Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - South Sea Energy Corp. - Exhibit 10.1

EXECUTION COPY 

MEMORANDUM OF UNDERSTANDING 

Between :

South Sea Energy Corp., a Nevada corporation, formely Henley
Ventures, Inc. (“South Sea”) 

And :

CBM Asia Development Corp., a British Columbia corporation
(“CBM”) 
Alan Charuk, an individual 
Harvey Price, an individual 
James
Charuk, an individual 
Charles Bloomquist, an individual 

Date :      August 17, 2007

          This
Memorandum of Understanding will confirm the various discussions that have taken
place relative to the proposal to terminate discussions underlying the Letter of
Intent entered into by South Sea and CBM dated June 15, 2007, as amended (the
“LOI”). This Memorandum of Understanding contains terms and conditions mutually
acceptable to each party and upon execution, is binding as it relates to
the various matters set forth below:

	 	A) 	
      The LOI has lapsed in accordance with the the terms and
      conditions as set forth therein, and is currently void and fully
      terminated.

	 	 	 
	 	B) 	
      As regards to any and all financial claims and issues
      related to the LOI, and in settlement thereof, CBM shall repay to South
      Sea $26,000 of the Deposit (as defined in the LOI) and South Sea shall
      forgive and fully and unconditionally surrender the remaining $74,000 of
      the Deposit previously provided to CBM, and shall have no right or claim
      thereto.

	 	 	 
	 	C) 	
      South Sea shall return 26,000,000 shares of its common
      stock previously issued to Alan Charuk (20,000,000 shares), Harvey Price
      (500,000 shares), James Charuk (5,000,000 shares) and Charles Bloomquist
      (500,000 shares). CBM Development Corp. Asia shall provide for, among
      other provisions, resignations and general releases by Alan Charuk, Harvey
      Price, James Charuk and Charles Bloomquist against South Sea. These
      shares, while issued, remain unpaid.

	 	 	 
	 	D) 	
      Except as set forth herein, all costs and expenses
      incurred by Alan Charuk, Harvey Price, James Charuk and Charles Bloomquist
      on behalf of South Sea shall be borne by South Sea and South Sea hereby
      holds Alan Charuk, Harvey Price, James Charuk and Charles Bloomquist
      harmless for such costs and expenses.

	 	 	 
	 	E) 	
      South Sea shall enter into an indemnification and hold
      harmless agreement in the form attached hereto as Exhibit B with Alan
      Charuk, Harvey Price, James Charuk and Charles Bloomquist providing
      certain indemnifications for third party claims.

	 	 	 
	 	F) 	
      South Sea agrees that any agreements or letters of intent
      entered into by South Sea related to the participation in or development
      of a coal bed methane project in East

	 		
      Kalimantan, Indonesia shall be owned exclusively by CBM,
      and South Sea agrees to execute any necessary assignments and documents in
      favor of CBM related thereto, the intent of the parties being that South
      Seas shall have no right, title or interest of whatsoever nature in or to
      such project or properties.

	 	 	 
	 	G) 	
      Each party shall be responsible for their own costs and
      expenses in executing the obligations set forth in this Memorandum of
      Understanding.

	 	 	 
	 	H) 	
      Confidentiality: The existence and terms of this
      Memorandum of Understanding are strictly confidential and shall not be
      disclosed by either party except as required by U.S. securities laws, or
      as required to be disclosed to either party’s respective officers,
      directors, employees, attorneys, accountants, bankers, and other advisers,
      provided that such persons agree to the confidentiality restrictions
      contained herein. Alan Charuk, Harvey Price, James Charuk and Charles
      Bloomquist agree to execute any documents requested by South Sea necessary
      to comply with all applicable federal and state securities laws, rules and
      regulations.

          This
Memorandum of Understanding will be governed, construed and enforced in
accordance with the laws of the State of Nevada, without regard to the
principles of conflicts of laws. The parties, and each of them, acknowledge,
agree, and represent that he or it: (a) has been represented in connection with
the negotiation and preparation of this Memorandum of Understanding by counsel
of that party’s choosing; (b) has read this Memorandum of Understanding and has
had it fully explained by his or its counsel; (c) it is fully aware of the
contents and legal affect of this Memorandum of Understanding; (d) has authority
to enter into and sign this Memorandum of Understanding; and (e) enters into and
signs the same by his or its own free will. This Memorandum of Understanding
shall bind the heirs, personal representatives, successors and assigns of each
of the parties and shall inure to the benefit of each of the parties, his or her
agents, directors, officers, employees, attorneys, successors, and assigns. This
Memorandum of Understanding and the exhibits attached hereto contain the entire
and all of the agreements between the parties hereto and constitute the
complete, final and exclusive embodiment of their agreement with respect to the
subject matters covered in this Memorandum of Understanding. Any and all prior
or contemporaneous agreements, understandings, representations, and statements,
oral or written, are merged into and superseded by this Memorandum of
Understanding. No claimed additions to or modifications or amendments of this
Memorandum of Understanding, nor any claimed waiver of its terms or conditions,
shall be effective unless in writing and signed by the duly authorized
representative of the party against whom the same may be asserted.

2 

          This
Memorandum of Understanding shall be executed simultaneously in one or more
counterparts, and by the different parties in separate counterparts, each of
which may be executed via facsimile signature and each of which when executed
shall be deemed original, but all of which shall constitute one and the same
instrument. The foregoing accurately sets forth each parties understanding of
their respective present intentions. 

	 		South Sea Energy Corp. 
	 	  	  
	 	By: 	 
    
	 	Name: 	Dennis Mee 
	 	Title: 	Chief Financial Officer 
	 	  	  
	 		CBM Asia Development Corp. 
	 	By: 	 
    
	 	Name: 	Alan Charuk 
	 	Title: 	President 
	 	  	
	 	By: 	
	 	Name: 	Alan Charuk 
	 	  	
	 	By: 	
	 	Name: 	Harvey Price 
	 	  	  
	 	By: 	 
    
	 	Name: 	James Charuk 
	 	  	  
	 	By: 	 
    
	 	Name: 	Charles Bloomquist 

3 

EXHIBIT A 

AGREEMENT 

 

 

 

 

4 

EXHIBIT B 

INDEMNIFICATION AGREEMENT 

 

 

 

 

 

 

5WWW.EXFILE.COM, INC. --  888.775-4789 --  BOSTON SCIENTIFIC, INC. -- EXHIBIT 10.1 TO FORM 8K

    EXHIBIT
      10.1

     

     

    FIRST
      AMENDMENT

     

    FIRST
      AMENDMENT, dated as of August 17, 2007 (this “Amendment”), to the Credit
      Agreement, dated as of April 21, 2006 (as amended, supplemented or otherwise
      modified from time to time, the “Credit Agreement”), among (i) BOSTON
      SCIENTIFIC CORPORATION, a Delaware corporation (the “Borrower”), (ii) BSC
      INTERNATIONAL HOLDING LIMITED, a company incorporated under the laws of Ireland
      (the “Term Loan Borrower”), (iii) the several banks and other financial
      institutions from time to time parties thereto (the “Lenders”), (iv)
      MERRILL LYNCH CAPITAL CORPORATION, as Syndication Agent (the “Syndication
      Agent”), (v) BEAR STEARNS CORPORATE LENDING INC., DEUTSCHE BANK SECURITIES
      INC. and WACHOVIA BANK, NATIONAL ASSOCIATION, as Co-Documentation Agents (each
      in such capacity, a “Documentation Agent”, and collectively, the
“Documentation Agents”), and (vi) BANK OF AMERICA, N.A., as
      Administrative Agent for the Lenders thereunder (in such capacity, the
“Administrative Agent”).

     

     

    W
      I T
      N E S S E T H:

     

    WHEREAS,
      the Borrower, the Term Loan Borrower, the Lenders, the Syndication Agent, the
      Documentation Agents and the Administrative Agent are parties to the Credit
      Agreement; and

     

    WHEREAS,
      the Borrowers have requested that the Lenders amend the Credit Agreement as
      set
      forth herein; and

     

    WHEREAS,
      the Lenders and the Administrative Agent are willing to agree to such amendment
      to the Credit Agreement, subject to the terms and conditions set forth
      herein;

     

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants contained
      herein, the Borrowers, the Lenders and the Administrative Agent hereby agree
      as
      follows:

     

    SECTION
      1.1.    Defined
      Terms.  Terms
      defined in the Credit Agreement and used herein shall have the meanings given
      to
      them in the Credit Agreement.

     

    SECTION
      1.2.    Amendments
      to Subsection 1.1 (Definitions).  (a)           The
      definition of the term “Consolidated EBITDA” in subsection 1.1 of the Credit
      Agreement is hereby amended by (A) adding after the word “amortization” in
      clause (d) thereof the words “or write-down”, (B) adding after the word
“acquisitions” in clause (e) thereof the phrase "and other strategic alliances,
      inventory step-up charges, non-cash fair value adjustments in connection with
      the equity investment by Abbott Laboratories in the Borrower, and unrealized
      investment impairments", (C) adding after the words “ordinary course of
      business” in clause (b) thereof the phrase ", inventory step-up charges,
      non-cash fair value adjustments in connection with the equity investment by
      Abbott Laboratories in the Borrower, and unrealized investment impairments"
      and
      (D) substituting a comma for the word “and” immediately before clause (f) of
      such definition and by inserting the following clauses (g), (h) and
      (i):

     

    “,
      (g)
      with regard to any period ending on or prior to June 30, 2009, any cash or
      non-cash litigation expenses, including judgments, awards, settlements and
      related legal costs (net of any litigation or settlement income received during
      such period), provided that, solely for the purposes of this definition,
      the aggregate amount of all litigation expenses under this clause (g) shall
      not
      exceed $500,000,000 for any period of four fiscal quarters and $1,000,000,000
      in
      the aggregate, (h) with regard to any period ending on or prior to June 30,
      2009, any cash or non-cash charges in respect of restructurings, plant closings,
      staff reductions or other similar charges, provided that, solely for the
      purposes of this definition, the aggregate amount of all charges under this
      clause (h) shall not exceed $300,000,000 in the aggregate and (i) any income
      or
      expense associated with business combinations 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    following
      the adoption of FASB Statement No. 141(R), "Business Combinations - a
      replacement of FASB Statement No. 141", which would have been treated as a
      cost
      of the acquisition (e.g., as goodwill) under FASB Statement No. 141, "Business
      Combinations",”

    

    (b)           The
      definition of the term “Eurocurrency Rate” in subsection 1.1 of the Credit
      Agreement is hereby amended by deleting “(rounding upward to the nearest 1/100th
      of 1%)”.

    

    SECTION
      1.3.    Amendment
      to Subsection 3.7(a) (Pro Rata Treatment and Payments).  The
      second sentence of subsection 3.7(a) is hereby amended to read as
      follows:

     

    “The
      amount of each principal prepayment of the Term Loans shall be applied to reduce
      the then remaining installments of the Term Loans in direct order of
      maturity.”

     

    SECTION
      1.4.    Amendment
      to Subsection 9.1(a) (Financial Covenants).  Section
      9.1(a) is hereby amended to read as follows:

     

    “Permit
      the Consolidated Leverage Ratio as at the last day of any period of four
      consecutive fiscal quarters of the Borrower to exceed (i) 4.5 to 1.0 on or
      prior
      to December 31, 2008, (ii) 4.0 to 1.0 after December 31, 2008 and on or prior
      to
      June 30, 2009 and (iii) 3.5 to 1.0 thereafter.”

     

    The
      Credit Agreement is further amended by deleting the name and contact details
      for
“Lawrence C. Best” wherever it appears and substituting therefor “Sam R. Leno,
      Fax: 508-650-8951”.

     

    SECTION
      1.5.    Conditions
      to Effectiveness.  This
      Amendment shall become effective on the date (the “Amendment Effective
      Date”) on which (a) the Borrowers, the Administrative Agent and the Majority
      Lenders shall have executed and delivered to the Administrative Agent this
      Amendment, (b) the Borrowers shall have prepaid, or shall have made arrangements
      to prepay substantially simultaneously with this Amendment becoming effective,
      the Term Loans in the aggregate amount of not less than $1,000,000,000 (which
      prepayment shall be applied in accordance with Section 3.7(a) of the Credit
      Agreement as amended by Section 1.3 hereof) and (c) all fees payable to Banc
      of
      America Securities LLC, J.P. Morgan Securities Inc. and any Lender shall have
      been paid.

     

    SECTION
      1.6.    Representation
      and Warranties.  To
      induce the Administrative Agent to enter
      into this Amendment, each Borrower hereby represents and warrants to the
      Administrative Agent and all of the Lenders as of the Amendment Effective Date
      that:

     

    (a)  Corporate
      Power; Authorization; Enforceable Obligations.

     

    (i)  Each
      of
      the Borrower and the Term Loan Borrower has the corporate power and authority,
      and the legal right, to make and deliver this Amendment and to perform the
      Loan
      Documents, as amended by this Amendment, to which it is a party and has taken
      all necessary corporate action to authorize the execution, delivery and
      performance of this Amendment and the performance of the Loan Documents, as
      so
      amended, to which it is a party.

     

    (ii)  No
      consent or authorization of, filing with (other than the Borrower’s public
      filing of the Amendment on Form 8-K), or notice to or other act by or in respect
      of, any Governmental Authority or any other Person is required with respect
      to
      the Borrower or any of its Subsidiaries in connection with the execution and
      delivery of this Amendment or with the performance, validity or enforceability
      of the Loan Documents, as amended by this Amendment, to which the Borrowers
      are
      party.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iii)  This
      Amendment has been duly executed and delivered on behalf of the Borrower and
      the
      Term Loan Borrower.

     

    (iv)  This
      Amendment and each Loan Document, as amended by this Amendment, to which each
      of
      the Borrowers is a party constitutes a legal, valid and binding obligation
      of
      the Borrower and the Term Loan Borrower enforceable against the Borrowers in
      accordance with its terms, subject to the effects of bankruptcy, examination,
      insolvency, fraudulent conveyance, reorganization, moratorium and other similar
      laws relating to or affecting creditors’ rights generally, general equitable
      principles (whether considered in a proceeding in equity or at law) and an
      implied covenant of good faith and fair dealing.

     

    (b)  Representations
      and Warranties.  The representations and warranties made by each
      Borrower in and pursuant to the Loan Documents are true and correct in all
      material respects on and as of the Amendment Effective Date, after giving effect
      to the effectiveness of this Amendment, as if made on and as of the Amendment
      Effective Date.

     

    SECTION
      1.7.    Payment
      of Expenses.  The
      Borrower agrees to pay or reimburse the Administrative Agent for all of its
      reasonable and documented out-of-pocket costs and expenses incurred in
      connection with this Amendment, any other documents prepared in connection
      herewith and the transactions contemplated hereby, including, without
      limitation, the reasonable and documented fees and disbursements of counsel
      to
      the Administrative Agent.

     

    SECTION
      1.8.    No
      Other Amendments; Confirmation.  Except
      as expressly amended, modified and supplemented hereby, the provisions of the
      Credit Agreement and the other Loan Documents are and shall remain in full
      force
      and effect.

     

    SECTION
      1.9.    Governing
      Law; Counterparts.  (a)  This
      Amendment
      and the rights and obligations of the parties hereto shall be governed by,
      and
      construed and interpreted in accordance with, the laws of the State of New
      York.

     

    (b)  This
      Amendment may be executed by one or more of the parties to this Amendment on
      any
      number of separate counterparts, and all of said counterparts taken together
      shall be deemed to constitute one and the same instrument.  This
      Amendment may be delivered by facsimile transmission of the relevant signature
      pages thereof.

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
      executed and delivered by their respective proper and duly authorized officers
      as of the day and year first above written.

     

     

    
      	 	BOSTON
              SCIENTIFIC
              CORPORATION	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
               

            	
              By:
                

            	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

    

     

     

     

     

    
      	 	BSC
              INTERNATIONAL HOLDING LIMITED	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
            	
              By:
                

            	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

    

     

     

     

     

    
      
        	 	
                BANK
                  OF AMERICA, N.A.

                
                  as
                    Administrative Agent and as a Lender

                

              	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
              	
                By:
                  

              	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

       

    

     

     

     

    
      
        
          	 	
                  
                    MERRIL
                      LYNCH CAPITAL CORPORATION,

                    as
                      Syndication Agent and as a Lender

                  

                	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                	
                  By:
                    

                	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

        

         

         

      

    

     

      

    
      
        
          
            	 	
                    
                      
                        BEAR
                          STEARNS CORPORATE LENDING, INC.,

                        as
                          Documentation Agent and as a Lender

                      

                    

                  	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                  	
                    By:
                      

                  	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

          

           

           

        

      

    

     

     

    
      
        
          
            	 	
                    
                      
                        
                          DEUTSCHE
                            BANK SECURITIES INC.,

                          as
                            Documentation Agent and as a Lender

                        

                      

                    

                  	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                  	
                    By:
                      

                  	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

          

           

        

      

    

     

     

     

    
      
        
          
            
              	 	
                      
                        
                          
                            
                              WACHOVIA
                                BANK, NATIONAL ASSOCIATION,

                              as
                                Documentation Agent and as a
                                Lender

                            

                          

                        

                      

                    	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                    	
                      By:
                        

                    	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

            

             

          

        

      

    

     

    
      
        
           

           

          
            
              
                	 	
                        
                          
                            
                               

                            

                          

                        

                      	 
	 	 	as
                        a Lender	 
	 	 	 	 
	 	 	 	 
	
                      	
                        By:
                          

                      	 	 
	 	 	Name 	 
	 	 	Title

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