Amendment No 1, dated June 23, 2004, to Loan and Security Agreement



 Exhibit 10.10 
  
 AMENDMENT NO. 1 TO 
 LOAN AND SECURITY AGREEMENT 
  
 This Amendment No. 1 to Loan and Security Agreement (this “Amendment”), dated as of June 23, 2004, is entered into by and among the following parties: 
  
 (a) SEITEL, INC., a Delaware corporation (the
“Administrative Borrower”), as the agent and attorney in fact for all Borrowers under the Loan Agreement (as hereinafter defined); and 
  
 (b) WELLS FARGO FOOTHILL, INC., a California corporation (“Lender”). 
  
 REFERENCES: 
  
 Reference is made to the Loan and Security Agreement, dated as of April 16,
2004, by and among the Borrowers and Lender (the “Loan Agreement”). 
  
 RECITALS: 
  
 1. The
Borrowers have requested clarification with respect to the interaction of the Loan Agreement with the terms and procedures related to the High Yield Offering. 
  

2. In response to such request, Lender is willing to amend and modify certain provisions of the Loan Agreement as set forth in, and subject to the
terms and conditions of, this Amendment. 
  
 AGREEMENTS:

  
 NOW, THEREFORE, in consideration of the premises herein
contained and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 
  
 1. DEFINITIONS. All capitalized terms used but not otherwise defined in this Amendment shall have the meanings
ascribed to them in the Loan Agreement. 
  
 2. AMENDMENTS TO
LOAN. 
  
 2.1. Amendment to Permitted
Liens. The defined term “Permitted Liens” set out in Section 1.1 of the Loan Agreement is amended by adding the following clause (m) to the definition of Permitted Liens, as follows: 
  
 “(m) a Lien granted, to or for the benefit of the holders of the Senior
Notes, on the High Yield Note Account and all funds therein from time to time, as collateral security for the Borrowers’ repurchase obligations under the High Yield Offering (if, as, and when such repurchase obligations may arise).”

  
 AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT – Page 1








 2.2. Amendment to Permitted Investments. The defined term “Permitted
Investments” set out in Section 1.1 of the Loan Agreement is amended by adding the following clause (e) to the definition of Permitted Investments, as follows: 
  
 “(e) (1) the deposit of an amount equal to the proceeds of the High Yield Offering (net of initial purchasers’
discounts) into the High Yield Note Account, 
  
 (2) the retention in the High Yield Note Account of such proceeds and interest earned thereon pending either (A) the application of such proceeds to Claims and other obligations under the Plan or (B) the return thereof to the subject
investors in the event that the High Yield Offering is not consummated and the Borrowers become obligated to repurchase the Senior Notes as described in the High Yield Offering; and 
  
 (3) the deposit by the Borrowers of additional funds into the High Yield Note Account equal to the sum of

  
 (A) the initial purchasers’ discounts
paid in respect of the High Yield Offering (estimated to be in the aggregate amount of $5,700,000), plus 
  
 (B) 1% of the aggregate principal amount of the Senior Notes, plus 
  
 (C) seventy-five (75) days’ interest on the Senior Notes at the rate applicable thereto as of the date
of issuance thereof (estimated to be in the amount of $4,057,000), 
  
 so as to enable the Borrowers to fulfill their obligation to repurchase the Senior Notes in the event that the transactions contemplated by the High Yield Offering (including the release to the Borrowers of the funds in the High Yield Note
Account upon satisfaction of the conditions applicable thereto) are not consummated. The foregoing estimates are subject to change without the consent of Lender, and any such change(s) shall not affect the validity or effectiveness of this
Agreement. The sums deposited pursuant to the foregoing clause (3) may be included in the $35,000,000 required pursuant to Section 3.1(f).” 
  
 2.3 Repurchase of Senior Notes. Anything elsewhere contained in the Loan Agreement (including, without limitation, Section
7.7(a) thereof) to the contrary notwithstanding, the Borrowers shall be permitted to repurchase the Senior Notes at a price equal to 101% of the principal amount thereof plus accrued interest on the Senior Notes to the date of repurchase, in the
event that the transactions contemplated by the High Yield Offering (including the release to the Borrowers of the funds in the High Yield Note Account upon satisfaction of the conditions applicable thereto) are not consummated for any reason and
the Borrowers become obligated to repurchase the Senior Notes in accordance with the terms of the High Yield Offer; provided, however, that the Borrowers acknowledge that the repurchase of the Senior Notes will constitute a failure to
satisfy the conditions set forth in Section 3.3 of the Loan Agreement and that Lender, at its option, may terminate the Loan Agreement in the event that the Borrowers become obligated to repurchase the Senior Notes. 
  
 AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT – Page 2 








 3. CONDITIONS PRECEDENT TO EFFECTIVENESS OF THIS AMENDMENT. The effectiveness of this Amendment is
subject to the satisfaction of the following conditions precedent, unless specifically waived in writing by Lender: 
  
 3.1. Lender shall have received this Amendment, duly executed by the Administrative Borrower on behalf of each of the Borrowers, in form
and substance acceptable to Lender. 
  
 4.
REPRESENTATIONS, WARRANTIES, AND ADDITIONAL AGREEMENTS OF THE ADMINISTRATIVE BORROWER. The Administrative Borrower hereby represents and warrants to, and agrees with, Lender as set forth below. 
  
 4.1. Authorization and Enforceability. This Amendment
constitutes the valid and binding obligations of the Borrowers, as applicable, enforceable against such parties in accordance with its terms, subject, however to bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the
rights and remedies of creditors generally and the application of principles of equity, whether in any action in law or proceeding in equity. 
  
 4.2. No Consents Required. Neither the Administrative Borrower nor the Borrowers are required to obtain any consent, approval or
authorization from any governmental instrumentality or other agency or any other person or entity in connection with or as a condition to the execution, delivery or performance of this Amendment and the transactions contemplated hereby. 

 
 4.3. Controlling Agreement. The terms and
provisions set forth in this Amendment shall supersede all inconsistent terms and provisions set forth in the Loan Agreement and, except as expressly set forth in this Amendment, the terms and provisions of the Loan Agreement are ratified and
confirmed and shall continue in full force and effect. The parties hereto agree that the Loan Agreement shall continue to be legal, valid, binding and enforceable in accordance with its terms (as amended by this Amendment). 
  
 4.4. Additional Representations and Warranties. The
Administrative Borrower hereby represents and warrants to Lender as follows: 
  
 (a) the execution, delivery and performance of this Amendment and any and all other agreements executed and/or delivered in connection herewith have been authorized by all requisite corporate, partnership and member
action on the part of the respective Borrowers; 
  
 (b) the representations and warranties contained in this Amendment and the Loan Agreement are true and correct on and as of the date hereof as though made on and as of such date; 
  
 (c) the execution and delivery of, and performance by, the
Administrative Borrower as the agent and attorney in fact for all of the Borrowers and the consummation of the transactions contemplated hereby will not (i) violate any provision of the organizational documents or governing instruments of any
Borrower, (ii) violate any judgment, order, ruling, injunction, decree or award of any court, administrative agency or governmental body against, or binding upon, any Borrower, or any indenture, agreement or other instrument to which a Borrower is a
party, or by which a Borrower is bound, or be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or 
  
 AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT – Page 3  







 both) a default under, or except as may be permitted under the Loan Agreement, result in the creation or
imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of any Borrower pursuant to, any such indenture, agreement or instrument; or (iii) constitute a violation by any Borrower of any law or
regulation of any jurisdiction applicable to such Borrower; and 
  
 (d) this Amendment was reviewed by each Borrower, and such Borrower (i) understands fully the terms of this Amendment and the consequences of the issuance hereof, (ii) has been afforded an opportunity to have this
Amendment reviewed by, and to discuss this Amendment with, such attorneys and other persons as the Borrower may wish, and (iii) has entered into this Amendment of its own free will and accord and without threat or duress. 
  
 5. MISCELLANEOUS. 
  
 5.1. No Waiver. The Administrative Borrower agrees
that nothing contained in this Amendment shall affect or impair the validity or priority of the liens and security interests under any of the Loan Documents. Lender further reserves all its rights under the Loan Documents except as expressly
modified herein. 
  
 5.2. Expenses of
Lender. The Administrative Borrower agrees to pay on demand all costs and expenses incurred by Lender in connection with the preparation, negotiation and execution of this Amendment and any other agreements executed pursuant hereto, including,
without limitation, the costs and fees of Lender’s legal counsel. 
  
 5.3. Severability of Provisions. Each provision of this Amendment shall be severable from every other provision of this Amendment for the purpose of determining the legal enforceability of any specific
provision. 
  
 5.4. Successors and
Assigns. This Amendment will inure to the benefit of and are binding upon the parties hereto and their respective successors and permitted assigns. 
  
 5.5. Section Headings. Section headings and numbers have been set forth herein for convenience only. Unless the contrary is
compelled by the context, everything contained in each Section applies equally to this entire Amendment. 
  
 5.6. Counterparts; Telefacsimile Execution. This Amendment may be executed in any number of counterparts and by different parties
on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Amendment. Delivery of an executed counterpart of this Amendment by
telefacsimile shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by telefacsimile also shall deliver an original executed counterpart of
this Amendment but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment. 
  

5.7. Law Governing. THE VALIDITY OF THIS AMENDMENT, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF, AND THE

  

 AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT – Page 4 








 RIGHTS OF THE PARTIES HERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR RELATED HERETO SHALL BE
DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. 
  
 5.8. Waiver; Modification. 
  
 (a) No amendment or waiver of any provision of this Amendment or any other Loan Document, and no consent with respect to any departure by
Borrowers therefrom, shall be effective unless the same shall be in writing and signed by Lender and Administrative Borrower (on behalf of all Borrowers) and then any such waiver or consent shall be effective only in the specific instance and, if a
specific purpose is set forth in such waiver or consent, for the specific purpose for which it was given. 
  
 (b) No failure by any party to exercise any right, remedy, or option under this Amendment, or delay in exercising the same, will operate
as a waiver thereof. No waiver by any party will be effective unless it is in writing, and then only to the extent specifically stated. No waiver on any occasion shall affect or diminish any party’s rights thereafter to require strict
performance on any subsequent occasion of any provision of this Amendment. The parties’ rights under this Amendment will be cumulative and not exclusive of any other right or remedy that the parties may have. 
  
 5.9. Waiver of Jury Trial. ADMINISTRATIVE BORROWER
AND LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THIS AMENDMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF
DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. ADMINISTRATIVE BORROWER AND LENDER REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN
THE EVENT OF LITIGATION, A COPY OF THIS AMENDMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
  
 5.10. Final Agreement. THIS AMENDMENT AND THE LOAN DOCUMENTS REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO THE
SUBJECT MATTER HEREOF ON THE DATE THIS AMENDMENT IS EXECUTED. NEITHER THIS AMENDMENT NOR THE LOAN DOCUMENTS MAY BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES. 
  
 [Signature page follows.]

  

 AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT – Page 5 








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

			
	 SEITEL, INC.,
 a Delaware
corporation,
 as Administrative Borrower for all Borrowers

		
	 By:
	 	/S/    RANDALL D. STILLEY
	 	 	 Randall D. Stilley,
 President and Chief Executive Officer



  

			
	 WELLS FARGO FOOTHILL, INC.,
 a California corporation

		
	 By:
	 	/S/    DANIEL MORIHIRO
	 	 	 Daniel Morihiro, Vice President