Document:

exv10w1

 

EXHIBIT 10.1

Execution

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

among

ALLIS-CHALMERS ENERGY INC.,

as the Borrower,

ROYAL BANK OF CANADA,

as Administrative Agent

and

as Collateral Agent

and

The Lenders Party Hereto

$62,000,000

SENIOR CREDIT FACILITY

RBC CAPITAL MARKETS

As Lead Arranger and Sole Bookrunner

Dated as of April 26, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 	 	 	 	 
	ARTICLE I. DEFINITIONS AND ACOUNTING TERMS	 	 	2	 
	1.01
	 	Defined Terms	 	 	2	 
	1.02
	 	Other Interpretive Provisions	 	 	24	 
	1.03
	 	Accounting Terms	 	 	24	 
	1.04
	 	Rounding	 	 	24	 
	1.05
	 	References to Agreements and Laws	 	 	24	 
	 	 	 	 	 	 	 
	ARTICLE II. THE COMMITMENT AND BORROWINGS	 	 	25	 
	2.01
	 	Loans	 	 	25	 
	2.02
	 	Borrowings, Conversions and Continuations of Revolving Loans	 	 	25	 
	2.03
	 	Prepayments	 	 	26	 
	2.04
	 	Reduction or Termination of Commitments	 	 	28	 
	2.05
	 	Repayment of Revolving Loans	 	 	28	 
	2.06
	 	Interest	 	 	28	 
	2.07
	 	Fees	 	 	29	 
	2.08
	 	Computation of Interest and Fees	 	 	29	 
	2.09
	 	Evidence of Debt	 	 	29	 
	2.10
	 	Payments Generally	 	 	30	 
	2.11
	 	Sharing of Payments	 	 	32	 
	2.12
	 	Pari Passu Lien Securing Lender Hedging Agreements and Banking Service Obligations	 	 	32	 
	2.13
	 	Letters of Credit	 	 	32	 
	 	 	 	 	 	 	 
	ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY	 	 	39	 
	3.01
	 	Taxes	 	 	39	 
	3.02
	 	Illegality	 	 	41	 
	3.03
	 	Inability to Determine Rates	 	 	41	 
	3.04
	 	Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans	 	 	41	 
	3.05
	 	Funding Losses	 	 	42	 
	3.06
	 	Matters Applicable to all Requests for Compensation	 	 	43	 
	3.07
	 	Survival	 	 	43	 
	3.08
	 	Mitigation Obligations	 	 	43	 
	 	 	 	 	 	 	 
	ARTICLE IV. CONDITIONS PRECEDENT	 	 	43	 
	4.01
	 	Conditions Precedent	 	 	43	 
	4.02
	 	Deadline for Second Amended and Restated Closing Date	 	 	46	 
	4.03
	 	Conditions to all Revolving Loans and L/C Credit Extension	 	 	46	 
	4.04
	 	Conditions to all Revolving  Loans to Fund Permitted Acquisitions	 	 	46	 
	 	 	 	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES	 	 	47	 
	5.01
	 	Existence; Qualification and Power; Compliance with Laws	 	 	47	 
	5.02
	 	Authorization; No Contravention	 	 	47	 
	5.03
	 	Governmental Authorization	 	 	48	 

Allis-Chalmers Energy

Second Amended and Restated Credit Agreement

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 	 	 	 	 
	5.04
	 	Binding Effect	 	 	48	 
	5.05
	 	Financial Statements; No Material Adverse Effect	 	 	48	 
	5.06
	 	Litigation	 	 	48	 
	5.07
	 	No Default	 	 	48	 
	5.08
	 	Ownership of Property; Liens	 	 	49	 
	5.09
	 	Environmental Compliance	 	 	49	 
	5.10
	 	Insurance	 	 	49	 
	5.11
	 	Taxes	 	 	49	 
	5.12
	 	ERISA Compliance	 	 	49	 
	5.13
	 	Subsidiaries and other Investments	 	 	50	 
	5.14
	 	Margin Regulations; Investment Company Act; Use of Proceeds	 	 	50	 
	5.15
	 	Disclosure	 	 	50	 
	5.16
	 	Labor Matters	 	 	51	 
	5.17
	 	Compliance with Laws	 	 	51	 
	5.18
	 	Third Party Approvals	 	 	51	 
	5.19
	 	Solvency	 	 	51	 
	5.20
	 	Collateral	 	 	51	 
	5.21
	 	Intellecutal Property; Licenses, Etc.	 	 	51	 
	5.22
	 	Leased Locations	 	 	52	 
	5.23
	 	Material Agreements	 	 	52	 
	 	 	 	 	 	 	 
	ARTICLE VI. AFFIRMATIVE COVENANTS	 	 	52	 
	6.01
	 	Financial Statements	 	 	52	 
	6.02
	 	Certificates; Other Information	 	 	53	 
	6.03
	 	Notices	 	 	54	 
	6.04
	 	Payment of Obligations	 	 	54	 
	6.05
	 	Preservation of Existence, Etc.	 	 	54	 
	6.06
	 	Maintenance of Assets and Business; Movement of Collateral	 	 	55	 
	6.07
	 	Maintenance of Insurance	 	 	55	 
	6.08
	 	Compliance with Laws and Contractual Obligations	 	 	55	 
	6.09
	 	Books and Records	 	 	55	 
	6.10
	 	Inspection Rights	 	 	55	 
	6.11
	 	Compliance with ERISA	 	 	56	 
	6.12
	 	Use of Proceeds	 	 	56	 
	6.13
	 	Guaranties	 	 	56	 
	6.14
	 	Further Assurances; Additional Collateral	 	 	56	 
	 	 	 	 	 	 	 
	ARTICLE VII NEGATIVE COVENANTS	 	 	57	 
	7.01
	 	Liens	 	 	57	 
	7.02
	 	Investments	 	 	59	 
	7.03
	 	Swap Contracts	 	 	60	 
	7.04
	 	Indebtedness	 	 	60	 
	7.05
	 	Lease Obligations	 	 	61	 
	7.06
	 	Fundamental Changes	 	 	61	 
	7.07
	 	Dispositions	 	 	61	 
	7.08
	 	Restricted Payments; Distributions and Redemptions	 	 	62	 
	7.09
	 	ERISA	 	 	62	 
	7.10
	 	Change in Nature of Business	 	 	62	 

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	 	 	 	 	Page	 
	 	 	 	 	 	 	 
	7.11
	 	Transactions with Affiliates	 	 	62	 
	7.12
	 	Burdensome Agreements	 	 	62	 
	7.13
	 	Use of Proceeds	 	 	63	 
	7.14
	 	Capital Expenditures	 	 	63	 
	7.15
	 	Prepayments	 	 	63	 
	7.16
	 	Subordinated Indebtedness; Senior Unsecured Notes	 	 	63	 
	7.17
	 	Amendments of Constitutive Documents	 	 	63	 
	7.18
	 	Accounting Changes	 	 	63	 
	7.19
	 	Financial Covenants	 	 	64	 
	 	 	 	 	 	 	 
	ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES	 	 	64	 
	8.01
	 	Events of Default	 	 	64	 
	8.02
	 	Remedies Upon Event of Default	 	 	66	 
	 	 	 	 	 	 	 
	ARTICLE IX. ADMINISTRATIVE AGENT 	 	 	67	 
	9.01
	 	Appointment and Authorization of Agents; Lender Hedging Agreements	 	 	67	 
	9.02
	 	Delegation of Duties	 	 	68	 
	9.03
	 	Default; Collateral	 	 	68	 
	9.04
	 	Liability of Agents	 	 	70	 
	9.05
	 	Reliance by Administrative Agent	 	 	70	 
	9.06
	 	Notice of Default	 	 	71	 
	9.07
	 	Credit Decision; Disclosure of Information by Administrative Agent	 	 	71	 
	9.08
	 	Indemnification of Agents	 	 	71	 
	9.09
	 	Administrative Agent in its Individual Capacity	 	 	72	 
	9.10
	 	Successor Administrative Agent and Collateral Agent	 	 	72	 
	9.11
	 	Other Agents; Arranger	 	 	72	 
	9.12
	 	Administrative Agent May File Proofs of Claim	 	 	73	 
	 	 	 	 	 	 	 
	ARTICLE X MISCELLANEOUS	 	 	73	 
	10.01
	 	Amendments, Release of Collateral, Etc	 	 	73	 
	10.02
	 	Notices and Other Communications; Facsimile Copies	 	 	75	 
	10.03
	 	No Waiver; Cumulative Remedies	 	 	76	 
	10.04
	 	Attorney Costs; Expenses and Taxes	 	 	77	 
	10.05
	 	Indemnification	 	 	77	 
	10.06
	 	Payments Set Aside	 	 	78	 
	10.07
	 	Successors and Assigns	 	 	78	 
	10.08
	 	Confidentiality	 	 	81	 
	10.09
	 	Set-off	 	 	81	 
	10.10
	 	Interest Rate Limitation	 	 	82	 
	10.11
	 	Counterparts	 	 	82	 
	10.12
	 	Integration	 	 	82	 
	10.13
	 	Survival of Representations and Warranties	 	 	82	 
	10.14
	 	Severability	 	 	83	 
	10.15
	 	Replacement of Lenders	 	 	83	 
	10.16
	 	Governing Law	 	 	83	 
	10.17
	 	Waiver of Right to Trial by Jury, Etc	 	 	84	 
	10.18
	 	Termination of Commitments Under First Amended and Restated Credit Agreement	 	 	84	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 	 	 	 	 
	10.19
	 	No Novations, Etc	 	 	85	 
	10.20
	 	USA Patriot Act	 	 	85	 
	10.21
	 	ENTIRE AGREEMENT	 	 	85	 

iv

 

SCHEDULES

	 	 	 
	2.01

	 	Commitments
	5.05

	 	Existing Indebtedness
	5.13

	 	Subsidiaries and other Equity Investments
	5.22

	 	Leased Locations
	5.23

	 	Material Agreements
	7.01

	 	Existing Liens
	10.02

	 	Addresses for Notices to Borrower, Guarantors and Administrative Agent

EXHIBITS

	 	 	 
	Exhibit:	 	Form of:
	 
	 	 
	A-1

	 	Borrowing Notice
	A-2

	 	Conversion/Continuation Notice
	A-3

	 	Payment/Prepayment Notice
	B

	 	Revolver Note
	C

	 	Compliance Certificate pursuant to Section 6.02(a)
	D

	 	Assignment and Assumption

v

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT is entered into as of April 26, 2007, among
ALLIS-CHALMERS ENERGY INC., a Delaware corporation (the “Borrower”), each lender from time to time
party hereto (collectively, the “Lenders” and individually, a “Lender”), and ROYAL BANK OF CANADA,
as Administrative Agent, Collateral Agent and L/C Issuer.

RECITALS:

     (1) The Borrower, Royal Bank of Canada, individually (in its individual capacity, “Royal
Bank”) and as administrative agent and collateral agent, and Caterpillar Financial Services
Corporation (“CFSC”) entered into a Credit Agreement originally dated July 11, 2005 (the “Original
Credit Agreement”) providing for an aggregate credit facility of up to $55,000,000.

     (2) Pursuant to the provisions of Section 10.07 of the Original Credit Agreement, Royal Bank,
as assignor, entered into an Assignment and Assumption dated November 14, 2005 with CommerceBank,
N.A. (“Commerce”), as assignee, pursuant to which Royal Bank assigned to Commerce a portion of
Royal Bank’s Term Loan and Acquisition Loan and a portion of its Revolving Loan and Revolving
Commitment, and Commerce thereby became a Lender to Borrower under the Original Credit Agreement.

     (3) The Original Credit Agreement was amended by a First Amendment to Credit Agreement among
the Borrower, Royal Bank, individually and as administrative agent and collateral agent, CFSC and Commerce dated December 16, 2005.

     (4) The Original Credit Agreement was amended and restated in its entirety by an Amended and
Restated Credit Agreement dated January 18, 2006 among Borrower, Royal Bank, individually and as
administrative agent and collateral agent, CFSC and Commerce, providing for an aggregate credit
facility of up to $25,000,000 (the “First Amended and Restated Credit Agreement”).

     (5) The First Amended and Restated Credit Agreement was amended by a First Amendment to
Amended and Restated Credit Agreement among the Borrower, Royal Bank, individually and as
administrative agent and collateral agent, CFSC and Commerce dated August 8, 2006.

     (6) Pursuant to the provisions of Section 10.07 of the First Amended and Restated Credit
Agreement and an Assignment and Assumption dated of even date herewith, Commerce assigned all of
its rights and obligations under the First Amended and Restated Credit Agreement (including all of
its commitments and loans and participations in letters of credit thereunder and all liens and
security interests granted as security for indebtedness under the First Amended and Restated Credit
Agreement) to Royal Bank, as administrative agent under the First Amended and Restated Credit
Agreement (and Royal Bank, as administrative Agent under the First Amended and Restated Credit
Agreement, hereby waives the $3,500 processing and recordation fee for each assignment), and Royal
Bank, as administrative agent under the First Amended and Restated Credit Agreement, accepted and
recorded such assignment and the Borrower also consented to such assignment.

     (7) The Borrower has requested that the First Amended and Restated Credit Agreement be amended
in certain respects and that the Aggregate Revolving Commitment thereunder be increased to
$62,000,000 and in connection with such request each of JPMorgan Chase Bank, N.A., Wachovia Bank,

1

 

National Association, Wells Fargo Bank, N.A. and Natixis have agreed to become Lenders and the
Borrower and Lenders have agreed to amend and restate in its entirety the First Amended and
Restated Credit Agreement on the terms and conditions set forth herein, to renew and rearrange the
indebtedness outstanding under the First Amended and Restated Credit Agreement (but not to repay or
pay off such indebtedness) and to increase the Aggregate Revolving Commitment to SIXTY-TWO MILLION
DOLLARS ($62,000,000.00).

     NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the
parties hereto hereby agree that the First Amended and Restated Credit Agreement is amended and
restated in its entirety to read as follows:

ARTICLE I.
DEFINITIONS AND ACCOUNTING TERMS

     1.01 Defined Terms.

     As used in this Agreement, the terms defined in the introductory paragraph hereof shall have
the meanings therein indicated and the following terms shall have the meanings set forth below:

     Acquisition means any transaction or series of related transactions for the purpose of, or
resulting in, directly or indirectly: (a) the acquisition by the Borrower or any Subsidiary of all
or substantially all of the assets located in the United States of a Person or of any business or
division of a Person; (b) the acquisition by the Borrower or any Subsidiary of more than 50% of any
class of Voting Stock (or similar Equity Interests) of any Domestic Person; or (c) a merger,
consolidation or other combination by the Borrower or any Subsidiary with another Person if the
Borrower or any Subsidiary is the surviving entity; provided that, (i) in any merger involving the
Borrower, the Borrower must be the surviving entity; and (ii) in any merger involving a Subsidiary
which is a Loan Party and another Subsidiary which is not a Loan Party, the Subsidiary which is a Loan Party shall be the survivor.

     Administrative Agent means Royal Bank in its capacity as administrative agent under any of the
Loan Documents, or any successor administrative agent.

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

     Administrative Details Form means the Administrative Details Reply Form furnished by a Lender
to the Administrative Agent in connection with this Agreement.

     Affiliate means, as to any Person, any other Person directly or indirectly controlling,
controlled by, or under direct or indirect common control with, such Person. A Person shall be
deemed to be controlled by any other Person if such other Person possesses, directly or indirectly, power
(a) to vote 10% or more of the Voting Stock (on a fully diluted basis) having ordinary voting power
for the election of directors, managing members, or managing general partner; or (b) to direct or
cause the direction of the management and policies of such Person whether by contract or otherwise.

2

 

     Agent/Arranger Fee Letter has the meaning specified in Section 2.07(b).

     Agent-Related Persons means the Administrative Agent (including any successor administrative
agent) and its respective Affiliates (including the officers, directors, employees, agents and attorneys-in-fact of such Person).

     Aggregate Revolving Commitment has the meaning specified in the definition of Revolving
Commitment.

     Applicable Rate means the following percentages per annum set forth in the table below, on any
date of determination, with respect to the Type of Credit Extension or commitment fee that
corresponds to the Leverage Ratio at such date of determination, as calculated based on the
quarterly Compliance Certificate most recently delivered pursuant to Section 6.02(a):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Letter of Credit	 	 
	 	 	 	 	Commitment	 	and Eurodollar	 	Base
	Pricing	 	 	 	Fee	 	Rate	 	Rate
	Level	 	Leverage Ratio	 	 + (basis points)	 	 + (basis points)	 	 + (basis points)
	1
	 	Less than 2.50:1.00	 	 	37.5	 	 	 	150.0	 	 	 	50.0	 
	2
	 	Less than 3.00:1.00 but greater than or equal to 2.50:1.00	 	 	37.5	 	 	 	175.0	 	 	 	75.0	 
	3
	 	Less than 3.50:1.00 but greater than or equal to 3.00:1.00	 	 	50.0	 	 	 	225.0	 	 	 	125.0	 
	4
	 	Less than 4.00:1.00 but greater than or equal to 3.50:1.00	 	 	50.0	 	 	 	250.0	 	 	 	150.0	 
	5
	 	Greater than or  equal to 4.00:1.00	 	 	50.0	 	 	 	275.0	 	 	 	175.0	 

     Any increase or decrease in the Applicable Rate resulting from a change in the Leverage Ratio
shall become effective as of the first day of the fiscal quarter of the Borrower immediately
following the date of a Compliance Certificate delivered pursuant to Section 6.02(a); provided,
however, that if no Compliance Certificate is delivered during a fiscal quarter within 10 days
after such Compliance Certificate is due in accordance with such Section, Pricing Level 5 shall
apply as of the first day of such following fiscal quarter. The Applicable Rate in effect from the
Second Amended and Restated Closing Date through June 30, 2007 shall be based Pricing Level 2.

     Approved Fund means any Fund that is administered or managed by a Lender, an Affiliate of a
Lender, or an entity or an Affiliate of an entity that administers or manages a Lender.

     Arranger means RBC Capital Markets in its capacity as lead arranger and sole bookrunner.

3

 

     Assignment and Assumption means an Assignment and Assumption substantially in the form of
Exhibit D.

     Attorney Costs means and includes the reasonable fees and disbursements of any law firm or
other external counsel and the allocated cost of internal legal services and all disbursements of internal counsel.

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

     Authorizations means all filings, recordings, and registrations with, and all validations or
exemptions, approvals, orders, authorizations, consents, franchises, licenses, certificates, and permits from, any Governmental Authority.

     Banking Service Obligations means any and all obligations of the Loan Parties, whether
absolute or contingent and howsoever created, arising, evidenced or acquired (including all
renewals, extensions and modifications thereof and substitutions therefor) in connection with Banking Services.

     Banking Services means each and any of the following bank services provided to the Borrower or
any Subsidiary by any Lender or Affiliate of a Lender: (i) commercial credit cards, (ii) stored
value cards, and (iii) treasury management services (including, without limitation, controlled
disbursement, automated clearinghouse transactions, return items, overdrafts and interstate depository network services).

     Base Rate means for any day a fluctuating rate per annum equal to the higher of (a) the
Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as publicly
announced from time to time by the Administrative Agent as its “prime rate.” Such rate is a rate
set by the Administrative Agent based upon various factors including the Administrative Agent’s
costs and desired return, general economic conditions and other factors, and is used as a reference
point for pricing some loans, which may be priced at, above, or below such announced rate. Any
change in such rate announced by the Administrative Agent shall take effect at the opening of
business on the day specified in the public announcement of such change.

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

     Board means the Board of Governors of the Federal Reserve System of the United States.

     Borrower has the meaning specified in the introductory paragraph hereof.

     Borrower Affiliate means the Borrower’s Subsidiaries.

     Borrowing means a borrowing consisting of simultaneous Revolving Loans of one or more Types,
which are either Base Rate Loans or Eurodollar Rate Loans, and if Eurodollar Rate Loans have the
same Interest Period, made by each of the Lenders pursuant to Section 2.01.

4

 

     Borrowing Notice means a notice of (a) a Borrowing, (b) a conversion of Revolving Loans from
one Type to the other, or (c) a continuation of Revolving Loans as the same Type, pursuant to
Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit A-1 or A-2, as
applicable.

     Business Day means any day other than a Saturday, Sunday, or other day on which commercial
banks are authorized to close under the Laws of Texas, or are in fact closed and, if such day
relates to any Eurodollar Rate Loan, means any such day on which dealings in Dollar deposits are
conducted by and between banks in the applicable offshore Dollar interbank market.

     Capital Expenditure by a Person means an expenditure (determined in accordance with GAAP) for
any fixed asset owned by such Person for use in the operations of such Person having a useful life
of more than one year, or any improvements or additions thereto.

     Capital Lease means any capital lease or sublease which should be capitalized on a balance
sheet in accordance with GAAP.

     Cash Adjusted Consolidated Funded Debt means, as of any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, the excess of (a) Consolidated Funded Debt
less (b) unrestricted cash and Cash Equivalents as reflected on the balance sheet.

     Cash Collateralize means to pledge and deposit with or deliver to the Administrative Agent or
Collateral Agent, for the benefit of the L/C Issuer and the Lenders, as collateral for the L/C
Obligations, cash and deposit account balances pursuant to documentation in form and substance
satisfactory to the Administrative Agent and the L/C Issuer (which documents hereby are consented
to by the Lenders).

     Cash Equivalents means:

     (a) United States Dollars;

     (b) direct general obligations, or obligations of, or obligations fully and
unconditionally guaranteed as to the timely payment of principal and interest by, the United
States or any agency or instrumentality thereof having remaining maturities of not more than
13 months, but excluding any such securities whose terms do not provide for payment of a
fixed dollar amount upon maturity or call for redemptions;

     (c) certificates of deposit and eurodollar-time deposits with maturities of thirteen
(13) months or less, bankers acceptances with maturities not exceeding 180 days, overnight
bank deposits and other similar short term instruments, in each case with any domestic
commercial bank having capital and surplus in excess of $250,000,000 and having a rating of
at least “A2” by Moody’s and at least “A” by S&P;

     (d) repurchase obligations with a term of not more than 13 months for underlying
securities of the types described in (b) and (c) above entered into with any financial
institution meeting the qualifications in (c) above;

     (e) commercial paper (having original maturities of not more than 270 days) of any
Person rated “P-1” or better by Moody’s or “A-1” or the equivalent by S&P; and

5

 

     (f) money market mutual or similar funds having assets in excess of $100,000,000, at
least 95% of the assets of which are comprised of assets specified in clause (a) through (e) above.

     CERCLA has the meaning specified in the definition of Environmental Law.

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

     (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or
its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other
fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in
Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or
group shall be deemed to have “beneficial ownership” of all securities that such person or
group has the right to acquire (such right, an “option right”), whether such right is
exercisable immediately or only after the passage of time), directly or indirectly, of 25%
or more of the Voting Stock of the Borrower entitled to vote for members of the board of
directors or equivalent governing body of the Borrower on a fully-diluted basis (and taking
into account all such securities that such person or group has the right to acquire pursuant
to any option right);

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

     (c) any Person or two or more Persons acting in concert shall have acquired by contract
or otherwise, or shall have entered into a contract or arrangement that, upon consummation
thereof, will result in its or their acquisition of the power to exercise, directly or
indirectly, a controlling influence over the management or policies of the Borrower, or
control over the Voting Stock of the Borrower entitled to vote for members of the board of
directors or equivalent governing body of the Borrower on a fully-diluted basis (and taking into
account all such securities that such Person or group has the right to acquire pursuant to
any option right) representing 25% or more of the combined voting power of such securities; or

     (d) the Borrower ceases to own 100% of the Equity Interests of each Subsidiary which is
a Loan Party.

6

 

     Change in Law means (a) the adoption of any Law after the date of this Agreement, (b) any
change in any Law or in the interpretation or application thereof by any Governmental Authority
after the date of this Agreement or (c) compliance by any Lender or the L/C Issuer (or, for
purposes of Section 3.04(b), by any Lending Office of such Lender or by such Lender’s or the L/C
Issuer’s holding company, if any) with any request, guideline or directive (whether or not having
the force of law) of any Governmental Authority made or issued after the date of this Agreement.

     Code means the Internal Revenue Code of 1986 as amended from time to time, and the regulations
promulgated and rulings issued thereunder.

     Collateral means all property and interests in property and proceeds thereof now owned or
hereafter acquired by the Borrower, and its Subsidiaries in or upon which a Lien now or hereafter
exists in favor of the Lenders, or the Administrative Agent or Collateral Agent on behalf of the
Lenders, whether under this Agreement, the Collateral Documents, or under any other document
executed by any Borrower Affiliate and delivered to the Administrative Agent or the Lenders.

     Collateral Agent means Royal Bank in its capacity as collateral agent under any of the Loan
Documents, or any successor collateral agent.

     Collateral Documents means (a) each Guaranty, Security Agreement, each pledge agreement, the
Deposit Account Pledge Agreement, each assignment, and all other security agreements, deeds of
trust, mortgages, chattel mortgages, assignments, pledges, guaranties, financing statements,
continuation statements, extension agreements and other similar agreements or instruments executed
by the Borrower or any Subsidiary which is a Loan Party for the benefit of the Lenders now or
hereafter delivered to the Lenders, the Administrative Agent or the Collateral Agent pursuant to or
in connection with the transactions contemplated hereby, and all financing statements (or
comparable documents now or hereafter filed in accordance with the UCC or comparable Law) against
the Borrower or any Subsidiary which is a Loan Party, as debtor, in favor of the Lenders, the
Administrative Agent or the Collateral Agent for the benefit of the Lenders, as secured party, to
secure or guarantee the payment of any part of the Obligations or the performance of any other
duties and obligations of Borrower under the Loan Documents, whenever made or delivered, and (b)
any amendments, supplements, modifications, renewals, replacements, consolidations, substitutions,
restatements, and extensions of any of the foregoing.

     Commerce has the meaning specified in the Second Recital hereof.

     Compensation Period has the meaning set forth in Section 2.10(e)(ii).

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

     Consolidated Cash Flow From Operations means, for a given period the sum of (i) Consolidated
Net Income, (ii) the amount of depreciation and amortization expense deducted in determining such
Consolidated Net Income, (iii) deferred income taxes, and (iv) other non-cash items, each as
determined for such period in accordance with GAAP.

     Consolidated EBITDA means, for any period, for the Borrower and its Subsidiaries on a
consolidated basis, an amount equal to the sum of (a) Consolidated Net Income, (b) Consolidated
Interest Charges, (c) the amount of taxes, based on or measured by income, used or included in the
determination 

7

 

of such Consolidated Net Income, (d) the amount of depreciation, depletion, and
amortization expense deducted in determining such Consolidated Net Income, and (e) other non-cash
charges and expenses, including, without limitation, non-cash charges and expenses relating to Swap
Contracts or resulting from accounting convention changes, of the Borrower and its Subsidiaries on
a consolidated basis, all determined in accordance with GAAP.

     Consolidated Interest Charges means, for any period, for the Borrower and its Subsidiaries on
a consolidated basis, the sum of (a) all interest, premium payments, fees, charges and related
expenses of the Borrower and its Subsidiaries in connection with Indebtedness (including
capitalized interest), in each case to the extent treated as interest in accordance with GAAP, and
(b) the portion of rent expense of the Borrower and its Subsidiaries with respect to such period
under Capital Leases that is treated as interest in accordance with GAAP.

     Consolidated Funded Debt means, as of any date of determination, for the Borrower and its
Subsidiaries on a consolidated basis, the sum of (a) the outstanding principal amount of all
obligations and liabilities, whether current or long-term, for borrowed money (including
Obligations hereunder and Indebtedness associated with the Senior Unsecured Notes), (b) all
reimbursement obligations relating to letters of credit, (c) Capital Leases, (d) Synthetic Lease
Obligations, and (e) without duplication, all Guaranty Obligations with respect to Indebtedness of
the type specified in subsections (a) through (d) above.

     Consolidated Net Income means, for any period, for the Borrower and its Subsidiaries on a
consolidated basis, the net income or net loss of the Borrower and its Subsidiaries from continuing
operations; provided that there shall be excluded from such net income (to the extent otherwise
included therein): (a) the income (or loss) of any entity other than a Subsidiary in which the
Borrower or any Subsidiary has an ownership interest, except to the extent that any such income has
been actually received by the Borrower or such Subsidiary in the form of cash dividends or similar
cash distributions; (b) net extraordinary gains and losses, (c) any gains or losses attributable to
non-cash write-ups or write-downs of assets, (d) proceeds of any Insurance Payment other than
business interruption insurance, (e) any gain or loss, net of taxes, on the sale, retirement or
other disposition of assets (including Equity Interests of any other Person, but excluding the sale
of inventories in the ordinary course of business), and (f) the cumulative effect of a change in
accounting principles.

     Consolidated Net Worth means for the Borrower, as of any date of determination, consolidated
shareholders’ equity of the Borrower and its Subsidiaries as of that date determined in accordance with GAAP.

     Consolidated Senior Debt means, as of any date of determination, for the Borrower and its
Subsidiaries on a consolidated basis, without duplication, the sum of (a) the Outstanding Amount of
all Revolving Loans and L/C Obligations, (b) all secured Indebtedness owing by Borrower or any
Subsidiary permitted under Section 7.04, and (c) the Outstanding Amount of all obligations owed to
Lenders under Lender Hedging Agreements.

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

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

8

 

     CFSC has the meaning specified in the First Recital hereof.

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

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

     Default Rate means an interest rate equal to (a) the Base Rate plus (b) the Applicable Rate,
if any, applicable to Base Rate Loans plus (c) 2% per annum; provided, however, that with respect
to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to the interest rate
(including any Applicable Rate) otherwise applicable to such Revolving Loan plus 2% per annum, in
each case to the fullest extent permitted by applicable Laws.

     Deposit Account Pledge Agreement means that certain Restricted Account Agreement among
Borrower and the other Loan Parties, the Administrative Agent and Wells Fargo Bank, N.A. originally
dated March 17, 2006, as supplemented, amended or restated from time to time, relating to the
pledge of deposit and similar accounts held in such financial institution by the Borrower and such
other Loan Parties to the Administrative Agent, for the benefit of the Lenders, as Collateral.

     Disposition or Dispose means the sale, transfer, license or other disposition (including any
sale and leaseback transaction) of any property by any Person of property owned by such Person,
including any sale, assignment, transfer or other disposal, with or without recourse, of any notes
or accounts receivable or any rights and claims associated therewith. The terms Disposition and
Dispose shall not include any Equity Issuance.

     DLS means DLS Drilling Logistics and Services Corp., a British Virgin Islands corporation.

     Dollar and $ means lawful money of the United States.

     Domestic means, with respect to an entity, that such entity is incorporated, organized or
formed under the Laws of the United States, a state in the United States or any subdivision thereof
or the District of Columbia.

     Eligible Assignee means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, (d)
any institutional investor and (e) any other Person (other than a natural Person) approved in each
of the foregoing instances by the Administrative Agent, the L/C Issuer and, unless a Default or
Event of Default has occurred and is continuing or in connection with the settlement of a credit
derivative transaction, the Borrower (each such approval not to be unreasonably withheld,
conditioned or delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not
include the Borrower or any of its respective Affiliates or Subsidiaries.

     Employee Equity Sales means the sale of Equity Interests in the Borrower to directors,
officers, employees and consultants to the Loan Parties (whether or not under a plan).

9

 

     Environmental Law means any applicable Law that relates to (a) the condition or protection of
air, groundwater, surface water, soil, or other environmental media, (b) the environment, including
natural resources or any activity which affects the environment, (c) the regulation of any
pollutants, contaminants, wastes, substances, and Hazardous Substances, including, without
limitation, the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C.
§9601 et seq.) (“CERCLA”), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Federal Water
Pollution Control Act, as amended by the Clean Water Act (33 U.S.C. §1251 et seq.), the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. §136 et seq.), the Emergency Planning and
Community Right to Know Act of 1986 (42 U.S.C. §1100 1 et seq.), the Hazardous Materials
Transportation Act (49 U.S.C. §1801 et seq.), the National Environmental Policy Act of 1969 (42
U.S.C. §4321 et seq.), the Oil Pollution Act (33 U.S.C. §2701 et seq.), the Resource Conservation
and Recovery Act (42 U.S.C. §6901 et seq.), the Rivers and Harbors Act (33 U.S.C. §401 et seq.),
the Safe Drinking Water Act (42 U.S.C. §201 and §300f et seq.), the Solid Waste Disposal Act, as
amended by the Resource Conservation and Recovery Act of 1976 and the Hazardous and Solid Waste
Amendments of 1984 (42 U.S.C. §6901 et seq.), the Toxic Substances Control Act (15 U.S.C. §2601 et
seq.), and analogous state and local Laws, as any of the foregoing may have been and may be amended
or supplemented from time to time, and any analogous enacted or adopted Law, or (d) the Release or
threatened Release of Hazardous Substances.

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

     Equity Issuance means any issuance by the Borrower to any Person of its Equity Interests,
other than (a) any issuance of its Equity Interests pursuant to the exercise of options or
warrants, (b) any issuance of its Equity Interests pursuant to the conversion of any debt
securities to equity or the conversion of any class of equity securities to any other class of
equity securities, (c) any issuance of options or warrants relating to its Equity Interests, (d)
any issuance of its Equity Interests as consideration for all or a portion of the purchase price
for any acquisition, and (e) Employee Equity Sales.

     ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to time,
and any regulations issued pursuant thereto.

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

     ERISA Event means: (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of
ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2)
of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e)
of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a

10

 

Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate,
the treatment of a Pension Plan amendment as a termination under Sections 4041 or 4041A of ERISA,
or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan;
(e) an event or condition which might reasonably be expected to constitute grounds under Section
4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension
Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA, other
than PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any
ERISA Affiliate.

     Eurodollar Rate means for any Interest Period with respect to any Eurodollar Rate Loan:

     (a) the rate per annum equal to the rate determined by the Administrative Agent to be
the offered rate that appears on the page of the LIBOR I screen (or any successor thereto)
that displays an average British Bankers Association Interest Settlement Rate for deposits
in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to
such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period, or

     (b) if the rate referenced in the preceding subsection (a) does not appear on such page
or service or such page or service shall cease to be available, the rate per annum equal to
the rate determined by the Administrative Agent to be the offered rate on such other page or
other service that displays an average British Bankers Association Interest Settlement Rate
for deposits in Dollars (for delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time)
two Business Days prior to the first day of such Interest Period, or

     (c) if the rates referenced in the preceding subsections (a) and (b) are not available,
the rate per annum determined by the Administrative Agent as the rate of interest (rounded
upward to the next 1/100th of 1%) at which deposits in Dollars for delivery on the first day
of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate
Loan being made, continued or converted by the Administrative Agent and with a term
equivalent to such Interest Period would be offered by the Administrative Agent’s London
Branch to major banks in the offshore Dollar market at their request at approximately 11:00
a.m. (London time) two Business Days prior to the first day of such Interest Period.

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

     Event of Default means any of the events or circumstances specified in Article VIII.

     Evergreen Letter of Credit has the meaning specified in Section 2.13(b)(iii).

     Existing Letters of Credit means: (i) that certain standby letter of credit no. 1185/S22759
issued by Royal Bank to National Union Fire Insurance Company, as beneficiary, for the account of
Borrower in the face amount of $630,250.00 having an expiration date of March 31, 2008; (ii) that
certain standby letter of credit no. 1185/S22959 issued by Royal Bank to National Union Fire
Insurance Company, as beneficiary, for the account of Borrower in the face amount of $1,403,000.00 having an
expiration date of April 1, 2008; (iii) that certain standby letter of credit no. 1185/S23016
issued by Royal Bank to US Bank

11

 

National Association, as beneficiary, for the account of Borrower in the face amount of $769,392.00
having an expiration date of August 10, 2007; (iv) that certain standby letter of credit no.
1185/S23018 issued by Royal Bank to US Bank National Association, as beneficiary, for the account
of Borrower in the face amount of $1,876,928.64 having an expiration date of August 10, 2007; (v)
that certain standby letter of credit no. 1185/S23017 issued by Royal Bank to US Bank National
Association, as beneficiary, for the account of Borrower in the face amount of $1,495,620.00 having
an expiration date of August 10, 2007; and (vi) that certain standby letter of credit no.
1185/S23019 issued by Royal Bank to US Bank National Association, as beneficiary, for the account
of Borrower in the face amount of $2,991,205.00 having an expiration date of August 10, 2007.

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

     First Amended and Restated Credit Agreement has the meaning specified in the Fourth Recital
hereof.

     Fiscal Year means each year beginning January 1st and ending the following December
31st.

     Fixed Asset Coverage Ratio means as of any determination date, the ratio derived by dividing
the orderly liquidation value of the Borrower’s and its Subsidiaries’ domestic fixed assets (as
determined by the most recently delivered asset appraisals delivered to the Administrative Agent
pursuant to Section 6.02(e) or (f)) on which the Collateral Agent, for the benefit of the Lenders,
holds a perfected, first priority Lien divided by the sum of the Outstanding Amount on such date of
the Revolver Principal Debt.

     Foreign when used in connection with a Subsidiary means a Subsidiary other than a Domestic
Subsidiary.

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

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

     GAAP means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or such
other principles as may be approved by a significant segment of the accounting profession, that are
applicable to the circumstances as of the date of determination, consistently applied. If at
any time any change in GAAP would affect the computation of any financial ratio or requirement set
forth in any Loan

12

 

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

     Governmental Authority means any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body, court, administrative
tribunal, central bank or other legal entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government.

     Guarantors means any Person and every present and future Domestic Subsidiary of Borrower which
undertakes to be liable for all or any part of the Obligations by execution of a Guaranty, or otherwise.

     Guaranty means collectively a guaranty in form and substance satisfactory to the
Administrative Agent now or hereafter executed by any Guarantor in favor of the Administrative
Agent on behalf of the Lenders guaranteeing the Obligations.

     Guaranty Obligation means, as to any Person, (a) any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
payment obligation of another Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including, without limitation, any obligation of such Person, direct or indirect,
(i) to purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or other payment obligation, (ii) to purchase or lease property, securities or
services for the purpose of assuring the obligee in respect of such Indebtedness or other payment
obligation of the payment of such Indebtedness or other payment obligation, (iii) to maintain
working capital, equity capital or any other financial statement condition or liquidity of the
primary obligor so as to enable the primary obligor to pay such Indebtedness or other payment
obligation, or (iv) entered into for the purpose of assuring in any other manner the obligees in
respect of such Indebtedness or other payment obligation of the payment thereof or to protect such
obligees against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of
such Person securing any Indebtedness or other payment obligation of any other Person, whether or
not such Indebtedness or other payment obligation is assumed by such Person; provided, however,
that the term “Guaranty Obligation” shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. The amount of any Guaranty Obligation shall be
deemed to be the lesser of (a) an amount equal to the stated or determinable outstanding amount of
the related primary obligation and (b) the maximum amount for which such guaranteeing Person may be
liable pursuant to the terms of the instrument embodying such Guaranty Obligation, unless the
outstanding amount of such primary obligation and the maximum amount for which such guaranteeing
Person may be liable are not stated or determinable, in which case the amount of such Guaranty
Obligation shall be the maximum reasonably anticipated liability in respect thereof as determined
by the guaranteeing Person in good faith.

     Hazardous Substance means any substance that poses a threat to, or is regulated to protect,
human health, safety, public welfare, or the environment, including without limitation (a) any
“hazardous substance,” “pollutant” or “contaminant,” and any “petroleum” or “natural gas liquids”
as those terms are

13

 

defined or used under Section 101 of CERCLA, (b) “solid waste” as defined by the federal Solid
Waste Disposal Act (42 U. S.C. §§ 6901 et seq.), (c) asbestos or a material containing asbestos,
(d) any material that contains lead or lead-based paint, (e) any item or equipment that contains or
is contaminated by polychlorinated biphenyls, (f) any radioactive material, (g) urea formaldehyde,
(h) putrescible materials, (i) infectious materials, (j) toxic microorganisms, including mold, or
(k) any substance the presence or Release of which requires reporting, investigation or remediation
under any Environmental Law.

     Honor Date has the meaning set forth in Section 2.13(c)(i).

     Indebtedness means, as to any Person at a particular time, all of the following:

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

     (b) the face amount of all letters of credit (including standby and commercial),
banker’s acceptances, surety bonds, and similar instruments issued for the account of such
Person and, without duplication, all drafts drawn and unpaid thereunder;

     (c) net obligations under any Swap Contract in an amount equal to (i) if such Swap
Contract has been closed out, the termination value thereof, or (ii) if such Swap Contract
has not been closed out, the mark-to-market value thereof determined on the basis of readily
available quotations provided by any recognized dealer in such Swap Contract;

     (d) whether or not so included as liabilities in accordance with GAAP, all obligations
of such Person to pay the deferred purchase price of property or services, other than trade
accounts payable in the ordinary course of business not overdue by more than 90 days, and
indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or
being purchased by such Person (including indebtedness arising under conditional sales or
other title retention agreements), whether or not such indebtedness shall have been assumed
by such Person or is limited in recourse;

     (e) Capital Leases and Synthetic Lease Obligations;

     (f) all obligations of such Person to purchase, redeem, retire, defease or otherwise
make any payment in respect of any Equity Interests in such Person or any other Person or
any warrants, rights or options to acquire such Equity Interests, valued, in the case of any
redeemable preferred Equity Interests, at the greater of its voluntary or involuntary
liquidation preference plus accrued and unpaid dividends; and

     (g) all Guaranty Obligations of such Person in respect of any of the foregoing.

     For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture in which such Person is a general partner, unless such Indebtedness is
expressly made non-recourse to such Person except for customary exceptions acceptable to the
Required Lenders. The amount of any Capital Lease or Synthetic Lease Obligation as of any date
shall be deemed to be the amount of Attributable Indebtedness in respect thereof as of such date.
In addition, the determination of Indebtedness of the Borrower and/or its Subsidiaries shall be made on a
consolidated basis without taking into account any Indebtedness owed by any such Person to any other such Person.

14

 

     Indemnified Liabilities has the meaning set forth in Section 10.05.

     Indemnitees has the meaning set forth in Section 10.05.

     Insurance Payment means any payment by an insurance company or other surety on account of
property damage or casualty loss to any property of the Borrower or any of its Subsidiaries.

     Interest Coverage Ratio means, as of any date of determination, the ratio of (a) Consolidated
EBITDA for the period of the four prior fiscal quarters ending on such date to (b) the sum of (i)
Consolidated Interest Charges during such period and (ii) imputed interest charges on Synthetic
Leases, of the Borrower and its Subsidiaries during such period, if any.

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

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

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

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

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

     Investment means, as to any Person, any acquisition or investment by such Person, whether by
means of (a) the purchase or other acquisition of Equity Interest of another Person, (b) a loan,
advance or capital contribution to, guaranty of debt of, or purchase or other acquisition of any
other debt or Equity Interest in, another Person, including any partnership or joint venture
interest in such other Person, or (c) the purchase or other acquisition (in one transaction or a
series of transactions) of assets of another Person that constitute a business unit. For purposes
of covenant compliance, the amount of any Investment shall be the amount actually invested, without
adjustment for subsequent increases or decreases in the value of such Investment, less all returns
of principal or equity thereon, and shall, if made by the transfer or exchange of property other
than cash be deemed to have been made in an amount equal to the fair market value of such property.

     Involuntary Disposition means any loss of, damage to or destruction of, or any condemnation or
other taking for public use of, any property of the Borrower or any Subsidiary.

15

 

     IRS means the United States Internal Revenue Service.

     Laws means, collectively, all applicable international, foreign, federal, state and local
statutes, treaties, rules, regulations, ordinances, codes and administrative or judicial precedents
or authorities, including the interpretation or administration thereof by any Governmental
Authority charged with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, licenses, authorizations and permits of, any Governmental Authority.

     L/C Advance means, with respect to each Lender, such Lender’s participation in any L/C
Borrowing in accordance with its Pro Rata Share.

     L/C Borrowing means an extension of credit resulting from a drawing under any Letter of Credit
which has not been reimbursed on the date when made or refinanced as a Borrowing.

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

     L/C Issuer means Royal Bank in its capacity as issuer of Letters of Credit hereunder, or any
successor issuer of Letters of Credit hereunder.

     L/C Obligations means, as at any date of determination, the aggregate undrawn face amount of
all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts, including all L/C Borrowings.

     Lender has the meaning specified in the introductory paragraph hereto and, as the context
requires, includes the L/C Issuer.

     Lender Hedging Agreement means a Swap Contract between the Borrower or any Subsidiary and a
Lender or an Affiliate of a Lender.

     Lending Office means, as to any Lender, the office or offices of such Lender set forth on its
Administrative Details Form, or such other office or offices as a Lender may from time to time
notify the Borrower and the Administrative Agent.

     Letter of Credit means the Existing Letters of Credit and any standby letter of credit issued
hereunder.

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

     Letter of Credit Expiration Date means the day that is five days prior to the Maturity Date
(or, if such day is not a Business Day, the next preceding Business Day).

     Letter of Credit Sublimit means an amount equal to the lesser of (i) the Aggregate Revolving
Commitment and (ii) $15,000,000.

     Leverage Ratio means, for the Borrower and its Subsidiaries on a consolidated basis, the
ratio, as calculated based on the quarterly Compliance Certificate most recently delivered pursuant to Section

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6.02(a) of (a) Cash Adjusted Consolidated Funded Debt as of the determination date to (b)
Consolidated EBITDA for the period of the four fiscal quarters ending on such date, or if such date
is not the last day of a fiscal quarter, ending on the last day of the fiscal quarter most recently ended.

     Lien means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), charge, or preference, priority or other security interest or
preferential arrangement of any kind or nature whatsoever to secure or provide for payment of any
obligation of any Person (including any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the foregoing, and the
filing of any financing statement under the UCC or comparable Laws of any jurisdiction), including
the interest of a purchaser of accounts receivable.

     Loan Documents means this Agreement, each Revolver Note, each of the Collateral Documents, the
Agent/Arranger Fee Letter, each Borrowing Notice, each Compliance Certificate, each Subordination
Agreement, each Letter of Credit Application, and each other agreement, document or instrument
delivered by the Borrower or any of its Subsidiaries from time to time in connection with this
Agreement and the Revolver Notes.

     Loan Party means each of the Borrower, each Guarantor, and each other entity that is an
Affiliate of the Borrower that executes one or more Loan Documents.

     Master Agreement has the meaning specified in the definition of Swap Contract.

     Material Adverse Effect means: (a) a material adverse change in, or a material adverse effect
upon, the operations, business, properties or condition (financial or otherwise) of the Borrower
and its Subsidiaries taken as a whole; (b) a material impairment of the ability of the Borrower, or
any other Loan Party to perform their material obligations under the Loan Documents to which it is
a party; or (c) a material adverse effect upon the legality, validity, binding effect or
enforceability against the Borrower or any other Loan Party of any Loan Documents or the rights and
remedies of Agent or any Lender thereunder.

     Material Agreement means each agreement set forth in Schedule 5.23.

     Maturity Date means the earlier of (a) April 26, 2012, or (b) such earlier effective date of
any other termination, cancellation, or acceleration of the Aggregate Revolving Commitment under this Agreement.

     Maximum Amount and Maximum Rate respectively mean, for each Lender, the maximum non-usurious
amount and the maximum non-usurious rate of interest which, under applicable Law, such Lender is
permitted to contract for, charge, take, reserve, or receive on the Obligations.

     Moody’s means Moody’s Investors Service, Inc.

     Multiemployer Plan means any employee benefit plan of the type described in Section 4001(a)(3)
of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions,
or during the preceding three calendar years, has made or been obligated to make contributions.

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     Net Cash Proceeds means (i) any Insurance Payment and (ii) cash received in connection with
any Disposition (including any cash received by way of deferred payment as and when received), in
each case received by the Borrower or any of its Subsidiaries in connection with and as
consideration therefor, on or after the date of consummation of such transaction, after (a)
deduction of taxes payable in connection with or as a result of such transaction, and (b) payment
of all usual and customary brokerage commissions and all other reasonable fees and expenses related
to such transaction (including, without limitation, reasonable attorneys’ fees and closing costs
incurred in connection with such transaction).

     Nonrenewal Notice Date has the meaning specified in Section 2.13(b)(iii).

     Obligations means all advances to, and debts, liabilities, obligations, covenants and duties
of, any Loan Party arising under any Loan Document, whether direct or indirect (including those
acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter
arising and including interest that accrues after the commencement by or against any Loan Party of
any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding. In
addition, all references to the “Obligations” in the Collateral Documents and in Sections 2.10(d),
2.12 and 10.09 of this Agreement shall, in addition to the foregoing, also include all present and
future indebtedness, liabilities, and obligations (and all renewals and extensions thereof or any
part thereof now or hereafter owed to any Lender or any Affiliate of a Lender arising pursuant to
any Lender Hedging Agreement and Banking Service Obligations.

     Obligor means the Borrower or any other Person (other than the Administrative Agent or any
Lender) obligated under any Loan Document.

     Organization Documents means, (a) with respect to any corporation, the certificate or articles
of incorporation and the bylaws, (b) with respect to any limited liability company, the certificate
of formation and operating agreement or limited liability company agreement; and (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation and any agreement, instrument, filing or notice
with respect thereto filed in connection with its formation with the secretary of state or other
department in the state of its formation, in each case as amended from time to time.

     Original Credit Agreement has the meaning specified in the First Recital hereof.

     Other Taxes has the meaning specified in Section 3. 01(b).

     Outstanding Amount on any date (i) with respect to Revolving Loans, means the aggregate
principal amount thereof after giving effect to any Borrowings and prepayments or repayments
occurring on such date, (ii) with respect to any L/C Obligations, the amount of such L/C
Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and
any other changes in the aggregate amount of the L/C Obligations as of such date, including as a
result of any reimbursements of outstanding unpaid drawings under any Letters of Credit or any
reductions in the maximum amount available for drawing under Letters of Credit taking effect on
such date, (iii) for purposes of Section 2.10(d) with respect to Obligations under a Lender Hedging
Agreement, means the amount then due and payable under such Lender Hedging Agreement, and (iv) for
purposes of Section 2.10(d) with respect to Obligations under a Banking Service Obligation, means
the amount then due and payable under such Banking Service Obligation.

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     Participant has the meaning specified in Section 10.07(d).

     PBGC means the Pension Benefit Guaranty Corporation.

     Pension Plan means any “employee pension benefit plan” (as such term is defined in Section
3(2)(A) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is
sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any
ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple
employer plan (as described in Section 4064(a) of ERISA) has made contributions at any time during
the immediately preceding five plan years.

     Permitted Acquisitions means any Acquisition by the Borrower or a Subsidiary of the Borrower
resulting in ownership of assets inside the United States, or of Equity Interests in a Domestic
Person; provided, however, that the following requirements have been satisfied:

     (i) if such Acquisition results in the Borrower’s ownership of a Subsidiary, the
Borrower shall have complied with the requirements of Sections 6.13 and 6.14 as of the date
of such Acquisition;

     (ii) with respect to Acquisitions involving acquisitions of an Equity Interest, such
Acquisition shall have been approved or consented to by the board of directors or similar
governing entity of the Person being acquired; and

     (iii) as of the closing of such Acquisition no Default or Event of Default shall exist
or occur as a result of, and after giving effect to, such Acquisition.

     Permitted Liens means Liens permitted under Section 7.01 as described in such Section.

     Person means any individual, trustee, corporation, general partnership, limited partnership,
limited liability company, joint stock company, trust, unincorporated organization, bank, business
association, firm, joint venture or Governmental Authority.

     Plan means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA)
established by the Borrower or any ERISA Affiliate.

     Pro Rata Share means, at any date of determination, for any Lender, the percentage (carried
out to the ninth decimal place) that its Revolving Commitment bears to the Aggregate Revolving Commitment.

     Reduction Amount has the meaning set forth in the definition of “Triggering Sale”.

     Register has the meaning set forth in Section 10.07(c).

     Reinvested means used (or committed by the Borrower for use) for Capital Expenditures or
Acquisitions in connection with the oil field services business of the Borrower or any of its Domestic Subsidiaries.

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     Reinvestment Certificate means with respect to any Triggering Sale, a certificate of a
Responsible Officer of the Borrower delivered pursuant to Section 6.02(d) detailing how the
Reduction Amount corresponding to such Triggering Sale has been Reinvested and the portion of such
Reduction Amount which has not been Reinvested.

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

     Release means any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping, disposal, deposit, dispersal, migrating, or other movement into the air, ground, or surface water, or soil.

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

     Request for Credit Extension means (a) with respect to a Borrowing, conversion or continuation
of Revolving Loans, a Borrowing Notice, and (b) with respect to an L/C Extension, a Letter of Credit Application.

     Required Lenders means on any date of determination on and after the Second Amended and
Restated Closing Date, the Administrative Agent together with Lenders holding more than 50% of the Outstanding Amount of Revolving Loans.

     Responsible Officer means the president, chief executive officer, executive vice president,
senior vice president, vice president, chief financial officer, controller, treasurer, assistant
treasurer, secretary or general counsel of a Person. Any document delivered hereunder that is
signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been
authorized by all necessary corporate, partnership, limited liability company, and/or other action
on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have
acted on behalf of such Loan Party.

     Restricted Payment by a Person means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interest in such Person, or any payment
(whether in cash, securities or other property), including any sinking fund or similar deposit on
account of the purchase, redemption, retirement, acquisition, cancellation or termination of any
such Equity Interest or of any option, warrant or other right to acquire any such Equity Interest.

     Revolver Facility means the revolving credit facility as described in and subject to the
limitations set forth in Section 2.01.

     Revolver Facility Committed Sum means for any Lender with respect to the Revolver Facility, at
any date of determination occurring prior to the Maturity Date, the amount stated beside such
Lender’s name under the heading for the Revolving Commitment on the most-recently amended Schedule
2.01 to this Agreement (which amount is subject to increase, reduction, or cancellation in
accordance with the Loan Documents).

     Revolver Note means a promissory note of Borrower in substantially the form of Exhibit B,
evidencing the obligation of Borrower to repay the Revolving Loans and all renewals and extensions
of all or any part thereof and “Revolver Notes” refers to all such promissory notes.

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     Revolver Principal Debt means, on any date of determination, the aggregate unpaid principal
balance of all Revolving Loans under the Revolver Facility.

     Revolving Commitment means as to each Lender, its obligation to make Revolving Loans to the
Borrower pursuant to Section 2.01 and to purchase participations in L/C Obligations pursuant to
Section 2.13, in an aggregate principal amount at any one time outstanding not to exceed, when
aggregated with the Revolving Loans made pursuant to Section 2.01, its Revolver Facility Committed
Sum, in each case as such amount may be reduced or adjusted from time to time in accordance with
this Agreement (collectively, the “Aggregate Revolving Commitment”).

     Revolving Loan means an extension of credit by a Lender to the Borrower pursuant to Section
2.01.

     Rights means rights, remedies, powers, privileges, and benefits.

     Royal Bank has the meaning specified in the First Recital hereof.

     S&P means Standard & Poor’s.

     Sarbanes-Oxley means Pub. L. 107-204 (signed into law July 30, 2002).

     Second Amended and Restated Closing Date means the first date all the conditions precedent in
Section 4.01 and Section 4.03 are satisfied or waived (or, in the case of Sections 4.01(d) and (e),
waived by the Person entitled to receive the applicable payment).

     Security Agreements means, collectively, the security agreements, or similar instruments,
executed by any of the Loan Parties in favor of the Administrative Agent or Collateral Agent for
the benefit of the Lenders, in form and substance satisfactory to the Administrative Agent and all
supplements, assignments, amendments, and restatements thereto (or any agreement in substitution
therefor), and “Security Agreement” means each of such Security Agreements.

     Senior Leverage Ratio means, for the Borrower and its Subsidiaries on a consolidated basis,
the ratio of (a) Consolidated Senior Debt as of the determination date to (b) Consolidated EBITDA
for the period of the four fiscal quarters ending on such date, or if such date is not the last day
of a fiscal quarter, ending on the last day of the fiscal quarter most recently ended.

     Senior Unsecured Notes collectively means (i) up to $255 million in aggregate principal amount
of 9.0% Senior Notes due 2014 issued by the Borrower pursuant to the Indenture dated January 18,
2006 among the Borrower, its Subsidiaries party thereto and Wells Fargo Bank, N.A., as trustee and
(ii) up to $250 million aggregate principal amount of 8.5% Senior Notes due 2017 issued by the
Borrower pursuant to the Indenture dated January 29, 2007 among the Borrower, its Subsidiaries
party thereto and Wells Fargo Bank, N.A., as trustee..

     Subordinated Indebtedness means and any Indebtedness of Borrower or any of its Subsidiaries
subordinated to the Obligations pursuant to a Subordination Agreement in form and substance
satisfactory to the Administrative Agent.

21

 

     Subordination Agreements means any subordination agreement with Borrower or any of its
Subsidiaries subordinating any Indebtedness to the Obligations pursuant to a subordination
agreement in form and substance satisfactory to the Administrative Agent and Subordination
Agreement refers to any one of the foregoing.

     Subsidiary of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which more than 50% of the Voting Stock at the time
beneficially owned, or the management of which is otherwise controlled, directly, or indirectly
through one or more intermediaries, or both, by such Person. Unless otherwise specified, all
references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or
Subsidiaries of the Borrower.

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

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

     Synthetic Lease Obligation means the monetary obligation of a Person under (a) a so-called
synthetic or tax retention lease, or (b) an agreement for the use or possession of property
creating obligations that do not appear on the balance sheet of such Person but which are
depreciated for tax purposes by such Person. The amount of any Synthetic Lease Obligation as of
any date shall be deemed to be the amount of Attributable Indebtedness in respect thereof as of such date.

     Taxes has the meaning set forth in Section 3.01(a).

     Threshold Amount at any time means an amount equal to ten (10%) of the Borrower’s consolidated
assets measured as of the close of the then most recent fiscal quarter end.

     Triggering Sale means receipt of any Insurance Payment and any Disposition (including sales of
stock or other equity interests of Subsidiaries) (other than a Disposition permitted by Section
7.07(a), (b) or (c)) by any Loan Party to any other Person (other than to the Borrower or to a Wholly-Owned
Domestic Subsidiary of the Borrower) with respect to which the Net Cash Proceeds realized by any Loan

22

 

Party for such Disposition and from any Insurance Payments, when aggregated with the Net Cash
Proceeds from all such other Dispositions by the Loan Parties occurring since the Second Amended
and Restated Closing Date and all Insurance Payments received by the Loan Parties since the Second
Amended and Restated Closing Date, equals or exceeds the Threshold Amount. The portion of the Net
Cash Proceeds in excess of the Threshold Amount is herein called the “Reduction Amount.”

     Triggering Sale Certificate means with respect to any Triggering Sale, a certificate of a
Responsible Officer of the Borrower delivered pursuant to Section 6.02(c) identifying such
Triggering Sale and specifying the date of receipt by Borrower or any Subsidiary of Net Cash
Proceeds realized from a Disposition or from any Insurance Payment and specifying the amount
thereof and the Reduction Amount, if any.

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

     UCC means the Uniform Commercial Code as in effect in the State of Texas or other applicable
jurisdiction.

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

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

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

     Unreimbursed Amount has the meaning set forth in Section 2.13(c)(i).

     Voting Stock means the capital stock (or equivalent thereof) of any class or kind, of a
Person, the holders of which are entitled to vote for the election of directors, managers, or other
voting members of the governing body of such Person.

     Weighted Average Life to Maturity means in connection with any refinancing, refunding, renewal
or extension of the Senior Unsecured Notes (or any series of such notes) at any date, the number of
year obtained by dividing:

     (i) the sum of the products obtained by multiplying (a) the amount of each then remaining
installment, sinking fund, serial maturity or other required payments of principal including
payment at final maturity, in respect thereof, by (b) the number of years (calculated to the
nearest one-twelfth) that will elapse between such date and the making of such payment; by

     (ii) the then outstanding principal amount of such Senior Unsecured Notes being refinanced,
refunded, renewed or extended.

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     Wholly-Owned when used in connection with a Person means any Subsidiary of such Person of
which all of the issued and outstanding Equity Interests (except shares required as directors’
qualifying shares) are owned by such Person or one or more of its Wholly-Owned Subsidiaries.

     1.02 Other Interpretive Provisions.

     (a) The meanings of defined terms are equally applicable to the singular and plural forms of
the defined terms.

     (b) (i) The words “herein” and “hereunder” and words of similar import when used in any Loan
Document shall refer to such Loan Document as a whole and not to any particular provision thereof.

     (ii) Unless otherwise specified herein, Article, Section, Exhibit and Schedule
references are to this Agreement.

     (iii) The term “including” is by way of example and not limitation.

     (iv) The term “documents” includes any and all instruments, documents, agreements,
certificates, notices, reports, financial statements and other writings, however evidenced.

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

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

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

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

     1.05 References to Agreements and Laws. Unless otherwise expressly provided herein, (a) references
to agreements (including the Loan Documents) and other contractual instruments shall be deemed to
include all subsequent amendments, restatements, extensions, supplements and other modifications
thereto, but only to the extent that such amendments, restatements, extensions, supplements and
other modifications are not prohibited by any Loan Document; and (b) references to any Law shall include all statutory and
regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Law.

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ARTICLE II.
THE REVOLVING COMMITMENT AND BORROWINGS

     2.01 Revolving Loans. Subject to and in reliance upon the terms, conditions, representations,
and warranties in the Loan Documents, each Lender severally, but not jointly, agrees to make
revolving loans (each such loan a “Revolving Loan”) to Borrower from time to time on any Business
Day during the period from the Second Amended and Restated Closing Date to the Maturity Date, in an
aggregate amount not to exceed at any time outstanding the amount of such Lender’s Pro Rata Share
of one or more Revolving Loan Borrowings not to exceed, when aggregated with the Outstanding Amount
of the L/C Obligations, such Lender’s Revolving Commitment. Revolving Loan Borrowings may be
repaid and reborrowed from time to time in accordance with the terms and provisions of the Loan
Documents; provided that, each such Revolving Loan Borrowing must occur on a Business Day and no
later than the Business Day immediately preceding the Maturity Date. Revolving Loans may be Base
Rate Loans or Eurodollar Rate Loans, as further provided herein; provided, however, all Revolving
Loan Borrowings made on the Second Amended and Restated Closing Date shall be made as Base Rate Loans.

     2.02 Borrowings, Conversions and Continuations of Revolving Loans.

     (a) Each Borrowing, each conversion of Revolving Loans from one interest rate Type to the
other, and each continuation of Revolving Loans as the same interest rate Type shall be made upon
the Borrower’s irrevocable notice to the Administrative Agent, which may be given by telephone.
Each such notice must be received by the Administrative Agent not later than 11:00 a.m., New York
time, three Business Days prior to the requested date of any Borrowing of, conversion to or
continuation of Eurodollar Rate Loans, and one Business Day prior to the requested date of any
Borrowing of, conversion to or continuation of Base Rate Loans. Each such telephonic notice must
be confirmed promptly by delivery to the Administrative Agent of a written Borrowing Notice,
appropriately completed and signed by an authorized officer of the Borrower. Each Borrowing of,
conversion to or continuation of Eurodollar Rate Loans shall be in a principal amount of $500,000
or a whole multiple of $500,000 in excess thereof. Each Borrowing of or conversion to Base Rate
Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof.
Each Borrowing Notice (whether telephonic or written) shall specify (i) whether the Borrower is
requesting a Borrowing, a conversion of Revolving Loans from one interest rate Type to the other,
or a continuation of Revolving Loans as the same interest rate Type, (ii) the requested date of the
Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii)
the principal amount of Revolving Loans to be borrowed, converted or continued, (v) the interest
rate Type of Revolving Loans to be borrowed or to which existing Revolving Loans are to be
converted, and (vi) if applicable, the duration of the Interest Period with respect thereto. If
the Borrower fails to specify the interest rate Type for a Revolving Loan in a Borrowing Notice or
if the Borrower fails to give a timely notice requesting a conversion or continuation, then the
applicable Revolving Loans shall be made or continued as, or converted to, Base Rate Loans. Any
such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest
Period then in effect with respect to the applicable Eurodollar Rate Loans. If the Borrower
requests a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such
Borrowing Notice, but fails to specify an Interest Period, it will be deemed to have specified an
Interest Period of one month.

     (b) Following receipt of a Borrowing Notice, the Administrative Agent shall promptly notify
each Lender of its Pro Rata Share of the applicable Revolving Loans, and if no timely notice of a
conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each
Lender of the details of any automatic conversion to Base Rate Loans described in the preceding 

25

 

subsection. In the case of a Borrowing, each Lender shall make the amount of its Revolving Loan
available to the Administrative Agent in immediately available funds at the Administrative Agent’s
Office not later than 11:00 a.m., New York time, on the Business Day specified in the applicable
Borrowing Notice. Upon satisfaction of the applicable conditions set forth in Section 4.01 and
Section 4.03 (and in the case of a Revolving Loan to fund a Permitted Acquisition, Section 4.04),
the Administrative Agent shall make all funds so received available to the Borrower in like funds
as received by the Administrative Agent either by (i) crediting the account of the Borrower on the
books of the Administrative Agent with the amount of such funds or (ii) wire transfer of such
funds, in each case in accordance with instructions provided to the Administrative Agent by the
Borrower; provided, however, that if, on the date of the Borrowing there are L/C Borrowings
outstanding, then the proceeds of such Borrowing shall be applied, first, to the payment in full of
any such L/C Borrowings, and second, to the Borrower as provided above.

     (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted
only on the last day of the Interest Period for such Eurodollar Rate Loan. During the existence of
a Default or Event of Default, no Revolving Loans may be requested as, converted to or continued as
Eurodollar Rate Loans without the consent of the Required Lenders, and the Required Lenders may
demand that any or all of the then outstanding Eurodollar Rate Loans be converted to Base Rate
Loans at the end of the then current Interest Period.

     (d) The Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Eurodollar Rate Loan upon determination of such interest rate. The
determination of the Eurodollar Rate by the Administrative Agent shall be conclusive in the absence
of manifest error.

     (e) After giving effect to all Borrowings, all conversions of Revolving Loans from one
interest rate Type to the other, and all continuations of Revolving Loans as the same interest rate
Type, there shall not be more than six (6) Interest Periods in effect at any given time with
respect to Revolving Loans.

     2.03 Prepayments.

     (a) Optional Prepayments. The Borrower may, upon notice to the Administrative Agent,
at any time or from time to time voluntarily prepay in whole or in part Revolving Loans outstanding
under the Revolver Facility without premium or penalty; provided that (i) such notice must be
received by the Administrative Agent not later than 11:00 a.m., New York time, (A) three Business
Days prior to any date of prepayment of Eurodollar Rate Loans, and (B) one Business Day prior to
any date of prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate Loans shall be in
a principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof; and (iii) any
prepayment of Base Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of
$500,000 in excess thereof. Each such notice shall specify the date and amount of such prepayment
and the Type(s) of Revolving Loans and the interest rate Type(s) to be prepaid. The Administrative
Agent will promptly notify each Lender of its receipt of each such notice, and of such Lender’s Pro
Rata Share of such prepayment. If such notice is given by the Borrower, the Borrower shall make
such prepayment and the payment amount specified in such notice shall be due and payable on the
date specified therein. Any prepayment of a Eurodollar Rate Loan shall be accompanied by all
accrued interest thereon, together with any additional amounts required pursuant to Section 3.05.
Each such prepayment shall be applied to the Revolving Loans of the Lenders in accordance with
their respective Pro Rata Shares.

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     Unless a Default or Event of Default has occurred and is continuing or would arise as a result
thereof, any payment or prepayment of the Revolving Loans (including prepayments pursuant to
Section 2.03(b)) may be reborrowed by Borrower, subject to the terms and conditions hereof.

     (b) Mandatory Prepayments from Net Cash Proceeds.

     (i) If any portion of the Reduction Amount from any Triggering Sale (including any
deferred purchase price therefor) has not been Reinvested within one hundred eighty (180)
days from the receipt by Borrower or any Subsidiary of such Reduction Amount (including
receipt of any deferred payments for any such Triggering Sale or portion thereof, if and
when received), then on the Business Day following such one hundred eightieth (180th) day an
amount equal to the portion of the Reduction Amount that is not so Reinvested shall be
applied as provided in Section 2.03(b)(iii). Net Cash Proceeds from Insurance Payments and
Dispositions that equal, when aggregated with Net Cash Proceeds from all Insurance Payments
and Dispositions since the Second Amended and Restated Closing Date, an amount less than the
Threshold Amount shall not be required to be applied pursuant to Section 2.03(b)(iii).

     (ii) Upon receipt by Borrower or any Subsidiary of any Reduction Amount, the Borrower
shall deliver a Triggering Sale Certificate to the Administrative Agent and each Lender
pursuant to Section 6.02(c). . If such Reduction Amount has not been Reinvested within one
hundred eighty (180) days following its receipt by Borrower or any Subsidiary, on the
Business Day following such one hundred eightieth (180th) day, the Borrower shall
deliver to the Administrative Agent a certificate from a Responsible Officer of the
Borrower demonstrating pro forma compliance with the Fixed Asset Coverage Ratio covenant set
forth in Section 7.19(c) after giving effect to all Triggering Sales.

     (iii) Application of Mandatory Prepayments. All amounts required to be paid
pursuant to Section 2.03(b)(i) shall be applied as follows:

     First, to the payment of any L/C Borrowing;

     Second, to the payment of any unpaid fees or expenses of the Administrative
Agent;

     Third, to the Revolving Loan (without a corresponding reduction in the
Aggregate Revolving Commitment); and

     Fourth, after all Revolving Loans have been repaid and if any Default or any
Event of Default has occurred and is continuing, to Cash Collateralize L/C
Obligations.

     Within the parameters of the applications set forth above, prepayments shall be applied first
to Base Rate Loans and then to Eurodollar Rate Loans in direct order of Interest Period maturities;
provided, however, unless a Default or Event of Default has occurred and is continuing or would
arise as a result thereof, any prepayment may be reborrowed by Borrower, subject to the terms and
conditions hereof. Any amounts used to Cash Collateralize the L/C Obligations pursuant to clause
Fourth above shall be released to the Borrower when all Defaults or Events of Default referred to in said clause are no longer continuing.

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     (c) Prepayments by Reason of Aggregate Revolving Commitment Exceeded. If on any date
the Outstanding Amount of all Revolving Loans and L/C Obligations shall exceed the Aggregate
Revolving Commitment, then the Borrower shall immediately make mandatory prepayments of Revolving
Loans equal to such excess, and if any such excess remains after such prepayments, to the extent of
such excess the Borrower shall immediately Cash Collateralize the L/C Obligations.

     (d) Prepayments: Interest/Funding Loss. All prepayments under this Section 2.03 shall
be subject to Section 3.05, but otherwise without premium or penalty, and shall be accompanied by
interest on the principal amount prepaid through the date of prepayment.

     2.04 Reduction or Termination of Commitments. The Borrower may, upon notice to the
Administrative Agent terminate the Revolving Commitment prior to the Maturity Date to an amount not
less than the sum of the Outstanding Amount of the then existing (a) Revolver Principal Debt and
(b) L/C Obligations; provided that (i) any such notice shall be received by the Administrative
Agent not later than 11:00 a.m., five Business Days prior to the date of termination or reduction,
and (ii) any such partial reduction shall be in an aggregate amount of $1,000,000 or any whole
multiple of $500,000 in excess thereof. The Administrative Agent shall promptly notify the
Lenders of any such notice of reduction or termination. Once reduced in accordance with this
Section, the Revolving Commitment may not be increased. Any reduction of the Revolving Commitment
shall be applied to the corresponding Revolving Commitment of each Lender according to its Pro Rata
Share. All commitment fees on the portion of the Revolving Commitment so terminated which have
accrued to the effective date of any termination of the Revolving Commitment shall be paid on the
effective date of such termination.

     2.05 Repayment of Revolving Loans. The Borrower shall repay to the Lenders on the
Maturity Date the aggregate Revolver Principal Debt outstanding on such date.

     2.06 Interest.

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

     (b) While any Event of Default exists or after acceleration (i) the Borrower shall pay
interest on the principal amount of all outstanding Obligations at a fluctuating interest rate per
annum at all times equal to the Default Rate to the fullest extent permitted by applicable Law, and
(ii) accrued and unpaid interest on past due amounts (including interest on past due interest)
shall be due and payable upon demand.

     (c) Interest on each Revolving Loan shall be due and payable in arrears on each Interest
Payment Date applicable thereto and at such other times as may be specified herein. Interest
hereunder shall be due and payable in accordance with the terms hereof before and after judgment,
and before and after the commencement of any proceeding under any Debtor Relief Law.

     (d) If the designated rate applicable to any Borrowing exceeds the Maximum Rate, the rate of
interest on such Borrowing shall be limited to the Maximum Rate, but any subsequent reductions in
such designated rate shall not reduce the rate of interest thereon below the Maximum Rate until the total

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amount of interest accrued thereon equals the amount of interest which would have accrued thereon
if such designated rate had at all times been in effect. In the event that at maturity (stated or
by acceleration), or at final payment of the Outstanding Amount of any Revolving Loans or L/C
Obligations, the total amount of interest paid or accrued is less than the amount of interest which
would have accrued if such designated rates had at all times been in effect, then, at such time and
to the extent permitted by Law, the Borrower shall pay an amount equal to the difference between
(a) the lesser of the amount of interest which would have accrued if such designated rates had at
all times been in effect and the amount of interest which would have accrued if the Maximum Rate
had at all times been in effect, and (b) the amount of interest actually paid or accrued on such Outstanding Amount.

     2.07 Fees.

     (a) Commitment Fees. The Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Pro Rata Share (based on its Revolving Commitment as
a percentage of the Aggregate Revolving Commitment) a Revolver Facility commitment fee equal to the
Applicable Rate times the actual daily amount by which the Aggregate Revolving Commitment (subject
to reduction pursuant to Section 2.04) exceeds the sum of (i) the Outstanding Amount of Revolving
Loans plus (ii) the Outstanding Amount of L/C Obligations. The Revolver Facility commitment fee
shall accrue at all times from the Second Amended and Restated Closing Date until the Maturity
Date, shall be calculated quarterly in arrears and shall be due and payable quarterly in arrears on
the last Business Day of each March, June, September and December, commencing with the first such
date to occur after the Second Amended and Restated Closing Date, and on the Maturity Date. The
Revolver Facility commitment fee shall accrue at all times, including at any time during which one
or more of the conditions in Article IV is not met; and

     (b) Arranger’s and Administrative Agent’s Fees. On the Second Amended and
Restated Closing Date, the Borrower shall pay certain fees to the Arranger and Administrative Agent
to be shared between them and the Borrower shall pay certain fees to the Administrative Agent for
the Administrative Agent’s own account as an administrative agency fee, in the amounts and at the
times specified in the letter agreement dated March 13, 2007 (the “Agent/Arranger Fee Letter”),
between the Borrower, the Arranger and the Administrative Agent. Such fees shall be fully earned
when paid and shall be nonrefundable for any reason whatsoever. Additionally, Borrower shall pay
to the Administrative Agent for the Administrative Agent’s own account the fees in the amounts and
on the dates specified in the Agent/Arranger Fee Letter.

     2.08 Computation of Interest and Fees. Computation of interest on Base Rate Loans shall be
calculated on the basis of a year of 365 or 366 days, as the case may be, and the actual number of
days elapsed. Computation of all other types of interest and all fees shall be calculated on the
basis of a year of 360 days and the actual number of days elapsed. Interest shall accrue on each
Revolving Loan for the day on which the Revolving Loan is made, and shall not accrue on a Revolving
Loan, or any portion thereof, for the day on which the Revolving Loan or such portion is paid;
provided that any Revolving Loan that is repaid on the same day on which it is made shall bear interest for one day.

     2.09 Evidence of Debt.

     (a) The Revolving Loans made by each Lender shall be evidenced by one or more accounts or
records maintained by such Lender and by the Administrative Agent in the ordinary course of
business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive,

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absent manifest error, of the amount of the Revolving Loans made by the Lenders to the Borrower and
the interest and payments thereon. Any failure so to record or any error in doing so shall not,
however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing
with respect to the Revolving Loans or the L/C Obligations. In the event of any conflict between
the accounts and records maintained by any Lender and the accounts and records of the
Administrative Agent in respect of such matters, the accounts and records of such Lender shall
control. Upon the request of any Lender made through the Administrative Agent, such Lender’s
Revolving Loans may be evidenced by one or more Revolver Notes. Each Lender may attach schedules
to its Revolver Note(s) and endorse thereon the date, Type (if applicable), amount and maturity of
the applicable Revolving Loans and payments with respect thereto.

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

     2.10 Payments Generally.

     (a) All payments to be made by the Borrower shall be made without condition or deduction for
any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein,
all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account
of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in
Dollars and in immediately available funds not later than 11:00 a.m., New York time, on the date
specified herein. The Administrative Agent will promptly distribute to each Lender its Pro Rata
Share (or other applicable share as provided herein) of such payment in like funds as received by
wire transfer to such Lender’s Lending Office. All payments received by the Administrative Agent
after 11:00 a.m., New York time, shall be deemed received on the next succeeding Business Day and
any applicable interest or fee shall continue to accrue.

     (b) Subject to the definition of “Interest Period,” if any payment to be made by the Borrower
shall come due on a day other than a Business Day, payment shall be made on the next following
Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.

     (c) If no Default or Event of Default exists and if no order of application is otherwise
specified in the Loan Documents, payments and prepayments of the Obligations shall be applied first
to fees, second to accrued interest then due and payable on the Outstanding Amount of Revolving
Loans and L/C Obligations, and then to the remaining Obligations in the order and manner as Borrower may direct.

     (d) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully the Obligations, or if a Default or Event of Default exists, any payment or
prepayment shall be applied in the following order: (i) to the payment of enforcement expenses
incurred by the Administrative Agent and/or Collateral Agent, including Attorney Costs; (ii) to the
ratable payment of all other fees, expenses, and indemnities for which the Administrative Agent,
Collateral Agent or Lenders have not been paid or reimbursed in accordance with the Loan Documents (as used in this
Section 2.10(d)(ii), a “ratable payment” for any Lender, the Administrative Agent or Collateral
Agent shall be, on

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any date of determination, that proportion which the portion of the total fees, expenses, and
indemnities owed to such Lender, the Administrative Agent or the Collateral Agent bears to the
total aggregate fees and indemnities owed to all Lenders and the Administrative Agent and
Collateral Agent on such date of determination); (iii) to the ratable payment of accrued and unpaid
interest on the Outstanding Amount of Revolving Loans, Outstanding L/C Obligations, the Outstanding
Amount of Obligations under Lender Hedging Agreements and the Outstanding Amount of Obligations
under Banking Service Obligations; and (iv) to the payment of the remaining Obligations, if any, in
the order and manner the Required Lenders deem appropriate.

     (e) Unless the Borrower or any Lender has notified the Administrative Agent prior to the date
any payment is required to be made by it to the Administrative Agent hereunder, that the Borrower
or such Lender, as the case may be, will not make such payment, the Administrative Agent may assume
that the Borrower or such Lender, as the case may be, has timely made such payment and may (but
shall not be so required to), in reliance thereon, make available a corresponding amount to the
Person entitled thereto. If and to the extent that such payment was not in fact made to the
Administrative Agent in immediately available funds, then:

     (i) if the Borrower failed to make such payment, each Lender shall forthwith on demand
repay to the Administrative Agent the portion of such assumed payment that was made
available to such Lender in immediately available funds, together with interest thereon in
respect of each day from and including the date such amount was made available by the
Administrative Agent to such Lender to the date such amount is repaid to the Administrative
Agent in immediately available funds, at the Federal Funds Rate from time to time in effect;
and

     (ii) if any Lender failed to make such payment, such Lender shall forthwith on demand
pay to the Administrative Agent the amount thereof in immediately available funds, together
with interest thereon for the period from the date such amount was made available by the
Administrative Agent to the Borrower to the date such amount is recovered by the
Administrative Agent (the “Compensation Period”) at a rate per annum equal to the Federal
Funds Rate from time to time in effect. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Revolving Loan,
included in the applicable Borrowing. If such Lender does not pay such amount forthwith
upon the Administrative Agent’s demand therefor, the Administrative Agent may make a demand
therefor upon the Borrower, and the Borrower shall pay such amount to the Administrative
Agent, together with interest thereon for the Compensation Period at a rate per annum equal
to the rate of interest applicable to the applicable Borrowing. Nothing herein shall be
deemed to relieve any Lender from its obligation to fulfill its Revolving Commitment or to
prejudice any rights which the Administrative Agent or the Borrower may have against any
Lender as a result of any default by such Lender hereunder.

     A notice of the Administrative Agent to any Lender with respect to any amount owing under this
subsection (e) shall be conclusive, absent manifest error.

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

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     (g) The obligations of the Lenders hereunder to make Revolving Loans are several and not
joint. The failure of any Lender to make any Revolving Loan on any date required hereunder shall
not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender
shall be responsible for the failure of any other Lender to so make its Revolving Loan or purchase
its participation.

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

     2.11 Sharing of Payments. If, other than as expressly provided elsewhere herein, any Lender
shall obtain on account of the Revolving Loans made by it, or the participations in the L/C
Obligations, any payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) in excess of its ratable share (or other share contemplated hereunder)
thereof, such Lender shall immediately (a) notify the Administrative Agent of such fact, and (b)
purchase from the other Lenders such participations in the Revolving Loans made by them, and/or
such subparticipations in the participations in L/C Obligations held by them, as shall be necessary
to cause such purchasing Lender to share the excess payment in respect of such Revolving Loan or
such participations, as the case may be, pro rata with each of them; provided, however, that if all
or any portion of such excess payment is thereafter recovered from the purchasing Lender, such
purchase shall to that extent be rescinded and each other Lender shall repay to the purchasing
Lender the purchase price paid therefor, together with an amount equal to such paying Lender’s
ratable share (according to the proportion of (i) the amount of such paying Lender’s required
repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or
other amount paid or payable by the purchasing Lender in respect of the total amount so recovered.
The Borrower agrees that any Lender so purchasing a participation from another Lender may, to the
fullest extent permitted by Law, exercise all its rights of payment (including the right of
set-off, but subject to Section 10.09) with respect to such participation as fully as if such
Lender were the direct creditor of the Borrower in the amount of such participation. The
Administrative Agent will keep records (which shall be conclusive and binding in the absence of
manifest error) of participations purchased under this Section and will in each case notify the
Lenders following any such purchases or repayments. Each Lender that purchases a participation
pursuant to this Section shall from and after such purchase have the right to give all notices,
requests, demands, directions and other communications under this Agreement with respect to the
portion of the Obligations purchased to the same extent as though the purchasing Lender were the
original owner of the Obligations purchased.

     2.12 Pari Passu Lien Securing Lender Hedging Agreements and Banking Service Obligations.
All Obligations arising under the Loan Documents, including, without limitation, Obligations under
this Agreement, Obligations under any Lender Hedging Agreement (but not Indebtedness of the
Borrower or any Subsidiary owing to any non-Lender or non-Lender Affiliate which enters into a Swap
Contract with the Borrower or any Subsidiary of the Borrower), and Obligations under any Banking
Service Obligation shall be secured pari passu by the Collateral. No Lender or any Affiliate of a
Lender shall have any voting rights under any Loan Document as a result of the existence of
obligations owed to it under any such Lender Hedging Agreement or Banking Service Obligation.

     2.13 Letters of Credit.

     (a) The Letter of Credit Commitment.

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     (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the other Lenders set forth in this Section 2.13, (1) from
time to time on any Business Day during the period from the Second Amended and Restated
Closing Date until the Letter of Credit Expiration Date, to issue Letters of Credit for the
account of the Borrower or any of its Subsidiaries, and to amend or renew Letters of Credit
previously issued by it, in accordance with subsection (b) below, and (2) to honor drafts
under the Letters of Credit; and (B) the Lenders severally agree to participate in Letters
of Credit issued for the account of the Borrower and its Subsidiaries; provided that the L/C
Issuer shall not be obligated to make any L/C Credit Extension with respect to any Letter of
Credit, and no Lender shall be obligated to participate in any Letter of Credit, if as of
the date of such L/C Credit Extension, (w) the Outstanding Amount of all L/C Obligations and
all Revolving Loans would exceed the Aggregate Revolving Commitment, (y) the aggregate
Outstanding Amount of the Revolving Loans of any Lender, plus such Lender’s Pro Rata Share
of the Outstanding Amount of all L/C Obligations would exceed such Lender’s Revolving
Commitment, or (z) the Outstanding Amount of the L/C Obligations would exceed the Letter of
Credit Sublimit. Within the foregoing limits, and subject to the terms and conditions
hereof, the Borrower’s ability to obtain Letters of Credit shall be fully revolving, and
accordingly the Borrower may, during the foregoing period, obtain Letters of Credit to
replace Letters of Credit that have expired or that have been drawn upon and reimbursed.
The Existing Letters of Credit shall be deemed to have been issued pursuant hereto, and from
and after the Second Amended and Restated Closing Date shall be subject to and governed by
the terms and conditions hereof.

     (ii) The L/C Issuer shall be under no obligation to issue any Letter of Credit if:

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

     (B) subject to Section 2.13(b)(iii), the expiry date of such requested Letter
of Credit would occur more than twelve months after the date of issuance or last
renewal, unless the Required Lenders have approved such expiry date;

     (C) the expiry date of such requested Letter of Credit would occur after the
Letter of Credit Expiration Date, unless all the Lenders have approved such expiry date;

     (D) the issuance of such Letter of Credit would violate one or more policies of
the L/C Issuer generally applicable to all borrowers; or 

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     (E) such Letter of Credit is in a face amount less than $100,000, or is to be
used for a purpose other than as described in Section 6.12 or is denominated in a
currency other than Dollars.

     (iii) The L/C Issuer shall be under no obligation to amend any Letter of Credit if (A)
the L/C Issuer would have no obligation at such time to issue such Letter of Credit in its
amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does
not accept the proposed amendment to such Letter of Credit.

     (b) Procedures for Issuance and Amendment of Letters of Credit; Evergreen Letters of Credit.

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Borrower delivered to the L/C Issuer (with a copy to the Administrative
Agent) in the form of a Letter of Credit Application, appropriately completed and signed by
a Responsible Officer of the Borrower. Such Letter of Credit Application must be received
by the L/C Issuer and the Administrative Agent not later than 11:00 a.m., New York time, at
least two Business Days (or such later date and time as the L/C Issuer may agree in a
particular instance in its sole discretion) prior to the proposed issuance date or date of
amendment, as the case may be. In the case of a request for an initial issuance of a Letter
of Credit, such Letter of Credit Application shall specify in form and detail satisfactory
to the L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which
shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name
and address of the beneficiary thereof; (E) the documents to be presented by such
beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; and (G) such other matters
as the L/C Issuer may require. In the case of a request for an amendment of any outstanding
Letter of Credit, such Letter of Credit Application shall specify in form and detail
satisfactory to the L/C Issuer (A) the Letter of Credit to be amended; (B) the proposed date
of amendment thereof (which shall be a Business Day); (C) the nature of the proposed
amendment; and (D) such other matters as the L/C Issuer may require.

     (ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will
confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such Letter of Credit Application from the Borrower and, if
not, the L/C Issuer will provide the Administrative Agent with a copy thereof. Upon receipt
by the L/C Issuer of confirmation from the Administrative Agent that the requested issuance
or amendment is permitted in accordance with the terms hereof, then, subject to the terms
and conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter of Credit
for the account of the Borrower or enter into the applicable amendment, as the case may be,
in each case in accordance with the L/C Issuer’s usual and customary business practices.
Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and
hereby irrevocably and unconditionally agrees to, purchase from the L/C Issuer a
participation in such Letter of Credit in an amount equal to the product of such Lender’s
Pro Rata Share times the amount of such Letter of Credit.

     (iii) If the Borrower so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in it sole and absolute discretion, agree to issue a Letter of Credit that
has automatic renewal provisions (each, an “Evergreen Letter of Credit”); provided that any
such

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Evergreen Letter of Credit must permit the L/C Issuer to prevent any such renewal at least
once in each twelve-month period (commencing with the date of issuance of such Letter of
Credit) by giving prior notice to the beneficiary thereof not later than a day (the
“Nonrenewal Notice Date”) in each such twelve-month period to be agreed upon at the time
such Letter of Credit is issued. Unless otherwise directed by the L/C Issuer, the Borrower
shall not be required to make a specific request to the L/C Issuer for any such renewal.
Once an Evergreen Letter of Credit has been issued, the Lenders shall be deemed to have
authorized (but may not require) the L/C Issuer to permit the renewal of such Letter of
Credit at any time to a date not later than the Letter of Credit Expiration Date; provided,
however, that the L/C Issuer shall not permit any such renewal if it has received notice at
least five Business Days immediately preceding the Nonrenewal Notice Date (1) from the
Administrative Agent that the Required Lenders have elected not to permit such renewal or
(2) from any Lender stating that one or more of the applicable conditions specified in
Section 4.03 is not then satisfied and directing the L/C Issuer not to permit such renewal.
Notwithstanding anything to the contrary contained herein, the L/C Issuer shall have no
obligation to permit the renewal of any Evergreen Letter of Credit at any time.

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

     (c) Drawings and Reimbursements; Funding of Participations.

     (i) Upon any drawing under any Letter of Credit, the L/C Issuer shall notify the
Borrower and the Administrative Agent thereof. Not later than 11:00 a.m., New York time,
on the date of any payment by the L/C Issuer under a Letter of Credit (each such date, an
“Honor Date”), the Borrower shall reimburse the L/C Issuer through the Administrative Agent
in an amount equal to the amount of such drawing. If the Borrower fails to so reimburse the
L/C Issuer by such time, the Administrative Agent shall promptly notify each Lender of the
Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed Amount”), and such
Lender’s Pro Rata Share thereof. In such event, the Borrower shall be deemed to have
requested a Borrowing under the Revolver Facility of Base Rate Loans to be disbursed on the
Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and
multiples specified in Section 2.02 for the principal amount of Base Rate Loans, but subject
to the amount of the unutilized portion of the Aggregate Revolving Commitment and the
conditions set forth in Section 4.03 (other than the delivery of a Borrowing Notice). Any
notice given by the L/C Issuer or the Administrative Agent pursuant to this Section
2.13(c)(i) may be given by telephone if immediately confirmed in writing; provided that the
lack of such an immediate confirmation shall not affect the conclusiveness or binding effect
of such notice.

     (ii) Each Lender (including the Lender acting as L/C Issuer) shall upon any notice
pursuant to Section 2.13(c)(i) make funds available to the Administrative Agent for the
account of the L/C Issuer at the Administrative Agent’s Office in an amount equal to its Pro
Rata Share of the Unreimbursed Amount not later than 11:00 a.m., New York time, on the
Business Day specified in such notice by the Administrative Agent, whereupon, subject to the
provisions of Section 2.13(c)(iii), each Lender that so makes funds available shall be
deemed to have made a Base Rate Revolving Loan to the Borrower in such amount. The Administrative Agent
shall remit the funds so received to the L/C Issuer.

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     (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Borrowing of Base Rate Revolving Loans because the conditions set forth in Section 4.03
cannot be satisfied or for any other reason, the Borrower shall be deemed to have incurred
from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so
refinanced, which L/C Borrowing shall be due and payable on demand (together with interest)
and shall bear interest at the Default Rate. In such event, each Lender’s payment to the
Administrative Agent for the account of the L/C Issuer pursuant to Section 2.13(c)(ii) shall
be deemed payment in respect of its participation in such L/C Borrowing and shall constitute
an L/C Advance from such Lender in satisfaction of its participation obligation under this
Section 2.13.

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

     (v) Each Lender’s obligation to make Revolving Loans or L/C Advances to reimburse the
L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section
2.13(c), shall be absolute and unconditional and shall not be affected by any circumstance,
including (A) any set-off, counterclaim, recoupment, defense or other right which such
Lender may have against the L/C Issuer, the Borrower or any other Person for any reason
whatsoever, (B) the occurrence or continuance of a Default or Event of Default, or (C) any
other occurrence, event or condition, whether or not similar to any of the foregoing. Any
such reimbursement shall not relieve or otherwise impair the obligation of the Borrower to
reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer under any
Letter of Credit, together with interest as provided herein.

     (vi) If any Lender fails to make available to the Administrative Agent for the account
of the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.13(c) by the time specified in Section 2.13(c)(ii), the L/C
Issuer shall be entitled to recover from such Lender (acting through the Administrative
Agent), on demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately available to the L/C
Issuer at a rate per annum equal to the Federal Funds Rate from time to time in effect. A
certificate of the L/C Issuer submitted to any Lender (through the Administrative Agent)
with respect to any amounts owing under this clause (vi) shall be conclusive absent manifest
error.

     (d) Repayment of Participations.

     (i) At any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such payment in
accordance with Section 2.13(c), if the Administrative Agent receives for the account of the
L/C Issuer any payment related to such Letter of Credit (whether directly from the Borrower
or otherwise, including proceeds of cash Collateral applied thereto by the Administrative
Agent), or any payment of interest thereon, the Administrative Agent will distribute to such
Lender its Pro Rata Share thereof in the same funds as those received by the Administrative Agent.

     (ii) If any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.13(c)(i) is required to be returned, each Lender shall pay to
the

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Administrative Agent for the account of the L/C Issuer its Pro Rata Share thereof on demand
of the Administrative Agent, plus interest thereon from the date of such demand to the date
such amount is returned by such Lender, at a rate per annum equal to the Federal Funds Rate
from time to time in effect.

     (e) Obligations Absolute. The obligation of the Borrower to reimburse the L/C Issuer
for each drawing under each Letter of Credit, and to repay each L/C Borrowing and each drawing
under a Letter of Credit that is refinanced by a Borrowing of Revolving Loans, shall be absolute,
unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

     (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other agreement or instrument relating thereto;

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

     (iii) any draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing under such
Letter of Credit;

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

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

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

     The Borrower shall also promptly examine any documents sent to the L/C Issuer in connection
with a drawing under a Letter of Credit after the L/C Issuer provides copies of such documents to
the Borrower and the Borrower shall immediately notify the L/C Issuer of any objection or claim of
noncompliance of such documents with the requirements of the Letter of Credit.

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     (f) Role of L/C Issuer. Each Lender and the Borrower agree that, in paying any
drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by the Letter
of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. No Agent-Related Person nor any
of the respective correspondents, participants or assignees of the L/C Issuer shall be liable to
any Lender for (i) any action taken or omitted in connection herewith at the request or with the
approval of the Lenders or the Required Lenders, as applicable, (ii) any action taken or omitted in
the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness,
validity or enforceability of any document or instrument related to any Letter of Credit or Letter
of Credit Application. The Borrower hereby assumes all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Letter of Credit; provided, however, that
this assumption is not intended to, and shall not, preclude the Borrower’s pursuing such rights and
remedies as it may have against the beneficiary or transferee at law or under any other agreement.
No Agent-Related Person, nor any of the respective correspondents, participants or assignees of the
L/C Issuer, shall be liable or responsible for any of the matters described in clauses (i) through
(v) of Section 2.13(e); provided, however, that anything in such clauses to the contrary
notwithstanding, the Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be
liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by the Borrower which the Borrower proves were caused
by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to
pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and
certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In
furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that appear
on their face to be in order, without responsibility for further investigation, regardless of any
notice or information to the contrary, and the L/C Issuer shall not be responsible for the validity
or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part,
which may prove to be invalid or ineffective for any reason.

     (g) Cash Collateral. Upon the request of the Administrative Agent, (i) if the L/C
Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing
has resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any
Letter of Credit may for any reason remain outstanding and partially or wholly undrawn, the
Borrower shall immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations
(in an amount equal to such Outstanding Amount). The Borrower hereby grants the Administrative
Agent and Collateral Agent, for the benefit of the L/C Issuer and the Lenders, a Lien on all such
cash and deposit accounts at any Lender.

     (h) Applicability of ISP98. Unless otherwise expressly agreed by the L/C Issuer and
the Borrower when a Letter of Credit is issued, the rules of the “International Standby Practices
1998” published by the Institute of International Banking Law & Practice (or such later version
thereof as may be in effect at the time of issuance) shall apply to each Letter of Credit.

     (i) Letter of Credit Fees. The Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Pro Rata Share a letter of credit fee for each Letter
of Credit issued equal to the Applicable Rate times the actual daily undrawn amount under each
Letter of Credit. Such fee for each Letter of Credit shall be due and payable on the last Business
Day of each March, June, September and December, commencing with the first such date to occur after
the issuance of such Letter of Credit, and on the Letter of Credit Expiration Date.

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     (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The
Borrower shall pay directly to the L/C Issuer for its own account a fronting fee in an amount with
respect to each Letter of Credit issued equal to the greater of (i) $500 and (ii) 1/8 of 1%
calculated on the face amount thereof. In addition, the Borrower shall pay directly to the L/C
Issuer for its own account the customary issuance, presentation, amendment and other processing
fees, and other standard costs and charges, of the L/C Issuer relating to letters of credit as from
time to time in effect. Such fees and charges are due and payable on demand and are nonrefundable.

     (k) Conflict with Letter of Credit Application. In the event of any conflict between
the terms hereof and the terms of any Letter of Credit Application, the terms hereof shall control.

ARTICLE III.
TAXES, YIELD PROTECTION AND ILLEGALITY

     3.01 Taxes.

     (a) Any and all payments by the Borrower to or for the account of the Administrative Agent
or any Lender under any Loan Document shall be made free and clear of and without deduction for any
and all present or future taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and all liabilities with respect thereto; excluding, in the case
of the Administrative Agent and each Lender, (i) taxes imposed on or measured by its net income,
and franchise taxes (including the Texas franchise tax) imposed on it (in lieu of net income
taxes), by the United States or any state or political subdivision thereof, or by the jurisdiction
(or any political subdivision thereof) under the Laws of which the Administrative Agent or such
Lender, as the case may be, is organized, is or should be qualified to do business or maintains its
Lending Office, (ii) any branch profits taxes imposed by the United States of America or any
similar tax imposed by any other jurisdiction described in clause (i) above, (iii) in the
case of a Foreign Lender, any withholding tax that is imposed on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new
lending office) or is attributable to such Foreign Lender’s failure to comply with Section
3.01(f), except to the extent that such Foreign Lender (or its assignor, if any) was entitled,
at the time of designation of a new lending office (or assignment), to receive additional amounts
from the Borrower with respect to such withholding tax pursuant to this Section 3.01(a) and
which withholding tax may not be eliminated by complying with Section 3.01(f), and (iv) any
backup withholding tax required to be withheld or paid pursuant to Section 3406 of the Code (all
such non-excluded taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or
similar charges, and liabilities being hereinafter referred to as “Taxes”). If the Borrower shall
be required by any Laws to deduct any Taxes from or in respect of any sum payable under any Loan
Document to the Administrative Agent or any Lender, (1) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section), each of the Administrative Agent and such Lender
receives an amount equal to the sum it would have received had no such deductions been made, (2)
the Borrower shall make such deductions, (3) the Borrower shall pay the full amount deducted to the
relevant taxation authority or other authority in accordance with applicable Laws, and (4) within
30 days after the date of such payment, the Borrower shall furnish to the Administrative Agent
(which shall forward the same to such Lender) the original or a certified copy of a receipt
evidencing payment thereof.

     (b) In addition, the Borrower agrees to pay any and all present or future stamp, court or
documentary taxes and any other excise or property taxes or charges or similar levies which arise from

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any payment made under any Loan Document or from the execution, delivery, performance, enforcement
or registration of, or otherwise with respect to, any Loan Document (hereinafter referred to as
“Other Taxes”).

     (c) If the Borrower shall be required to deduct or pay any Taxes or Other Taxes from or in
respect of any sum payable under any Loan Document to the Administrative Agent or any Lender, the
Borrower shall also pay to the Administrative Agent (for the account of such Lender) or to such
Lender, at the time interest is paid, such additional amount that such Lender specifies as
necessary to preserve the after-tax yield (after factoring in all taxes, including taxes imposed on
or measured by net income) such Lender would have received if such Taxes or Other Taxes had not
been imposed.

     (d) The Borrower agrees to indemnify the Administrative Agent and each Lender for (i) the full
amount of Taxes and Other Taxes (including any Taxes or Other Taxes imposed or asserted by any
jurisdiction on amounts payable under this Section) paid by the Administrative Agent and such
Lender, (ii) amounts payable under Section 3.01(c) and (iii) any liability (including penalties,
interest and expenses) arising therefrom or with respect thereto. Payment under this subsection
(d) shall be made within 30 days after the date the Lender or the Administrative Agent makes a
demand therefor.

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

     (f) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the Law of the jurisdiction in which the Borrower is resident for tax purposes, or any treaty
to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan
Document shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or
times prescribed by applicable Law or reasonably requested by the Borrower or the Administrative
Agent, such properly completed and executed documentation prescribed by applicable law, or
reasonably requested by Borrower, as will permit such payments to be made without withholding or at
a reduced rate of withholding. In addition, any Lender, if requested by the Borrower or the
Administrative Agent, shall deliver such other documentation prescribed by applicable Law or
reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the
Administrative Agent to determine whether or not such Lender is subject to backup withholding or
information reporting requirements.

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

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

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

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

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

     3.02 Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending
Office to make, maintain or fund Eurodollar Rate Loans, or materially restricts the authority of
such Lender to purchase or sell, or to take deposits of, Dollars in the applicable offshore Dollar
market, or to determine or charge interest rates based upon the Eurodollar Rate, then, on notice
thereof by such Lender to the Borrower through the Administrative Agent, any obligation of such
Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate
Loans shall be suspended until such Lender notifies the Administrative Agent and the Borrower that
the circumstances giving rise to such determination no longer exist. Upon receipt of such notice,
the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay
or, if applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate Loans, either on
the last day of the Interest Period thereof, if such Lender may lawfully continue to maintain such
Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully continue to
maintain such Eurodollar Rate Loans. Upon any such prepayment or conversion, the Borrower shall
also pay interest on the amount so prepaid or converted. Each Lender agrees to designate a
different Lending Office if such designation will avoid the need for such notice and will not, in
the reasonable judgment of such Lender, otherwise be materially disadvantageous to such Lender.

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

     3.04 Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans.

     (a) If any Lender or the L/C Issuer determines that as a result of a Change in Law, or such
Lender’s or L/C Issuer’s compliance therewith, there shall be any increase in the cost to such
Lender or

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L/C Issuer of agreeing to make or making, funding or maintaining Eurodollar Rate Loans or
to increase the cost to such Lender or the L/C Issuer of participating in, issuing or maintaining
any Letter of Credit, or a reduction in the amount received or receivable by such Lender or L/C
Issuer in connection with any of the foregoing (excluding for purposes of this subsection (a) any
such increased costs or reduction in amount resulting from (i) Taxes or Other Taxes (as to which
Section 3.01 shall govern), (ii) changes in the basis of taxation of overall net income or overall
gross income by the United States or any foreign jurisdiction or any political subdivision of
either thereof under the Laws of which such Lender or L/C Issuer is organized or has its Lending
Office, and (iii) reserve requirements contemplated by Section 3.04(c) utilized, as to Eurodollar
Rate Loans, in the determination of the Eurodollar Rate), then from time to time upon demand of
such Lender or L/C Issuer (with a copy of such demand to the Administrative Agent), the Borrower
shall pay to such Lender or L/C Issuer, as the case may be, such additional amounts as will
compensate such Lender or L/C Issuer for such increased cost or reduction.

     (b) If any Lender determines a Change in Law has the effect of reducing the rate of return on
the capital of such Lender or any corporation controlling such Lender as a consequence of such
Lender’s obligations hereunder (taking into consideration its policies with respect to capital
adequacy and such Lender’s desired return on capital, then from time to time upon demand of such
Lender (with a copy of such demand to the Administrative Agent), the Borrower shall pay to such
Lender such additional amounts as will compensate such Lender for such reduction.

     (c) The Borrower shall pay to each Lender, as long as such Lender shall be required under
regulations of the Board to maintain reserves with respect to liabilities or assets consisting of
or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”),
additional costs on the unpaid principal amount of each Eurodollar Rate Loan equal to the actual
costs of such reserves allocated to such Revolving Loan by such Lender (as determined by such
Lender in good faith, which determination shall be conclusive), which shall be due and payable on
each date on which interest is payable on such Revolving Loan; provided the Borrower shall have
received at least 10 days’ prior notice (with a copy to the Administrative Agent) of such
additional interest from such Lender. If a Lender fails to give notice 10 days prior to the
relevant Interest Payment Date, such additional interest shall be due and payable 10 days from
receipt of such notice.

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

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

     (b) any failure by the Borrower (for a reason other than the failure of such Lender to make a
Revolving Loan) to prepay, borrow, continue or convert any Revolving Loan other than a Base Rate
Loan on the date or in the amount notified by the Borrower; including any loss of anticipated
profits and any loss or expense arising from the liquidation or reemployment of funds obtained by
it to maintain such Revolving Loan or from fees payable to terminate the deposits from which such
funds were obtained. The Borrower shall also pay any customary administrative fees charged by
such Lender in connection with the foregoing.

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

     3.06 Matters Applicable to all Requests for Compensation. A certificate of the Administrative
Agent or any Lender claiming compensation under this Article III and setting forth the additional
amount or amounts to be paid to it hereunder shall be conclusive in the absence of manifest error.
In determining such amount, the Administrative Agent or such Lender may use any reasonable
averaging and attribution methods.

     3.07 Survival. All of the Borrower’s obligations under this Article III shall survive termination
of the Aggregate Revolving Commitment and payment in full of all the other Obligations.

     3.08 Mitigation Obligations. If any Lender or L/C Issuer requests compensation under Section
3.04, or if the Borrower is required to pay any additional amount to any Lender, L/C Issuer or any
Governmental Authority for the account of any Lender or L/C Issuer, as applicable, pursuant to
Section 3.01, then such Lender or L/C Issuer shall use reasonable efforts to designate a different
Lending Office for funding or booking its Revolving Loans or issuing Letters of Credit hereunder or
to assign its rights and obligations hereunder to another of its offices, branches or Affiliates,
if, in the judgment of such Lender or L/C Issuer, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 3.01 or Section 3.04, as the case may be,
in the future and (ii) would not subject such Lender or L/C Issuer to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender or L/C Issuer. The Borrower
hereby agrees to pay all reasonable costs and expenses incurred by any Lender or L/C Issuer in
connection with any such designation or assignment.

ARTICLE IV.

CONDITIONS PRECEDENT

     4.01 Conditions Precedent. This Agreement shall be effective on the Second Amended and Restated
Closing Date subject to satisfaction of the following conditions precedent on or prior to such
date:

     (a) The Administrative Agent’s receipt of the following, each of which shall be originals or
facsimiles (followed promptly by originals) and unless otherwise specified, each properly executed
by an authorized officer of the signing Loan Party or other Person party thereto, each dated the
Second Amended and Restated Closing Date (or, in the case of certificates of governmental
officials, a recent date before the Second Amended and Restated Closing Date), and each in form and
substance satisfactory to the Arranger, the Administrative Agent, the Lenders and their legal
counsel:

     (i) executed counterparts of this Agreement, the Guaranty, all other Collateral
Documents as deemed advisable by the Administrative Agent or its counsel, each dated as of
the Second Amended and Restated Closing Date unless dated prior thereto;

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     (ii) Revolver Notes executed by the Borrower in favor of each Lender requesting such
Revolver Notes, each Revolver Note in a principal amount equal to such Lender’s Revolving
Commitment and each Revolver Note dated as of the Second Amended and Restated Closing Date;

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

     (iv) such evidence as the Administrative Agent may reasonably require to verify that
each Loan Party is duly organized or formed, validly existing, and in good standing in the
jurisdiction of its organization;

     (v) a certificate signed by a Responsible Officer of the Borrower certifying (A) that
the representations and warranties contained in Article V are true and correct in all
respects on and as of the Second Amended and Restated Closing Date, (B) that no default or
event of default under the First Amended and Restated Credit Agreement has occurred and is
continuing as of the day preceding the Second Amended and Restated Closing Date, (C) that no
Default or Event of Default has occurred and is continuing under this Agreement as of the
Second Amended and Restated Closing Date after the initial funding under this Agreement, (D)
since December 31, 2006 there has occurred no material adverse change in the business,
assets, liabilities (actual or contingent), operations or condition (financial or otherwise)
of the Borrower and its Subsidiaries, taken as a whole, or in the facts and information
regarding the Borrower and its Subsidiaries previously delivered to the Administrative Agent
or the Lenders, (E) that as of the Second Amended and Restated Closing Date there are no
material environmental or material legal issues affecting any Loan Party or any of the
Collateral, (F) all governmental and third party approvals necessary or, in the discretion
of the Administrative Agent, advisable in connection with any Loan Party (i) entering into
this Agreement or any of the Loan Documents or (ii) continuing its business operations have
been obtained and are in full force and effect, (G) there is no litigation, investigation or
proceeding known to and affecting the Borrower or any of its Subsidiaries for which the
Borrower is required to give notice pursuant to Section 6.03(b) (or, if there is any such
litigation, investigation or proceeding, then a notice containing the information required
by Section 6.03(b) shall be given concurrently with the delivery of the certificate given
pursuant to this clause (v)), and (H) no action, suit, investigation or proceeding is
pending or, to the
Borrower’s knowledge, threatened in any court or before any arbitrator or Governmental
Authority by or against the Borrower, or any of its Subsidiaries or any of their respective
properties, that (y) could reasonably be expected to materially and adversely affect the
Borrower or any Subsidiary, or (z) seeks to affect or pertains to any transaction
contemplated hereby or the ability of the Borrower or any Loan Party to perform its
obligations under the Loan Documents,

     (vi) a Compliance Certificate of a Responsible Officer of the Borrower demonstrating
pro forma compliance with all financial covenants herein for the fiscal year ended December
31, 2006,

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     (vii) a certificate of a Responsible Officer of the Borrower (a) as to the satisfaction
of all conditions specified in this Section 4.01 and Section 4.03, and (b) attaching a
five-year financial forecast for the Borrower and its Subsidiaries on a consolidated basis;

     (viii) a certificate of Borrower’s chief financial officer, in form and substance
satisfactory to the Administrative Agent, certifying that neither the Borrower nor any of
its Subsidiaries is “insolvent” as such term is used and defined in (i) the United States
Bankruptcy Code or (ii) the Texas Uniform Fraudulent Transfer Act, Tex. Bus. & Com. Code
Ann. §24.003;

     (viii) an opinion from counsel to each Loan Party, in form and substance satisfactory
to the Administrative Agent and its counsel;

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

     (d) Any fees due and payable at the Second Amended and Restated Closing Date shall have been
paid including, without limitation, payment of fees and expenses pursuant to the Agent/Arranger Fee
Letter.

     (e) The Borrower shall have paid Attorney Costs of the Administrative Agent to the extent
invoiced prior to the Second Amended and Restated Closing Date.

     (f) Loan Documents, executed by each Loan Party that has assets or conducts business, in
appropriate form for recording, where necessary, together with:

     (i) such Lien searches as the Administrative Agent shall have reasonably requested, and
such termination statements or other documents as may be necessary to confirm that the
Collateral is subject to no other Liens (other than Permitted Liens) in favor of any
Persons;

     (ii) funds sufficient to pay any filing or recording tax or fee in connection with any
and all UCC-1 financing statements or fees associated with the filing of any mortgages;

     (iii) evidence that the Administrative Agent has been named as loss payee under all
policies of casualty insurance pertaining to the Collateral and as additional insured under
all liability policies of the Borrower;

     (iv) certificates evidencing all of the issued and outstanding shares of capital stock,
partnership interests, or membership interests pledged pursuant to any Collateral Document,
which certificates shall in each case be accompanied by undated stock powers duly executed
in blank, or, if any securities pledged pursuant thereto are uncertificated securities,
confirmation and evidence satisfactory to the Administrative Agent that the security
interest in such uncertificated securities has been transferred to and perfected by the
Administrative Agent for the benefit of the Lenders in accordance with the UCC; and

     (v) evidence that all other actions necessary or, in the opinion of the Administrative
Agent or the Lenders, desirable to perfect and protect the first priority Lien created by
the Collateral Documents (except to the extent otherwise permitted hereunder), and to
enhance the

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Administrative Agent’s and or Collateral Agent’s ability to preserve and protect
its interests in and access to the Collateral, have been taken.

     (g) The Administrative Agent’s receipt (with sufficient copies for all Lenders) of the
certificate of incorporation of the Borrower, together with all amendments, certified by an
appropriate governmental officer in its jurisdiction of organization, as well as any other
information required by Section 326 of the USA Patriot Act or necessary for the Administrative
Agent or any Lender to verify the identity of Borrower as required by Section 326 of the USA
Patriot Act.

     The Administrative Agent shall notify the Borrower and the Lenders of the Second Amended and
Restated Closing Date, and such notice shall be conclusive and binding.

     4.02 Deadline for Second Amended and Restated Closing Date. If for any reason the Second Amended
and Restated Closing Date has not occurred by April 30, 2007, then, unless otherwise agreed by all
Lenders, the Aggregate Revolving Commitment shall terminate at noon, Central time, on such date.

     4.03 Conditions to all Revolving Loans and L/C Credit Extension. The obligation of each Lender to
honor any Borrowing Notice and the obligation of the L/C Issuer to issue any Letter of Credit is
subject to the following conditions precedent:

     (a) The representations and warranties of the Loan Parties contained in Article V, including
without limitation, Section 5.05(b) and Section 5.06, or which are contained in any document
furnished at any time under or in connection herewith, including, but not limited to the Collateral
Documents, shall be true and correct in all material respects on and as of the date such Revolving
Loan is made, continued or converted, as applicable, or such Letter of Credit is issued except to
the extent that such representations and warranties specifically refer to an earlier date, in which
case they shall be true and correct as of such earlier date.

     (b) No Default or Event of Default shall exist or would result from such proposed Revolving
Loan, continuation or conversion, or L/C Credit Extension.

     (c) The Administrative Agent and, if applicable, the L/C Issuer, shall have received a Request
for Credit Extension and, if applicable, a Letter of Credit Application in accordance with the
requirements hereof.

     (d) The Administrative Agent shall have received, in form and substance reasonably
satisfactory to it, such other assurances, certificates, documents or consents related to the
foregoing as the Administrative Agent reasonably may require.

     Each Request for Credit Extension submitted by the Borrower shall be deemed to be a
representation and warranty that the conditions specified in Sections 4.03(a) and (b) have been
satisfied on and as of the date of the applicable Credit Extension.

     4.04 Conditions to all Revolving Loans to Fund Permitted Acquisitions. The obligation of each
Lender to honor any Borrowing Notice requesting a Revolving Loan in connection with a Permitted
Acquisition is subject to the following conditions precedent in addition to those set forth in
Section 4.03:

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     (a) the Administrative Agent shall have received written notice of Borrower’s intent to make
such Acquisition at least five (5) Business Days prior to the requested funding date;

     (b) the Administrative Agent shall have received, in form and substance reasonably
satisfactory to it, if available, historical audited financial statements of the target company’s
operations for a minimum of one year (and for up to three years if available) or if audited
historical financial statements are unavailable, then unaudited historical financial statements of
the target company’s operations for a minimum of one year (and for up to three years if available);

     (c) in the event that the applicable Borrowing Notice requests a Revolving Loan in an amount
equal to or greater than $10,000,000, an asset appraisal of the target company or target line of
business from a recognized independent third party appraiser, paid for by Borrower, in form and
substance satisfactory to the Administrative Agent; and in the event that the applicable Borrowing
Notice requests a Revolving Loan in an amount less than $10,000,000, the Borrower agrees to deliver
an asset appraisal of the target company or target line of business from a recognized independent
third party appraiser, paid for by Borrower, in form and substance satisfactory to the
Administrative Agent within 30 days after the closing of the acquisition.

     (d) a Compliance Certificate for the most recent quarter end demonstrating compliance with all
financial covenants on a pro forma basis giving effect to the proposed Permitted Acquisition for
which a Revolving Loan is being requested.

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

     The Borrower and each Loan Party by its execution of this Agreement represents and warrants to
the Administrative Agent and the Lenders that:

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

     5.02 Authorization; No Contravention. The execution, delivery and performance by each Loan Party
of each Loan Document to which such Person is party and the consummation of the transactions
described herein, have been duly authorized by all necessary corporate or other organizational
action, and do not and will not: (a) contravene the terms of any of such Person’s Organization
Documents; (b) conflict with or result in any breach or contravention of, or the creation of any
Lien under, any material Contractual Obligation to which such Person is a party or any order,
injunction, writ or decree of any Governmental Authority to which such Person or its property is
subject; or (c) violate any Law, except in each case referred to in the foregoing clauses (b) and
(c), to the extent such event could not reasonably be expected to have a Material Adverse Effect.

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     5.03 Governmental Authorization. No approval, consent, exemption, authorization, or other action
by, or notice to, or filing with, any Governmental Authority, except for the filings in connection
with the granting of security interests pursuant to the Collateral Documents, is necessary or
required in connection with the execution, delivery or performance by, or enforcement against, any
Loan Party of this Agreement or any other Loan Document.

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

     5.05 Financial Statements; No Material Adverse Effect.

     (a) The audited financial statements delivered to the Lenders were prepared in accordance with
GAAP consistently applied throughout the period covered thereby, except as otherwise expressly
noted therein. Such financial statements: (i) fairly present the financial condition of the
Borrower and its Subsidiaries (and to the knowledge of the Borrower in the case of financial
statements of target company delivered to pursuant to Section 4.04(b), the entities covered
thereby) on a consolidated basis as of the
date thereof and their results of operations for the period covered thereby in accordance with
GAAP consistently applied throughout the period covered thereby, except as otherwise expressly
noted therein; and (ii) fairly present the financial condition of the Borrower and its Subsidiaries
(and to the knowledge of the Borrower in the case of financial statements of target company
delivered to pursuant to Section 4.04(b), the entities covered thereby) on a consolidated basis as
of the date thereof and their results of operations for the period covered thereby, subject, in the
case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments.
Schedule 5.05 sets forth as of the Second Amended and Restated Closing Date all material
indebtedness and other liabilities, direct or contingent, of the Borrower and its Subsidiaries on a
consolidated basis as of the date of such financial statements, including liabilities for taxes,
material commitments and Indebtedness.

     (b) Since December 31, 2006, there has been no material adverse change in the operations,
business, properties or condition (financial or otherwise) of the Borrower and its Subsidiaries
taken as a whole.

     5.06 Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to the
knowledge of the Borrower threatened or contemplated in writing, at law, in equity, in arbitration
or before any Governmental Authority, by or against the Borrower or any Subsidiary or against any
of their properties or revenues which (a) seek to affect or pertain to this Agreement or any other
Loan Document, the borrowing of Revolving Loans, the use of the proceeds thereof, or the issuance
of Letters of Credit hereunder, or (b) if determined adversely, could reasonably be expected to
have a Material Adverse Effect.

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

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     5.08 Ownership of Property; Liens. From and after the Second Amended and Restated Closing Date (a)
each Loan Party has good record and marketable title in fee simple to, or valid leasehold interests
in, all its real and personal property necessary or used in the ordinary conduct of its business,
except for such defects in title as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect, and (b) the property of the Borrower and Loan Parties
is subject to no Liens, other than Permitted Liens. At the Second Amended and Restated Closing
Date the only real property owned by any Loan Party is the following: (i) owned by Allis-Chalmers
Tubular Services, Inc. in Edinburg, Texas, (ii) owned by Allis-Chalmers Rental Services, Inc. in
Victoria, Texas and Morgan City, Louisiana, and (iii) owned by Allis-Chalmers Production Services,
Inc. in Broussard, Louisiana.

     5.09 Environmental Compliance. The Borrower has reasonably concluded that (a) there are no claims
alleging potential liability under or responsibility for violation of any Environmental Law except
any such claims that could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, (b) there is no environmental condition or circumstance, such as the
presence or Release of any Hazardous Substance,
on any property owned, operated or used the Borrower or any Borrower Affiliate that could
reasonably be expected to have a Material Adverse Effect, and (c) there is no violation of or by
the Borrower or any Borrower Affiliate of any Environmental Law, except for such violations as
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

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

     5.11 Taxes. The Borrower and the Subsidiaries have filed all federal, state and other material tax
returns and reports required to be filed for tax years ending prior to 2007, and have paid all
federal, state and other material taxes, assessments, fees and other governmental charges levied or
imposed upon them or their properties, income or assets otherwise due and payable, except those
which are being contested in good faith by appropriate proceedings and for which adequate reserves
have been provided in accordance with GAAP. There is no proposed tax assessment against Borrower
or any of its Subsidiaries that would, if made, have a Material Adverse Effect. Neither any Loan
Party nor any Subsidiary thereof is party to any tax sharing agreement.

     5.12 ERISA Compliance.

     (a) Each Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other federal or state Laws except to the extent that noncompliance could not
reasonably be expected to have a Material Adverse Effect. Each Plan that is intended to qualify
under Section 401(a) of the Code has received a favorable determination letter from the IRS or an
application for such a letter is currently being processed by the IRS with respect thereto and, to
the best knowledge of the Borrower, nothing has occurred which would prevent, or cause the loss of,
such qualification. The Borrower and each ERISA Affiliate have made all required contributions to
each Plan subject to Section 412 of the Code, and no application for a funding waiver or an
extension of any amortization period pursuant to Section 412 of the Code has been made with respect
to any Plan.

     (b) There are no pending or, to the best knowledge of the Borrower, threatened claims, actions
or lawsuits, or action by any Governmental Authority, with respect to any Plan that could

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reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction
or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or
could reasonably be expected to result in a Material Adverse Effect.

     (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension Plan
has any Unfunded Pension Liability; (iii) neither the Borrower nor any ERISA Affiliate has
incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any
Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither
the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability
(and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would
result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer
Plan; and (v) neither the
Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to
Sections 4069 or 4212(c) of ERISA.

     5.13 Subsidiaries and other Investments. As of the Second Amended and Restated Closing Date the
Borrower (i) will have no Subsidiaries other than those specifically disclosed in Schedule 5.13,
and all of the outstanding equity interests in such Subsidiaries have been validly issued, are
fully paid and nonassessable and as of the Second Amended and Restated Closing Date are owned by a
Loan Party in the amounts specified in Schedule 5.13 free and clear of all Liens, (ii) will have
no equity investment in any other corporation or other entity other than those specifically
disclosed in Schedule 5.13, and (iii) will have no other Investments except as disclosed in
Schedule 5.13.

     5.14 Margin Regulations; Investment Company Act; Use of Proceeds.

     (a) Neither the Borrower nor any of its Subsidiaries is engaged nor will it engage,
principally or as one of its important activities, in the business of purchasing or carrying margin
stock (within the meaning of Regulation U issued by the Board), or extending credit for the purpose
of purchasing or carrying margin stock. Margin stock constitutes less than 25% of those assets of
each Loan Party which are subject to any limitation on a sale, pledge, or other restrictions
hereunder.

     (b) Neither the Borrower nor any Borrower Affiliate, no Person controlling the Borrower or any
Borrower Affiliate, or any Subsidiary thereof is or is required to be registered as an “investment
company” under the Investment Company Act of 1940.

     (c) The Borrower will use all proceeds of Credit Extension in the manner set forth in Section
6.12.

     5.15 Disclosure. The Borrower has disclosed to the Administrative Agent and the Lenders all
agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries
is subject, and all other matters known to it, that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect. No report, financial statement,
certificate or other information furnished (whether in writing or orally) by or on behalf of any
Loan Party to the Administrative Agent or any Lender in connection with the transactions
contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other
Loan Document (in each case, as modified or supplemented by other information so furnished)
contains any material misstatement of fact or omits to state any material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; provided that, with respect to projected financial information, the

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Borrower represents
only that such information was prepared in good faith based upon assumptions believed to be
reasonable at the time.

     5.16 Labor Matters. There are no actual or threatened strikes, labor disputes, slowdowns,
walkouts, or other concerted interruptions of operations that could reasonably be expected to have
a Material Adverse Effect.

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

     5.18 Third Party Approvals. No approval, consent, exemption, authorization, or other action by, or
notice to, or filing with, any party that is not a party to this Agreement is necessary or required
in connection with the execution, delivery or performance by, or enforcement against, any Loan
Party of this Agreement or any other Loan Document except where obtained or where the failure to
receive such approval, consent, exemption, authorization, or the failure to do such other action
by, or provide such notice could not reasonably be expected to have a Material Adverse Effect.

     5.19 Solvency. Neither the Borrower nor any of its Subsidiaries is “insolvent” as such term
is used and defined in (i) the United States Bankruptcy Code or (ii) the Texas Uniform Fraudulent
Transfer Act, Tex. Bus. & Com. Code Ann. §24.003.

     5.20 Collateral.

     (a) The provisions of each of the Collateral Documents are effective to create in favor of the
Administrative Agent or Collateral Agent for the benefit of the Lenders, a legal, valid and
enforceable first priority security interest in all Rights, titles and interests of each Loan Party
in the Collateral described therein, except as otherwise permitted hereunder; and financing
statements have been filed in the offices in all of the jurisdictions listed in the schedule to all
Security Agreements.

     (b) All representations and warranties of each Loan Party thereto contained in the Collateral
Documents are true and correct in all material respects.

     (c) None of the terms or provisions of any indenture, mortgage, deed of trust, agreement or
other instrument to which the Borrower or any Loan Party is a party or by which the Borrower or any
Loan Party or the property of the Borrower or any Loan Party is bound prohibit the filing or
recordation of any of the Loan Documents or any other action which is necessary or appropriate in
connection with the perfection of the Liens on material assets evidenced and created by any of the
Loan Documents.

     5.21 Intellectual Property: Licenses, Etc.. The Borrower and its Subsidiaries own, or possess
the right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent
rights, franchises, licenses and other intellectual property rights that are reasonably necessary
for the operation of their respective businesses, without conflict with the rights of any other
Person. To the best knowledge of the Borrower, no slogan or other advertising device, product,
process, method, substance, part or other material now employed, or now contemplated to be
employed, by the Borrower or any

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Subsidiary infringes upon any rights held by any other Person. No
claim or litigation regarding any of the foregoing is pending or, to the best knowledge of the
Borrower, threatened, which, either individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect.

     5.22 Leased Locations. Schedule 5.22 lists as of the Second Amended and Restated Closing Date
all locations in the US where any Collateral is located.

     5.23 Material Agreements. Set forth on Schedule 5.23 are all material agreements of any Loan
Party as of the Second Amended and Restated Closing Date, which for purposes of this representation
are agreements (whether written or oral) relating to Indebtedness of any Loan Party in excess of
$1,000,000 or pertaining to sales or provision of services accounting for more than 10% of any Loan
Party’s aggregate Consolidated EBITDA. The Borrower has delivered, or caused to be delivered, to
the Administrative Agent and each Lender prior to the Second Amended and Restated Closing Date a
copy of each Material Agreement.

ARTICLE VI.

AFFIRMATIVE COVENANTS

     So long as any Lender shall have any Revolving Commitment hereunder, or any Revolving Loan or
other Obligation shall remain unpaid or unsatisfied, or any Letter of Credit shall remain
outstanding, the Borrower shall, and shall cause each Subsidiary to:

     6.01 Financial Statements. Deliver to the Administrative Agent and each Lender, in form and detail
reasonably satisfactory to the Administrative Agent and the Required Lenders:

     (a) as soon as available, but in any event within 90 days after the end of each Fiscal Year of
the Borrower, a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of
such Fiscal Year, and the related consolidated statements of income or operations, shareholders’
equity and cash flows for such Fiscal Year, setting forth in each case in comparative form the
figures for the previous Fiscal Year, all in reasonable detail and prepared in accordance with
GAAP, audited and accompanied by (i) a report and opinion of a firm of independent certified public
accountants of nationally recognized standing reasonably acceptable to the Required Lenders, which
report and opinion shall be prepared in accordance with generally accepted auditing standards and
applicable state and federal securities laws and shall not be subject to any “going concern” or
like qualification or exception or any qualification or exception as to the scope of such audit and
(ii) if applicable, an attestation report of such independent certified public accountants as to
the Borrower’s internal controls pursuant to Section 404 of Sarbanes-Oxley expressing a conclusion
to which the Required Lenders do not object;

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

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     (c) within 45 days after the end of each Fiscal Year, the Borrower shall deliver a one year
projection/budget for the Borrower and its Subsidiaries on a consolidated basis for the then
current Fiscal Year.

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

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

     (b) promptly after the same are available, copies of each annual report, proxy or financial
statement or other report or written communication sent to the equity owners of the Borrower, and
copies of all annual, regular, periodic and special reports and registration statements which the
Borrower may file or be required to file with the Securities and Exchange Commission under Section
13 or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to be delivered to
the Administrative Agent pursuant hereto;

     (c) no later than ten (10) days after Borrower’s or any Subsidiary’s receipt of any Net Cash
Proceeds resulting from a Triggering Sale, a Triggering Sale Certificate relating to such
Triggering Sale;

     (d) no later than ten (10) days after Borrower or any Subsidiary has Reinvested any Reduction
Amount, a Reinvestment Certificate describing the amount, date and particulars relating to the
Reduction Amount so Reinvested;

     (e) to the extent necessary to show compliance with the Fixed Asset Coverage Ratio set forth
in Section 7.19, but only to such extent, delivery within the prior 12-month period of one or more
domestic fixed asset appraisal(s) by a third party satisfactory to the Administrative Agent;

     (f) at the request of the Required Lenders (to include the Administrative Agent), the Borrower
will deliver updated appraisals that cover all domestic fixed assets within sixty (60) days of such
request;

     (g) promptly upon receipt thereof, copies of all material notices, requests and other
documents received by any Loan Party under or pursuant to any Contractual Obligation governing
Indebtedness that is outstanding in a principal amount of at least $1,000,000 and, from time to
time upon
the reasonable request by the Administrative Agent, such information and reports regarding
such Contractual Obligation as the Administrative Agent may reasonably request;

     (h) promptly after receipt thereof, copies of all Revenue Agent Reports (IRS Form 886), or
other written proposals of the IRS, that propose, determine or otherwise set forth positive
adjustments to the Federal income tax liability of the affiliated group (within the meaning of
Section 1504(a)(1) of the Code) of which the Borrower is a member aggregating $1,000,000 or more;
and

     (i) promptly, such additional information regarding the business, financial or corporate
affairs of Borrower or any of its Subsidiaries as the Administrative Agent, at the request of any
Lender, may from time to time reasonably request, which information may include copies of any
detailed audit reports, if any, management letters or recommendations submitted to the board of
directors (or the audit

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committee of the board of directors) of the Borrower by independent
accountants in connection with the accounts or books of the Borrower or any Subsidiary, or any
audit of any of them.

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

     (a) of the occurrence of any Default or Event of Default;

     (b) of any matter that has resulted or could reasonably be expected to result in a Material
Adverse Effect, including (i) breach or non-performance of, or any default under, a Contractual
Obligation of the Borrower or any Subsidiary; (ii) any dispute, litigation, investigation,
proceeding or suspension of licenses or permits between the Borrower or any Subsidiary and any
Governmental Authority; or (iii) the commencement of, or any material development in, any
litigation or proceeding affecting the Borrower or any Subsidiary, including pursuant to any
applicable Environmental Laws;

     (c) of the occurrence of any ERISA Event;

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

     (e) of any material change in any material fact or material circumstances represented or
warranted by Borrower or any other Loan Party with respect to any of the Collateral that could
reasonably be expected to have a material adverse effect on the Collateral (taken as a whole); and

     (f) any claim, action, or proceeding affecting title to all or any material amount of the
Collateral or the Lien securing the Obligations.

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

     6.04 Payment of Obligations. Pay and discharge as the same shall become due and payable, all its obligations and liabilities,
including (a) the Obligations, (b) all tax liabilities, assessments and governmental charges or
levies upon it or its properties or assets and (c) all lawful claims which, if unpaid, would by Law
become a Lien upon its property; except in the case of clause (b) or (c), where (i) the validity
thereof are being contested in good faith by appropriate proceedings and (ii) adequate reserves in
accordance with GAAP are being maintained by the Borrower or a Subsidiary; unless and until any
Lien resulting therefrom attaches to its property and becomes enforceable against its other
creditors.

     6.05 Preservation of Existence, Etc. Preserve, renew and maintain in full force and effect
its legal existence and good standing under the Laws of the jurisdiction of its organization except
in a transaction permitted by Sections 7.06 and 7.07; and (b) take all reasonable action to
maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the
normal conduct of its business, except to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect.

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     6.06 Maintenance of Assets and Business; Movement of Collateral.

     (a) Maintain all material properties, equipment, licenses, permits, and franchises necessary
for its normal business; (b) keep all of its assets which are useful in and necessary to its
business in good working order and condition (ordinary wear and tear excepted) and make all
necessary repairs thereto and replacements thereof; (c) do all things necessary to obtain, renew,
extend, and continue in effect all Authorizations which may at any time and from time to time be
necessary for the operation of its business in compliance with applicable Law, except where the
failure to so maintain, renew, extend, or continue in effect could not reasonably be expected to
have a Material Adverse Effect; (d) preserve or renew all of its registered patents, trademarks,
trade names and service marks, the non-preservation of which could reasonably be expected to have a
Material Adverse Effect; and (e) use the standard of care typical in the industry in the operation
and maintenance of its facilities.

     (b) Keep all Collateral other than Collateral located outside the United States on the Second
Amended and Restated Closing Date within the United States unless prior written notice is given to
the Administrative Agent of the intent to move such Collateral outside the United States and the
Administrative Agent consents in writing to the movement of such Collateral outside the United
States.

     6.07 Maintenance of Insurance. Maintain insurance with financially sound and reputable
insurance companies not Affiliates of Borrower with respect to its properties and business
(including business interruption insurance) against such casualties and contingencies and of such
types and in such amounts as is customary in the case of similar businesses and which is
satisfactory to the Administrative Agent and the Required Lenders and will (i) furnish to the
Administrative Agent on each anniversary of the Second Amended and Restated Closing Date a
certificate or certificates of insurance from the applicable insurance company evidencing the
existence of insurance required to be maintained by this Agreement and the other Loan Documents and
evidencing that Administrative Agent is listed as sole loss payee on property insurance and the
Administrative Agent and Lenders are additional insureds on liability insurance, and (ii) upon
request of the Administrative Agent, furnish to each Lender at reasonable intervals a certificate
of an Authorized
Officer of the Borrower setting forth the nature and extent of all insurance maintained in
accordance with this Section.

     6.08 Compliance with Laws and Contractual Obligations. Comply in all material respects with
the requirements of all Laws (including Environmental Laws and ERISA Laws) applicable to it or to
its business or property, except in such instances in which (i) such requirement of Law is being
contested in good faith or a bona fide dispute exists with respect thereto, or (ii) the failure to
comply therewith could not be reasonably expected to have a Material Adverse Effect; and (b) comply
with all Contractual Obligations, except the failure to comply therewith could not be reasonably
expected to have a Material Adverse Effect.

     6.09 Books and Records. Maintain proper books of record and account, in which full, true and
correct entries in conformity with GAAP consistently applied shall be made of all financial
transactions and matters involving the assets and business of the Borrower or such Subsidiary, as
the case may be.

     6.10 Inspection Rights. Permit representatives and independent contractors of the Administrative
Agent and each Lender to visit and inspect any of its properties, to examine its corporate,
financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its
affairs, finances and accounts with its directors, officers, and independent public accountants,
all at the expense

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

     6.11 Compliance with ERISA. With respect to each Plan maintained by Borrower, do each of the
following: (a) maintain each Plan in compliance in all material respects with the applicable
provisions of ERISA, the Code and other federal or state Laws; (b) cause each Plan which is
qualified under Section 401(a) of the Code to maintain such qualification; and (c) make all
required contributions to any Plan subject to Section 412 of the Code, except to the extent that
noncompliance, with respect to each event listed above, could not be reasonably expected to have a
Material Adverse Effect

     6.12 Use of Proceeds. Use proceeds of the Revolver Facility to (i) refinance the Indebtedness
outstanding under the First Amended and Restated Credit Agreement, (ii) finance working capital
requirements and other general corporate purposes of the Borrower and its Domestic Subsidiaries,
including Permitted Acquisitions, (iii) issue Letters of Credit, and (iv) pay transaction fees and
expenses associated with this Agreement.

     6.13 Guaranties. As an inducement to the Administrative Agent and Lenders to enter into this
Agreement, each Domestic Subsidiary of Borrower shall execute a Guaranty in connection with this
Agreement. In addition, at the time of the formation or acquisition of any Domestic Subsidiary of
the Borrower, the Borrower shall cause such Subsidiary to execute and deliver to the Administrative
Agent (a) a Guaranty providing for the
guaranty of payment and performance of the Obligations, (b) Collateral Documents in form and
substance satisfactory to the Administrative Agent creating liens and security interests in the
assets and properties of such Domestic Subsidiary and in the Equity Interests in such Domestic
Subsidiary, (c) certified copies of such Subsidiary’s Organization Documents and opinions of
counsel with respect to such Subsidiary and such Guaranty and Collateral Documents, if requested by
the Administrative Agent, and (d) such other documents and instruments as may be required with
respect to such Domestic Subsidiary pursuant to Section 6.14. At the time of the formation or
acquisition of any Foreign Subsidiary owned directly by the Borrower or directly by a Domestic
Subsidiary of the Borrower, the Borrower shall cause 66+2/3% of such Foreign Subsidiary’s Equity
Interests to be subjected to a lien to secure the Obligations.

     6.14 Further Assurances; Additional Collateral.

     (a) The Borrower shall and shall cause each of its Domestic Subsidiaries to take such actions
and to execute and deliver such documents and instruments as the Administrative Agent shall require
to ensure that the Administrative Agent or Collateral Agent on behalf of the Lenders shall, at all
times, have received currently effective duly executed Loan Documents granting Liens and security
interests in substantially all of the assets of the Borrower and each of its Domestic Subsidiaries,
including all fixed assets, accounts receivable, inventory, Equity Interests, equipment, general
intangibles, and deposit accounts; provided that any real property of the Borrower or any of its
Subsidiaries is not required to subject to a Lien securing the Obligations.

     (b) In connection with the actions required pursuant to the foregoing subsection (a), the
Borrower shall and shall cause each Domestic Subsidiary to execute and deliver such stock
certificates, blank stock powers, evidence of corporate authorization, opinions of counsel, current
valuations, evidence

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of title and other documents, and shall use commercially reasonable efforts to
obtain any third party consents, as shall be reasonably requested by the Administrative Agent, in
each case in form and substance reasonably satisfactory to the Administrative Agent.

     (c) The Liens required by this Section 6.14 shall be first priority perfected Liens in favor
of the Administrative Agent or Collateral Agent for the benefit of the Lenders, subject to no other
Liens except Permitted Liens of the type described in Section 7.01. If the Administrative Agent
shall determine that, as of any date, the Borrower shall have failed to comply with this Section
6.14, the Administrative Agent may (and at the direction of the Required Lenders, shall) notify the
Borrower in writing of such failure and, within 30 days from and after receipt of such written
notice by the Borrower, the Borrower shall execute and deliver to the Administrative Agent
supplemental or additional Loan Documents, in form and substance satisfactory to the Administrative
Agent and its counsel, securing payment of the Revolver Notes and the other Obligations and
covering additional assets and properties of the Borrower or its Domestic Subsidiaries not then
encumbered by any Loan Documents (together with such other information, as may be requested by the
Administrative Agent, each of which shall be in form and substance reasonably satisfactory to the
Administrative Agent) such that the Administrative Agent shall have received currently effective
duly executed and perfected Collateral Documents encumbering substantially all of the assets of the
Borrower and its Domestic Subsidiaries as required by Section 6.14(a).

ARTICLE VII.

NEGATIVE COVENANTS

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

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

     (a) Liens pursuant to any Loan Document;

     (b) Liens existing on the Second Amended and Restated Closing Date and listed on Schedule 7.01
to this Agreement and any renewals or extensions thereof; provided that the property covered
thereby is not changed, (ii) the amount secured or benefited thereby is not increased, (iii) the
direct or any contingent obligor with respect thereto is not changed, and (iv) any renewal or
extension of the obligations secured or benefited thereby is permitted by Section 7.04(b);

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

     (d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens
arising in the ordinary course of business which are not overdue for a period of more than 60 days
or which are being contested in good faith and by appropriate proceedings, if adequate reserves
with respect thereto are maintained on the books of the applicable Person;

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

     (f) deposits to secure the performance of bids, trade contracts and leases (other than
Indebtedness), statutory obligations, surety bonds (other than bonds related to judgments or
litigation), performance bonds and other obligations of a like nature, in each case incurred in the
ordinary course of business;

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

     (h) any Lien existing on any asset (other than stock of a Subsidiary) prior to acquisition
thereof by the Borrower or a Loan Party, and not created in contemplation of such acquisition;
provided that (i) no such Lien shall be extended to cover property other than the asset being
acquired, (ii) such Lien was not created in contemplation of or in connection with such
acquisition, and (iii) the Indebtedness thereby secured is permitted by Section 7.04(f);

     (i) Liens securing Capital Lease obligations permitted under Section 7.04(g); provided that no
such Lien shall extend to or cover any Collateral or assets other than the assets subject to such
Capital Lease obligations and Liens securing obligations to make equipment financing, lease or
rental payments permitted under Section 7.04(g);

     (j) Purchase money Liens upon or in any property acquired by Borrower or any Loan Party to
secure the deferred portion of the purchase price of such property or to secure Indebtedness
incurred to finance the acquisition of such property; provided that (i) no such Lien shall be
extended to cover property other than the property being acquired, and (ii) the Indebtedness
thereby secured is permitted by Section 7.04(e);

     (k) Liens reserved in or exercisable under any lease or sublease to which the Borrower or a
Loan Party is a lessee which secure the payment of rent or compliance with the terms of such lease
or sublease; provided, that (i) the rent under such lease or sublease is not then overdue and the
Borrower or Loan Party is in material compliance with the terms and conditions thereof and (ii) the
obligation for the payment of rent is permitted by Section 7.05;

     (l) any interest or title of a lessor under any lease entered into by the Borrower or any Loan
Party in the ordinary course of its business and covering only the assets so leased;

     (m) Liens securing Indebtedness of DLS to Borrower of up to $19,100,000 to refinance
Indebtedness owing by DLS to a third party permitted under Section 7.04(j);

     (n) Liens securing unlimited intercompany Indebtedness between DLS and DLS’ Subsidiaries,
including both “due to” and “due from” intercompany loans and receivables between DLS and DLS’
Subsidiaries permitted under Section 7.04(k);

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     (o) Liens securing Indebtedness of up to $7,302,000 owing by DLS’ Argentina Branch to US Bank
National Association permitted under Schedule 5.05); and

     (p) Liens on assets of DLS and DLS’ Subsidiaries securing Indebtedness of up to $10,000,000
owing by DLS and/or DLS’ Subsidiaries to local lenders in Argentina incurred to fund local
operations in Argentina or Bolivia permitted under Section 7.04(m).

     7.02 Investments. Make or own any Investments (including any Investment in any Foreign Subsidiary
or in any Subsidiary which is not a Guarantor) , except:

     (a) Investments existing on the Second Amended and Restated Closing Date and listed on
Schedule 5.13;

     (b) Cash Equivalents;

     (c) advances to officers, directors and employees of the Borrower and Subsidiaries in an
aggregate amount not to exceed $50,000 at any time outstanding, for travel, entertainment,
relocation and analogous ordinary business purposes;

     (d) Investments of the Borrower in any Domestic Subsidiary which is a Guarantor and
Investments of any Guarantor in another Guarantor;

     (e) Investments consisting of extensions of credit in the nature of accounts receivable or
notes receivable arising from the grant of trade credit in the ordinary course of business to
Persons other than Affiliates of the Borrower, and Investments received in satisfaction or partial
satisfaction thereof from financially troubled account debtors to the extent reasonably necessary
in order to prevent or limit loss;

     (f) Permitted Acquisitions not to exceed $50,000,000 in the aggregate over a rolling twelve
month period unless the Administrative Agent and Required Lenders have approved in writing any
Permitted Acquisition which would result in the aggregate amount of Permitted Acquisitions
exceeding $50,000,000 over a rolling twelve month period; provided, that after the $50,000,000
rolling twelve month aggregate threshold has been exceeded, if the Borrower requests that a new
$50,000,000 threshold be instituted and the Administrative Agent and the Required Lenders approve
such new $50,000,000 threshold in writing, then a new cumulative permissible limit of $50,000,000
in Permitted Acquisitions over a rolling twelve month period shall be in effect;

     (g) Investments made by issuance of Borrower’s Equity Interest;

     (h) other Investments not exceeding $100,000 in the aggregate in any Fiscal Year of the
Borrower;

     (i) Investments consisting of Borrower’s lending up to $19,100,000 to DLS to refinance
Indebtedness owing by DLS to a third party;

     (j) Investments consisting of unlimited intercompany Indebtedness between DLS and DLS’
Subsidiaries, including both “due to” and “due from” intercompany loans and receivables between DLS
and DLS’ Subsidiaries;

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     (k) Investments consisting of Borrower’s and Guarantors’ being liable as guarantors for up to
$7,302,000 in connection with a letter of credit issued by US Bank National Association for DLS’
Argentina Branch; and

     (l) other Investments by Borrower (including monies funded under this Agreement and lent to
DLS and DLS’ Subsidiaries and Letters of Credit issued under this Agreement to secure obligations
of DLS and DLS’ Subsidiaries) in DLS and/or DLS’ Subsidiaries in an aggregate amount at any one
time not to exceed $5,000,000 (such $5,000,000 limit to be applicable to all Investments described
in this clause (l), whether or not funded or issued under this Agreement).

     7.03 Swap Contracts. Enter into any Swap Contracts other than in the ordinary course of business
for the purpose of protecting against fluctuations in interest rates or foreign exchange rates and
not for purposes of speculation; provided that the Swap Contract shall not contain any provision
exonerating the non-defaulting party from its obligation to make payments on outstanding
transactions to the defaulting party.

     7.04 Indebtedness. Create, incur, or assume any Indebtedness except:

     (a) Indebtedness under the Loan Documents;

     (b) the Senior Unsecured Notes and any Indebtedness (including Subordinated Indebtedness)
outstanding on the date hereof and listed on Schedule 5.05 and any refinancings, refundings,
renewals or extensions thereof; provided that the Weighted Average Life to Maturity of the Senior
Unsecured Notes (or the series thereof being refinanced, refunded, renewed or extended) is not
reduced at the time of such refinancing, refunding, renewal or extension; provided further that the
amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or
extension except by an amount equal to a reasonable premium or other reasonable amount paid, and
fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal
to any existing commitments unutilized thereunder;

     (c) Guaranty Obligations of the Borrower and/or any of its Subsidiaries in respect of
Indebtedness otherwise permitted hereunder of the Borrower;

     (d) Obligations (contingent or otherwise) of the Borrower or any Subsidiary existing or
arising under any Swap Contract to the extent permitted by Section 7.03;

     (e) Indebtedness of the Borrower and its Subsidiaries in respect of purchase money obligations
for fixed or capital assets within the limitations set forth in Section 7.01(j); provided, however,
that the aggregate annual amount of such Indebtedness at any one time outstanding shall not exceed
$2,000,000;

     (f) Indebtedness associated with Liens on assets acquired by the Borrower or any Loan Party or
Indebtedness assumed by the Borrower or any Loan Party within the limitations set forth in Section
7.01(h), in either instance in connection with a Permitted Acquisition; provided, however, such
Indebtedness at any one time outstanding shall not exceed $2,000,000;

     (g) Indebtedness of the Borrower and its Subsidiaries in connection with Capital Leases and
obligations to make equipment financing, lease or rental payments within the limitations set forth
in

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Section 7.01(i); provided, however, such indebtedness at any one time outstanding shall not
exceed $15,000,000;

     (h) Indebtedness of DLS to Borrower of up to $19,100,000 to refinance Indebtedness owing by
DLS to a third party;

     (i) unlimited intercompany Indebtedness between DLS and DLS’ Subsidiaries, including both “due
to” and “due from” intercompany loans and receivables between DLS and DLS’ Subsidiaries; and

     (j) Indebtedness of up to $10,000,000 owing by DLS and/or DLS’ Subsidiaries owing to local
lenders in Argentina incurred to fund local operations in Argentina or Bolivia; provided, such
Indebtedness may not be guaranteed by Borrower or any of its Subsidiaries (other than DLS and DLS’
Subsidiaries) or secured by any assets of Borrower or any of its Subsidiaries (other than DLS
and DLS’ Subsidiaries) but such Indebtedness may be secured by Liens on assets of DLS and DLS’
Subsidiaries;

provided, that if any Indebtedness is incurred pursuant to this Section 7.04, both before and after
such Indebtedness is created, incurred or assumed, no Default or Event of Default shall exist.

     7.05 Lease Obligations. Create or suffer to exist any obligations for the payment of rent for any
property under lease or agreement to lease, except for operating leases (other than those
constituting Synthetic Lease Obligations) entered into or assumed by the Borrower or any Subsidiary
in the ordinary course of business prior to the Second Amended and Restated Closing Date; provided
that, such operating leases will not require the payment of an aggregate amount of payments in
excess of (excluding escalations resulting from a rise in the consumer price or similar index)
$10,000,000 during the full remaining term of such leases, exclusive of expenses for maintenance,
repairs, insurance taxes, assessments and similar changes.

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

     (a) any Subsidiary may merge with (i) the Borrower; provided that the Borrower shall be the
continuing or surviving Person, or (ii) any one or more other Subsidiaries; provided that when any
Guarantor is merging with another Subsidiary that is not a Guarantor, a Guarantor shall be the
continuing or surviving Person; and

     (b) any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary
liquidation or otherwise) to the Borrower or to another Subsidiary; provided that if the transferor
in such a transaction is a Guarantor, then the transferee must either be the Borrower or a
Guarantor.

     7.07 Dispositions.

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

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     (a) Dispositions of obsolete or worn out property, whether now owned or hereafter acquired, in
the ordinary course of business and Dispositions of property no longer used or useful in the
ordinary course of business;

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

     (c) Dispositions of property by any Subsidiary to the Borrower, or by any Subsidiary or by the
Borrower, to a Wholly-Owned Subsidiary that is a Guarantor;

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

     (e) Dispositions permitted by Section 7.06.

     7.08 Restricted Payments; Distributions and Redemptions. Declare or make, directly or indirectly,
any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that:

     (a) each Subsidiary may make Restricted Payments to the Borrower and to Wholly-Owned
Subsidiaries of the Borrower;

     (b) the Borrower and each Subsidiary may declare and make dividend payments or other
distributions payable solely in the common stock or other common Equity Interests of such Person;
and

     (c) the Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity
Interests issued by it with the proceeds received from the substantially concurrent issue of new
shares of its common stock or other common Equity Interests.

     7.09 ERISA. At any time engage in a transaction which could be subject to Section 4069 or 4212(c)
of ERISA, or permit any Plan maintained by Borrower or an ERISA Affiliate to: (a) engage in any
non-exempt “prohibited transaction” (as defined in Section 4975 of the Code); (b) fail to comply
with ERISA or any other applicable Laws; or (c) incur any material “accumulated funding deficiency”
(as defined in Section 302 of ERISA), which, with respect to each event listed above, could be
reasonably expected to have a Material Adverse Effect.

     7.10 Change in Nature of Business. Engage in any material line of business substantially different
from (a) those lines of business conducted by the Borrower and its Subsidiaries on the Second
Amended and Restated Closing Date, or (b) other businesses reasonably related to the business
described in clause (a).

     7.11 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate of
the Borrower, whether or not in the ordinary course of business, other than on fair and reasonable
terms substantially as favorable to the Borrower or such Subsidiary as would be obtainable by the
Borrower or such Subsidiary at the time in a comparable arm’s length transaction with a Person
other than an Affiliate.

     7.12 Burdensome Agreements. Enter into any Contractual Obligation (other than this Agreement, any
other Loan Document or the indentures governing the Senior Unsecured Notes) that (a) limits the
ability (i) of any Subsidiary to make Restricted Payments to the Borrower or any Guarantor or

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to otherwise transfer property to the Borrower or any Guarantor, (ii) of any Subsidiary to Guarantee
the Indebtedness of the Borrower or (iii) of the Borrower or any Subsidiary to create, incur,
assume or suffer to exist Liens on property of such Person; provided, however, that this clause
(iii) shall not prohibit any negative pledge incurred or provided in favor of any holder of
Indebtedness permitted under Sections 7.04(e) or 7.05 solely to the extent any such negative pledge
relates to the property financed by or the subject of such Indebtedness; or (b) requires the
grant of a Lien to secure an obligation of such Person if a Lien is granted to secure another
obligation of such Person.

     7.13 Use of Proceeds. Use the proceeds of any Revolving Loan or Letter of Credit for purposes
other than those permitted by Section 6.12, or use the proceeds of any Revolving Loan, whether
directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry
margin stock (within the meaning of Regulation U of the Board) or to extend credit to others for
the purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred
for such purpose.

     7.14 Capital Expenditures. Make or incur capital expenditures in excess of $80,000,000 for the
2007 Fiscal Year or thereafter, on a rolling four-quarter basis, an amount in excess of 20% of the
Borrower’s Consolidated Net Worth as of the last day of the most recent quarter end for which
financial statements have been delivered pursuant to Sections 6.01(a) or (b); provided, however,
there shall be excluded from capital expenditures “lost in hole” replacement capital expenditures
invoiced to customers of Borrower or its Subsidiaries by Borrower or its Subsidiaries in the
ordinary course of business unless any such invoice remains unpaid for more than 90 days after its
due date, in which case such invoiced amount shall be included in capital expenditures.

     7.15 Prepayments. Except for Indebtedness incurred pursuant to the Loan Documents or except as may
be required under any indenture governing the Senior Unsecured Notes, neither Borrower nor any
Subsidiary shall prepay any Indebtedness.

     7.16 Subordinated Indebtedness; Senior Unsecured Notes. The Borrower will not amend documents
governing the Senior Unsecured Notes or Subordinated Indebtedness unless approved in writing by the
Required Lenders (other than ministerial amendments and amendments to extend the time or times for
payment). The Borrower shall not make any payments of interest or any other amounts in respect of
the Subordinated Indebtedness if a Default or Event of Default shall have occurred and be
continuing or would result from such payment. The Borrower will not repay any principal, interest
or other indebtedness in respect of the Subordinated Indebtedness, or make any redemption or
acquisition for value or defeasance, refinancing or exchange thereof or therefore, or make any
payments in contravention of the applicable Subordination Agreement; provided, however, with
respect to all Subordinated Indebtedness up to $1,000,000 principal may be repaid or prepaid so
long as no Default or Event of Default shall have occurred and be continuing or would result from
such payment and Borrower shall so certify to Administrative Agent in writing prior to any such
payment.

     7.17 Amendments of Constitutive Documents. Borrower shall not amend, or permit any of its
Subsidiaries to amend, its certificate of incorporation or bylaws or other constitutive documents
other than amendments that could not be reasonably expected to have a Material Adverse Effect.

     7.18 Accounting Changes. Borrower shall not make or permit, or permit any of its Subsidiaries
to make or permit, any change in (i) accounting policies or reporting practices, except as required
or permitted by GAAP, or (ii) in its Fiscal Year.

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     7.19 Financial Covenants.

     (a) Interest Coverage Ratio. Permit the Interest Coverage Ratio as of the end of any fiscal
quarter to be less than 2.75 to 1.0.

     (b) Fixed Asset Coverage Ratio. Permit the Fixed Asset Coverage Ratio as of the end of any
fiscal quarter to be less than 1.33 to 1.0.

     (c) Leverage Ratio. Permit the Leverage Ratio as of the end of any fiscal quarter to be
greater than 4.00 to 1.0.

     (d) Senior Leverage Ratio. Permit the Senior Leverage Ratio as of the end of any fiscal
quarter to be greater than 2.50 to 1.0.

     (e) Adjustments for Permitted Acquisitions. For purposes of determining compliance with
Section 7.19(a), (c) and (d):

     (i) Consolidated EBITDA shall be calculated after giving effect, on a pro forma basis
for the four consecutive fiscal quarters most recently completed, to any Permitted
Acquisition or any acquisition pursuant to Section 7.02(g) occurring during such period, as
if such acquisition occurred on the first day of such period.

     (ii) If, in connection with a Permitted Acquisition or any acquisition pursuant to
Section 7.02(g), any Indebtedness is incurred or assumed by the Borrower or any of its
Subsidiaries, then Consolidated Interest Charges shall be calculated, on a pro forma basis
for the four quarters most recently completed, as if such Indebtedness had been incurred on
the first day of such period.

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

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

     (a) Non-Payment. The Borrower or any other Loan Party fails to pay (i) any amount due
under the Agent/Arranger Fee Letter when and as required to be paid therein, (ii) when and as
required to be paid herein, any amount of principal of any Revolving Loan or any L/C Obligation or
(iii) within three
Business Days after the same becomes due, any interest on any Revolving Loan, any L/C
Obligation, any commitment or other fee due hereunder (other than a fee specified in the
Agent/Arranger Fee Letter), or any other amount payable hereunder or under any other Loan Document;
or

     (b) Specific Covenants. The Borrower fails to perform or observe any term, covenant
or agreement contained in any of Section 6.03(a), 6.05 (with respect to any Loan Party’s
existence), 6.12, or Article VII; or

     (c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or
agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part
to be performed or observed and such failure continues for 30 days after the earlier of (i) the
date notice has

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been given to the Borrower by the Administrative Agent or a Lender or (ii) the date
a Responsible Officer knew or reasonably should have known of such Default; or

     (d) Representations and Warranties. Any representation or warranty made or deemed
made by the Borrower or any other Loan Party herein, in any other Loan Document, or in any document
delivered in connection herewith or therewith proves to have been incorrect in any material respect
when made or deemed made; or

     (e) Cross-Default. (i) The Borrower or any Subsidiary (A) fails to make any payment
when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise)
in respect of any Indebtedness or Guaranty Obligation (other than Indebtedness hereunder or under
Swap Contracts) having an aggregate principal amount (or, in the case of a Capital Lease or a
Synthetic Lease Obligation, Attributable Indebtedness) (including undrawn or available amounts and
including amounts owing to all creditors under any combined or syndicated credit arrangement) of
more than (individually or collectively) $5,000,000, or (B) fails to observe or perform any other
agreement or condition relating to any such Indebtedness or Guaranty Obligation or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the
effect of which default or other event is to cause, or to permit the holder or holders of such
Indebtedness, the lessor under such Synthetic Lease Obligation or the beneficiary or beneficiaries
of such Guaranty Obligation (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to
be demanded or to become due or to be repurchased or redeemed (automatically or otherwise) prior to
its stated maturity, or such Guaranty Obligation to become payable or cash collateral in respect
thereof to be demanded; or (ii) (A) there occurs under any Swap Contract an Early Termination Date
(as defined in such Swap Contract) resulting from any event of default under such Swap Contract as
to which the Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap Contract)
or any Termination Event (as so defined) under such Swap Contract to which the Borrower or any
Subsidiary is an Affected Party (as so defined) and, in either event, the Swap Termination Value
owed by the Borrower or such Subsidiary as a result thereof is greater than $5,000,000; or

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

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

     (h) Judgments. There is entered against the Borrower or any Subsidiary (i) a final
judgment or order for the payment of money in an aggregate amount exceeding (individually or
collectively)

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$5,000,000 (to the extent not covered by third-party insurance as to which the
insurer does not dispute coverage), or (ii) any non-monetary final judgment that has or could
reasonably be expected to have a Material Adverse Effect and, in either case, (A) enforcement
proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of
30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending
appeal or otherwise, is not in effect; or

     (i) ERISA. (i) If the Borrower, any Borrower Affiliate or any of their ERISA
Affiliates maintains any Pension Plan or any Multiemployer Plan, an ERISA Event occurs with respect
to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to
result in liability of the Borrower or any Borrower Affiliate under Title IV of ERISA to the
Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $1,000,000, or
(ii) if there is any Multiemployer Plan, the Borrower, any Borrower Affiliate or any ERISA
Affiliate thereof fails to pay when due, after the expiration of any applicable grace period, any
installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a
Multiemployer Plan in an aggregate amount in excess of $1,000,000; or

     (j) Invalidity of Loan Documents. Any Loan Document, at any time after its execution
and delivery and for any reason other than the agreement of all the Lenders or termination of all
Revolving Commitments and satisfaction in full of all the Obligations, ceases to be in full force
and effect, or is declared by a court of competent jurisdiction to be null and void, invalid or
unenforceable in any material respect; or any Loan Party denies that it has any or further
liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any
Loan Document; or

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

     (l) Dissolution. The Borrower or any Loan Party shall dissolve, liquidate, or
otherwise terminate its existence, except as permitted in Section 7.06; or

     (m) Collateral; Impairment of Security, etc. (i) Any provision of any Loan Document
shall for any reason cease to be valid and binding on or enforceable against a Loan Party or any
Loan Party shall so state in writing or bring an action to limit its obligations or liabilities
thereunder; or (ii) any Collateral Document shall for any reason (other than pursuant to the terms
thereof) cease to create a valid security interest in the Collateral purported to be covered
thereby or such security interest shall for any reason cease to be a perfected and first priority
security interest subject to Permitted Liens; or

     (n) Proceedings by Secured Creditors. Any secured creditor of any Loan Party which is
owed $5,000,000 or more takes any action to foreclose any Lien securing the Indebtedness owed to
such secured creditor.

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

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

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

     (c) require that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

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

provided, however, that upon the occurrence of any event specified in subsection (f) of Section
8.01, the obligation of each Lender to make Revolving Loans and any obligation of the L/C Issuer to
make L/C Credit Extensions shall automatically terminate, the unpaid principal amount of all
outstanding Revolving Loans and all interest and other amounts as aforesaid shall automatically
become due and payable, and the obligation of the Borrower to Cash Collateralize the L/C
Obligations as aforesaid shall automatically become effective, in each case without further act of
the Administrative Agent or any Lender.

ARTICLE IX.

ADMINISTRATIVE AGENT

     9.01 Appointment and Authorization of Agents; Lender Hedging Agreements. (a) Each Lender and the
L/C Issuer hereby irrevocably (subject to Section 9.10) appoints, designates and authorizes the
Administrative Agent to take such action on its behalf under the provisions of this Agreement and
each other Loan Document and to exercise such powers and perform such duties as are expressly
delegated to it by the terms of this Agreement or any other Loan Document, together with such
powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary
contained elsewhere herein or in any other Loan Document, the Administrative Agent shall not have
any duties or responsibilities, except those expressly set forth herein, nor shall the
Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or
participant, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other
Loan Document or otherwise exist against the Administrative Agent. Without limiting the generality
of the foregoing sentence, the use of the term “agent” herein and in the other Loan Documents with
reference to the Administrative Agent or Collateral Agent is not intended to connote any fiduciary
or other implied (or express) obligations arising under agency doctrine of any applicable Law.
Instead, such term is used merely as a matter of market custom, and is intended to create or
reflect only an administrative relationship between independent contracting parties.

     (b) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit
issued by it and the documents associated therewith until such time (and except for so long) as the
Administrative Agent may agree at the request of the Required Lenders to act for the L/C Issuer
with respect thereto; provided, however, that the L/C Issuer shall have all of the benefits and
immunities (i) provided to the Administrative Agent in this Article IX with respect to any acts
taken or omissions suffered by the L/C Issuer in connection with Letters of Credit issued by it or
proposed to be issued by it and the application and agreements for letters of credit pertaining to
the Letters of Credit as fully as if the term “Administrative Agent” as used in this Article IX
included the L/C Issuer with respect to such acts or omissions, and (ii) as additionally provided
herein with respect to the L/C Issuer.

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     (c) To the extent any Lender or any Affiliate of a Lender is a party to a Lender Hedging
Agreement and accepts the benefits of the Liens in the Collateral arising pursuant to the
Collateral Documents, such Lender (for itself and on behalf of any such Affiliates) shall be deemed
(i) to appoint the Administrative Agent and Collateral Agent, as its nominee and agent, to act for
and on behalf of such Lender or Affiliate thereof in connection with the Collateral Documents and
(ii) to be bound by the terms of this Article IX.

     9.02 Delegation of Duties. The Administrative Agent may execute any of its duties under this
Agreement or any other Loan Document by or through agents (including the Collateral Agent),
employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or
experts concerning all matters pertaining to such duties. Neither the Administrative Agent nor the
Collateral Agent shall be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects in the absence of gross negligence or willful misconduct.

     9.03 Default; Collateral. (a) Upon the occurrence and continuance of a Default or Event of
Default, the Lenders agree to promptly confer in order that Required Lenders or the Lenders, as the
case may be, may agree upon a course of action for the enforcement of the rights of the Lenders;
and the Administrative Agent shall be entitled to refrain from taking any action (without incurring
any liability to any Person for so refraining) unless and until the Administrative Agent shall have
received instructions from Required Lenders. All rights of action under the Loan Documents and all
right to the Collateral, if any, hereunder may be enforced by the Administrative Agent (or the
Collateral Agent) and any suit or proceeding instituted by the Administrative Agent (or the
Collateral Agent) in furtherance of such enforcement shall be brought in its name as the
Administrative Agent (or the Collateral Agent) without the necessity of joining as plaintiffs or
defendants any other Lender, and the recovery of any judgment shall be for the benefit of the
Lenders (and, with respect to Lender Hedging Agreements, Affiliates, if applicable) subject to the
expenses of the Administrative Agent and/or Collateral Agent. In actions with respect to any
property of the Borrower or any other Obligor, the Administrative Agent (and the Collateral Agent)
is acting for the ratable benefit of each Lender (and, with respect to Lender Hedging Agreement,
Affiliates, if applicable).
Any and all agreements to subordinate (whether made heretofore or hereafter) other indebtedness or
obligations of Borrower to the Obligations shall be construed as being for the ratable benefit of
each Lender (and, with respect to Lender Hedging Agreement, Affiliates, if applicable).

     (b) Each Lender authorizes and directs the Administrative Agent and Collateral Agent to enter
into the Collateral Documents on behalf of and for the benefit of the Lenders (and, with respect to
Lender Hedging Agreements, Affiliates, if applicable)(or if previously entered into, hereby
ratifies the Administrative Agent’s (and the Collateral Agent’s) previously entering into such
agreements and Collateral Documents).

     (c) Except to the extent unanimity (or other percentage set forth in Section 10.1) is required
hereunder, each Lender agrees that any action taken by the Required Lenders in accordance with the
provisions of the Loan Documents, and the exercise by the Required Lenders of the power set forth
herein or therein, together with such other powers as are reasonably incidental thereto, shall be
authorized and binding upon all of the Lenders.

     (d) The Administrative Agent and Collateral Agent are each hereby authorized on behalf of the
Lenders, without the necessity of any notice to or further consent from any Lender, from time to
time to take any action with respect to any Collateral or Collateral Documents which may be
necessary to

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perfect and maintain perfected the Liens upon the Collateral granted pursuant to the
Collateral Documents.

     (e) Neither the Administrative Agent nor the Collateral Agent shall have any obligation
whatsoever to any Lender or to any other Person to assure that the Collateral exists or is owned by
any Obligor or is cared for, protected, or insured or has been encumbered or that the Liens granted
to the Administrative Agent and/or Collateral Agent herein or pursuant to any Collateral Document
have been properly or sufficiently or lawfully created, perfected, protected, or enforced, or are
entitled to any particular priority, or to exercise at all or in any particular manner or under any
duty of care, disclosure, or fidelity, or to continue exercising, any of the Rights granted or
available to the Administrative Agent or Collateral Agent in this Section 9.03 or in any of the
Collateral Documents; it being understood and agreed that in respect of the Collateral, or any act,
omission, or event related thereto, the Administrative Agent may act in any manner it may deem
appropriate, in its sole discretion, given the Administrative Agent’s own interest in the
Collateral as one of the Lenders and that the Administrative Agent shall have no duty or liability
whatsoever to any Lender, other than to act without gross negligence or willful misconduct and the
same shall apply to the Collateral Agent so long as the Administrative Agent is also the Collateral
Agent.

     (f) The Lenders hereby irrevocably authorize the Administrative Agent and/or Collateral Agent,
at its option and in its discretion, to release any Lien granted to or held by the Administrative
Agent or Collateral Agent upon any Collateral: (i) constituting property in which no Obligor owned
an interest at the time the Lien was granted or at any time thereafter; (ii) constituting property
leased to an Obligor under a lease which has expired or been terminated in a transaction permitted
under the Loan Document or is about to expire and which has not been, and is not intended by such
Obligor to be, renewed; and (iii) consisting of an instrument evidencing Indebtedness pledged to
the Administrative Agent or Collateral Agent (for the benefit of the Lenders), if the Indebtedness
evidenced thereby has been paid in full. In addition, the Lenders irrevocably authorize the
Administrative Agent and Collateral Agent to release Liens upon Collateral as contemplated in
Section 10.01(c) or (d), or if approved, authorized, or
ratified in writing by the requisite Lenders. Upon request by the Administrative Agent ((or
the Collateral Agent) at any time, the Lenders will confirm in writing the Administrative Agent’s
(or the Collateral Agent’s) authority to release particular types or items of Collateral pursuant
to this Section 9.03.

     (g) In furtherance of the authorizations set forth in this Section 9.03, each Lender hereby
irrevocably appoints the Administrative Agent and Collateral Agent its attorney-in-fact, with full
power of substitution, for and on behalf of and in the name of each such Lender (i) to enter into
Collateral Documents (including, without limitation, any appointments of substitute trustees under
any Collateral Documents), (ii) to take action with respect to the Collateral and Collateral
Documents to perfect, maintain, and preserve Lenders’ Liens, and (iii) to execute instruments of
release or to take other action necessary to release Liens upon any Collateral to the extent
authorized in paragraph (f) hereof. This power of attorney shall be liberally, not restrictively,
construed so as to give the greatest latitude to the Administrative Agent’s and Collateral Agent’s
power, as attorney, relative to the Collateral matters described in this Section 9.03. The powers
and authorities herein conferred on the Administrative Agent and Collateral Agent may be exercised
by the Administrative Agent or Collateral Agent through any Person who, at the time of the
execution of a particular instrument, is an officer of the Administrative Agent (or any Person
acting on behalf of the Administrative Agent pursuant to a valid power of attorney) or is an
officer of the Collateral Agent (or any Person acting on behalf of the Collateral Agent pursuant to
a valid power of attorney). The power of attorney conferred by this Section 9.03(g) to the
Administrative Agent and Collateral Agent is granted for valuable consideration and is coupled with
an interest and is

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irrevocable so long as the Obligations, or any part thereof, shall remain unpaid
or the Lenders are obligated to make any Borrowings under the Loan Documents.

     9.04 Liability of Agents. No Agent-Related Person shall (a) be liable for any action taken or
omitted to be taken by any of them under or in connection with this Agreement or any other Loan
Document or the transactions contemplated hereby (except for its own gross negligence or willful
misconduct in connection with its duties expressly set forth herein), or (b) be responsible in any
manner to any Lender or participant for any recital, statement, representation or warranty made by
any Loan Party or any officer thereof, contained herein or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided for in, or received by
Administrative Agent under or in connection with, this Agreement or any other Loan Document, or the
validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other
Loan Document, or for the creation, perfection or priority of any Liens purported to be created by
any of the Loan Documents, or the validity, genuineness, enforceability, existence, value or
sufficiency of any collateral security, or to make any inquiry respecting the performance by the
Borrower of its obligations hereunder or under any other Loan Document, or for any failure of any
Loan Party or any other party to any Loan Document to perform its obligations hereunder or
thereunder. No Agent-Related Person shall be under any obligation to any Lender or participant to
ascertain or to inquire as to the observance or performance of any of the agreements contained in,
or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or
records of any Loan Party or any Affiliate thereof.

     9.05 Reliance by Administrative Agent. (a) The Administrative Agent shall be entitled to rely, and
shall be fully protected in relying, upon any writing, communication, signature, resolution,
representation, notice, consent, certificate, affidavit, letter, facsimile, telex or telephone
message, statement or other document or conversation reasonably believed
by it to be genuine and correct and to have been signed, sent or made by the proper Person or
Persons, and upon advice and statements of legal counsel (including counsel to any Loan Party),
independent accountants and other experts selected by the Administrative Agent. The Administrative
Agent shall be fully justified in failing or refusing to take any action under any Loan Document
unless it shall first receive such advice or concurrence of the Required Lenders as it deems
appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the
Lenders against any and all liability and expense which may be incurred by it by reason of taking
or continuing to take any such action. The Administrative Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement or any other Loan Document
in accordance with a request or consent of the Required Lenders or all the Lenders, if required
hereunder, and such request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and participants. Where this Agreement expressly permits or prohibits
an action unless the Required Lenders otherwise determine, the Administrative Agent shall, and in
all other instances, the Administrative Agent may, but shall not be required to, initiate any
solicitation for the consent or a vote of the Lenders.

     (b) For purposes of determining compliance with the conditions specified in Section 4.01,
each Lender that has funded its Pro Rata Share of the Borrowing(s) on the Second Amended and
Restated Closing Date (or, if there is no Borrowing made on such date, each Lender other than
Lenders who gave written objection to the Administrative Agent prior to such date) shall be deemed
to have consented to, approved or accepted or to be satisfied with, each document or other matter
either sent by the Administrative Agent to such Lender for consent, approval, acceptance or
satisfaction, or required hereunder to be consented to or approved by or acceptable or satisfactory
to a Lender.

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     9.06 Notice of Default. The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default, except with respect to defaults in the
payment of principal, interest and fees required to be paid to the Administrative Agent for the
account of the Lenders, unless the Administrative Agent shall have received written notice from a
Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a “notice of default.” The Administrative Agent will notify the Lenders
of its receipt of any such notice. The Administrative Agent shall take such action with respect to
such Default or Event of Default as may be directed by the Required Lenders in accordance with
Article VIII; provided, however, that unless and until the Administrative Agent has received any
such direction, the Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of Default as it shall deem
advisable or in the best interest of the Lenders.

     9.07 Credit Decision; Disclosure of Information by Administrative Agent. Each Lender acknowledges
that no Agent-Related Person has made any representation or warranty to it, and that no act by the
Administrative Agent hereinafter taken, including any consent to and acceptance of any assignment
or review of the affairs of any Loan Party or any Affiliate thereof, shall be deemed to constitute
any representation or warranty by any Agent-Related Person to any Lender as to any matter,
including whether Agent-Related Persons have disclosed material information in their possession.
Each Lender represents to the Administrative Agent that it has, independently and without reliance
upon any Agent-Related Person and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of the Loan Parties and their
respective Subsidiaries, and all applicable bank or other regulatory Laws relating to the
transactions contemplated hereby, and made its own decision to enter into this Agreement and to
extend credit to the Borrower hereunder. Each Lender also represents that it will, independently
and without reliance upon any Agent-Related Person and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and
decisions in taking or not taking action under this Agreement and the other Loan Documents, and to
make such investigations as it deems necessary to inform itself as to the business, prospects,
operations, property, financial and other condition and creditworthiness of the Borrower and the
other Loan Parties. Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent herein, the Administrative Agent shall not
have any duty or responsibility to provide any Lender with any credit or other information
concerning the business, prospects, operations, property, financial and other condition or
creditworthiness of any of the Loan Parties or any of their respective Affiliates which may come
into the possession of any Agent Related Person.

     9.08 Indemnification of Agents. Whether or not the transactions contemplated hereby are
consummated, the Lenders shall indemnify upon demand each Agent-Related Person (to the extent not
reimbursed by or on behalf of any Loan Party and without limiting the obligation of any Loan Party
to do so), pro rata, and hold harmless each Agent-Related Person from and against any and all
Indemnified Liabilities incurred by it; provided, however, that no Lender shall be liable for the
payment to any Agent-Related Person of any portion of such Indemnified Liabilities resulting from
such Person’s gross negligence or willful misconduct; provided, however, that no action taken in
accordance with the directions of the Required Lenders shall be deemed to constitute gross
negligence or willful misconduct for purposes of this Section. Without limitation of the
foregoing, each Lender shall reimburse the Administrative Agent upon demand for its
ratable share of any costs or out-of-pocket expenses (including Attorney Costs) incurred by the
Administrative Agent in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal

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proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under,
this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to
the extent that the Administrative Agent is not reimbursed for such expenses by or on behalf of the
Borrower. The undertaking in this Section shall survive termination of the Revolving Commitments,
the payment of all Obligations hereunder and the resignation or replacement of the Administrative
Agent.

     9.09 Administrative Agent in its Individual Capacity. Royal Bank and its Affiliates may make loans
to, accept deposits from, acquire equity interests in and generally engage in any kind of banking,
trust, financial advisory, underwriting or other business with each of the Loan Parties and their
respective Affiliates as though Royal Bank were not the Administrative Agent, Collateral Agent or
the L/C Issuer hereunder and without notice to or consent of the Lenders. The Lenders acknowledge
that, pursuant to such activities, Royal Bank or its Affiliates may receive information regarding
any Loan Party or its Affiliates (including information that may be subject to confidentiality
obligations in favor of such Loan Party or such Affiliate) and acknowledge that the Administrative
Agent shall be under no obligation to provide such information to them. With respect to its
Revolving Loans, Royal Bank shall have the same rights and powers under this Agreement as any other
Lender and may exercise such rights and powers as though it were not the Administrative Agent,
Collateral Agent or the L/C Issuer, and the terms “Lender” and “Lenders” include Royal Bank in its
individual capacity.

     9.10 Successor Administrative Agent and Collateral Agent. The Administrative Agent may resign
as Administrative Agent and Collateral Agent upon 30 days’ notice to the Lenders with a copy of
such notice to the Borrower. If the Administrative Agent resigns under this Agreement, the
Required Lenders shall appoint from among the Lenders a successor administrative agent and
collateral agent for the Lenders which successor administrative agent and collateral agent shall be
consented to by the Borrower at all times other than during the existence of an Event of Default
(which consent of the Borrower shall not be unreasonably withheld or delayed). If no successor
administrative agent is appointed prior to the effective date of the resignation of the
Administrative Agent, the Administrative Agent may appoint, after consulting with the Lenders and
the Borrower, a successor administrative agent from among the Lenders, who shall also succeed to
the role of collateral agent. Upon the acceptance of its appointment as successor administrative
agent hereunder, such successor administrative agent shall succeed to all the rights, powers and
duties of the retiring Administrative Agent and the term “Administrative Agent” shall mean such
successor administrative agent and the retiring Administrative Agent’s appointment, powers and
duties as Administrative Agent shall be terminated. After any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of this Article IX and Sections 10.04
and 10.13 shall inure to its benefit as to any actions taken or omitted to be taken by it while it
was Administrative Agent under this Agreement. If no successor administrative agent has accepted
appointment as Administrative Agent by the date which is 30 days following a retiring
Administrative Agent’s notice of resignation, the retiring Administrative Agent’s resignation shall
nevertheless thereupon become effective and the Lenders shall perform all of the duties of the
Administrative Agent and Collateral Agent hereunder until such time, if any, as the Required
Lenders appoint a successor agent as provided for above.

     9.11 Other Agents; Arrangers. None of the Lenders or other Persons identified on the facing page or signature pages of this
Agreement as a “syndication agent,” as a “documentation agent,” any other type of agent (other than
the Administrative Agent), “arranger,” or “bookrunner” shall have any right, power, obligation,
liability, responsibility or duty under this Agreement other than those applicable to all Lenders
as such. Without limiting the foregoing, none of the Lenders so identified shall have or be deemed
to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not

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relied, and will not rely, on any of the Lenders so identified in deciding to enter into this
Agreement or in taking or not taking action hereunder.

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

     (i) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Revolving Loans, L/C Obligations and all other Obligations that are owing
and unpaid and to file such other documents as may be necessary or advisable in order to have the
claims of the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and
the Administrative Agent and their respective agents and counsel and all other amounts due the
Lenders, the L/C Issuer and the Administrative Agent under Sections 2.13(i) and (j), 2.07 10.04 and
10.05) allowed in such judicial proceeding; and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such
payments to the Administrative Agent and, in the event that the Administrative Agent shall consent
to the making of such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and
advances of the Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.07, 10.04 and 10.05.

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

ARTICLE X.

MISCELLANEOUS

     10.01 Amendments, Release of Collateral, Etc.

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

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Lenders directly affected thereby and by the Borrower, and acknowledged by the Administrative
Agent, do any of the following:

     (i) extend or increase the Revolving Commitment of any Lender (or reinstate any
Revolving Commitment terminated pursuant to Section 8.02);

     (ii) postpone or delay any date fixed by this Agreement or any other Loan Document for
any payment or mandatory prepayment of principal, interest, fees or other amounts due to the
Lenders (or any of them) hereunder or under any other Loan Document;

     (iii) reduce the principal of, or the rate of interest specified herein on, any
Revolving Loan or L/C Borrowing or (subject to clause (ii) of the proviso below) any fees or
other amounts payable hereunder or under any other Loan Document; provided, however, that
only the consent of the Required Lenders shall be necessary (A) to amend the definition of
“Default Rate” or to waive any obligation of the Borrower to pay interest at the Default
Rate or (B) to amend any financial covenant hereunder (or any defined term used therein)
even if the effect of such amendment would be to reduce the rate of interest on any
Revolving Loan or L/C Borrowing or to reduce any fee payable hereunder;

     (iv) change the percentage of the Aggregate Revolving Commitment or of the aggregate
unpaid principal amount of the Revolving Loans and L/C Obligations which is required for the
Lenders or any of them to take any action hereunder;

     (v) change the Pro Rata Share of any Lender;

     (vi) release more than $5,000,000 worth of Collateral or release any Guarantor from a
Guaranty (except in connection with a Disposition permitted under Section 7.07 or as
otherwise permitted under this Section 10.01); or

     (vii) amend this Section, or Section 2.11, or any provision herein providing for
unanimous consent or other action by all the Lenders;

and, provided further: (i) no amendment, waiver or consent shall, unless in writing and signed by
the L/C Issuer in addition to the Required Lenders or all the Lenders, as the case may be, and the
Administrative Agent, affect the rights or duties of the L/C Issuer under this Agreement or any
Letter of Credit Application relating to any Letter of Credit issued or to be issued by it; (ii) no
amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in
addition to the Required Lenders or all the Lenders, as the case may be, affect the rights or
duties of the Administrative Agent under this Agreement or any other Loan Document; and (iii) the
Agent/Arranger Fee Letter may be amended, or rights or privileges thereunder waived, in a writing
executed only by the parties thereto. Notwithstanding anything to the contrary herein, any Lender
that has failed to fund any portion of the Revolving Loans or participation in L/C Obligations
required to be funded by it hereunder shall not have any right to approve or disapprove any
amendment, waiver or consent hereunder, except that the Pro Rata Share of such Lender may not be
increased without the consent of such Lender.

     (b) Any amendment to any Loan Document which purports to (i) decrease the amount of any
mandatory prepayment or commitment reduction required by Section 2.03 or (ii) change this Section

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10.01(b), must be by an instrument in writing executed by Borrower, the Administrative Agent,
and the Required Lenders.

     (c) Upon any sale, transfer or Disposition of Collateral which is permitted pursuant to the
Loan Documents, and upon 10 Business Days’ prior written request by the Borrower (which request
must be accompanied by (i) true and correct copies of all material documents of transfer or
Disposition, including any contract of sale, (ii) a preliminary closing statement and instructions
to the title company, if any, (iii) all requested release instruments in form and substance
satisfactory to the Administrative Agent and (iv) if required, written consent of the requisite
Lenders), the Administrative Agent shall (and is hereby irrevocably authorized by the Lenders to)
execute such documents as may be necessary to evidence the release of Liens granted to the
Administrative Agent for the benefit of the Lenders pursuant hereto in such Collateral. The
Administrative Agent shall not be required to execute any release instruments on terms which, in
the Administrative Agent’s opinion, would expose the Administrative Agent to liability or create
any obligation or entail any consequence other than the release of Liens without recourse or
warranty. No such release shall impair the Administrative Agent’s Lien on the proceeds of sale of
such Collateral.

     (d) If all outstanding Revolving Loans and other Obligations (other than contingent indemnity
obligations) have been indefeasibly paid in full (or, with respect to L/C Obligations, Cash
Collateralized) and the Revolving Commitments have terminated or have been reduced to zero, and,
subject to Section 10.01(e) all Lender Hedging Agreement have terminated, the Administrative Agent
agrees to, and the Lenders hereby instruct the Administrative Agent to, at the Borrower’s expense,
execute and authorize such releases of the Collateral Documents as the Borrower shall reasonably
request and this Agreement shall be deemed terminated except that such termination shall not
relieve the Borrower of any obligation to make any payments to the Administrative Agent or any
Lender required by any Loan Document to the extent accruing, or relating to an event occurring,
prior to such termination.

     (e) Notwithstanding any provision herein to the contrary, if the Revolving Commitments have
been terminated, and the only outstanding Obligations (other than contingent indemnity obligations
and L/C Obligations that are Cash Collateralized) are amounts owed pursuant to one or more Lender
Hedging Agreements, the Administrative Agent will, and is hereby authorized to, (A) release the
Liens created under the Loan Documents and (B) release all Guaranties of the Borrower; provided,
that contemporaneously with such release, (i) the Borrower (and, if applicable, the Subsidiary that
is a party to such Lender Hedging Agreements) (A) executes a margin agreement in form and substance
acceptable to such Lender(s) (or its Affiliates) that are parties to such Lender Hedging Agreements
(the “Lender Counterparties”) and (B), if required, provides collateral in the form of cash or a
letter of credit having an aggregate value acceptable to such Lender Counterparties, and (ii) if
such Lender Hedging Agreement is executed by a Subsidiary of the Borrower and the Borrower is not a
party thereto, the Borrower executes a guaranty covering such Subsidiary’s obligations thereunder,
such guaranty to be in form and substance satisfactory to the Lender Counterparties. Any release
under this Section 10.01(e) must be in writing and signed by the Administrative Agent.

     10.02 Notices and Other Communications; Facsimile Copies.

     (a) General. Unless otherwise expressly provided herein, all notices and other
communications provided for hereunder and under the other Loan Documents shall be in writing
(including by facsimile transmission) and mailed, faxed or delivered, to the address, facsimile
number or

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(subject to subsection (c) below) electronic mail address specified for notices on Schedule
10.02 (for the Borrower, any Guarantor and the Administrative Agent) or on the Administrative
Details Form (for the other Lenders); or, in the case of the Borrower, the Guarantors, the
Administrative Agent, or the L/C Issuer, to such other address as shall be designated by such party
in a notice to the other parties, and in the case of any other party, to such other address as
shall be designated by such party in a notice to the Borrower, the Administrative Agent and the L/C
Issuer. All such notices and other communications shall be deemed to be given or made upon the
earlier to occur of (i) actual receipt by the intended recipient and (ii) (A) if delivered by hand
or by courier, when signed for by the intended recipient; (B) if delivered by mail, five (5)
Business Days after deposit in the mails, postage prepaid; (C) if delivered by facsimile, when sent
and receipt has been confirmed by telephone; and (D) if delivered by electronic mail (which form of
delivery is subject to the provisions of subsection (c) below), when delivered; provided, however,
that notices and other communications to the Administrative Agent or the L/C Issuer pursuant to
Article II shall not be effective until actually received by such Person. Any notice or other
communication permitted to be given, made or confirmed by telephone hereunder shall be given, made
or confirmed by means of a telephone call to the intended recipient at the number specified in
accordance with this Section, it being understood and agreed that a voicemail message shall in no
event be effective as a notice, communication or confirmation hereunder.

     (b) Effectiveness of Facsimile Documents and Signatures. Loan Documents may be
transmitted and/or signed by facsimile. The effectiveness of any such documents and signatures
shall, subject to applicable Law, have the same force and effect as manually-signed originals and
shall be binding on all Loan Parties, the Administrative Agent and the Lenders. The Administrative
Agent may also require that any such documents and signatures be confirmed by a manually-signed
original thereof; provided, however, that the failure to request or deliver the same shall not
limit the effectiveness of any facsimile document or signature.

     (c) Limited Use of Electronic Mail. Electronic mail and internet and intranet
websites may be used only to distribute routine communications, such as financial statements and
other information, and to distribute Loan Documents for execution by the parties thereto, and shall
not be recognized hereunder for any other purpose.

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

     10.03 No Waiver; Cumulative Remedies. No failure by any Lender, the Administrative Agent or the
Collateral Agent to exercise, and no delay by any such Person in exercising, any right, remedy,
power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and

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privileges herein or therein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by Law.

     10.04 Attorney Costs; Expenses and Taxes. The Borrower agrees (a) to pay or reimburse the
Arranger, the Administrative Agent and Collateral Agent for all costs and expenses associated with
the due diligence and background investigation undertaken in connection with this Agreement and
incurred in connection with the development, preparation, negotiation, syndication, administration
and execution of this Agreement and the other Loan Documents, including the filing, recording,
refiling or rerecording of any pledge agreement and any Security Agreement and/or any UCC financing
statements relating thereto and all amendments, supplements and modifications to any thereof and
any and all other documents or instruments of further assurance required to be filed or recorded or
refiled or rerecorded by the terms hereof or of any mortgage, any pledge agreement or any security
agreement, and any amendment, waiver, consent or other modification of the provisions hereof and
thereof (whether or not the transactions contemplated hereby or thereby are consummated), and the
consummation and administration of the transactions contemplated hereby and thereby, including all
Attorney Costs, and (b) to pay or reimburse the Administrative Agent, Collateral Agent and each
Lender for all costs and expenses incurred in connection with the enforcement, attempted
enforcement, or preservation of any rights or remedies under this Agreement or the other Loan
Documents (including all such costs and expenses incurred during any workout or restructuring in
respect of the Obligations and during any legal proceeding, including any proceeding under any
Debtor Relief Law), including all Attorney Costs. The foregoing costs and expenses shall include
all search, filing, recording, title insurance and appraisal charges and fees and taxes related
thereto, and other out-of-pocket expenses incurred by the Administrative Agent and Collateral Agent
and the cost of independent public accountants and other outside experts retained by the
Administrative Agent or any Lender. The agreements in this Section shall survive the termination
of the Revolving Commitments and repayment of all the other Obligations.

     10.05 Indemnification. Whether or not the transactions contemplated hereby are consummated, the
Borrower and each Guarantor (by execution of a Guaranty), jointly and severally, agrees to
indemnify, save and hold harmless each Agent-Related Person, the Administrative Agent, the
Collateral Agent, the Arranger, each Lender, the L/C Issuer and their respective Affiliates,
directors, officers, employees, counsel, agents and attorneys-in-fact (collectively the
“Indemnitees”) from and against: (a) any and all claims, demands, actions or causes of action that
are asserted against any Indemnitee by any Person (other than the Administrative Agent or any
Lender) relating directly or indirectly to a claim, demand, action or cause of action that such
Person asserts or may assert against any Loan Party, any Affiliate of any Loan Party or any of
their respective officers or directors, arising out of or relating to, the Loan Documents, the
Revolving Commitments, the use or contemplated use of the proceeds of any Revolving Loans, or the
relationship of any Loan Party, the Arranger, the Administrative Agent, the Collateral Agent, the
Lenders and the L/C Issuer under this Agreement or any other Loan Document; (b) any and all claims,
demands, actions or causes of action that may at any time (including at any time following
repayment of the Obligations and the resignation of the Administrative Agent or the replacement of
any Lender) be asserted or imposed against any Indemnitee by any Person or by the Borrower or any
other Loan Party, arising out of or relating to, the Loan Documents, the Revolving Commitments, the
use or contemplated use of the proceeds of any Revolving Loans, or the relationship of any Loan
Party, the Arranger, the Administrative Agent, the Collateral Agent, the Lenders and the L/C Issuer
under this Agreement or any other Loan Document; (c) without limiting the foregoing, any and all
claims, demands, actions or causes
of action, judgments and orders, penalties and fines that are asserted or imposed against any
Indemnitee, (i) under the application of any Environmental Law applicable to the Borrower or any of
its Subsidiaries or any of their properties or assets, including the treatment or disposal

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of Hazardous Substances on any of their properties or assets, (ii) as a result of the breach
or non-compliance by the Borrower or any Subsidiary with any Environmental Law applicable to the
Borrower or any Subsidiary, (iii) due to past ownership by the Borrower or any Subsidiary of any of
their properties or assets or past activity on any of their properties or assets which, though
lawful and fully permissible at the time, could result in present liability, (iv) due to the
presence, use, storage, treatment or disposal of Hazardous Substances on or under, or the escape,
seepage, leakage, spillage, discharge, emission or Release from, any of the properties owned or
operated by the Borrower or any Subsidiary (including any liability asserted or arising under any
Environmental Law), regardless of whether caused by, or within the control of, the Borrower or such
Subsidiary, or (v) due to any other environmental, health or safety condition in connection with
the Loan Documents; (d) any administrative or investigative proceeding by any Governmental
Authority arising out of or related to a claim, demand, action or cause of action described in
subsection (a), (b) or (c) above; and (e) any and all liabilities (including liabilities under
indemnities), losses, costs, damages or expenses (including Attorney Costs and settlement costs)
that any Indemnitee suffers or incurs as a result of the assertion of any foregoing claim, demand,
action, cause of action or proceeding, or as a result of the preparation of any defense in
connection with any foregoing claim, demand, action, cause of action or proceeding, in all cases,
WHETHER OR NOT ARISING OUT OF THE STRICT LIABILITY OR NEGLIGENCE OF AN INDEMNITEE, and whether or
not an Indemnitee is a party to such claim, demand, action, cause of action or proceeding (all the
foregoing, collectively, the “Indemnified Liabilities”); provided that such indemnity shall not, as
to any Indemnitee, be available to the extent that such liabilities, losses, costs, damages or
expenses are determined by a court of competent jurisdiction by final and nonappealable judgment
to have resulted from the gross negligence or willful misconduct of such Indemnitee. The
agreements in this Section shall survive and continue for the benefit of the Indemnitees at all
times after the Borrower’s acceptance of the Lenders’ Revolving Commitments under this Agreement,
whether or not the Second Amended and Restated Closing Date shall occur and shall survive the
termination of the Revolving Commitments and repayment of all the other Obligations.

     10.06 Payments Set Aside. To the extent that the Borrower makes a payment to the Administrative
Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and
such payment or the proceeds of such set-off or any part thereof is subsequently invalidated,
declared to be fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid
to a trustee, receiver or any other party, in connection with any proceeding under any Debtor
Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof
originally intended to be satisfied shall be revived and continued in full force and effect as if
such payment had not been made or such setoff had not occurred, and (b) each Lender severally
agrees to pay to the Administrative Agent upon demand its applicable share of any amount so
recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such
demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from
time to time in effect.

     10.07 Successors and Assigns.

     (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that the
Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder
except (i) to an Eligible Assignee in accordance with the provisions of paragraph (b) of this
Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this
Section or (iii) by way

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of pledge or assignment of a security interest subject to the restrictions of paragraph (f) of
this Section (and any other attempted assignment or transfer by any party hereto shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly
contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

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

except in the case of an assignment of the entire remaining amount of the assigning Lender’s
Revolving Commitment and the Revolving Loans at the time owing to it or in the case of an
assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender,
the aggregate amount of the Revolving Commitment (which for this purpose includes Revolving Loans
outstanding thereunder) or, if the applicable Revolving Commitment is not then in effect, the
outstanding principal balance of the Revolving Loans of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Assumption with respect to such assignment
is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date) shall not be less than $1,000,000, unless each of the
Administrative Agent, L/C Issuer and, so long as no Default or Event of Default has occurred and is
continuing, the Borrower otherwise consent (Borrower’s consent not to be unreasonably withheld,
conditioned or delayed);

     (i) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement with respect to the
Revolving Loans and/or the Revolving Commitment assigned; and

     (ii) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, the assigning Lender or the assignee shall pay the
Administrative Agent a processing and recordation fee of $3,500 (which the Administrative
Agent may waive or reduce in its sole discretion), and the Eligible Assignee, if it shall
not be a Lender, shall deliver to the Administrative Agent an Administrative Details Form.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 3.07, 10.04 and 10.05 with respect to facts and circumstances
occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender
of rights or obligations under this Agreement that does not comply with this paragraph shall be
treated for purposes of this Agreement as a sale by such Lender of a participation in such rights
and obligations in accordance with paragraph (d) of this Section.

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

     (d) Any Lender may at any time, without the consent of, or notice to, the Borrower, the
Administrative Agent or the L/C Issuer, sell participations to any Person (other than a natural
person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all
or a portion of its Revolving Commitment and/or the Revolving Loans (including such Lender’s
participation in L/C Obligations) owing to it); provided that (i) such Lender’s obligations under
this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (iii) the Borrower, the
Administrative Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement
or instrument pursuant to which a Lender sells such a participation shall provide that such Lender
shall retain the sole right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver that would (i) postpone any date upon which any payment of money is
scheduled to be paid to such Participant, (ii) reduce the principal, interest, fees or other
amounts payable to such Participant, or (iii) extend the Maturity Date. Subject to subsection (e)
of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by Law,
each Participant also shall be entitled to the benefits of Section 10.09 as though it were a
Lender; provided such Participant agrees to be subject to Section 2.11 and Section 3.08 as though
it were a Lender.

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

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

     (g) If the consent of the Borrower to an assignment or to an Eligible Assignee is required
hereunder (including a consent to an assignment which does not meet the minimum assignment
threshold

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specified in clause (i) of the proviso to the first sentence of Section 10.07(b)), the
Borrower shall be deemed to have given its consent five Business Days after the date notice thereof
has been delivered by the assigning Lender (through the Administrative Agent) unless such consent
is expressly refused by the Borrower prior to such fifth Business Day.

     (h) Notwithstanding anything to the contrary contained herein, if at any time Royal Bank
assigns all of its Revolving Commitment and Revolving Loans pursuant to subsection (b) above, Royal
Bank may, (i) upon 30 days’ notice to the Borrower and the Lenders, resign as L/C Issuer. In the
event of any such resignation as L/C Issuer, the Borrower shall be entitled to appoint from among
the Lenders a successor L/C Issuer hereunder; provided, however, that no failure by the Borrower to
appoint any such successor shall affect the resignation of Royal Bank as L/C Issuer. Royal Bank
shall retain all the rights and obligations of the L/C Issuer hereunder with respect to all Letters
of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C
Obligations with respect thereto (including the right to require the Lenders to make Base Rate
Loans or fund participations in Unreimbursed Amounts pursuant to Section 2.13(c)).

     10.08 Confidentiality. Each Lender agrees that it will not disclose without the prior consent of
the Borrower (other than to directors, officers, employees, auditors, accountants, counsel or other
professional advisors of the Administrative Agent or any Lender) any information with respect to
the Borrower or its Subsidiaries, which is furnished pursuant to this Agreement and which (i) the
Borrower in good faith considers to be confidential and (ii) is either clearly marked confidential
or is designated by the Borrower to the Administrative Agent or the Lenders in writing as
confidential; provided that any Lender may disclose any such information (a) as has become
generally available to the public, (b) as may be required or appropriate in any report, statement
or testimony submitted to or required by any municipal, state or federal regulatory body having or
claiming to have jurisdiction over such Lender or submitted to or required by the Board or the
Federal Deposit Insurance Corporation or similar organizations (whether in the United States or
elsewhere) or their successors, (c) as may be required or appropriate in response to any summons or
subpoena in connection with any litigation, (d) in order to comply with any Law, order, regulation
or ruling applicable to such Lender, (e) to any Eligible Assignee of or Participant in, or any
prospective Eligible Assignee of or Participant in, any of its rights or obligations under this
Agreement; provided that such Eligible Assignee or Participant or prospective Eligible Assignee or
Participant executes an agreement containing provisions substantially similar to those contained in
this Section 10.08, (f) in connection with the exercise of any remedy by such Lender following an
Event of Default pertaining to the Loan Documents, (g) in connection with any litigation involving
such Lender pertaining to the Loan Documents, (h) to any Lender or the Administrative Agent, or (i)
to any Affiliate of any Lender (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such information and obligated to keep such
information confidential).

     10.09 Set-off. In addition to any rights and remedies of the Lenders provided by Law, upon the
occurrence and during the continuance of any Event of Default, each Lender is authorized at any
time and from time to time, without prior notice to the Borrower or any other Loan Party, any such
notice being waived by the Borrower (on its own behalf and on behalf of each Loan Party) to the
fullest extent permitted by Law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held by, and other indebtedness at any time owing
by, such Lender to or for the credit or the account of the respective Loan Parties against any and
all Obligations owing to the Administrative Agent and the Lenders, now or hereafter existing,
irrespective of whether or not the Administrative Agent or such
Lender shall have made demand under this Agreement or any other Loan Document and although such
Obligations may be contingent or unmatured. Each Lender agrees promptly

81

 

to notify the Borrower and the Administrative Agent after any such set-off and application
made by such Lender; provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application.

     10.10 Interest Rate Limitation. Regardless of any provision contained in any Loan Document,
neither the Administrative Agent nor any Lender shall ever be entitled to contract for, charge,
take, reserve, receive, or apply, as interest on all or any part of the Obligations, any amount in
excess of the Maximum Rate, and, if any Lender ever does so, then such excess shall be deemed a
partial prepayment of principal and treated hereunder as such and any remaining excess shall be
refunded to the Borrower. In determining if the interest paid or payable exceeds the Maximum Rate,
the Borrower and the Lenders shall, to the maximum extent permitted under applicable Law, (a) treat
all Borrowings as but a single extension of credit (and the Lenders and the Borrower agree that
such is the case and that provision herein for multiple Borrowings is for convenience only), (b)
characterize any nonprincipal payment as an expense, fee, or premium rather than as interest, (c)
exclude voluntary prepayments and the effects thereof, and (d) amortize, prorate, allocate, and
spread the total amount of interest throughout the entire contemplated term of the Obligations.
However, if the Obligations are paid and performed in full prior to the end of the full
contemplated term thereof, and if the interest received for the actual period of existence thereof
exceeds the Maximum Amount, the Lenders shall refund such excess, and, in such event, the Lenders
shall not, to the extent permitted by Law, be subject to any penalties provided by any Laws for
contracting for, charging, taking, reserving or receiving interest in excess of the Maximum Amount.
To the extent the Laws of the State of Texas are applicable for purposes of determining the
“Maximum Rate” or the “Maximum Amount,” then those terms mean the “weekly ceiling” from time to
time in effect under Texas Finance Code § 303.001, as limited by Texas Finance Code § 303.009. The
Borrower agrees that Chapter 346 of the Texas Finance Code, as amended (which regulates certain
revolving credit loan accounts and revolving tri-party accounts), does not apply to the
Obligations.

     10.11 Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     10.12 Integration. This Agreement, together with the other Loan Documents, comprises the complete
and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all
prior agreements, written or oral, on such subject matter. In the event of any conflict between
the provisions of this Agreement and those of any other Loan Document, the provisions of this
Agreement shall control; provided that the inclusion of supplemental rights or remedies in favor of
the Administrative Agent or the Lenders in any other Loan Document shall not be deemed a conflict
with this Agreement. Each Loan Document was drafted with the joint participation of the respective
parties thereto and shall be construed neither against nor in favor of any party, but rather in
accordance with the fair meaning thereof.

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

82

 

     10.14 Severability. Any provision of this Agreement and the other Loan Documents to
which the Borrower is a party that is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions thereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

     10.15 Replacement of Lenders. If (i) any Lender fails or refuses to consent to any requested
amendment or waiver pursuant to Section 10.01 and the Required Lenders have approved such requested
amendment or waiver, (ii) any Lender requests compensation under Section 3.04, or if the Borrower
is required to pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 3.01, (iii) any Lender is in breach of any of its
obligations under this Agreement or (iv) if any other circumstance exists hereunder that gives the
Borrower the right to replace a Lender as a party hereto, then the Borrower may, at its sole
expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to
assign and delegate, without recourse (in accordance with and subject to the restrictions contained
in, and consents required by, Section 10.07), all of its interests, rights and obligations under
this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided
that:

     (a) the Borrower shall have paid to the Administrative Agent the assignment fee specified in
Section 10.07(b)(iii);

     (b) such Lender shall have received payment of an amount equal to the outstanding principal of
its Revolving Loans, L/C Advances, L/C Borrowings, accrued interest thereon, accrued fees and all
other amounts payable to it hereunder and under the other Loan Documents (including any amounts
under Section 3.05 as though such replacement were a repayment and not as assignment) from the
assignee (to the extent of such outstanding principal and accrued interest and fees) or the
Borrower (in the case of all other amounts) such payment being at par, with no premium or discount;

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

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

     A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

10.16 Governing Law.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE;
PROVIDED THAT THE
ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER UNITED STATES
FEDERAL LAW.

83

 

     (b) EACH LOAN PARTY AND OTHER PARTY HERETO, AND EACH GUARANTOR, BY EXECUTION OF A
GUARANTY, AGREES AS TO THIS SECTION 10.16(b). ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS SITTING IN
HARRIS COUNTY OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND
DELIVERY OF THIS AGREEMENT, THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, AND BY
EXECUTION OF A GUARANTY, EACH GUARANTOR CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE
NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. THE BORROWER, EACH GUARANTOR, THE ADMINISTRATIVE AGENT
AND EACH LENDER (1) IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING 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 ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER
DOCUMENT RELATED THERETO, AND (2) IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY
CERTIFIED MAIL, RETURN RECEIPT REQUESTED, POSTAGE PREPAID, AT ITS ADDRESS FOR NOTICES DESIGNATED
HEREIN. THE BORROWER, EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL
SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED
BY THE LAW OF SUCH STATE.

     10.17 Waiver of Right to Trial by Jury, Etc. EACH PARTY TO THIS AGREEMENT AND EACH GUARANTOR, BY
EXECUTION OF A GUARANTY, HEREBY (a) EXPRESSLY AND IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY OF
ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES TO THE LOAN DOCUMENTS OR ANY
OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE;
AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN
ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
THE LOAN PARTIES TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY; AND (b) EXPRESSLY AND IRREVOCABLY
WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN
ANY SUCH ACTION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN,
OR IN ADDITION TO, ACTUAL DAMAGES; PROVIDED THAT THE WAIVER CONTAINED IN THIS SECTION 10.17(b)
SHALL NOT APPLY TO THE EXTENT THAT THE PARTY AGAINST WHOM DAMAGES ARE SOUGHT HAS ENGAGED IN GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT.

     10.18 Termination of Commitments Under First Amended and Restated Credit Agreement. As of
the Second Amended and Restated Closing Date, the aggregate commitments under the First Amended and
Restated Credit Agreement are terminated and the Administrative Agent and the Lenders hereby waive
any right to receive prior notice of such termination. Each Lender agrees upon the Second Amended
and Restated Closing Date to return to Borrower with reasonable promptness all

84

 

“Notes” as defined under the First Amended and Restated Credit Agreement which were delivered
by the Borrower in exchange for new Revolver Notes to be issued pursuant to this Agreement.

     10.19 No Novations, Etc. To the extent of the aggregate commitment outstanding under the
First Amended and Restated Credit Agreement ($25,000,000), nothing contained herein shall be deemed
a novation of or a repayment or new advance of any obligation of the Borrower hereunder. Only to
the extent of an increase in the Aggregate Revolving Commitment over that amount shall there be
deemed to be a new advance by the Lenders to the Borrower under this Agreement. The Indebtedness
owing under the First Amended and Restated Credit Agreement is renewed, rearranged, extended and
carried forward by this Agreement and all of the liens and security interests securing the
“Obligations” as defined in the First Amended and Restated Credit Agreement are carried forward and
secure, without interruption or loss or priority, the Obligations under this Agreement.

     10.20 USA Patriot Act. Pursuant to the requirements of the USA PATRIOT Act (Title) III of
Pub. L.107-56 (signed into law October 26, 2001), each Lender is required to obtain, verify and
record information that identifies the Borrower and the Guarantors, which information includes the
names and addresses of the Borrower and the Guarantors and other information that will allow each
Lender to identify the Borrower and the Guarantors in accordance with said Act.

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

[REMAINDER OF PAGE INTENTIONALLY BLANK;

SIGNATURES BEGIN ON NEXT PAGE]

85

 

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

	 	 	 	 	 
	 	ALLIS-CHALMERS ENERGY INC.,

a Delaware corporation, as Borrower

 	 
	 	By:  	/s/ Victor M. Perez
 	 
	 	 	Victor M. Perez 	 
	 	 	Chief Financial Officer 	 

Signature Page 1

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA,

as Administrative Agent and Collateral Agent

 	 
	 	By:  	/s/ Ann Hurley
 	 
	 	 	Name:  	Ann Hurley 	 
	 	 	Title:  	Manager, Agency 	 

Signature Page 2

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA, as Lender

and L/C Issuer

 	 
	 	By:  	/s/ Jason York
 	 
	 	 	Jason York 	 
	 	 	Authorized Signatory 	 

Signature Page 3

 

 

	 	 	 	 	 
	 	CATERPILLAR FINANCIAL 

SERVICES CORPORATION,

as Lender

 	 
	 	By:  	/s/ Christopher C. Patterson
 	 
	 	 	Name:  	Christopher C. Patterson 	 
	 	 	Title:  	Global Operations Manager—Capital Markets 	 

Signature Page 4

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as Lender

 	 
	 	By:  	/s/ Tara Narasiman
 	 
	 	 	Name:  	Tara Narasiman 	 
	 	 	Title:  	Associate 	 

Signature Page 5

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION,

as Lender

 	 
	 	By:  	/s/ Kenneth C. Coulter
 	 
	 	 	Name:  	Kenneth C. Coulter 	 
	 	 	Title:  	Vice President 	 

Signature Page 6

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.,

as Lender

 	 
	 	By:  	/s/ Donald W. Herrick, Jr.
 	 
	 	 	Name:  	Donald W. Herrick, Jr. 	 
	 	 	Title:  	Vice President 	 

Signature Page 7

 

 

	 	 	 	 	 
	 	NATIXIS,

as Lender

 	 
	 	By:  	/s/ Louis P. Laville, III
 	 
	 	 	Name:  	Louis P. Laville, III 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                           /s/ Timothy L. Polvado
 	 
	 	 	Name:  	Timothy L. Polvado 	 
	 	 	Title:  	Managing Director 	 

Signature Page 8

 

 

SCHEDULE 2.01

REVOLVING COMMITMENTS

	 	 	 	 	 
	Lender	 	Revolving Commitment
	Royal Bank of Canada
	 	$	12,000,000.00	 
	Caterpillar Financial Services Corporation
	 	$	10,000,000.00	 
	JPMorgan Chase Bank, N.A.
	 	$	10,000,000.00	 
	Wachovia Bank, National Association
	 	$	10,000,000.00	 
	Wells Fargo Bank, N.A.
	 	$	10,000,000.00	 
	Natixis
	 	$	10,000,000.00	 
	Total:
	 	$	62,000,000.00	 

Schedule 2.01

 

 

SCHEDULE 5.05

EXISTING INDEBTEDNESS

($ in 000’s)

	 	 	 	 	 
	9.0% Senior Notes
	 	$	255,000	 
	8.5% Senior Notes
	 	 	250,000	 
	DLS / US Bank Debt
	 	 	6,672	 
	Seller Notes
	 	 	900	 
	Obligations under non-compete agreements
	 	 	220	 
	Notes payable to former directors
	 	 	32	 
	Equipment installment notes and capital leases
	 	 	2,472	 
	Insurance premium financing
	 	 	331	 
	Total debt
	 	 	515,627	 

 

 

SCHEDULE 5.13

SUBSIDIARIES

AND OTHER EQUITY INVESTMENTS

	(a)	 	Subsidiaries as of the Second Amendment Closing Date:

	 	 	 	 	 
	Name	 	Jurisdiction of Organization	 	Ownership
	 
	 	 	 	 
	AirComp L.L.C

	 	Delaware
	 	100% owned by Mountain
Compressed Air, Inc.
	 
	 	 	 	 
	Allis-Chalmers GP, LLC

	 	Delaware
	 	100% owned by the Borrower
	 
	 	 	 	 
	Allis-Chalmers LP, LLC

	 	Delaware
	 	100% owned by the Borrower
	 
	 	 	 	 
	Allis-Chalmers Management, LP

	 	Texas
	 	.01% general partner
interest owned by
Allis-Chalmers GP, LLC and
99.99% limited partner
interest owned by
Allis-Chalmers LP, LLC
	 
	 	 	 	 
	Allis-Chalmers Production
Services, Inc.

	 	Texas
	 	100% owned by the Borrower
	 
	 	 	 	 
	Allis-Chalmers Rental
Services, Inc.

	 	Texas
	 	100 % owned by the Borrower
	 
	 	 	 	 
	Allis-Chalmers Tubular
Services, Inc.

	 	Texas
	 	100% owned by the Borrower
	 
	 	 	 	 
	DLS Argentina Limited

	 	British Virgin Islands
	 	100% owned by DLS
Drilling, Logistics and
Services Company
	 
	 	 	 	 
	DLS Drilling, Logistics and
Services Company

	 	British Virgin Islands
	 	100% owned by the Borrower
	 
	 	 	 	 
	Mountain Compressed Air, Inc.

	 	Texas
	 	100% owned by OilQuip
Rentals, Inc.
	 
	 	 	 	 
	Petro-Rentals, Inc.

	 	Louisiana
	 	100% owned by
Allis-Chalmers Production
Services, Inc.
	 
	 	 	 	 
	OilQuip Rentals, Inc.

	 	Delaware
	 	100% owned by the Borrower

Credit Schedule 5.13

 

 

	 	 	 	 	 
	Name	 	Jurisdiction of Organization	 	Ownership
	 
	 	 	 	 
	Strata Directional
Technology, Inc.

	 	Texas
	 	100% owned by the Borrower
	 
	 	 	 	 
	Tanus Argentina S.A.

	 	Argentina
	 	100% owned by DLS Argentina

Limited

	(b)	 	Other Equity Investments as of the Amendment Date:

1. Ownership of 66,667 shares of Class A common stock of Virgin Oil Company, Inc., a
Louisiana corporation.

2. Ownership of 187,500 shares of common stock, $1.00 par value per share, of Suncoast
Energy Corporation, a Texas corporation.

3. 50% membership interest in Drilling Partners, LLC, a Louisiana limited liability company.

4. Ownership of 10,000 shares of common stock, $0.01 par value per share, of Erskine Energy
Corporation.

5. Ownership of 11,771.57 shares of common stock of Erskine Energy Production Company.

	(c)	 	Other Investments as of the Amendment Date:

     None

Credit Schedule 5.13

 

 

SCHEDULE 5.22

LEASED LOCATIONS

	 	 	 
	Business Segment	 	Location
	 
	 	 
	Rental Tools

	 	Houston, Texas (2 locations)
	 

	 	Broussard, Louisiana
	 

	 	New Orleans, Louisiana
	International Drilling

	 	Buenos Aires, Argentina
	 

	 	Santa Cruz, Bolivia
	Directional Drilling Services

	 	Corpus Christi, Texas
	 

	 	Houston, Texas (2 locations)
	 

	 	Oklahoma City, Oklahoma
	 

	 	Lafayette, Louisiana
	Casing and Tubing Services

	 	Corpus Christi, Texas
	 

	 	Kilgore, Texas
	 

	 	Pearsall, Texas
	 

	 	Broussard, Louisiana (2 locations)
	 

	 	Houma, Louisiana
	Compressed Air Drilling Services

	 	Fort Stockton, Texas
	 

	 	Grandbury, Texas
	 

	 	Houston, Texas
	 

	 	San Angelo, Texas
	 

	 	Sonora, Texas
	 

	 	Carlsbad, New Mexico
	 

	 	Farmington, New Mexico
	 

	 	Denver, Colorado
	 

	 	Grand Junction, Colorado
	 

	 	Wilburton, Oklahoma
	Production Services

	 	Alvin, Texas
	 

	 	Carthage, Texas
	 

	 	Corpus Christi, Texas
	 

	 	Kilgore, Texas (2 locations)
	 

	 	Midland, Texas
	 

	 	Arcadia, Louisiana
	 

	 	Broussard, Louisiana
	 

	 	Cordell, Oklahoma
	 

	 	Houma, Louisiana

Schedule 5.22

 

SCHEDULE 5.23

MATERIAL AGREEMENTS

as of Second Amended and Restated Closing Date

	1.	 	Lease Agreement between Materiales y Equipo Petroleo, S.A. de C.V. (Matyep) and Jens’ Oil
Field Service, now known as Allis-Chalmers Tubular Services, Inc. dated August 4, 1997.
	 
	2.	 	Amended and Restated Credit Agreement dated as of April 26, 2007 by and among Allis-Chalmers
Energy Inc., as borrower, Royal Bank of Canada, as administrative agent and Collateral Agent,
RBC Capital Markets, as lead arranger and sole bookrunner, and the lenders party thereto.
	 
	3.	 	Guaranty Agreement (as defined in the Credit Agreement).
	 
	4.	 	Security Documents (as defined in the Credit Agreement).

	5.	 	Indenture dated as of January 18, 2006 by and among the Registrant, the Guarantors named
therein and Wells Fargo Bank, N.A., as trustee.

	6.	 	First Supplemental Indenture dated as of August 11, 2006 by and among Allis-Chalmers GP, LLC,
Allis-Chalmers LP, LLC, Allis-Chalmers Management, LP, Rogers Oil Tool Services, Inc., the
Registrant, the other Guarantors.

	7.	 	Second Supplemental Indenture dated as of January 23, 2007 by and among Petro-Rentals,
Incorporated, the Registrant, the other Guarantor parties thereto and Wells Fargo Bank, N.A.,
as trustee.

	8.	 	Indenture, dated as of January 29, 2007, by and among the Registrant, the Guarantors named
therein and Wells Fargo Bank, N.A.

	9.	 	Strategic Agreement dated July 1, 2003 between Pan American Energy LLC Sucursal Argentina And
DLS Argentina Limited Sucursal Argentina.

	10.	 	Amendment No. 1 dated May 18, 2005 to Strategic Agreement between Pan American Energy LLC
Sucursal Argentina and DLS Argentina Limited Sucursal Argentina.

	11.	 	Amendment No. 2 dated January 1, 2006 between Pan American Energy LLC Sucursal Argentina and
DLS Argentina Limited Sucursal Argentina.

Please also see Schedule 5.05 “Indebtedness” for reference to our Caterpillar finance agreements.

Schedule 5.23

 

SCHEDULE 7.01

EXISTING LIENS

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Filing
	Debtor	 	Creditor	 	Asset Secured	 	Jurisdiction
	AC Tubular

	 	Jens H. Mortensen, Jr.
	 	Equipment in Mexico
	 	Mexico
	Borrower and AirComp, LLC

	 	Caterpillar
	 	Air compressors
	 	Delaware and Texas

Schedule 7.01

 

SCHEDULE 10.02

ADDRESSES FOR NOTICES TO BORROWER,

GUARANTORS AND ADMINISTRATIVE AGENT

ADDRESS FOR NOTICES TO BORROWER

ALLIS-CHALMERS ENERGY INC.

5075 Westheimer

Suite 890

Houston, Texas 77056

Attn: General Counsel

Telephone: (713) 369-0550

Facsimile: (713)

ADDRESS FOR NOTICES TO GUARANTORS

[Name of Guarantor]

5075 Westheimer

Suite 890

Houston, Texas 77056

Attn: General Counsel

Telephone: (713) 369-0550

Facsimile: (713)

ADDRESSES FOR ROYAL BANK OF CANADA

Royal Bank of Canada’s Lending Office:

Royal Bank of Canada

New York Branch

One Liberty Plaza, 3rd Floor

New York, New York 10006-1404

Attention: Manager, Loans Administration

Telephone: (212) 428-6332

Facsimile: (212) 428-2372

For matters related to letters of credit:

Attention: Manager, Trade Products

Telephone: (212) 428-6235

Facsimile: (212) 428-3015

Schedule 10.2 — Page 1

 

in each case with a copy to:

Royal Bank of Canada

2800 Post Oak Boulevard

3900 Williams Tower

Houston, Texas 77056

Attention: Jason York

Telephone: (713) 403-5679

Facsimile: (713) 403-5624

Electronic Mail: Jason.York@rbccm.com

Administrative Agent’s Office:

Royal Bank of Canada

Agency Services Group

Royal Bank Plaza

P. O. Box 50, 200 Bay Street

12th Floor, South Tower

Toronto, Ontario M5J 2W7

Attention: Manager Agency

Telephone: (416) 842-3901

Facsimile: (416) 842-4023

Wiring Instructions:

JPMorgan Chase Bank, New York, New York

ABA 021-000021

For account Royal Bank of Canada, New York

Swift Code: ROYCUS3X

A/C 920-1033363

For further credit to A/C 293-746-4, Transit 1269

Ref: Allis-Chalmers Energy

Attn: Agency Services

Schedule 10.2 — Page 2

 

EXHIBIT A-1

FORM OF BORROWING NOTICE

Date:                     , _____

Royal Bank of Canada,

as Administrative Agent

Agency Services Group

Royal Bank Plaza, 200 Bay Street

12th Floor, South Tower

Toronto ON M5J 2W7

Facsimile: (416) 842-4023

Ladies and Gentlemen:

     Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of
April 26, 2007 (as amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement;” the terms defined therein being used herein as therein defined),
among Allis-Chalmers Energy Inc., a Delaware corporation (the “Borrower”), Royal Bank of Canada, as
Administrative Agent, and the Lenders from time to time party thereto.

     The undersigned hereby requests a revolving loan:

	I.	 	REVOLVER FACILITY

	 	1.	 	Status Information for the Revolver Facility

	 	(a)	 	Amount of Revolver Facility: $62,000,000
	 
	 	(b)	 	Revolving Loans outstanding prior to the
Borrowing requested herein: $                    
	 
	 	(c)	 	Letters of Credit outstanding prior to the
Borrowing requested herein: $                    
	 
	 	(d)	 	Principal amount of Revolving Loans available
to be borrowed (1(a) minus the sum of 1(b) and 1(c)): $                    

	 	2.	 	Amount of Borrowing: $                    
	 
	 	3.	 	Requested date of Borrowing:                     , 200_; must be
prior to Maturity Date.
	 
	 	4.	 	Requested interest rate Type of Revolving Loan and applicable Dollar amount:

	 	(a)	 	Base Rate Revolving Loan for $                    
	 
	 	(b)	 	Eurodollar Rate Revolving Loan with Interest
Period of:
                      

Exhibit A-1 — Page1

Form of Borrowing Notice

 

	 	 	 	 	 	 	 
	 

	 	(i)
	 	one month for
	 	$                    
	 

	 	(ii)
	 	two months for
	 	$                    
	 

	 	(iii)
	 	three months for
	 	$                    
	 

	 	(iv)
	 	six months for
	 	$                    

     The undersigned hereby certifies that the following statements will be true on the date of the
proposed Borrowing(s) after giving effect thereto and to the application of the proceeds therefrom:

     (a) the representations and warranties of the Borrower contained in Article V of the Agreement
are true and correct as though made on and as of such date (except such representations and
warranties which expressly refer to an earlier date, which are true and correct as of such earlier
date);

     (b) with respect to a Borrowing of Revolving Loans, if any, the amount of the requested
Borrowing, when added to Revolving Loans outstanding prior to the Borrowing and Letters of Credit
outstanding prior to the Borrowing will not exceed the Aggregate Revolving Commitment; and

     (c) no Default or Event of Default has occurred and is continuing, or would result from such
proposed Borrowing(s).

     The Borrowing requested herein complies with Sections 2.01, 2.02, 4.01, 4.02 and 4.04 of the
Agreement, as applicable.

	 	 	 	 	 
	 	ALLIS-CHALMERS ENERGY INC.,

a Delaware corporation, as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Exhibit A-1 — Page 2

Form of Borrowing Notice

 

	 	 	 	 	 

EXHIBIT A-2

FORM OF CONVERSION/CONTINUATION NOTICE

Date:                     , ____

Royal Bank of Canada,

as Administrative Agent

Agency Services Group

Royal Bank Plaza, 200 Bay Street

12th Floor, South Tower

Toronto ON M5J 2W7

Facsimile: (416) 842-4023

Ladies and Gentlemen:

     Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of
April 26, 2007 (as amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement;” the terms defined therein being used herein as therein defined),
among Allis-Chalmers Energy Inc., a Delaware corporation (the “Borrower”), Royal Bank of Canada, as
Administrative Agent, and the Lenders from time to time party thereto.

     The undersigned hereby requests:

	I.	 	REVOLVER FACILITY

	 	 	 	 	 	 	 	 	 
	1.	 	Amount of [conversion] [continuation]:	 	$                    
	 
	 	 	 	 	 	 	 	 
	2.	 	Existing rate:	 	Check applicable blank
	 
	 	 	 	 	 	 	 	 
	 	 	(a)	 	Base Rate	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	(b)	 	Eurodollar Rate Loan with

Interest Period of:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	(i)
	 	one month
	 	                    
	 

	 	 	 	(ii)
	 	two months
	 	                    
	 

	 	 	 	(iii)
	 	three months
	 	                    
	 

	 	 	 	(iv)
	 	six months
	 	                    

	 	3.	 	If a Eurodollar Rate Loan, date of the last day of the Interest
Period for such Loan:                     , 200_.

     The Revolving Loan described above is to be [converted] [continued] as follows:

	 	4.	 	Requested date of [conversion] [continuation]:                     ,
200_.
	 
	 	5.	 	Requested Type of Loan and applicable Dollar amount:                     

Exhibit A-2 Page 1

Form of Conversion Continuation Notice

 

	 	(a)	 	Base Rate Loan for $                    
	 
	 	(b)	 	Eurodollar Rate Loan with Interest Period of:

	 	 	 	 	 	 	 
	 

	 	(i)
	 	one month for
	 	$                    
	 

	 	(ii)
	 	two months for
	 	$                    
	 

	 	(iii)
	 	three months for
	 	$                    
	 

	 	(iv)
	 	six months for
	 	$                    

     The [conversion] [continuation] requested herein complies with Sections 2.01 and 2.02 of the
Agreement, as applicable.

	 	 	 	 	 
	 	ALLIS-CHALMERS ENERGY INC.,

a Delaware corporation, as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Exhibit A-2 Page 2

Form of Conversion Continuation Notice

 

EXHIBIT A-3

NOTICE IN RESPECT OF REPAYMENTS, PREPAYMENTS

AND REDUCTIONS OF REVOLVING COMMITMENT

                    [Date]

Royal Bank of Canada,

as Administrative Agent

Agency Services Group

Royal Bank Plaza, 200 Bay Street

12th Floor, South Tower

Toronto ON M5J 2W7

Facsimile: (416) 842-4023

Dear Sirs:

          The undersigned, Allis-Chalmers Energy Inc. (the “Borrower”), refers to the Second Amended and
Restated Credit Agreement dated as of April 26, 2007 (as may be amended, restated, replaced or
supplemented from time to time, the “Credit Agreement”, the terms defined therein being used herein
as therein defined) among the Borrower, the financial institutions that are named on the signature
pages thereto, as Lenders, RBC Capital Markets as Lead Arranger and Sole Bookrunner, and Royal Bank
of Canada, as Administrative Agent, and hereby gives you notice pursuant to [Section 2.03/Section
2.04] of the Credit Agreement that on [insert proposed date of repayment, prepayment or reduction
of the Revolving Commitment], the Borrower shall [make a repayment of $                                        
under and such repayment shall apply to                                          (specify Type of Revolving Loan to be
repaid)]/[make a prepayment of/ permanently reduce the Revolving Commitment by an aggregate
principal amount of                                          [the repayment, prepayment or reduction shall be for no
less than the minimums specified in the Credit Agreement.

	 	 	 	 	 
	 	Yours truly,

Allis-Chalmers Energy Inc.

 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	 	 

Exhibit A-3 Page 1

Form of Repayment/Prepayment Notice

 

	 	 	 	 	 

EXHIBIT B

FORM OF REVOLVER NOTE

	 	 	 
	$                                        

	 	April 26, 2006

     FOR VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay to the order of
                                         (the “Lender”), on the Maturity Date (as defined in the Credit Agreement
referred to below) the principal amount of                      Dollars ($                    ), or such lesser
principal amount of Revolving Loans made by Lender under that certain Second Amended and Restated
Credit Agreement dated of even date herewith (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Credit Agreement”; the terms defined therein
being used herein as therein defined), among the Borrower, the Lenders from time to time party
thereto, and Royal Bank of Canada, as Administrative Agent and Collateral Agent.

     The Borrower promises to pay interest on the unpaid principal amount of each Revolving Loan
from the date of such Revolving Loan until such principal amount is paid in full, at such interest
rates, and at such times as are specified in the Credit Agreement. All payments of principal and
interest shall be made to the Administrative Agent for the account of the Lender in Dollars in
immediately available funds to the account designated by the Administrative Agent in the Credit
Agreement. If any amount is not paid in full when due hereunder, such unpaid amount shall bear
interest, to be paid upon demand, from the due date thereof until the date of actual payment (and
before as well as after judgment) computed at the per annum rate set forth in the Credit Agreement.

     This Note is one of the Revolver Notes referred to in the Credit Agreement, is entitled to the
benefits thereof and is subject to optional and mandatory prepayment in whole or in part as
provided therein. This Note is also entitled to the benefits of each Guaranty. Upon the
occurrence of one or more of the Events of Default specified in the Credit Agreement, all amounts
then remaining unpaid on this Note shall become, or may be declared to be, immediately due and
payable all as provided in the Credit Agreement. Revolving Loans made by the Lender shall be
evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course
of business. The Lender may also attach schedules to this Note and endorse thereon the date,
amount and maturity of its Revolving Loans and payments with respect thereto.

     This Note is a Loan Document and is subject to Section 10.10 of the Credit Agreement, which is
incorporated herein by reference the same as if set forth herein verbatim.

     The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, notice of intent to accelerate, notice of acceleration,
demand, dishonor and non-payment of this Note.

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
TEXAS.

	 	 	 	 	 
	 	ALLIS-CHALMERS ENERGY INC.,

a Delaware corporation, as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Exhibit B Page 1

Form of Revolving Note

 

	 	 	 	 	 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

(Pursuant to Section 6.02 of the Agreement)

Financial Statement Date:                     , 200_

Royal Bank of Canada,

as Administrative Agent

Agency Services Group

Royal Bank Plaza, 200 Bay Street

12th Floor, South Tower

Toronto ON M5J 2W7

Facsimile: (416) 842-4023

Ladies and Gentlemen:

     Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of
April 26, 2007 (as amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement;” the terms defined therein being used herein as therein defined),
among Allis-Chalmers Energy Inc., a Delaware corporation (the “Borrower”), the Lenders from time to
time party thereto, and Royal Bank of Canada, as Administrative Agent. Capitalized terms used
herein but not defined herein shall have the meaning set forth in the Agreement.

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

     [Use the following for Fiscal Year-end financial statements]

     Attached hereto as Schedule 1 are the year-end audited consolidated financial statements of
the Borrower and its Subsidiaries required by Section 6.01(a) of the Agreement for the Fiscal Year
of the Borrower ended as of the above date, together with the report and opinion of an independent
certified public accountant required by such section; and

     [Use the following for fiscal quarter-end financial statements]

     Attached hereto as Schedule 1 are the unaudited consolidated financial statements of the
Borrower and its Subsidiaries required by Section 6.01(b) of the Agreement for the first three
fiscal quarters of the Borrower ended as of the above date, together with a certificate of a
Responsible Officer of the Borrower stating that such financial statements fairly present the
financial condition, results of operations and cash flows of the Borrower and its Subsidiaries for
such fiscal quarter in accordance with GAAP as at such date and for such period, subject only to
normal year-end audit adjustments and the absence of footnotes.

     [Use the following for both Fiscal Year-end and quarter-end financial statements]

     1. The undersigned has reviewed and is familiar with the terms of the Agreement and has made,
or has caused to be made under his/her supervision, a detailed review of the transactions and

Exhibit C — Page 1

Form of Compliance Certificate

 

condition (financial or otherwise) of the Borrower during the accounting period covered by the
attached financial statements.

     2. A review of the activities of the Borrower during such fiscal period has been made under
the supervision of the undersigned with a view to determining whether during such fiscal period the
Borrower performed and observed all its Obligations under the Loan Documents, and no Default or
Event of Default has occurred and is continuing except as follows (list of each such Default or
Event of Default and include the information required by Section 6.03 of the Agreement):

     3. During such fiscal period no casualty losses have occurred, except as described below:

     4. The covenant analyses and information set forth on Schedule 3 attached hereto are true and
accurate on and as of the date of this Certificate.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of                     , 200_.

	 	 	 	 	 
	 	ALLIS-CHALMERS ENERGY INC.

a Delaware corporation, as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Exhibit C — Page 2

Form of Compliance Certificate

 

	 	 	 	 	 

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

SCHEDULE 3

to the Compliance Certificate

($ in 000’s)

	I.	 	Section 7.04 — Indebtedness

	 	 	 	 	 
	 
	 	 	 	 
	A.

	 	Indebtedness outstanding on Second Amended and Restated
Closing Date and listed on Schedule 5.05 and any
refinancings, etc. permitted by Section 7.04(b)
	 	$                    
	 
	 	 	 	 
	B.

	 	Indebtedness in connection with Swap Contracts permitted
by Section 7.04(d)
	 	$                    
	 
	 	 	 	 
	C.

	 	Outstanding Principal Amount of Purchase Money
Indebtedness for fixed or capital assets permitted by Section
7.04(e) (may not exceed $2,000,000)
	 	$                    
	 
	 	 	 	 
	D.

	 	Outstanding Principal Amount of Indebtedness associated
with Liens on acquired assets permitted by Section 7.04(f)
(may not exceed $2,000,000)
	 	$                    
	 
	 	 	 	 
	E.

	 	Outstanding Principal Amount of Indebtedness associated
with Capital Leases and obligations to make equipment
financing lease or rental payments permitted by Section
7.04(g) (may not exceed $15,000,000)
	 	$                    
	 
	 	 	 	 
	F.

	 	Indebtedness owing by DLS’ Argentina Branch to US Bank
National Association reflected on Schedule 5.05) (may not
exceed $7,302,000)
	 	 
	 
	 	 	 	 
	G.

	 	Indebtedness owing by DLS’ or DLS’ Subsidiaries owing to
local Argentina lenders permitted by Section 7.04(j) (may not
exceed $10,000,000)
	 	 
	 
	 	 	 	 
	II. Section 7.19(a) — Interest Coverage Ratio
	 
	 	 	 	 
	A.

	 	Consolidated EBITDA (subject to proforma adjustments, if
any, permitted by Section 7.19(e) of the Agreement) for four
consecutive fiscal quarters ending on the Financial Statement
Date (“Subject Period”)(see Credit Agreement definition of
“Consolidated EBITDA”):
	 	$                    
	 
	 	 	 	 
	B.

	 	Sum of (i) Consolidated Interest Charges (subject to
proforma adjustments, if any, permitted by Section 7.19(e) of
the Agreement) during Subject Period plus (ii) imputed
interest charges on Synthetic Leases during Subject Period:	 	$                    

Exhibit C — Page 3

Form of Compliance Certificate

 

	 	 	 	 	 
	 
	 	 	 	 
	C.

	 	Is ratio of II.A. to II.B. at least 2.75 to 1.0?
	 	Yes/No
	 
	 	 	 	 
	III. Section 7.19(b) — Fixed Asset Coverage Ratio
	 
	 	 	 	 
	A.

	 	Orderly liquidation value of Borrower’s and its
Subsidiaries’ domestic fixed assets (determined as of most
recently delivered asset appraisal delivered pursuant to
Section 6.02(e) or (f) of the Credit Agreement) on which
Administrative Agent holds first priority perfected Lien:
	 	$                    
	 
	 	 	 	 
	B.

	 	Outstanding Amount of Revolver Principal Debt on most
recent Financial Statement Date:
	 	$                    
	 
	 	 	 	 
	C.

	 	Is ratio of III.A. to III.B. at least 1.33 to 1.0?
	 	Yes/No
	 
	 	 	 	 
	IV. Section 7.19(c) — Leverage Ratio
	 
	 	 	 	 
	A.

	 	Consolidated Funded Debt for Subject Period (see Credit
Agreement definition of “Consolidated Funded Debt”):
	 	$                    
	 
	 	 	 	 
	B.

	 	Unrestricted cash of the Borrower and its Subsidiaries
deposited in an account with the Administrative Agent or
Collateral Agent (or another financial institution acceptable
to the Administrative Agent) plus (i) unrestricted cash of
the Borrower and its Subsidiaries deposited with a Person
other than a Lender subject to a control agreement in favor
of the Administrative Agent or Collateral Agent plus (ii) at
the Administrative Agent’s discretion, unrestricted cash of
the Borrower and its Subsidiaries reflected on the Borrower’s
consolidated balance sheet and otherwise subjected to a Lien
in favor of the Administrative Agent or Collateral Agent and
not otherwise pledged or subject to any claim or encumbrance
of any third party plus (iii) Cash Equivalents.	 	 
	 
	 	 	 	 
	C.

	 	Line IV.A minus Line IV.B
	 	$                    
	 
	 	 	 	 
	D.

	 	Consolidated EBITDA (subject to proforma adjustments, if
any, permitted by Section 7.19(e) of the Agreement) for
Subject Period:
	 	$                    
	 
	 	 	 	 
	E.

	 	Is ratio of IV.C. to IV. D. no more than 4.00 to 1.0?
	 	Yes/No
	 
	 	 	 	 
	V. Section 7.19(d) — Senior Leverage Ratio
	 
	 	 	 	 
	A.

	 	Consolidated Senior Debt for Subject Period (see Credit

Agreement	 	 

Exhibit C — Page 4

Form of Compliance Certificate

 

	 	 	 	 	 
	 

	 	definition of “Consolidated Senior Debt”):
	 	$                    
	 
	 	 	 	 
	B.

	 	Consolidated EBITDA (subject to proforma adjustments, if
any, permitted by Section 7.19(e) of the Agreement) for
Subject Period:
	 	$                    
	 
	 	 	 	 
	C.

	 	Is ratio of V.A. to V. B. no more than 2.50 to 1.0?
	 	Yes/No

Exhibit C — Page 5

Form of Compliance Certificate

 

EXHIBIT D

FORM OF ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective
Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”)
and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below (as may be amended,
the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The
Standard Terms and Conditions set forth in Annex I attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and Assumption as if set forth
herein in full.

     For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement and any other
documents or instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and obligations of the
Assignor under the respective facilities identified below and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under
or in connection with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or related to any of the
foregoing, including, but not limited to, contract claims, tort claims, malpractice claims,
statutory claims and all other claims at law or in equity related to the rights and obligations
sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned
pursuant to clauses (i) and (ii) above being referred to herein collectively as, the “Assigned
Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly
provided in this Assignment and Assumption, without representation or warranty by the Assignor.

	 	 	 	 	 
	1.

	 	Assignor:	 	 
	 
	 	 	 	 
	2.

	 	Assignee:	 	 
	 

	 	 	 	[and is an Affiliate/Approved Fund of [identify Lender]
	 
	 	 	 	 
	3.

	 	Borrower(s):
	 	Allis-Chalmers Energy Inc.
	 
	 	 	 	 
	4.

	 	Administrative Agent:
	 	Royal Bank of Canada, as the administrative agent under
the Credit Agreement
	 
	 	 	 	 
	5.

	 	Credit Agreement:
	 	The $62,000,000 Second Amended and Restated Credit Agreement
dated as of April 26, 2007 among Allis-Chalmers Energy Inc., the Lenders parties
thereto, and Royal Bank of Canada, as Administrative Agent.

Exhibit D — Page 1

Form of Assignment and Assumption

 

	 	 	 	 	 
	6.

	 	Assigned Interest:	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	 	Amount of	 	 	 	 
	 	 	Commitment/Loans for	 	 	Commitment/Loans	 	 	Percentage Assigned of	 
	 	 	all Lenders*	 	 	Assigned*	 	 	Commitment/Loans	 
	Revolving Loans:
	 	$	 	 	 	$	 	 	 	 	%	 
	Total:
	 	$	 	 	 	$	 	 	 	 	%	 

[7. Trade Date:                      ]

Effective Date:                      ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE
THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 

 

			
	* 	 	Amount to be adjusted by the counterparties to take into account any payments or prepayments made
between the Trade Date and the Effective Date.

Consented to and Accepted:

	 	 	 	 	 
	[NAME OF ADMINISTRATIVE AGENT], as

Administrative Agent

 	 	 
	By:  	 	 	 
	 	Title: 	 	 
	 	 	 	 

Exhibit D — Page 2

Form of Assignment and Assumption

 

[Consented to:]

	 	 	 	 	 
	ALLIS-CHALMERS ENERGY INC.

a Delaware corporation

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

Exhibit D — Page 3

Form of Assignment and Assumption

 

	 	 	 	 	 

ANNEX 1

TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

     1. Representations and Warranties.

          1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under any
Loan Document.

          1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit Agreement
(subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and
after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant to Section 6.01 thereof, as applicable, and such
other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without reliance on the
Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached to the
Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms
of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it
will, independently and without reliance on the Administrative Agent, the Assignor or any other
Lender, and based on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under the Loan Documents,
and (ii) it will perform in accordance with their terms all of the obligations which by the terms
of the Loan Documents are required to be performed by it as a Lender.

     2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of principal, interest, fees
and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective
Date and to the Assignee for amounts which have accrued from and after the Effective Date.

     3. General Provisions. This Assignment and Assumption shall be binding upon, and inure
to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and

Exhibit D — Page 4

Form of Assignment and Assumption

 

Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of Texas.

Exhibit D — Page 5

Form of Assignment and Assumptionexv10w2

 

Exhibit 10.2

AMENDED AND RESTATED GUARANTY

     THIS AMENDED AND RESTATED GUARANTY (this “Guaranty”), dated as of April 26, 2007, is made by
each of the undersigned (individually, a “Guarantor” and collectively, the “Guarantors”), in favor
of ROYAL BANK OF CANADA, as administrative agent for the Lenders (as defined below).

WITNESSETH:

     WHEREAS, Allis-Chalmers Energy Inc., a Delaware corporation (the “Borrower”), Royal Bank of
Canada, individually and as administrative agent and collateral agent (in its capacity as
administrative agent, the “Administrative Agent”), and certain other lenders party thereto entered
into a Credit Agreement, originally dated as of July 11, 2005, providing for an aggregate credit
facility of up to $55,000,000 (as amended, the “Original Credit Agreement”); and

     WHEREAS, as a condition precedent to making advances under the Original Credit Agreement, each
of AirComp, LLC, a Delaware limited liability company, Allis-Chalmers Production Services, Inc., a
Texas corporation, formerly known as Capcoil Tubing Services, Inc. and successor by merger with
Downhole Injection Systems, L.L.C., a Texas limited liability company, Allis-Chalmers Rental
Services, Inc., a Texas corporation, formerly known as Allis-Chalmers Rental Tools, Inc. and prior
to that formerly known as Safco-Oil Field Products, Inc., successor by merger with Specialty Rental
Tools, Inc., a Louisiana corporation and with Delta Rental Services, Inc., a Louisiana corporation,
Allis-Chalmers Tubular Services, Inc., a Texas corporation, formerly known as Jens’ Oil Field
Service, Inc., successor by merger with Rogers Oil Tool Services, Inc., a Louisiana corporation,
Mountain Compressed Air, Inc., a Texas corporation, OilQuip Rentals, Inc. and Strata Directional
Technology, Inc., a Texas corporation, successor by merger with Target Energy, Inc. entered into a
Guaranty dated July 11, 2005 in favor of the Administrative Agent guaranteeing payment of the
indebtedness of the Borrower under the Original Credit Agreement; and

     WHEREAS, the Original Credit Agreement was amended and restated in its entirety by an Amended
and Restated Credit Agreement dated January 18, 2006 among Borrower, Royal Bank of Canada,
individually and as Administrative Agent and collateral agent, and certain other lenders party
thereto, providing for a reduced aggregate credit facility of $25,000,000 (as amended, the “Amended
and Restated Credit Agreement”); and

     WHEREAS, the Amended and Restated Credit Agreement was amended by a First Amendment to Amended
and Restated Credit Agreement dated August 8, 2006 among Borrower, Royal Bank of Canada,
individually and as Administrative Agent and collateral agent, and certain other lenders party
thereto (the “First Amendment”) and;

     WHEREAS, as a condition precedent to the effectiveness of the First Amendment, each of
Allis-Chalmers GP, LLC, a Delaware limited liability company, Allis-Chalmers LP, LLC, a Delaware
limited liability company, and Allis-Chalmers Management, LP, a Texas limited partnership entered
into a Guaranty dated August 8, 2006 in favor of the Administrative Agent guaranteeing payment of
the indebtedness of the Borrower under the Amended and Restated Credit Agreement, as amended by the First Amendment; and

Amended and Restated Guaranty

1

 

     WHEREAS, the Amended and Restated Credit Agreement was amended and restated in its entirety by
a Second Amended and Restated Credit Agreement of even date herewith among Borrower, Royal Bank of
Canada, individually and as Administrative Agent and collateral agent, and certain other lenders
party thereto, providing for an aggregate credit facility of $62,000,000 (the “Second Amended and
Restated Credit Agreement”); and

     WHEREAS, each Guarantor is a wholly owned direct or indirect subsidiary of the Borrower; and

     WHEREAS, as a condition precedent to funding of Loans under the Second Amended and Restated
Credit Agreement, each Guarantor is required to deliver this Guaranty pursuant to Section 6.13 of
the Second Amended and Restated Credit Agreement; and

     WHEREAS, each Guarantor has duly authorized the execution, delivery and performance of this
Guaranty; and

     WHEREAS, it is in the best interests of each Guarantor to execute this Guaranty inasmuch as
each Guarantor will derive substantial direct and indirect benefits from the extensions of credit made from time to time to or for the account of the Borrower.

     NOW THEREFORE, for good and valuable consideration the receipt of which is hereby
acknowledged, and in order to induce the Lenders to fund Loans to the Borrower pursuant to the
Second Amended and Restated Credit Agreement by fulfilling the requirements of the Second Amended
and Restated Credit Agreement, each Guarantor agrees, for the benefit of each Lender, as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1 Certain Terms. The following capitalized terms when used in this Guaranty,
including its preamble and recitals, shall have the following meanings (such definitions to be
equally applicable to the singular and plural forms thereof):

     “Administrative Agent” is defined in the first recital.

     “Borrower” is defined in the first recital.

     “Commitments” means each Commitment as defined in the Second Amended and Restated Credit
Agreement.

     “Guarantor” and “Guarantors” are defined in the preamble.

     “Guaranty” is defined in the preamble.

     “Lenders” is defined in the first recital.

     “Loans” means each Loan as defined in the Second Amended and Restated Credit Agreement.

2

 

     “Loan Documents” means the Loan Documents as defined in the Second Amended and Restated Credit
Agreement.

     “Note” means each Note as defined in the Second Amended and Restated Credit Agreement.

     “Obligations” means the Obligations as defined in the Second Amended and Restated Credit
Agreement.

     “Obligor” means the Borrower or any other Person (other than the Administrative Agent or any
Lender) obligated under any Loan Document.

     “Required Lenders” means the Required Lenders as defined in the Second Amended and Restated
Credit Agreement.

     “Subsidiary Guarantors” means Subsidiaries of Borrower that have guaranteed all or any part of
the Obligations.

     “Taxes” is defined in clause (a) of Section 2.7.

     “UCC” means the Uniform Commercial Code as in effect in the State of Texas.

     SECTION 1.2 Second Amended and Restated Credit Agreement Definitions. Unless otherwise
defined herein or the context otherwise requires, capitalized terms used in this Guaranty,
including its preamble and recitals, have the meanings provided in the Second Amended and Restated
Credit Agreement.

     SECTION 1.3 UCC Definitions. Unless otherwise defined herein or the context otherwise
requires, terms for which meanings are provided in the UCC are used in this Guaranty, including its
preamble and recitals, with such meanings.

ARTICLE II

GUARANTY PROVISIONS

     SECTION 2.1 Guaranty. Each Guarantor hereby absolutely, unconditionally, and
irrevocably (1) guarantees the full and punctual payment when due, whether at stated maturity, by
required prepayment, declaration, acceleration, demand or otherwise, of all Obligations of the
Borrower and each other Obligor now or hereafter existing under each of the Second Amended and
Restated Credit Agreement, the Notes and each other Loan Document to which the Borrower or such
other Obligor is or may become a party, whether for principal, interest, fees, expenses or
otherwise (including all such amounts which would become due but for the operation of the automatic
stay under Section 362(a) of the United States Bankruptcy Code, 11 U.S.C. §362(a), and the
operation of Sections 502(b) and 506(b) of the United States Bankruptcy Code, 11 U.S.C. §502(b) and
§506(b)), and (2) indemnifies and holds harmless each Lender and each holder of a Note for any and
all costs and expenses (including reasonable attorney’s fees and expenses) incurred by such Lender
or such holder, as the case may be, in enforcing any rights under this Guaranty; provided however,
that each Guarantor shall be liable under this Guaranty for the maximum amount of such liability
that can be hereby incurred without rendering this Guaranty, as it relates to such Guarantor,
voidable under applicable law relating to fraudulent conveyance or fraudulent

3

 

transfer, and not for any greater amount. This Guaranty constitutes a guaranty of payment when
due and not of collection, and each Guarantor specifically agrees that it shall not be necessary or
required that any Lender or any holder of any Note exercise any right, assert any claim or demand
or enforce any remedy whatsoever against the Borrower or any other Obligor (or any other Person)
before or as a condition to the obligations of such Guarantor hereunder.

     SECTION 2.2 Acceleration of Guaranty. Each Guarantor agrees that, in the event of the
occurrence of any event of the type described in Section 8.01(f) or Section 8.01(g) of the Second
Amended and Restated Credit Agreement, with respect to the Borrower, any other Obligor or any other
Guarantor, and if such event shall occur at a time when any of the Obligations may not then be due
and payable, such Guarantor will pay to the Lenders forthwith the full amount which would be
payable hereunder by such Guarantor if all such Obligations were then due and payable.

     SECTION 2.3 Guaranty Absolute, etc. This Guaranty shall in all respects be a
continuing, absolute, unconditional and irrevocable guaranty of payment, and shall remain in full
force and effect until all Obligations of the Borrower and each other Obligor have been paid in
full, all obligations of the Guarantors hereunder shall have been paid in full, all Commitments
shall have terminated and, except as provided in Section 10.01(e) of the Second Amended and
Restated Credit Agreement, all Lender Hedging Agreements have terminated. No Guarantor may rescind
or revoke its obligations hereunder. Each Guarantor guarantees that the Obligations of the Borrower
and each other Obligor will be paid strictly in accordance with the terms of the Second Amended and
Restated Credit Agreement and each other Loan Document and each Lender Hedging Agreement under
which they arise, regardless of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights of any Lender or any holder of any Note with
respect thereto. The liability of each Guarantor under this Guaranty shall be absolute,
unconditional and irrevocable irrespective of: (1) any lack of validity, legality or enforceability
of the Second Amended and Restated Credit Agreement, any Note or any other Loan Document or any
Lender Hedging Agreement; (2) the failure of any Lender or any holder of any Note (a) to assert any
claim or demand or to enforce any right or remedy against the Borrower, any other Obligor or any
other Person (including any other guarantor) under the provisions of the Second Amended and
Restated Credit Agreement, any Note, any other Loan Document, any Lender Hedging Agreement or
otherwise, or (b) to exercise any right or remedy against any other guarantor of, or collateral
securing, any Obligations of the Borrower or any other Obligor; (3) any change in the time, manner
or place of payment of, or in any other term of, all or any of the Obligations of the Borrower or
any other Obligor, or any other extension, compromise or renewal of any Obligations of the Borrower
or any other Obligor; (4) any reduction, limitation, impairment or termination of any Obligations
of the Borrower or any other Obligor for any reason, including any claim of waiver, release,
surrender, alteration or compromise, and shall not be subject to (and each Guarantor hereby waives
any right to or claim of) any defense or setoff, counterclaim, recoupment or termination whatsoever
by reason of the invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability
of, or any other event or occurrence affecting, any Obligations of the Borrower, any other Obligor
or otherwise; (5) any amendment to, rescission, waiver, or other modification of, or any consent to
departure from, any of the terms of the Second Amended and Restated Credit Agreement, any Note or
any other Loan Document or any Lender Hedging Agreement; (6) any addition, exchange, release,
surrender or non-perfection of any collateral, or any amendment to or waiver or release or addition
of, or consent to departure from, any other guaranty, held by any Lender or any holder of any Note
securing any of the Obligations of the Borrower or any other Obligor; (7) the insolvency or
bankruptcy of, or similar event affecting, the Borrower or any other Obligor; or (8) any other
circumstance which might otherwise constitute a defense available to, or a legal or equitable
discharge of, the Borrower, any other Obligor, any surety or any guarantor. Each Guarantor

4

 

waives all rights and defenses which may arise with respect to any of the foregoing, and each
Guarantor waives any right to revoke this Guaranty with respect to future indebtedness. Each
Guarantor waives all rights or defenses under (1) Section 34.01 et seq. of the
Texas Business and Commerce Code, as amended, (2) Section 17.001 of the Texas Civil Practice and
Remedies Code, as amended, (3) Rule 31 of the Texas Rules of Civil Procedure, as amended, or (4)
common law, in equity, under contract, by statute, or otherwise.

     SECTION 2.4 Reinstatement. Each Guarantor agrees that this Guaranty shall continue to
be effective or be reinstated, as the case may be, if at any time any payment (in whole or in part)
of any of the Obligations is rescinded or must otherwise be restored by any Lender or any holder of
any Note, upon the insolvency, bankruptcy or reorganization of the Borrower, any other Obligor or
otherwise, all as though such payment had not been made.

     SECTION 2.5 Waiver, etc. The Guarantors hereby waive promptness, diligence, notice
of acceptance and any other notice with respect to any of the Obligations of the Borrower or any
other Obligor and this Guaranty and any requirement that the Administrative Agent, any other Lender
or any holder of any Note protect, secure, perfect or insure any security interest or Lien, or any
property subject thereto, or exhaust any right or take any action against the Borrower, any other
Obligor or any other Person (including any other guarantor) or entity or any collateral securing
the Obligations of the Borrower or any other Obligor, as the case may be.

     SECTION 2.6 Waiver of Subrogation. Until the Obligations are paid in full, all
Commitments have terminated and all Lender Hedging Agreements have terminated, the Guarantors shall
not enforce or exercise any claim or other rights which they may now or hereafter acquire against
the Borrower or any other Obligor that arise from the existence, payment, performance or
enforcement of any Guarantor’s obligations under this Guaranty or any other Loan Document,
including any right of subrogation, reimbursement, exoneration, or indemnification, any right to
participate in any claim or remedy of the Lenders against the Borrower or any other Obligor or any
collateral which the Administrative Agent now has or hereafter acquires, whether or not such claim,
remedy or right arises in equity, or under contract, statute or common law, including the right to
take or receive from the Borrower or any other Obligor, directly or indirectly, in cash or other
property or by set-off or in any manner, payment or security on account of such claim or other
rights. If any amount shall be paid to any Guarantor in violation of the preceding sentence, such
amount shall be deemed to have been paid to such Guarantor for the benefit of, and held in trust
for, the Lenders, and shall forthwith be paid to the Lenders by the Guarantor receiving such
payment to be credited and applied upon the Obligations, whether matured or unmatured. Each
Guarantor acknowledges that it will receive direct and indirect benefits from the financing
arrangements contemplated by the Second Amended and Restated Credit Agreement and that the waiver
set forth in this Section is knowingly made in contemplation of such benefits.

     SECTION 2.7 Payments Free and Clear of Taxes, etc. Each Guarantor hereby agrees
that:

     (a) All payments by such Guarantor hereunder shall be made in accordance with Section 3.01 of
the Second Amended and Restated Credit Agreement free and clear of and without deduction for any
and all present or future taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and all liabilities with respect thereto; excluding, in the case
of the Administrative Agent and each Lender, (i) taxes imposed on or measured by its net income,
and franchise taxes (including the Texas franchise tax) imposed on it (in lieu of net income
taxes), by the United States or any state or political subdivision thereof, or by the jurisdiction
(or any political subdivision thereof) under the Laws of

5

 

which the Administrative Agent or such Lender, as the case may be, is organized, is or should
be qualified to do business or maintains its Lending Office, (ii) any branch profits taxes imposed
by the United States or any similar tax imposed by any other jurisdiction described in clause
(i) above, (iii) in the case of a Foreign Lender, any withholding tax that is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to the
Second Amended and Restated Credit Agreement (or designates a new lending office) or is
attributable to such Foreign Lender’s failure to comply with Section 3.01(f) of the Second
Amended and Restated Credit Agreement, except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new lending office (or assignment),
to receive additional amounts from the Borrower with respect to such withholding tax pursuant to
Section 3.01(a) of the Second Amended and Restated Credit Agreement and which withholding
tax may not be eliminated by complying with Section 3.01(f) of the Second Amended and
Restated Credit Agreement, and (iv) any backup withholding tax required to be withheld or paid
pursuant to Section 3406 of the Code (all such non-excluded taxes, duties, levies, imposts,
deductions, assessments, fees, withholdings or similar charges, and liabilities being hereinafter
referred to as “Taxes”). If such Guarantor shall be required by any Laws to deduct any Taxes from
or in respect of any sum payable under any Loan Document to the Administrative Agent or any Lender,
(1) the sum payable shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section), each of the
Administrative Agent and such Lender receives an amount equal to the sum it would have received had
no such deductions been made, (2) such Guarantor shall make such deductions, (3) such Guarantor
shall pay the full amount deducted to the relevant taxation authority or other authority in
accordance with applicable Laws, and (4) within 30 days after the date of such payment, such
Guarantor shall furnish to the Administrative Agent the original or a certified copy of a receipt
evidencing payment thereof.

     (b) If a Guarantor fails to pay any Taxes when due to the appropriate taxing authority or
fails to remit to any Lender the required receipts or other required documentary evidence, such
Guarantor shall indemnify such Lender for any incremental Taxes, interest or penalties that may
become payable by such Lender as a result of any such failure.

     (c) Without prejudice to the survival of any other agreement of the Guarantors hereunder, the
agreements and obligations of the Guarantors contained in this Section 2.7 shall survive the
payment in full of the principal of and interest on the Loans.

     SECTION 2.8 Contribution Agreement. Upon full and final payment of the Obligations,
each Guarantor and all other Subsidiary Guarantors which have made payments upon all or any part of
the Obligations shall be entitled to contribution from all of the other Guarantors and Subsidiary
Guarantors, to the end that all such payments upon the Obligations shall be shared among all
Guarantors and Subsidiary Guarantors who guaranteed such Obligations in proportion to their
respective Net Worths (defined below); provided that the contribution obligations of each of the
Guarantors and Subsidiary Guarantors shall be limited to the maximum amount that it can pay at such
time without rendering its contribution obligations voidable under applicable law relating to
fraudulent conveyances or fraudulent transfers. As used in this subsection, the “Net Worth” of each
of the Guarantors and Subsidiary Guarantors means, at any time, the remainder of (i) the fair value
of such Guarantor’s assets (other than such right of contribution), minus (ii) the fair value of
such Guarantor’s liabilities (other than its liabilities under its guaranty of the Obligations).

     SECTION 2.9 Subordination. Each Guarantor hereby subordinates and makes inferior to
the Obligations any and all indebtedness now or at any time hereafter owed by the Borrower or other Obligor

6

 

to such Guarantor. Each Guarantor agrees that after the occurrence of any Default or Event of
Default under the Second Amended and Restated Credit Agreement, it will not permit the Borrower to
repay such indebtedness or any part thereof and it will not accept payment from the Borrower of
such indebtedness or any part thereof without the prior written consent of the Required Lenders. If
a Guarantor receives any such payment without the prior required written consent, the amount so
paid shall be held in trust for the benefit of the Lenders, shall be segregated from the other
funds of such Guarantor, and shall forthwith be paid over to the Administrative Agent to be held by
the Administrative Agent as collateral for, or then or at any time thereafter applied in whole or
in part by the Administrative Agent against, all or any portions of the Obligations, whether
matured or unmatured, in such order as the Administrative Agent shall elect.

ARTICLE III

REPRESENTATIONS, WARRANTEES AND COVENANTS

     SECTION 3.1 Representations, Warranties and Covenants. By execution hereof, each
Guarantor covenants and agrees that the representations and warranties set forth in Sections 5.01,
5.02, 5.03, 5.04, 5.06, 5.07, 5.08, 5.15, 5.18 and 5.23 of the Second Amended and Restated Credit
Agreement are applicable to such Guarantor and such Guarantor reaffirms that each such
representation and warranty is true and correct as to it. By execution hereof, each Guarantor
covenants and agrees that the terms, covenants, and conditions set forth in Sections 10.05, 10.16
and 10.17 of the Second Amended and Restated Credit Agreement are applicable to such Guarantor and
shall be imposed upon such Guarantor, and such Guarantor covenants and agrees to promptly and
properly perform, observe, and comply with each such term, covenant, or condition applicable to it.
Moreover, each Guarantor acknowledges and agrees that this Guaranty is subject to the offset
provisions of the Second Amended and Restated Credit Agreement in favor of the Administrative Agent and the Lenders.

ARTICLE IV

MISCELLANEOUS PROVISIONS

     SECTION 4.1 Loan Document. This Guaranty is a Loan Document executed pursuant to the
Second Amended and Restated Credit Agreement and shall (unless otherwise expressly indicated
herein) be construed, administered and applied in accordance with the terms and provisions thereof.

     SECTION 4.2 Releases. At such time as the Loans shall have been paid in full, the
Commitments have been terminated, and, subject to Section 10.01(e) of the Second Amended and
Restated Credit Agreement, no Lender Hedging Agreements are outstanding, the Administrative Agent
shall, at the request and expense of the Guarantors following such termination, promptly execute
and deliver to the Guarantors such documents and instruments as the Guarantors shall reasonably
request to evidence termination and release of this Guaranty.

     SECTION 4.3 Administrative Agent and Lenders; Successors and Assigns.

     (a) The Administrative Agent is Administrative Agent for each Lender under the Second Amended
and Restated Credit Agreement. All rights granted to Administrative Agent under or in connection
with this Guaranty are for each Lender’s ratable benefit. The Administrative Agent may, without the
joinder of any Lender, exercise any rights in Administrative Agent’s or Lenders’ favor under or in
connection with this Guaranty. The Administrative Agent’s and each Lender’s rights and obligations

7

 

vis-a-vis each other may be subject to one or more separate agreements between those parties.
However, the Guarantors are not required to inquire about any such agreement and are not subject to
any terms of it unless the Guarantors specifically enter into such agreement. Therefore, neither
Guarantors nor any of their successors or assigns are entitled to any benefits or provisions of any
such separate agreement nor are they entitled to rely upon or raise as a defense any party’s
failure or refusal to comply with the provisions of any such agreement.

     (b) This Guaranty benefits the Administrative Agent, the Lenders, and their respective
successors and assigns and binds each Guarantor and its successors and assigns. Upon appointment of
any successor Administrative Agent under the Second Amended and Restated Credit Agreement, all of
the rights of Administrative Agent under this Guaranty automatically vests in that new
Administrative Agent as successor Administrative Agent on behalf of Lenders without any further
act, deed, conveyance, or other formality other than that appointment. The rights of the
Administrative Agent and the Lenders under this Guaranty may be transferred with any assignment of
the obligations hereby guaranteed pursuant to and in accordance with the terms of the Second
Amended and Restated Credit Agreement. The Second Amended and Restated Credit Agreement contains
provisions governing assignments of the obligations guaranteed under this Guaranty.

     SECTION 4.4 Amendments, etc. No amendment to or waiver of any provision of this
Guaranty, nor consent to any departure by any Guarantor herefrom, shall in any event be effective
unless the same shall be in writing and signed by or on behalf of the party against whom it is
sought to be enforced and is in conformity with the requirements of Section 10.01 of the Second
Amended and Restated Credit Agreement. Each such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

     SECTION 4.5 Addresses for Notices to the Guarantors. All notices and other
communications hereunder to the Guarantors shall be in writing and mailed or delivered to it,
addressed to it at the address set forth below or at such other address as shall be designated by
the Guarantors in a written notice to the Administrative Agent at the address specified in the
Second Amended and Restated Credit Agreement complying as to delivery with the terms of this
Section. All such notices and other communications shall, when mailed, be effective when deposited
in the mail, addressed as aforesaid. Address for notices:

5075 Westheimer, Suite 890
Houston, Texas 77056

Attn: General Counsel
Facsimile: (713) 369-0555
Telephone: (713) 369-0550

     SECTION 4.6 No Waiver; Remedies. In addition to, and not in limitation of, Section 2.3
and Section 2.5, no failure on the part of any Lender or any holder of a Note to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

     SECTION 4.7 Section Captions. Section captions used in this Guaranty are for
convenience of reference only, and shall not affect the construction of this Guaranty.

8

 

     SECTION 4.8 Setoff. In addition to, and not in limitation of, any rights of any Lender
or any holder of a Note under applicable law, upon the occurrence of an Event of Default under or
as defined in the Second Amended and Restated Credit Agreement, each Lender and each such holder
shall be entitled to exercise (for the benefit of all Lenders pursuant to Section 10.09 of the
Second Amended and Restated Credit Agreement) any right of offset or banker’s lien against each and
every account and other property or interest that a Guarantor may now or hereafter have with, or
which is now or hereafter in the possession of, any such Lender, to the extent of the full amount of the Obligations.

     SECTION 4.9 Severability. Wherever possible each provision of this Guaranty shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Guaranty shall be prohibited by or invalid under such law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Guaranty.

     SECTION 4.10 Governing Law. THIS GUARANTY SHALL BE DEEMED TO BE A CONTRACT UNDER AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF TEXAS AND APPLICABLE FEDERAL LAW. THIS GUARANTY AND
THE OTHER LOAN DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT
TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT THERETO.

     SECTION 4.11 Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS GUARANTY, OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE LENDERS OR THE
GUARANTORS MAY BE BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE OF TEXAS OR IN THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS. EACH GUARANTOR HEREBY EXPRESSLY AND
IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF TEXAS AND OF THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS FOR THE PURPOSE OF ANY SUCH
LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY
IN CONNECTION WITH SUCH LITIGATION. EACH GUARANTOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF
PROCESS BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF TEXAS. EACH GUARANTOR HEREBY EXPRESSLY
AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR
HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED
TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 

     SECTION 4.12 Waiver of Jury Trial. EACH GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS GUARANTY, OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE LENDERS OR THE
GUARANTORS. EACH GUARANTOR ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT
CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A MATERIAL 

9

 

INDUCEMENT FOR THE LENDERS ENTERING INTO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT.

     SECTION 4.13 Entire Agreement. THIS GUARANTY AND THE OTHER LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

10

 

     IN WITNESS WHEREOF, each Guarantor below has caused this Guaranty to be duly executed and
delivered by an officer duly authorized as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	AirComp L.L.C.	 	 	 	Allis-Chalmers GP, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Victor M. Perez
	 	 	 	By:
	 	/s/ Victor M. Perez	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Victor M. Perez
	 	 	 	 	 	Victor M. Perez	 	 
	 

	 	Chief Financial Officer
	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Allis-Chalmers LP, LLC	 	 	 	Allis-Chalmers Management, LP	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Victor M. Perez
 
 Victor
M. Perez
	 	 	 	By:
	 	Allis-Chalmers GP, LLC

its general partner	 	 
	 

	 	Chief Financial Officer	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Victor M. Perez
 

Victor M. Perez
	 	 
	 

	 	 	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Allis-Chalmers Production Services, Inc.	 	 	 	Allis-Chalmers Rental Services, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Victor M. Perez
 

Victor M. Perez
	 	 	 	By:
	 	/s/ Victor M. Perez
 

Victor M. Perez
	 	 
	 

	 	Chief Financial Officer
	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Allis-Chalmers Tubular Services, Inc.	 	 	 	Mountain Compressed Air, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Victor M. Perez
 

Victor M. Perez
	 	 	 	By:
	 	/s/ Victor M. Perez
 

Victor M. Perez
	 	 
	 

	 	Chief Financial Officer
	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	OilQuip Rentals Inc.	 	 	 	Strata Directional Technology, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Victor M. Perez
 

Victor M. Perez
	 	 	 	By:
	 	/s/ Victor M. Perez
 

Victor M. Perez
	 	 
	 

	 	Chief Financial Officer
	 	 	 	 	 	Chief Financial Officer	 	 

Signature Page 1

 

SCHEDULE TO EXHIBIT 10.2

The agreement listed below has been omitted pursuant to Instruction 2 to Item 601 of Regulation S-K.

Guaranty, dated as of April 26, 2007, by Petro-Rentals, Inc., in favor of Royal Bank of Canada,
as administrative agent for the lenders thereto.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]