PATTERSON-UTI ENERGY, INC.

Exhibit 10.1

PATTERSON-UTI ENERGY, INC.

$300,000,000 4.97% Series A Senior Notes due October 5, 2020

NOTE PURCHASE AGREEMENT

Dated October 5, 2010

TABLE OF CONTENTS

		Page
1. AUTHORIZATION OF NOTES; GUARANTY AGREEMENT			1
1.1. Authorization of Issue of Notes			1
1.2. Guaranty Agreement			1
2. SALE AND PURCHASE OF NOTES			1
3. CLOSING			2
4. CONDITIONS TO CLOSING			2
4.1. Representations and Warranties			2
4.2. Performance; No Default			2
4.3. Compliance Certificates			3
4.4. Opinions of Counsel			3
4.5. Guaranty Agreement			3
4.6. Purchase Permitted By Applicable Law, Etc.			3
4.7. Sale of Other Notes			4
4.8. Payment of Special Counsel Fees			4
4.9. Private Placement Number			4
4.10. Changes in Corporate Structure			4
4.11. Funding Instructions			4
4.12. Credit Agreement			4
4.13. Acquisition			4
4.14. Proceedings and Documents			5
5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY			5
5.1. Organization; Power and Authority			5
5.2. Authorization, Etc.			5
5.3. Disclosure			5
5.4. Organization and Ownership of Shares of Subsidiaries; Affiliates			6
5.5. Financial Statements; Material Liabilities			6
5.6. Compliance with Laws, Other Instruments, Etc.			7
5.7. Governmental Authorizations, Etc.			7
5.8. Litigation; Observance of Agreements, Statutes and Orders			7
5.9. Taxes			8
5.10. Title to Property; Leases			8
5.11. Licenses, Permits, Etc.			8
5.12. Compliance with ERISA			8
5.13. Private Offering by the Company			9
5.14. Use of Proceeds; Margin Regulations			10
5.15. Existing Indebtedness; Future Liens			10
5.16. Foreign Assets Control Regulations, Etc.			10
5.17. Status under Certain Statutes			11

TABLE OF CONTENTS
(continued)

		Page
5.18. Environmental Matters			12
5.19. Ranking of Obligations			12
6. REPRESENTATIONS OF THE PURCHASERS			13
6.1. Purchase for Investment			13
6.2. Source of Funds			13
7. INFORMATION AS TO COMPANY			14
7.1. Financial and Business Information			14
7.2. Officer’s Certificate			17
7.3. Visitation			18
7.4. Limitation on Disclosure Obligation			18
8. PAYMENT AND PREPAYMENT OF THE NOTES			18
8.1. Maturity			19
8.2. Optional Prepayments with Make-Whole Amount			19
8.3. Allocation of Partial Prepayments			19
8.4. Maturity; Surrender, Etc.			19
8.5. Purchase of Notes			19
8.6. Make-Whole Amount			20
8.7. Prepayment of Notes Upon Change of Control			21
8.8. Prepayment in Connection with a Disposition			23
9. AFFIRMATIVE COVENANTS			24
9.1. Compliance with Law			24
9.2. Insurance			24
9.3. Maintenance of Properties			24
9.4. Payment of Taxes			24
9.5. Corporate Existence, Etc.			25
9.6. Books and Records			25
9.7. Ranking of Obligations			25
9.8. Additional Guarantors			25
10. NEGATIVE COVENANTS			27
10.1. Transactions with Affiliates			27
10.2. Merger, Consolidation, Etc.			27
10.3. Line of Business			28
10.4. Terrorism Sanctions Regulations			28
10.5. Liens			28
10.6. Sale of Assets			29
10.7. Priority Debt			30

TABLE OF CONTENTS
(continued)

		Page
10.8. Financial Covenants			31
11. EVENTS OF DEFAULT			31
12. REMEDIES ON DEFAULT, ETC.			33
12.1. Acceleration			33
12.2. Other Remedies			34
12.3. Rescission			34
12.4. No Waivers or Election of Remedies, Expenses, Etc.			34
13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES			35
13.1. Registration of Notes			35
13.2. Transfer and Exchange of Notes			35
13.3. Replacement of Notes			35
14. PAYMENTS ON NOTES			36
14.1. Place of Payment			36
14.2. Home Office Payment			36
15. EXPENSES, ETC.			37
15.1. Transaction Expenses			37
15.2. Survival			37
16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT			37
17. AMENDMENT AND WAIVER			38
17.1. Requirements			38
17.2. Solicitation of Holders of Notes			38
17.3. Binding Effect, etc.			38
17.4. Notes Held by Company, etc.			39
18. NOTICES			39
19. REPRODUCTION OF DOCUMENTS			39
20. CONFIDENTIAL INFORMATION			40
21. SUBSTITUTION OF PURCHASER			41
22. MISCELLANEOUS			41
22.1. Successors and Assigns			41

TABLE OF CONTENTS
(continued)

		Page
22.2. Payments Due on Non-Business Days			41
22.3. Accounting Terms			41
22.4. Severability			42
22.5. Construction, etc.			42
22.6. Counterparts			42
22.7. Governing Law			42
22.8. Jurisdiction and Process; Waiver of Jury Trial			42

Schedule A		—		Information Relating to Purchasers
Schedule B		—		Defined Terms
Schedule 5.3		—		Disclosure Materials
Schedule 5.4		—		Subsidiaries of the Company and Ownership of Subsidiary Stock
Schedule 5.5		—		Financial Statements
Schedule 5.15		—		Existing Indebtedness
Schedule 10.5		—		Existing Liens
Exhibit 1.1		—		Form of 4.97% Series A Senior Note due October 5, 2020
Exhibit 1.2		—		Form of Guaranty Agreement
Exhibit 4.4(a)		—		Form of Opinion of Special Counsel for the Credit Parties
Exhibit 4.4(b)		—		Form of Opinion of Special Counsel for the Purchasers

Patterson-UTI Energy, Inc.
450 Gears Road
Suite 500
Houston, Texas 77067

$300,000,000 4.97% Series A Senior Notes due October 5, 2020

October 5, 2010

To Each of The Purchasers Listed in
Schedule A Hereto:

Ladies and Gentlemen:

     Patterson-UTI Energy, Inc., a Delaware corporation (the “Company”), agrees with each of the purchasers whose names appear at the end hereof (each, a “Purchaser” and, collectively, the “Purchasers”) as follows:

1. AUTHORIZATION OF NOTES; GUARANTY AGREEMENT.

     1.1. Authorization of Issue of Notes. The Company will authorize the issue and sale of $300,000,000 aggregate principal amount of its 4.97% Series A Senior Notes due October 5, 2020 (the “Notes”, such term to include any such notes issued in substitution therefor pursuant to Section 13). The Notes shall be substantially in the form set out in Exhibit 1.1. Certain capitalized and other terms used in this Agreement are defined in Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.

     1.2. Guaranty Agreement. The payment of the principal of, interest on, and Make-Whole Amounts, if any, with respect to the Notes and other obligations of the Company under this Agreement shall be guaranteed by certain Subsidiaries pursuant to a guaranty agreement (as amended, restated, supplemented or otherwise modified from time to time, the “Guaranty Agreement”) substantially in the form of Exhibit 1.2 hereto.

2. SALE AND PURCHASE OF NOTES.

     Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase from the Company, at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount thereof. The Purchasers’ obligations hereunder are several and not joint obligations and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder.

3. CLOSING.

     The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Bingham McCutchen LLP, One State Street, Hartford, CT 06103, at 10:00 a.m., local time, at a closing (the “Closing”) on October 5, 2010. At the Closing the Company will deliver to each Purchaser the Notes to be purchased by such Purchaser in the form of a single Note (or such greater number of Notes in denominations of at least $100,000 as such Purchaser may request) dated the date of the Closing and registered in such Purchaser’s name (or in the name of its nominee), against delivery by such Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to account number 4121996094 at Wells Fargo Bank, N.A., 1000 Louisiana Street, 9th Floor, Houston, Texas 77002, ABA number 121000248, Account Name: Patterson-UTI Management Services LLC. If at the Closing the Company shall fail to tender such Notes to any Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure or such nonfulfillment.

4. CONDITIONS TO CLOSING.

     Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the Closing, of the following conditions:

     4.1. Representations and Warranties.

     The representations and warranties of the Company in this Agreement and of the Credit Parties in the other Financing Documents shall be correct when made and at the time of the Closing.

     4.2. Performance; No Default.

     The Company shall have performed and complied with all agreements and conditions contained in this Agreement, and the Credit Parties shall have performed and complied with all agreements and conditions contained in the other Financing Documents, in each case as required to be performed or complied with by it or such Credit Party, as the case may be, prior to or at the Closing and immediately after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Section 5.14) no Default or Event of Default shall have occurred and be continuing. Neither the Company nor any Subsidiary shall have entered into any transaction since the date of the Memorandum that would have been prohibited by Sections 10.1 through and including 10.6 had such Sections applied since such date.

     4.3. Compliance Certificates.

     (a) Officer’s Certificate. The Company shall have delivered to such Purchaser an Officer’s Certificate, dated the date of the Closing, certifying that the conditions specified in Sections 4.1, 4.2 and 4.10 have been fulfilled.

     (b) Secretary’s Certificate. Each Credit Party shall have delivered to such Purchaser a certificate of such Credit Party’s Secretary, an Assistant Secretary or other appropriate person, dated the date of Closing, (i) attaching certified copies of the articles or certificate of incorporation (or similar charter documents) and by-laws, operating agreement or partnership agreement, as applicable, of such Credit Party, (ii) certifying as to the resolutions attached thereto and other corporate or equivalent proceedings relating to the authorization, execution and delivery of the Financing Documents to which such Credit Party is a party and (iii) certifying the names and true signatures of the officers of such Credit Party authorized to sign the Financing Documents to which such Credit Party is a party.

     4.4. Opinions of Counsel.

     Such Purchaser shall have received opinions in form and substance satisfactory to such Purchaser, dated the date of the Closing (a) from Fulbright & Jaworski L.L.P., counsel for the Credit Parties, covering the matters set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably request (and the Company hereby instructs its counsel to deliver such opinion to the Purchasers) and (b) from Bingham McCutchen LLP, the Purchasers’ special counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(b) and covering such other matters incident to such transactions as such Purchaser may reasonably request.

     4.5. Guaranty Agreement.

     Each Subsidiary Guarantor shall have duly executed and delivered to the Purchasers the Guaranty Agreement and such Guaranty Agreement shall be in full force and effect.

     4.6. Purchase Permitted By Applicable Law, Etc.

     On the date of the Closing such Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof. If requested by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted.

     4.7. Sale of Other Notes.

     Contemporaneously with the Closing the Company shall sell to each other Purchaser and each other Purchaser shall purchase the Notes to be purchased by it at the Closing as specified in Schedule A.

     4.8. Payment of Special Counsel Fees.

     Without limiting the provisions of Section 15.1, the Company shall have paid on or before the Closing the reasonable fees, charges and disbursements of the Purchasers’ special counsel referred to in Section 4.4 to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing.

     4.9. Private Placement Number.

     A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for the Notes.

     4.10. Changes in Corporate Structure.

     Excluding the Key Acquisition, neither the Company, nor any Subsidiary Guarantor, shall have changed its jurisdiction of incorporation or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5.

     4.11. Funding Instructions.

     At least three Business Days prior to the date of the Closing, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3 including (a) the name and address of the transferee bank, (b) such transferee bank’s ABA number and (c) the account name and number into which the purchase price for the Notes is to be deposited.

     4.12. Credit Agreement.

     The 2010 Bank Credit Agreement shall have been executed and delivered and the Company shall have satisfied the conditions precedent to the making of the initial Loans (as defined in the 2010 Bank Credit Agreement) other than the effectiveness of this Agreement. Each Purchaser shall have received a true and complete copy of the 2010 Bank Credit Agreement.

     4.13. Acquisition.

     The Purchasers shall have been provided evidence that pursuant to and in accordance with the terms of the Key Purchase and Sale Agreement, the Company or one or more of its Affiliates shall have acquired substantially all of the pressure pumping and wireline assets from certain Subsidiaries of Key Energy Services, Inc. (such transaction, the “Key Acquisition”).

     4.14. Proceedings and Documents.

     All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be reasonably satisfactory to such Purchaser and its special counsel, and such Purchaser and its special counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such special counsel may reasonably request.

5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.^,

     The Company represents and warrants to each Purchaser that:

     5.1. Organization; Power and Authority.

     The Company is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement and the Notes and to perform its obligations hereunder and thereunder.

     5.2. Authorization, Etc.

     Each of the Financing Documents to which the Company and each Subsidiary Guarantor is a party has been duly authorized by all necessary corporate or equivalent action on the part of the Company or such Subsidiary Guarantor, as the case may be, and constitutes, or, in the case of each Financing Document other than this Agreement, upon execution and delivery thereof will constitute, a legal, valid and binding obligation of the Company or such Subsidiary Guarantor, as the case may be, enforceable against the Company or such Subsidiary Guarantor in accordance with its terms, except as such enforceability may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and fraudulent conveyance laws or other similar laws affecting the enforcement of creditors’ rights generally and (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

     5.3. Disclosure.

     The Company has delivered to its agent, Wells Fargo Securities, LLC, for delivery to each Purchaser a copy of a Private Placement Memorandum, dated July 2010 (the “Memorandum”), relating to the transactions contemplated hereby. The Memorandum fairly describes, in all material respects, the general nature of the business and principal properties of the Company and its Subsidiaries. This Agreement, the Memorandum and the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company in connection with the transactions contemplated hereby and identified in Schedule 5.3, and the financial statements listed in Schedule 5.5 (this Agreement, the Memorandum and such

documents, certificates or other writings and such financial statements delivered to each Purchaser prior to August 12, 2010 being referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. Except as disclosed in the Disclosure Documents, since December 31, 2009, there has been no change in the financial condition, operations, business or properties of the Company or any Subsidiary except changes that individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect.

     5.4. Organization and Ownership of Shares of Subsidiaries; Affiliates.

     (a) Schedule 5.4 contains (except as noted therein) complete and correct lists (i) of the Company’s Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, and the percentage of and each class of its Equity Interests outstanding owned by the Company and each other Subsidiary, (ii) of Persons known to the Company as the Company’s Affiliates, other than Subsidiaries, and (iii) of the Company’s directors and senior officers.

     (b) All of the outstanding Equity Interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 5.4).

     (c) Each Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each such Subsidiary has the corporate or equivalent power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact, and in the case of the Subsidiary Guarantors, to execute and deliver the Guaranty Agreement and to perform the provisions thereof.

     (d) No Subsidiary is a party to, or otherwise subject to any legal, regulatory, contractual or other restriction (other than the agreements listed on Schedule 5.4 and customary limitations imposed by corporate law or similar statutes) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the Company or any of its Subsidiaries that owns outstanding Equity Interests of such Subsidiary.

     5.5. Financial Statements; Material Liabilities.

     The Company has delivered to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on Schedule 5.5. All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects the

consolidated financial position of the Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). The Company and its Subsidiaries do not have any Material liabilities that are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents.

     5.6. Compliance with Laws, Other Instruments, Etc.

     The execution, delivery and performance by the Company and the Subsidiary Guarantors of the Financing Documents to which each is a party will not (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, or any other Material agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (c) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary.

     5.7. Governmental Authorizations, Etc.

     No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required to be obtained or made by the Company or any Subsidiary Guarantor pursuant to any law or regulation applicable to the Company or any Subsidiary Guarantor, as the case may be, as a condition to the execution, delivery or performance by the Company or any Subsidiary Guarantor of the Financing Documents to which it is a party.

     5.8. Litigation; Observance of Agreements, Statutes and Orders.

     (a) There are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary or any property of the Company or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

     (b) Neither the Company nor any Subsidiary is in default under any term of any agreement or instrument to which it is a party or by which it is bound, or any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including without limitation Environmental Laws and any of the laws and regulations referred to in Section 5.16), of any Governmental Authority, which default or violation, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

     5.9. Taxes.

     The Company and its Subsidiaries (a) have filed all tax returns that are required to have been filed in any jurisdiction, and (b) have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which is not individually or in the aggregate Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP. The Company has not received any written notice from any Governmental Authority proposing any other tax or assessment against the Company or any of its Subsidiaries which, if made, could reasonably be expected to have a Material Adverse Effect. The Federal income tax liabilities of the Company and its Subsidiaries have been finally determined (whether by reason of completed audits or the statute of limitations having run) for all fiscal years up to and including the fiscal year ended December 31, 2006.

     5.10. Title to Property; Leases.

     The Company and its Subsidiaries have good and sufficient title to their respective properties that individually or in the aggregate are Material, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement. All leases to which the Company or any Subsidiary is a party and in which it is a lessee which, individually or in the aggregate, are Material are valid and subsisting leasehold interests of the Company and its Subsidiaries, as the case may be, in all material respects.

     5.11. Licenses, Permits, Etc.

     The Company and its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known conflict with the rights of others, except for those conflicts that, individually or in the aggregate, would not have Material Adverse Effect.

     5.12. Compliance with ERISA.

     (a) The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that could reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any

ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to section 430 or 436 of the Code or section 4068 of ERISA, other than such liabilities or Liens as would not be individually or in the aggregate Material.

     (b) The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans), determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities by more than $20,000,000 in the case of any single Plan and by more than $20,000,000 in the aggregate for all Plans. The term “benefit liabilities” has the meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the meaning specified in section 3 of ERISA.

     (c) The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material.

     (d) The expected postretirement benefit obligation (determined as of the last day of the Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Accounting Standards Codification 715-60, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Company and its Subsidiaries is not Material.

     (e) The execution and delivery of this Agreement and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by the Company to each Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of such Purchaser’s representation in Section 6.2 as to the sources of the funds used to pay the purchase price of the Notes to be purchased by such Purchaser.

     5.13. Private Offering by the Company.

     Neither the Company nor anyone acting on its behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any person other than the Purchasers and not more than 65 other Institutional Investors (as defined in clause (c) to the definition of such term), each of which has been offered the Notes at a private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

     5.14. Use of Proceeds; Margin Regulations.

     The Company will apply the proceeds of the sale of the Notes to pay or refinance part of the costs of the Key Acquisition and for general corporate purposes. No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not constitute more than 5% of the value of the consolidated assets of the Company and its Subsidiaries and the Company does not have any present intention that margin stock will constitute more than 5% of the value of such assets. As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U.

     5.15. Existing Indebtedness; Future Liens

     (a) Except as described therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Indebtedness of the Company and its Subsidiaries as of October 4, 2010 (including a description of the obligors and obligees, principal amount outstanding and collateral therefor, if any, and Guarantee thereof, if any), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company or its Subsidiaries. Neither the Company nor any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Company or such Subsidiary and no event or condition exists with respect to any Indebtedness of the Company or any Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

     (b) Except as disclosed in Schedule 5.15, neither the Company nor any Subsidiary has agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by Section 10.5.

     (c) Neither the Company nor any Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company or such Subsidiary, any agreement relating thereto or any other agreement (including, but not limited to, its charter or other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, except as specifically indicated in Schedule 5.15.

     5.16. Foreign Assets Control Regulations, Etc.

     (a) Neither the Company nor any Affiliated Entity is (i) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by

the Office of Foreign Assets Control, U.S. Department of Treasury (“OFAC”) (an “OFAC Listed Person”) or (ii) a department, agency or instrumentality of, or is otherwise controlled by or acting on behalf of, directly or indirectly, (A) any OFAC Listed Person or (B) the government of a country subject to comprehensive U.S. economic sanctions administered by OFAC, currently Iran, Sudan, Cuba and Syria (each OFAC Listed Person and each other entity described in clause (ii), a “Blocked Person”).

     (b) No part of the proceeds from the sale of the Notes hereunder constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used, directly by the Company or indirectly through any Affiliated Entity, in connection with any investment in, or any transactions or dealings with, any Blocked Person.

     (c) To the Company’s actual knowledge after making due inquiry, neither the Company nor any Affiliated Entity (i) is under investigation by any Governmental Authority for, or has been charged with, or convicted of, money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes under any applicable law (collectively, “Anti-Money Laundering Laws”), (ii) has been assessed civil penalties under any Anti-Money Laundering Laws or (iii) has had any of its funds seized or forfeited in an action under any Anti-Money Laundering Laws. The Company has taken reasonable measures appropriate to the circumstances (in any event as required by applicable law), to ensure that the Company and each Affiliated Entity is and will continue to be in compliance with all applicable current and future Anti-Money Laundering Laws.

     (d) No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for any improper payments to any (i) governmental official, employee, agent or representative, (ii) political party, or official, employee, agent or representative of a political party, (iii) candidate for political office, (iv) official, employee, agent or representative of any public international organization, (v) any entity affiliated with a government, governmental official, employee, agent or representative, political party, candidate for political office or public international organization, or (vi) anyone else acting in an official capacity, in any case for the purpose of influencing an act or decision made in an official capacity, or inducing the use of influence in order to obtain or retain or business or any business advantage or to direct business to any other Person. The Company has taken reasonable measures appropriate to the circumstances (in any event as required by applicable law), to ensure that the Company and each Affiliated Entity is and will continue to be in compliance with all applicable current and future anti-corruption laws and regulations.

     5.17. Status under Certain Statutes.

     (a) Neither the Company nor any Subsidiary is (i) subject to regulation under the Investment Company Act of 1940, as amended, or (ii) in violation of any of the laws and regulations referred to in Section 5.16.

     (b) Neither the Company nor any Subsidiary is a “public utility,” as that term is defined under the Federal Power Act, as amended, and the regulations publicly

promulgated thereunder (collectively, the “FPA”) by the Federal Energy Regulatory Commission (“FERC”). The execution and delivery of each of the Financing Documents to which the Company or any Subsidiary Guarantor is a party does not require the approval or authorization of the FERC under the FPA. Following the consummation of the transactions contemplated by the Financing Documents, solely as a result of the execution and delivery hereof and thereof, no Purchaser or holder of Notes shall be subject to regulation as a “public utility” or as an “affiliate” thereof under the FPA.

     5.18. Environmental Matters.

     (a) Neither the Company nor any Subsidiary has knowledge of any claim or has received any notice of any claim, and no proceeding has been instituted raising any claim against the Company or any of its Subsidiaries or any of their respective real properties now or formerly owned, leased or operated by any of them or other assets, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect.

     (b) Neither the Company nor any Subsidiary has knowledge of any facts which would give rise to any claim, public or private, of violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets or their use, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect.

     (c) Neither the Company nor any Subsidiary has stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them and has not disposed of any Hazardous Materials in a manner contrary to any Environmental Laws in each case in any manner that could reasonably be expected to result in a Material Adverse Effect.

     (d) All buildings on all real properties now owned, leased or operated by the Company or any Subsidiary are in compliance with applicable Environmental Laws, except where failure to comply could not reasonably be expected to result in a Material Adverse Effect.

     5.19. Ranking of Obligations.

     (a) The Company’s payment obligations under this Agreement and the Notes will, upon issuance of the Notes, rank at least pari passu in right of payment, without preference of priority in respect to such right of payment, with all other unsecured and unsubordinated Indebtedness of the Company.

     (b) Each Subsidiary Guarantor’s payment obligations under the Guaranty Agreement will, upon issuance of the Notes, rank at least pari passu in right of payment, without preference of priority in respect to such right of payment, with all other unsecured and unsubordinated Indebtedness of such Subsidiary Guarantor.

6. REPRESENTATIONS OF THE PURCHASERS.

     6.1. Purchase for Investment.

     Each Purchaser severally represents that it is purchasing the Notes for its own account or for one or more separate accounts maintained by such Purchaser or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of such Purchaser’s or their property shall at all times be within such Purchaser’s or their control. Each Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes. Each Purchaser severally represents that it is an “accredited investor” within the meaning of subparagraph (a)(1), (2), (3) or (7) of Rule 501 of Regulation D under the Securities Act.

     6.2. Source of Funds.

     Each Purchaser severally represents that at least one of the following statements is an accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser hereunder:

     (a) the Source is an “insurance company general account” (as the term is defined in the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the National Association of Insurance Commissioners (the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or

     (b) the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or

     (c) the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained

by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or

     (d) the Source constitutes assets of an “investment fund” (within the meaning of Part V of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s assets that are included in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, exceed 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM (applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such QPAM and (ii) the names of all employee benefit plans whose assets are included in such investment fund have been disclosed to the Company in writing pursuant to this clause (d); or

     (e) the Source constitutes assets of a “plan(s)” (within the meaning of Section IV of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of “control” in Section IV(d) of the INHAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or

     (f) the Source is a governmental plan; or

     (g) the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Company in writing pursuant to this clause (g); or

     (h) the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA.

As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,” and “separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA.

7. INFORMATION AS TO COMPANY.^,

     7.1. Financial and Business Information.

     The Company shall deliver to each holder of Notes that is an Institutional Investor:

     (a) Quarterly Statements — within 45 days (or such shorter period as is 15 days greater than the period applicable to the filing of the Company’s Quarterly Report on Form 10-Q (the “Form 10-Q”) with the SEC regardless of whether the Company is subject to the filing requirements thereof) after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of,

     (i) a consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and

     (ii) consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter,

setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments, provided that delivery within the time period specified above of copies of the Company’s Form 10-Q prepared in compliance with the requirements therefor and filed with the SEC shall be deemed to satisfy the requirements of this Section 7.1(a), provided, further, that the Company shall be deemed to have made such delivery of such Form 10-Q if it shall have timely made such Form 10-Q available on “EDGAR” and on its applicable website page as linked from its home page on the worldwide web (at the date of this Agreement located at: http//www.patenergy.com) and shall have given each Purchaser prior notice of such availability on EDGAR and through its home page in connection with each delivery (such availability and notice thereof being referred to as “Electronic Delivery”);

     (b) Annual Statements — within 90 days (or such shorter period as is 15 days greater than the period applicable to the filing of the Company’s Annual Report on Form 10-K (the “Form 10-K”) with the SEC regardless of whether the Company is subject to the filing requirements thereof) after the end of each fiscal year of the Company, duplicate copies of

     (i) a consolidated balance sheet of the Company and its Subsidiaries as at the end of such year, and

     (ii) consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries for such year,

setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by

     (A) an opinion thereon of independent public accountants of recognized national standing, which opinion shall state that such financial

statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, and

     (B) a certificate of such accountants stating whether, in making their audit, no knowledge was obtained of any Default, and, if any Default shall exist, stating the nature and status of such event,

provided that the delivery within the time period specified above of the Company’s Form 10-K for such fiscal year (together with the Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in accordance with the requirements therefor and filed with the SEC, together with the accountant’s certificate described in clause (B) above (the “Accountant’s Certificate”), shall be deemed to satisfy the requirements of this Section 7.1(b), provided, further, that the Company shall be deemed to have made such delivery of such Form 10-K if it shall have timely made Electronic Delivery thereof, in which event the Company shall separately deliver, concurrently with such Electronic Delivery, the Accountant’s Certificate;

     (c) SEC and Other Reports — promptly upon their becoming available, one copy of (i) each financial statement, report, notice or proxy statement sent by the Company or any Subsidiary to its public securities holders generally, and (ii) each regular or periodic report, each registration statement (without exhibits except as expressly requested by such holder), and each prospectus and all amendments thereto filed by the Company or any Subsidiary with the SEC, provided that the Company shall be deemed to have made such delivery of the items provided for by this clause (c) if it shall have timely made Electronic Delivery (without regard to the notice requirement provided in such defined term) thereof;

     (d) Notice of Default or Event of Default — promptly, and in any event within five Business Days after a Responsible Officer has knowledge of the existence of any Default or Event of Default, a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto;

     (e) ERISA Matters — promptly, and in any event within five Business Days after a Responsible Officer becoming aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto:

     (i) with respect to any Plan, any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof; or

     (ii) the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; or

     (iii) any event, transaction or condition that could result in the incurrence of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, could reasonably be expected to have a Material Adverse Effect; and

     (f) Requested Information — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries (including, but without limitation, actual copies of the Company’s Form 10-Q and Form 10-K) or relating to the ability of the Company to perform its obligations hereunder and under the Notes or the ability of any Guarantor to perform its obligations under the Guaranty Agreement as from time to time may be reasonably requested by any such holder of Notes.

     7.2. Officer’s Certificate.

     Each set of financial statements delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer setting forth (which, in the case of Electronic Delivery of any such financial statements, shall be by separate concurrent delivery of such certificate to each holder of Notes):

     (a) Covenant Compliance — the information (including detailed calculations) required in order to establish whether the Company was in compliance with the requirements of Section 10.6 through Section 10.8, inclusive, during the quarterly or annual period covered by the statements then being furnished (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence); and

     (b) Event of Default — a statement that such Senior Financial Officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including, without limitation, any such event or condition resulting from the

failure of the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.

     7.3. Visitation.

     The Company shall permit the representatives of each holder of Notes that is an Institutional Investor:

     (a) No Default — if no Default or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to the Company, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s officers, and (with the consent of the Company, which consent will not be unreasonably withheld) its independent public accountants, and (with the consent of the Company, which consent will not be unreasonably withheld) to visit the other offices and properties of the Company and each Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and

     (b) Default — if a Default or Event of Default then exists, at the expense of the Company to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be requested.

     7.4. Limitation on Disclosure Obligation.

     The Company shall not be required to disclose the following information pursuant to Sections 7.1(f) or 7.3:

     (a) information that, notwithstanding Section 20, the Company, after consultation with counsel, reasonably determines would be prohibited from disclosing by law or regulation and delivers written notice to the holders of Notes that it has so consulted counsel together with a description, in reasonable detail, of such prohibition;

     (b) information that the Company is prohibited from disclosing by the terms of an obligation of confidentiality contained in any agreement binding upon the Company and not entered into in contemplation of this clause (b); provided, that the Company shall make a good faith attempt to obtain consent from the party in whose favor the obligation of confidentiality was made to permit the disclosure of the relevant information; or

     (c) information that is subject to attorney-client privilege not made subject to such privilege in contemplation of this clause (c).

8. PAYMENT AND PREPAYMENT OF THE NOTES.

     8.1. Maturity.

     As provided therein, the entire unpaid principal balance of the Notes shall be due and payable on the stated maturity date thereof.

     8.2. Optional Prepayments with Make-Whole Amount.

     The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less than 5% of the aggregate principal amount of the Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Company will give each holder of Notes written notice of each optional prepayment under this Section 8.2 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the Notes to be prepaid on such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 8.3), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date.

     8.3. Allocation of Partial Prepayments.

     In the case of each partial prepayment of the Notes, pursuant to Section 8.2, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

     8.4. Maturity; Surrender, Etc.

     In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note.

     8.5. Purchase of Notes.

     The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes. The

Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment or prepayment of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes.

     8.6. Make-Whole Amount.

     “Make-Whole Amount” means, with respect to any Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount, the following terms have the following meanings:

     “Called Principal” means, with respect to any Note, the principal of such Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.

     “Discounted Value” means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

     “Reinvestment Yield” means, with respect to the Called Principal of any Note, 0.50% over the yield to maturity implied by (i) the yields reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.

     In the case of each determination under clause (i) or clause (ii), as the case may be, of the preceding paragraph, such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the most recently issued actively traded on the run U.S. Treasury security with the maturity closest to and greater than such Remaining Average Life and (2) the most recently issued actively traded on the run U.S. Treasury security with the maturity closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note.

     “Remaining Average Life” means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

     “Remaining Scheduled Payments” means, with respect to the Called Principal of any Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or Section 12.1.

     “Settlement Date” means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.

     8.7. Prepayment of Notes Upon Change of Control.

     (a) Notice of Change of Control or Control Event; Offer to Prepay if Change of Control Has Occurred. The Company will, within five Business Days after any Responsible Officer has knowledge of the occurrence of any Change of Control or Control Event, give notice of such Change of Control or Control Event to each holder of Notes. If a Change of Control has occurred, such notice shall contain and constitute an offer to prepay Notes as described in paragraph (c) of this Section 8.7 and shall be accompanied by the certificate described in paragraph (g) of this Section 8.7.

     (b) Condition to Company Action. The Company will not consummate a Change of Control unless (i) at least 15 Business Days prior to such consummation it shall have given to each holder of Notes written notice containing and constituting an offer to prepay Notes as described in paragraph (c) of this Section 8.7, accompanied by the certificate described in paragraph (g) of this Section 8.7, and (ii) contemporaneously with such consummation, it prepays all Notes required to be prepaid in accordance with this Section 8.7.

     (c) Offer to Prepay; Time for Payment. The offer to prepay Notes contemplated by paragraphs (a) and (b) of this Section 8.7 shall be an offer to prepay, in accordance with and subject to this Section 8.7, all, but not less than all, of the Notes held by each holder (in the case of this Section 8.7(c) only, “holder” in respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall mean such beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”). If such Proposed Prepayment Date is in connection with an offer contemplated by paragraph (a) of this Section 8.7, such date shall not be less than 30 days and not more

than 60 days after the date of such offer (if the Proposed Prepayment Date shall not be specified in the offer, the Proposed Prepayment Date shall be the 45th day after the date of such offer).

     (d) Acceptance; Rejection. A holder of Notes may accept the offer to prepay made pursuant to this Section 8.7 by causing a notice of such acceptance to be delivered to the Company at least five days prior to the Proposed Prepayment Date. A failure by a holder of Notes to respond to an offer to prepay made pursuant to this Section 8.7, or to accept an offer as to all of the Notes held by the holder, within such time period shall be deemed to constitute a rejection of such offer by such holder.

     (e) Prepayment. Prepayment of the Notes to be prepaid pursuant to this Section 8.7 shall be at 100% of the principal amount of such Notes, together with interest on such Notes accrued to the date of prepayment. On the Business Day preceding the date of prepayment, the Company shall deliver to each holder of Notes being prepaid a statement setting forth the details of the computation of such amount. The prepayment shall be made on the Proposed Prepayment Date except as provided in paragraph (f) of this Section 8.7.

     (f) Deferral Pending Change of Control. The obligation of the Company to prepay Notes pursuant to the offers required by paragraphs (a) and (b) and accepted in accordance with paragraph (d) of this Section 8.7 is subject to the occurrence of the Change of Control in respect of which such offers and acceptances shall have been made. In the event that such Change of Control does not occur on or prior to the Proposed Prepayment Date in respect thereof, the prepayment shall be deferred until and shall be made on the date on which such Change of Control occurs. The Company shall keep each holder of the Notes reasonably and timely informed of (i) any such deferral of the date of prepayment, (ii) the date on which such Change of Control and the prepayment are expected to occur, and (iii) any determination by the Company that efforts to effect such Change of Control have ceased or been abandoned (in which case the offers and acceptances made pursuant to this Section 8.7 in respect of such Change of Control shall be deemed rescinded). Notwithstanding the foregoing, in the event that the prepayment has not been made within 90 days after such Proposed Prepayment Date by virtue of the deferral provided for in this Section 8.7(f), the Company shall make a new offer to prepay in accordance with paragraph (c) of this Section 8.7.

     (g) Officer’s Certificate. Each offer to prepay the Notes pursuant to this Section 8.7 shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated the date of such offer, specifying: (i) the Proposed Prepayment Date, (ii) that such offer is made pursuant to this Section 8.7, (iii) that the entire principal amount of each Note is offered to be prepaid, (iv) the interest that would be due on each Note offered to be prepaid, accrued to the Proposed Prepayment Date, (v) that the conditions of this Section 8.7 required to be fulfilled prior to the giving of such notice have been fulfilled and (vi) in reasonable detail, the nature and date of the Change of Control.

     8.8. Prepayment in Connection with a Disposition.

     (a) Notice and Offer. In the event any Debt Prepayment Application is to be used to make an offer (a “Transfer Prepayment Offer”) to prepay Notes pursuant to Section 10.6 of this Agreement (a “Debt Prepayment Transfer”), the Company will give written notice of such Debt Prepayment Transfer to each holder of Notes. Such written notice shall contain, and such written notice shall constitute, an irrevocable offer to prepay, at the election of each holder, a portion of the Notes held by such holder equal to such holder’s Ratable Portion of the net proceeds in respect of such Debt Prepayment Transfer on a date specified in such notice (the “Transfer Prepayment Date”) that is not less than 30 days and not more than 60 days after the date of such notice, together with interest on the amount to be so prepaid accrued to the Transfer Prepayment Date. If the Transfer Prepayment Date shall not be specified in such notice, the Transfer Prepayment Date shall be the 30th day after the date of such notice.

     (b) Acceptance and Payment. To accept such Transfer Prepayment Offer, a holder of Notes shall cause a notice of such acceptance to be delivered to the Company at least five days prior to the Transfer Prepayment Date, provided, that failure to accept such offer in writing within such time period shall be deemed to constitute a rejection of the Transfer Prepayment Offer. If so accepted by any holder of a Note, such offered prepayment (equal to not less than such holder’s Ratable Portion of the net proceeds in respect of such Debt Prepayment Transfer) shall be due and payable on the Transfer Prepayment Date. Such offered prepayment shall be made at 100% of the principal amount of such Notes being so prepaid, together with interest on such principal amount then being prepaid accrued to the Transfer Prepayment Date determined as of the date of such prepayment.

     (c) Other Terms. Each offer to prepay the Notes pursuant to this Section 8.8 shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated the date of such offer, specifying (i) the Transfer Prepayment Date, (ii) the net proceeds in respect of the applicable Debt Prepayment Transfer, (iii) that such offer is being made pursuant to Section 8.8 and Section 10.6 of this Agreement, (iv) the principal amount of each Note offered to be prepaid, (v) the interest that would be due on each Note offered to be prepaid, accrued to the Transfer Prepayment Date and (vi) in reasonable detail, the nature of the Disposition giving rise to such Debt Prepayment Transfer and certifying that no Default or Event of Default exists or, immediately after giving effect to the prepayment contemplated by such offer, would exist.

     (d) Notice Concerning Status of Holders of Notes. Promptly after each Transfer Prepayment Date and the making of all prepayments contemplated on such Transfer Prepayment Date under this Section 8.8 (and, in any event, within 30 days thereafter), the Company shall deliver to each holder of Notes a certificate signed by a Senior Financial Officer of the Company containing a list of the then current holders of Notes (together with their addresses) and setting forth as to each such holder the outstanding principal amount of Notes held by such holder at such time.

9. AFFIRMATIVE COVENANTS.

     The Company covenants that so long as any of the Notes are outstanding:

     9.1. Compliance with Law.

     Without limiting Section 10.4, the Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, ERISA, Environmental Laws and the laws and regulations referred to in Section 5.16, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     9.2. Insurance.

     The Company will, and, if not maintained by the Company, will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.

     9.3. Maintenance of Properties.

     The Company will, and will cause each of its Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective Material properties in accordance with industry practices, provided that this Section shall not prevent the Company or any Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Company has concluded that such discontinuance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     9.4. Payment of Taxes.

     The Company will, and will cause each of its Subsidiaries to, (a) file all tax returns required to be filed in any jurisdiction and (b) pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent, provided that neither the Company nor any Subsidiary need pay any such tax, assessment, charge or levy if (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such

Subsidiary or (ii) the nonpayment of all such taxes, assessments, charges and levies in the aggregate could not reasonably be expected to have a Material Adverse Effect.

     9.5. Corporate Existence, Etc.

     Subject to Section 10.2, the Company will at all times preserve and keep in full force and effect its corporate existence. Subject to Sections 10.2 and 10.6, the Company will at all times preserve and keep in full force and effect the corporate existence of each of its Subsidiaries (unless merged into the Company or a Wholly-Owned Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate existence, right or franchise could not, individually or in the aggregate, have a Material Adverse Effect.

     9.6. Books and Records.

     The Company will, and will cause each of its Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Subsidiary, as the case may be.

     9.7. Ranking of Obligations.

     (a) The Company will ensure that its payment obligations under this Agreement and the Notes will at all times rank at least pari passu in right of payment, without preference or priority in respect to such right of payment, with all other unsecured unsubordinated Indebtedness of the Company.

     (b) The Company will ensure that each Subsidiary Guarantor’s payment obligations under the Guaranty Agreement will at all times rank at least pari passu in right of payment, without preference or priority in respect to such right of payment, with all other unsecured unsubordinated Indebtedness of such Subsidiary Guarantor.

     9.8. Additional Guarantors.

     (a) The Company will cause (i) each of its Domestic Subsidiaries (other than Immaterial Subsidiaries), whether newly formed, after acquired or otherwise existing, and (ii) each other entity that guarantees or becomes obligated with respect to the obligations of the Company or any Subsidiary under any Principal Credit Facility to promptly (and in any event within 10 days after such Domestic Subsidiary is formed or acquired or contemporaneously with such entity becoming a party to or obligated under a Principal Credit Facility, as applicable (or such longer period of time as agreed to by the Required Holders in their reasonable discretion)) become a Guarantor hereunder by way of execution of a Guarantor Supplement in the form of Exhibit A to the Guaranty Agreement (each a “Guaranty Joinder Agreement”). In connection with clause (a)(i) above, the Company shall give notice to each holder of Notes not less than 10 days prior to creating a Domestic Subsidiary (or such longer period of time as agreed to by the Required Holders in their reasonable discretion), or acquiring the Equity Interests of any such Person.

     (b) In connection clause (a) of this Section 9.8, the Company shall deliver to each holder of Notes, with respect to each new Guarantor to the extent applicable, proof of corporate or similar action, incumbency of officers, opinions of counsel and other documents as is consistent with those delivered by the Credit Parties pursuant to Section 4 on the date of Closing and such other documents or agreements as the Required Holders may reasonably request.

     (c) The holders of the Notes agree that any Guarantor shall be automatically released and discharged from its obligations under the Guaranty Agreement effective:

     (i) at the time a Subsidiary Guarantor ceases to be a Subsidiary of the Company after giving effect to a Disposition in accordance with Section 10.6 so long as no Default or Event of Default is then continuing, or

     (ii) at the time the obligations of a Guarantor, whether direct or indirect, as a co-borrower, guarantor or otherwise, of any Indebtedness of the Company or its Subsidiaries under all Principal Credit Facilities shall, at any time after the date of the Closing, be terminated by the holders of such Indebtedness so long as no Default or Event of Default is then continuing; provided, however, that such Guarantor shall not be released from its obligations as a Guarantor if in connection with the release of such Guarantor from its obligations with respect to the Indebtedness of the Company or any Subsidiary under any Principal Credit Facility, the Company, any Subsidiary or any other entity pays any consideration to the holders of such Indebtedness in consideration of such release, unless the holders of Notes are paid consideration on the same basis as such other holder for such release; and provided, further, that in the event any such Guarantor shall at any time after the release provided for in this clause (ii) of Section 9.8(c) become directly or indirectly liable for (whether by way of becoming a co-borrower, guarantor or otherwise), all or any part of the Indebtedness of the Company or its Subsidiaries under any Principal Credit Facility, the Company will cause such Guarantor contemporaneously with entering into any such Guarantee or incurring such liability to execute and deliver to the holders of the Notes, (A) a Guaranty Joinder Agreement, and (B) proof of corporate or similar action, incumbency of officers, opinions of counsel and other documents as is consistent with those delivered by the Credit Parties pursuant to Section 4 on the date of Closing and such other documents or agreements as the Required Holders may reasonably request.

     (d) In connection with the release contemplated by clause (c) of Section 9.8, and in each such instance, the holders of the Notes shall, within 30 days of receipt of a written request of the Company, take such action and execute such documents as the Company, such Subsidiary or entity shall reasonably request to evidence such release, discharge or termination of such Subsidiary’s or entity’s obligations under the Guaranty Agreement, all at the expense of the Company.

10. NEGATIVE COVENANTS.

     The Company covenants that so long as any of the Notes are outstanding:

     10.1. Transactions with Affiliates.

     The Company will not and will not permit any Subsidiary to enter into directly or indirectly any Material transaction or Material group of related transactions (including without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except in the ordinary course and pursuant to the reasonable requirements of the Company’s or such Subsidiary’s business and upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate.

     10.2. Merger, Consolidation, Etc.

     The Company will not and will not permit any Subsidiary Guarantor to consolidate with or merge with any other Person or convey, transfer, sell or lease (as lessor) all or substantially all of its assets in a single transaction or series of related transactions to any Person except that the Company or such Subsidiary Guarantor may consolidate or merge with any other Person or convey, transfer, sell or lease (as lessor) all or substantially all of its assets in a single transaction or series of related transactions to any Person, provided that:

     (a) the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer, sale or lease all or substantially all of the assets of the Company or such Subsidiary Guarantor as an entirety, as the case may be, shall be a solvent corporation, limited partnership or limited liability company organized and existing under the laws of the United States or any State thereof (including the District of Columbia), and, (i) if the Company or such Subsidiary Guarantor is not such successor or survivor or (ii) if the Company is not such successor or surviving corporation in any transaction with any Subsidiary Guarantor, such corporation, limited partnership or limited liability company (including, without limitation, any Subsidiary Guarantor which is the successor or surviving entity to the Company), shall have executed and delivered to each holder of any Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement the Notes, or the Guaranty Agreement, as applicable;

     (b) to the extent the Company is not the survivor of such transaction, each Subsidiary Guarantor shall have executed and delivered to each holder of Notes its reaffirmation of its obligations under the Guaranty Agreement in form and substance satisfactory to the Required Holders; and

     (c) immediately before and immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing.

No such conveyance, transfer, sale or lease of all or substantially all of the assets of the Company or such Subsidiary Guarantor shall have the effect of releasing the Company or such

Subsidiary Guarantor or any successor corporation, limited partnership or limited liability company that shall theretofore have become such in the manner prescribed in this Section 10.2 from its liability under this Agreement or the Notes, or the Guaranty Agreement, as applicable, except as permitted by clause (i) of Section 9.8(c).

     10.3. Line of Business.

     The Company will not and will not permit any Subsidiary to engage in any business if, as a result, the general nature of the business in which the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company and its Subsidiaries, taken as a whole, are engaged on the date of this Agreement as described in the Memorandum.

     10.4. Terrorism Sanctions Regulations.

     The Company will not and will not permit any Affiliated Entity to (a) become an OFAC Listed Person or (b) have any investments in, or engage in any dealings or transactions with, any Blocked Person.

     10.5. Liens.

     The Company will not, and will not permit any Subsidiary to, create, incur, assume or suffer to exist any Lien on its properties or assets, including capital stock, whether now owned or hereafter acquired, except:

     (a) Permitted Encumbrances;

     (b) Liens pursuant to the Financing Documents;

     (c) Liens existing on property or assets of the Company or any Subsidiary as of the date of this Agreement that are listed in Schedule 10.5;

     (d) any Lien existing on any property or asset prior to the acquisition thereof by the Company or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date of this Agreement prior to the time such Person becomes a Subsidiary; provided that (i) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien does not apply to any other property or assets of the Company or any Subsidiary and (iii) such Lien secures only those obligations that it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be;

     (e) Liens on fixed or capital assets (including assets acquired pursuant to capital expenditures) acquired, constructed, repaired or improved by the Company or any Subsidiary; provided that (i) such Liens and the Indebtedness secured thereby are incurred to acquire, construct, repair or improve such asset and are incurred prior to or within 90 days after such acquisition or the completion of such construction, repair or improvement, (ii) the Indebtedness secured thereby does not exceed the cost of acquiring,

constructing, repairing or improving such fixed or capital assets, and (iii) such Liens do not apply to any other property or assets of the Company or any Subsidiary;

     (f) any Lien renewing, extending or replacing any Lien permitted by paragraph (c), (d) or (e) of this Section 10.5, provided that (i) the principal amount Indebtedness so secured and then outstanding is not increased, (ii) the Lien is not extended to other property of the Company or such Subsidiary and (iii) immediately after such renewal, extension or replacement no Default or Event of Default would exist;

     (g) Liens securing Intercompany Indebtedness;

     (h) Liens securing judgments for the payment of money that individually or in the aggregate do not constitute an Event of Default under Section 11(i) or securing appeal or other surety bonds related to such judgments;

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

     (j) Liens securing Indebtedness not otherwise permitted by paragraphs (a) through (i) of this Section 10.5, provided that the outstanding principal amount of Priority Debt does not at any time exceed 20% of Consolidated Net Worth (determined as of the end of the most recently completed fiscal quarter for which financial statements have been provided); provided, further, notwithstanding the foregoing, that no Lien created pursuant this Section 10.5(j) shall secure Indebtedness owing under any Principal Credit Facility unless and until the Notes are equally and ratably secured by all property subject to such Lien, in each case pursuant to documentation reasonably satisfactory to the Required Holders.

     10.6. Sale of Assets.

     Except as permitted by Section 10.2, the Company will not, and will not permit any Subsidiary to, sell, lease, transfer or otherwise dispose of, including by way of merger (collectively a “Disposition”), any assets, in one or a series of transactions, to any Person, other than:

     (a) Dispositions of worthless, damaged or obsolete equipment (i) in the ordinary course of business or (ii) that the Company believes in its reasonable business judgment are no longer used or no longer useful in the business of the Company and its Subsidiaries;

     (b) Dispositions in the ordinary course of business, including the abandonment, relinquishment or farm-out of oil and gas leases, concessions or drilling or exploration rights or interests therein;

     (c) Dispositions (i) between and among Credit Parties, (ii) by a Subsidiary to the Company or a Subsidiary Guarantor, or (iii) between and among Subsidiaries that are not Subsidiary Guarantors;

     (d) Dispositions of cash and cash equivalents in the ordinary course of business;

     (e) Dispositions not otherwise permitted by paragraphs (a), (b), (c) or (d) of this Section 10.6 provided that:

     (i) in the good faith opinion of the Company, the Disposition is in exchange for consideration having a fair market value at least equal to that of the property subject to such Disposition and is in the best interest of the Company or such Subsidiary;

     (ii) after giving effect to such transaction, no Default or Event of Default shall exist; and

     (iii) immediately after giving effect to the Disposition, the aggregate net book value of all assets that were the subject of any Disposition pursuant to this Section 10.6(e) occurring in the then current fiscal year would not exceed 15% of Consolidated Total Assets (determined as of the end of the most recently completed fiscal quarter for which financial statements have been provided).

     Notwithstanding the foregoing, the Company may, or may permit a Subsidiary to, make a Disposition and the assets subject to such Disposition shall not be subject to or included in the foregoing limitation and computation contained in paragraph (e)(iii) of the preceding sentence if, within 365 days of such Disposition, an amount equal to the net proceeds from such Disposition is:

     (A) reinvested in productive assets to be used in the existing business of the Company or a Subsidiary, including, without limitation, reinvestments consisting of capital expenditures; or

     (B) the net proceeds from such Disposition are applied to a Debt Prepayment Application. Solely for the purposes of this clause (B), whether or not such offers are accepted by the holders, the entire principal amount of the Notes subject to a Debt Prepayment Application shall be deemed to have been prepaid.

     10.7. Priority Debt.

     The Company will not at any time permit the outstanding principal amount of Priority Debt to exceed 20% of Consolidated Net Worth (determined as of the end of the most recently completed fiscal quarter for which financial statements have been provided); provided, however,

no Subsidiary shall guaranty or otherwise become obligated in respect of any Principal Credit Facility unless such Subsidiary guaranties, or becomes similarly obligated in respect of, the Notes, in each case pursuant to documentation reasonably satisfactory to the Required Holders.

     10.8. Financial Covenants.

     (a) The Company will not permit the Debt to Capitalization Ratio, expressed as a percentage, to exceed 50% at any time.

     (b) The Company will not permit the Interest Coverage Ratio as of the last day of any fiscal quarter to be less than 2.50 to 1.00.

11.

EVENTS OF DEFAULT.

     An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing:

     (a) the Company defaults in the payment of any principal or Make-Whole Amount, if any, on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or

     (b) the Company defaults in the payment of any interest on any Note for more than five Business Days after the same becomes due and payable; or

     (c) the Company defaults in the performance of or compliance with any term contained in Section 7.1(d) or Section 10; or

     (d) the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in Sections 11(a), (b) and (c)) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this Section 11(d)); or

     (e) any representation or warranty made in writing by or on behalf of any Credit Party or by any officer of any Credit Party in any Financing Document or in any writing furnished in connection with the transactions contemplated hereby proves to have been false or incorrect in any material respect on the date as of which made; or

     (f) (i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Indebtedness that is outstanding in an aggregate principal amount of at least the Threshold Amount beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance with any term of any evidence of any Indebtedness in an aggregate outstanding principal amount of at least the Threshold Amount or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Indebtedness has become, or has been

declared (or one or more Persons are entitled to declare such Indebtedness to be), due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Indebtedness to convert such Indebtedness into Equity Interests), (x) the Company or any Subsidiary has become obligated to purchase or repay Indebtedness before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least the Threshold Amount, or (y) one or more Persons have the right to require the Company or any Subsidiary so to purchase or repay such Indebtedness, or (iv) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which the Company or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which the Company or any Subsidiary is an Affected Party (as so defined) and, in either event, the Swap Termination Value owed by the Company or such Subsidiary as a result thereof is greater than the Threshold Amount; or

     (g) the Company or any Subsidiary Guarantor (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or

     (h) a court or Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company or any Subsidiary Guarantor, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any Subsidiary Guarantor, or any such petition shall be filed against the Company or any Subsidiary Guarantor and such petition shall not be dismissed within 60 days; or

     (i) a final judgment or judgments for the payment of money aggregating in excess of the Threshold Amount (to the extent not covered by independent third-party insurance as to which the insurer has affirmed coverage in writing) are rendered against one or more of the Company and its Subsidiaries and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay; or

     (j) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or

extension of any amortization period is sought or granted under section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the aggregate “amount of unfunded benefit liabilities” (within the meaning of section 4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of ERISA, shall exceed the Threshold Amount, (iv) the Company or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (v) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or any Subsidiary establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that would increase the liability of the Company or any Subsidiary thereunder; and any such event or events described in clauses (i) through (vi) above, either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse Effect; or

     (k) (i) the Guaranty Agreement ceases to be in full force and effect or is declared to be null and void in whole or in material part by a court or other governmental or regulatory authority having jurisdiction or the validity or enforceability thereof shall be contested by the Company or any Guarantor or any of them renounces any of the same or denies that it has any or further liability thereunder or (ii) any Guarantor defaults in the performance of or compliance with any term contained in Section 1 or Section 5 of the Guaranty Agreement.

As used in Section 11(j), the terms “employee benefit plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such terms in section 3 of ERISA.

12. REMEDIES ON DEFAULT, ETC.

     12.1. Acceleration.

     (a) If an Event of Default with respect to the Company described in Section 11(g) or (h) (other than an Event of Default described in clause (i) of Section 11(g) or described in clause (vi) of Section 11(g) by virtue of the fact that such clause encompasses clause (i) of Section 11(g)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable.

     (b) If any other Event of Default has occurred and is continuing, the Required Holders may at any time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable.

     (c) If any Event of Default described in Section 11(a) or (b) has occurred and is continuing, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable.

     Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (i) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (ii) the Make-Whole Amount determined in respect of such principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived. The Company acknowledges, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances.

     12.2. Other Remedies.

     If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein, in any Note or in the Guaranty Agreement, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.

     12.3. Rescission.

     At any time after any Notes have been declared due and payable pursuant to Section 12.1(b) or (c), the Required Holders, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal of and Make-Whole Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 17, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon.

     12.4. No Waivers or Election of Remedies, Expenses, Etc.

     No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right, power or remedy conferred by this Agreement, the Guaranty Agreement or by any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under

Section 15, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this Section 12, including, without limitation, reasonable attorneys’ fees, expenses and disbursements.

13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

     13.1. Registration of Notes.

     The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register. Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary. The Company shall give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes.

     13.2. Transfer and Exchange of Notes.

     Upon surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)), subject to compliance with applicable securities laws, for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address and other information for notices of each transferee of such Note or part thereof), within ten Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of Exhibit 1.1. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than $100,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representations set forth in Section 6.2.

     13.3. Replacement of Notes.

     Upon receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of

an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and

     (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $50,000,000 or a Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or

     (b) in the case of mutilation, upon surrender and cancellation thereof,

within ten Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

14. PAYMENTS ON NOTES.

     14.1. Place of Payment.

     Subject to Section 14.2, payments of principal, Make-Whole Amount, if any, and interest becoming due and payable on the Notes shall be made in New York, New York at the office of Wells Fargo Bank, N.A. in such jurisdiction. The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the office of a bank or trust company in such jurisdiction.

     14.2. Home Office Payment.

     So long as any Purchaser or its nominee shall be the holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole Amount, if any, and interest by the method and at the address specified for such purpose below such Purchaser’s name in Schedule A, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 14.1. Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2. The Company will afford the benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Note as the Purchasers have made in this Section 14.2.

15. EXPENSES, ETC.

     15.1. Transaction Expenses.

     Whether or not the transactions contemplated hereby are consummated, the Company will pay all reasonable costs and expenses (including reasonable attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement, the Notes or the Guaranty Agreement (whether or not such amendment, waiver or consent becomes effective), including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement, the Notes or the Guaranty Agreement or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement, the Notes or the Guaranty Agreement, or by reason of being a holder of any Note, (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby, by the Notes and the Guaranty Agreement and (c) the costs and expenses incurred in connection with the initial filing of this Agreement and all related documents and financial information with the SVO provided, that such costs and expenses under this clause (c) shall not exceed $3,000. The Company will pay, and will save each Purchaser and each other holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the Notes).

     15.2. Survival.

     The obligations of the Company under this Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement, the Notes or the Guaranty Agreement, and the termination of this Agreement.

16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

     All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may, in good faith, be relied upon, as made on the date of Closing, by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser or any other holder of a Note. All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement made as of the date therein provided. Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.

17. AMENDMENT AND WAIVER.

     17.1. Requirements.

     This Agreement and the Notes may be amended, and the observance of any term hereof or thereof may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (a) no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing, and (b) no such amendment or waiver may, without the written consent of the holder of each Note at the time outstanding affected thereby, (i) subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest or of the Make-Whole Amount on, the Notes, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any such amendment or waiver, or (iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20.

     17.2. Solicitation of Holders of Notes.

     (a) Solicitation. The Company will provide each holder of the Notes (irrespective of the amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof, the Guaranty Agreement or of the Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 17 to each holder of outstanding Notes promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.

     (b) Payment. The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of Notes as consideration for or as an inducement to the entering into by any holder of Notes of any waiver or amendment of any of the terms and provisions hereof, of the Notes or of the Guaranty Agreement unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder of Notes then outstanding even if such holder did not consent to such waiver or amendment.

     17.3. Binding Effect, etc.

     Any amendment or waiver consented to as provided in this Section 17 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company and the holder of any Note nor

any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note. As used herein, the term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented.

     17.4. Notes Held by Company, etc.

     Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement, the Guaranty Agreement or the Notes, or have directed the taking of any action provided herein, in the Guaranty Agreement or in the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.

18. NOTICES.

     All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy or other electronic communication (including email) if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with charges prepaid). Any such notice must be sent:

     (i) if to any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in Schedule A, or at such other address as such Purchaser or nominee shall have specified to the Company in writing,

     (ii) if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in writing, or

     (iii) if to the Company, to the Company at its address set forth at the beginning hereof to the attention of Chief Financial Officer (Telephone: (281) 765-7100; Fax: (281)  ###-###-####) or at such other address as the Company shall have specified to the holder of each Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

19. REPRODUCTION OF DOCUMENTS.

     This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced. The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative

proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 19 shall not prohibit the Company or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

20. CONFIDENTIAL INFORMATION.

     For the purposes of this Section 20, “Confidential Information” means information delivered to any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any person acting on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available. Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys, trustees and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by its Notes), (ii) its financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 20, (iii) any other holder of any Note, (iv) any Institutional Investor to which it sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (v) any Person from which it offers to purchase any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (A) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (B) in response to any subpoena or other legal process, (C) in connection with any litigation to which such Purchaser is a party or (D) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser’s Notes, the Guaranty Agreement and this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 20 as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee),

such holder will enter into an agreement with the Company embodying the provisions of this Section 20.

21. SUBSTITUTION OF PURCHASER.

     Each Purchaser shall have the right to substitute any one of its Affiliates as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 21), shall be deemed to refer to such Affiliate in lieu of such original Purchaser. In the event that such Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter transfers to such original Purchaser all of the Notes then held by such Affiliate, upon receipt by the Company of notice of such transfer, any reference to such Affiliate as a “Purchaser” in this Agreement (other than in this Section 21), shall no longer be deemed to refer to such Affiliate, but shall refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original holder of the Notes under this Agreement.

22. MISCELLANEOUS.

     22.1. Successors and Assigns.

     All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and permitted assigns (including, without limitation, any subsequent holder of a Note) whether so expressed or not.

     22.2. Payments Due on Non-Business Days.

     Anything in this Agreement or the Notes to the contrary notwithstanding (but without limiting the requirement in Section 8.4 that the notice of any prepayment specify a Business Day as the date fixed for such prepayment), any payment of principal of or Make-Whole Amount or interest on any Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided that if the maturity date of any Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

     22.3. Accounting Terms.

     All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP. Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP. For purposes of determining compliance with the financial covenants contained in this Agreement, any election by the Company to measure an item of Indebtedness using fair value (as

permitted by Financial Accounting Standards Board Accounting Standards Codification 825-10-25 (formerly known as FASB 159) or any similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made.

     22.4. Severability.

     Any provision of this Agreement 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 hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

     22.5. Construction, etc.

     Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

     For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be deemed to be a part hereof.

     22.6. Counterparts.

     This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.

     22.7. Governing Law.

     This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

     22.8. Jurisdiction and Process; Waiver of Jury Trial.

     (a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement, the Notes or the Guaranty Agreement. To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit,

action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

     (b) The Company consents to process being served by or on behalf of any holder of Notes in any suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested, to it at its address specified in Section 18 or at such other address of which such holder shall then have been notified pursuant to said Section. The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.

     (c) Nothing in this Section 22.8 shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

     (d) THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.

[Remainder of page left intentionally blank. Next page is signature page.]

     If you are in agreement with the foregoing, please sign the form of agreement on a counterpart of this Agreement and return it to the Company, whereupon this Agreement shall become a binding agreement between you and the Company.

		Very truly yours,
		PATTERSON-UTI ENERGY, INC.
		By:		/s/ John. E. Vollmer III
		Name:		John. E. Vollmer III
		Title:		Senior Vice President – Corporate Development, Chief Financial Officer and Treasurer

[Signature Page to Note Purchase Agreement]

This Agreement is hereby accepted and agreed to as of the date thereof.

GIBRALTAR LIFE INSURANCE CO., LTD.
By:		Prudential Investment Management (Japan), Inc., as Investment Manager
		By:		Prudential Investment Management, Inc., as Sub-Adviser
				By:		/s/ Brian N. Thomas
				Name:		Brian N. Thomas
				Title:		Vice President

PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY
By:		Prudential Investment Management, Inc., as investment manager
		By:		/s/ Brian N. Thomas
		Name:		Brian N. Thomas
		Title:		Vice President

THE PRUDENTIAL LIFE INSURANCE COMPANY, LTD.
By:		Prudential Investment Management (Japan), Inc., as Investment Manager
		By:		Prudential Investment Management, Inc., as Sub-Adviser
				By:		/s/ Brian N. Thomas
				Name:		Brian N. Thomas
				Title:		Vice President
FORETHOUGHT LIFE INSURANCE COMPANY
By:		Prudential Private Placement Investors, L.P. (as Investment Advisor)
		By:		Prudential Private Placement Investors, Inc. (as its General Partner)
				By:		/s/ Brian N. Thomas
				Name:		Brian N. Thomas
				Title:		Vice President

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
By:		/s/ Brian N. Thomas
Name:		Brian N. Thomas
Title:		Vice President

PHYSICIANS MUTUAL INSURANCE COMPANY
By:		Prudential Private Placement Investors, L.P. (as Investment Advisor)
		By:		Prudential Private Placement Investors, Inc. (as its General Partner)
				By:		/s/ Brian N. Thomas
				Name:		Brian N. Thomas
				Title:		Vice President
BCBSM, INC. DBA BLUE CROSS AND BLUE SHIELD OF MINNESOTA
By:		Prudential Private Placement Investors, L.P. (as Investment Advisor)
		By:		Prudential Private Placement Investors, Inc. (as its General Partner)
				By:		/s/ Brian N. Thomas
				Name:		Brian N. Thomas
				Title:		Vice President

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
By:		/s/ Laura M. Parrott
Name:		Laura M. Parrott
Title:		Director

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
By:		/s/ Howard Stern
Name:		Howard Stern
Its:		Authorized Representative
THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY FOR ITS GROUP ANNUITY SEPARATE ACCOUNT
By:		/s/ Howard Stern
Name:		Howard Stern
Its:		Authorized Representative

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

AVIVA LIFE AND ANNUITY COMPANY
By:		Aviva Investors North America, Inc., its authorized attorney-in-fact
		By:		/s/ Tamara L. Harmon
		Name:		Tamara L. Harmon
		Title:		VP, Sr. Portfolio Manager

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

JACKSON NATIONAL LIFE INSURANCE COMPANY
By:		PPM America, Inc., as attorney in fact
		By:		/s/ Brian Manczak
		Name:		Brian Manczak
		Title:		Vice President

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
By:		Allianz of America, Inc. as the authorized signatory and investment manager
		By:		/s/ Gary Brown
		Name:		Gary Brown
		Title:		Chief Investment Officer – Fixed Income

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA
By:		/s/ Brian Keating
Name:		Brian Keating
Title:		Managing Director

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

ENSIGN PEAK ADVISORS, INC.
By:		/s/ Kevin Lund
Name: Kevin Lund
Title: Vice President

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

CUNA MUTUAL INSURANCE SOCIETY CUMIS INSURANCE SOCIETY, INC.
By:		MEMBERS Capital Advisors, Inc., acting as Investment Advisor
		By:		/s/ Allen R. Cantrell
		Name: Allen R. Cantrell
		Title: Managing Director, Investments

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

ALLSTATE LIFE INSURANCE COMPANY
By:		/s/ Breege A. Farrell
Name: Breege A. Farrell
By:		/s/ Mark Cloghessy
Name: Mark Cloghessy
Authorized Signatories
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
By:		/s/ Breege A. Farrell
Name: Breege A. Farrell
By:		/s/ Mark Cloghessy
Name: Mark Cloghessy
Authorized Signatories

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

THE UNION CENTRAL LIFE INSURANCE COMPANY AMERITAS LIFE INSURANCE CORP. ACACIA LIFE INSURANCE COMPANY FIRST AMERITAS LIFE INSURANCE CORP. OF NEW YORK
By:		Summit Investment Partners, as Agent
		By:		/s/ Andrew S. White
		Name: Andrew S. White
		Title: Managing Director — Private Placements

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY
By:		/s/ David Divine
Name: David Divine
Title: Portfolio Manager

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

MODERN WOODMEN OF AMERICA
By:		/s/ Nick S. Coin
Name: Nick S. Coin
Title: Treasurer & Investment Manager

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

THE OHIO NATIONAL LIFE INSURANCE COMPANY
By:		/s/ Jed R. Martin
Name: Jed R. Martin
Title: Vice President, Private Placements
OHIO NATIONAL LIFE ASSURANCE CORPORATION
By:		/s/ Jed R. Martin
Name: Jed R. Martin
Title: Vice President, Private Placements

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

AMERICAN NATIONAL INSURANCE COMPANY (ANICO)
By:		/s/ Gordon Dixon
Name: Gordon Dixon
Title: Senior Vice President

[Signature Page to Note Purchase Agreement - Patterson-UTI Energy, Inc.]

Schedule A

Information Relating To Purchasers

Purchaser Name		GIBRALTAR LIFE INSURANCE CO., LTD.
Name in Which to Register Note(s)		GIBRALTAR LIFE INSURANCE CO., LTD.
Registration number(s); principal amount(s)		RA-1; $16,081,000
Payment on Account of Note(s)
Method		Federal Funds Wire Transfer
Account Information		JPMorgan Chase Bank New York, NY ABA No.: 021-000-021 Account Name: Gibraltar Private Account No.: P86246 (please do not include spaces) Ref: “Accompanying Information” below
		All payments, other than principal, interest or Make-Whole Amount shall be made by wire transfer of immediately available funds for credit to:
		JPMorgan Chase Bank New York, NY ABA No. 021-000-021 Account No. 304199036 Account Name: Prudential International Insurance Service Company Ref: “Accompanying Information” below
Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Security No.:		INV11269
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		Gibraltar Life Insurance Co., Ltd. 2-13-10, Nagatacho Chiyoda-ku, Tokyo 100-8953, Japan Attention: Mizuho Matsumoto, Vice President of Investment Operations Team E-mail: ***@***
Address/Fax for All Other Notices		Prudential Private Placement Investors, L.P. c/o Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attention: Managing Director, Energy and Corporate Finance

Instructions re: Delivery of Note(s)		Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attn: Thomas P. Donohue, Esq.
Tax Identification Number		98-0408643

Purchaser Name		GIBRALTAR LIFE INSURANCE CO., LTD.
Name in Which to Register Note(s)		GIBRALTAR LIFE INSURANCE CO., LTD.
Registration number(s); principal amount(s)		RA-2; $5,379,000
Payment on Account of Note(s)
Method		Federal Funds Wire Transfer
Account Information		JPMorgan Chase Bank New York, NY ABA No.: 021-000-021 Account Name: GIB Private Placement USD Account No.: P86406 (please do not include spaces) Ref: “Accompanying Information” below
		All payments, other than principal, interest or Make-Whole Amount shall be made by wire transfer of immediately available funds for credit to:
		JPMorgan Chase Bank New York, NY ABA No. 021-000-021 Account No. 304199036 Account Name: Prudential International Insurance Service Company Ref: “Accompanying Information” below
Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Security No.:		INV11269
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		Gibraltar Life Insurance Co., Ltd. 2-13-10, Nagatacho Chiyoda-ku, Tokyo 100-8953, Japan Attention: Mizuho Matsumoto, Vice President of Investment Operations Team E-mail: ***@***
Address/Fax for All Other Notices		Prudential Private Placement Investors, L.P. c/o Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attention: Managing Director, Energy and Corporate Finance
Instructions re: Delivery of Note(s)		Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attn: Thomas P. Donohue, Esq.
Tax Identification Number		98-0408643

Purchaser Name		PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY
Name in Which to Register Note(s)		PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY
Registration number(s); principal amount(s)		RA-3; $13,500,000
Payment on Account of Note(s)
Method		Federal Funds Wire Transfer
Account Information		JPMorgan Chase Bank New York, NY ABA No.: 021-000-021 Account Name: PRIAC Account No.: P86329 (please do not include spaces)
		Each such wire transfer shall set forth the “Accompanying Information” below
Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Security No.:		INV11269
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		Prudential Retirement Insurance and Annuity Company c/o Prudential Investment Management, Inc. Private Placement Trade Management PRIAC Administration Gateway Center Four, 7th Floor 100 Mulberry Street Newark, NJ 07102 Phone: 973 ###-###-#### Fax: 888 ###-###-####
Address/Fax for All Other Notices		Prudential Retirement Insurance and Annuity Company c/o Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attention: Managing Director, Energy and Corporate Finance
Instructions re: Delivery of Note(s)		Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attn: Thomas P. Donohue, Esq.
Tax Identification Number		06-1050034

Purchaser Name		THE PRUDENTIAL LIFE INSURANCE COMPANY, LTD.
Name in Which to Register Note(s)		THE PRUDENTIAL LIFE INSURANCE COMPANY, LTD.
Registration number(s); principal amount(s)		RA-4; $8,040,000
Payment on Account of Note(s)
Method		Federal Funds Wire Transfer
Account Information		JPMorgan Chase Bank New York, NY ABA No.: 021-000-021 Account No.: P86291 Account Name: The Prudential Life Insurance Company, Ltd Ref: “Accompanying Information” below
		All payments, other than principal, interest or Make-Whole Amount, on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to:
		JPMorgan Chase Bank New York, NY ABA No. 021-000-021 Account No. 304199036 Account Name: Prudential International Insurance Service Co. Ref: “Accompanying Information” below
Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Security No.:		INV11269
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		The Prudential Life Insurance Company, Ltd. 2-13-10, Nagatacho Chiyoda-ku, Tokyo 100-0014, Japan Telephone: 81-3-5501-5190 Facsimile: 81-03-5501-5037 E-mail: ***@*** Attention: Osamu Egi, Team Leader of Financial Reporting Team
Address/Fax for All Other Notices		Prudential Private Placement Investors, L.P. c/o Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attention: Managing Director, Energy and Corporate Finance
Instructions re: Delivery of Notes		Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attn: Thomas P. Donohue, Esq.
Tax Identification Number		98-0433392

Purchaser Name		FORETHOUGHT LIFE INSURANCE COMPANY
Name in Which to Register Note(s)		FORETHOUGHT LIFE INSURANCE COMPANY
Registration number(s); principal amount(s)		RA-5; $7,500,000
Payment on Account of Note(s)
Method		Federal Funds Wire Transfer
Account Information		State Street Bank & Trust Company Boston, MA ABA # 011000028 DDA # 24564783 For Further Credit: Forethought Life Insurance Company Fund # 3N1H Ref: “Accompanying Information” below.
Accompanying Information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		Forethought Life Insurance Company Attn: Russell L. Jackson 300 North Meridian, Suite 1800 Indianapolis, IN 46204 Phone: 317 ###-###-#### Email: ***@*** with copy to: State Street Bank Attn: Deb Hartner 801 Pennsylvania Kansas City, MO 64105 Phone: 816 ###-###-#### Email: ***@***
Address/Fax for All Other Notices		Prudential Private Placement Investors, L.P. c/o Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attention: Managing Director, Energy and Corporate Finance

Purchaser Name		FORETHOUGHT LIFE INSURANCE COMPANY
Instructions re: Delivery of Notes		DTC / New York Window 55 Water Street New York, NY 10041 Attention: Robert Mendez Ref: SSB Fund # 3N1H With a copy to: Prudential Capital Group Gateway Center 4 100 Mulberry, 7th Floor Newark, NJ 07102 Attention: Trade Management, Manager Telephone: (973)  ###-###-#### and Forethought Life Insurance Company Attn: Eric Todd 300 North Meridian Suite 1800 Indianapolis, IN 46204
Tax Identification Number		06-1016329

Purchaser Name		THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Name in Which to Register Note(s)		THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Registration number(s); principal amount(s)		RA-6; $5,000,000
Payment on Account of Note(s)       Method       Account Information		Federal Funds Wire Transfer JPMorgan Chase Bank New York, NY ABA No.: 021-000-021 Account Name: Prudential — Managed Portfolio Account No.: P86188 (do not include spaces) Ref: “Accompanying Information” below
Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Security No.:		INV11269
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		The Prudential Insurance Company of America c/o Investment Operations Group Gateway Center Two, 10th Floor 100 Mulberry Street Newark, NJ 07102-4077 Attn: Manager, Billings and Collections with telephonic prepayment notices to: Manager, Trade Management Group Tel: 973 ###-###-#### Fax: 888 ###-###-####
Address/Fax for All Other Notices		The Prudential Insurance Company of America c/o Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attention: Managing Director, Energy and Corporate Finance
Instructions re: delivery of Note(s)		Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attn: Thomas P. Donohue, Esq.
Tax Identification Number		22-1211670

Purchaser Name		PHYSICIANS MUTUAL INSURANCE COMPANY
Name in Which to Register Note(s)		HOW & CO.
Registration number(s); principal amount(s)		RA-7; $3,000,000
Payment on Account of Note(s)       Method       Account Information		Federal Funds Wire Transfer The Northern Trust Company Chicago, IL ABA No.: 071000152 Account Name: Physicians Mutual Insurance Company Account No.: 26-98845 Ref: “Accompanying Information” below
Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		Physicians Mutual Insurance Company 2600 Dodge Street Omaha, NE 68131 Attention: Steve Scanlan Fax: (402)  ###-###-####
Address/Fax for All Other Notices		Prudential Private Placement Investors, L.P. c/o Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attention: Managing Director, Energy and Corporate Finance
Instructions re: delivery of Note(s)		The Northern Trust Company of New York Harborside Financial Center 10, Suite 1401 3 Second Street Jersey City, NJ 07311 Attention: Jose Mero & Ruby Vega Re: Physicians Mutual Insurance Company-Prudential; Account Number: 26-98845 With a copy to: Prudential Capital Group Gateway Center 4 100 Mulberry, 7th Floor Newark, NJ 07102 Attention: Trade Management, Manager Telephone: (973)  ###-###-####
Tax Identification Number		47-0270450

Purchaser Name		BCBSM, INC. DBA BLUE CROSS AND BLUE SHIELD OF MINNESOTA
Name in Which to Register Note(s)		BLUE CROSS AND BLUE SHIELD OF MINNESOTA
Registration number(s); principal amount(s)		RA-8; $1,500,000
Payment on Account of Note(s)       Method       Account Information		Federal Funds Wire Transfer U.S. Bank N.A. ABA No.: 091000022 Account No.  ###-###-#### 60 Livingston Avenue St. Paul, MN 55107 Attn: Income Team (PPN Number, Account No. 10561811 and payment breakdown) Ref: “Accompanying Information” below
Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		Blue Cross and Blue Shield of Minnesota 1303 Corporate Center Drive Eagan, MN 55121-1204 Attention: James K. Rochat, Director, Investments Telephone: (651)  ###-###-#### Facsimile: (651)  ###-###-####
Address/Fax for All Other Notices		Prudential Private Placement Investors, L.P. c/o Prudential Capital Group 2200 Ross Avenue, Suite 4200E Dallas, TX 75201 Attention: Managing Director, Energy and Corporate Finance
Instructions re: delivery of Note(s)		U.S. Bank Cindy Procai EP MN WS41 60 Livingston Ave. St. Paul, MN 55107 Attention: Kate O’Connor Telephone: (651)  ###-###-#### Re: Blue Cross & Blue Shield of Minnesota; Account Number: 10561811 With a copy to: Prudential Capital Group Gateway Center 4 100 Mulberry, 7th Floor Newark, NJ 07102 Attention: Trade Management, Manager Telephone: (973)  ###-###-####
Tax Identification Number		41-0984460

Purchaser Name		TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
Name in Which to Register Note(s)		TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
Registration number(s); principal amount(s)		RA-9; $52,000,000
Payment on Account of Note(s)       Method       Account Information		Automated Clearing House System JPMorgan Chase Bank, N.A. ABA# 021-000-021 Account #: 900-9-000200 Account Name: TIAA For further credit to: Account # G07040 Ref: “Accompanying information” below
Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		Teachers Insurance and Annuity Association of America 730 Third Avenue New York, NY 10017 Attn: Securities Accounting Division Phone: 212 ###-###-#### Fax: 212 ###-###-#### With a copy to: JPMorgan Chase Bank, N.A. P.O. Box 35308 Newark, NJ 07101 And: Teachers Insurance and Annuity Association of America 730 Third Avenue New York, NY 10017 Attn: Global Private Markets Tel: 212 ###-###-#### (Lisa M. Ferraro)       ###-###-#### (General Number) Email: ***@***
Address/Fax for All Other Notices		Teachers Insurance and Annuity Association of America 730 Third Avenue New York, NY 10017 Attn: Global Private Markets Tel: 212 ###-###-#### (Lisa M. Ferraro)       ###-###-#### (General Number) Email: ***@***

Purchaser Name		TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
Instructions re: delivery of Note(s)		JPMorgan Chase Bank, N.A. 4 Chase Metrotech Center, 3rd Floor Brooklyn, NY ###-###-#### Attn: Physical Receive Dept. For TIAA A/C# G07040
Tax Identification Number		13-1624203

Purchaser Name		THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
Name in Which to Register Note(s)		THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
Registration number(s); principal amount(s)		RA-10; $45,000,000
Payment on Account of Note(s)       Method       Account Information		Federal Funds Wire Transfer US Bank 777 East Wisconsin Avenue Milwaukee, WI 53202 ABA #075000022 For the account of: Northwestern Mutual Life Account No. 182380324521 Ref: “Accompanying information” below
Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		The Northwestern Mutual Life Insurance Company 720 East Wisconsin Avenue Milwaukee, WI 53202 Attn: Treasury & Investment Operations Email: ***@***
Address/Fax for All Other Notices		The Northwestern Mutual Life Insurance Company 720 East Wisconsin Avenue Milwaukee, WI 53202 Attn: Securities Department Email: ***@***
Instructions re: delivery of Note(s)		The Northwestern Mutual Life Insurance Company 720 East Wisconsin Avenue Milwaukee, WI 53202 Attn: Matthew E. Gabrys, Esq.
Tax Identification Number		39-0509570

Purchaser Name		THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY FOR ITS GROUP ANNUITY SEPARATE ACCOUNT
Name in Which to Register Note(s)		THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY FOR ITS GROUP ANNUITY SEPARATE ACCOUNT
Registration number(s); principal amount(s)		RA-11; $2,000,000
Payment on Account of Note(s)       Method       Account Information		Federal Funds Wire Transfer US Bank 777 East Wisconsin Avenue Milwaukee, WI 53202 ABA #075000022 For the account of: Northwestern Mutual Life-GASA Account No. 182380324018 Ref: “Accompanying information” below
Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account 720 East Wisconsin Avenue Milwaukee, WI 53202 Attn: Investment Operations Email: ***@***
Address/Fax for All Other Notices		The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account 720 East Wisconsin Avenue Milwaukee, WI 53202 Attn: Securities Department Email: ***@***
Instructions re: delivery of Note(s)		The Northwestern Mutual Life Insurance Company 720 East Wisconsin Avenue Milwaukee, WI 53202 Attn: Matthew E. Gabrys, Esq.
Tax Identification Number		39-0509570

Purchaser Name		AVIVA LIFE AND ANNUITY COMPANY
Name in Which to Register Note(s)		HARE & CO.
Registration number(s); principal amount(s)		RA-12; $28,000,000
Payment on Account of Note(s)       Method       Account Information		Federal Funds Wire Transfer The Bank of New York New York, NY ABA #021000018 Credit A/C# GLA111566 A/C Name: Institutional Custody Insurance Division Custody Account Name: Aviva Life and Annuity Co-Annuity Custody Account Number: 010048 Ref: “Accompanying Information” below.
Accompanying Information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address / Fax # / Email for all Notices, including Financials, Compliance and Requests		PREFERRED REMITTANCE: ***@*** Aviva Life and Annuity Company c/o Aviva Investors North America, Inc. 215 10th Street, Suite 1000 Des Moines, IA 50309 Attn: Private Placements
Instructions re: delivery of Notes		The Bank of New York One Wall Street, 3rd Floor Window A New York, NY 10286 FAO: Aviva Life and Annuity Co-Annuity, A/C #010048
Tax Identification Number		42-0175020 (Aviva Life and Annuity Company) 13 ###-###-#### (Hare & Co.)

Purchaser Name		AVIVA LIFE AND ANNUITY COMPANY
Name in Which to Register Note(s)		HARE & CO.
Registration number(s); principal amount(s)		RA-13; $7,000,000
Payment on Account of Note(s)       Method       Account Information		Federal Funds Wire Transfer The Bank of New York New York, NY ABA #021000018 Credit A/C# GLA111566 A/C Name: ALAC — Private FI Custody Account Name: ALAC — Private FI Custody Account Number: 447702 Ref: “Accompanying Information” below.
Accompanying Information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address / Fax # / Email for all Notices, including Financials, Compliance and Requests		PREFERRED REMITTANCE: ***@*** Aviva Life and Annuity Company c/o Aviva Investors North America, Inc. 215 10th Street, Suite 1000 Des Moines, IA 50309 Attn: Private Placements
Instructions re: delivery of Notes		The Bank of New York One Wall Street, 3rd Floor Window A New York, NY 10286 FAO: ALAC — Private FI, A/C #447702
Tax Identification Number		42-0175020 (Aviva Life and Annuity Company) 13 ###-###-#### (Hare & Co.)

Purchaser Name		JACKSON NATIONAL LIFE INSURANCE COMPANY
Name in Which to Register Note(s)		JACKSON NATIONAL LIFE INSURANCE COMPANY
Registration number(s); principal amount(s)		RA-14; $10,000,000
Payment on Account of Note(s)       Method       Account Information		Federal Funds Wire Transfer The Bank of New York ABA # 021-000-018 BNF Account #: IOC566 FBO: JNL A/C # 187242 Ref: “Accompanying information” below
Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		Jackson National Life Insurance Company c/o The Bank of New York Attn: P & I Department P.O. Box 19266 Newark, NJ 07195 Tel: (718)  ###-###-#### Fax: (718)  ###-###-####
Address/Fax for All Other Notices		PPM America, Inc. 225 West Wacker Drive, Suite 1200 Chicago, IL 60606-1228 Attn: Private Placements — Brian Manczak Tel: (312)  ###-###-#### Fax: (312)  ###-###-#### with a copy to PPM America, Inc. 225 West Wacker Drive, Suite 1200 Chicago, IL 60606-1228 Attn: Investment Accounting — Craig Close Tel: (312)  ###-###-#### Fax: (312)  ###-###-#### With copies of Financial Information also to: Jackson National Life Insurance Company 225 West Wacker Drive, Suite 1500 Chicago, IL 60606-1228 Attn: Investment Accounting — Mark Stewart Tel: (517)  ###-###-#### Fax: (517)  ###-###-####

Purchaser Name		JACKSON NATIONAL LIFE INSURANCE COMPANY
Instructions re: delivery of Note(s)		The Bank of New York Special Processing — Window A One Wall Street, 3rd Floor New York, NY 10286 Ref: JNL — JNL ELI/ Non Insul., A/C #187242
Tax Identification Number		38-1659835

Purchaser Name		JACKSON NATIONAL LIFE INSURANCE COMPANY
Name in Which to Register Note(s)		JACKSON NATIONAL LIFE INSURANCE COMPANY
Registration number(s); principal amount(s)		RA-15; $10,000,000
Payment on Account of Note(s) Method Account Information		Federal Funds Wire Transfer The Bank of New York ABA # 021-000-018
		BNF Account #: IOC566
		FBO: JNL A/C # 187244
		Ref: “Accompanying information” below
Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		Jackson National Life Insurance Company c/o The Bank of New York Attn: P & I Department P.O. Box 19266 Newark, NJ 07195 Tel: (718)  ###-###-#### Fax: (718)  ###-###-####
Address/Fax for All Other Notices		PPM America, Inc. 225 West Wacker Drive, Suite 1200 Chicago, IL 60606-1228 Attn: Private Placements — Brian Manczak Tel: (312)  ###-###-#### Fax: (312)  ###-###-#### with a copy to PPM America, Inc. 225 West Wacker Drive, Suite 1200 Chicago, IL 60606-1228 Attn: Investment Accounting — Craig Close Tel: (312)  ###-###-#### Fax: (312)  ###-###-#### With copies of Financial Information also to: Jackson National Life Insurance Company 225 West Wacker Drive, Suite 1500 Chicago, IL 60606-1228 Attn: Investment Accounting — Mark Stewart Tel: (517)  ###-###-#### Fax: (517)  ###-###-####

Purchaser Name		JACKSON NATIONAL LIFE INSURANCE COMPANY
Instructions re: delivery of Note(s)		The Bank of New York Special Processing — Window A One Wall Street, 3rd Floor New York, NY 10286 Ref: JNL — JNL MVA, A/C #187244
Tax Identification Number		38-1659835

Purchaser Name		ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Name in Which to Register Note(s)		MAC & CO.
Registration number(s); principal amount(s)		RA-16; $15,000,000
Payment on Account of Note(s)       Method       Account Information		Federal Funds Wire Transfer MAC & CO. The Bank of New York Mellon ABA # 011001234 Mellon Bank Account No. AZAF6700012 DDA 125261 Cost Center 1253 Ref: “Accompanying Information” below For Credit to Portfolio Account: AZLife AZAF6700012
Accompanying Information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2
		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for Notices Related to Payments		Allianz Life Insurance Company of North America c/o Allianz of America, Inc. Attn: Private Placements 55 Greens Farms Road P.O. Box 5160 Westport, Connecticut ###-###-#### Phone: 203 ###-###-#### Fax: 203 ###-###-#### E-mail: ***@*** With a copy to: Kathy Muhl Supervisor — Income Group The Bank of New York Mellon Three Mellon Center — Room 153-1818 Pittsburgh, PA 15259 Tel: 412 ###-###-#### Fax: 412 ###-###-#### E-mail: ***@***
Address/Fax for All Other Notices		Allianz Life Insurance Company of North America c/o Allianz of America, Inc. Attn: Private Placements 55 Greens Farms Road P.O. Box 5160 Westport, Connecticut ###-###-#### Tel: 203 ###-###-#### Fax: 203 ###-###-#### E-mail: ***@***

Purchaser Name		ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
Instructions re: delivery of Notes		Mellon Securities Trust Company One Wall Street 3rd Floor, Receive Window C New York, NY 10286 For Credit to: Allianz Life Insurance Company of North America, AZLife AZAF6700012
Tax Identification Number		41-1366075

Purchaser Name		THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA
Name in Which to Register Note(s)		THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA
Registration number(s); principal amount(s)		RA-17; $15,000,000
Payment on Account of Note(s)
Method		Funds Wire Transfer
Account Information		JP Morgan Chase
		ABA #021000021
		Chase/NYC/CTR/BNF
		A/C 900-9-000200
		Reference A/C #G05978, Guardian Life, and “Accompanying Information” below.

Accompanying Information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2

		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address/Fax for all Notices		The Guardian Life Insurance Company of America
		7 Hanover Square
		New York, NY 10004-2616
		Attn: Brian Keating
		Investment Department 9-A
		FAX # (212)  ###-###-####/2656
Instructions re: delivery of Notes		JP Morgan Chase Bank
		4 Chase Metrotech Center — 3rd Floor
		Brooklyn, NY ###-###-####
		Reference A/C #G05978, Guardian Life
Tax Identification Number		13 ###-###-####

Purchaser Name		ENSIGN PEAK ADVISORS, INC.
Name in Which to Register Note(s)		ENSIGN PEAK ADVISORS, INC.
Registration number(s); principal amount(s)		RA-18; $12,000,000
Payment on Account of Note(s)
Method		Funds Wire Transfer
Account Information		Zions First National Bank
		ABA ###-###-####
		Acct # 01-20001-3
		Acct Name: Ensign Peak Advisors
		Ref: “Accompanying Information” below.

Accompanying Information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2

		Due date and application (as among principal, premium and interest) of the payment being made.
Address/Fax for all Notices		Ensign Peak Advisors, Inc.
		50 East North Temple, 15th Floor
		Salt Lake City, UT 84150
		Email: ***@***
		Attn: Scott Colton (801 ###-###-####) or Greg Tarbet (801 ###-###-####)
		Fax: 801 ###-###-####
Instructions re: delivery of Notes		Ensign Peak Advisors, Inc.
		50 East North Temple, 15th Floor
		Salt Lake City, UT 84150
		Email: ***@***
		Attn: Scott Colton (801 ###-###-####) or Greg Tarbet (801 ###-###-####)
		Fax: 801 ###-###-####
Tax Identification Number		84-1432969

Purchaser Name		CUNA MUTUAL INSURANCE SOCIETY
Name in Which to Register Note(s)		TURNKEYS + CO
Registration number(s); principal amount(s)		RA-19; $8,000,000
Payment on Account of Note(s)
Method		Federal Funds Wire Transfer
Account Information		State Street Bank
		ABA #11000028
		Account Name: CUNA Mutual Insurance Society
		DDA#: 1044-851-2
		Reference Fund #ZT1E and “Accompanying information” below

Accompanying information		Name of Issuer:		PATTERSON-UTI ENERGY, INC.
		Description of Security:		4.97% Series A Senior Notes due October 5, 2020
		PPN:		703481 A*2

		Due date and application (as among principal, interest or Make-Whole Amount) of the payment being made.
Address / Fax # for all notices		Email: ***@***
		CUNA Mutual Insurance Society
		c/o MEMBERS Capital Advisors, Inc.
		5910 Mineral Point Road
		Madison, WI ###-###-####

		Attn:		Allen Cantrell ***@***)
				John Britt ***@***)
				Carrie Snell ***@***)
		Fax:		608 ###-###-#### (Allen Cantrell)
				860 ###-###-#### (John Britt)
				608 ###-###-#### (Carrie Snell)

Instructions re Delivery of Note(s)		State Street Bank
		DTC/New York Window
		55 Water Street
		Plaza Level – 3rd Floor
		New York, NY 10041
		Attn: Robert Mendez
		Ref: ZT1E / Turnkeys + CO
Tax Identification Number		39-0230590