for any part thereof or any collateral security or pledge or guarantee
therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by,
or any indulgence or forbearance in respect thereof granted by, any Secured Party; (c) any Secured
Document may be amended, modified, supplemented, restated, replaced or terminated, in whole or in
part, as the applicable Secured Parties may deem advisable from time to time; (d) any collateral
security, pledge, guarantee or right of offset at any time held by any Secured Party for the
payment of the Indebtedness may be sold, exchanged, waived, surrendered, restated, replaced or
released; (e) any additional guarantors, makers or endorsers of the Indebtedness may from time to
time be obligated on the Indebtedness or any additional security or collateral for the payment and
performance of the Indebtedness may from time to

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time secure the Indebtedness; and (f) any other event shall occur which constitutes a defense
or release of sureties generally. No Secured Party shall have any obligation to protect, secure,
perfect or insure any Lien at any time held by it as security for the Indebtedness or for the
pledge and security grants contained in this Article II or any Property subject thereto.

     Section 2.05 Waivers. Each Grantor hereby waives any and all notice of the creation,
renewal, extension or accrual of any of the Indebtedness and notice of or proof of reliance by any
Secured Party upon the pledge and security grants contained in this Article II or acceptance of the
pledge and security grants contained in this Article II; the Indebtedness, and any part thereof,
shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon the pledge and security grants contained in this Article II and
no notice of creation of the Indebtedness or any extension of credit already or hereafter
contracted by or extended to the Borrower need be given to any Grantor; and all dealings between
the Borrower and any of the Grantors, on the one hand, and the Secured Parties, on the other hand,
likewise shall be conclusively presumed to have been had or consummated in reliance upon the pledge
and security grants contained in this Article II. Each Grantor waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon the Borrower or any of
the Grantors with respect to the Indebtedness.

     Section 2.06 Pledge Absolute and Unconditional.

          (a) Except as provided in Section 8.13, each Grantor understands and agrees that the pledge
and security grant contained in this Article II is, and shall be construed as, a continuing,
complete, absolute and unconditional pledge and security grant, and each Grantor hereby waives any
defense of a surety or guarantor or any other obligor on any obligations arising in connection with
or in respect of any of the following and hereby agrees that its obligations hereunder shall not be
discharged or otherwise affected as a result of, any of the following:

               (i) the invalidity or unenforceability of any Secured Document, any of the Indebtedness or any
other collateral security therefor or pledge or guarantee or right of offset with respect thereto
at any time or from time to time held by any Secured Party;

               (ii) any defense, set-off or counterclaim (other than a defense of payment or performance)
which may at any time be available to or be asserted by the Borrower or any other Person against
any Secured Party;

               (iii) the insolvency, bankruptcy arrangement, reorganization, adjustment, composition,
liquidation, disability, dissolution or lack of power of the Borrower or any other Grantor or any
other Person at any time liable for the payment of all or part of the Indebtedness, including any
discharge of, or bar or stay against collecting, the Indebtedness (or any part thereof or interest
therein) in or as a result of such proceeding;

               (iv) any sale, lease, assignment, exchange, conveyance or transfer of any or all of the assets
of the Borrower or any other Grantor, or any changes in the shareholders of the Borrower or any
other Grantor;

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               (v) any change in the corporate existence (including its constitution, laws, rules,
regulations or power), structure or ownership of the Borrower or any other Grantor;

               (vi) the fact that any Collateral or Lien contemplated or intended to be given, created or
granted as security for the repayment of the Indebtedness shall not be properly perfected or
created, or shall prove to be unenforceable or subordinate to any other Lien, it being recognized
and agreed by each of the Grantors that it is not entering into this Agreement in reliance on, or
in contemplation of the benefits of, the validity, enforceability, collectibility or value of any
of the Collateral for the Indebtedness;

               (vii) the absence of any attempt to collect the Indebtedness or any part thereof from any
Grantor;

               (viii) (A) any Secured Party’s election, in any proceeding instituted under chapter 11 of the
Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy Code; (B) any borrowing
or grant of a Lien by the Borrower, as debtor-in-possession, or extension of credit, under Section
364 of the Bankruptcy Code; (C) the disallowance, under Section 502 of the Bankruptcy Code, of all
or any portion of any Secured Party’s claim (or claims) for repayment of the Indebtedness; (D) any
use of cash collateral under Section 363 of the Bankruptcy Code; (E) any agreement or stipulation
as to the provision of adequate protection in any bankruptcy proceeding; (F) the avoidance of any
Lien in favor of the Secured Parties or any of them for any reason; or (G) failure by any Secured
Party to file or enforce a claim against the Borrower or the Borrower’s estate in any bankruptcy or
insolvency case or proceeding; or

               (ix) any other circumstance or act whatsoever, including any action or omission of the type
described in Section 2.04 (with or without notice to or knowledge of the Borrower or such Grantor),
which constitutes, or might be construed to constitute, an equitable or legal discharge of the
Borrower for the Indebtedness, or of such Grantor under the pledge and security grants contained in
this Article II, in bankruptcy or in any other instance.

          (b) When making any demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Grantor, any Secured Party may, but shall be under no obligation to, join or make a
similar demand on or otherwise pursue or exhaust such rights and remedies as it may have against
the Borrower, any other Grantor or any other Person liable on the Indebtedness or against any
collateral security or pledge or guarantee for the Indebtedness or any right of offset with respect
thereto, and any failure by any Secured Party to make any such demand, to pursue such other rights
or remedies or to collect any payments from the Borrower, any other Grantor or any such other
Person or to realize upon any such collateral security or pledge or guarantee or to exercise any
such right of offset, or any release of the Borrower, any other Grantor or any such other Person or
any such collateral security, guarantee or pledge or right of offset, shall not relieve any such
Grantor of any obligation or liability hereunder, and shall not impair or affect the rights and
remedies, whether express, implied or available as a matter of law, of any Secured Party against
any such Grantor. For the purposes hereof “demand” shall include the commencement and continuance
of any legal proceedings.

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     Section 2.07 Reinstatement. The pledge and security grants contained in this Article
II shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or
any part thereof, of any of the Indebtedness is rescinded or must otherwise be restored or returned
by any Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of
the Borrower or any other Grantor, or upon or as a result of the appointment of a receiver,
intervenor or conservator of, or trustee or similar officer for, the Borrower or any other Grantor
or any substantial part of its Property, or otherwise, all as though such payments had not been
made.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     To induce (a) the Administrative Agent and the Lenders to enter into the Credit Agreement, (b)
the Lenders to make their respective extensions of credit to the Borrower thereunder, (c) the
Secured Hedging Providers to enter into Hedging Agreements with EXLP or any of its Restricted
Subsidiaries and (d) the Secured Treasury Management Counterparties to enter into Treasury
Management Agreements with EXLP or any of its Restricted Subsidiaries, each Grantor hereby
represents and warrants to the Administrative Agent and each Secured Party that:

     Section 3.01 Title; No Other Liens. Except for Permitted Liens and the security
interest granted to the Administrative Agent for the ratable benefit of the Secured Parties
pursuant to this Agreement, such Grantor is the record and beneficial owner of its respective items
of the Collateral free and clear of any and all Liens and has the power to transfer each item of
the Collateral in which a Lien is granted by it hereunder, free and clear of any Lien. Except with
respect to Liens permitted by Section 9.02(b), (c), (d), (e) or (g) of the Credit Agreement, no
financing statement or other public notice with respect to all or any part of the Collateral is on
file or of record in any public office, except such as have been filed in favor of the
Administrative Agent, for the ratable benefit of the Secured Parties, pursuant to this Agreement or
the Security Instruments or as are filed to perfect Liens permitted by Section 9.02 of the Credit
Agreement.

     Section 3.02 Perfected First Priority Liens. The security interests granted pursuant
to this Agreement (a) upon the completion of the filings and the other actions specified on
Schedule 3 constitute valid perfected security interests in all of the Collateral in favor
of the Administrative Agent, for the ratable benefit of the Secured Parties, as collateral security
for the Indebtedness, enforceable in accordance with the terms hereof against all creditors of such
Grantor and any Persons purporting to purchase any Collateral from such Grantor and (b) are prior
to all other Liens on the Collateral in existence on the date hereof, except, in each case, for
Liens expressly permitted by the Credit Agreement.

     Section 3.03 Grantor Information. On the date hereof, the correct legal name of such
Grantor, such Grantor’s jurisdiction of organization and organizational number, and the location(s)
of such Grantor’s chief executive office or sole place of business are specified on Schedule
4.

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     Section 3.04 Pledged Securities. The Pledged Securities required to be pledged
hereunder and under the Credit Agreement by such Grantor are listed in Schedule 2. The
shares of Pledged Securities pledged by such Grantor hereunder constitute all of the Equity
Interests of each Issuer that is a Domestic Subsidiary owned by such Grantor and 66% of all of the
Equity Interests of each Issuer (except as otherwise noted on Schedule 2) that is a Foreign
Subsidiary owned by such Grantor. All the shares of the Pledged Securities have been duly and
validly issued and are fully paid and nonassessable, and such Grantor is the record and beneficial
owner of, and has good title to, the Pledged Securities pledged by it hereunder, free of any and
all Liens or options in favor of, or claims of, any other Person, except the security interest
created by this Agreement, and has the power to transfer the Pledged Securities in which a Lien is
granted by it hereunder, free and clear of any other Lien.

     Section 3.05 Instruments and Chattel Paper. Such Grantor has delivered to the
Administrative Agent all Collateral constituting any Instrument or Chattel Paper in excess of
$1,000,000 that is required to be delivered under Section 4.04. No Collateral constituting Chattel
Paper or Instruments contains any statement therein to the effect that such Collateral has been
assigned to an identified party other than the Administrative Agent, and the grant of a security
interest in such Collateral in favor of the Administrative Agent hereunder does not violate the
rights of any other Person as a secured party.

     Section 3.06 Truth of Information; Accounts. All information with respect to the
Collateral set forth in any schedule or certificate at any time heretofore or hereafter furnished
by such Grantor to the Administrative Agent is and will be true and correct in all material
respects as of the date furnished. The place where each Grantor keeps its records concerning the
Accounts, Chattel Paper and Payment Intangibles is 16666 Northchase Drive, Houston, Texas 77060.

     Section 3.07 Governmental Obligors. None of the Account Debtors on a material portion
of such Grantor’s Accounts, Chattel Paper or Payment Intangibles is a Governmental Authority.

ARTICLE IV

COVENANTS

     Each Grantor covenants and agrees with the Administrative Agent and the Secured Parties that,
from and after the date of this Agreement until Payment in Full:

     Section 4.01 Maintenance of Perfected Security Interest; Further Documentation.
Except as set forth in the Credit Agreement, including, without limitation, any merger,
consolidation, liquidation, sale, assignment, transfer or other disposition permitted by Section
9.02(g), 9.06, 9.08 or 9.11 of the Credit Agreement, each Grantor agrees that:

          (a) it shall maintain the security interest created by this Agreement as a perfected security
interest having at least the priority described in Section 3.02 and shall defend such security
interest against the claims and demands of all Persons whomsoever;

          (b) it will furnish to the Administrative Agent and the Lenders from time to time statements
and schedules further identifying and describing the Collateral and such other

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reports in connection with the Collateral as the Administrative Agent may reasonably request,
all in reasonable detail; and

          (c) at any time and from time to time, upon the written request of the Administrative Agent,
and at the sole expense of such Grantor, it will promptly and duly execute and deliver, and have
recorded, such further instruments and documents and take such further actions as the
Administrative Agent may reasonably deem necessary for the purpose of obtaining or preserving the
full benefits of this Agreement and of the rights and powers herein granted, including, without
limitation, the delivery of certificated securities and the filing of any financing or continuation
statements under the UCC (or other similar domestic laws) in effect in any jurisdiction with
respect to the security interests created hereby.

     Section 4.02 Changes in Locations, Name, Etc. Such Grantor recognizes that financing
statements pertaining to the Collateral have been or may be filed where such Grantor is organized.
Without limitation of Section 8.03 of the Credit Agreement or any other covenant herein, such
Grantor will not cause or permit any change in its (a) corporate name, (b) its identity or
corporate structure, (c) its jurisdiction of organization or its organizational identification
number in such jurisdiction of organization or (d) its federal taxpayer identification number,
unless, in each case, such Grantor shall have first (i) notified the Administrative Agent of such
change prior to the effective date of such change, and (ii) taken all action reasonably requested
by the Administrative Agent for the purpose of maintaining the perfection and priority of the
Administrative Agent’s security interests under this Agreement. In any notice furnished pursuant
to this Section 4.02, such Grantor will expressly state in a conspicuous manner that the notice is
required by this Agreement and contains facts that may require additional filings of financing
statements or other notices for the purposes of continuing perfection of the Administrative Agent’s
security interest in the Collateral.

     Section 4.03 Pledged Securities. In the case of each Grantor, such Grantor agrees
that:

          (a) if such Grantor shall become entitled to receive or shall receive any stock certificate
(including, without limitation, any certificate representing a stock dividend or a distribution in
connection with any reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the Pledged Securities of any
Issuer, whether in addition to, in substitution of, as a conversion of, or in exchange for, any
shares of the Pledged Securities, or otherwise in respect thereof, such Grantor shall accept the
same as the agent of the Secured Parties, hold the same in trust for the Secured Parties,
segregated from other Property of such Grantor, and deliver the same forthwith to the
Administrative Agent in the exact form received, duly indorsed by such Grantor to the
Administrative Agent, if required, together with an undated stock power covering such certificate
duly executed in blank by such Grantor and with, if the Administrative Agent so requests, signature
guaranteed, to be held by the Administrative Agent, subject to the terms hereof, as additional
collateral security for the Indebtedness; provided, that the foregoing shall apply to 66% of such
shares or rights in the case of an Issuer that is a Foreign Subsidiary;

          (b) without the prior written consent of the Administrative Agent, such Grantor will not (i)
unless otherwise permitted hereby or under the other Loan Documents, vote to enable, or take any
other action to permit, any Issuer to issue any Equity Interests of any

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nature or to issue any other securities convertible into or granting the right to purchase or
exchange for any Equity Interests of any nature of any Issuer, (ii) sell, assign, transfer,
exchange, or otherwise dispose of, or grant any option with respect to, the Pledged Securities or
Proceeds thereof (except pursuant to a transaction permitted by the Credit Agreement), (iii) except
as set forth in the Credit Agreement, create, incur or permit to exist any Lien or option in favor
of, or any claim of any Person with respect to, any of the Pledged Securities or Proceeds thereof,
or any interest therein, except for the security interests created by this Agreement or (iv) except
as permitted by Section 9.15 of the Credit Agreement, enter into any agreement or undertaking
restricting the right or ability of such Grantor or the Administrative Agent to sell, assign or
transfer any of the Pledged Securities or Proceeds thereof;

          (c) in the case of each Grantor that is an Issuer, such Issuer agrees that (i) it will be
bound by the terms of this Agreement relating to the Pledged Securities issued by it and will
comply with such terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events described in
Section 4.03(a) with respect to the Pledged Securities issued by it and (iii) the terms of Section
5.04(d) and Section 5.05 shall apply to it, mutatis mutandis, with respect to all actions that may
be required of it pursuant to Section 5.04(d) or Section 5.05 with respect to the Pledged
Securities issued by it;

          (d) such Grantor shall furnish to the Administrative Agent such stock powers and other
instruments as may be reasonably required by the Administrative Agent to assure the transferability
of the Pledged Securities when and as often as may be reasonably requested by the Administrative
Agent; provided that a requirement to cause an uncertificated Pledged Security to be certificated
will not be required as long as the Administrative Agent has a first and prior security interest in
such uncertificated Pledged Security;

          (e) the Pledged Securities will at all times constitute not less than 100% of the Equity
Interests of the Issuer thereof owned by any Grantor (or in the case of any Issuer that is a
Foreign Subsidiary, not less than 66% of the Equity Interests of such Issuer (except as otherwise
noted on Schedule 2)). Such Grantor will not permit any Issuer of any of the Pledged
Securities to issue any new shares of any class of Equity Interests of such Issuer unless such
shares are pledged pursuant to this Agreement; and

          (f) notwithstanding any contrary provision contained in this Agreement, with respect to
Issuers that are Foreign Subsidiaries, the Grantors are required to pledge 66% of the Equity
Interests of such Issuers (except as otherwise noted on Schedule 2) and to deliver the
applicable stock certificates and stock powers duly executed in blank for all certificated Equity
Interests to the Administrative Agent but shall not be required to take any additional actions to
perfect the security interest of the Secured Parties in such Pledged Securities.

     Section 4.04 Instruments and Tangible Chattel Paper. If any amount payable under or
in connection with any of the Collateral shall be or become evidenced by any Instrument or Tangible
Chattel Paper having a value in excess of $1,000,000, such Instrument or Tangible Chattel Paper
shall be immediately delivered to the Administrative Agent, duly endorsed in a manner satisfactory
to the Administrative Agent, to be held as Collateral pursuant to this Agreement.

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     Section 4.05 Article 8 of the UCC. To the extent that any Grantor has opted into
Article 8 of the UCC, such Grantor may not opt out of Article 8 of the UCC without the prior
written consent of the Administrative Agent.

ARTICLE V

REMEDIAL PROVISIONS

     Section 5.01 UCC and Other Remedies.

          (a) Upon the occurrence and during the continuance of an Event of Default, the Administrative
Agent, on behalf of the Secured Parties, may exercise, in addition to all other rights and remedies
granted to them in this Agreement, the other Loan Documents and in any other instrument or
agreement securing, evidencing or relating to the Indebtedness, all rights and remedies of a
secured party under the UCC or any other applicable law or otherwise available at law or equity.
Without limiting the generality of the foregoing, the Administrative Agent, without demand of
performance or other demand, presentment, protest, advertisement or notice of any kind (except any
notice required by law referred to below) to or upon any Grantor or any other Person (all and each
of which demands, defenses, advertisements and notices are hereby waived), may in such
circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part
thereof, and/or may forthwith sell, lease, assign, give option or options to purchase, or otherwise
dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing),
in one or more parcels at public or private sale or sales, at any exchange, broker’s board or
office of any Secured Party or elsewhere upon such commercially reasonable terms and conditions as
it may deem advisable and at such commercially reasonable prices as it may deem best, for cash or
on credit or for future delivery without assumption of any credit risk. Any Secured Party shall
have the right upon any such public sale or sales, and, to the extent permitted by law, upon any
such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of
any right or equity of redemption in any Grantor, which right or equity is hereby waived and
released. If applicable to any particular item of Collateral, each Grantor further agrees, at the
Administrative Agent’s request following an acceleration of the Indebtedness under Section 10.02(a)
of the Credit Agreement, to assemble the Collateral and make it available to the Administrative
Agent at places which the Administrative Agent shall reasonably select, whether at such Grantor’s
premises or elsewhere, unless prohibited by agreements with unaffiliated third parties. Any such
sale or transfer by the Administrative Agent either to itself or to any other Person shall, to the
fullest extent permitted under applicable law, be absolutely free from any claim of right by
Grantor, including any equity or right of redemption, stay or appraisal which Grantor has or may
have under any rule of law, regulation or statute now existing or hereafter adopted (and such
Grantor hereby waives any rights it may have in respect thereof). Upon any such sale or transfer,
the Administrative Agent shall have the right to deliver, assign and transfer to the purchaser or
transferee thereof the Collateral so sold or transferred. The Administrative Agent shall apply the
net proceeds of any action taken by it pursuant to this Section 5.01, after deducting all
reasonable costs and expenses of every kind incurred in connection therewith or incidental to the
care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights
of the Administrative Agent and the Secured Parties hereunder, including, without limitation,
reasonable attorneys’ fees and disbursements, to the payment in whole or in part of the
Indebtedness, in accordance with the Credit Agreement, and only after such application and after
the payment by the Administrative Agent of any other

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amount required by any provision of law, including, without limitation, Section 9.615 of the
UCC, need the Administrative Agent account for the surplus, if any, to any Grantor. To the extent
permitted by applicable law, each Grantor waives all claims, damages and demands it may acquire
against the Administrative Agent or any Secured Party arising out of the exercise by them of any
rights hereunder. If any notice of a proposed sale or other disposition of Collateral shall be
required by law, such notice shall be deemed reasonable and proper if given at least 10 days before
such sale or other disposition.

          (b) In the event that the Administrative Agent elects not to sell the Collateral, the
Administrative Agent retains its rights to dispose of or utilize the Collateral or any part or
parts thereof in any manner authorized or permitted by law or in equity, and to apply the proceeds
of the same towards payment of the Indebtedness. Each and every method of disposition of the
Collateral described in this Agreement shall constitute disposition in a commercially reasonable
manner.

          (c) The Administrative Agent may appoint any Person as agent to perform any act or acts
necessary or incident to any sale or transfer of the Collateral.

     Section 5.02 Collections on Accounts, Etc. The Administrative Agent hereby authorizes
each Grantor to collect upon the Collateral that is represented by Accounts, Instruments, Chattel
Paper and Payment Intangibles subject to the Administrative Agent’s direction and control, and the
Administrative Agent may curtail or terminate said authority at any time after the occurrence and
during the continuance of an Event of Default. Upon the request of the Administrative Agent at any
time after the occurrence and during the continuance of an Event of Default, each Grantor shall
notify the Account Debtors that the applicable Accounts, Chattel Paper and Payment Intangibles have
been assigned to the Administrative Agent for the ratable benefit of the Secured Parties and that
payments in respect thereof shall be made directly to the Administrative Agent. After the
occurrence and during the continuance of an Event of Default, the Administrative Agent may in its
own name or in the name of others communicate with the Account Debtors to verify with them to its
satisfaction the existence, amount and terms of any such Accounts, Chattel Paper or Payment
Intangibles. Anything herein to the contrary notwithstanding, each Grantor shall remain liable
under each of its Accounts to observe and perform all the conditions and obligations to be observed
and performed by it thereunder, all in accordance with the terms of any agreement giving rise
thereto. Neither the Administrative Agent nor any Lender shall have any obligation or liability
under any Account (or any agreement giving rise thereto) by reason of or arising out of this
Agreement or the receipt by the Administrative Agent or any Lender of any payment relating thereto,
nor shall the Administrative Agent or any Lender be obligated in any manner to perform any of the
obligations of any Grantor under or pursuant to any Account (or any agreement giving rise thereto)
to make any payment, to make any inquiry as to the nature or the sufficiency of any payment
received by it or as to the sufficiency of any performance by any party thereunder, to present or
file any claim, to take any action to enforce any performance or to collect the payment of any
amounts which may have been assigned to it or to which it may be entitled at any time or times.

     Section 5.03 Proceeds. If required by the Administrative Agent at any time after the
occurrence and during the continuance of an Event of Default, any payments of Collateral

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composed of Accounts, Instruments, Chattel Paper and Payment Intangibles, when collected or
received by each Grantor, and any other cash or non-cash Proceeds received by each Grantor upon the
sale or other disposition of any Collateral, shall be forthwith (and, in any event, within two
Business Days) deposited by such Grantor in the exact form received, duly indorsed by such Grantor
to the Administrative Agent if required, in a special collateral account maintained by the
Administrative Agent, subject to withdrawal by the Administrative Agent for the ratable benefit of
the Secured Parties only, as hereinafter provided, and, until so turned over, shall be held by such
Grantor in trust for the Administrative Agent for the ratable benefit of the Secured Parties,
segregated from other funds of such Grantor. Each deposit of any such Proceeds shall be
accompanied by a report identifying in reasonable detail the nature and source of the payments
included in the deposit. All Proceeds (including, without limitation, Proceeds constituting
collections of Accounts, Chattel Paper, Instruments) while held by the Administrative Agent (or by
any Grantor in trust for the Administrative Agent for the ratable benefit of the Secured Parties)
shall continue to be collateral security for all of the Indebtedness and shall not constitute
payment thereof until applied as hereinafter provided. At such intervals as may be agreed upon by
each Grantor and the Administrative Agent, or, if an Event of Default shall have occurred and be
continuing, at any time at the Administrative Agent’s election, the Administrative Agent shall
apply all or any part of the funds on deposit in said special collateral account on account of the
Indebtedness in such order as the Administrative Agent may elect, and any part of such funds which
the Administrative Agent elects not so to apply and deems not required as collateral security for
the Indebtedness shall be paid over from time to time by the Administrative Agent to each Grantor
or to whomsoever may be lawfully entitled to receive the same.

     Section 5.04 Pledged Securities.

          (a) Unless an Event of Default shall have occurred and be continuing and the Administrative
Agent shall have given notice to the relevant Grantor of the Administrative Agent’s intent to
exercise its corresponding rights pursuant to Section 5.04(b), each Grantor shall be permitted to
receive all cash dividends paid in respect of the Pledged Securities paid in the normal course of
business of the relevant Issuer, and to exercise all voting, consent and corporate rights with
respect to the Pledged Securities; provided, however, that no vote shall be cast, consent given or
right exercised or other action taken by such Grantor that would impair the Collateral or result in
any violation of any provision of the Credit Agreement, this Agreement or any other Loan Document
or, without the prior consent of the Administrative Agent, enable or permit any Issuer of Pledged
Securities to issue any Equity Interests or to issue any other securities convertible into or
granting the right to purchase or exchange for any Equity Interests of any Issuer of Pledged
Securities other than as permitted by the Credit Agreement.

          (b) Upon the occurrence and during the continuance of an Event of Default, upon notice by the
Administrative Agent of its intent to exercise such rights to the relevant Grantor or Grantors, (i)
the Administrative Agent shall have the right to receive any and all cash dividends, payments,
Property or other Proceeds paid in respect of the Pledged Securities and make application thereof
to the Indebtedness in accordance with the Credit Agreement, (ii) any or all of the Pledged
Securities shall be registered in the name of the Administrative Agent or its nominee, and (iii)
the Administrative Agent or its nominee may exercise (A) all voting, consent, corporate and other
rights pertaining to such Pledged Securities at any meeting of shareholders (or other equivalent
body) of the relevant Issuer or Issuers or otherwise and (B) any and all rights

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of conversion, exchange and subscription and any other rights, privileges or options
pertaining to such Pledged Securities as if it were the absolute owner thereof (including, without
limitation, the right to exchange at its discretion any and all of the Pledged Securities upon the
merger, consolidation, reorganization, recapitalization or other fundamental change in the
organizational structure of any Issuer, or upon the exercise by any Grantor or the Administrative
Agent of any right, privilege or option pertaining to such Pledged Securities, and in connection
therewith, the right to deposit and deliver any and all of the Pledged Securities with any
committee, depositary, transfer agent, registrar or other designated agency upon such terms and
conditions as the Administrative Agent may determine), all without liability except to account for
Property actually received by it, but the Administrative Agent shall have no duty to any Grantor to
exercise any such right, privilege or option and shall not be responsible for any failure to do so
or delay in so doing.

          (c) In order to permit the Administrative Agent to exercise the voting and other consensual
rights that it may be entitled to exercise pursuant hereto and to receive all dividends and other
distributions that it may be entitled to receive hereunder, (i) each Grantor shall promptly execute
and deliver (or cause to be executed and delivered) to the Administrative Agent all such proxies,
dividend payment orders and other instruments as the Administrative Agent may from time to time
reasonably request and (ii) without limiting the effect of clause (i) above, such Grantor hereby
grants to the Administrative Agent an irrevocable proxy to vote all or any part of the Pledged
Securities and to exercise all other rights, powers, privileges and remedies to which a holder of
the Pledged Securities would be entitled (including giving or withholding written consents of
shareholders calling special meetings of shareholders and voting at such meetings), which proxy
shall be effective, automatically and without the necessity of any action (including any transfer
of any Pledged Securities on the record books of the Issuer thereof) by any other Person (including
the Issuer of such Pledged Securities or any officer or agent thereof) upon the occurrence and
during the continuance of an Event of Default and which proxy shall only terminate upon the earlier
of (x) the waiver of such Event of Default and (y) Payment in Full.

          (d) Each Grantor hereby authorizes and instructs each Issuer of any Pledged Securities pledged
by such Grantor hereunder to (i) comply with any instruction received by it from the Administrative
Agent in writing that (A) states that an Event of Default has occurred and is continuing and (B) is
otherwise in accordance with the terms of this Agreement, without any other or further instructions
from such Grantor, and each Grantor agrees that each Issuer shall be fully protected in so
complying, and (ii) unless otherwise expressly permitted hereby, pay any dividends or other
payments with respect to the Pledged Securities directly to the Administrative Agent.

          (e) Upon the occurrence and during the continuance of an Event of Default, if the Issuer of
any Pledged Securities is the subject of bankruptcy, insolvency, receivership, custodianship or
other proceedings under the supervision of any Governmental Authority, then all rights of the
Grantor in respect thereof to exercise the voting and other consensual rights which such Grantor
would otherwise be entitled to exercise with respect to the Pledged Securities issued by such
Issuer shall cease, and all such rights shall thereupon become vested in the Administrative Agent
who shall thereupon have the sole right to exercise such voting and other consensual rights, but
the Administrative Agent shall have no duty to exercise any such

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voting or other consensual rights and shall not be responsible for any failure to do so or
delay in so doing.

     Section 5.05 Private Sales of Pledged Securities.

          (a) Each Grantor recognizes that the Administrative Agent may be unable to effect a public
sale of any or all the Pledged Securities, by reason of certain prohibitions contained in the
Securities Act and applicable state securities laws or otherwise or may determine that a public
sale is impracticable or not commercially reasonable and, accordingly, may resort to one or more
private sales thereof to a restricted group of purchasers which will be obliged to agree, among
other things, to acquire such securities for their own account for investment and not with a view
to the distribution or resale thereof. Each Grantor acknowledges and agrees that any such private
sale may result in prices and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been
made in a commercially reasonable manner. The Administrative Agent shall be under no obligation to
delay a sale of any of the Pledged Securities for the period of time necessary to permit the Issuer
thereof to register such securities for public sale under the Securities Act, or under applicable
state securities laws, even if such Issuer would agree to do so.

          (b) Each Grantor agrees to use its best commercially reasonable efforts to do or cause to be
done all such other acts as may reasonably be necessary to make such sale or sales of all or any
portion of the Pledged Securities pursuant to this Section 5.05 valid and binding and in compliance
with any and all other applicable Governmental Requirements. Each Grantor further agrees that a
breach of any of the covenants contained in this Section 5.05 will cause irreparable injury to the
Secured Parties, that the Secured Parties have no adequate remedy at law in respect of such breach
and, as a consequence, that each and every covenant contained in this Section 5.05 shall be
specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to
assert any defenses against an action for specific performance of such covenants except for a
defense that no Event of Default has occurred or is continuing under the Credit Agreement.

     Section 5.06 Deficiency. Each Grantor shall remain liable for any deficiency if the
proceeds of any sale or other disposition of the Collateral are insufficient to pay its obligations
and the fees and disbursements of any attorneys employed by the Administrative Agent or any Secured
Party to collect such deficiency.

     Section 5.07 Non-Judicial Enforcement. The Administrative Agent may enforce its
rights hereunder without prior judicial process or judicial hearing, and to the extent permitted by
law, each Grantor expressly waives any and all legal rights which might otherwise require the
Administrative Agent to enforce its rights by judicial process.

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ARTICLE VI

THE ADMINISTRATIVE AGENT

     Section 6.01 Administrative Agent’s Appointment as Attorney-in-Fact, Etc.

          (a) Anything in this Section 6.01(a) to the contrary notwithstanding, the Administrative Agent
agrees that it will not exercise any rights under the power of attorney provided for in this
Section 6.01(a) unless an Event of Default shall have occurred and be continuing. Each Grantor
hereby irrevocably constitutes and appoints the Administrative Agent and any officer or agent
thereof, with full power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of such Grantor and in the name of such
Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to take
any and all reasonably appropriate action and to execute any and all documents and instruments
which may be reasonably necessary or desirable to accomplish the purposes of this Agreement, and,
without limiting the generality of the foregoing, each Grantor hereby gives the Administrative
Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor,
to do any or all of the following:

               (i) unless being disputed under Section 8.03(a) of the Credit Agreement, pay or discharge
Taxes and Liens levied or placed on or threatened against the Collateral, effect any repairs or any
insurance called for by the terms of this Agreement or any other Loan Document and pay all or any
part of the premiums therefor and the costs thereof;

               (ii) execute, in connection with any sale provided for in Section 5.01 or Section 5.05, any
endorsements, assignments or other instruments of conveyance or transfer with respect to the
Collateral; and

               (iii) (A) direct any party liable for any payment under any of the Collateral to make payment
of any and all moneys due or to become due thereunder directly to the Administrative Agent or as
the Administrative Agent shall direct; (B) ask or demand for, collect, and receive payment of and
receipt for, any and all moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Collateral; (C) in the name of such Grantor or its own name, or
otherwise, take possession of and indorse and collect any check, draft, note, acceptance or other
instrument for the payment of moneys due with respect to any Collateral and commence and prosecute
any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to
collect the Collateral or any portion thereof and to enforce any other right in respect of any
Collateral; (D) defend any suit, action or proceeding brought against such Grantor with respect to
any Collateral; (E) settle, compromise or adjust any such suit, action or proceeding and, in
connection therewith, give such discharges or releases as the Administrative Agent may deem
appropriate; and (F) generally, sell, transfer, pledge and make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though the Administrative
Agent were the absolute owner thereof for all purposes, and do, at the Administrative Agent’s
option and such Grantor’s expense, at any time, or from time to time, all acts and things which the
Administrative Agent deems necessary to protect, preserve or realize upon the Collateral and the
Administrative Agent’s and the Secured Parties’ security interests therein and to effect the intent
of this Agreement, all as fully and effectively as such Grantor might do.

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          (b) If any Grantor fails to perform or comply with any of its agreements contained herein
within the applicable grace periods, the Administrative Agent, at its option, but without any
obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such
agreement.

          (c) The reasonable expenses of the Administrative Agent incurred in connection with actions
undertaken as provided in this Section 6.01, together with interest thereon at a rate per annum
equal to the Post-Default Rate, but in no event to exceed the Highest Lawful Rate, from the date of
payment by the Administrative Agent to the date reimbursed by the relevant Grantor, shall be
payable by such Grantor to the Administrative Agent on demand.

          (d) All powers, authorizations and agencies contained in this Agreement are coupled with an
interest and are irrevocable until this Agreement is terminated and the security interests created
hereby are released.

     Section 6.02 Duty of Administrative Agent. The Administrative Agent’s sole duty with
respect to the custody, safekeeping and physical preservation of the Collateral in its possession,
under Section 9.207 of the UCC or otherwise, shall be to deal with it in the same manner as the
Administrative Agent deals with similar Property for its own account and shall be deemed to have
exercised reasonable care in the custody and preservation of the Collateral in its possession if
the Collateral is accorded treatment substantially equal to that which comparable secured parties
accord comparable collateral. To the fullest extent permitted under applicable law, neither the
Administrative Agent, any Secured Party nor any of their respective officers, directors, employees
or agents shall be liable for failure to demand, collect or realize upon any of the Collateral or
for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof. The powers conferred on the
Administrative Agent and the Secured Parties hereunder are solely to protect the Administrative
Agent’s and the Secured Parties’ interests in the Collateral and shall not impose any duty upon the
Administrative Agent or any Secured Party to exercise any such powers. The Administrative Agent
and the Secured Parties shall be accountable only for amounts that they actually receive as a
result of the exercise of such powers, and neither they nor any of their officers, directors,
employees or agents shall be responsible to any Grantor for any act or failure to act hereunder,
except for their own gross negligence, willful misconduct or bad faith. To the fullest extent
permitted by applicable law, the Administrative Agent shall be under no duty whatsoever to make or
give any presentment, notice of dishonor, protest, demand for performance, notice of
non-performance, notice of intent to accelerate, notice of acceleration, or other notice or demand
in connection with any Collateral or the Indebtedness, or to take any steps necessary to preserve
any rights against any Grantor or other Person or ascertaining or taking action with respect to
calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral,
whether or not it has or is deemed to have knowledge of such matters. Each Grantor, to the extent
permitted by applicable law, waives any right of marshaling in respect of any and all Collateral,
and waives any right to require the Administrative Agent or any Secured Party to proceed against
any Grantor or other Person, exhaust any Collateral or enforce any other remedy which the
Administrative Agent or any Secured Party now has or may hereafter have against each Grantor, any
Grantor or other Person.

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     Section 6.03 Filing of Financing Statements. Pursuant to the UCC and any other
applicable law, each Grantor authorizes the Administrative Agent to file or record financing
statements and other filing or recording documents or instruments with respect to the Collateral in
such form and in such offices as the Administrative Agent reasonably determines appropriate to
perfect the security interests of the Administrative Agent under this Agreement. A photographic or
other reproduction of this Agreement shall be sufficient as a financing statement or other filing
or recording document or instrument for filing or recording in any jurisdiction.

     Section 6.04 Authority of Administrative Agent. Each Grantor acknowledges that the
rights and responsibilities of the Administrative Agent under this Agreement with respect to any
action taken by the Administrative Agent or the exercise or non-exercise by the Administrative
Agent of any option, voting right, request, judgment or other right or remedy provided for herein
or resulting or arising out of this Agreement shall, as between the Administrative Agent and the
Secured Parties, be governed by the Credit Agreement and by such other agreements with respect
thereto as may exist from time to time among them, but, as between the Administrative Agent and the
Grantors, the Administrative Agent shall be conclusively presumed to be acting as agent for the
Secured Parties with full and valid authority so to act or refrain from acting, and no Grantor
shall be under any obligation, or entitlement, to make any inquiry respecting such authority.

ARTICLE VII

SUBORDINATION OF INDEBTEDNESS

     Section 7.01 Subordination of All Grantor Claims. As used herein, the term
“Grantor Claims” shall mean all debts and obligations of the Borrower or any other Grantor
to any other Grantor, whether such debts and obligations now exist or are hereafter incurred or
arise, or whether the obligation of the debtor thereon be direct, contingent, primary, secondary,
several, joint and several, or otherwise, and irrespective of whether such debts or obligations be
evidenced by note, contract, open account, or otherwise, and irrespective of the Person or Persons
in whose favor such debts or obligations may, at their inception, have been, or may hereafter be
created, or the manner in which they have been or may hereafter be acquired. Except for payments
permitted by the Credit Agreement, after and during the continuation of an Event of Default, no
Grantor shall receive or collect, directly or indirectly, from any obligor in respect thereof any
amount upon the Grantor Claims.

     Section 7.02 Claims in Bankruptcy. In the event of receivership, bankruptcy,
reorganization, arrangement, debtor’s relief, or other insolvency proceedings involving any
Grantor, the Administrative Agent on behalf of the Secured Parties shall have the right to prove
their claim in any proceeding, so as to establish their rights hereunder and receive directly from
the receiver, trustee or other court custodian, dividends and payments which would otherwise be
payable upon Grantor Claims. Each Grantor hereby assigns such dividends and payments to the
Administrative Agent for the benefit of the Secured Parties for application against the
Indebtedness as provided under the Credit Agreement. Should any Secured Party receive, for
application upon the Indebtedness, any such dividend or payment which is otherwise payable to any
Grantor, and which, as between such Grantors, shall constitute a credit upon the Grantor Claims,
then upon Payment in Full, the intended recipient shall become subrogated to the rights of such
Secured Party to the extent that such dividend or payment has contributed toward the

19

 

liquidation of the Indebtedness, and such subrogation shall be with respect to that proportion
of the Indebtedness which would have been unpaid if such Secured Party had not received such
dividend or payment.

     Section 7.03 Payments Held in Trust. In the event that notwithstanding Section 7.01
and Section 7.02, any Grantor should receive any funds, payments, claims or distributions which are
prohibited by such Sections, then it agrees: (a) to hold in trust for the Administrative Agent and
the Secured Parties an amount equal to the amount of all funds, payments, claims or distributions
so received, and (b) that it shall have absolutely no dominion over the amount of such funds,
payments, claims or distributions except to pay them promptly to the Administrative Agent, for the
benefit of the Secured Parties; and each Grantor covenants promptly to pay the same to the
Administrative Agent.

     Section 7.04 Liens Subordinate. Each Grantor agrees that, until Payment in Full, any
Liens securing payment of the Grantor Claims shall be and remain inferior and subordinate to any
Liens securing payment of the Indebtedness, regardless of whether such encumbrances in favor of
such Grantor, the Administrative Agent or any Secured Party presently exist or are hereafter
created or attach. Without the prior written consent of the Administrative Agent, no Grantor,
during the period in which any of the Indebtedness is outstanding or the Aggregate Commitments are
in effect, shall (a) exercise or enforce any creditor’s right it may have against any debtor in
respect of the Grantor Claims, or (b) foreclose, repossess, sequester or otherwise take steps or
institute any action or proceeding (judicial or otherwise, including without limitation the
commencement of or joinder in any liquidation, bankruptcy, rearrangement, debtor’s relief or
insolvency proceeding) to enforce any Lien held by it.

     Section 7.05 Notation of Records. Upon the request of the Administrative Agent, all
promissory notes and all accounts receivable ledgers or other evidence of the Grantor Claims
accepted by or held by any Grantor shall contain a specific written notice thereon that the
indebtedness evidenced thereby is subordinated under the terms of this Agreement.

ARTICLE VIII

MISCELLANEOUS

     Section 8.01 Waiver. No failure on the part of the Administrative Agent or any
Secured Party to exercise and no delay in exercising, and no course of dealing with respect to, any
right, power, privilege or remedy or any abandonment or discontinuance of steps to enforce such
right, power, privilege or remedy under this Agreement or any other Loan Document shall operate as
a waiver thereof, nor shall any single or partial exercise of any right, power, privilege or remedy
under this Agreement or any other Loan Document preclude or be construed as a waiver of any other
or further exercise thereof or the exercise of any other right, power, privilege or remedy. The
remedies provided herein are cumulative and not exclusive of any remedies provided by law or
equity.

     Section 8.02 Notices. All notices and other communications provided for herein shall
be given in the manner and subject to the terms of Section 12.01 of the Credit Agreement; provided
that any such notice, request or demand to or upon any Grantor shall be addressed to such Grantor
at its notice address set forth on Schedule 1.

20

 

     Section 8.03 Amendments in Writing. None of the terms or provisions of this Agreement
may be waived, amended, supplemented or otherwise modified except in accordance with Section 12.02
of the Credit Agreement.

     Section 8.04 Successors and Assigns. The provisions of this Agreement shall be
binding upon the Grantors and their successors and permitted assigns and shall inure to the benefit
of the Administrative Agent and the Secured Parties and their respective successors and permitted
assigns; provided that no Grantor may assign, transfer or delegate any of its rights or obligations
under this Agreement without the prior written consent of the Administrative Agent and the Lenders
unless otherwise permitted by the terms of the Credit Agreement or this Agreement, and any such
purported assignment, transfer or delegation shall be null and void.

     Section 8.05 Survival; Revival; Reinstatement.

          (a) All covenants, agreements, representations and warranties made by any Grantor herein and
in the certificates or other instruments delivered in connection with or pursuant to this Agreement
or any other Loan Document to which it is a party shall be considered to have been relied upon by
the Administrative Agent, the other Agents, the Issuing Banks, the Lenders and the other Secured
Parties and shall survive the execution and delivery of this Agreement and the making of any Loans
and issuance of any Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the Administrative Agent, the other Agents, the Issuing
Banks, any Lender or any other Secured Party may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended under the Credit Agreement,
and shall continue in full force and effect until Payment in Full has occurred.

          (b) To the extent that any payments on the Indebtedness or proceeds of any Collateral are
subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be
repaid to a trustee, debtor in possession, receiver or other Person under any bankruptcy law,
common law or equitable cause, then to such extent, the Indebtedness so satisfied shall be revived
and continue as if such payment or proceeds had not been received and the Administrative Agent’s
and the Secured Parties’ Liens, security interests, rights, powers and remedies under this
Agreement and each other Loan Document shall continue in full force and effect. In such event,
each Loan Document shall be automatically reinstated and the Grantors shall take such action as may
be reasonably requested by the Administrative Agent and the Secured Parties to effect such
reinstatement.

     Section 8.06 Counterparts; Integration; Effectiveness; Conflicts.

          (a) This Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute one and the same instrument.

          (b) THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS EMBODY THE ENTIRE AGREEMENT AND UNDERSTANDING
AMONG THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND SUPERSEDE ANY AND ALL
PREVIOUS AGREEMENTS AND UNDERSTANDINGS,

21

 

ORAL OR WRITTEN, RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF. THIS AGREEMENT AND THE
LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

          (c) 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
which, when taken together, bear the signatures of each of the other parties hereto, and thereafter
shall be binding upon and inure to the benefit of the parties hereto, the Secured Parties and their
respective successors and permitted assigns. Delivery of an executed counterpart of a signature
page of this Agreement by facsimile or other electronic transmission shall be effective as delivery
of a manually executed counterpart of this Agreement.

          (d) In the event of a conflict between the provisions hereof and the provisions of the Credit
Agreement, the provisions of the Credit Agreement shall control.

     Section 8.07 Severability. Any provision of this Agreement or any other Loan Document
held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability without affecting the
validity, legality and enforceability of the remaining provisions hereof or thereof; and the
invalidity of a particular provision in a particular jurisdiction shall not invalidate such
provision in any other jurisdiction.

     Section 8.08 Governing Law; Submission to Jurisdiction.

          (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF TEXAS.

          (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
SHALL BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS SITTING IN HARRIS COUNTY OR OF THE UNITED
STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF TEXAS, AND, BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, EACH PARTY HERETO HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS.
EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE
JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE ANY PARTY
HERETO FROM OBTAINING JURISDICTION OVER ANOTHER PARTY HERETO IN ANY COURT OTHERWISE HAVING
JURISDICTION.

22

 

          (c) EACH PARTY HERETO IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY GRANTOR AT ITS ADDRESS SET FORTH ON
SCHEDULE 1 HERETO OR TO THE ADMINISTRATIVE AGENT AT ITS ADDRESS SET FORTH IN THE CREDIT
AGREEMENT OR, IN EACH CASE, AS UPDATED FROM TIME TO TIME, SUCH SERVICE TO BECOME EFFECTIVE THIRTY
(30) DAYS AFTER SUCH MAILING.

          (d) NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY OTHER
PARTY HERETO IN ANY OTHER JURISDICTION.

          (e) EACH PARTY HERETO HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN; (ii) IRREVOCABLY WAIVES, TO THE MAXIMUM
EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY
SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO,
ACTUAL DAMAGES; (iii) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OF THE ADMINISTRATIVE
AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH
PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS; AND (iv)
ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND
THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS CONTAINED IN THIS SECTION 8.08.

     Section 8.09 Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

     Section 8.10 Acknowledgments. Each Grantor hereby acknowledges that:

          (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents to which it is a party;

          (b) neither the Administrative Agent nor any Secured Party has any fiduciary relationship with
or duty to any Grantor arising out of or in connection with this Agreement or any of the other Loan
Documents, and the relationship between the Grantors, on the one hand, and the Administrative Agent
and Secured Parties, on the other hand, in connection herewith or therewith is solely that of
debtor and creditor;

23

 

          (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Secured Parties or among the Grantors and
the Secured Parties; and

          (d) each of the parties hereto specifically agrees that it has a duty to read this Agreement
and the other Loan Documents and agrees that it is charged with notice and knowledge of the terms
of this Agreement and the other Loan Documents; that it has in fact read this Agreement and the
other Loan Documents and is fully informed and has full notice and knowledge of the terms,
conditions and effects thereof; that it has been represented by independent legal counsel of its
choice throughout the negotiations preceding its execution of this Agreement and the other Loan
Documents; and has received the advice of its attorney in entering into this Agreement and the
other Loan Documents; and that it recognizes that certain of the terms of this Agreement and the
other Loan Documents result in one party assuming the liability inherent in some aspects of the
transaction and relieving the other party of its responsibility for such liability. EACH PARTY
HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY
EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ON THE BASIS THAT THE PARTY
HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.”

     Section 8.11 Additional Equity Interests. Each Grantor that is required to pledge
Equity Interests of its Subsidiaries shall execute and deliver a Pledged Securities Supplement in
the form of Annex I hereto, if such Equity Interests have not been previously pledged
pursuant to this Agreement.

     Section 8.12 Additional Grantors. Upon the execution and delivery by any Person of an
Additional Grantor Supplement in substantially the form of Annex II hereto: (i) such Person
shall become and be a Grantor hereunder, and each reference in this Agreement to a “Grantor” shall
also mean and be a reference to such Person, and each reference in any other Loan Document to a
“Grantor” shall also mean and be a reference to such Person; and (ii) each reference herein to
“this Agreement,” “hereunder,” “hereof” or words of like import referring to this Agreement, and
each reference in any other Loan Document to the “Collateral Agreement,” “thereunder,” “thereof” or
words of like import referring to this Agreement, shall mean and be a reference to this Agreement
as supplemented by such Additional Grantor Supplement.

     Section 8.13 Releases.

          (a) Full Release. The grant of a security interest in the Collateral hereunder and
all of the rights, powers and remedies in connection herewith shall remain in full force and effect
until the Administrative Agent has (i) delivered all Collateral in its possession to the Grantors
and (ii) executed a written release or termination statement and reassigned to the Grantors,
without recourse or warranty, any remaining Collateral and all rights conveyed hereby. Upon
satisfaction of the conditions set forth in Section 8.07(c) of the Credit Agreement or upon Payment
in Full, the Administrative Agent, at the written request and expense of the Borrower, will
promptly release, reassign and transfer the Collateral to the Grantors and declare this Agreement
to be of no further force or effect.

24

 

          (b) Partial Release. Notwithstanding anything contained herein to the contrary, the
Grantors are authorized to release any Collateral that is sold, leased, assigned, exchanged,
conveyed, transferred or otherwise disposed of in compliance with Sections 9.02(g), 9.06, 9.08 and
9.11 of the Credit Agreement, at which point the liens and security interests shall terminate with
respect to such Collateral and this Agreement shall have no further force or effect with respect to
such released Collateral; provided that so long as the lien in favor of the Administrative Agent
continues in the proceeds of such sale, lease, assignment, exchange, conveyance, transfer or other
disposal of such Collateral, or to the extent such Collateral is sold, leased, assigned, exchanged,
conveyed, transferred or otherwise disposed of to the Borrower or any Guarantor, such lien
continues in such Collateral.

          (c) Retention in Satisfaction. Except as may be expressly applicable pursuant to
Section 9.620 of the UCC, no action taken or omission to act by the Administrative Agent or the
Secured Parties hereunder, including, without limitation, any exercise of voting or consensual
rights or any other action taken or inaction, shall be deemed to constitute a retention of the
Collateral in satisfaction of the Indebtedness or otherwise to be in full satisfaction of the
Indebtedness, and the Indebtedness shall remain in full force and effect, until the Administrative
Agent and the Secured Parties shall have applied payments (including, without limitation,
collections from Collateral) towards the Indebtedness in the full amount then outstanding or until
such subsequent time as is provided in Section 8.13(a).

     Section 8.14 Acceptance. Each Grantor hereby expressly waives notice of acceptance of
this Agreement, acceptance on the part of the Administrative Agent and the Secured Parties being
conclusively presumed by their request for this Agreement and delivery of the same to the
Administrative Agent.

[Signatures Begin Next Page]

25

 

     IN WITNESS WHEREOF, each of the undersigned has caused this Amended and Restated Collateral
Agreement to be duly executed and delivered as of the date first above written.

	  	  	 	 	 
	GRANTORS:  	

 EXLP OPERATING LLC

 	 
	 	By:  	/s/
Michael Aaronson	 
	 	 	Michael Aaronson 	 
	 	 	Vice President 	 
	 
	 	EXTERRAN PARTNERS, L.P.

By:   EXTERRAN GENERAL PARTNER, L.P.,

         its general partner

 	 
	 	 	 
	 	By:   EXTERRAN GP LLC,

         its general partner

 	 
	 
	 	By:  	/s/
Michael Aaronson	 
	 	 	Michael Aaronson 	 
	 	 	Vice President and Chief Financial Officer 	 
	 
	 	EXLP LEASING LLC

 	 
	 	By:  	/s/
Michael Aaronson	 
	 	 	Michael Aaronson 	 
	 	 	Vice President 	 

Signature Page

Amended and Restated Collateral Agreement

 

 

	 	 	 	 	 

Acknowledged and Agreed to

as of the date hereof by:

	 	 	 	 	 
	ADMINISTRATIVE
AGENT: 	WELLS FARGO BANK, NATIONAL ASSOCIATION

 

 	 
	 	By:  	/s/
Donald W. Herrick, Jr.	 
	 	 	Donald W. Herrick, Jr. 	 
	 	 	Director 	 
	 

Signature Page

Amended and Restated Collateral Agreement

 

 

Annex I

FORM OF PLEDGED SECURITIES SUPPLEMENT

     SUPPLEMENT, dated as of [           ], 201[    ], made by [            ], a [            ] (the “Grantor”), in favor of
Wells Fargo Bank, National Association as administrative agent (in such capacity, the
“Administrative Agent”) for the financial institutions (the “Lenders”) parties to
the Credit Agreement referred to below. All capitalized terms not defined herein shall have the
meanings ascribed to them in such Credit Agreement or the Collateral Agreement referred to below.

WITNESSETH:

     WHEREAS, EXLP OPERATING LLC, a Delaware limited liability company (the “Borrower” or
“Operating”), EXTERRAN PARTNERS, L.P., a Delaware limited partnership (“EXLP”), the
Administrative Agent and the Lenders have entered into that certain Amended and Restated Credit
Agreement, dated as of November 3, 2010 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”);

     WHEREAS, in connection with the Credit Agreement, the Grantor, the Borrower, EXLP and certain
of its Affiliates have entered into an Amended and Restated Collateral Agreement, dated as of
November 3, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the
“Collateral Agreement”) in favor of the Administrative Agent for the benefit of the Secured
Parties;

     WHEREAS, the Credit Agreement requires the Grantor to pledge the Equity Interests described on
Schedule 2-S hereto; and

     WHEREAS, the Grantor has agreed to execute and deliver this Supplement in order to pledge such
Equity Interests;

     NOW, THEREFORE, IT IS AGREED:

     1. Collateral Agreement. By executing and delivering this Supplement, the Grantor, as
provided in Section 8.11 of the Collateral Agreement, hereby pledges and grants, to the
Administrative Agent, for the ratable benefit of the Secured Parties, a security interest in (a)
the Equity Interests described or referred to in Schedule 2-S hereto and (b)(i) the
certificates or instruments, if any, representing such Equity Interests, (ii) all dividends (cash,
Equity Interests or otherwise), cash, instruments, rights to subscribe, purchase or sell and all
other rights and Property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such Equity Interests, (iii) all replacements,
additions to and substitutions for any of the Property referred to in this definition, including,
without limitation, claims against third parties, (iv) the proceeds, interest, profits and other
income of or on any of the Property referred to in this definition, (v) all security entitlements
in respect of any of the foregoing, if any, (vi) all books and records relating to any of the
Property referred to in this definition and (vii) all proceeds of any of the foregoing
(collectively, the “Collateral”). Upon execution of this Supplement, the Equity Interests
described or referred to in Schedule 2-S will constitute “Pledged Securities” for purposes
of the Collateral Agreement with the same force and

Annex I-1

 

effect as if originally listed on Schedule 2 thereto. The information set forth in
Schedule 2-S hereto is hereby added to the information set forth in Schedule 2 to
the Collateral Agreement. The Grantor hereby represents and warrants that each of the
representations and warranties contained in Article III of the Collateral Agreement is true and
correct on and as the date hereof (after giving effect to this Supplement) as if made on and as of
such date.

     2. Governing Law. This Supplement shall be governed by, and construed in accordance
with, the laws of the State of Texas.

Annex I-2

 

     IN WITNESS WHEREOF, the undersigned has caused this Supplement to be duly executed and
delivered as of the date first above written.

	 	 	 	 	 
	 	[GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 	 
	 	 	Title:  	 	 	 
	 

Annex I-3

 

Annex II

FORM OF ADDITIONAL GRANTOR SUPPLEMENT

     SUPPLEMENT, dated as of [            ], 201[    ], made by [            ], a [            ] (the “Additional Grantor”), in
favor of Wells Fargo Bank, National Association as administrative agent (in such capacity, the
“Administrative Agent”) for the financial institutions (the “Lenders”) parties to
the Credit Agreement referred to below. All capitalized terms not defined herein shall have the
meanings ascribed to them in such Credit Agreement or the Collateral Agreement referred to below.

WITNESSETH:

     WHEREAS, EXLP OPERATING LLC, a Delaware limited liability company (the “Borrower” or
“Operating”), EXTERRAN PARTNERS, L.P., a Delaware limited partnership (“EXLP”), the
Administrative Agent and the Lenders have entered into that certain Amended and Restated Credit
Agreement, dated as of November 3, 2010 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”);

     WHEREAS, in connection with the Credit Agreement, the Borrower, EXLP and certain of its
Affiliates have entered into an Amended and Restated Collateral Agreement, dated as of November 3,
2010 (as amended, restated, supplemented or otherwise modified from time to time, the
“Collateral Agreement”) in favor of the Administrative Agent for the benefit of the Secured
Parties;

     WHEREAS, the Credit Agreement requires the Additional Grantor to execute and deliver this
Supplement to the Administrative Agent, and the Additional Grantor has agreed to execute and
deliver this Supplement to the Administrative Agent;

     NOW, THEREFORE, IT IS AGREED:

     SECTION 1. Grant of Security Interest. The Additional Grantor hereby pledges,
assigns and transfers to the Administrative Agent, and hereby grants to the Administrative Agent,
for the ratable benefit of the Secured Parties, a security interest in all of the following
Property now owned or at any time hereafter acquired by the Additional Grantor or in which the
Additional Grantor now has or at any time in the future may acquire any right, title or interest
(collectively, the “Collateral”), as collateral security for the prompt and complete
payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of
the Indebtedness:

          (a) all Accounts;

          (b) all Chattel Paper;

          (c) all Documents;

          (d) all Equipment;

Annex II-1

 

          (e) all General Intangibles;

          (f) all Instruments;

          (g) all Inventory;

          (h) all Pledged Securities;

          (i) all books and records pertaining to the Collateral; and

          (j) to the extent not otherwise included, all Proceeds and products of any and all of the
foregoing and all collateral security and guarantees given by any Person with respect to any of the
foregoing.

Each reference to Collateral or to any relevant type or item of Property constituting Collateral
shall be deemed to exclude (i) tangible Property that is not located in the continental United
States (including its possessions), (ii) motor vehicles, forklifts and trailers, (iii) voting
equity interests in any Foreign Subsidiary in excess of 66% of all voting equity interests in such
Foreign Subsidiary, (iv) any general intangibles or other rights arising under any contract,
instrument, license or other document if (but only to the extent that) the grant of a security
interest therein would constitute a material violation of a valid and enforceable restriction in
favor of a third party, unless and until all required consents shall have been obtained, (v) any
Property subject to a Lien permitted by Section 9.02(b), (c), (d), (e) or (g) of the Credit
Agreement, so long as such Lien is in effect and (vi) Pledged Securities consisting of Equity
Interests in a Joint Venture to the extent the Organization Documents of such Joint Venture
prohibit the granting of a Lien on such Equity Interests.

     The Additional Grantor hereby acknowledges that the Indebtedness is owed to the various
Secured Parties and that each Secured Party is entitled to the benefits of the Collateral given
under this Supplement and the Collateral Agreement, provided, however, that only
the Administrative Agent shall be entitled to exercise any remedies relating to the Collateral
given under this Supplement and the Collateral Agreement.

     SECTION 2. Obligations Under the Collateral Agreement. The Additional Grantor hereby
agrees, as provided in Section 8.12 of the Collateral Agreement, as of the date first above
written, to be bound as a Grantor by all of the terms and conditions of the Collateral Agreement to
the same extent as each of the other Grantors thereunder. The undersigned further agrees, as of
the date first above written, that each reference in the Collateral Agreement to a “Grantor” shall
also mean and be a reference to the undersigned, and each reference in any other Loan Document to a
“Grantor” or an “Obligor” shall also mean and be a reference to the undersigned. The information
set forth in Annex A hereto is hereby added to the information set forth in Schedules
___________1 to the Collateral Agreement.

     SECTION 3. Representations, Warranties and Covenants. The Additional Grantor hereby
(a) makes each representation and warranty set forth in Article III of the Collateral Agreement
(assuming that all references in such Article III to a specific date refer to the date

 

			
	1	 	Refer to each Schedule which needs
to be supplemented.

Annex II-2

 

hereof) and (b) undertakes each covenant and obligation set forth in Article IV of the
Collateral Agreement, in each case to the same extent as each other Grantor.

     SECTION 4. Governing Law. This Supplement shall be governed by, and construed in
accordance with, the laws of the State of Texas.

Annex II-3

 

     IN WITNESS WHEREOF, the undersigned has caused this Supplement to be duly executed and
delivered as of the date first above written.

	 	 	 	 	 
	 	[ADDITIONAL GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 	 
	 	 	Title:  	 	 	 
	 

Annex II-4

 

Annex A

to Additional Grantor Supplement

[Information to Supplement Schedules to Collateral Agreement]

Annex A-1

 

Schedule 1

Notice Addresses of Grantors

EXLP Operating LLC

16666 Northchase Drive

Houston, TX 77060

Exterran Partners, L.P.

16666 Northchase Drive

Houston, TX 77060

EXLP Leasing LLC

16666 Northchase Drive
 Houston, TX 77060

Schedule 1-1

 

Schedule 2

Description of Pledged Securities

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	Owner	 	Issuer	 	Percentage
 Owned	 	Percentage
 Pledged	 	Type of 
Interest	 	No. of
 Shares/Units	 	Certificate 
No./Uncertificated
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Exterran Partners,
L.P.

	 	EXLP Operating LLC
	 	 	100	%	 	 	100	%	 	Limited liability

company membership
	 	n/a
	 	uncertificated
	 

	 	 	 	 	 	 	 	 	 	 	 	interest	 	 	 	 
	EXLP Operating LLC

	 	EXLP Leasing LLC
	 	 	100	%	 	 	100	%	 	Limited liability

company membership

interest
	 	n/a
	 	uncertificated

Schedule 2-1

 

Schedule 3

Filings and Other Actions Required to Perfect Security Interests

	1.	 	Filing of UCC-1 Financing Statements, naming each Grantor as debtor and the Administrative
Agent as secured party, and describing the Collateral, with the Secretary of State of the
State of Delaware.

	2.	 	Delivery to the Administrative Agent of all Pledged Securities consisting of certificated
securities, in each case properly endorsed for transfer or in blank.

Schedule 3-1

 

Schedule 4

Location of Jurisdiction of Organization and Chief Executive Office

	 	 	 

	Legal name of Operating:

Address: 

Jurisdiction of organization: 

Organizational number: 

Location of chief executive office or sole
place of business:

	 	EXLP Operating LLC

16666 Northchase Drive

Houston, TX 77060

Delaware

4380859

see address above
	 
	 	 
	Legal name of EXLP: 

Address: 

Jurisdiction of organization: 

Organizational number: 

Location of chief executive office or sole
place of business:

	 	Exterran Partners, L.P.

16666 Northchase Drive 

Houston, TX 77060

Delaware 

4174852

see address above
	 
	 	 
	Legal name of EXLP Leasing: 

Address: 

Jurisdiction of organization: 

Organizational number: 

Location of chief executive office or sole
place of business:

	 	EXLP Leasing LLC

16666 Northchase Drive

Houston, TX 77060

Delaware

4214755

see address above

Schedule 4-1exv4w1

Exhibit 4.1

EXECUTION COPY

USG CORPORATION

SUPPLEMENTAL INDENTURE NO. 3

8.375% Senior Notes due 2018

          THIS SUPPLEMENTAL INDENTURE NO. 3, dated as of November 9, 2010 (this “Supplemental
Indenture”), by and among USG CORPORATION, a Delaware corporation (the “Company”), each of UNITED
STATES GYPSUM COMPANY, L&W SUPPLY CORPORATION, USG FOREIGN INVESTMENTS, LTD. and USG INTERIORS,
INC., each a Delaware corporation (collectively, the “Guarantors”) and HSBC BANK USA, NATIONAL
ASSOCIATION, a national banking association, as trustee (the “Trustee”).

RECITALS OF THE COMPANY:

          WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated
as of November 1, 2006 (the “Base Indenture”), as previously amended, supplemented and modified
(the “Indenture”), providing for the issuance from time to time of one or more Series of
Securities;

          WHEREAS, Article Eight of the Indenture provides for various matters with respect to any
Series of Securities issued under the Indenture to be established in an indenture supplemental to
the Indenture;

          WHEREAS, Section 8.1(e) of the Indenture provides that the Company and the Trustee may enter
into an indenture supplemental to the Indenture to establish the form or terms of Securities of any
Series as permitted by Sections 2.1 and 2.3 of the Indenture; and

          WHEREAS, all the conditions and requirements necessary to make this Supplemental Indenture,
when duly executed and delivered, a valid and binding agreement in accordance with its terms and
for the purposes herein expressed, have been performed and fulfilled.

          NOW THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

          For and in consideration of the premises and the issuance of the Series of Securities provided
for herein, the Company, the Guarantors and the Trustee mutually covenant and agree for the equal
and proportionate benefit of the respective Holders of the Securities of such Series as follows:

ARTICLE ONE

RELATION TO INDENTURE; DEFINITIONS; RULES OF CONSTRUCTION

          SECTION 1.01 Relation to Indenture. This Supplemental Indenture constitutes an
integral part of the Indenture. The changes, modifications and supplements to the Base Indenture
effected by this Supplemental Indenture shall be applicable only with respect to, and shall only

1

 

govern the terms of, these Securities, and shall not apply to any other Series of Securities that
may be issued under the Indenture unless a supplemental indenture with respect to such other
Series of Securities specifically incorporates such changes, modifications and supplements. The
provisions of this Supplemental Indenture shall supersede any corresponding provisions in the Base
Indenture.

          SECTION 1.02 Definitions. For all purposes of this Supplemental Indenture, the
following terms shall have the respective meanings set forth in this Section.

          “Applicable Procedures” means, with respect to any transfer or transaction involving a
Temporary Regulation S Global Security or beneficial interest therein, the rules and
procedures of the Depositary for such a Temporary Regulation S Global Security, to the
extent applicable to such transaction and as in effect from time to time.

          “Capital Markets Indebtedness” means Funded Debt of the Company or any Subsidiary in
the form of, or represented by, bonds (other than surety bonds, indemnity bonds, performance
bonds or bonds of a similar nature) or other securities that are, or may be, quoted, listed
or purchased and sold on any stock exchange, automated trading system or over-the-counter or
other securities market (including, without prejudice to the generality of the foregoing,
the market for securities eligible for resale pursuant to Rule 144A). For purposes of
clarity, it is understood that indebtedness under bank indebtedness (including indebtedness
incurred pursuant to the USG Credit Agreement (and any amendment, supplement or replacement
thereof) and the Credit Agreement dated as of June 30, 2009 between CGC Inc. and The
Toronto-Dominion Bank) will not constitute Capital Markets Indebtedness.

          “Definitive Security” means a certificated Security bearing, if required, the
appropriate restricted securities legend set forth in Section 2.06(e).

          “Depositary” means The Depository Trust Company, its nominees and their respective
successors.

          “Distribution Compliance Period” means, with respect to any Securities, the period of
40 consecutive days beginning on and including the later of (i) the day on which such
Securities are first offered to Persons other than distributors (as defined in Regulation S)
in reliance on Regulation S and (ii) the issue date with respect to such Securities.

          “Domestic Subsidiary” means a Subsidiary organized under the laws of the United States,
any State thereof or the District of Columbia.

          “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any indebtedness of any Person and any obligation, direct or
indirect, contingent or otherwise, of such Person (i) to purchase or pay (or advance or
supply funds for the purchase or payment of) such indebtedness of such Person (whether
arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase
assets, goods, securities or services, to take-or-pay or to maintain financial statement
conditions or otherwise); or (ii) entered into for the purpose of

2

 

assuring in any other manner the obligee of such indebtedness of the payment thereof or
to protect such obligee against loss in respect thereof (in whole or in part);

          provided, however, that the term “Guarantee” shall not include
endorsements for collection or deposit in the ordinary course of business. The term
“Guarantee” used as a verb has a corresponding meaning.

          “Guaranty Agreement” means a guaranty agreement, substantially in the form attached
hereto as Exhibit B, pursuant to which a future Subsidiary Guarantor guarantees the
Company’s obligations under this Supplemental Indenture and with respect to the Securities
on the terms provided for in Article Three of this Supplemental Indenture.

          “Initial Purchasers” means (1) with respect to the Securities issued on the Issue Date,
J.P. Morgan Securities LLC, as representative for the several initial purchasers named on
Schedule I to the Purchase Agreement and (2) with respect to each issuance of Additional
Securities, the Persons initially purchasing such Additional Securities from the Company
under the related Purchase Agreement.

          “Purchase Agreement” means (1) with respect to the Securities issued on the Issue Date,
the Purchase Agreement dated November 4, 2010 among the Company, the Guarantors and J.P.
Morgan Securities LLC, as representative for the several initial purchasers named on
Schedule I thereto and (2) with respect to each issuance of Additional Securities, the
purchase agreement or underwriting agreement among the Company, the Guarantors and the
Persons purchasing such Additional Securities.

          “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

          “Registrar” means any Person (which may include the Company) authorized by the Company
to register the transfer or exchange of Securities.

          “Rule 144A Securities” means all Securities offered and sold to QIBs in reliance on
Rule 144A.

          “Securities” means $350 million aggregate principal amount of 8.375% Senior Notes Due
2018 issued on the Issue Date and (2) Additional Securities, if any, issued in a transaction
exempt from the registration requirements of the Securities Act.

          “Securities Act” means the Securities Act of 1933, as amended.

          “Securities Custodian” means the custodian with respect to a Global Security (as
appointed by the Depositary), or any successor Person thereto and shall initially be the
Trustee.

          “Subsidiary Guarantor” means each Guarantor and each other Subsidiary of the Company
that hereafter guarantees the Securities pursuant to the terms of this Supplemental
Indenture.

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          “Subsidiary Guaranty” means a Guarantee by a Subsidiary Guarantor of the Company’s
obligations under this Supplemental Indenture and with respect to the Securities pursuant to
Article Three of this Supplemental Indenture or contained in the Guaranty Agreement.

          “Transfer Restricted Securities” means Securities that bear or are required to bear the
legend relating to restrictions on transfer relating to the Securities Act set forth in
Section 2.06(e) hereto.

          “USG Credit Agreement” means the Second Amended and Restated Credit Agreement dated as
of January 7, 2009, among the Company, the Lenders party thereto, JPMorgan Chase Bank, N.A.,
as Administrative Agent and Goldman Sachs Credit Partners, L.P., as Syndication Agent.

SECTION 1.03 Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section:
	 
	 	 	 	 
	“Additional Securities”

	 	 	2.02	 
	“Agent Members”

	 	 	2.04	 
	“Global Securities”

	 	 	2.03	 
	“Guaranteed Obligations”

	 	 	3.01	 
	“Permanent Regulation S Global Security”

	 	 	2.03	 
	“Regulation S”

	 	 	2.03	 
	“Regulation S Global Security”

	 	 	2.03	 
	“Rule 144A”

	 	 	2.03	 
	“Rule 144A Global Security”

	 	 	2.03	 
	“Temporary Regulation S Global Security”

	 	 	2.03	 

SECTION 1.04 Rules of Construction. For all purposes of this Supplemental
Indenture:

          (a) capitalized terms used herein without definition shall have the meanings specified in the
Indenture;

          (b) all references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Supplemental Indenture;

          (c) the terms “herein”, “hereof”, “hereunder” and other words of similar import refer to this
Supplemental Indenture; and

          (d) in the event of a conflict with the definition of terms in the Indenture, the definitions
in this Supplemental Indenture shall control.

4

 

ARTICLE TWO

THE SECURITIES

          SECTION 2.01 Title of the Securities. There shall be a Series of Securities
designated the 8.375% Senior Notes due 2018 (the “Securities”).

          SECTION 2.02 Limitation on Aggregate Principal Amount. The Securities will be
initially issued in an aggregate principal amount of $350,000,000; provided that the Company may
from time to time, without giving notice to or seeking the consent of the Holders of the
Securities, issue securities having the same terms (other than the issue price, interest accrual
date and, in some cases, the first interest payment date) and any additional securities (the
“Additional Securities”) having such similar terms, together with the applicable Securities, will
constitute a single Series of Securities under the Indenture; provided, however, that no Additional
Securities shall be issued that are not fungible for U.S. Federal income tax purposes with any
other securities issued under the Indenture.

          SECTION 2.03 Form and Dating. The Securities will be offered and sold by the Company
pursuant to the Purchase Agreement. The Securities will be initially resold only to (i) QIBs in
reliance on Rule 144A under the Securities Act (“Rule 144A”) and (ii) Persons other than U.S.
Persons (as defined in Regulation S) in reliance on Regulation S under the Securities Act
(“Regulation S”). Securities initially resold pursuant to Rule 144A shall be issued initially in
the form of one or more permanent global Securities in definitive, fully registered form
(collectively, the “Rule 144A Global Security”) and Securities initially resold pursuant to
Regulation S shall be issued initially in the form of one or more temporary global securities in
fully registered form (collectively, the “Temporary Regulation S Global Security”), in each case
without interest coupons and with the global securities legend and the applicable restricted
securities legend set forth in Exhibit A hereto, which shall be deposited on behalf of the
purchasers of the Securities represented thereby with the Securities Custodian and registered in
the name of the Depositary or a nominee of the Depositary, duly executed by the Company and
authenticated by the Trustee as provided in the Indenture. Except as set forth in this Section
2.03, beneficial ownership interests in the Temporary Regulation S Global Security will not be
exchangeable for interests in the Rule 144A Global Security, a permanent global security (the
“Permanent Regulation S Global Security”, and together with the Temporary Regulation S Global
Security, the “Regulation S Global Security”) or any other Security prior to the expiration of the
Distribution Compliance Period and then, after the expiration of the Distribution Compliance
Period, may be exchanged for interests in a Rule 144A Global Security or the Permanent Regulation S
Global Security only upon certification in form reasonably satisfactory to the Trustee that
beneficial ownership interests in such Temporary Regulation S Global Security are owned either by
non-U.S. persons or U.S. persons who purchased such interests in a transaction that did not require
registration under the Securities Act.

          Beneficial interests in Temporary Regulation S Global Securities may be exchanged for
interests in Rule 144A Global Securities if (1) such exchange occurs in connection with a transfer
of Securities in compliance with Rule 144A and (2) the transferor of the beneficial interest in the
Temporary Regulation S Global Security first delivers to the Trustee a written certificate (in a
form satisfactory to the Trustee) to the effect that the beneficial interest in the

5

 

Temporary Regulation S Global Security is being transferred to a Person (a) who the transferor
reasonably believes to be a QIB, (b) purchasing for its own account or the account of a QIB in a
transaction meeting the requirements of Rule 144A and (c) in accordance with all applicable
securities laws of the States of the United States and other jurisdictions.

          Beneficial interests in a Rule 144A Global Security may be transferred to a Person who takes
delivery in the form of an interest in a Regulation S Global Security, whether before or after the
expiration of the Distribution Compliance Period, only if the transferor first delivers to the
Trustee a written certificate (in the form set forth on the reverse side of the Security) to the
effect that such transfer is being made in accordance with Rule 903 or 904 of Regulation S or Rule
144 (if applicable).

          The Rule 144A Global Security, the Temporary Regulation S Global Security and the Permanent
Regulation S Global Security are collectively referred to herein as “Global Securities”. The
aggregate principal amount of the Global Securities may from time to time be increased or decreased
by adjustments made on the records of the Trustee and the Depositary or its nominee as hereinafter
provided.

          SECTION 2.04 Book-Entry Provisions. This Section 2.04 shall apply only to a Global
Security deposited with or on behalf of the Depositary.

          The Company shall execute and the Trustee shall, in accordance with this Section 2.04,
authenticate and deliver initially one or more Global Securities that (a) shall be registered in
the name of the Depositary for such Global Security or Global Securities or the nominee of such
Depositary and (b) shall be delivered by the Trustee to such Depositary or pursuant to such
Depositary’s instructions or held by the Trustee as Securities Custodian.

          Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Supplemental Indenture with respect to any Global Security held on their behalf by the
Depositary or by the Trustee as Securities Custodian or under such Global Security, and the
Company, the Trustee and any agent of the Company or the Trustee shall be entitled to treat the
Depositary as the absolute owner of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent
of the Company or the Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or impair, as between the Depositary and its Agent
Members, the operation of customary practices of such Depositary governing the exercise of the
rights of a holder of a beneficial interest in any Global Security.

          SECTION 2.05 Definitive Securities. Except as provided in this Section 2.05, Section
2.06 or Section 2.07, owners of beneficial interests in Global Securities shall not be entitled to
receive physical delivery of Definitive Securities.

          SECTION 2.06 Transfer and Exchange.

          (a) Transfer and Exchange of Definitive Securities. When Definitive Securities are
presented to the Registrar with a request:

          (x) to register the transfer of such Definitive Securities; or

6

 

          (y) to exchange such Definitive Securities for an equal principal amount of Definitive
Securities of other authorized denominations,

the Registrar shall register the transfer or make the exchange as requested if its reasonable
requirements for such transaction are met; provided, however, that the Definitive
Securities surrendered for transfer or exchange:

          (i) shall be duly endorsed or accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company and the Registrar, duly executed by the
Securityholder thereof or its attorney duly authorized in writing; and

          (ii) if such Definitive Securities are required to bear a restricted securities legend,
they are being transferred in accordance with Section 2.06(b) or pursuant to clause (A), (B)
or (C) below, and are accompanied by the following additional information and documents, as
applicable:

          (A) if such Definitive Securities are being delivered to the Registrar by a
Securityholder for registration in the name of such Holder, without transfer, a
certification from such Securityholder to that effect; or

          (B) if such Definitive Securities are being transferred to the Company, a
certification to that effect; or

          (C) if such Definitive Securities are being transferred (x) pursuant to an
exemption from registration in accordance with Rule 144A, Regulation S or Rule 144
under the Securities Act; or (y) in reliance upon another exemption from the
registration requirements of the Securities Act: (i) a certification to that effect
(in the form set forth on the reverse of the Security) and (ii) if the Company so
requests, an opinion of counsel or other evidence reasonably satisfactory to it as
to the compliance with the restrictions set forth in the legend set forth in Section
2.06(e)(i).

          (b) Restrictions on Transfer of a Definitive Security for a Beneficial Interest in a
Global Security. A Definitive Security may not be exchanged for a beneficial interest in a
Rule 144A Global Security or a Permanent Regulation S Global Security except upon satisfaction of
the requirements set forth below. Upon receipt by the Trustee of a Definitive Security, duly
endorsed or accompanied by appropriate instruments of transfer, in form satisfactory to the
Trustee, together with:

          (i) certification, in the form set forth on the reverse of the Security, that such Definitive
Security is either (A) being transferred to a QIB in accordance with Rule 144A or (B) being
transferred after expiration of the Distribution Compliance Period by a Person who initially
purchased such Security in reliance on Regulation S to a buyer who elects to hold its interest in
such Security in the form of a beneficial interest in the Permanent Regulation S Global Security;
and

          (ii) written instructions directing the Trustee to make, or to direct the Securities Custodian
to make, an adjustment on its books and records with respect to such Rule 144A

7

 

Global Security (in the case of a transfer pursuant to clause (b)(i)(A)) or Permanent Regulation S
Global Security (in the case of a transfer pursuant to clause (b)(i)(B)) to reflect an increase in
the aggregate principal amount of the Securities represented by the Rule 144A Global Security or
Permanent Regulation S Global Security, as applicable, such instructions to contain information
regarding the Depositary account to be credited with such increase,

then the Trustee shall cancel such Definitive Security and cause, or direct the Securities
Custodian to cause, in accordance with the standing instructions and procedures existing between
the Depositary and the Securities Custodian, the aggregate principal amount of Securities
represented by the Rule 144A Global Security or Permanent Regulation S Global Security, as
applicable, to be increased by the aggregate principal amount of the Definitive Security to be
exchanged and shall credit or cause to be credited to the account of the Person specified in such
instructions a beneficial interest in the Rule 144A Global Security or Permanent Regulation S
Global Security, as applicable, equal to the principal amount of the Definitive Security so
canceled. If no Rule 144A Global Securities or Permanent Regulation S Global Securities, as
applicable, are then outstanding, the Company shall issue and the Trustee shall authenticate, upon
written order of the Company in the form of an Officer’s Certificate of the Company, a new Rule
144A Global Security or Permanent Regulation S Global Security, as applicable, in the appropriate
principal amount.

          (c) Transfer and Exchange of Global Securities.

          (i) The transfer and exchange of Global Securities or beneficial interests therein
shall be effected through the Depositary, in accordance with this Supplemental Indenture
(including applicable restrictions on transfer set forth herein, if any) and the procedures
of the Depositary therefor. A transferor of a beneficial interest in a Global Security
shall deliver to the Registrar a written order given in accordance with the Depositary’s
procedures containing information regarding the participant account of the Depositary to be
credited with a beneficial interest in the Global Security. The Registrar shall, in
accordance with such instructions instruct the Depositary to credit to the account of the
Person specified in such instructions a beneficial interest in the Global Security and to
debit the account of the Person making the transfer the beneficial interest in the Global
Security being transferred.

          (ii) If the proposed transfer is a transfer of a beneficial interest in one Global
Security to a beneficial interest in another Global Security, the Registrar shall reflect on
its books and records the date and an increase in the principal amount of the Global
Security to which such interest is being transferred in an amount equal to the principal
amount of the interest to be so transferred, and the Registrar shall reflect on its books
and records the date and a corresponding decrease in the principal amount of the Global
Security from which such interest is being transferred.

          (iii) Notwithstanding any other provisions of this Supplemental Indenture (other than
the provisions set forth in Section 2.07), a Global Security may not be transferred as a
whole except by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or by the Depositary

8

 

or any such nominee to a successor Depositary or a nominee of such successor
Depositary.

          (d) Restrictions on Transfer of Temporary Regulation S Global Securities. During the
Distribution Compliance Period, beneficial ownership interests in Temporary Regulation S Global
Securities may only be sold, pledged or transferred in accordance with the Applicable Procedures
and only (i) to the Company or (ii) in an offshore transaction in accordance with Regulation S
(other than a transaction resulting in an exchange for an interest in a Permanent Regulation S
Global Security), in each case in accordance with any applicable securities laws of any State of
the United States.

          (e) Legend.

          (i) Except as permitted by the following paragraph (ii), each Security certificate
evidencing the Global Securities (and all Securities issued in exchange therefor or in
substitution thereof), shall bear a legend in substantially the following form:

          THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN
BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) THAT IS [IN THE CASE OF RULE 144A NOTES: SIX MONTHS] [IN THE CASE OF
REGULATION S NOTES: 40 DAYS] AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST
DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR
ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A
PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES
WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE
ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR

9

 

TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND
WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE.

          Each Security evidencing a Global Security offered and sold to QIBs pursuant to Rule
144A shall, in addition to the foregoing, bear a legend in substantially the following form:

          EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY
BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED
BY RULE 144A THEREUNDER.

          Each certificate evidencing a Security offered in reliance on Regulation S shall, in
addition to the foregoing, bear a legend in substantially the following form:

          THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY
EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT
OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED
ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT.

          Each Definitive Security shall also bear the following additional legend:

          IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER
AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE
TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

          (ii) Upon any sale or transfer of a Transfer Restricted Security (including any
Transfer Restricted Security represented by a Global Security) pursuant to Rule 144 under
the Securities Act, the Registrar shall permit the transferee thereof to exchange such
Transfer Restricted Security for a Definitive Security that does not bear the legend set
forth above and rescind any restriction on the transfer of such Transfer Restricted
Security, if the transferor thereof certifies in writing to the Registrar that such sale or
transfer was made in reliance on Rule 144 (such certification to be in the form set forth on
the reverse of the Security).

          (f) Cancellation or Adjustment of Global Security. At such time as all beneficial
interests in a Global Security have either been exchanged for Definitive Securities, redeemed,
purchased or canceled, such Global Security shall be returned by the Depositary to the Trustee

10

 

for cancellation or retained and cancelled by the Trustee. At any time prior to such
cancellation, if any beneficial interest in a Global Security is exchanged for Definitive
Securities, redeemed, purchased or canceled, the principal amount of Securities represented by such
Global Security shall be reduced and an adjustment shall be made on the books and records of the
Trustee (if it is then the Securities Custodian for such Global Security) with respect to such
Global Security, by the Trustee or the Securities Custodian, to reflect such reduction.

          (g) Obligations with Respect to Transfers and Exchanges of Securities.

          (i) To permit registrations of transfers and exchanges, the Company shall execute and
the Trustee shall authenticate, Definitive Securities and Global Securities at the
Registrar’s request.

          (ii) No service charge shall be made for any registration of transfer or exchange, but
the Company may require payment of a sum sufficient to cover any transfer tax, assessments
or similar governmental charge payable in connection therewith (other than any such transfer
taxes, assessments or similar governmental charge payable upon exchange or transfer pursuant
to Sections 8.5 or 12.3 of the Indenture).

          (iii) Prior to the due presentation for registration of transfer of any Security, the
Company, the Trustee, the Paying Agent or the Registrar may deem and treat the person in
whose name a Security is registered as the absolute owner of such Security for the purpose
of receiving payment of principal of and interest on such Security and for all other
purposes whatsoever, whether or not such Security is overdue, and none of the Company, the
Trustee, the Paying Agent or the Registrar shall be affected by notice to the contrary.

          (iv) The Company shall not be required to make and the Registrar need not register
transfers or exchanges of Securities selected for redemption (except, in the case of
Securities to be redeemed in part, the portion thereof not to be redeemed) or any Securities
for a period of 15 days before the mailing of a notice of redemption of Securities to be
redeemed.

          (v) All Securities issued upon any transfer or exchange pursuant to the terms of this
Supplemental Indenture shall evidence the same Debt and shall be entitled to the same
benefits under this Supplemental Indenture as the Securities surrendered upon such transfer
or exchange.

          (h) No Obligation of the Trustee.

          (i) The Trustee shall have no responsibility or obligation to any beneficial owner of
a Global Security, a member of, or a participant in the Depositary or other Person with
respect to the accuracy of the records of the Depositary or its nominee or of any
participant or member thereof, with respect to any ownership interest in the Securities or
with respect to the delivery to any participant, member, beneficial owner or other Person
(other than the Depositary) of any notice (including any notice of redemption or repurchase)
or the payment of any amount, under or with respect to such Securities. All notices and
communications to be given to the Securityholders and all payments to be

11

 

made to Securityholders under the Securities shall be given or made only to or upon the
order of the registered Securityholders (which shall be the Depositary or its nominee in the
case of a Global Security). The rights of beneficial owners in any Global Security shall be
exercised only through the Depositary subject to the applicable rules and procedures of the
Depositary. The Trustee may rely and shall be fully protected in relying upon information
furnished by the Depositary with respect to its members, participants and any beneficial
owners.

          (ii) The Trustee shall have no obligation or duty to monitor, determine or inquire as
to compliance with any restrictions on transfer imposed under this Supplemental Indenture or
under applicable law with respect to any transfer of any interest in any Security (including
any transfers between or among Depositary participants, members or beneficial owners in any
Global Security) other than to require delivery of such certificates and other documentation
or evidence as are expressly required by, and to do so if and when expressly required by,
the terms of this Supplemental Indenture, and to examine the same to determine substantial
compliance as to form with the express requirements hereof.

SECTION 2.07 Definitive Securities.

          (a) A Global Security deposited with the Depositary or with the Trustee as Securities
Custodian for the Depositary pursuant to Section 2.03 shall be transferred to the beneficial owners
thereof in the form of Definitive Securities in an aggregate principal amount equal to the
principal amount of such Global Security, in exchange for such Global Security, only if such
transfer complies with Section 2.06 hereof and (i) the Depositary notifies the Company that it is
unwilling or unable to continue as Depositary for such Global Security and the Depositary fails to
appoint a successor depositary or if at any time such Depositary ceases to be a “clearing agency”
registered under the Exchange Act, in either case, and a successor depositary or clearing system is
not appointed by the Company within 90 days of such notice, (ii) an Event of Default has occurred
and is continuing or (iii) the Company, in its sole discretion, notifies the Trustee in writing
that it elects to cause the issuance of Definitive Securities under this Supplemental Indenture.

          (b) Any Global Security that is transferable to the beneficial owners thereof pursuant to
this Section 2.07 shall be surrendered by the Depositary to the Trustee to be so transferred, in
whole or from time to time in part, without charge, and the Trustee shall authenticate and deliver,
upon such transfer of each portion of such Global Security, an equal aggregate principal amount of
Definitive Securities of authorized denominations. Any portion of a Global Security transferred
pursuant to this Section 2.07 shall be executed, authenticated and delivered only in denominations
of $2,000 principal amount and any integral multiples of $1,000 in excess of $2,000 and registered
in such names as the Depositary shall direct. Any Definitive Security delivered in exchange for an
interest in the Transfer Restricted Security shall, except as otherwise provided by Section 2.06(e)
hereof, bear the applicable restricted securities legend and definitive securities legend set forth
in Exhibit A hereto.

          (c) Subject to the provisions of Section 2.07(b) hereof, the registered Securityholder of a
Global Security shall be entitled to grant proxies and otherwise authorize any Person, including

12

 

Agent Members and Persons that may hold interests through Agent Members, to take any action
which a Securityholder is entitled to take under this Supplemental Indenture or the Securities.

          (d) In the event of the occurrence of any one of the events specified in Section 2.07(a)
hereof, the Company shall promptly make available to the Trustee a reasonable supply of Definitive
Securities in definitive, fully registered form without interest coupons. In the event that such
Definitive Securities are not issued, the Company expressly acknowledges, with respect to the right
of any Securityholder to pursue a remedy pursuant to Section 5.7 of the Indenture, the right of any
beneficial owner of Securities to pursue such remedy with respect to the portion of the Global
Security that represents such beneficial owner’s Securities as if such Definitive Securities had
been issued.

          SECTION 2.08 Optional Redemption. (a) Except as set forth in this Section 2.08 and
subject to compliance with Article Twelve of the Indenture, the Company shall not be entitled to
redeem the Securities at its option.

          (b) The Company may redeem the Securities at its option, in whole or in part, at any time and
from time to time on or after October 15, 2014, at the following redemption prices (expressed in
percentages of principal amount on the redemption date), plus any accrued and unpaid interest to
the redemption date (subject to the rights of Holders on the relevant record date to receive
interest due on the relevant interest payment date), if redeemed during the 12-month period
commencing on October 15 of the years set forth below:

	 	 	 	 	 
	Period	 	Redemption Price
	2014

	 	 	104.188	%
	2015

	 	 	102.094	%
	2016 and thereafter

	 	 	100.000	%

          (c) The Company may redeem the Securities at its option, in whole or in part, at any time and
from time to time prior to October 15, 2014, at a redemption price equal to 100% of the principal
amount of the Securities plus the Applicable Premium (as defined in the Securities) as of, and any
accrued and unpaid interest to, the redemption date (subject to the rights of Holders on the
relevant record date to receive interest due on the relevant interest payment date).

ARTICLE THREE

          SECTION 3.01 Guaranties. Each Subsidiary Guarantor hereby unconditionally and
irrevocably guarantees, jointly and severally, on a senior unsecured basis to each Securityholder
and to the Trustee and its successors and assigns (a) the full and punctual payment of principal of
and interest on the Securities when due, whether at maturity, by acceleration, by redemption or
otherwise, and all other monetary obligations of the Company under this Supplemental Indenture and
the Securities and (b) the full and punctual performance within applicable grace periods of all
other obligations of the Company under this Supplemental Indenture and the Securities (all the
foregoing being hereinafter collectively called the “Guaranteed Obligations”). Each Subsidiary
Guarantor further agrees that the Guaranteed Obligations may be extended or renewed, in whole or in
part, without notice or further assent

13

 

from such Subsidiary Guarantor and that such Subsidiary Guarantor will remain bound under this
Article Three notwithstanding any extension or renewal of any Guaranteed Obligation.

          Each Subsidiary Guarantor waives presentation to, demand of, payment from and protest to the
Company of any of the Guaranteed Obligations and also waives notice of protest for nonpayment.
Each Subsidiary Guarantor waives notice of any default under the Securities or the Guaranteed
Obligations. The obligations of each Subsidiary Guarantor hereunder shall not be affected by (1)
the failure of any Securityholder or the Trustee to assert any claim or demand or to enforce any
right or remedy against the Company or any other Person (including any Subsidiary Guarantor) under
this Supplemental Indenture, the Securities or any other agreement or otherwise; (2) any extension
or renewal of any thereof; (3) any rescission, waiver, amendment or modification of any of the
terms or provisions of this Supplemental Indenture, the Securities or any other agreement; (4) the
release of any security held by any Securityholder or the Trustee for the Guaranteed Obligations or
any of them; (5) the failure of any Securityholder or the Trustee to exercise any right or remedy
against any other guarantor of the Guaranteed Obligations; or (6) except as set forth in Section
3.06, any change in the ownership of such Subsidiary Guarantor.

          Each Subsidiary Guarantor further agrees that its Subsidiary Guaranty herein constitutes a
guarantee of payment, performance and compliance when due (and not a guarantee of collection) and
waives any right to require that any resort be had by any Securityholder or the Trustee to any
security held for payment of the Guaranteed Obligations.

          Except as expressly set forth in Sections 3.02 and 3.06, the obligations of each Subsidiary
Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination
for any reason, including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever
or by reason of the invalidity, illegality or unenforceability of the Guaranteed Obligations or
otherwise. Without limiting the generality of the foregoing, the obligations of each Subsidiary
Guarantor herein shall not be discharged or impaired or otherwise affected by the failure of any
Securityholder or the Trustee to assert any claim or demand or to enforce any remedy under this
Supplemental Indenture, the Securities or any other agreement, by any waiver or modification of any
thereof, by any default, failure or delay, willful or otherwise, in the performance of the
obligations, or by any other act or thing or omission or delay to do any other act or thing which
may or might in any manner or to any extent vary the risk of such Subsidiary Guarantor or would
otherwise operate as a discharge of such Subsidiary Guarantor as a matter of law or equity.

          Each Subsidiary Guarantor further agrees that its Subsidiary Guaranty herein shall continue to
be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of
principal of or interest on any Guaranteed Obligation is rescinded or must otherwise be restored by
any Securityholder or the Trustee upon the bankruptcy or reorganization of the Company or
otherwise.

          In furtherance of the foregoing and not in limitation of any other right which any
Securityholder or the Trustee has at law or in equity against any Subsidiary Guarantor by virtue
hereof, upon the failure of the Company to pay the principal of or interest on any Guaranteed

14

 

Obligation when and as the same shall become due, whether at maturity, by acceleration, by
redemption or otherwise, or to perform or comply with any other Guaranteed Obligation, each
Subsidiary Guarantor hereby promises to and shall, upon receipt of written demand by the Trustee,
forthwith pay, or cause to be paid, in cash, to the Securityholders or the Trustee an amount equal
to the sum of (A) the unpaid amount of such Guaranteed Obligations, (B) accrued and unpaid interest
on such Guaranteed Obligations (but only to the extent not prohibited by law) and (C) all other
monetary Guaranteed Obligations of the Company to the Securityholders and the Trustee.

          Each Subsidiary Guarantor agrees that, as between it, on the one hand, and the Securityholders
and the Trustee, on the other hand, (i) the maturity of the Guaranteed Obligations hereby may be
accelerated as provided in Section 5.1 of the Indenture for the purposes of such Subsidiary
Guarantor’s Subsidiary Guaranty herein, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the Guaranteed Obligations guaranteed hereby, and (ii)
in the event of any declaration of acceleration of such Guaranteed Obligations as provided in
Section 5.1 of the Indenture, such Guaranteed Obligations (whether or not due and payable) shall
forthwith become due and payable by such Subsidiary Guarantor for the purposes of this Section.

          Each Subsidiary Guarantor also agrees to pay any and all costs and expenses (including
reasonable attorneys’ fees and expenses) incurred by the Trustee or any Securityholder in enforcing
any rights under this Section 3.01.

          SECTION 3.02 Limitation on Liability. Any term or provision of this Supplemental
Indenture to the contrary notwithstanding, the maximum aggregate amount of the Guaranteed
Obligations guaranteed hereunder by any Subsidiary Guarantor shall not exceed the maximum amount
that, after giving effect to all other contingent and fixed liabilities of such Subsidiary
Guarantor and to any collections from or payments made by or on behalf of any other Subsidiary
Guarantor in respect of its Guaranteed Obligations, can be hereby guaranteed without rendering this
Supplemental Indenture, as it relates to such Subsidiary Guarantor, voidable under applicable law
relating to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of
creditors generally.

          SECTION 3.03 Successors and Assigns. Except as provided in Section 3.06 hereof, this
Article Three shall be binding upon each Subsidiary Guarantor and its successors and assigns and
shall inure to the benefit of the respective successors and assigns of the Trustee and the
Securityholders and, in the event of any transfer or assignment of rights by any Securityholder or
the Trustee, the rights and privileges conferred upon that party in this Supplemental Indenture and
in the Securities shall automatically extend to and be vested in such transferee or assignee, all
subject to the terms and conditions of this Supplemental Indenture.

          SECTION 3.04 No Waiver. Neither a failure nor a delay on the part of either the
Trustee or the Securityholders in exercising any right, power or privilege under this Article Three
shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any
other or further exercise of any right, power or privilege. The rights, remedies and benefits of
the Trustee and the Securityholders herein expressly specified are cumulative and not exclusive

15

 

of any other rights, remedies or benefits which either may have under this Article Three at
law, in equity, by statute or otherwise.

          SECTION 3.05 Modification. No modification, amendment or waiver of any provision of
this Article Three, nor the consent to any departure by any Subsidiary Guarantor therefrom, shall
in any event be effective unless the same shall be in writing and signed by the Trustee, and then
such waiver or consent shall be effective only in the specific instance and for the purpose for
which given. No notice to or demand on any Subsidiary Guarantor in any case shall entitle such
Subsidiary Guarantor to any other or further notice or demand in the same, similar or other
circumstances.

          SECTION 3.06 Release of Subsidiary Guarantor. A Subsidiary Guarantor will be released
from its obligations under this Section 3.06 (other than any obligation that may have arisen under
Section 3.07) (a) upon the sale or disposition of (whether by merger, consolidation, the sale of
its capital stock or the sale of all or substantially all of its assets (other than by lease)) and
whether or not the Subsidiary Guarantor is the surviving entity in such transaction to a Person
that is not the Company or a Restricted Subsidiary; provided that all of the obligations of the
Subsidiary Guarantor, if any, under the USG Credit Agreement (or any successor facility) and
related documentation terminate upon consummation of such transaction or (b) following the
defeasance of the Securities in accordance with Section 10.1(b) of the Indenture to the extent that
the Obligations of the Company have been discharged thereby.

At the written request of the Company, the Trustee shall execute and deliver an appropriate
instrument evidencing such release.

          SECTION 3.07 Contribution. Each Subsidiary Guarantor that makes a payment under its
Subsidiary Guaranty shall be entitled, upon payment in full of all Guaranteed Obligations under
this Supplemental Indenture, to a contribution from each other Subsidiary Guarantor in an amount
equal to such other Subsidiary Guarantor’s pro rata portion of such payment based
on the respective net assets of all the Subsidiary Guarantors at the time of such payment
determined in accordance with generally accepted accounting principles of the United States of
America.

          SECTION 3.08 Merger or Consolidation of Subsidiary Guarantors. (a) Subject to
Sections 3.06 and 3.08(b) hereof, no Subsidiary Guarantor may consolidate or merge with or into
(whether or not such Subsidiary Guarantor is the surviving Person) another Person unless: (i) the
Person formed by or surviving any such consolidation or merger (if other than such Subsidiary
Guarantor) assumes all the obligations of such Subsidiary Guarantor under this Supplemental
Indenture, in form reasonably satisfactory to the Trustee and (ii) immediately after such
transaction, no Default or Event of Default exists.

          (b) The restrictions in Section 3.08(a) hereof shall not prohibit a consolidation or merger
between Subsidiary Guarantors or between the Company and a Subsidiary Guarantor.

          SECTION 3.09 Future Guarantors. The Company shall cause (i) each Domestic Subsidiary
that becomes one of the Company’s “significant subsidiaries” (as such term is defined in Regulation
S-X under the Securities Act) after the issue date of the Securities, to become a

16

 

Subsidiary Guarantor promptly following the time that it is determined to be a “significant
subsidiary” in accordance with the periodic and current reporting requirements under the Exchange
Act, as well as Regulation S-X under the Securities Act (it being understood that the determination
as to whether any Subsidiary is a “significant subsidiary” will be made at least annually in
connection with the preparation of the Company’s annual financial statements) and (ii) each
Domestic Subsidiary that incurs or guarantees any Capital Markets Indebtedness to become a
Subsidiary Guarantor promptly following such incurrence or guarantee, as the case may be, in the
case of each of (i) and (ii), by executing and delivering to the Trustee a Guaranty Agreement.

ARTICLE FOUR

EVENTS OF DEFAULT

          SECTION 4.01 Events of Default. Section 5.1 of the Indenture is hereby amended solely
with respect to the Securities by replacing clauses (a) through (f) in their entirety with the
following:

          “(a) default by the Company or any Subsidiary Guarantor in the payment of any installment of
interest upon the Securities as and when the same shall become due and payable, and continuance of
such default for a period of 30 days; or

          (b) default by the Company or any Subsidiary Guarantor in the payment of the principal of, or
any premium on, the Securities as and when the same shall become due and payable either at
maturity, upon redemption, by declaration or otherwise; or

          (c) failure on the part of the Company or any Subsidiary Guarantor to observe or perform any
other of the covenants or agreements on the part of the Company or any Subsidiary Guarantor in the
Indenture and the Supplemental Indenture, for a period of 60 days after the date on which written
notice specifying such failure and requiring the Company or any Subsidiary Guarantor, as
applicable, to remedy the same and stating that such notice is a “Notice of Default” hereunder
shall have been given by registered or certified mail to the Company by the Trustee, or to the
Company and the Trustee by the Holders of at least twenty-five percent in aggregate principal
amount at maturity of the Securities at the time outstanding; or

          (d) a default occurs under any debt of the Company or any Subsidiary Guarantor having an
outstanding principal amount in excess of $50,000,000 in the aggregate which, as a result thereof,
the holder(s) of such debt or a trustee or agent acting on their behalf have declared such debt to
be due prior to its stated maturity date, or the Company or any Subsidiary Guarantor, as
applicable, is required to repurchase or redeem such debt prior to its stated maturity and, in
either case, such debt has not been discharged in full or such acceleration or redemption has not
been rescinded or annulled within 30 days of the effectiveness thereof; or

          (e) the Company or any Subsidiary Guarantor shall make an assignment for the benefit of
creditors, or shall file a petition in bankruptcy; or the Company or any Subsidiary Guarantor shall
be adjudicated insolvent or bankrupt, or shall petition or shall apply to any court having
jurisdiction in the premises for the appointment of a receiver, trustee, liquidator or sequestrator
of, or for, the Company or any Subsidiary Guarantor, or any substantial portion of

17

 

the property of the Company or any Subsidiary Guarantor; or the Company or any Subsidiary Guarantor
shall commence any proceeding relating to the Company or such Subsidiary Guarantor or any
substantial portion of the property of the Company or such Subsidiary Guarantor under any
insolvency, reorganization, arrangement, or readjustment of debt, dissolution, winding-up,
adjustment, composition or liquidation law or statute of any jurisdiction, whether now or hereafter
in effect (hereinafter in this subsection (e) called “Proceeding”); or if there shall be commenced
against the Company or any Subsidiary Guarantor any Proceeding and an order approving the petition
shall be entered, or such Proceeding shall remain undischarged or unstayed for a period of 60 days;
or a receiver, trustee, liquidator or sequestrator of, or for, the Company or any Subsidiary
Guarantor or any substantial portion of the property of the Company or any Subsidiary Guarantor;
provided that a resolution or order for winding-up the Company or any Subsidiary Guarantor with a
view to its consolidation, amalgamation or merger with another company or the transfer of its
assets as a whole, or substantially as a whole, to such other company as provided in Section 9.1
shall not make the rights and remedies herein enforceable under this subsection (e) of Section 5.1
if such last-mentioned company shall, as a part of such consolidation, amalgamation, merger or
transfer, and within 60 days from the passing of the resolution or the date of the order, comply
with the conditions to that end stated in Section 9.1; or

          (f) except as permitted by this Supplemental Indenture, any Subsidiary Guaranty ceases to be
in full force and effect (other than in accordance with the terms of such Subsidiary Guaranty) or
any Subsidiary Guarantor denies or disaffirms its obligations under its Subsidiary Guaranty;”

ARTICLE FIVE

PERMITTED LIENS

          SECTION 5.01 Permitted Liens. The definition of “Permitted Liens” in the Indenture
is hereby amended solely with respect to the Securities as follows:

          (a) Clause (xi) is replaced in its entirety with the following:

          “(xi) Liens existing or arising securing indebtedness or any other obligations under the
Second Amended and Restated Credit Agreement dated as of January 7, 2009, among the Company, the
Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Goldman Sachs Credit
Partners, L.P., as Syndication Agent, or any renewals, amendments, increases, or extensions,
replacements or refinancings thereof intended to rank equal in priority to the foregoing;”

          (b) Clause (xvi) is replaced in its entirety with the following:

          “[RESERVED];”.

18

 

ARTICLE SIX

MISCELLANEOUS PROVISIONS

          SECTION 6.01 Ratification. The Indenture, as supplemented and amended by this
Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed.

          SECTION 6.02 Counterparts. This Supplemental Indenture may be executed in any number
of counterparts, each of which when so executed shall be deemed an original, and all such
counterparts shall together constitute but one and the same instrument.

          SECTION 6.03 Governing Law. THIS SUPPLEMENTAL INDENTURE AND EACH SECURITY SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
THE CHOICE OF LAW PRINCIPLES THEREOF.

[signature page follows]

19

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 3 to
be duly executed as of the day and year first above written.

	 	 	 	 	 
	 	USG CORPORATION

 	 
	 	By:  	/s/ Richard H. Fleming
 	 
	 	 	Name:  	Richard H. Fleming 	 
	 	 	Title:  	Executive Vice President and
Chief Financial Officer 	 
	 	 	 
	 	By:  	                   /s/ Karen L. Leets
 	 
	 	 	Name:  	Karen L. Leets 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	L&W SUPPLY CORPORATION

 	 
	 	By:  	/s/ Karen L. Leets
 	 
	 	 	Name:  	Karen L. Leets 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	UNITED STATES GYPSUM COMPANY

 	 
	 	By:  	/s/ Karen L. Leets
 	 
	 	 	Name:  	Karen L. Leets 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	USG FOREIGN INVESTMENTS, LTD.

 	 
	 	By:  	/s/ Karen L. Leets
 	 
	 	 	Name:  	Karen L. Leets 	 
	 	 	Title:  	Vice President and Treasurer 	 

20

 

	 	 	 	 	 

	 	 	 	 	 
	 	USG INTERIORS, INC.

 	 
	 	By:  	/s/ Karen L. Leets
 	 
	 	 	Name:  	Karen L. Leets 	 
	 	 	Title:  	Vice President and Treasurer 	 

21

 

	 	 	 	 	 

	 	 	 	 	 
	 	HSBC BANK USA,

NATIONAL ASSOCIATION,

as Trustee

 	 
	 	By:  	/s/ Vivian Ly
 	 
	 	 	Name:  	Vivian Ly 	 
	 	 	Title:  	Vice President 	 

22

 

	 	 	 	 	 

EXHIBIT A

[FORM OF FACE OF INITIAL SECURITY]

[Global Securities Legend]

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

     [[FOR REGULATION S GLOBAL SECURITY ONLY] UNTIL 40 DAYS AFTER THE LATER OF COMMENCEMENT OR
COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS
DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF
SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]

[Restricted Securities Legend]

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY
NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION
IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS
ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS
PURCHASED

A-1

 

SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”) THAT IS [IN THE CASE OF RULE 144A NOTES: SIX MONTHS] [IN THE CASE OF
REGULATION S NOTES: 40 DAYS] AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON
WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR
OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT
THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR
OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (E)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT
TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE
HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

[Additional Restricted Securities Legend for Securities Offered in Reliance on Rule 144A]

     EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE
144A THEREUNDER.

[Additional Restricted Securities Legend for Securities Offered in Reliance on Regulation S.]

     THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT
FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY
U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN
TO THEM IN REGULATION S UNDER THE SECURITIES ACT.

A-2

 

[Temporary Regulation S Global Security Legend]

     EXCEPT AS SET FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S
GLOBAL SECURITY WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE PERMANENT REGULATION S GLOBAL
SECURITY OR ANY OTHER SECURITY REPRESENTING AN INTEREST IN THE SECURITIES REPRESENTED HEREBY WHICH
DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY
DISTRIBUTION COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(b)(2) OF REGULATION S UNDER THE
SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE
THAT SUCH BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED
SUCH INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT. DURING
SUCH 40-DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY
REGULATION S GLOBAL SECURITY MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED (I) TO THE COMPANY, (II)
OUTSIDE THE UNITED STATES IN A TRANSACTION IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE
SECURITIES ACT, OR (III) IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT, IN EACH OF CASES
(I) THROUGH (III) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES. HOLDERS OF INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY WILL NOTIFY ANY
PURCHASER OF THIS SECURITY OF THE RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

     BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY MAY BE EXCHANGED FOR
INTERESTS IN A RULE 144A GLOBAL SECURITY, WHETHER BEFORE OR AFTER THE EXPIRATION OF THE 40-DAY
DISTRIBUTION COMPLIANCE PERIOD, ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF
THE SECURITIES IN COMPLIANCE WITH RULE 144A AND (2) THE TRANSFEROR OF THE REGULATION S GLOBAL
SECURITY FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS
CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL SECURITY IS BEING TRANSFERRED (A) TO A
PERSON WHO THE TRANSFEROR REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE
UNITED STATES AND OTHER JURISDICTIONS.

     BENEFICIAL INTERESTS IN A RULE 144A GLOBAL SECURITY MAY BE TRANSFERRED TO A PERSON WHO TAKES
DELIVERY IN THE FORM OF AN INTEREST IN THE REGULATION S GLOBAL SECURITY, WHETHER BEFORE OR AFTER
THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD,

A-3

 

ONLY IF THE TRANSFEROR FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (SET FORTH ON THE
REVERSE SIDE OF THIS SECURITY) TO THE EFFECT THAT SUCH TRANSFER IS BEING MADE IN ACCORDANCE WITH
RULE 903 OR 904 OF REGULATION S OR RULE 144 (IF AVAILABLE).

[Definitive Securities Legend]

     IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT
SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM
THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

A-4

 

USG CORPORATION.

8.375% Senior Note due 2018

     Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to the Company (as defined below) or its agent for
registration of transfer, exchange or payment, and any certificate issued is registered in the name
of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and
any payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

			
	 
	No.     
	 	U.S.$     

CUSIP No.:     

     USG Corporation, a corporation duly organized and existing under the laws of Delaware (herein
called the “Company”, which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the
principal amount set forth above on October 15, 2018, and to pay interest thereon from November 9,
2010 or from the most recent interest payment date to which interest has been paid or duly provided
for, semiannually on April 15 and October 15 in each year, beginning on April 15, 2011, at the rate
of 8.375% per annum, until the principal hereof is paid or made available for payment.

     The interest so payable, and punctually paid or duly provided for, on any interest payment
date will, as provided in the Indenture, be paid to the Person in whose name this Security (or one
or more Predecessor Securities) is registered at the close of business on the regular record date
for such interest, which shall be the April 1 or October 1 (whether or not a Business Day), as the
case may be, next preceding such interest payment date. Any such interest not so punctually paid
or duly provided for will forthwith cease to be payable to the Holder on such regular record date
and may either be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a special record date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities of this series not less than 10 days prior to such special record date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities of this series may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in the Indenture.

     Payment of the principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The
City of New York, in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts; provided, however,

A-5

 

that at the option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the Security Register or by
wire transfer to an account maintained by the Person entitled thereto as specified in the Security
Register, provided that such Person shall have given the Trustee written wire instructions at least
five Business Days prior to the applicable Interest Payment Date.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

[Signatures appear on next page]

A-6

 

     IN WITNESS WHEREOF, USG Corporation has caused this instrument to be duly signed.

	 	 	 	 	 
	 	USG CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-7

 

	 	 	 	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the Series designated herein and referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	HSBC Bank USA, National Association,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Dated: November 9, 2010

A-8

 

[FORM OF REVERSE SIDE OF SECURITY]

8.375% Senior Note due 2018

          Section 1. Indenture

          The Company issued the Securities under an Indenture, dated as of November 1, 2006, between
the Company and the Trustee, and Supplemental Indenture No. 3 thereto, dated as of November 9, 2010
(collectively, the “Indenture”). The terms of the Securities include those stated in the Indenture
and those made part of the Indenture by reference to the Trust Indenture Act as in effect on the
date of the Indenture. Terms defined in the Indenture and not defined herein have the meanings
ascribed thereto in the Indenture. The Securities are subject to all terms and provisions of the
Indenture, and Securityholders are referred to the Indenture and the Trust Indenture Act for a
statement of such terms and provisions.

          The Securities are senior unsecured obligations of the Company initially limited to
$350,000,000 aggregate principal amount at any one time outstanding.

          Section 2. Redemption

          Except as set forth below and subject to compliance with Article Twelve of the Indenture, the
Company shall not be entitled to redeem the Securities at its option.

          The Company may redeem the Securities at its option, in whole or in part, at any time and from
time to time on or after October 15, 2014, at the following redemption prices (expressed in
percentages of principal amount on the redemption date), plus any accrued and unpaid interest to
the redemption date (subject to the rights of Holders on the relevant record date to receive
interest due on the relevant interest payment date), if redeemed during the 12-month period
commencing on October 15 of the years set forth below:

	 	 	 	 	 
	Period	 	Redemption Price
	2014
	 	 	104.188	%
	2015
	 	 	102.094	%
	2016 and thereafter
	 	 	100.000	%

          The Company may redeem the Securities at its option, in whole or in part, at any time and from
time to time prior to October 15, 2014, at a redemption price equal to 100% of the principal amount
of the Securities plus the Applicable Premium as of, and any accrued and unpaid interest to, the
redemption date (subject to the rights of Holders on the relevant record date to receive interest
due on the relevant interest payment date).

          Notwithstanding the foregoing, installments of interest on Securities that are due and payable
on interest payment dates falling on or prior to a redemption date will be payable on the

A-9

 

interest
payment date to the Holders as of the close of business on the relevant record date. The
redemption price will be calculated on the basis of a 360-day year consisting of twelve 30-day
months.

          “Applicable Premium” means, with respect to any Security on any redemption date, the greater
of:

          (1) 1.0% of the principal amount of such Security; and

          (2) the excess, if any, of (a) the present value at such redemption date of (i) the redemption
price of such Security at October 15, 2014 (such redemption price being described in Section
2.08(b)), plus (ii) all required interest payments due on such Security through October 15, 2014
(excluding accrued and unpaid interest to the redemption date), computed using a discount rate
equal to the Treasury Rate as of such redemption date plus 50 basis points; over (b) the principal
amount of such Security.

          “Treasury Rate” means, as of any redemption date, (1) the yield, under the heading which
represents the average for the immediately preceding week, appearing in the most recently published
statistical release designated “H.15(519)” or any successor publication which is published weekly
by the Board of Governors of the Federal Reserve System and which establishes yields on actively
traded U.S. Treasury securities adjusted to constant maturity under the heading “Treasury Constant
Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is
within three months before or after October 15, 2014, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate
will be interpolated or extrapolated from such yields on a straight line basis, rounding to the
nearest month) or (2) if such release (or any successor release) is not published during the week
preceding the calculation date or does not contain such yields, the rate per year equal to the
semi-annual equivalent yield-to-maturity of the Comparable Treasury Issue, calculated using a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date. The Treasury Rate will be calculated on the
third Business Day preceding the redemption date.

          “Comparable Treasury Issue” means the U.S. Treasury security selected by an Independent
Investment Banker as having a maturity comparable to the remaining term of the Securities from the
redemption date to October 15, 2014, that would be utilized at the time of selection in accordance
with customary financial practice in pricing new issues of corporate debt securities of a maturity
most nearly equal to October 15, 2014.

          “Comparable Treasury Price” means (1) the average of five Reference Treasury Dealer Quotations
for such redemption date, after excluding the highest and lowest Reference Treasury Dealer
Quotations or (2) if the Independent Investment Banker is unable to obtain five such

A-10

 

Reference
Treasury Dealer Quotations, the average of all such quotations obtained by the Independent
Investment Banker.

          “Independent Investment Banker” means either J.P. Morgan Securities LLC or Merrill Lynch,
Pierce, Fenner & Smith Incorporated, and their respective successors, or, if both firms are
unwilling or unable to select the Comparable Treasury Issue, an independent investment banking
institution of national standing appointed by the Trustee after approval by the Company.

          “Reference Treasury Dealer” means (1) each of J.P. Morgan Securities LLC and Merrill Lynch,
Pierce, Fenner & Smith Incorporated, or their respective successors; provided, however, that if any
of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a
“Primary Treasury Dealer”), the Company shall substitute another Primary Treasury Dealer and (2)
any three other Primary Treasury Dealers selected by the Independent Investment Banker after
consultation with the Company.

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Independent Investment Banker, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Independent Investment Banker at 5:00 p.m., New York
City time, on the third Business Day preceding such redemption date.

          Section 3. Repurchase Upon Change of Control

          If a Change of Control occurs, unless the Company has exercised its right to redeem the
Securities as provided in Section 2 above, the Company shall make an offer to each Securityholder
to repurchase all or any part (in integral multiples of $1,000) of that Securityholder’s Securities
at a repurchase price in cash equal to 101% of the aggregate principal amount of Securities
repurchased plus any accrued and unpaid interest on the Securities repurchased to the date of
purchase. Within 30 days following any Change of Control or, at the option of the Company, prior
to any Change of Control, but after the public announcement of the Change of Control, the Company
shall mail a notice to each Securityholder, with a copy to the Trustee, describing the transaction
or transactions that constitute or may constitute the Change of Control and offering to repurchase
Securities on the payment date specified in the notice, which date will be no earlier than 30 days
and no later than 60 days from the date such notice is mailed. The notice shall, if mailed prior to
the date of consummation of the Change of Control, state that the offer to purchase is conditioned
on the Change of Control occurring on or prior to the payment date specified in the notice.

          The Company shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act
of 1934 (the “Exchange Act”), and any other securities laws and regulations thereunder, to the
extent those laws and regulations are applicable in connection with the repurchase of the notes as
a result of a Change of Control. To the extent that the provisions of any securities laws or
regulations conflict with this Section 3, the Company shall comply with

A-11

 

the applicable securities
laws and regulations and will not be deemed to have breached its obligations under this Section 3,
or the Indenture by virtue of such conflict.

     The Company shall, to the extent lawful:

	 	•	 	on the Change of Control payment date, accept for payment all Securities or portions of
Securities properly tendered pursuant to the aforementioned offer;
	 
	 	•	 	at any time on or prior to the Change of Control payment date, deposit with the Paying
Agent an amount equal to the aggregate purchase price in respect of all Securities or
portions of Securities properly tendered; and
	 
	 	•	 	on the Change of Control payment date or the Business Day immediately following such
date, deliver or cause to be delivered to the Trustee the Securities properly accepted,
together with an Officers’ Certificate stating the aggregate principal amount of Securities
being purchased by the Company.

     The Paying Agent will promptly mail to each Securityholder of Securities properly tendered the
purchase price for the Securities, and the Trustee will promptly authenticate and mail (or cause to
be transferred by book-entry) to each Securityholder a new Security equal in principal amount to
any unpurchased portion of any Securities surrendered; provided, that each new Security will be in
a principal amount of $2,000 or an integral multiple of $1,000 above that amount.

     The Company shall not be required to make an offer to repurchase the Securities upon a Change
of Control if a third party makes such an offer in the manner, at the times and otherwise in
compliance with the requirements for an offer made by the Company and such third party purchases
all Securities properly tendered and not withdrawn under its offer.

     “Change of Control” means the occurrence of any of the following:

     (1) the direct or indirect sale, transfer, conveyance or other disposition (other than by way
of merger or consolidation), in one or a series of related transactions, of all or substantially
all of the Company’s properties or assets and those of its subsidiaries taken as a whole to any
“person” or “group” (as that term is used in Section 13(d)(3) of the Exchange Act), other than the
Company or one of its subsidiaries;

     (2) the adoption of a plan relating to the Company’s liquidation or dissolution;

     (3) the first day on which a majority of the members of the Board of Directors are not
Continuing Directors of the Company; or

A-12

 

     (4) the consummation of any transaction or series of related transactions (including, without
limitation, any merger or consolidation) the result of which is that any “person” or “group” (as
that term is used in Section 13(d)(3) of the Exchange Act), other than the Company or one of its
wholly-owned subsidiaries, becomes the beneficial owner, directly or indirectly, of more than 50%
of the then outstanding number of shares of the Voting Stock of the Company, measured by voting
power rather than number of shares.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company who (1) was a member of such Board of Directors on the date of the
issuance of the Securities or (2) was nominated for election or elected to such Board of Directors
with the approval of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election (either by a specific vote or by approval of
the Company’s proxy statement in which such member was named as a nominee for election as a
director).

     “Voting Stock” means, with respect to any Person, Capital Stock of any class or kind the
holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election
of directors (or persons performing similar functions) of such Person, even if the right so to vote
has been suspended by the happening of such a contingency.

          Section 4. Sinking Fund

          The Securities are not subject to any sinking fund.

          Section 5. Guaranty

          The payment by the Company of the principal of, and premium and interest on, the Securities is
fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by each
of the Subsidiary Guarantors to the extent set forth in the Supplemental Indenture.

          Section 6. Denominations; Transfer; Exchange

          The Securities are in registered form without coupons in denominations of $2,000 and integral
multiples of $1,000 in excess thereof. A Securityholder may transfer or exchange Securities in
accordance with the Indenture. Upon any transfer or exchange, the Registrar and the Trustee may
require a Securityholder, among other things, to furnish appropriate endorsements or transfer
documents and to pay any taxes required by law or permitted by the Indenture. The Registrar need
not register the transfer of or exchange any Securities selected for redemption or to transfer or
exchange any Securities for a period of 15 days prior to the mailing of a notice of redemption of
Securities to be redeemed.

          Section 7. Persons Deemed Owners

          The registered Holder of this Security may be treated as the owner of it for all purposes.

A-13

 

          Section 8. Unclaimed Money

          If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its written request unless an abandoned
property law designates another Person. After any such payment, Holders entitled to the money must
look only to the Company and not to the Trustee for payment.

          Section 9. Discharge and Defeasance

          Subject to certain conditions as set forth in the Indenture, the Company at any time may
terminate some of or all its obligations under the Securities and the Indenture if the Company
deposits with the Trustee money or U.S. Government Obligations for the payment of principal and
interest on the Securities to redemption or maturity, as the case may be.

          Section 10. Trustee Dealings with the Company

          Subject to certain limitations imposed by the Trust Indenture Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities
and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and
may otherwise deal with the Company or its Affiliates with the same rights it would have if it were
not Trustee.

          Section 11. No Recourse Against Others

          A director, officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Securities or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. By accepting a
Security, each Securityholder waives and releases all such liability. The waiver and release are
part of the consideration for the issue of the Securities.

          Section 12. Authentication

          This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Security.

          Section 13. Governing Law

          THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

          Section 14. CUSIP Numbers

A-14

 

          Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Securities and has directed
the Trustee to use CUSIP numbers in notices of redemption as a convenience to Securityholders. No
representation is made as to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.

          Section 15. Indenture

          The Company will furnish to any Securityholder upon written request and without charge to the
Securityholder a copy of the Indenture which has in it the text of this Security.

          Section 16. Reports

          To the extent required to permit Securityholders (other than the Company’s affiliates and
affiliates of any of the Subsidiary Guarantors) to sell their Securities without registration under
the Securities Act, the Company will make publicly available the information concerning the Company
specified in Rule 144(c)(2) under the Securities Act.

A-15

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE

OR REGISTRATION OF TRANSFER OF SECURITIES

          This Certificate relates to $                     principal amount of Securities held in (check
applicable space)       book-entry or       definitive form by                                          (the
“Transferor”).

          The Transferor (check one box below):

	 	o 	 	  has requested the Trustee by written order to deliver in exchange for its beneficial
interest in the Global Security held by the Depositary a Security or Securities in
definitive, registered form of authorized denominations in an aggregate principal amount
equal to its beneficial interest in such Global Security (or the portion thereof indicated
above); or
	 
	 	o  	 	has requested the Trustee by written order to exchange or register the transfer of a
Security or Securities.

          In connection with any transfer of any of the Securities evidenced by this certificate
occurring prior to the date that is (a) six months (in the case of Securities held by a “qualified
institutional buyer” as defined in Rule 144A under the Securities Act of 1933) or (b) 40 days (in
the case of Securities held by a non-U.S. person and purchased in an offshore transaction within
the meaning of Regulation S under the Securities Act of 1933) (the “Resale Restriction Period”),
the undersigned confirms that such Securities are being transferred in accordance with its terms:

CHECK ONE BOX BELOW

	 	 	 	 	 	 	 	 	 

	 

	 	 	(1	)	 	o
	 	to the Company; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	(2	)	 	o
	 	pursuant to an effective registration statement under the Securities Act of
1933; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	(3	)	 	o
	 	inside the United States to a “qualified institutional buyer” (as defined
in Rule 144A under the Securities Act of 1933) that purchases for its own account or
for the account of a qualified institutional buyer to whom notice is given that such
transfer is being made in reliance on Rule 144A, in each case pursuant to and in
compliance with Rule 144A under the Securities Act of 1933; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	(4	)	 	o
	 	outside the United States to a non-U.S. person in an offshore transaction
within the meaning of Regulation S under the Securities Act in compliance with Rule 904
under the Securities Act of 1933; or

A-16

 

	 	 	 	 	 	 	 	 	 

	 

	 	 	(5	)	 	o
	 	pursuant to another available exemption from registration provided by Rule
144 under the Securities Act of 1933.

          Prior to the expiration of the Resale Restriction Period, unless one of the boxes is checked,
the Trustee will refuse to register any of the Securities evidenced by this certificate in the name
of any Person other than the registered holder thereof; provided, however, that if box (3), (4) and
(5) is checked, the Trustee may require, prior to registering any such transfer of the Securities,
such legal opinions, certifications and other information satisfactory to the Company and the
Trustee to confirm that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act of 1933.

 

[INSERT NAME OF TRANSFEROR]

Dated:                                         

	 	 	 	 	 
	 	 	 
	By:  	
 	 	 
	 	 	 	 
	 	 	 	 

A-17

 

	 	 	 	 	 

TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

          The undersigned represents and warrants that it is purchasing this Security for its own
account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 
	 	 	 
	Dated:                                          	  	

 	 
	 	Notice: 	        To be executed by 	 
	 	 	an executive officer 	 

A-18

 

	 	 	 	 	 

TO BE COMPLETED BY PURCHASER IF (4) ABOVE IS CHECKED.

          The undersigned represents and warrants that it is not a “U.S. person” (as defined in Rule 902
of Regulation S under the Securities Act of 1933) and that it is acquiring this Security in a
transaction or transactions taking place outside the United States in accordance with Regulation S.
The undersigned acknowledges that the Security cannot be resold unless registered under the
Securities Act of 1933 or pursuant to an exemption from registration under the Securities Act of
1933.

	 	 	 	 	 
	 	 	 
	Dated: _____________	  	 	 
	 	 	NOTICE:        To be executed by an executive officer. 	 

A-19

 

	 	 	 	 	 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Signature of
	 	 	 	 	 	 	Principal amount of	 	authorized
	 	 	Amount of decrease	 	Amount of increase	 	this Global	 	signatory of
	 	 	in principal	 	in principal amount	 	Security following	 	Trustee or
	Date of	 	amount of this	 	of this Global	 	such decrease or	 	Securities
	Exchange	 	Global Security	 	Security	 	increase)	 	Custodian
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

A-20

 

ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

 

(Print or type assignee’s name, address and zip code)

 

(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably appoint _______________________ agent to transfer this Security on the books of
the Company. The agent may substitute another to act for him.

Date: _______________________      
Your Signature: _______________________

 

Sign exactly as your name appears on the other side of this Security.

A-21

 

EXHIBIT B

[Form of Guaranty Agreement]

GUARANTY AGREEMENT (this “Guaranty Agreement”) dated as of      , among [GUARANTOR] (the “New
Guarantor”), a subsidiary of USG Corporation (or its successor), a Delaware corporation (the
“Company”), [EXISTING GUARANTORS] (the “Existing Guarantors”) and HSBC Bank USA, National
Association, as trustee under the supplemental indenture referred to below (the “Trustee”).

WITNESSETH:

          WHEREAS the Company and the Existing Guarantors have heretofore executed and delivered to the
Trustee a supplemental indenture (the “Supplemental Indenture”) dated as of November 9, 2010,
providing for the issuance of an aggregate principal amount of up to $350,000,000 of 8.375% Senior
Notes due 2018 (the “Securities”); and

          WHEREAS Section 3.09 of the Supplemental Indenture provides that under certain circumstances
the Company is required to cause the New Guarantor to execute and deliver to the Trustee a guaranty
agreement pursuant to which the New Guarantor shall unconditionally guarantee all of the Company’s
obligations under the Securities pursuant to a Subsidiary Guaranty on the terms and conditions set
forth herein;

          NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the New Guarantor, the Company, the
Existing Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit
of the holders of the Securities as follows:

          1. Agreement to Guarantee. The New Guarantor hereby agrees, jointly and severally
with all the Existing Guarantors, to unconditionally guarantee the Company’s obligations under the
Securities on the terms and subject to the conditions set forth in Article Three of the
Supplemental Indenture and to be bound by all other applicable provisions of the Supplemental
Indenture and the Securities.

          2. Governing Law. THIS GUARANTY AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CHOICE OF LAW PRINCIPLES
THEREOF.

          3. Trustee Makes No Representation. The Trustee makes no representations as to the
validity or sufficiency of this Guaranty Agreement.

B-1

 

          4. Counterparts. The parties may sign any number of copies of this Guaranty
Agreement. Each signed copy shall be an original, but all of them together represent the same
agreement.

          5. Effect of Headings. The section headings herein are for convenience only and shall
not effect the construction thereof.

(Signature Page Follows)

B-2

 

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

	 	 	 	 	 
	 	[NEW GUARANTOR],

 	 
	 	by:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	USG CORPORATION,

 	 
	 	by:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[EXISTING GUARANTORS]

 	 
	 	by:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	HSBC BANK USA, NATIONAL ASSOCIATION, as Trustee,

 	 
	 	by:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

B-3

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