Document:

Exhibit 
10.2

 

 

                                                                                                                                                            

 

 

AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT

by and among

SEITEL, INC.

and

EACH OF ITS SUBSIDIARIES THAT ARE SIGNATORIES HERETO,

as
Borrowers,

and

WELLS FARGO FOOTHILL, INC.,

as Lender

February 14, 2007

 

 

                                                                                                                                                            

 

 

AMENDED AND RESTATED LOAN AND
SECURITY AGREEMENT

This AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT (this "Agreement"), is entered into as of the Closing Date
(as defined in Section 1.1 hereof), by and among WELLS FARGO FOOTHILL,
INC., a California corporation ("Lender"), SEITEL, INC., a
Delaware corporation ("Parent"), and each of Parent's Subsidiaries
identified on the signature pages hereof (such Subsidiaries, together with
Parent, are referred to hereinafter each individually as a "Borrower",
and individually and collectively, jointly and severally, as the "Borrowers").

The parties agree as follows:

1.         DEFINITIONS AND CONSTRUCTION.

1.1       Definitions.  As used in this Agreement, the following terms
shall have the following definitions:

"Account" means an account (as that term is
defined in the Code), and any and all Supporting Obligations in respect
thereof.

"Account Debtor"
means any Person who is obligated under, with respect to, or on account of, an
Account, chattel paper, or a General Intangible.

"ACH Transactions"
means any cash management or related services (including the Automated Clearing
House processing of electronic funds transfers through the direct Federal
Reserve Fedline system) provided by a Bank Product Provider for the account of
Administrative Borrower or its Domestic Subsidiaries.

"Acquisition"
means the merger of Seitel Acquisition Corp. with and into Parent with Parent
continuing as the surviving corporation that is wholly owned Subsidiary of
Seitel Holdings.

"Additional Documents"
has the meaning set forth in Section 4.4(c).

"Administrative Borrower" has the meaning set forth in Section 16.11.

"Advances" has the
meaning set forth in Section 2.1(a).

"Affiliate" means, as applied to any Person,
any other Person who, directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with,
such Person.  For purposes of this definition, "control" means the possession,
directly or indirectly through one or more intermediaries, of the power to
direct the management and policies of a Person, whether through the ownership
of Stock, by contract, or otherwise; provided,
however, that, for purposes of the definition of Eligible Accounts and Section
7.13 hereof:  (a) any Person which owns directly or indirectly 10% or more
of the Stock having ordinary voting power for the election of directors or
other members of the governing body of a Person or 10% or more of the
partnership or other ownership interests of a Person (other than as a limited
partner of such Person) shall be deemed an Affiliate of such Person, (b) each
director (or comparable manager) of a Person shall be deemed to be an Affiliate
of such Person, and (c) each partnership or joint venture in which a Person is
a partner or fifty percent (50%) or greater-in-interest joint venturer shall be
deemed an Affiliate of such Person.

"Agreement" has
the meaning set forth in the preamble to this Agreement.

"Applicable Prepayment Premium" has the
meaning given to such term in the Fee Letter. 

"Assignee" has the
meaning set forth in Section 14.1(a).

"Authorized Person" means any officer or
employee of Administrative Borrower.

"Availability"
means, as of any date of determination, the amount that Borrowers are entitled
to borrow as Advances hereunder (after giving effect to all then outstanding
Obligations (other than Bank Product Obligations) and all sublimits and
reserves then applicable hereunder).

"Bank Product"
means any financial accommodation extended to Administrative Borrower or its
Domestic Subsidiaries by a Bank Product Provider (other than pursuant to this
Agreement) including:  (a) credit cards, (b) credit card processing services,
(c) debit cards, (d) purchase cards, (e) ACH Transactions, (f) cash management,
including controlled disbursement, accounts or services, or (g) transactions
under Hedge Agreements.

"Bank Product
Agreements" means those agreements entered into from time to time by
Administrative Borrower or its Domestic Subsidiaries with a Bank Product
Provider in connection with the obtaining of any of the Bank Products.

"Bank Product
Obligations" means all obligations, liabilities, contingent reimbursement
obligations, fees, and expenses owing by Administrative Borrower or its
Domestic Subsidiaries to any Bank Product Provider pursuant to or evidenced by
the Bank Product Agreements and irrespective of whether for the payment of
money, whether direct or indirect, absolute or contingent, due or to become
due, now existing or hereafter arising, and including all such amounts that
Administrative Borrower or its Domestic Subsidiaries are obligated to reimburse
to Lender as a result of Lender purchasing participations from, or
executing indemnities or reimbursement obligations to, a Bank Product Provider with respect to the Bank Products provided by such Bank
Product Provider to Administrative Borrower or its Domestic Subsidiaries.

"Bank Product Provider" means Wells Fargo or
any of its Affiliates.

"Bank Product Reserve" means, as of any date
of determination, the amount of reserves that Lender has established (based
upon the Bank Product Providers' reasonable determination of the net credit
exposure in respect of then extant Bank Products) in respect of Bank Products
then provided or outstanding.

"Bankruptcy Code" means United States
Bankruptcy Code, 11 U.S.C. §§ 101, et seq., in effect as of the
date hereof, together with all rules, regulations and interpretations
thereunder or related thereto, as amended, modified, supplemented or recodified
from time to time.

"Bankruptcy Court" means the United States
Bankruptcy Court for the District of Delaware. 

"Base LIBOR Rate" means the greater of (i) a
rate per annum equal to 4%, or (ii) the rate per annum, determined by Lender in
accordance with its customary procedures, and utilizing such electronic or
other quotation sources as it considers appropriate (rounded upwards, if
necessary, to the next 1/100%), to be the rate at which Dollar deposits (for
delivery on the first day of the requested Interest Period) are offered to
major banks in the London interbank market 2 Business Days prior to the
commencement of the requested Interest Period, for a term and in an amount
comparable to the Interest Period and the amount of the LIBOR Rate Loan
requested (whether as an initial LIBOR Rate Loan or as a continuation of an
extant LIBOR Rate Loan or as a conversion of a Base Rate Loan to a LIBOR Rate
Loan) by Administrative Borrower in accordance with this Agreement, which
determination shall be conclusive in the absence of manifest error. 

"Base Rate" means the greater of (i) a rate
per annum equal to 6%, or (ii) the rate of interest announced, from time to
time, within Wells Fargo at its principal office in San Francisco as its "prime
rate", with the understanding that the "prime rate" is one of Wells Fargo's
base rates (not necessarily the lowest of such rates) and serves as the basis
upon which effective rates of interest are calculated for those loans making
reference thereto and is evidenced by the recording thereof after its
announcement in such internal publications as Wells Fargo may designate.

"Base Rate Loan" means the portion of the
Advances that bears interest at a rate determined by reference to the Base
Rate.

"Base Rate Margin" means 0.75%.

"Beneficial Ownership", and all expressions
and terms correlative and analogous thereto, have the meanings ascribed thereto
in Rule 13d-3 under the Exchange Act.

"Benefit Plan" means a "defined benefit
plan" (as defined in Section 3(35) of ERISA) for which any Borrower
or any Domestic Subsidiary or ERISA Affiliate of any Borrower has been an
"employer" (as defined in Section 3(5) of ERISA) within the past
six years.

"Board of Directors" means the board of
directors (or comparable managers) of Parent or any committee thereof duly
authorized to act on behalf of the board of directors (or comparable managers).

"Books" means all of Administrative
Borrower's and its Domestic Subsidiaries' now owned or hereafter acquired books
and records, including all of their ledgers, Records indicating, summarizing,
or evidencing their assets (including the Collateral) or liabilities, and all
of Administrative Borrower's and its Domestic Subsidiaries' Records relating to
their business operations or financial condition, and all computer programs, disk
or tape files, printouts, runs, or other computer prepared information.

"Borrower" and "Borrowers" have the
respective meanings set forth in the preamble to this Agreement.

"Borrower
Collateral" means all of each Borrower's now owned or hereafter acquired
right, title, and interest in and to each of the following:

(a)        all of its Accounts,

(b)        all of its Books,

(c)        all of its Chattel Paper,

(d)        all of its commercial tort claims,

(e)        all of its Deposit Accounts,

(f)         all of its Equipment and fixtures,

(g)        all of its General Intangibles,

(h)        all of its Inventory,

(i)         all of its Investment Property
(including all of its securities and Securities Accounts),

(j)         all of its Negotiable Collateral,

(k)        money or other assets of such Borrower
that now or hereafter come into the possession, custody, or control of the
Lender, 

(l)         all of such Borrower's rights in
respect of Supporting Obligations, and 

(m)       all of the
Proceeds of any of the foregoing.

"Borrowing" means a borrowing hereunder
consisting of Advances.

"Borrowing Base" has the meaning set forth
in Section 2.1(b).

"Borrowing Base Certificate" means a
certificate in the form of Exhibit B attached hereto and otherwise
satisfactory to Lender in its Permitted Discretion.

"Business Day" means any day that is not a Saturday,
Sunday, or other day on which banks are authorized or required to close in the
State of Georgia, except that, if a determination of a Business Day shall
relate to a LIBOR Rate Loan, the term "Business Day" also shall exclude any day
on which banks are closed for dealings in Dollar deposits in the London
interbank market.

"Canadian Subsidiaries" means Seitel
Solutions Canada Ltd., SEIC Partners Limited Partnership, SEIC Holdings, Ltd.,
Olympic Seismic Ltd., and SEIC Trust Administration, Ltd., each of which is an
entity organized under the laws of Alberta, Canada, and any other Subsidary of
Parent that is organized under the laws of a province of Canada. 

"Capital Expenditures" means, with respect
to any Person for any period, the sum of (a) the aggregate of all expenditures
by such Person and its Domestic Subsidiaries during such period that are
capital expenditures as determined in accordance with GAAP, whether such
expenditures are paid in cash or financed, (b) to the extent not covered by
clause (a), the aggregate of all expenditures by such Person and its Domestic
Subsidiaries during such period to acquire by purchase or otherwise the
business or capitalized assets of, or the Stock of, any other Person, and (c)
to the extent not covered by clause (a) or clause (b) preceding, the amount
expended by Parent and its Domestic Subsidiaries to acquire seismic data,
whether for such Person's own account or pursuant to contracts with other
Persons for the acquisition of seismic data, or to otherwise enhance such
Person's seismic data library.

"Capital Lease" means a lease that is
required to be capitalized for financial reporting purposes in accordance with
GAAP.

"Capitalized Lease Obligation" means that
portion of the obligations under a Capital Lease that is required to be
capitalized in accordance with GAAP.

"Cash Equivalents" means (a) marketable
direct obligations issued or unconditionally guaranteed by the United States or
issued by any agency thereof and backed by the full faith and credit of the
United States, in each case maturing within 1 year from the date of acquisition
thereof, (b) marketable direct obligations issued by any state of the
United States or any political subdivision of any such state or any public
instrumentality thereof maturing within 1 year from the date of acquisition
thereof and, at the time of acquisition, having one of the two highest ratings
obtainable from either Standard & Poor's Rating Group ("S&P")
or Moody's Investor Service, Inc. ("Moody's"), (c) commercial paper
maturing no more than 270 days from the date of creation thereof and, at the
time of acquisition, having a rating of at least A-1, from S&P or at least
P-1 from Moody's, (d) certificates of deposit or bankers' acceptances
maturing within 1 year from the date of acquisition thereof issued by any bank
organized under the laws of the United States or any state thereof having at
the date of acquisition thereof combined capital and surplus of not less than
$250,000,000, (e) demand Deposit Accounts maintained with any bank
organized under the laws of the United States or any state thereof, and
(f) Investments in money market funds established by Federally insured
institutions or registered mutual funds substantially all of whose assets are
invested in the types of assets described in clauses (a) through (e)
above.

"Cash Management Account" has the meaning
set forth in Section 2.7(a).

"Cash Management Agreements" means those
certain cash management agreements, in form and substance satisfactory to
Lender in the exercise of its Permitted Discretion, each of which is among
Administrative Borrower or one of its Domestic Subsidiaries, Lender, and one of
the Cash Management Banks.

"Cash Management Bank" has the meaning set
forth in Section 2.7(a).

"Cash Margin" means, for Borrowers on a
consolidated basis (exclusive of amounts attributable to non-U.S. operations), cash
resales of seismic data after termination of any applicable exclusivity period,
plus all other cash revenue other than cash revenue derived from seismic data
acquisitions, plus gain on sale of seismic data, less cash cost of sales, and less
cash selling, general and administrative expenses (but excluding expenses
incurred in connection with the Acquisition and Senior Note Offering), in each
instance, before depreciation and amortization expense and determined in
accordance with GAAP.

"Change of Control" means that (a) ValueAct
Capital ceases to directly own at least 50.1% of the Stock of Seitel Holdings,
(b) any Person, other than ValueAct Capital, has the ability to elect the board
of directors of Seitel Holdings, (c) Seitel Holdings ceases to own 100% of the
Stock of Parent, (d) a majority of the members of the Board of Directors do not
constitute Continuing Directors, or (e) except as expressly permitted by Section
7.3 or 7.4(e) below, any Borrower ceases to own, directly or
indirectly, and control that percentage of the outstanding Stock of each of its
Domestic Subsidiaries, that such Borrower owns as of the Closing Date, or (f) the
occurrence of a "change of control" as defined in the Senior Notes or Senior
Indenture.

"Chattel Paper" means chattel paper (as that
term is defined in the Code) and includes tangible chattel paper and electronic
chattel paper.

"Closing Date" means the first date on which
both (a) the Loan Documents are executed by the Borrowers, the Guarantors, and
any other applicable third party and (b) each of the conditions precedent set
forth in Section 3.1 have been satisfied or have been waived in writing
by Lender.

"Closing Date Business Plan" means the set
of financial statement projections of Parent and its Subsidaries for fiscal
years 2007, 2008, and 2009 attached hereto as Exhibit A.

"Code" means the New York Uniform Commercial
Code, as in effect from time to time.

"Collateral"
means the Borrower Collateral and all other assets and interests in assets and
proceeds thereof now owned or hereafter acquired by Administrative Borrower or
its Domestic Subsidiaries in or upon which a Lien is granted under any of the
Loan Documents.

"Collateral Access Agreement" means a
landlord waiver, bailee letter, or acknowledgement agreement of any lessor,
warehouseman, processor, consignee, or other Person in possession of, having a
Lien upon, or having rights or interests in any significant amount of
Administrative Borrower's or its Domestic Subsidiaries' Books, Equipment or
Inventory, in each case, in form and substance satisfactory to Lender in the
exercise of its Permitted Discretion.

"Collections" means all cash, checks,
notes, instruments, and other items of payment (including receivables,
insurance proceeds, proceeds of cash sales, rental proceeds, proceeds of
Collateral, and tax refunds).

"Commercial Tort Claim Assignment" has the
meaning set forth in Section 4.4(b).

"Compliance Certificate" means a certificate
substantially in the form of Exhibit C delivered by the chief financial
officer or the chief accounting officer (in such capacity, and not
individually) of Parent to Lender.

"Continuing Director" means (a) any member
of the Board of Directors who was a director (or comparable manager) of Parent
on the Closing Date immediately following the Acquisition, and (b) any
individual who becomes a member of the Board of Directors after the Closing
Date if such individual was appointed or nominated for election to the Board of
Directors by a majority of the Continuing Directors or whose nomination by
ValueAct Capital was approved by a majority of the Continuing Directors, but
excluding any such individual originally proposed for election in opposition to
the Board of Directors in office at the Closing Date in an actual or threatened
election contest relating to the election of the directors (or comparable
managers) of Parent and whose initial assumption of office resulted from such
contest or the settlement thereof.

"Control" means the power to direct the
management and policies of a Person, directly or indirectly, whether through
ownership or voting securities or other beneficial interests, by contract or
otherwise. 

"Control Agreement" means a control
agreement, in form and substance satisfactory to Lender in the exercise of its
Permitted Discretion, executed and delivered by Administrative Borrower or one
of its Domestic Subsidiaries, Lender, and the applicable securities
intermediary with respect to a Securities Account or a bank with respect to a
Deposit Account.

"Daily Balance" means, as of any date of
determination and with respect to any Obligation, the amount of such Obligation
owed at the end of such day.

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

"Deposit Account" means any deposit account
(as that term is defined in the Code), including any of Borrowers' lock box
accounts, collection accounts, deposit accounts, concentration accounts, and
asset sale accounts containing cash proceeds of the Collateral or Advances made
to the Borrowers, all funds now or hereafter held therein, and all present or
future claims, demands, and choses in action in respect thereof, provided,
however, that the term shall not include payroll accounts, medical
disbursement accounts, or the Travelers' Collateral Account.

"Designated Account" means the Deposit
Account of Administrative Borrower identified on Schedule D-1.

"Designated Account Bank" has the meaning
ascribed thereto on Schedule D‐1.

"Disbursement Letter" means an instructional
letter executed and delivered by Administrative Borrower to Lender regarding
the extensions of credit to be made on the Closing Date, the form and substance
of which is satisfactory to Lender.

"Dollars" or "$" means United States
dollars.

"Domestic Subsidiary" means those
Subsidiaries of the Parent and the other Borrowers that are organized under the
laws of a jurisdiction within the continental United States of America.  The
Domestic Subsidiaries, as of the Closing Date, are set forth on Exhibit D
attached hereto.

"Eligible Accounts" means those Accounts
created by one of Borrowers in the ordinary course of its business, that arise
out of its sale of goods, lease or licensing of data, or rendition of services,
that comply with each of the representations and warranties respecting Eligible
Accounts made in the Loan Documents, and that are not excluded as ineligible by
virtue of one or more of the excluding criteria set forth below; provided,
however, that such criteria may be revised from time to time by Lender
in Lender's Permitted Discretion to address the results of any audit performed
by Lender from time to time after the Closing Date.  In determining the amount
to be included, Eligible Accounts shall be calculated net of customer deposits
and unapplied cash.  Eligible Accounts shall not include the following:

(a)        Accounts that the Account Debtor has
failed to pay within 90 days of original invoice date,

(b)        Accounts owed by an Account Debtor (or
its Affiliates) where 50% or more in dollar amount of the aggregate Accounts
owed by that Account Debtor and its Affiliates are deemed ineligible under
clause (a) above,

(c)        Accounts with respect to which the
Account Debtor is an Affiliate of any Borrower or an employee or agent of any
Borrower or any Affiliate of any Borrower,

(d)        Accounts arising in a transaction
wherein goods are placed on consignment or are sold pursuant to a guaranteed
sale, a sale or return, a sale on approval, a bill and hold, or any other
similar terms by reason of which the payment by the Account Debtor may be
conditional,

(e)        Accounts that are not payable in
Dollars,

(f)         Accounts with respect to which the
Account Debtor either (i) does not maintain its chief executive office in
the United States, or (ii) is not organized under the laws of the United States
or any State or Commonwealth thereof, or (iii) is the government of any foreign
country or sovereign state, or of any state, province, municipality, or other
political subdivision thereof, or of any department, agency, public
corporation, or other instrumentality thereof, unless (y) the Account is
supported by an irrevocable letter of credit satisfactory to Lender (as to
form, substance, and issuer or domestic confirming bank) that has been
delivered to Lender and is directly drawable by Lender, or (z) the Account is
covered by credit insurance in form, substance, and amount, and by an insurer,
satisfactory to Lender,

(g)        Accounts with respect to which the
Account Debtor is either (i) the United States or any department, agency, or
instrumentality of the United States (exclusive, however, of Accounts with
respect to which the applicable Borrower has complied, to the reasonable
satisfaction of Lender, with the Assignment of Claims Act, 31 USC § 3727), or
(ii) any state of the United States (exclusive, however, of Accounts with
respect to which the applicable Borrower has complied, to the satisfaction of
Lender in the exercise of its Permitted Discretion, with all applicable state
assignment-of-claims statutes),

(h)        Accounts with respect to which the
Account Debtor is a creditor of any Borrower, has or has asserted a right of
setoff, or has disputed its obligation to pay all or any portion of the Account,
but only to the extent of the amount of such claim, right of setoff, or
dispute, 

(i)         Accounts with respect to an Account
Debtor whose total obligations owing to Borrowers exceed 10% (such percentage
as applied to a particular Account Debtor being subject to reduction by Lender
in its Permitted Discretion if the creditworthiness of such Account Debtor
deteriorates) of all Eligible Accounts, to the extent of the obligations owing
by such Account Debtor in excess of such percentage; provided, however, that,
in each case, the amount of Eligible Accounts that are excluded because they
exceed the foregoing percentage shall be determined by Lender based on all of
the otherwise Eligible Accounts prior to giving effect to any eliminations
based upon the foregoing concentration limit,

(j)         Accounts with respect to which the
Account Debtor is subject to an Insolvency Proceeding, is not Solvent, has gone
out of business, or as to which a Borrower has received notice of an imminent
Insolvency Proceeding or a material impairment of the financial condition of
such Account Debtor,

(k)        Accounts with respect to which the
Account Debtor is located in a state or jurisdiction (e.g., New Jersey,
Minnesota, and West Virginia) that requires, as a condition to access to the courts
of such jurisdiction, that a creditor qualify to transact business, file a
business activities report or other report or form, or take one or more other
actions, unless the applicable Borrower has so qualified, filed such reports or
forms, or taken such actions (and, in each case, paid any required fees or
other charges), except to the extent that the applicable Borrower may qualify
subsequently as a foreign entity authorized to transact business in such state
or jurisdiction and gain access to such courts, without incurring any cost or
penalty viewed by Lender to be significant in amount, and such later
qualification enables access to such courts to enforce payment of such Account,

(l)         Accounts, the collection of which,
Lender, in its Permitted Discretion, believes to be doubtful by reason of the
Account Debtor's financial condition, 

(m)       Accounts that are not subject to a valid
and perfected first priority Lender's Lien, 

(n)        Except for Accounts on which the
Account Debtor is obligated to pay regardless of the failure of any subsequent
performance, Accounts with respect to which (i) the goods giving rise to such
Account have not been shipped and billed to the Account Debtor, or (ii) the
services giving rise to such Account have not been performed and billed to the
Account Debtor, or 

(o)        Except for Accounts on which the
Account Debtor is obligated to pay regardless of the failure of any subsequent
performance, Accounts that represent the right to receive progress payments or
other advance billings that are due prior to the completion of performance by
the applicable Borrower of the subject contract for goods or services.

"Eligible Short-Term Accounts" means those
Eligible Accounts that are not Eligible Long-Term Accounts and that are less
than 90 days from original invoice date.

"Eligible Long-Term Accounts" means those
Eligible Accounts that are contracts with terms providing for periods of
performance from 30 days to 18 months, where the Account Debtor is required to
make specific payments over the term of the contract.

"Eligible Transferee" means (a) a
commercial bank organized under the laws of the United States, or any state
thereof, and having total assets in excess of $250,000,000, (b) a
commercial bank organized under the laws of any other country which is a member
of the Organization for Economic Cooperation and Development or a political
subdivision of any such country and which has total assets in excess of
$250,000,000, provided that such bank is acting through a branch or agency
located in the United States, (c) a finance company, insurance company, or
other financial institution or fund that is engaged in making, purchasing, or
otherwise investing in commercial loans in the ordinary course of its business
and having (together with its Affiliates) total assets in excess of
$250,000,000, (d) any Affiliate (other than individuals) of Lender, (e) so
long as no Event of Default has occurred and is continuing, any other Person
approved by Administrative Borrower (which approval of Administrative Borrower
shall not be unreasonably withheld, delayed, or conditioned), and
(f) during the continuation of an Event of Default, any other Person
approved by Lender.

"Environmental Actions" means any complaint,
summons, citation, notice, directive, order, claim, litigation, investigation,
judicial or administrative proceeding, judgment, letter, or other communication
from any Governmental Authority, or any third party involving violations of
Environmental Laws or releases of Hazardous Materials (a) from any assets,
properties, or businesses of any Borrower, any Domestic Subsidiary of a
Borrower, or any of their predecessors in interest, (b) from adjoining
properties or businesses to or onto any property occupied by any Borrower or
Domestic Subsidiary, or (c) from or onto any facilities which received
Hazardous Materials generated by any Borrower, any Domestic Subsidiary of a
Borrower, or any of their predecessors in interest.

"Environmental Law" means any applicable
federal, state, provincial, foreign or local statute, law, rule, regulation,
ordinance, code, binding and enforceable guideline, binding and enforceable
written policy or rule of common law now or hereafter in effect and in each
case as amended, or any judicial or administrative interpretation thereof, including
any judicial or administrative order, consent decree or judgment, to the extent
binding on any Borrower or any Domestic Subsidiary of a Borrower, relating to
the environment, employee health and safety, or Hazardous Materials, including
CERCLA; RCRA; the Federal Water Pollution Control Act, 33 USC § 1251 et seq.;
the Toxic Substances Control Act, 15 USC, § 2601 et seq.;
the Clean Air Act, 42 USC § 7401 et seq.; the Safe Drinking Water
Act, 42 USC. § 3803 et seq.; the Oil Pollution Act of 1990, 33 USC.
§ 2701 et seq.; the Emergency Planning and the Community
Right-to-Know Act of 1986, 42 USC. § 11001 et seq.; the
Hazardous Material Transportation Act, 49 USC § 1801 et seq.;
and the Occupational Safety and Health Act, 29 USC. §651 et seq.
(to the extent it regulates occupational exposure to Hazardous Materials); any
state and local or foreign counterparts or equivalents, in each case as amended
from time to time.

"Environmental Liabilities and Costs" means
all liabilities, monetary obligations, Remedial Actions, losses, damages,
punitive damages, consequential damages, treble damages, costs and expenses
(including all reasonable fees, disbursements and expenses of counsel, experts,
or consultants and costs of investigation and feasibility studies), fines,
penalties, sanctions, and interest incurred as a result of any claim or demand
by any Governmental Authority or any third party, and which relate to any
Environmental Action.

"Environmental Lien" means any Lien in favor
of any Governmental Authority for Environmental Liabilities and Costs.

"Equipment" means equipment (as that term is
defined in the Code) and includes machinery, machine tools, motors, furniture,
furnishings, fixtures, vehicles (including motor vehicles and trailers),
computer hardware, tools, parts, and goods (other than consumer goods, farm
products, or Inventory), wherever located, including all attachments,
accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing.

"ERISA" means the Employee Retirement Income
Security Act of 1974, as amended, and any successor statute thereto.  

"ERISA Affiliate" means (a) any Person
subject to ERISA whose employees are treated as employed by the same employer
as the employees of a Borrower or a Domestic Subsidiary of a Borrower under IRC
Section 414(b), (b) any trade or business subject to ERISA whose employees are
treated as employed by the same employer as the employees of a Borrower or a
Domestic Subsidiary of a Borrower under IRC Section 414(c), (c) solely for
purposes of Section 302 of ERISA and Section 412 of the IRC, any organization
subject to ERISA that is a member of an affiliated service group of which a
Borrower or a Domestic Subsidiary of a Borrower is a member under IRC Section
414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412 of
the IRC, any Person subject to ERISA that is a party to an arrangement with a
Borrower or a Domestic Subsidiary of a Borrower and whose employees are
aggregated with the employees of a Borrower or a Domestic Subsidiary of a
Borrower under IRC Section 414(o).

"Event of Default" has the meaning set forth
in Section 8.

"Excess Availability" means, as of any date
of determination, the amount equal to Availability, plus Qualified Cash,
minus the aggregate amount, if any, of all trade payables of Borrowers
and their Domestic Subsidiaries aged in excess of their historical levels with
respect thereto and all book overdrafts of Borrowers and their Domestic
Subsidiaries in excess of their historical practices with respect thereto, in
each case as determined by Lender in its Permitted Discretion.

"Exchange Act" means the Securities Exchange
Act of 1934, as in effect from time to time.

"Existing Notes" means Parent's existing 11.75%
unsecured fixed term senior notes.

"Fee Letter" means that certain fee letter
agreement executed and delivered by each Borrower in favor of Lender, in form and
substance satisfactory to Lender in the exercise of its Permitted Discretion.

"FEIN" means Federal Employer Identification
Number.

"Field Examination Fee" shall have the
meaning set forth in Section 2.11(d).

"Funding Date" means the date on which a
Borrowing occurs.

"Funding Losses" has the meaning set forth
in Section 2.13(b)(ii).

"GAAP" means generally accepted accounting
principles as in effect from time to time in the United States, consistently
applied.

"General Intangibles" means general
intangibles (as that term is defined in the Code), including payment
intangibles, contract rights, rights to payment, rights arising under common
law, statutes, or regulations, choses or things in action, goodwill, patents,
trade names, trade secrets, trademarks, servicemarks, copyrights, blueprints,
drawings, purchase orders, customer lists, monies due or recoverable from
pension funds, route lists, rights to payment and other rights under any
royalty or licensing agreements, infringement claims, computer programs,
information contained on computer disks or tapes, software, seismic data (to
the extent not characterized as inventory), literature, reports, catalogs,
insurance premium rebates, tax refunds, and tax refund claims, and any and all Supporting
Obligations in respect thereof, and any other personal property other than
Accounts, Deposit Accounts, goods, Investment Property, and Negotiable
Collateral.

"Governing Documents" means, with respect to
any Person, the certificate or articles of incorporation, by-laws, or other
organizational documents of such Person.

"Governmental Authority" means any federal,
state, local, or other governmental or administrative body, instrumentality,
department, or agency or any court, tribunal, administrative hearing body,
commission, or other similar dispute-resolving panel or body acting under the
authority of government.

"Guarantor" means each Domestic Subsidiary of
Parent that is not a Borrower.

"Guarantor Security Agreement" means one or
more security agreements or amended and restated security agreements executed
and delivered by each Guarantor in favor of Lender, in each case, in form and
substance satisfactory to Lender in the exercise of its Permitted Discretion.

"Guaranty" means that certain amended and
restated general continuing guaranty executed and delivered by each Guarantor
in favor of Lender and the Bank Product Providers, in form and substance
satisfactory to Lender in the exercise of its Permitted Discretion.

"Hazardous Materials" means
(a) substances that are defined or listed in, or otherwise classified
pursuant to, any applicable laws or regulations as "hazardous substances,"
"hazardous materials," "hazardous wastes," "toxic substances," or any other
formulation intended to define, list, or classify substances by reason of
deleterious properties such as ignitability, corrosivity, reactivity,
carcinogenicity, reproductive toxicity, or "EP toxicity", (b) oil, petroleum,
or petroleum derived substances, natural gas, natural gas liquids, synthetic
gas, drilling fluids, produced waters, and other wastes associated with the
exploration, development, or production of crude oil, natural gas, or geothermal
resources, (c) any flammable substances or explosives or any radioactive
materials, and (d) asbestos in any form or electrical equipment that contains
any oil or dielectric fluid containing levels of polychlorinated biphenyls in
excess of 50 parts per million.

"Hedge Agreement" means any and all
agreements or documents now existing or hereafter entered into by any Borrower
that provide for an interest rate, credit, commodity or equity swap, cap,
floor, collar, forward foreign exchange transaction, currency swap, cross
currency rate swap, currency option, or any combination of, or option with
respect to, these or similar transactions, for the purpose of hedging any
Borrower's exposure to fluctuations in interest or exchange rates, loan, credit
exchange, security or currency valuations or commodity prices.

"Indebtedness" means (a) all obligations for
borrowed money, (b) all obligations evidenced by bonds, debentures, notes, or
other similar instruments and all reimbursement or other obligations in respect
of letters of credit, bankers acceptances, interest rate swaps, or other
financial products, (c) all obligations as a lessee under Capital Leases, (d)
all obligations or liabilities of others secured by a Lien on any asset of a
Person or its Domestic Subsidiaries, irrespective of whether such obligation or
liability is assumed, (e) all obligations to pay the deferred purchase price of
assets (other than trade payables incurred in the ordinary course of business
and repayable in accordance with customary trade practices), (f) all
obligations owing under Hedge Agreements, and (g) any obligation
guaranteeing or intended to guarantee (whether directly or indirectly
guaranteed, endorsed, co-made, discounted, or sold with recourse) any
obligation of any other Person that constitutes Indebtedness under any of
clauses (a) through (f) above.

"Indemnified Liabilities" has the meaning
set forth in Section 11.3.

"Indemnified Person" has the meaning set
forth in Section 11.3.

"Insolvency Proceeding" means any proceeding
commenced by or against any Person under any provision of the Bankruptcy Code
or under any other state or federal bankruptcy or insolvency law, assignments
for the benefit of creditors, formal or informal moratoria, compositions,
extensions generally with creditors, or proceedings seeking reorganization,
arrangement, or other similar relief.

"Intercompany Subordination Agreement" means
an amended and restated subordination agreement executed and delivered by
Borrowers and each of their Domestic Subsidiaries and Lender, the form and
substance of which is satisfactory to Lender in the exercise of its Permitted
Discretion.

"Interest Expense" means, for any period,
the aggregate of the interest expense of Parent and its Domestic Subsidiaries
for such period, determined on a consolidated basis in accordance with GAAP.

"Interest Period" means, with respect to
each LIBOR Rate Loan, a period commencing on the date of the making of such
LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan or the conversion of
a Base Rate Loan to a LIBOR Rate Loan) and ending 1, 2, or 3 months thereafter;
provided, however, that (a) if any Interest Period would end on a
day that is not a Business Day, such Interest Period shall be extended (subject
to clauses (c)-(e) below) to the next succeeding Business Day, (b) interest
shall accrue at the applicable rate based upon the LIBOR Rate from and
including the first day of each Interest Period to, but excluding, the day on
which any Interest Period expires, (c) any Interest Period that would end on a
day that is not a Business Day shall be extended to the next succeeding
Business Day unless such Business Day falls in another calendar month, in which
case such Interest Period shall end on the next preceding Business Day, (d)
with respect to an Interest Period that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such Interest Period), the Interest Period
shall end on the last Business Day of the calendar month that is 1, 2, or 3
months after the date on which the Interest Period began, as applicable, and
(e) Borrowers (or Administrative Borrower on behalf thereof) may not elect an
Interest Period which will end after the Maturity Date.

"Inventory" means inventory (as that term is
defined in the Code) (including seismic data to the extent the same is
characterized as a good).

"Investment" means, with respect to any
Person, any investment by such Person in any other Person (including Affiliates)
in the form of loans, guarantees, advances, or capital contributions (excluding
(a) commission, travel, and similar advances to officers and employees of such
Person made in the ordinary course of business, and (b) bona fide
Accounts arising in the ordinary course of business consistent with past
practices), purchases or other acquisitions of Indebtedness, Stock, or all or
substantially all of the assets of such other Person (or of any division or
business line of such other Person), and any other items that are or would be
classified as investments on a balance sheet prepared in accordance with GAAP.

"Investment Property" means investment
property (as that term is defined in the Code) other than any Stock of any Subsidiary that is organized under
the laws of a jurisdiction outside of the United States, and
any and all Supporting Obligations in respect thereof.

"IRC" means the Internal Revenue Code of
1986, as in effect from time to time.

"L/C" has the meaning set forth in Section
2.12(a).

"L/C Disbursement" means a payment made by
Lender pursuant to a Letter of Credit.

"L/C Undertaking" has the meaning set forth
in Section 2.12(a).

"Lender" has the meaning set forth in the
preamble to this Agreement.

"Lender Expenses" means all (a) costs or
expenses (including taxes, and insurance premiums) required to be paid by a
Borrower or its Domestic Subsidiaries under any of the Loan Documents that are
paid, advanced, or incurred by Lender, (b) fees or charges paid or incurred by
Lender in connection with Lender's transactions with Borrowers or their
Domestic Subsidiaries, including, fees or charges for photocopying,
notarization, couriers and messengers, telecommunication, public record
searches (including tax lien, litigation, and UCC searches and including searches
with the patent and trademark office, the copyright office, or the department
of motor vehicles), filing, recording, publication, appraisal (including
periodic collateral appraisals or business valuations to the extent of the fees
and charges (and up to the amount of any limitation) contained in this
Agreement, real estate surveys, real estate title policies and endorsements,
and environmental audits, but excluding Lender's normal overhead expenses, (c)
costs and expenses incurred by Lender in the disbursement of funds to or for
the account of Borrowers (by wire transfer or otherwise), (d) charges paid or
incurred by Lender resulting from the dishonor of checks, (e) reasonable costs
and expenses paid or incurred by Lender to correct any default or enforce any
provision of the Loan Documents, or in gaining possession of, maintaining,
handling, preserving, storing, shipping, selling, preparing for sale, or
advertising to sell the Collateral, or any portion thereof, irrespective of
whether a sale is consummated, (f) audit fees and expenses of Lender related to
audit examinations of the Books to the extent of the fees and charges (and up
to the amount of any limitation) contained in this Agreement, (g) reasonable
costs and expenses of third party claims or any other suit paid or incurred by
Lender in enforcing or defending the Loan Documents or in connection with the
transactions contemplated by the Loan Documents or Lender's relationship with
any Borrower or any Domestic Subsidiary of a Borrower, (h) Lender's reasonable
costs and expenses (including attorneys' fees) incurred in advising,
structuring, drafting, reviewing, administering, syndicating, or amending the
Loan Documents, but excluding Lender's normal overhead expenses, and (i)
Lender's reasonable costs and expenses (including attorneys, accountants,
consultants, and other advisors fees and expenses) incurred in terminating,
enforcing (including attorneys, accountants, consultants, and other advisors'
fees and expenses incurred in connection with a "workout," a "restructuring,"
or an Insolvency Proceeding concerning any Borrower or any Domestic Subsidiary
of a Borrower or in exercising rights or remedies under the Loan Documents), or
defending the Loan Documents, irrespective of whether suit is brought, or in
taking any Remedial Action concerning the Collateral.

"Lender-Related Person" means Lender,
together with its Affiliates, officers, directors, employees, attorneys, and
agents.

"Lender's Account" means the account
identified on Schedule L-1. 

"Lender's Liens" means the Liens granted by
Borrowers or Guarantors to Lender under this Agreement or the other Loan
Documents.

"Letter of Credit" means an L/C or an L/C
Undertaking, as the context requires.

"Letter of Credit Usage" means, as of any
date of determination, the aggregate undrawn amount of all outstanding Letters
of Credit.

"LIBOR Deadline" has the meaning set forth
in Section 2.13(b)(i).

"LIBOR Notice" means a written notice in the
form of Exhibit L-1.

"LIBOR Option" has the meaning set forth in Section
2.13(a).

"LIBOR Rate" means, for each Interest Period
for each LIBOR Rate Loan, the rate per annum determined by Lender (rounded
upwards, if necessary, to the next 1/100%) by dividing (a) the Base
LIBOR Rate for such Interest Period, by (b) 100% minus the Reserve
Percentage.  The LIBOR Rate shall be
adjusted on and as of the effective day of any change in the Reserve
Percentage.

"LIBOR Rate Loan" means each portion of an
Advance that bears interest at a rate determined by reference to the LIBOR
Rate.

"LIBOR Rate Margin" means 2.50%.

"Lien" means any interest in an asset
securing an obligation owed to, or a claim by, any Person other than the owner
of the asset, irrespective of whether (a) such interest is based on the
common law, statute, or contract, (b) such interest is recorded or
perfected, and (c) such interest is contingent upon the occurrence of some
future event or events or the existence of some future circumstance or
circumstances.  Without limiting the generality of the foregoing, the term "Lien"
includes the lien or security interest arising from a mortgage, deed of trust,
encumbrance, pledge, hypothecation, assignment, deposit arrangement, security
agreement, conditional sale or trust receipt, or from a lease, consignment, or
bailment for security purposes and also includes reservations, exceptions,
encroachments, easements, rights-of-way, covenants, conditions, restrictions,
leases, and other title exceptions and encumbrances affecting Real Property.

"Loan Account" has the meaning set forth in Section
2.10. 

"Loan Documents" means this Agreement, the
Fee Letter, the Bank Product Agreements, the Cash Management Agreements, the
Control Agreements, the Disbursement Letter, the Guarantor Security Agreement,
the Guaranty, the Intercompany Subordination Agreement, the Letters of Credit,
the Officers' Certificate, the Stock Pledge Agreements, the Trademark Security
Agreement, any note or notes executed by a Borrower in connection with this
Agreement and payable to Lender, and any other agreement entered into, now or
in the future, by any Borrower and Lender in connection with this Agreement.

"Loan Parties" means each Borrower and each
Guarantor.

"Material Adverse Change" means (a) a
material adverse change in the business, prospects, operations, results of
operations, assets, liabilities or condition (financial or otherwise) of
Borrowers and their Domestic Subsidiaries, taken as a whole, (b) a
material impairment of a Borrower's or a Domestic Subsidiary's ability to
perform its obligations under the Loan Documents to which it is a party or of
Lender's ability to enforce the Obligations or realize upon the Collateral, or
(c) a material impairment of the enforceability or priority of the
Lender's Liens with respect to the Collateral as a result of an action or
failure to act on the part of a Borrower or a Guarantor.

"Material Domestic Subsidiary" means each
Domestic Subsidiary that is not a Non-Material Domestic Subsidiary.

"Maturity Date" has the meaning set forth in
Section 3.5. 

"Maximum Revolver Amount" means Twenty-Five
Million Dollars ($25,000,000.00).

"Negotiable Collateral" means letters of
credit, letter of credit rights, instruments, promissory notes, drafts, and Chattel
Paper, and any and all Supporting Obligations in respect thereof.

"Net Cash Capital Expenditures" means, with
respect to any period of determination, Borrowers' and their Domestic
Subsidiaries' aggregate Capital Expenditures during such period as determined
in accordance with GAAP less the sum of (a) cash received from customers as underwriting
of such Capital Expenditures during such period of determination and (b) the
amount of non-monetary exchanges of seismic data accounted for as Capital
Expenditures in accordance with GAAP during the applicable period of
determination, in each case as approved by Lender in its Permitted Discretion. 

"Non-Material Domestic Subsidiary" means
each and any Domestic Subsidiary listed on Exhibit E attached hereto,
together with such additional Domestic Subsidiaries as may be added hereto from
time to time with the prior written consent of Lender; provided, however,
that any Domestic Subsidiary shall cease to be a Non-Material Domestic
Subsidiary in the event that, and at such time as, such Domestic Subsidiary
owns assets having a fair market value in excess of Two Hundred Fifty Thousand
Dollars $250,000.00) (exclusive of assets constituting intercompany
receivables, intercompany note payables, and similar intercompany balances).

"Obligations" means (a) all loans, Advances,
debts, principal, interest (including any interest that, but for the
commencement of an Insolvency Proceeding, would have accrued), contingent
reimbursement obligations with respect to outstanding Letters of Credit,
premiums, liabilities (including all amounts charged to the Loan Account
pursuant hereto), obligations (including indemnification obligations), fees,
charges, costs, Lender Expenses (including any fees or expenses that, but for
the commencement of an Insolvency Proceeding, would have accrued), guaranties,
covenants, and duties of any kind and description owing by Borrowers to Lender
pursuant to or evidenced by the Loan Documents and irrespective of whether for
the payment of money, whether direct or indirect, absolute or contingent, due
or to become due, now existing or hereafter arising, and including all interest
not paid when due and all Lender Expenses that Borrowers are required to pay or
reimburse by the Loan Documents, by law, or otherwise, and (b) all Bank Product
Obligations.  Any reference in this Agreement or in the Loan Documents to the
Obligations shall include all extensions, modifications, renewals, or
alterations thereof, both prior and subsequent to any Insolvency Proceeding.

"Officers' Certificate" means the
representations and warranties of officers form submitted by Lender to
Administrative Borrower, together with Borrowers' completed responses to the
inquiries set forth therein, the form and substance of such responses to be
satisfactory to Lender.

"Outstanding Notes" means the Senior Notes
and the Existing Notes not tendered for payment in connection with the
Acquisition and Senior Note Offering. 

"Overadvance" has the meaning set forth in Section
2.5. 

"Parent" has the meaning set forth in the
preamble to this Agreement.

"Parent Stock Pledge Agreement" means a
stock pledge agreement, in form and substance satisfactory to Lender in the
exercise of its Permitted Discretion, executed and delivered by Seitel Holdings
with respect to Seitel Holdings' equity ownership in Parent.

 "Participant" has the meaning set forth in Section
14.1(d).

"Permitted Discretion" means a determination
made in the exercise of reasonable (from the perspective of a secured
asset-based lender) business judgment.

"Permitted Dispositions" means (a) sales or
other dispositions of Equipment that is substantially worn, damaged, or
obsolete in the ordinary course of business, (b) sales of Inventory to buyers
in the ordinary course of business (which, in the case of Borrowers, shall
include seismic data exchanges consistent with past practice), (c) the use or
transfer of money or Cash Equivalents in a manner that is not prohibited by the
terms of this Agreement or the other Loan Documents, and (d) the licensing, on
a non-exclusive basis, of seismic data, patents, trademarks, copyrights, and
other intellectual property rights in the ordinary course of business.

"Permitted Investments" means (a)
Investments in cash and Cash Equivalents, (b) Investments in negotiable
instruments for collection, (c) advances made in connection with purchases of
seismic data, goods or services in the ordinary course of business, and (d)
Investments received in settlement of amounts due to a Borrower or any
Subsidiary of a Borrower effected in the ordinary course of business or owing
to a Borrower or any Subsidiary of a Borrower as a result of Insolvency
Proceedings involving an Account Debtor or upon the foreclosure or enforcement
of any Lien in favor of a Borrower or any Subsidiary of a Borrower.

"Permitted Liens" means (a) Liens held by
Lender, (b) Liens for unpaid taxes that either (i) are not yet
delinquent, or (ii) do not constitute an Event of Default hereunder and
are the subject of Permitted Protests, (c) Liens set forth on Schedule P-1,
(d) the interests of lessors under operating leases, (e) purchase money Liens
or the interests of lessors under Capital Leases to the extent that such Liens
or interests secure Permitted Purchase Money Indebtedness and so long as such
Lien attaches only to the asset purchased or acquired and the proceeds thereof,
(f) Liens arising by operation of law in favor of warehousemen, landlords,
carriers, mechanics, materialmen, laborers, or suppliers, incurred in the
ordinary course of Borrowers' business and not in connection with the borrowing
of money, and which Liens either (i) are for sums not yet delinquent, or
(ii) are the subject of Permitted Protests, (g) Liens arising from
deposits made in connection with obtaining worker's compensation or other
unemployment insurance or in connection with social security or other such
programs, (h) Liens or deposits to secure performance of bids, tenders, or
leases incurred in the ordinary course of business and not in connection with
the borrowing of money, (i) Liens granted as security for surety or appeal
bonds in connection with obtaining such bonds in the ordinary course of
business, (j) Liens resulting from any judgment or award that is not an Event
of Default hereunder, (k) with respect to any Real Property, easements, rights
of way, and zoning restrictions that do not materially interfere with or impair
the use or operation thereof, and (l) the Lien granted to Travelers on the
Travelers' Collateral Account.

"Permitted Protest" means the right of
Administrative Borrower or any of its Subsidiaries to protest any Lien (other
than any Lien that secures the Obligations), taxes (other than payroll taxes or
taxes that are the subject of a United States federal tax lien), or rental
payment, provided that (a) a reserve with respect to such obligation is
established on the Books in such amount as is required under GAAP, (b) any
such protest is instituted promptly and prosecuted diligently by Administrative
Borrower or any of its Subsidiaries, as applicable, in good faith, and
(c) Lender is satisfied that, while any such protest is pending, there
will be no impairment of the enforceability, validity, or priority of any of
the Lender's Liens.

"Permitted Purchase Money Indebtedness"
means, as of any date of determination, Purchase Money Indebtedness incurred
after the Closing Date in an aggregate principal amount outstanding at any one
time not in excess of Two Million Five Hundred Thousand Dollars ($2,500,000).

"Person" means natural persons,
corporations, limited liability companies, limited partnerships, general
partnerships, limited liability partnerships, joint ventures, trusts, land
trusts, business trusts, or other organizations, irrespective of whether they
are legal entities, and governments and agencies and political subdivisions
thereof.

"Proceeds" means all proceeds (as that term
is defined in the Code), including substitutions, replacements, additions,
accessions, proceeds, products to or of any of the Collateral, including, but
not limited to, proceeds of insurance covering any of the Collateral, or any
portion thereof, and any and all Accounts, General Intangibles, Negotiable
Collateral, Inventory, Equipment, Stock, Real Property, Deposit Accounts,
money, or other tangible or intangible property resulting from the sale or
other disposition of the Accounts, General Intangibles, Negotiable Collateral,
Inventory, Equipment, Stock, Real Property, Deposit Accounts, or any portion
thereof or interest therein and the proceeds thereof.

"Prior Loan Agreement" means that certain Loan and Security Agreement, dated April 16,
2004, by and among Borrowers and Lender.

"Projections" means Borrowers' forecasted
(a) balance sheets, (b) profit and loss statements, and (c) cash flow
statements, all prepared on a basis consistent with Parent's historical consolidated
financial statements and on a consolidated basis for Parent and all of its
Subsidiaries and for Parent and only its Domestic Subsidiaries, in each case together
with appropriate supporting details and a statement of underlying assumptions. 

"Purchase Money Indebtedness" means
Indebtedness (other than the Obligations, but including Capitalized Lease
Obligations) incurred at the time of, or within 20 days after, the acquisition
of any fixed assets for the purpose of financing all or any part of the
acquisition cost thereof.

"Qualified Cash" means, as of any date of
determination, the amount of unrestricted cash and Cash Equivalents of
Borrowers and their Domestic Subsidiaries that is in Deposit Accounts or in
Securities Accounts, or any combination thereof, and which such Deposit
Account or Securities Account is the subject of a Control Agreement and is
maintained by a branch office of the bank or securities intermediary located
within the United States.

"Real Property" means any estates or
ownership interests in real property now owned or hereafter acquired by any
Borrower or a Domestic Subsidiary of any Borrower and the improvements thereto.

"Record" means information that is inscribed
on a tangible medium or which is stored in an electronic or other medium and is
retrievable in perceivable form.

"Remedial Action" means all actions taken to
(a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or
in any way address Hazardous Materials in the indoor or outdoor environment,
(b) prevent or minimize a release or threatened release of Hazardous Materials
so they do not migrate or endanger or threaten to endanger public health or
welfare or the indoor or outdoor environment, (c) perform any pre-remedial
studies, investigations, or post-remedial operation and maintenance activities,
or (d) conduct any other actions authorized by 42 USC § 9601.

"Reserve Percentage" means, on any day, for
Lender, the maximum percentage prescribed by the Board of Governors of the
Federal Reserve System (or any successor Governmental Authority) for
determining the reserve requirements (including any basic, supplemental,
marginal, or emergency reserves) that are in effect on such date with respect
to eurocurrency funding (currently referred to as "eurocurrency liabilities")
of Lender, but so long as Lender is not required or directed under applicable
regulations to maintain such reserves, the Reserve Percentage shall be zero.

"Revolver Usage" means, as of any date of
determination, the sum of (a) the then extant amount of outstanding Advances,  plus
(b) the then extant amount of the Letter of Credit Usage.

"Revolving Credit Facility" means the senior
secured revolving credit facility described in this Agreement and the Loan
Documents.

"SEC" means the United States Securities and
Exchange Commission and any successor thereto.

"Securities Account" means a "securities
account" as that term is defined in the Code.

"Securities Act" means the Securities Act of
1933, as in effect from time to time.

"Senior Indenture" means the Indenture,
dated February 14, 2007, among Parent, as issuer, the guarantors named therein,
and LaSalle Bank National Association, as trustee, governing the Senior Notes.

"Seitel Holdings" means Seitel Holdings, LLC, a Delaware limited liability company,
until such time as such limited liability company is converted into a corporation,
after which time "Seitel Holdings" will mean Seitel Holdings, Inc., a
Delaware corporation.

"Senior Note Offering" means that certain
private placement by Parent conducted pursuant to Section 4(2) of the
Securities Act of Senior Notes for resale to "qualified institutional buyers"
pursuant to Rule 144A under the Securities Act.

"Senior Notes" means the 9.75% unsecured
senior notes due 2014 to be issued by Parent pursuant to the Senior Note
Offering and the Senior Indenture.

"Servicing Fee" shall have the meaning set
forth in Section 2.11(c).

"Solvent" means, with respect to any Person
on a particular date, that, at fair valuations, the sum of such Person's assets
is greater than all of such Person's debts.

"Stock" means all options, warrants, equity
interests, equity participations, or other equivalents (regardless of how
designated) of or in a Person, whether voting or nonvoting, including common
stock, preferred stock, or any other "equity security" (as such term is defined
in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC
under the Exchange Act). 

"Stock Pledge Agreements" means the
Subsidiary Stock Pledge Agreement and the Parent Stock Pledge Agreement.

"Subsidiary" of a Person means a
corporation, partnership, limited liability company, or other entity in which
that Person directly or indirectly owns or controls the shares of Stock having
ordinary voting power to elect a majority of the board of directors (or appoint
other comparable managers) of such corporation, partnership, limited liability
company, or other entity.

"Subsidiary Stock Pledge Agreement" means an
amended and restated stock pledge agreement, in form and substance satisfactory
to Lender in the exercise of its Permitted Discretion, executed and delivered
by each Borrower that owns Stock of a Domestic Subsidiary of Parent.

"Supporting Obligations" means supporting
obligations (as such term is defined in the Code) 

"Taxes" has the meaning set forth in Section
16.5.

"Trademark Security Agreement" means an
amended and restated trademark security agreement executed and delivered by
each Borrower and Lender, the form and substance of which is satisfactory to
Lender in the exercise of its Permitted Discretion.

"Travelers' Collateral Account" means that
certain Smith Barney Collateral Pledge Account (or any replacement thereof),
which has been established to provide cash collateral to Travelers Casualty and
Surety Company of America ("Travelers") in connection with the issuance
and continuation of surety bonds in an amount not to exceed approximately
$160,000, issued by Travelers on behalf of the Borrowers, pursuant to one or
more General Contracts of Indemnity between one or more of the Borrowers, as
indemnitor(s), and Travelers, as indemnitee or surety. 

"UCC Filing Authorization Letter" means a
letter duly executed by each Borrower and each Guarantor that was not a
Borrower or Guarantor under the Prior Loan Agreement authorizing Lender to file
appropriate financing statements on Form UCC-1 without the signature of such
Borrower or Guarantor, as applicable, in such office or offices as may be
necessary or, in the exercise of Lender's Permitted Discretion, desirable to
perfect the security interests purported to be created by the Loan Documents.

"Underlying Issuer" means a third Person
which is the beneficiary of an L/C Undertaking and which has issued a letter of
credit at the request of Lender for the benefit of Borrowers.

"Underlying Letter of Credit" means a letter
of credit that has been issued by an Underlying Issuer.

"United States" means the United States of
America.

"Unused Line Fee" shall have the meaning set
forth in Section 2.11(b).

"US Seismic Library" means the library of
onshore and offshore seismic data that Seitel Data, Ltd. offers for license to
oil and gas companies, which library is maintained, warehoused, and stored in
Houston, Texas. 

"ValueAct Capital" means ValueAct Capital
Master Fund, L.P., a British Virgin Islands limited partnership, ValueAct
Capital Partners, L.P., ValueAct Capital Partners II, L.P., ValueAct Capital
International, Ltd. and its successor ValueAct Capital International I, L.P.,
Value Act Capital International II, L.P., VA Partners, LLC, ValueAct Capital
Management LLC, or other affiliated Persons under common Control.

"Voidable Transfer" has the meaning set
forth in Section 16.7.

"Wells Fargo" means Wells Fargo Bank,
National Association, a national banking association.

1.2       Accounting Terms.  All accounting terms not specifically defined
herein shall be construed in accordance with GAAP.  When used herein, the term
"financial statements" shall include the notes and schedules thereto.  Whenever
the term "Borrowers" or the term "Parent" is used in respect of a financial
covenant or a related definition, it shall be understood to mean Parent and its
Domestic Subsidiaries on a consolidated basis unless the context clearly
requires otherwise.

1.3       Code.  Any terms used in this Agreement that are
defined in the Code shall be construed and defined as set forth in the Code
unless otherwise defined herein.

1.4       Construction.  Unless the context of this Agreement or any other
Loan Document clearly requires otherwise, references to the plural include the
singular, references to the singular include the plural, the term "including"
is not limiting, and the term "or" has, except where otherwise indicated, the
inclusive meaning represented by the phrase "and/or."  The words "hereof,"
"herein," "hereby," "hereunder," and similar terms in this Agreement or any
other Loan Document refer to this Agreement or such other Loan Document, as the
case may be, as a whole and not to any particular provision of this Agreement
or such other Loan Document, as the case may be.  Section, subsection, clause,
schedule, and exhibit references herein are to this Agreement unless otherwise
specified.  Any reference in this Agreement or in the other Loan Documents to
any agreement, instrument, or document shall include all alterations,
amendments, changes, extensions, modifications, renewals, replacements,
substitutions, joinders, and supplements, thereto and thereof, as applicable
(subject to any restrictions on such alterations, amendments, changes, extensions,
modifications, renewals, replacements, substitutions, joinders, and supplements
set forth herein).  Any reference herein to the repayment in full of the
Obligations shall mean the repayment in full in cash of all Obligations other
than contingent indemnification Obligations and other than any Bank Product
Obligations that, at such time, are allowed by the applicable Bank Product
Provider to remain outstanding and are not required to be repaid or cash
collateralized pursuant to the provisions of this Agreement.  Any reference
herein to any Person shall be construed to include such Person's successors and
assigns.  Any requirement of a writing contained herein or in the other Loan
Documents shall be satisfied by the transmission of a Record and any Record
transmitted shall constitute a representation and warranty as to the accuracy
and completeness of the information contained therein.

1.5       Schedules and Exhibits.  All of the schedules and exhibits attached to this
Agreement shall be deemed incorporated herein by reference.

2.         LOAN
AND TERMS OF PAYMENT.

2.1       Revolver
Advances.

(a)        Subject
to the terms and conditions of this Agreement, and during the term of this
Agreement, Lender agrees to make advances ("Advances") to Borrowers in
an amount at any one time outstanding not to exceed an amount equal to the
lesser of (i) the Maximum Revolver Amount minus the Letter of Credit
Usage, or (ii) the Borrowing Base minus the Letter of Credit Usage.

(b)        "Borrowing
Base" means, as of any date of determination, an amount equal to the least
of the following:

(1)        Twenty-Five
Million Dollars ($25,000,000); or

(2)        three-quarters
(0.75) times the Borrowers' Cash Margin as measured at any time and from time
to time over the most recently ended period of twelve (12) calendar months for
which the monthly financial statements required by Section 6.3(a)
have been received by Lender; or

(3)        the sum of the following:

(i)         Eighty-five percent (85%) of the amount of
Eligible Short-Term Accounts; plus, 

(ii)        The lesser of (A) fifty percent (50%) of
the amount of Eligible Long-Term Accounts and (B) $7,500,000.00; 

plus,

(iii)       Fifteen Million Dollars ($15,000,000.00);

less,
in all cases, the sum of

(A)       the Bank Product Reserve (if any), and

(B)       the aggregate amount of reserves, if any,
established by Lender under Section 2.1(c).

(c)        Anything to the
contrary in this Section 2.1 notwithstanding, Lender shall have the
right to establish reserves in such amounts, and with respect to such matters,
as Lender in its Permitted Discretion shall deem necessary or appropriate,
against the Borrowing Base, including, without limitation, reserves with
respect to (i) sums that Borrowers or their Subsidiaries are required to pay
(such as taxes, assessments, insurance premiums, or, in the case of leased
assets, rents or other amounts payable under such leases) and have failed to
pay under any Section of this Agreement or any other Loan Document, and (ii)
amounts owing by Borrowers or their Subsidiaries to any Person to the extent
secured by a Lien on, or trust over, any of the Collateral (other than any
existing Permitted Lien set forth on Schedule P-1 which is specifically
identified thereon as entitled to have priority over the Lender's Liens), which
Lien or trust, in the Permitted Discretion of Lender, likely would have a
priority superior to the Lender's Liens (such as Liens or trusts in favor of
landlords, warehousemen, carriers, mechanics, materialmen, laborers, or
suppliers, or Liens or trusts for ad valorem, excise, sales, or other
taxes where given priority under applicable law) in and to such item of the
Collateral.

(d)        Lender shall have no obligation to make
additional Advances hereunder to the extent such additional Advances would
cause the Revolver Usage to exceed the Maximum Revolver Amount.

(e)        Amounts borrowed pursuant to this Section
2.1 may be repaid and, subject to the terms and conditions of this
Agreement, reborrowed at any time during the term of this Agreement.

(f)         The principal amount of all Advances
shall be due and payable in full on the Maturity Date.

2.2       Intentionally Omitted.

2.3       Borrowing Procedures and Settlements.

(a)        Procedure for Borrowing.  Each
Borrowing shall be made by an irrevocable written request by an Authorized
Person delivered to Lender (which notice must be received by Lender no later
than 1:00 p.m. (Georgia time) on a Business Day specifying (i) the amount of
such Borrowing, and (ii) the requested Funding Date, which shall be a Business
Day.  At Lender's election, in lieu of
delivering the above-described written request, any Authorized Person may give
Lender telephonic notice of such request by the required time. In such circumstances, Borrowers agree that any such
telephonic notice will be confirmed in writing within one (1) Business Day of
the giving of such notice and the failure to provide such written confirmation
shall not affect the validity of the request.

(b)        Making of Advances.  If Lender
has received a timely request for a Borrowing in accordance with the provisions
hereof, and subject to the satisfaction of the applicable terms and conditions
set forth herein, Lender shall make the proceeds of such Advance available to
Borrowers on the applicable Funding Date by transferring available funds equal
to such proceeds to the Designated Account.

2.4       Payments.

(a)        Payments by Borrowers.  Except as
otherwise expressly provided herein, all payments by Borrowers shall be made to
Lender's Account for the account of Lender and shall be made in immediately
available funds, no later than 2:00 p.m. (Georgia time) on the date specified
herein.  Any payment received by Lender later than 2:00 p.m. (Georgia time),
shall be deemed to have been received on the following Business Day and any
applicable interest or fee shall continue to accrue until such following
Business Day.

(b)        Application
of Payments.

(i)         All payments in respect of the
Obligations shall be remitted to Lender and all such payments and all proceeds
of Collateral received by Lender, shall be applied as follows:

A.        first, to pay any Lender
Expenses then due to Lender under the Loan Documents, until paid in full,

B.         second, to pay any fees
then due to Lender under the Loan Documents until paid in full,

C.        third, to pay interest due
in respect of Advances until paid in full,

D.        fourth, so long as no Event
of Default has occurred and is continuing, and at Lender's election (which
election Lender hereby agrees will not be made if an Overadvance would be
created thereby), to pay amounts then due and owing by Administrative Borrower
or its Domestic Subsidiaries in respect of Bank Products, until paid in full,

E.         fifth, so long as no Event
of Default has occurred and is continuing, to pay the principal of all Advances
(exclusive of LIBOR Rate Loans prior to the end of the applicable Interest
Period if, and only if, Lender charges Borrowers for a Funding Loss with
respect to the prepayment of the LIBOR Rate Loan to which the payment is to be
applied, except to the extent otherwise agreed by Administrative Borrower in
writing) until paid in full,

F.         sixth, if an Event of
Default has occurred and is continuing, ratably (i) to pay the principal of all
Advances until paid in full, (ii) to Lender, to be held by Lender as cash
collateral in an amount up to 105% of the then extant Letter of Credit Usage
until paid in full, and (iii) to Lender, to be held by Lender, for the
benefit of the Bank Products Providers, as cash collateral in an amount up to
the amount of the Bank Product Reserve established prior to the occurrence of,
and not in contemplation of, the subject Event of Default, until Borrowers' and
their Domestic Subsidiaries' obligations in respect of the then extant Bank
Products have been paid in full or the cash collateral amount has been
exhausted,

G.        seventh, to pay any other
Obligations (including the provision of amounts to Lender, to be held by
Lender, for the benefit of the Bank Product Providers, as cash collateral in an
amount up to the amount determined by Lender in its Permitted Discretion as the
amount necessary to secure Borrowers' and their Domestic Subsidiaries'
obligations in respect to the then extant Bank Products), and

H.        eighth, to Borrowers (to be
wired to the Designated Account) or such other Person entitled thereto under
applicable law.

(ii)        In each instance, so long as no
Event of Default has occurred and is continuing, this Section 2.4(b)
shall not be deemed to apply to any payment by Borrowers specified by Borrowers
to be for the payment of specific Obligations then due and payable (or
prepayable) under any provision of this Agreement. 

(iii)       For purposes of the foregoing,
"paid in full" means payment of all amounts owing under the Loan Documents
according to the terms thereof, including loan fees, service fees, professional
fees, interest (and specifically including interest accrued after the
commencement of any Insolvency Proceeding), default interest, interest on
interest, and expense reimbursements, whether or not any of the foregoing would
be allowed or disallowed in whole or in part in any Insolvency Proceeding.

(iv)       In the event of a direct conflict
between the priority provisions of this Section 2.4 and other provisions
contained in any other Loan Document, it is the intention of the parties hereto
that such priority provisions in such documents shall be read together and
construed, to the fullest extent possible, to be in concert with each other. 
In the event of any actual, irreconcilable conflict that cannot be resolved as
aforesaid, the terms and provisions of this Section 2.4 shall control
and govern.

2.5       Overadvances.  If, at any time or for any reason, the amount of
Obligations (other than Bank Product Obligations) owed by Borrowers to Lender
pursuant to Section 2.1 or Section 2.12 is greater than either
the Dollar or percentage limitations set forth in Section 2.1 or Section 2.12,
as applicable (an "Overadvance"), Borrowers immediately shall pay to
Lender, in cash, the amount of such excess, which amount shall be used by
Lender to reduce the Obligations in accordance with the priorities set forth in
Section 2.4(b).  In addition, Borrowers hereby promise to pay the
Obligations (including principal, interest, fees, costs, and expenses) in
Dollars in full as and when due and payable under the terms of this Agreement
and the other Loan Documents.

2.6       Interest Rates
and Letter of Credit Fee:  Rates, Payments, and Calculations.

(a)        Interest Rates.  Except as
provided in clause (c) below, all Obligations (except for undrawn Letters of
Credit and except for Bank Product Obligations) that have been charged to the
Loan Account pursuant to the terms hereof shall bear interest on the Daily
Balance thereof as follows: (i) if the relevant Obligation is an Advance that
is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus the
LIBOR Rate Margin, and (ii) otherwise, at a per annum rate equal to the Base
Rate plus the Base Rate Margin.

(b)        Letter of Credit Fee.  Borrowers
shall pay Lender monthly, in arrears, a Letter of Credit fee (in addition to
the charges, commissions, fees, and costs set forth in Sections 2.12(d)
and (e)) which shall accrue at a rate equal to three percent (2.50%) per
annum times the original "face" or stated amount of all issued but undrawn
Letters of Credit.

(c)        Default
Rate.  Upon the occurrence and during the continuation of an Event of
Default, at the election of Lender,

(i)         all Obligations (except for
undrawn Letters of Credit and except for Bank Product Obligations) that have
been charged to the Loan Account pursuant to the terms hereof shall bear
interest on the Daily Balance thereof at a per annum rate equal to two (2)
percentage points above the per annum rate otherwise applicable hereunder, and

(ii)        the Letter of Credit fee provided
for above shall be increased to two (2) percentage points above the per annum
rate otherwise applicable hereunder.

(d)        Payment.  Except as provided to
the contrary in Section 2.13(a), interest and all fees payable hereunder
(other than Letter of Credit fees) shall be due and payable, in arrears, on the
first day of each month at any time that Obligations or obligation to extend
credit hereunder are outstanding.  Letter of Credit fees shall be due and
payable, in advance, on the first day of each month at any time that
Obligations or obligation to extend credit hereunder are outstanding. 
Borrowers hereby authorize Lender, from time to time, without prior notice to
Borrowers, to charge such interest and fees, all Lender Expenses (as and when incurred),
the charges, commissions, fees, and costs provided for in Section 2.12(d)
(as and when accrued or incurred), the fees and costs provided for in Section
2.11 (as and when accrued or incurred), and all other payments as and when
due and payable under any Loan Document (including any amounts due and payable
to the Bank Product Providers in respect of Bank Products up to the amount of
the then extant Bank Products Reserve) to Borrowers' Loan Account, which
amounts thereafter shall constitute Advances hereunder and shall accrue
interest at the rate then applicable to Advances hereunder.  Any interest not
paid when due shall be compounded by being charged to Borrowers' Loan Account
and shall thereafter constitute Advances hereunder and shall accrue interest at
the rate then applicable to Advances that are Base Rate Loans hereunder.

(e)        Computation.  All interest and
fees chargeable under the Loan Documents shall be computed on the basis of a
360-day year for the actual number of days elapsed.  In the event the Base Rate
is changed from time to time hereafter, the rates of interest hereunder based
upon the Base Rate automatically and immediately shall be increased or
decreased by an amount equal to such change in the Base Rate.  

(f)         Intent to Limit Charges to Maximum
Lawful Rate.  In no event shall the interest rate or rates payable under
this Agreement, plus any other amounts paid in connection herewith, exceed the
highest rate permissible under any law that a court of competent jurisdiction
shall, in a final determination, deem applicable.  Borrowers and Lender, in
executing and delivering this Agreement, intend legally to agree upon the rate
or rates of interest and manner of payment stated within it; provided, however,
that, anything contained herein to the contrary notwithstanding, if said rate
or rates of interest or manner of payment exceeds the maximum allowable under
applicable law, then, ipso facto, as of the date of this Agreement,
Borrowers are and shall be liable only for the payment of such maximum as
allowed by law, and payment received from or in respect of Borrowers in excess
of such legal maximum, whenever received, shall be applied to reduce the
principal balance of the Obligations to the extent of such excess.

2.7       Cash
Management.

(a)        Borrowers shall and shall cause each of
their Domestic Subsidiaries to (i) establish and maintain cash management
services of a type and on terms satisfactory to Lender at one or more of the
banks set forth on Schedule 2.7(a) (each a "Cash Management Bank"),
and shall request in writing and otherwise take such reasonable steps to direct
that all of their and their Domestic Subsidiaries' Account Debtors forward
payment of the amounts owed by them directly to such Cash Management Bank, and
(ii) deposit or direct each applicable Cash Management Bank to deposit
promptly, and in any event no later than the first Business Day after the date
of receipt thereof, all of their Collections (including those sent directly by
their Account Debtors to a Cash Management Bank) into a bank account in
Lender's name (a "Cash Management Account") at one of the Cash
Management Banks.

(b)        Each Cash Management Bank shall
establish and maintain Cash Management Agreements with Lender and Borrowers, in
form and substance acceptable to Lender in the exercise of its Permitted
Discretion.  Each such Cash Management Agreement shall provide, among other
things, that (i) all items of payment deposited in such Cash Management Account
and proceeds thereof are held by such Cash Management Bank on behalf of Lender
as bailee-in-possession for Lender, (ii) the Cash Management Bank has no rights
of setoff or recoupment or any other claim against the applicable Cash
Management Account, other than for payment of its service fees and other
charges directly related to the administration of such Cash Management Account
and for returned checks or other items of payment, and (iii) from and after the
first Advance under the Revolving Credit Facility resulting from a request for
a Borrowing for purposes other than payment of Lender Expenses that have been
outstanding and unpaid for less than thirty (30) days, the Cash Management Bank
will immediately forward by daily sweep all amounts in the applicable Cash
Management Account to the Lender's Account; the parties intending that requests
for Borrowings solely to pay Lender Expenses, prior to other Advances under the
Revolving Credit Facility, will not trigger the daily sweep of amounts in the
Cash Management Accounts, unless the Lender Expenses have remained unpaid for
thirty (30) days after the due date thereof.

(c)        So long as no Default or Event of
Default has occurred and is continuing, Administrative Borrower may amend Schedule
2.7(a) to add or replace a Cash Management Bank; provided, however,
that (i) such prospective Cash Management Bank shall be satisfactory to Lender
in the exercise of its Permitted Discretion and Lender shall have consented in
writing (which consent will not, in the exercise of Lender's Permitted Discretion,
be withheld, delayed or conditioned) in advance to the opening of a Cash
Management Account with the prospective Cash Management Bank, and (ii) prior to
the time of the opening of such Cash Management Account, a Borrower or a
Domestic Subsidiary of a Borrower, as applicable, and such prospective Cash
Management Bank shall have executed and delivered to Lender a Cash Management
Agreement.  A Borrower or a Domestic Subsidiary of a Borrower, as applicable,
shall close any of their Cash Management Accounts (and establish replacement
cash management accounts in accordance with the foregoing sentence) promptly
and in any event within 30 days of notice from Lender that the creditworthiness
of any Cash Management Bank is no longer acceptable in Lender's reasonable
judgment, or as promptly as practicable and in any event within 60 days of
notice from Lender that the operating performance, funds transfer, or
availability procedures or performance of the Cash Management Bank with respect
to Cash Management Accounts or Lender's liability under any Cash Management
Agreement with such Cash Management Bank is no longer acceptable in Lender's
reasonable judgment.

(d)        The Cash Management Accounts shall be
cash collateral accounts, with all cash, checks and similar items of payment in
such accounts securing payment of the Obligations, and in which Borrowers
hereby grant a Lien to Lender.

2.8       Crediting Payments .  The receipt of any payment item by Lender (whether
from transfers to Lender by the Cash Management Banks pursuant to the Cash
Management Agreements or otherwise) shall not be considered a payment on
account unless such payment item is a wire transfer of immediately available
federal funds made to the Lender's Account or unless and until such payment
item is honored when presented for payment.  Should any payment item not be
honored when presented for payment, then Borrowers shall be deemed not to have
made such payment and interest shall be calculated accordingly.  Anything to
the contrary contained herein notwithstanding, any payment item shall be deemed
received by Lender only if it is received into the Lender's Account on a
Business Day on or before 2:00 p.m. (Georgia time).  If any payment item is
received into the Lender's Account on a non-Business Day or after 2:00 p.m. (Georgia
time) on a Business Day, it shall be deemed to have been received by Lender as
of the opening of business on the immediately following Business Day.

2.9       Designated Account.  Lender is authorized to make the Advances, and
Lender is authorized to issue the Letters of Credit, under this Agreement based
upon telephonic or other instructions received from anyone purporting to be an
Authorized Person, or without instructions if pursuant to Section 2.6(d). 
Administrative Borrower agrees to establish and maintain the Designated Account
with the Designated Account Bank for the purpose of receiving the proceeds of
the Advances requested by Borrowers and made by Lender hereunder.  Unless
otherwise agreed by Lender and Administrative Borrower, any Advance requested
by Borrowers and made by Lender hereunder shall be made to the Designated
Account.

2.10     Maintenance of Loan Account; Statements of
Obligations.  Lender shall maintain an account on its books in
the name of Borrowers (the "Loan Account") on which Borrowers will be
charged with all Advances made by Lender to Borrowers or for Borrowers'
account, the Letters of Credit issued by Lender for Borrowers' account, and
with all other payment Obligations hereunder or under the other Loan Documents
(except for Bank Product Obligations), including, accrued interest, fees, and
Lender Expenses.  In accordance with Section 2.8, the Loan Account will
be credited with all payments received by Lender from Borrowers or for
Borrowers' account, including all amounts received in the Lender's Account from
any Cash Management Bank.  Lender shall, within 20 days after the close of each
calendar month, render to Administrative Borrower statements regarding all
activities in the Loan Account during such month, including principal,
interest, fees, and including an itemization of all charges and expenses
constituting Lender Expenses owing, and such statements, absent manifest error,
shall be conclusively presumed to be correct and accurate and constitute an
account stated between Borrowers and Lender unless, within 60 days after
receipt thereof by Administrative Borrower, Administrative Borrower shall
deliver to Lender written objection thereto describing the error or errors
contained in any such statements.

2.11     Fees.  Borrowers shall pay to Lender the following fees
and charges, which fees and charges shall be non-refundable when paid
(irrespective of whether this Agreement is terminated thereafter):

(a)        Unused Line Fee.  As an unused
line fee (the "Unused Line Fee"), the Borrowers shall pay to Lender
monthly, in arrears, for the previous month, on the first day of each calendar
month following the Closing Date, and continuing during the remainder of the
term of this Agreement, a fee equal to one-quarter of one percent (0.250%) per
annum times the result of (i) the Maximum Revolver Amount, minus (ii) the sum
of (A) the average Daily Balance of Advances that were outstanding during the
immediately preceding month, plus (B) the average Daily Balance of the Letter
of Credit Usage during the immediately preceding month.

(b)        Other Fees.  Borrowers
shall pay to Lender the fees set forth in the Fee Letter as and when due and
payable pursuant to the terms of the Fee Letter.

2.12     Letters of Credit.

(a)        Generally.  Subject to the terms
and conditions of this Agreement, Lender agrees to issue letters of credit for
the account of Borrowers (each, an "L/C") or to purchase participations
or execute indemnities or reimbursement obligations (each such undertaking, an
"L/C Undertaking") with respect to letters of credit issued by an
Underlying Issuer (as of the Closing Date, the prospective Underlying Issuer is
to be Wells Fargo) for the account of Borrowers.  To request the issuance of an
L/C or an L/C Undertaking (or the amendment, renewal, or extension of an outstanding
L/C or L/C Undertaking), Administrative Borrower shall hand deliver or telecopy
(or transmit by electronic communication, if arrangements for doing so have
been approved by Lender) to Lender (reasonably in advance of the requested date
of issuance, amendment, renewal, or extension) a notice requesting the issuance
of an L/C or L/C Undertaking, or identifying the L/C or L/C Undertaking to be
amended, renewed, or extended, the date of issuance, amendment, renewal, or
extension, the date on which such L/C or L/C Undertaking is to expire, the
amount of such L/C or L/C Undertaking, the name and address of the beneficiary
thereof (or of the Underlying Letter of Credit, as applicable), and such other
information as shall be necessary to prepare, amend, renew, or extend such L/C
or L/C Undertaking.  If requested by Lender, Borrowers also shall be an
applicant under the application with respect to any Underlying Letter of Credit
that is to be the subject of an L/C Undertaking.  Lender shall have no obligation
to issue a Letter of Credit if any of the following would result after giving
effect to the requested Letter of Credit:

(i)         the Letter of Credit Usage would
exceed the Borrowing Base less the then extant amount of outstanding
Advances, or

(ii)        the Letter of Credit Usage would
exceed Ten Million Dollars ($10,000,000), or

(iii)       the Letter of Credit Usage would
exceed the Maximum Revolver Amount less the then extant amount of
outstanding Advances.

Borrowers and Lender acknowledge and agree that
certain Underlying Letters of Credit may be issued to support letters of credit
that already are outstanding as of the Closing Date.  Each Letter of Credit
(and corresponding Underlying Letter of Credit) shall be in form and substance
acceptable to Lender (in the exercise of its Permitted Discretion), including
the requirement that the amounts payable thereunder must be payable in
Dollars.  If Lender is obligated to advance funds under a Letter of Credit,
Borrowers immediately shall reimburse such L/C Disbursement to Lender by paying
to Lender an amount equal to such L/C Disbursement not later than 2:00 p.m., Georgia
time, on the date that such L/C Disbursement is made, if Administrative
Borrower shall have received written or telephonic notice of such L/C
Disbursement prior to 1:00 p.m., Georgia time, on such date, or, if such notice
has not been received by Administrative Borrower prior to such time on such
date, then not later than 2:00 p.m., Georgia time, on (i) the Business Day that
Administrative Borrower receives such notice, if such notice is received prior
to 1:00 p.m., Georgia time, on the date of receipt, and, in the absence of such
reimbursement, the L/C Disbursement immediately and automatically shall be
deemed to be an Advance hereunder and, thereafter, shall bear interest at the
rate then applicable to Advances that are Base Rate Loans under Section 2.6. 
To the extent an L/C Disbursement is deemed to be an Advance hereunder,
Borrowers' obligation to reimburse such L/C Disbursement shall be discharged
and replaced by the resulting Advance.

(b)        Indemnification.  Each Borrower
hereby agrees to indemnify, save, defend, and hold Lender harmless from any
loss, cost, expense, or liability, and reasonable attorneys fees incurred by
Lender arising out of or in connection with any Letter of Credit; provided,
however, that no Borrower shall be obligated hereunder to indemnify for
any loss, cost, expense, liability, or related attorneys' fees, to the extent
that it is caused by the gross negligence or willful misconduct of Lender. 
Each Borrower agrees to be bound by the Underlying Issuer's regulations and
interpretations of any Underlying Letter of Credit or by Lender's
interpretations of any L/C issued by Lender to or for such Borrower's account,
even though this interpretation may be different from such Borrower's own, and
each Borrower understands and agrees that Lender shall not be liable for any
error, negligence, or mistake, whether of omission or commission, in following
Borrowers' instructions or those contained in the Letter of Credit or any
modifications, amendments, or supplements thereto.  Each Borrower understands
that the L/C Undertakings may require Lender to indemnify the Underlying Issuer
for certain costs or liabilities arising out of claims by Borrowers against
such Underlying Issuer.  Each Borrower hereby agrees to indemnify, save,
defend, and hold Lender harmless with respect to any loss, cost, expense
(including reasonable attorneys fees), or liability incurred by Lender under
any L/C Undertaking as a result of Lender's indemnification of any Underlying
Issuer; provided, however, that no Borrower shall be obligated
hereunder to indemnify for any loss, cost, expense, liability, or related
attorneys' fees, to the extent that it is caused by the gross negligence or
willful misconduct of Lender.

(c)        Authorization to Underlying Issuer. 
Each Borrower hereby authorizes and directs any Underlying Issuer to deliver to
Lender all instruments, documents, and other writings and property received by
such Underlying Issuer pursuant to such Underlying Letter of Credit and to
accept and rely upon Lender's instructions with respect to all matters arising
in connection with such Underlying Letter of Credit and the related
application. 

(d)        Charges, Fees, and Costs.  Any
and all charges, commissions, fees, and costs incurred by Lender relating to
Underlying Letters of Credit shall be Lender Expenses for purposes of this
Agreement and immediately shall be reimbursable by Borrowers to Lender for the
account of Lender; it being acknowledged and agreed by each Borrower that, as
of the Closing Date, the usage charge imposed by the prospective Underlying
Issuer is 0.825% per annum times the face amount of each Underlying Letter of
Credit, that such issuance charge may be changed from time to time, and that
the Underlying Issuer also imposes a schedule of charges for amendments,
extensions, drawings, and renewals.

(e)        Changes in Law.  If by reason of
(i) any change after the Closing Date in any applicable law, treaty, rule, or
regulation or any change in the interpretation or application thereof by any
Governmental Authority, or (ii) compliance by the Underlying Issuer or Lender
with any direction, request, or requirement (irrespective of whether having the
force of law) of any Governmental Authority or monetary authority including,
Regulation D of the Federal Reserve Board as from time to time in effect (and
any successor thereto):

(i)         any reserve, deposit, or similar
requirement is or shall be imposed or modified in respect of any Letter of
Credit issued hereunder, or

(ii)        there shall be imposed on the
Underlying Issuer or Lender any other condition regarding any Underlying Letter
of Credit or any Letter of Credit issued pursuant hereto;

and the result of the foregoing is to increase, directly
or indirectly, the cost to Lender of issuing, making, guaranteeing, or
maintaining any Letter of Credit or to reduce the amount receivable in respect
thereof by Lender, then, and in any such case, Lender may, at any time within a
reasonable period after the additional cost is incurred or the amount received
is reduced, notify Administrative Borrower, and Borrowers shall pay on demand
such amounts as Lender may specify to be necessary to compensate Lender for
such additional cost or reduced receipt, together with interest on such amount
from the date of such demand until payment in full thereof at the rate then
applicable to Base Rate Loans hereunder.  The determination by Lender of any
amount due pursuant to this Section, as set forth in a certificate setting
forth the calculation thereof in reasonable detail (which certificate shall, if
requested by Administrative Borrower, shall be delivered within thirty (30)
days after such request), shall, in the absence of manifest or demonstrable
error, be final and conclusive and binding on all of the parties hereto.  

2.13     LIBOR Option.

(a)        Interest and Interest Payment Dates. 
In lieu of having interest charged at the rate based upon the Base Rate,
Borrowers shall have the option (the "LIBOR Option") to have interest on
all or a portion of the Advances be charged at a rate of interest based upon
the LIBOR Rate.  Interest on LIBOR Rate Loans shall be payable as follows: (i)
on the last day of the Interest Period applicable thereto;  (ii) upon the
occurrence of an Event of Default in consequence of which Lender has elected to
accelerate the maturity of all or any portion of the Obligations (provided,
that Lender shall not accelerate any LIBOR Rate Loans unless all Base Rate Loans
are or have been accelerated); or (iii) upon termination of this Agreement
pursuant to the terms hereof.  On the last day of each applicable Interest
Period, unless Administrative Borrower properly has exercised the LIBOR Option
with respect thereto, the interest rate applicable to such LIBOR Rate Loan
automatically shall convert to the rate of interest then applicable to Base
Rate Loans hereunder.  At any time that an Event of Default has occurred and is
continuing, Borrowers no longer shall have the option to request that Advances
bear interest at the LIBOR Rate and Lender shall have the right to convert the
interest rate on all outstanding LIBOR Rate Loans to the rate then applicable
to Base Rate Loans hereunder.

(b)        LIBOR
Election.

(i)         Administrative Borrower may, at
any time and from time to time, so long as no Event of Default has occurred and
is continuing, elect to exercise the LIBOR Option by notifying Lender prior to 2:00
p.m. (Georgia time) at least 3 Business Days prior to the commencement of the
proposed Interest Period (the "LIBOR Deadline").  Notice of
Administrative Borrower's election of the LIBOR Option for a permitted portion
of the Advances and an Interest Period pursuant to this Section shall be made
by delivery to Lender of a LIBOR Notice received by Lender before the LIBOR
Deadline, or by telephonic notice received by Lender before the LIBOR Deadline
(to be confirmed by delivery to Lender of a LIBOR Notice received by Lender
prior to 5:00 p.m. (Georgia time) on the same day).

(ii)        Each LIBOR Notice shall be
irrevocable and binding on Borrowers.  In connection with each LIBOR Rate Loan,
each Borrower shall indemnify, defend, and hold Lender harmless against any
loss, cost, or expense incurred by Lender as a result of (a) the payment of any
principal of any LIBOR Rate Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default), (b)
the conversion of any LIBOR Rate Loan other than on the last day of the
Interest Period applicable thereto, or (c) the failure to borrow, convert,
continue or prepay any LIBOR Rate Loan on the date specified in any LIBOR
Notice delivered pursuant hereto (such losses, costs, and expenses,
collectively, "Funding Losses").  Funding Losses shall, with respect to
Lender, be deemed to equal the amount determined by Lender to be the excess, if
any, of (i) the amount of interest that would have accrued on the principal
amount of such LIBOR Rate Loan had such event not occurred, at the LIBOR Rate
that would have been applicable thereto, for the period from the date of such
event to the last day of the then current Interest Period therefor (or, in the
case of a failure to borrow, convert or continue, for the period that would
have been the Interest Period therefor), minus (ii) the amount of
interest that would accrue on such principal amount for such period at the
interest rate which Lender would be offered were it to be offered, at the
commencement of such period, Dollar deposits of a comparable amount and period
in the London interbank market.  A certificate of Lender delivered to
Administrative Borrower setting forth any amount or amounts that Lender is
entitled to receive pursuant to this Section shall be conclusive absent
manifest error.

(iii)       Borrowers
shall have not more than five (5) LIBOR Rate Loans in effect at any given
time.  Borrowers only may exercise the LIBOR Option for LIBOR Rate Loans of at
least $1,000,000.00 and integral multiples of $500,000.00 in excess thereof.  

(c)        Prepayments.  Borrowers may
prepay LIBOR Rate Loans at any time; provided, however, that in
the event that LIBOR Rate Loans are prepaid on any date that is not the last
day of the Interest Period applicable thereto, including as a result of any
automatic prepayment through any required application by Lender of proceeds of
Borrowers' and their Domestic Subsidiaries' Collections in accordance with Section
2.4(b) or for any other reason (other than as described in Section
2.13(d)(ii)(1)), including early termination of the term of this Agreement
or acceleration of all or any portion of the Obligations pursuant to the terms
hereof, each Borrower shall indemnify, defend, and hold Lender and its
Participants harmless against any and all Funding Losses in accordance with
clause (b) above.

(d)        Special
Provisions Applicable to LIBOR Rate.

(i)         The LIBOR Rate may be adjusted by
Lender on a prospective basis to take into account any additional or increased
costs to Lender of maintaining or obtaining any eurodollar deposits or
increased costs due to changes in applicable law occurring subsequent to the
commencement of the then applicable Interest Period, including changes in tax
laws (except changes of general applicability in corporate income tax laws) and
changes in the reserve requirements imposed by the Board of Governors of the
Federal Reserve System (or any successor), excluding the Reserve Percentage,
which additional or increased costs would increase the cost of funding loans
bearing interest at the LIBOR Rate.  In any such event, Lender shall give
Administrative Borrower notice of such a determination and adjustment and, upon
its receipt of the notice from Lender, Administrative Borrower may, by notice
to Lender (y) require Lender to furnish to Administrative Borrower a statement
setting forth the basis for adjusting such LIBOR Rate and the method for
determining the amount of such adjustment, or (z) repay the LIBOR Rate Loans
with respect to which such adjustment is made (together with any amounts due
under clause (b)(ii) above).

(ii)        In the event that any change in
market conditions or any law, regulation, treaty, or directive, or any change
therein or in the interpretation of application thereof, shall at any time
after the date hereof, in the reasonable opinion of Lender, make it unlawful or
impractical for Lender to fund or maintain LIBOR Advances or to continue such
funding or maintaining, or to determine or charge interest rates at the LIBOR
Rate, Lender shall give notice of such changed circumstances to Administrative
Borrower and (1) in the case of any LIBOR Rate Loans that are outstanding, the
date specified in Lender's notice shall be deemed to be the last day of the
Interest Period of such LIBOR Rate Loans, and interest upon the LIBOR Rate
Loans of Lender thereafter shall accrue interest at the rate then applicable to
Base Rate Loans, and (2) Borrowers shall not be entitled to elect the LIBOR
Option until Lender determines that it would no longer be unlawful or
impractical to do so.

(e)        No Requirement of Matched Funding. 
Anything to the contrary contained herein notwithstanding, neither Lender, nor
any of its Participants, is required actually to acquire eurodollar deposits to
fund or otherwise match fund any Obligation as to which interest accrues at the
LIBOR Rate.  The provisions of this Section shall apply as if Lender or its
Participants had match funded any Obligation as to which interest is accruing
at the LIBOR Rate by acquiring eurodollar deposits for each Interest Period in
the amount of the LIBOR Rate Loans.

2.14     Capital
Requirements.  If, after the date hereof, Lender determines that
(i) the adoption of or change in any law, rule, regulation or guideline
regarding capital requirements for banks or bank holding companies, or any change
in the interpretation or application thereof by any Governmental Authority
charged with the administration thereof, or (ii) compliance by Lender or its
parent bank holding company with any guideline, request or directive of any
such entity regarding capital adequacy (whether or not having the force of
law), has the effect of reducing the return on Lender's or such holding
company's capital as a consequence of Lender's obligations hereunder to a level
below that which Lender or such holding company could have achieved but for
such adoption, change, or compliance (taking into consideration Lender's or
such holding company's then existing policies with respect to capital adequacy
and assuming the full utilization of such entity's capital) by any amount deemed
by Lender to be material, then Lender may notify Administrative Borrower
thereof.  Following receipt of such notice, Borrowers agree to pay Lender on
demand the amount of such reduction of return of capital as and when such
reduction is determined, payable within 90 days after presentation by Lender of
a statement of the amount and setting forth in reasonable detail Lender's
calculation thereof and the assumptions upon which such calculation was based
(which statement shall be deemed true and correct absent manifest error).  In
determining such amount, Lender may use any reasonable averaging and
attribution methods.

2.15     Joint and
Several Liability of Borrowers.

(a)        Each Borrower is accepting joint and
several liability hereunder and under the other Loan Documents in consideration
of the financial accommodations to be provided by Lender under this Agreement,
for the mutual benefit, directly and indirectly, of each Borrower and in
consideration of the undertakings of the other Borrowers to accept joint and
several liability for the Obligations.

(b)        Each Borrower, jointly and severally,
hereby irrevocably and unconditionally accepts, not merely as a surety but also
as a co-debtor, joint and several liability with the other Borrowers, with
respect to the payment and performance of all of the Obligations (including,
without limitation, any Obligations arising under this Section 2.15), it
being the intention of the parties hereto that all the Obligations shall be the
joint and several obligations of each Person composing Borrowers without
preferences or distinction among them.

(c)        If and to the extent that any of
Borrowers shall fail to make any payment with respect to any of the Obligations
as and when due or to perform any of the Obligations in accordance with the
terms thereof, then in each such event the other Persons composing Borrowers
will make such payment with respect to, or perform, such Obligation.

(d)        The Obligations of each Person composing
Borrowers under the provisions of this Section 2.15 constitute the
absolute and unconditional, full recourse Obligations of each Person composing
Borrowers enforceable against each such Borrower to the full extent of its
properties and assets, irrespective of the validity, regularity or
enforceability of this Agreement as against any other Borrower(s) or any other
circumstances whatsoever.

(e)        Except as otherwise expressly provided
in this Agreement, each Person composing Borrowers hereby waives notice of
acceptance of its joint and several liability, notice of any Advances or
Letters of Credit issued under or pursuant to this Agreement, notice of the
occurrence of any Default, Event of Default, or of any demand for any payment
under this Agreement, notice of any action at any time taken or omitted by
Lender under or in respect of any of the Obligations, any requirement of
diligence or to mitigate damages and, generally, to the extent permitted by
applicable law, all demands, notices and other formalities of every kind in
connection with this Agreement (except as otherwise provided in this
Agreement).  Each Person composing Borrowers hereby assents to, and waives
notice of, any extension or postponement of the time for the payment of any of
the Obligations, the acceptance of any payment of any of the Obligations, the
acceptance of any partial payment thereon, any waiver, consent or other action
or acquiescence by Lender at any time or times in respect of any default by any
Person composing Borrowers in the performance or satisfaction of any term,
covenant, condition or provision of this Agreement, any and all other
indulgences whatsoever by Lender in respect of any of the Obligations, and the
taking, addition, substitution or release, in whole or in part, at any time or
times, of any security for any of the Obligations or the addition, substitution
or release, in whole or in part, of any Person composing Borrowers.  Without
limiting the generality of the foregoing, each Borrower assents to any other
action or delay in acting or failure to act on the part of Lender with respect
to the failure by any Person composing Borrowers to comply with any of its
respective Obligations, including, without limitation, any failure strictly or
diligently to assert any right or to pursue any remedy or to comply fully with
applicable laws or regulations thereunder, which might, but for the provisions
of this Section 2.15, afford grounds for terminating, discharging or
relieving any Person composing Borrowers, in whole or in part, from any of its
Obligations under this Section 2.15, it being the intention of each
Person composing Borrowers that, so long as any of the Obligations hereunder
remain unsatisfied, the Obligations of such Person composing Borrowers under
this Section 2.15 shall not be discharged except by performance and then
only to the extent of such performance.  The Obligations of each Person
composing Borrowers under this Section 2.15 shall not be diminished or
rendered unenforceable by any winding up, reorganization, arrangement,
liquidation, reconstruction or similar proceeding with respect to any Person
composing Borrowers or Lender.  The joint and several liability of the Persons
composing Borrowers hereunder shall continue in full force and effect
notwithstanding any absorption, merger, amalgamation or any other change
whatsoever in the name, constitution or place of formation of any of the
Persons composing Borrowers or Lender.

(f)         Each Person composing Borrowers
represents and warrants to Lender that such Borrower is currently informed of
the financial condition of Borrowers and of all other circumstances which a
diligent inquiry would reveal and which bear upon the risk of nonpayment of the
Obligations.  Each Person composing Borrowers further represents and warrants
to Lender that such Borrower has read and understands the terms and conditions
of the Loan Documents.  Each Person composing Borrowers hereby covenants that
such Borrower will continue to keep informed of Borrowers' financial condition,
the financial condition of other guarantors, if any, and of all other
circumstances which bear upon the risk of nonpayment or nonperformance of the
Obligations.

(g)        The provisions of this Section 2.15
are made for the benefit of Lender and its successors and Assignees, and may be
enforced by it or them from time to time against any or all of the Persons
composing Borrowers as often as occasion therefor may arise and without
requirement on the part of Lender, successor, or assign first to marshal any of
its or their claims or to exercise any of its or their rights against any of
the other Persons composing Borrowers or to exhaust any remedies available to
it or them against any of the other Persons composing Borrowers or to resort to
any other source or means of obtaining payment of any of the Obligations
hereunder or to elect any other remedy.  The provisions of this Section 2.15
shall remain in effect until all of the Obligations shall have been paid in
full or otherwise fully satisfied.  If at any time, any payment, or any part
thereof, made in respect of any of the Obligations, is rescinded or must
otherwise be restored or returned by Lender upon the insolvency, bankruptcy or
reorganization of any of the Persons composing Borrowers, or otherwise, the
provisions of this Section 2.15 will forthwith be reinstated in effect,
as though such payment had not been made.

(h)        Each of the Persons composing Borrowers
hereby agrees that it will not enforce any of its rights of contribution or
subrogation against the other Persons composing Borrowers with respect to any
liability incurred by it hereunder or under any of the other Loan Documents,
any payments made by it to Lender with respect to any of the Obligations or any
collateral security therefor until such time as all of the Obligations have
been paid in full in cash.  Any claim which any Borrower may have against any
other Borrower with respect to any payments to Lender hereunder or under any
other Loan Documents are hereby expressly made subordinate and junior in right
of payment, without limitation as to any increases in the Obligations arising
hereunder or thereunder, to the prior payment in full in cash of the
Obligations and, in the event of any insolvency, bankruptcy, receivership,
liquidation, reorganization or other similar proceeding under the laws of any
jurisdiction relating to any Borrower, its debts or its assets, whether
voluntary or involuntary, all such Obligations shall be paid in full in cash
before any payment or distribution of any character, whether in cash,
securities or other property, shall be made to any other Borrower therefor.

(i)         Each of the Persons composing Borrowers
hereby agrees that, after the occurrence and during the continuance of any
Event of Default, the payment of any amounts due with respect to the
indebtedness owing by any Borrower to any other Borrower is hereby subordinated
to the prior payment in full in cash of the Obligations.  Each Borrower hereby
agrees that after the occurrence and during the continuance of any Event of
Default, such Borrower will not demand, sue for or otherwise attempt to collect
any indebtedness of any other Borrower owing to such Borrower until the
Obligations shall have been paid in full in cash.  If, notwithstanding the
foregoing sentence, such Borrower shall collect, enforce or receive any amounts
in respect of such indebtedness, such amounts shall be collected, enforced and
received by such Borrower as trustee for the Lender, and such Borrower shall
deliver any such amounts to Lender for application to the Obligations in
accordance with Section 2.4(b).

3.         CONDITIONS; TERM OF AGREEMENT.

3.1       Conditions Precedent to the Effectiveness
of this Agreement.  The obligation of Lender to be bound under the
terms of this Agreement from and after its execution and delivery is subject to
the fulfillment, to the satisfaction of Lender, of each of the conditions
precedent set forth below:

(a)        Borrowers shall
have paid the fees to be paid to Lender by Borrowers on or prior to the Closing
Date pursuant to the terms set forth in Section 2.11(b);

(b)        Lender shall have received a UCC Filing
Authorization Letter, duly executed by each Borrower and each Guarantor that
was not a Borrower or Guarantor under the Prior Loan Agreement, together with
appropriate financing statements on Form UCC-1 duly filed in such office or
offices as may be necessary or, in the Permitted Discretion of Lender,
desirable to perfect the Lender's Liens in and to the Collateral, and Lender
shall have received searches reflecting the filing of all such financing
statements;

(c)        Lender shall have received each of the
following documents, in form and substance satisfactory to Lender in the
exercise of its Permitted Discretion, duly executed, and each such document
shall be in full force and effect:

(i)         the Fee Letter,

(ii)        the Cash Management Agreements,

(iii)       the Control Agreements,

(iv)       the Disbursement Letter with
respect to any Advance to be borrowed on the Closing Date,

(v)        the Guaranty,

(vi)       the Guarantor Security Agreement,

(vii)      the Intercompany Subordination
Agreement,

(viii)      the Officers' Certificate,

(ix)       the Subsidiary Stock Pledge
Agreement, together with all certificates representing the shares of Stock
pledged thereunder, as well as Stock powers with respect thereto endorsed in
blank, and

(x)        the Trademark Security Agreement;

(d)        the tender
period for the Existing Notes shall have expired and at least 75% of the outstanding
principal balance of all such Existing Notes shall have been tendered for payment;

(e)        Lender shall have received copies of all
material agreements executed or delivered in connection with the Senior Note
Offering; 

(f)         [INTENTIONALLY OMITTED];

(g)        all conditions precedent to the funding
of the Senior Note Offering, other than the effectiveness of this Agreement and
the filing of the certificate of merger, shall have been satisfied and evidence
thereof, reasonably satisfactory to Lender, shall have been delivered to
Lender;

(h)        Lender shall have received copies of all
material agreements executed or delivered in connection with the Acquisition;

(i)         all conditions precedent to
consummation of the Acquisition, other than filing of the certificate of merger
and consummation of the Senior Note Offering, shall have been satisfied and evidence
thereof, reasonably satisfactory to Lender, shall have been delivered to
Lender;

(j)         Borrowers shall have Excess
Availability of $20,000,000.00 on the Closing Date and Lender shall have
received evidence thereof, reasonably satisfactory to Lender;

(k)        Lender shall have received the results
of a field audit of Borrowers and Guarantors satisfactory to Lender in its sole
discretion;

(l)         Lender shall have received a certificate
from the Secretary or an Assistant Secretary of each Borrower attesting to the
resolutions of such Borrower's board of directors authorizing its execution,
delivery, and performance of this Agreement and the other Loan Documents to
which such Borrower is a party and authorizing specific officers of such
Borrower to execute the same;

(m)       Lender shall have received copies of each
Borrower's Governing Documents, as amended, modified, or supplemented to the
Closing Date, certified by the Secretary or an Assistant Secretary of such
Borrower;

(n)        Lender shall have received a certificate
of status with respect to each Borrower, dated within 30 days of the Closing
Date, such certificate to be issued by the appropriate officer of the
jurisdiction of organization of such Borrower, which certificate shall indicate
that such Borrower is in good standing in such jurisdiction;

(o)        Lender shall have received certificates
of status with respect to each Borrower, each dated within 30 days of the
Closing Date, such certificates to be issued by the appropriate officer of the
jurisdictions (other than the jurisdiction of organization of such Borrower) in
which its failure to be duly qualified would constitute a Material Adverse
Change, which certificates shall indicate that such Borrower is in good
standing in such jurisdictions;

(p)        Lender shall have received a certificate
from the Secretary or an Assistant Secretary of each Guarantor attesting to the
resolutions of such Guarantor's Board of Directors authorizing its execution,
delivery, and performance of the Loan Documents to which such Guarantor is a
party and authorizing specific officers of such Guarantor to execute the same;

(q)        Lender shall have received copies of
each Guarantor's Governing Documents, as amended, modified, or supplemented to
the Closing Date, certified by the Secretary or an Assistant Secretary of such
Guarantor;

(r)        Lender shall have received a certificate
of status with respect to each Guarantor, dated within 30 days of the Closing
Date, such certificate to be issued by the appropriate officer of the
jurisdiction of organization of such Guarantor, which certificate shall
indicate that such Guarantor is in good standing in such jurisdiction;

(s)        Lender shall have received certificates
of status with respect to each Guarantor, each dated within 30 days of the
Closing Date, such certificates to be issued by the appropriate officer of the
jurisdictions (other than the jurisdiction of organization of such Guarantor)
in which its failure to be duly qualified would constitute a Material Adverse
Change, which certificates shall indicate that such Guarantor is in good
standing in such jurisdictions;

(t)         Lender shall have received a
certificate of insurance, together with the endorsements thereto, as are
required by Section 6.7, the form and substance of which shall be
satisfactory to Lender;

(u)        Lender shall have received the opinion
of Porter & Hedges, L.L.P., as counsel to Borrowers and its Domestic
Subsidiaries, in form and substance satisfactory to Lender in the exercise of
its Permitted Discretion;

(v)        Lender shall have received satisfactory
evidence (including a certificate of the chief accounting officer of Parent)
that all tax returns required to be filed by Borrowers and their Domestic
Subsidiaries have been timely filed and all taxes upon Borrowers and their
Domestic Subsidiaries or their properties, assets, income, and franchises
(including Real Property taxes, sales taxes, and payroll taxes) have been paid
prior to delinquency, except such taxes that are the subject of Permitted
Protests;

(w)       Lender shall have received completed
reference checks (including compliance with the U.S. Patriot Act) with respect
to all Borrowers, Guarantors and their respective members of senior management,
the results of which shall be satisfactory to Lender in its Permitted
Discretion;

(x)        Borrowers shall have paid all Lender
Expenses theretofore incurred and invoiced in connection with the transactions
evidenced by this Agreement; 

(y)        Borrowers and each of their Domestic
Subsidiaries shall have received all licenses, approvals or evidence of other
actions (if any) required by any Governmental Authority in connection with the
execution and delivery by Borrowers or their Domestic Subsidiaries of the Loan
Documents or with the consummation of the transactions contemplated thereby; 

(z)        No Material Adverse Change shall have
occurred between November 30, 2006, and the Closing Date and be continuing, as
determined by Lender in its Permitted Discretion; 

(aa)      Lender shall be satisfied that it has
been granted a perfected, first priority lien on the Collateral (subject to
Permitted Liens) and shall have received UCC, tax and judgment lien searches
and other appropriate evidence evidencing the absence of any other liens on the
Collateral, subject to Permitted Liens and other liens acceptable to Lender in
the exercise of its Permitted Discretion;

(bb)      Lender
shall be satisfied in its sole discretion and acceptable to Lender's senior
credit committee, with results of

(i)         a review the Borrowers' Books and
Records limited to information entered in such Books and Records or relating to
events occurring on or after March 1, 2006, and

(ii)        a review of the Borrowers'
Closing Date Business Plan; 

(cc)      Lender shall have completed its legal due
diligence, including without limitation, with respect to ERISA, environmental,
tax, labor, bankruptcy, pension and accounting matters, with results
satisfactory to Lender; and

(dd)      All other documents and legal matters in
connection with the transactions contemplated by this Agreement shall have been
delivered, executed, or recorded (as appropriate) and shall be in form and
substance satisfactory to Lender in the exercise of its Permitted Discretion.

3.2       Conditions Precedent to the Initial
Extension of Credit.  The obligation of Lender to make the initial
Advance (or otherwise to extend any credit provided for hereunder), is subject
to the fulfillment, to the satisfaction of Lender, of each of the conditions
precedent set forth below:

(a)        satisfaction of the conditions precedent
set forth in Section 3.1 above; 

(b)       Parent
shall have received the proceeds of the Senior Notes in an amount sufficient,
together with the equity investment by ValueAct Capital in Seitel Holdings and
Borrowers' and their Subsidiaries' cash on hand, to fully redeem and cancel the
Existing Notes tendered for payment and to pay all merger consideration for the
Acquisition and evidence thereof, reasonably satisfactory to Lender, shall have
been delivered to Lender; 

(c)       The
Existing Notes tendered for payment shall have been fully redeemed and
cancelled; 

(d)        The
Acquisition shall have been consummated and evidence thereof, reasonably
satisfactory to Lender, shall have been delivered to Lender;

(e)       Borrowers
shall have Excess Availability of $20,000,000.00 on the Closing Date
immediately after giving effect to the Acquisition and Lender shall have
received evidence thereof, reasonably satisfactory to Lender; 

(f)         Lender shall have
received the Parent Stock Pledge, in form and substance satisfactory to Lender
in the exercise of its Permitted Discretion, duly executed, and such document
shall be in full force and effect; and

(g)        Lender shall have received the opinion Dechert
LLP, as counsel to Seitel Holdings, in form and substance satisfactory to
Lender in the exercise of its Permitted Discretion; 

(h)        the Senior
Notes shall (i) have been issued pursuant to the Senior Note Offering in form
and substance reasonably satisfactory to Lender and its counsel in their
Permitted Discretion, (ii) not mature, by their terms until at least 90
days after the Maturity Date, (iii) be general unsecured obligations of Parent,
and (iv) be effectively, but not contractually subordinated to all indebtedness
and other obligations owing under the Loan Documents to the extent of the value
of the assets and the other collateral securing the Indebtedness and
Obligations under the Loan Documents

3.3       Conditions Subsequent to the Initial
Extension of Credit.  The obligation of Lender to continue to make
Advances (or otherwise extend credit hereunder) is subject to the fulfillment of
the conditions subsequent set forth below within the time limits specified
below (the failure by Borrowers to so perform or cause to be performed
constituting an Event of Default):

(a)        Within 60 days of the Closing Date,
Lender shall have received delivery of certified copies of the insurance
policies required by Section 6.7 below;

(b)        If and
when Seitel Holdings converts from a limited liability company to a corporation,
Administrative Borrower will (i) will promptly thereafter deliver to Lender
such amendments to and reaffirmations of the Loan Documents, each in form and
substance satisfactory to Lender, that Lender may request in connection
therewith, and (ii) cause to filed, if necessary, appropriate amendments to
financing statements on Form UCC-3 in such office or offices as may be necessary
or, in the Permitted Discretion of Lender, desirable to perfect the Liens granted
pursuant to the Parent Stock Pledge Agreement; 

(c)        Within 5
days of the Closing Date, Lender shall have received certificates representing
the shares of Stock pledged pursuant to the Parent Stock Pledge, as well as
Stock powers with respect thereto endorsed in blank; 

(d)        Within 30
days of the Closing Date, Lender shall have received a Control Agreement with
respect to Seitel Management, Inc.'s securities account with Amegy Bank,
designated as account number 0920-313247439; and

(e)        Within 90
days of the Closing Date, Borrowers will deliver to Lender Projections for
fiscal years 2008, 2009, and 2010.

3.4       Conditions Precedent to all
Extensions of Credit.  The obligation of Lender to make any Advances
hereunder at any time (or to extend any other credit hereunder) shall be
subject to the following conditions precedent:

(a)        the representations and warranties
contained in this Agreement and the other Loan Documents shall be true and
correct in all material respects on and as of the date of such extension of
credit, as though made on and as of such date (except to the extent that such
representations and warranties relate solely to an earlier date, and except for
changes in the ordinary course of business not otherwise constituting an Event
of Default);

(b)        no Default or Event of Default shall
have occurred and be continuing on the date of such extension of credit, nor
shall either result from the making thereof; 

(c)        no injunction, writ, restraining order,
or other judicial or administrative order restricting or prohibiting, directly
or indirectly, the extending of such credit shall have been issued and remain
in force by any Governmental Authority against any Borrower, Lender, or any of
their Affiliates; and

(d)        no Material Adverse Change shall have
occurred and be continuing.

3.5       Term.  This Agreement shall continue in full force and
effect for a term ending on February 14, 2010 (the "Maturity Date").  The
foregoing notwithstanding, Lender shall have the right to terminate its
obligations under this Agreement immediately and without notice upon the
occurrence and during the continuation of an Event of Default.  Lender also
shall have the right to terminate its obligations under this Agreement
immediately and without notice upon the occurrence and during the continuation
of any failure of the parties to satisfy any of the conditions set forth in Section
3.1 on or before February 28, 2007.

3.6       Effect of Termination.  On the date of termination of this Agreement, all
Obligations (including contingent reimbursement obligations of Borrowers with
respect to any outstanding Letters of Credit and including all Bank Products
Obligations) immediately shall become due and payable without notice or demand
(including (a) the Applicable Prepayment Premium, (b) either (i) providing cash
collateral to be held by Lender in an amount equal to 105% of the then extant
Letter of Credit Usage, or (ii) causing the original Letters of Credit to be
returned to Lender, and (c) providing cash collateral (in an amount determined
by Lender in the exercise of its Permitted Discretion as sufficient to satisfy
the reasonably estimated credit exposure) to be held by Lender for the benefit
of the Bank Product Providers with respect to the then extant Bank Products
Obligations).  No termination of this Agreement, however, shall relieve or
discharge Borrowers or their Domestic Subsidiaries of their duties,
Obligations, or covenants hereunder and the Lender's Liens in the Collateral
shall remain in effect until all Obligations have been paid in full and
Lender's obligations to provide additional credit hereunder have been
terminated.  When this Agreement has been terminated and all of the Obligations
have been paid in full and Lender's obligations to provide additional credit
under the Loan Documents have been terminated irrevocably, Lender will, at
Borrowers' sole expense, execute and deliver any lien releases, mortgage
releases, re-assignments of trademarks, discharges of security interests, and
other similar discharge or release documents (and, if applicable, in recordable
form) as are reasonably necessary to release, as of record, the Lender's Liens
and all notices of security interests and liens previously filed by Lender with
respect to the Obligations, and authorize Borrowers and Guarantors to file, at
their expense, UCC termination statements in respect of Code filings made by
Lender in respect of the Loan Parties.  

3.7       Early Termination by Borrowers.  Borrowers have the option, at any time upon five (5)
days prior written notice by Administrative Borrower to Lender, to terminate
this Agreement by paying to Lender, in cash, the Obligations (including (a) the
Applicable Prepayment Premium, (b) either (i) providing cash collateral to be
held by Lender in an amount equal to 105% of the then extant Letter of Credit
Usage, or (ii) causing the original Letters of Credit to be returned to Lender,
and (c) providing cash collateral (in an amount determined by Lender in the
exercise of its Permitted Discretion as sufficient to satisfy the reasonably
estimated credit exposure) to be held by Lender for the benefit of the Bank
Product Providers with respect to the then extant Bank Products Obligations),
in full.  If Administrative Borrower has sent a notice of termination pursuant
to the provisions of this Section, then Lender's obligations to extend credit
hereunder shall terminate and Borrowers shall be obligated to repay the
Obligations (including (a) the Applicable Prepayment Premium, (b) either
(i) providing cash collateral to be held by Lender in an amount equal to
105% of the then extant Letter of Credit Usage, or (ii) causing the original
Letters of Credit to be returned to Lender, and (c) providing cash collateral
(in an amount determined by Lender in the exercise of its Permitted Discretion
as sufficient to satisfy the reasonably estimated credit exposure) to be held
by Lender for the benefit of the Bank Product Providers with respect to the
then extant Bank Products Obligations), in full, on the date set forth as the
date of termination of this Agreement in such notice. 

4.         CREATION OF SECURITY INTEREST

4.1       Grant of Security Interest.  Each Borrower hereby grants to Lender for the
benefit of Lender and the Bank Product Providers a continuing security interest
in all of its right, title, and interest in all currently existing and
hereafter acquired or arising Collateral, as security for the repayment of any
and all of the Obligations in accordance with the terms and conditions of the
Loan Documents and in order to secure prompt performance by Borrowers of each
of their covenants and duties under the Loan Documents.  Anything contained in
this Agreement or any other Loan Document to the contrary notwithstanding,
except for the use of cash in the ordinary course of business and for the
purposes permitted under this Agreement, and except for Permitted Dispositions,
Borrowers and their Domestic Subsidiaries have no authority, express or
implied, to dispose of any item or portion of the Collateral.

4.2       Negotiable Collateral.  In the event that any Borrower Collateral, including
proceeds, is evidenced by or consists of Negotiable Collateral, and if and to
the extent that Lender determines that perfection or priority of Lender's
security interest is dependent on or enhanced by possession, the applicable
Borrower, immediately upon the request of Lender, shall endorse and deliver
physical possession of such Negotiable Collateral to Lender.

4.3       Collection of Accounts, General
Intangibles, and Negotiable Collateral.  At any time after the
occurrence and during the continuation of an Event of Default, Lender or
Lender's designee may (a) notify Account Debtors of Borrowers that Borrowers'
Accounts, chattel paper, or General Intangibles have been assigned to Lender or
that Lender has a security interest therein, or (b) collect Borrowers'
Accounts, chattel paper, or General Intangibles directly and charge the
reasonable collection costs and expenses to the Loan Account.  Each Borrower
agrees that it will hold in trust for Lender, as Lender's trustee, any of its
or its Domestic Subsidiaries' Collections that it receives and immediately will
deliver such Collections to Lender or a Cash Management Bank in their original
form as received by such Borrower or its Domestic Subsidiaries.

4.4       Filing of Financing Statements; Commercial
Tort Claims; Delivery of Additional Documentation Required.  (a)  Borrowers authorize Lender to file any
financing statement necessary or, in the exercise of Lender's Permitted
Discretion, desirable to effectuate the transactions contemplated by the Loan
Documents, and any continuation statement or amendment with respect thereto, in
any appropriate filing office without the signature of Borrowers where
permitted by applicable law.  Borrowers hereby ratify the filing of any
financing statements filed prior to the date hereof and described on Schedule
4.4 hereof.

(b)        If Borrowers or their Domestic
Subsidiaries acquire any commercial tort claims after the date hereof,
Borrowers shall promptly (but in any event within five (5) Business Days after
such acquisition) deliver to Lender a written description of such commercial
tort claim and shall deliver a written agreement, in form and substance
satisfactory to Lender in the exercise of its Permitted Discretion, pursuant to
which the applicable Borrower or its Domestic Subsidiary shall pledge and
collaterally assign all of its right, title and interest in and to such
commercial tort claim to Lender, as security for the Obligations (a "Commercial
Tort Claim Assignment").

(c)        At any time upon the request of Lender,
Borrowers shall execute or deliver to Lender and shall cause their Domestic
Subsidiaries to execute or deliver to Lender any and all financing statements,
original financing statements in lieu of continuation statements, fixture
filings, security agreements, pledges, assignments, Commercial Tort Claim
Assignments, endorsements of certificates of title, and all other documents
(collectively, the "Additional Documents") that Lender may request in
its Permitted Discretion, in form and substance satisfactory to Lender in the
exercise of its Permitted Discretion, to create, perfect and continue perfected
or to better perfect the Lender's Liens in the assets of Borrowers and their
Domestic Subsidiaries (whether now owned or hereafter arising or acquired,
tangible or intangible, real or personal), to create and perfect Liens in favor
of Lender in any Real Property acquired after the Closing Date, and in order to
fully consummate all of the transactions contemplated hereby and under the
other Loan Documents.  To the maximum extent permitted by applicable law, each
Borrower authorizes Lender to execute any such Additional Documents in the
applicable Borrower's name and authorize Lender to file such executed
Additional Documents in any appropriate filing office to the extent relating to
the perfection or continued perfection of Lender's Liens.  In addition, on such
periodic basis as Lender shall require in the exercise of its Permitted
Discretion, Borrowers shall (i) provide Lender with a report of all new
material patentable, copyrightable, or trademarkable materials acquired or
generated by Borrowers or their Domestic Subsidiaries during the prior period,
(ii) cause all material patents, copyrights, and trademarks acquired or
generated by Borrowers or their Domestic Subsidiaries that are not already the
subject of a registration with the appropriate filing office (or an application
therefor diligently prosecuted) to be registered with such appropriate filing
office in a manner sufficient to impart constructive notice of a Borrower's or
a Domestic Subsidiary of a Borrower's ownership thereof, and (iii) cause to be
prepared, executed, and delivered to Lender supplemental schedules to the
applicable Loan Documents to identify such patents, copyrights, and trademarks
as being subject to the security interests created thereunder.

4.5       Power of Attorney.  Each Borrower hereby irrevocably makes,
constitutes, and appoints Lender (and any of Lender's officers, or employees)
as such Borrower's true and lawful attorney, with power to (a) if such Borrower
refuses to, or fails timely to execute and deliver any of the documents
described in Section 4.4, sign the name of such Borrower on any of the
documents described in Section 4.4, (b) at any time that an Event of
Default has occurred and is continuing, sign such Borrower's name on any
invoice or bill of lading relating to the Borrower Collateral, drafts against
Account Debtors, or notices to Account Debtors, (c) send requests for
verification of Borrowers' or their Domestic Subsidiaries' Accounts, (d)
endorse such Borrower's name on any of its payment items (including all of its
Collections) that may come into Lender's possession, (e) at any time that an
Event of Default has occurred and is continuing, make, settle, and adjust all
claims under such Borrower's policies of insurance and make all determinations
and decisions with respect to such policies of insurance, in each case in the
exercise of Lender's Permitted Discretion, and (f) at any time that an Event of
Default has occurred and is continuing, settle and adjust disputes and claims
respecting Borrowers' or their Domestic Subsidiaries' Accounts, chattel paper,
or General Intangibles directly with Account Debtors, for amounts and upon
terms that Lender determines to be reasonable in the exercise of Lender's
Permitted Discretion, and Lender may cause to be executed and delivered any
documents and releases that Lender determines to be necessary for such
purpose.  The appointment of Lender as each Borrower's attorney, and each and
every one of its rights and powers, being coupled with an interest, is
irrevocable until all of the Obligations have been fully and finally repaid and
performed and Lender's obligations to extend credit hereunder are terminated.

4.6       Right to Inspect.  Lender (through any of its officers, employees, or agents) shall have
the right, from time to time hereafter, to inspect the Books and make copies or
abstracts thereof and to check, test, and appraise the Collateral, or any
portion thereof, in order to verify Borrowers' and their Domestic Subsidiaries'
financial condition or the amount, quality, value, condition of, or any other
matter relating to, the Collateral, subject to the limitations set forth in Section
2.11(d) with respect to chargeable expenses.

4.7       Control
Agreements.  Borrowers agree that they will not, and will not
permit their Domestic Subsidiaries to, transfer assets out of any of their
Deposit Accounts or Securities Accounts; provided, however, that so long as no
Event of Default has occurred and is continuing or would result therefrom,
Borrowers and their Domestic Subsidiaries may use such assets (and the proceeds
thereof) to the extent not prohibited by this Agreement or the other Loan
Documents and, if the transfer is to another bank or securities intermediary,
so long as the applicable Borrower or Domestic Subsidiary, Lender, and the
substitute bank or securities intermediary have entered into a Control
Agreement.  Borrowers agree that they will and will cause their Domestic
Subsidiaries to take any or all reasonable steps that Lender requests in order
for Lender to obtain control in accordance with Sections 9-104, 9-105, 9-106,
and 9-107 of the Code with respect to any of its or their Securities Accounts,
Deposit Accounts, electronic chattel paper, Investment Property, and
letter-of-credit rights, except for Borrowers' payroll accounts, medical
disbursement accounts, and the Travelers' Collateral Account.  No arrangement
contemplated hereby or by any Control Agreement in respect of any Securities
Accounts or other Investment Property shall be modified by Borrowers without
the prior written consent of Lender.  Upon the occurrence and during the
continuance of an Event of Default, Lender may notify any bank or securities
intermediary to liquidate the applicable Deposit Account or Securities Account
or any related Investment Property maintained or held thereby and remit the
proceeds thereof to the Lender's Account.

5.         REPRESENTATIONS AND WARRANTIES.

In order to induce Lender to enter into this
Agreement, each Borrower makes the following representations and warranties to
Lender which shall be true, correct, and complete, in all material respects, as
of the date hereof, and shall be true, correct, and complete, in all material
respects, as of the Closing Date, and at and as of the date of the making of
each Advance (or other extension of credit) made thereafter, as though made on
and as of the date of such Advance (or other extension of credit) (except to
the extent that such representations and warranties relate solely to an earlier
date, and except for changes in the ordinary course of business not otherwise
constituting an Event of Default) and such representations and warranties shall
survive the execution and delivery of this Agreement:

5.1       No Encumbrances.  Each Borrower and its Domestic Subsidiaries has
good and indefeasible title to their assets (other than leased assets), in each
case free and clear of Liens except for Permitted Liens.

5.2       Eligible Accounts.  The Eligible Accounts are bona fide existing payment
obligations of Account Debtors created by the leasing or licensing of seismic
data, the sale and delivery of Inventory or the rendition of services to such
Account Debtors in the ordinary course of Borrowers' business, owed to
Borrowers without any known defenses, disputes, offsets, counterclaims, or
rights of return or cancellation, except to the extent deducted in the
calculation of the Borrowing Base. As to each Account that is identified by
Administrative Borrower as an Eligible Account in a borrowing base report
submitted to Lender, such Account is not excluded as ineligible by virtue of
one or more of the excluding criteria set forth in the definition of Eligible
Accounts.

5.3       Equipment.  All of the Equipment of
Borrowers and their Domestic Subsidiaries is used or held for use in their
business and is in operating condition, reasonable wear and tear excepted.

5.4       Location of Inventory and Equipment.  The Inventory and Equipment of Borrowers and their
Domestic Subsidiaries are not stored with a bailee, warehouseman, or similar
party and are located only at, or in-transit between, the locations identified
on Schedule 5.4 (as such Schedule may be updated pursuant to Section
6.8).

5.5       Inventory Records.  Each Borrower keeps correct and accurate records
itemizing and describing the type, quality, and quantity of its and its
Domestic Subsidiaries' Inventory and the book value thereof.

5.6       State of
Incorporation; Location of Chief Executive Office; FEIN;
Organizational ID Number; Commercial Tort Claims

(a)        The jurisdiction
of organization of each Borrower and each of its Domestic Subsidiaries is set
forth on Schedule 5.6(a).

(b)        The chief executive office of each
Borrower and each of its Domestic Subsidiaries is located at the address
indicated on Schedule 5.6(b) (as such Schedule may be updated pursuant
to Section 6.8).

(c)        Each Borrower's and each of its Domestic
Subsidiaries' FEIN and organizational identification number issued by its
jurisdiction of organization, if any, are identified on Schedule 5.6(c).

(d)        As of the date of this Agreement,
Borrowers and their Domestic Subsidiaries do not hold any commercial tort
claims, except as set forth on Schedule 5.6(d).

5.7       Due Organization and Qualification;
Domestic Subsidiaries

(a)        Each Borrower is duly organized and existing
and in good standing under the laws of the jurisdiction of its organization and
qualified to do business in any state where the failure to be so qualified
reasonably could be expected to have a Material Adverse Change. 

(b)        Set forth on Schedule
5.7(b), is a complete and accurate description of the authorized Stock
of each Borrower, by class, and, as of the Closing Date immediately after
giving effect to the Acquisition, a description of the number of shares of each
such class that are issued and outstanding.  Other than as described on Schedule
5.7(b), there are no subscriptions, options, warrants, or calls relating to
any shares of each Borrower's Stock, including any right of conversion or
exchange under any outstanding security or other instrument.  Except as set
forth on Schedule 5.7(b), no Borrower is subject to any obligation
(contingent or otherwise) to repurchase or otherwise acquire or retire any
shares of its Stock or any security convertible into or exchangeable for any of
its Stock.

(c)        Set forth on Schedule
5.7(c), is a complete and accurate list of each Borrower's direct and
indirect Domestic Subsidiaries, showing: (i) the jurisdiction of their
organization; (ii) the number of shares of each class of common and preferred
Stock authorized for each of such Domestic Subsidiaries; and (iii) the number
and the percentage of the outstanding shares of each such class owned directly
or indirectly by the applicable Borrower.  All of the outstanding Stock of each
such Domestic Subsidiary has been validly issued and is fully paid and
non-assessable.

(d)        Except as set
forth on Schedule 5.7(c), there are no subscriptions, options, warrants,
or calls relating to any shares of any Borrower's Domestic Subsidiaries' Stock,
including any right of conversion or exchange under any outstanding security or
other instrument.  No Borrower or any of its respective Domestic Subsidiaries
is subject to any obligation (contingent or otherwise) to repurchase or
otherwise acquire or retire any shares of any Borrower's Domestic Subsidiaries'
Stock or any security convertible into or exchangeable for any such Stock. 

5.8       Due Authorization; No Conflict

(a)        As to each Borrower, the execution,
delivery, and performance by such Borrower of this Agreement and the other Loan
Documents to which it is a party have been duly authorized by all necessary
action on the part of such Borrower.

(b)        As to each Borrower, the execution,
delivery, and performance by such Borrower of this Agreement and the other Loan
Documents to which it is a party do not and will not (i) violate any
provision of federal, state, or local law or regulation applicable to any
Borrower, the Governing Documents of any Borrower, or any order, judgment, or
decree of any court or other Governmental Authority binding on any Borrower,
(ii) conflict with, result in a breach of, or constitute (with due notice
or lapse of time or both) a default under any material contractual obligation
of any Borrower, (iii) result in or require the creation or imposition of
any Lien of any nature whatsoever upon any properties or assets of Borrower,
other than Permitted Liens, or (iv) require any approval of any Borrower's
interest holders or any approval or consent of any Person under any material
contractual obligation of any Borrower, other than consents or approvals that
have been obtained and that are still in force and effect.

(c)        Other than the filing of financing
statements, the execution, delivery, and performance by each Borrower of this
Agreement and the other Loan Documents to which such Borrower is a party do not
and will not require any registration with, consent, or approval of, or notice
to, or other action with or by, any Governmental Authority, other than consents
or approvals that have been obtained and that are still in force and effect.

(d)        As to each Borrower, this Agreement and
the other Loan Documents to which such Borrower is a party, and all other
documents contemplated hereby and thereby, when executed and delivered by such
Borrower, will be the legally valid and binding obligations of such Borrower,
enforceable against such Borrower in accordance with their respective terms,
except as enforcement may be limited by equitable principles or by bankruptcy,
insolvency, reorganization, moratorium, or similar laws relating to or limiting
creditors' rights generally.

(e)        The Lender's
Liens are validly created, perfected, and first priority Liens, subject only to
Permitted Liens.

(f)         The execution, delivery, and performance
by each Guarantor of the Loan Documents to which it is a party have been duly
authorized by all necessary action on the part of such Guarantor.

(g)        The execution, delivery, and performance
by each Guarantor of the Loan Documents to which it is a party do not and will
not (i) violate any provision of federal, state, or local law or regulation
applicable to such Guarantor, the Governing Documents of such Guarantor, or any
order, judgment, or decree of any court or other Governmental Authority binding
on such Guarantor, (ii) conflict with, result in a breach of, or constitute
(with due notice or lapse of time or both) a default under any material
contractual obligation of such Guarantor, (iii) result in or require the
creation or imposition of any Lien of any nature whatsoever upon any properties
or assets of such Guarantor, other than Permitted Liens, or (iv) require any
approval of such Guarantor's interest holders or any approval or consent of any
Person under any material contractual obligation of such Guarantor, other than
consents or approvals that have been obtained and that are still in force and
effect.

(h)        Other than the filing of financing
statements, the execution, delivery, and performance by each Guarantor of the
Loan Documents to which such Guarantor is a party do not and will not require
any registration with, consent, or approval of, or notice to, or other action
with or by, any Governmental Authority, other than consents or approvals that
have been obtained and that are still in force and effect.

(i)         The Loan Documents to which each
Guarantor is a party, and all other documents contemplated hereby and thereby,
when executed and delivered by such Guarantor, will be the legally valid and
binding obligations of such Guarantor, enforceable against such Guarantor in
accordance with their respective terms, except as enforcement may be limited by
equitable principles or by bankruptcy, insolvency, reorganization, moratorium,
or similar laws relating to or limiting creditors' rights generally.

5.9       Litigation.  Other than those matters disclosed on Schedule
5.9, there are no actions, suits, or proceedings pending or, to the best
knowledge of Borrowers, threatened against Borrowers, or any of their Domestic
Subsidiaries, as applicable, except for (a) matters that are fully covered by
insurance (subject to customary deductibles), and (b) matters arising after the
date of this Agreement that, if decided adversely to Borrowers, or any of their
Domestic Subsidiaries, as applicable, reasonably could not be expected to
result in a Material Adverse Change. 

5.10     No Material Adverse Change.  All financial statements relating to Borrowers and
their Domestic Subsidiaries that have been delivered by Borrowers to Lender
have been prepared in accordance with GAAP (except, in the case of unaudited
financial statements, for the lack of footnotes and being subject to year-end
audit adjustments) and present fairly in all material respects, Borrowers' and
their Domestic Subsidiaries' financial condition as of the date thereof and
results of operations for the period then ended.  There has not been a Material
Adverse Change with respect to Borrowers and their Domestic Subsidiaries (or
Guarantors, as applicable) since the date of the latest financial statements
submitted to Lender on or before the Closing Date.

5.11     Fraudulent Transfer.  No transfer of property is being made by any
Borrower or any Domestic Subsidiary of a Borrower and no obligation is being
incurred by any Borrower or any Domestic Subsidiary of a Borrower in connection
with the transactions contemplated by this Agreement or the other Loan
Documents with the intent to hinder, delay, or defraud either present or future
creditors of Borrowers or their Subsidiaries.

5.12     Employee Benefits.  Except as set forth on Schedule
5.12, none of Borrowers, any of their Domestic Subsidiaries, or any of
their ERISA Affiliates maintains or contributes to any Benefit Plan.

5.13     Environmental Condition.  Except as set forth on Schedule 5.13, (a) to
Borrowers' knowledge, none of Borrowers' or their Subsidiaries' properties or
assets has ever been used by Borrowers, their Subsidiaries, or by previous
owners or operators in the disposal of, or to produce, store, handle, treat,
release, or transport, any Hazardous Materials, where such production, storage,
handling, treatment, release or transport was in violation, in any material
respect, of applicable Environmental Law, (b) to Borrowers' knowledge, none of
Borrowers' or their Subsidiaries' properties or assets has ever been designated
or identified in any manner pursuant to any environmental protection statute as
a Hazardous Materials disposal site, (c) none of Borrowers or any of their
Subsidiaries have received notice that a Lien arising under any Environmental
Law has attached to any revenues or to any Real Property owned or operated by
Borrowers or their Subsidiaries, and (d) none of Borrowers or any of their
Subsidiaries have received a summons, citation, notice, or directive from the
Environmental Protection Agency or any other federal or state governmental
agency concerning any action or omission by any Borrower or any Subsidiary of a
Borrower resulting in the releasing or disposing of Hazardous Materials into
the environment.

5.14     Brokerage Fees.  Borrowers and their Domestic Subsidiaries have not
utilized the services of any broker or finder in connection with obtaining
financing from Lender under this Agreement and no brokerage commission or
finder's fee is payable by Borrowers or their Domestic Subsidiaries in
connection herewith.

5.15     Intellectual
Property.  Each Borrower and each Domestic Subsidiary of a
Borrower owns, or holds licenses in, all trademarks, trade names, copyrights,
patents, patent rights, and licenses that are necessary to the conduct of its
business as currently conducted.  Attached hereto as Schedule 5.15
(as updated from time to time) is a true, correct, and complete listing of all
material patents, patent applications, trademarks, trademark applications, copyrights,
and copyright registrations as to which each Borrower or one of its Domestic
Subsidiaries is the owner or is an exclusive licensee.

5.16     Leases.  Borrowers and their Domestic Subsidiaries enjoy
peaceful and undisturbed possession under all leases material to their business
and to which they are parties or under which they are operating.  All of such
leases are valid and subsisting and no material default by Borrowers or their
Domestic Subsidiaries exists under any of them.

5.17     DDAs.  Set forth on Schedule 5.17 are all of
Borrowers' and their Domestic Subsidiaries' Deposit Accounts and Securities
Accounts, including, with respect to each bank or securities intermediary, (i)
the name and address of such Person, and (ii) the account numbers of the
Deposit Accounts or Securities Accounts maintained with such Person.

5.18     Complete Disclosure.  All factual information (taken as a whole)
furnished by or on behalf of Borrowers or their Subsidiaries in writing to
Lender (including all information contained in the Schedules hereto or in the
other Loan Documents) for purposes of or in connection with this Agreement, the
other Loan Documents or any transaction contemplated herein or therein is, and
all other such factual information (taken as a whole) hereafter furnished by or
on behalf of Borrowers or their Subsidiaries in writing to the Lender will be,
true and accurate, in all material respects, on the date as of which such
information is dated or certified and not incomplete by omitting to state any
fact necessary to make such information (taken as a whole) not misleading in
any material respect at such time in light of the circumstances under which
such information was provided.

5.19     Indebtedness.  Set forth on Schedule 5.19 is a true and
complete list of all Indebtedness of each Borrower and each Domestic Subsidiary
of a Borrower outstanding immediately prior to the Closing Date that is to
remain outstanding after the Closing Date and such Schedule accurately reflects
the aggregate principal amount of such Indebtedness on the date of this
Agreement and the principal terms thereof.

5.20     Compliance
with Laws.  Borrowers possess all necessary or appropriate
licenses, permits and authorities to conduct their businesses as presently
conducted and are in compliance with all laws applicable to the Borrowers in
the operation of their business and in the use and occupancy of their property,
including, without limitation, federal, state, and local environmental and tax
laws and regulations and the Employee Retirement Income Security Act, as
amended, and regulations thereunder except where the failure to hold any
license or permit or any non-compliance would not reasonably be expected to
result in a Material Adverse Change.

5.21     Non-Material Domestic
Subsidiaries.  None of the events permitted by the exceptions
allowed for Non-Material Subsidiaries set forth in Sections 6.11, 7.3, 7.4,
7.10, 8.3, 8.5, 8.6, 8.7, 8.8, or 8.10 will cause a Material Adverse Change
with respect to Borrowers and their Material Domestic Subsidiaries (taken as a
whole) since the date of the latest financial statements submitted to Lender on
or before the Closing Date.  Except for intercompany balances, none of the
Non-Material Domestic Subsidiaries owns any asset (including without limitation
any patent, trademark, copyright, or other intellectual property), or is the
licensee, permittee, or other authorized user or person under any license,
permit, or other similar agreement, the absence of which would create a
Material Adverse Change to the business of Borrowers and their Material
Domestic Subsidiaries (taken as a whole), as such business is presently
conducted.  Except for intercompany balances, none of the Non-Material Domestic
Subsidiaries is subject to any liability that would create a Material Adverse
Change to the business of Borrowers and their Material Domestic Subsidiaries
(taken as a whole), as such business is presently conducted.

6.         AFFIRMATIVE COVENANTS.

Each Borrower covenants
and agrees that, so long as any credit hereunder shall be available and until
payment in full of the Obligations, Borrowers shall, and shall cause each of
their respective Domestic Subsidiaries to, do all of the following:

6.1       Accounting System.  Maintain a system of accounting that enables
Borrowers to produce financial statements in accordance with GAAP and maintain
records pertaining to the Collateral that contain information as from time to
time reasonably may be requested by Lender.  

6.2       Collateral
Reporting.  Provide Lender with the following documents at the
following times in form satisfactory to Lender:

	
  Monthly
  (not later than 

          (i) the
  30th day after the end of each month that is not the last month of
  a calendar quarter, and 

          (ii) the
  45th day after the end of each calendar quarter)

  	
              (a)        a
  Borrowing Base Certificate (including detail regarding those Accounts of
  Borrowers that are not Eligible Accounts),

              (b)        a
  summary aging, by vendor, of Borrowers' and their Domestic Subsidiaries'
  accounts payable and any book overdraft, and

              (c)        a
  detailed report regarding Borrowers' and their Domestic Subsidiaries' cash
  and Cash Equivalents including an indication of which amounts constitute
  Qualified Cash.

  
	
  Quarterly (not later than the
  45th day after the end of each calendar quarter)

  	
              (d)        a
  detailed list of each Borrower's and each Domestic Subsidiary of a Borrower's
  customers, and

              (e)        a
  report regarding each Borrower's and each Domestic Subsidiary of a Borrower's
  accrued, but unpaid, ad valorem taxes.

  
	
  Promptly upon request by
  Lender, in the exercise of its Permitted Discretion 

  	
              (f)         copies
  of invoices in connection with Borrowers' and their Domestic Subsidiaries'
  Accounts, credit memos, remittance advices, deposit slips, shipping and
  delivery documents in connection with Borrowers' and their Domestic
  Subsidiaries' Accounts and, for Inventory and Equipment acquired by Borrowers
  or their Domestic Subsidiaries, purchase orders and invoices, and

              (g)        such
  other reports as to the Collateral, or the financial condition of Borrowers
  and their Domestic Subsidiaries, as Lender may request in the exercise of its
  Permitted Discretion.

  

In addition, each Borrower agrees to cooperate
fully with Lender to facilitate and implement a mutually agreeable system of
electronic collateral reporting in order to provide electronic reporting of
each of the items set forth above.

6.3       Financial
Statements, Reports, Certificates.  Deliver to Lender:

(a)        as soon as available, but in any event
within 30 days (45 days in the case of a month that is the end of one of
Parent's fiscal quarters and on or before June 14,
2007, for the months ending February 28, 2007, and March 31, 2007) after
the end of each month during each of Parent's fiscal years,

(i)         a company-prepared consolidated
balance sheet, income statement, and statement of cash flow covering Parent's
and its Domestic Subsidiaries' operations during such period,

(ii)        a certificate signed on behalf of
the Parent by the chief financial officer or, if the chief financial officer is
not available, the chief accounting officer of Parent to the effect that:

A.        the financial statements delivered
hereunder have been prepared in accordance with GAAP (except for the lack of
footnotes and being subject to year-end audit adjustments) and fairly present
in all material respects the financial condition of Parent and its Domestic
Subsidiaries,

B.         the representations and warranties
of Borrowers contained in this Agreement and the other Loan Documents are true
and correct in all material respects on and as of the date of such certificate,
as though made on and as of such date (except to the extent that such
representations and warranties relate solely to an earlier date, and except for
changes in the ordinary course not otherwise constituting an Event of Default),
and

C.        there does not exist any condition
or event that constitutes a Default or Event of Default (or, to the extent of
any non-compliance, describing such non-compliance as to which he or she may
have knowledge and what action Borrowers have taken, are taking, or propose to
take with respect thereto), and

(iii)       for each month that is the date
on which a financial covenant in Section 7.17 is to be tested, a
Compliance Certificate demonstrating, in reasonable detail, compliance at the
end of such period with the applicable financial covenants contained in Section 7.17,

(b)        as soon
as available, but in any event within 45 days after the end of each quarter
during each of Parent's fiscal years (but
notwithstanding the foregoing, on or before June 14, 2007, for the fiscal quarter
ending March 31, 2007),

(i)         a company-prepared consolidating
balance sheet and income statement covering Parent's and its Domestic
Subsidiaries' operations during such period (the omission of a consolidating
cash flow statement from this clause being intentional),

(ii)        a certificate signed on behalf of
the Parent by the chief financial officer or, if the chief financial officer is
not available, the chief accounting officer of Parent to the effect that:

A.        the financial statements delivered
hereunder have been prepared in accordance with GAAP (except for the lack of
footnotes and being subject to year-end audit adjustments) and fairly present
in all material respects the financial condition of Parent and its Domestic
Subsidiaries,

B.         the representations and warranties
of Borrowers contained in this Agreement and the other Loan Documents are true
and correct in all material respects on and as of the date of such certificate,
as though made on and as of such date (except to the extent that such
representations and warranties relate solely to an earlier date, and except for
changes in the ordinary course not otherwise constituting an Event of Default),
and

C.        there does not exist any condition
or event that constitutes a Default or Event of Default (or, to the extent of
any non-compliance, describing such non-compliance as to which he or she may
have knowledge and what action Borrowers have taken, are taking, or propose to
take with respect thereto),

(c)        as soon
as available, but in any event within 90 days after the end of each of Parent's
fiscal years,

(i)         consolidated financial statements
of Parent and its Subsidiaries for each such fiscal year, audited by
independent certified public accountants reasonably acceptable to Lender and
certified, without any qualifications, by such accountants to have been
prepared in accordance with GAAP (such audited financial statements to include
a balance sheet, income statement, and statement of cash flow and, if prepared,
such accountants' letter to management), and

(ii)        a certificate of such accountants
addressed to Lender stating that, in the course of performing their audit of
the aforedescribed annual financial statements, there did not come to the
attention of such accountants the existence of any Default or Event of Default
under Section 7.17 with respect to the subject fiscal year,

(d)        as soon as available, but in any event
within 30 days after the start of each of Parent's fiscal years, Projections,
in form and substance (including as to scope and underlying assumptions)
satisfactory to Lender, in its Permitted Discretion, for the forthcoming twelve
(12) months, month by month, certified by the chief financial officer or chief
accounting officer of Parent as being such officer's diligently prepared good
faith estimate of the financial performance of Parent and its Domestic
Subsidiaries during the period covered thereby,

(e)        if and
when (or within five Business Days after) filed by any Borrower, 

(i)         notice of the filing of each Form
10-Q quarterly reports, Form 10‐K annual reports, and Form 8-K current
reports (it being contemplated that Lender will obtain the actual filings using
Lender's own resources), 

(ii)        any other filings made by such
Borrower with the SEC,

(iii)       copies of Borrowers' United
States federal income tax returns, any Domestic Subsidiary's United States
federal partnership tax reports, and any amendments thereto, filed with the
Internal Revenue Service, and

(iv)       any other information that is
provided by Parent to its shareholders generally,

(f)         if and
when (or within five Business Days after) sent or received by any Borrower,
copies of any notices, demands, or notices of default from any Borrower to the
holders of the Outstanding Notes or from any one of the trustee under the
Senior Indenture, the trustee under the indenture governing the Existing Notes,
or the holders of 25% or more of the then outstanding aggregate principal amount
of either the Existing Notes or the Senior Notes,

(g)        if and when filed by any Borrower or any
Domestic Subsidiary of a Borrower and if requested by Lender, satisfactory
evidence of payment of applicable excise taxes in each jurisdiction in which
(i) any Borrower or any Domestic Subsidiary of a Borrower conducts business or
is required to pay any such excise tax, (ii) any Borrower's or any Domestic
Subsidiary of a Borrower's failure to pay any such applicable excise tax would
result in a Lien on the properties or assets of such Borrower or such Domestic
Subsidiary, or (iii) any Borrower's and any Domestic Subsidiary of a Borrower's
failure to pay any such applicable excise tax reasonably could be expected to
result in a Material Adverse Change,

(h)        as soon as a Borrower has knowledge of
any event or condition that constitutes a Default or an Event of Default,
notice thereof and a statement of the curative action that Borrowers are taking
or propose to take with respect thereto,

(i)         promptly after the commencement
thereof, but in any event within 5 Business Days after the service of process
with respect thereto on any Borrower or any Domestic Subsidiary of a Borrower,
notice of all actions, suits, or proceedings brought by or against any Borrower
or any Domestic Subsidiary of a Borrower before any Governmental Authority that,
if determined adversely to such Borrower or such Domestic Subsidiary, could be
reasonably expected to result in a Material Adverse Change, and

(j)         promptly upon the request of Lender,
any other report reasonably requested relating to the financial condition of
Borrowers or their Domestic Subsidiaries.

In addition to the
financial statements referred to above, Borrowers agree to deliver financial
statements for the subject dates and periods prepared on both a consolidated
and consolidating basis; provided, however, that the monthly
financial statements provided pursuant to Section 6.3(a) and the annual,
audited financial statements provided pursuant to Section 6.3(c)
need be only on a consolidated basis.  Parent also agrees that no Domestic
Subsidiary of Parent will have a fiscal year different from that of Parent. 
Borrowers agree to cooperate with Lender to allow Lender to consult with their
independent certified public accountants if Lender reasonably requests the
right to do so and that, in such connection, their independent certified public
accountants are authorized to communicate with Lender and to release to Lender
whatever financial information concerning Borrowers or their Subsidiaries that
Lender reasonably may request; provided, however, that Borrowers
make no assurance with respect to the independent determinations of the
accountants as to the nature or extent of their cooperation. 

6.4       Guarantor
Reports.  Cause each Guarantor to deliver its annual
unaudited financial statements at the time when Parent provides its audited
financial statements to Lender, but only to the extent such Guarantor's
financial statements are not consolidated with Parent's financial statements,
and copies of all of its federal income tax returns (unless filing consolidated
returns with Parent) as soon as the same are available and in any event no
later than 30 days after the same are required to be filed by law (after giving
effect to any properly filed extension).

6.5       Maintenance of Properties.  Maintain and preserve all of their properties which
are necessary or useful in the proper conduct of their business in good working
order and condition, ordinary wear and tear excepted, and comply at all times
with the provisions of all leases to which it is a party as lessee, so as to
prevent any loss or forfeiture thereof or thereunder, if the loss or forfeiture
would cause a Material Adverse Change.

6.6       Taxes.  Cause all assessments and taxes, whether real,
personal, or otherwise, due or payable by, or imposed, levied, or assessed
against Borrowers, their Subsidiaries, or any of their respective assets to be
paid in full, before delinquency or before the expiration of any extension
period, except to the extent that the validity of such assessment or tax shall
be the subject of a Permitted Protest.  Borrowers will, and will cause their
Subsidiaries to, make timely payment or deposit of all tax payments and
withholding taxes required of them by applicable laws, including those laws
concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal
income taxes, and will, upon request, furnish Lender with proof satisfactory to
Lender indicating that the applicable Borrower or Subsidiary of a Borrower has
made such payments or deposits, except to the extent of any pending Permitted
Protests in respect thereof.

6.7       Insurance

(a)        At Borrowers' expense, maintain
insurance respecting their and their Domestic Subsidiaries' assets wherever
located, covering loss or damage by fire, theft, explosion, and all other
hazards and risks as ordinarily are insured against by other Persons engaged in
the same or similar businesses.  Borrowers also shall maintain public liability
and product liability insurance, as well as insurance against larceny,
embezzlement, and criminal misappropriation.  All such policies of insurance
shall be in such amounts and with such insurance companies as are reasonably
satisfactory to Lender.  Borrowers shall deliver copies of all such policies to
Lender with a satisfactory lender's loss payable endorsement (other than in
respect of workers' compensation insurance) naming Lender as loss payee (as its
interests appear) or additional insured, as appropriate.  Each policy of
insurance or endorsement shall contain a clause requiring the insurer to give
not less than 30 days prior written notice to Lender in the event of
cancellation of the policy for any reason whatsoever.

(b)        Administrative Borrower shall give
Lender prompt notice of any loss covered by such insurance.  Lender shall have
the exclusive right to adjust any losses claimed under any such insurance
policies in excess of $1,000,000 (or in any amount after the occurrence and
during the continuation of an Event of Default), without any liability to
Borrowers whatsoever in respect of such adjustments absent gross negligence or
willful misconduct by Lender.  Any monies received as payment for any loss
under any insurance policy mentioned above (other than liability insurance
policies) or as payment of any award or compensation for condemnation or taking
by eminent domain, shall be paid over to Lender to be applied at the option of
Lender either to the prepayment of the Obligations; provided, that in the case
of proceeds of casualty insurance involving a casualty where the proceeds are
in an amount less than $1,000,000 and so long as no Event of Default shall then
be continuing, then such proceeds shall be disbursed to Administrative Borrower
under staged payment terms reasonably satisfactory to Lender in the exercise of
its Permitted Discretion for application to the cost of repairs, replacements,
or restorations. Any such repairs, replacements, or restorations shall be
effected with reasonable promptness and shall be of a value at least equal to
the value of the items or property destroyed prior to such damage or destruction.

(c)        Borrowers shall not, and shall not
suffer or permit their Domestic Subsidiaries to, take out separate insurance
concurrent in form or contributing in the event of loss with that required to
be maintained under this Section 6.7, unless Lender is included thereon
as named insured with the loss payable to Lender under a lender's loss payable
endorsement or its equivalent.  Administrative Borrower immediately shall
notify Lender whenever such separate insurance is taken out, specifying the insurer
thereunder and full particulars as to the policies evidencing the same, and
copies of such policies promptly shall be provided to Lender.

6.8       Location of Inventory and Equipment.  Keep Borrowers' and their Domestic Subsidiaries'
Inventory and Equipment only at the locations identified on Schedule 5.4
and their chief executive offices only at the locations identified on Schedule
5.6(b); provided, however, that Administrative Borrower may
amend Schedule 5.4 and Schedule 5.6(b) so long as such amendment
occurs by written notice to Lender not less than 30 days prior to the date on
which such Inventory or Equipment is moved to such new location or such chief
executive office is relocated, so long as such new location is within the
continental United States, and so long as, at the time of such written
notification, the applicable Borrower provides to Lender a Collateral Access
Agreement with respect thereto.

6.9       Compliance with Laws.  Comply with the requirements of all applicable
laws, rules, regulations, and orders of any Governmental Authority, including
the Fair Labor Standards Act and the Americans With Disabilities Act, other
than laws, rules, regulations, and orders the non-compliance with which,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Change.

6.10     Leases.  Pay when due all rents and other amounts payable
under any leases to that any Borrower or any Domestic Subsidiary of a Borrower
is a party or by which any Borrower's or any Domestic Subsidiary of a
Borrower's properties and assets are bound, unless such payments are the
subject of a Permitted Protest or, in the case of any leases other than the
Borrowers' lease of the premises at 10811 S. Westview Circle, Houston, Texas
(which premises are the storage site for the US Seismic Library), the loss or
forfeiture of such lease would not cause a Material Adverse Change.

6.11     Existence.  At all times preserve
and keep in full force and effect each Borrower's and each Domestic Subsidiary
of a Borrower's valid existence and good standing and any rights and franchises
material to their businesses; provided, however, that nothing
herein contained shall be deemed to prohibit or limit any Non-Material Domestic
Subsidiary from liquidating, winding up or dissolving, or merging or
consolidating with or into a Borrower or another Domestic Subsidiary.

6.12     Environmental.

(a)        Keep any property either owned or
operated by any Borrower or any Subsidiary of a Borrower free of any
Environmental Liens or post bonds or other financial assurances sufficient to
satisfy the obligations or liability evidenced by such Environmental Liens, (b)
comply, in all material respects, with Environmental Laws and provide to Lender
documentation of such compliance which Lender reasonably requests, (c) notify
Lender, promptly upon obtaining knowledge thereof, of any release of a
Hazardous Material of any reportable quantity from or onto property owned or
operated by any Borrower or any Subsidiary of a Borrower and take any Remedial
Actions required to abate said release or otherwise to come into compliance
with applicable Environmental Law, and (d) promptly, but in any event within 5
days of its receipt thereof, provide Lender with written notice of any of the
following:  (i) notice that an Environmental Lien has been filed against any of
the real or personal property of any Borrower or any Subsidiary of a Borrower,
(ii) commencement of any Environmental Action or notice that an Environmental
Action will be filed against any Borrower or any Subsidiary of a Borrower, and
(iii) notice of a violation, citation, or other administrative order which
reasonably could be expected to result in a Material Adverse Change.

6.13     Disclosure
Updates.  Promptly and in no event later than 5 Business Days
after obtaining knowledge thereof, notify Lender if any written information,
exhibit, or report furnished to Lender contained any untrue statement of a
material fact or omitted to state any material fact necessary to make the
statements contained therein not misleading in light of the circumstances in
which made.  The foregoing to the contrary notwithstanding, any notification
pursuant to the foregoing provision will not cure or remedy the effect of the
prior untrue statement of a material fact or omission of any material fact nor
shall any such notification have the affect of amending or modifying this
Agreement or any of the Schedules hereto.

6.14     Formation of Subsidiaries.  At the time that any Borrower or any Guarantor forms
any direct or indirect Domestic Subsidiary or acquires any direct or indirect
Domestic Subsidiary after the Closing Date, such Borrower or such Guarantor
shall (a) cause such new Domestic Subsidiary to provide to Lender a
joinder to this Agreement or to the Guaranty and the Guarantor Security
Agreement, together with such other security documents, as well as appropriate
UCC‐1 financing statements, all in form and substance satisfactory to
Lender in the exercise of its Permitted Discretion (including being sufficient
to grant Lender a first priority Lien (subject to Permitted Liens) in and to
the assets of such newly formed or acquired Domestic Subsidiary),
(b) provide to Lender a pledge agreement and appropriate certificates and
powers or UCC‐1 financing statements, hypothecating all of the direct or
beneficial ownership interest owned by the subject Borrower or Guarantor in
such new Domestic Subsidiary, in form and substance satisfactory to Lender in
the exercise of its Permitted Discretion, and (c) provide to Lender all
other documentation, including one or more opinions of counsel satisfactory to
Lender in the exercise of its Permitted Discretion, which in its Permitted
Discretion is appropriate with respect to the execution and delivery of the applicable
documentation referred to above.  Any document, agreement, or instrument
executed or issued pursuant to this Section 6.14 shall be a Loan
Document.

6.15     Mergers and Transfers of Assets.  In the event that any Domestic
Subsidiary merges into another Domestic Subsidiary or Borrower or sells, assigns,
or conveys assets to another Domestic Subsidiary or Borrower, Borrowers will
(i) give Lender telephonic or written notice at least one week but not more
than one month prior to any such merger, sale, assignment or conveyance, (ii)
will promptly thereafter deliver to Lender such amendments to and
reaffirmations of the Loan Documents, each in form and substance satisfactory
to Lender, that Lender may request in connection therewith, and (iii) cause to
filed, if necessary, appropriate amendments to financing statements on Form
UCC-3 in such office or offices and to take such other actions as may be
necessary or, in the Permitted Discretion of Lender, desirable to continue the
perfection the Lender's Liens in the Collateral.

7.         NEGATIVE COVENANTS.

Each Borrower covenants
and agrees that, so long as any credit hereunder shall be available and until
payment in full of the Obligations, Borrowers will not and will not permit any
of their respective Domestic Subsidiaries to do any of the following:

7.1       Indebtedness.  Create, incur, assume, suffer to exist, guarantee,
or otherwise become or remain, directly or indirectly, liable with respect to
any Indebtedness, except:

(a)        Indebtedness evidenced by this Agreement
and the other Loan Documents, together with Indebtedness owed to Underlying
Issuers with respect to Underlying Letters of Credit;

(b)        Indebtedness set forth on Schedule 5.19
and guarantees thereof;

(c)        Permitted Purchase Money Indebtedness;

(d)        refinancings,
renewals, or extensions of Indebtedness permitted under clauses (b) and (c) of
this Section 7.1 (and continuance or renewal of any Permitted Liens
associated therewith) so long as: (i) the terms and conditions of such
refinancings, renewals, or extensions do not, in Lender's Permitted Discretion,
materially impair the prospects of repayment of the Obligations by Borrowers or
materially impair Borrowers' creditworthiness, (ii) such refinancings,
renewals, or extensions do not result in an increase in the then extant
principal amount of, or interest rate with respect to, the Indebtedness so
refinanced, renewed, or extended or add one or more Borrowers as liable with
respect thereto if such additional Borrowers were not liable with respect to
the original Indebtedness, (iii) such refinancings, renewals, or extensions do
not result in a shortening of the average weighted maturity of the Indebtedness
so refinanced, renewed, or extended, nor are they on terms or conditions, that,
taken as a whole, are materially more burdensome or restrictive to the
applicable Borrower, (iv) if the Indebtedness that is refinanced, renewed, or
extended was subordinated in right of payment to the Obligations, then the
terms and conditions of the refinancing, renewal, or extension Indebtedness
must be include subordination terms and conditions that, taken as a whole, are
at least as favorable to Lender as those that were applicable to the
refinanced, renewed, or extended Indebtedness, and (v) the Indebtedness
that is refinanced, renewed, or extended is not recourse to any Person that is
liable on account of the Obligations other than those Persons which were
obligated with respect to the Indebtedness that was refinanced, renewed, or
extended;

(e)        endorsement of instruments or other
payment items for deposit; 

(f)         Indebtedness constituting Investments
permitted under Section 7.12 below; 

(g)        other unsecured Indebtedness in a principal
amount not exceeding $5,000,000 at any time outstanding, provided, however,
that no Borrower or Domestic Subsidiary may incur any such Indebtedness owing
to ValueAct Capital or Seitel Holdings, except as provided for in Sections
7.13(a) or  7.13(c) below, unless such Indebtedness is (i) incurred
pursuant to agreements and instruments in form and substance satisfactory to
Lender in its Permitted Discretion, and (ii) fully subordinate to the
Obligations on terms and conditions satisfactory to Lender in its Permitted
Discretion; and

(h)        any
Indebtedness owing from a Borrower to another Borrower or from a Domestic
Subsidiary to another Domestic Subsidiary or a Borrower, in each case
subordinated to the Obligations on terms and conditions satisfactory to Lender.

7.2       Liens.  Create, incur, assume, or suffer to exist,
directly or indirectly, any Lien on or with respect to any of its assets, of
any kind, whether now owned or hereafter acquired, or any income or profits
therefrom, except for Permitted Liens (including Liens that are replacements of
Permitted Liens to the extent that the original Indebtedness is refinanced,
renewed, or extended under Section 7.1(d) and so long as the replacement
Liens only encumber those assets that secured the refinanced, renewed, or
extended Indebtedness).

7.3       Restrictions on
Fundamental Changes

(a)        Except for the Acquisition and, subject to the conditions set forth in Section 6.15 above,
the merger, consolidation, amalgamation or other combination of a Domestic
Subsidiary of Parent with or into another Domestic Subsidiary of Parent or a
Borrower (so long as the Borrower is the surviving entity in any merger of a
Domestic Subsidiary into a Borrower), enter into any merger, consolidation,
reorganization, or recapitalization, or reclassify its Stock.

(b)        Liquidate, wind up, or dissolve itself
(or suffer any liquidation or dissolution); provided, however,
that nothing herein contained shall be deemed to prohibit or limit any
Non-Material Domestic Subsidiary from liquidating, winding up or dissolving, or
any Domestic Subsidiary from merging or consolidating with or into a Borrower
or another Domestic Subsidiary in accordance with Section 7.3(a) above.

(c)        Other than Permitted Dispositions and
transactions in the ordinary course of business consistent with past practices
and the licensing of the US Seismic Library in the ordinary course of business,
convey, sell, lease, license, assign, transfer, or otherwise dispose of, in one
transaction or a series of transactions, all or any substantial part of its
assets; provided, however, that nothing herein contained shall be
deemed to prohibit or limit any Non-Material Domestic Subsidiary from
liquidating, winding up or dissolving, or any Domestic Subsidiary from merging
or consolidating with or into a Borrower or another Domestic Subsidiary in
accordance with Section 7.3(a) or (b) above.

7.4       Disposal of Assets.  Convey, sell, lease,
license, assign, transfer, or otherwise dispose of all or any substantial
portion of the assets of any Borrower or any Domestic Subsidiary of a Borrower, other than the following: 

(a)        Permitted Dispositions, 

(b)        transactions in the ordinary course
of business consistent with past practices, 

(c)        the licensing of the US Seismic
Library in the ordinary course of business, 

(d)        transactions
by Non-Material Domestic Subsidiaries permitted pursuant to Section 7.3,
and

(e)        subject
to the conditions set forth in Section 6.15 above, the sale, assignment, or conveyance of assets, including
Stock, from a Domestic Subsidiary to another Domestic Subsidiary or to a
Borrower.

Unless expressly permitted pursuant to the terms of this Agreement, the
use and transfer of money, Cash Equivalents, or any other asset or property by
or from any of the Loan Parties to any Domestic Subsidiary or Affiliate of a
Loan Party that is not organized under the laws of a jurisdiction located in the
continental United States of America expressly is prohibited by the terms of
this Agreement.

7.5       Change Name.  Change any Borrower's
or any Domestic Subsidiary of a Borrower's name, FEIN, organizational
identification number, state of organization, or organizational identity; provided,
however, that a Borrower or a Domestic Subsidiary of a Borrower may
change its name upon at least 30 days prior written notice by Administrative
Borrower to Lender of such change and so long as, at the time of such written
notification, such Borrower or such Domestic Subsidiary provides any financing
statements or amendments necessary to perfect and continue perfected Lender's
Liens.

7.6       Nature of Business.  Make any change in the principal nature of their
business.

7.7       Prepayments and
Amendments.  Except in connection with a refinancing
permitted by Section 7.1(d),

(a)        prepay, redeem, defease, purchase, or
otherwise acquire any Indebtedness of any Borrower or any Domestic Subsidiary
of a Borrower, other than (i) to the extent no Default or Event of Default
shall then be continuing or shall result from such redemption, the redemption
of up to 35% of the outstanding principal of the Senior Notes in accordance
with the terms of the Senior Notes and the Senior Indenture, as each is in
effect on the date hereof, solely out of the proceeds of the issuance of common
stock of Parent, (ii) to the extent no Default or Event of Default shall then
be continuing or shall result from such repayment or redemption, the repayment
or redemption of Existing Notes, and (iii) the Obligations in accordance with
this Agreement, or

(b)        directly or
indirectly, amend, modify, alter, increase, or change any of the terms or
conditions of any agreement, instrument, document, indenture, or other writing
evidencing or concerning Indebtedness permitted under Section 7.1(b).

7.8       Change of Control.  Cause, permit, or suffer, directly or indirectly,
any Change of Control.

7.9       Consignments.  Consign any of their Inventory or sell any of their
Inventory on bill and hold, sale or return, sale on approval, or other
conditional terms of sale.

7.10     Distributions.  Other than distributions or declaration and payment
of dividends by a Domestic Subsidiary or a Borrower to a Domestic Subsidiary or
a Borrower (including, without limitation, liquidating distributions by
Non-Material Domestic Subsidiaries) in the ordinary course of business, or such
distributions or declaration and payment of dividends not in the ordinary
course of business that are deposited into a Cash Management Account, make any
distribution or declare or pay any distributions or dividends (in cash or other
property) on any of its shares of Stock of any class, whether now or hereafter
outstanding, or other ownership interests, or purchase, redeem, cancel, acquire
or retire any of its Stock or other ownership interests or Stock or other
ownership interests of any of their Subsidiaries or any option, warrant, or
other right to acquire such Stock or other ownership interests, or apply or set
apart any of their assets therefor, or make any distribution (by reduction of
capital or otherwise) in respect of any such shares of Stock or other ownership
interests or any such option, warrant or other right; provided,
however, that Parent may make distributions to Seitel Holdings: (i)
so long as Parent is the sole direct Subsidiary of Seitel Holdings and has no
other assets or operations, in an aggregate amount equal to the lesser of
(1) so long as no Default or Event of Default exists and is continuing, the
amount that would be due with respect to a consolidated, combined or similar
federal, state or local tax return that included Seitel Holdings and its
Subsidiaries for which Seitel Holdings would be the corporate parent plus the
net amount of the applicable tax that Seitel Holdings actually owes to the
relevant taxing authority as a result of its ownership of Parent, and
(2) the actual amount of such franchise or similar taxes and fees of
Seitel Holdings required to maintain Seitel Holdings' corporate or other
existence, and (ii) at all other times, so long as no Default or Event of
Default exists and is continuing, an amount equal to the lesser of (1) the
portion of a consolidated, combined or similar federal, state or local tax
return that included Seitel Holdings and its Subsidiaries for which Seitel
Holdings would be the corporate parent equal to the amount that would be due
with respect to a consolidated, combined or similar federal, state or local tax
return that included Parent and its Subsidiaries for which Parent would be the
corporate parent and (2) the net amount of the applicable tax that Seitel
Holdings actually owes to the relevant taxing authority as a result of its
ownership of Parent, provided, however, that in each case in the
event that any such distribution exceeds the amount of the applicable taxes,
Borrowers will cause Seitel Holdings to reimburse any excess amounts to Parent
within 10 days of the payment of such taxes and if any such excess amounts are
not reimbursed with 10 days, Parent will not make any further distributions for
tax purposes until such excess amounts are reimbursed in full, provided,
further, that, to the extent deemed to be distributions, Parent may make
distributions to Seitel Holdings pursuant to and in accordance with Section 7.13(a)
and Section 7.13(c) below.

7.11     Accounting Methods.  Modify or change their fiscal year or their method
of accounting (other than as may be required to conform to GAAP) or enter into,
modify, or terminate any agreement currently existing, or at any time hereafter
entered into with any third party accounting firm or service bureau for the
preparation or storage of Borrowers' or their Domestic Subsidiaries' accounting
records without said accounting firm or service bureau agreeing to provide
Lender information regarding Borrowers' and their Domestic Subsidiaries'
financial condition.  

7.12     Investments.  Directly or indirectly, make or acquire any
Investment, or incur any liabilities (including contingent obligations) for or
in connection with any Investment, except for the following:

(a)        Permitted Investments,

(b)        existing Investments in direct and
indirect Subsidiaries of Parent, 

(c)        Investments in direct or indirect
Subsidiaries of Parent to the extent, but only to the extent, of inter-company
accounts converted to equity of a Subsidiary (in the ordinary course of
business on terms and conditions consistent with past practices of Parent and
its Subsidiaries) in order to meet equity capital requirements for such
Subsidiaries under Canadian law;

(d)        Investments made on or after the
Closing Date in Canadian Subsidiaries in an aggregate amount not to exceed at
any one time (i) $10,000,000.00 plus (ii) an amount equal to distributions
made, directly or indirectly but without duplication, by Canadian Subsidiaries to
any Borrower from and after the Closing Date less any distributions
for the payment of taxes, amounts paid for goods and services rendered by
Canadian Subsidiaries, and other accounts receivable and similar items owing to
Canadian Subsidiaries; 

(e)        investments in promissory notes
payable by Paul Frame made prior to the Closing Date; and

(f)         Investments permitted under Section
7.1(h) above;

provided, however,
that Administrative Borrower and its Domestic Subsidiaries shall not have
Permitted Investments (other than in the Cash Management Accounts) in Deposit
Accounts or Securities Accounts in an aggregate amount in excess of $50,000
outstanding at any one time unless Administrative Borrower or its Domestic
Subsidiary, as applicable, and the applicable securities intermediary or bank
have entered into Control Agreements or similar arrangements governing such
Permitted Investments in order to perfect (and further establish) the Lender's
Liens in such Permitted Investments.  Subject to the foregoing proviso,
Borrowers shall not and shall not permit their Domestic Subsidiaries to
establish or maintain any Deposit Account or Securities Account unless Lender
shall have received a Control Agreement in respect of such Deposit Account or
Securities Account.

7.13     Transactions with Affiliates.  Directly or indirectly enter into or permit to
exist any transaction with any Affiliate of any Borrower except for:

(a)        reimbursement
of or payment to ValueAct Capital or Seitel Holdings by Parent of fees, costs
and expenses incurred in connection with the Acquisition and Senior Note
Offering in an aggregate amount not to exceed $3,500,000.00, 

(b)        subject
to the conditions set forth in Section 7.1(g) above, transactions that
are in the ordinary course of Borrowers' business, upon fair and reasonable
terms, that are fully disclosed to Lender, and that are no less favorable to
Borrowers than would be obtained in an arm's length transaction with a
non-Affiliate; and

(c)        transactions
with ValueAct Capital, Seitel Holdings or their respective Affiliates so long
as:

(i)         no
Default or Event of Default exists and is continuing when such transaction is entered
into and no payments may be made while a Default or Event of Default exists and
is continuing or would result from such payment,

(ii)        the
aggregate amount of payments made to ValueAct Capital, Seitel Holdings and
their respective Affiliates pursuant to such transactions does not exceed $2,500,000.00
in any calendar year,

(iii)       immediately
after giving effect to each payment in connection with such transactions and
all other payments to be made by Borrowers and their Subsidiaries on such day,
Borrowers' will have Availability equal to or greater than $5,000,000.00, and

(iv)       all
such transactions are pursuant to that certain Advisory Agreement, dated
January 30, 2007 (the ("Advisory Agreement"), among Seitel Holdings, Parent
(as successor in interest to Seitel Acquisition Corp.), and ValueAct Capital
Management, L.P., as in effect on the Closing Date or the Advisory Agreement as
amended from time to time pursuant to amendments approved in writing by Lender
in its Permitted Discretion or such other written agreement as may be approved (including
any amendments thereto) in writing by Lender in its Permitted Discretion; and

(d)        subject
to the conditions set forth in Section 6.15 above, (i) the Acquisition,
(ii) the merger, consolidation, amalgamation or other combination of a Domestic
Subsidiary of Parent with or into another Domestic Subsidiary of Parent or a
Borrower (so long as the Borrower is the surviving entity in any merger of a
Domestic Subsidiary into a Borrower), or (iii) the
sale, assignment, or conveyance of assets, including Stock, from a Domestic
Subsidiary to another Domestic Subsidiary or to a Borrower;

provided, however, that, transactions in the
ordinary course of Borrowers' business include but are not limited to the
following types of recurring inter-company transactions, entered in the
ordinary course of business on terms and conditions consistent with past
practices of Parent and its Subsidiaries, all of which are inter-company
transactions among only Parent or a Subsidiary of Parent, which transactions
are eliminated from the consolidated accounts of Parent and its Subsidiaries in
accordance with GAAP: 

            (1)        royalty fees assessed on a quarterly
basis,

            (2)        interest charged on inter-company
balances,

            (3)        capitalization of certain
inter-company loans as described in Section 7.12, 

            (4)        commission expenses and revenue net
of brokers' fees from certain data sales, and

            (5)        Investments permitted by Section
7.12(d) above.

7.14     Suspension.  Suspend or go out of a
substantial portion of their business, unless such suspension or going out of a
substantial portion of their business would not result in a Material Adverse
Change.

7.15     Use of Proceeds.  Use the proceeds of the Advances for any purpose other than (i) on
the Closing Date to pay fees, costs and expenses associated with the
consummation of the Acquisition and the transactions contemplated by this
Agreement and (ii) thereafter to (1) fund Borrowers' working capital needs and
other general corporate and partnership purposes (including reimbursement of
Seitel Holdings by Parent permitted by Section 7.13(a) above of fees, costs
and expenses incurred in connection with the Acquisition and Senior Note
Offering in an amount not to exceed $3,500,00.00), all in the ordinary course
of business and (2) for the redemption or repayment of Existing Notes in an
amount not to exceed $2,500,000.00 in the aggregate, in each case consistent
with the terms and conditions hereof, and for its lawful and permitted
purposes. In no event will proceeds of the Revolving Credit Facility be used
for the repurchase or redemption of the Senior Notes,
in whole or in part, without the prior written consent of Lender.

7.16     Inventory
and Equipment with Bailees.  Store the US Seismic Library at any time now or
hereafter with a bailee, warehouseman, or similar party without Lender's prior
written consent, or store any material amount of the Inventory or Equipment of
Borrowers or their Domestic Subsidiaries (other than the US Seismic Library) at
any time now or hereafter with a bailee, warehouseman, or similar party,
without providing to Lender a Collateral Access Agreement from such bailee,
warehouseman, or similar party.

7.17     Financial
Covenants.

(a)        Minimum
Cash Margin.  Fail to maintain or achieve a Cash Margin measured on a
calendar quarter-end basis, of at least the amount set forth in the table attached
hereto as Schedule 7.17(a) for the trailing twelve-month period ending
on the applicable quarter-end date set forth in the table attached hereto as Schedule
7.17(a):

(b)       Maximum Net Cash Capital
Expenditures.  Make Net Cash Capital Expenditures in any fiscal year in
excess of the amount set forth in the table attached
hereto as Schedule 7.17(b) for the applicable fiscal year.

8.         EVENTS OF DEFAULT.  Any one or more of the following events shall constitute
an event of default (each, an "Event of Default") under this Agreement:

8.1       If Borrowers fail to pay when due and
payable, or when declared due and payable, (a) all or any portion of the
Obligations consisting of interest, fees, or charges due the Lender,
reimbursement of Lender Expenses, or other amounts (other than any portion
thereof constituting principal) constituting Obligations (including any portion
thereof that accrues after the commencement of an Insolvency Proceeding,
regardless of whether allowed or allowable in whole or in part as a claim in
any such Insolvency Proceeding), and such failure continues for a period of 3
Business Days, or (b) all or any portion of the principal of the Obligations;

8.2       If any
Borrower

(a)        fails to perform, keep, or observe any
term, provision, covenant, or agreement contained in Sections 2.7, 4.2,
4.4, 4.6, 6.7, 6.11, 6.12, 6.14, and 7.1
through 7.17 (inclusive) of this Agreement;

(b)        fails or neglects to perform, keep, or
observe any term, provision, covenant, or agreement contained in Sections
4.5, 6.2, 6.3, 6.4, and 6.13 of this Agreement
and such failure continues for a period of five (5) Business Days; or

(c)        fails or neglects to perform, keep, or
observe any other term, provision, covenant, or agreement contained in this
Agreement, or in any of the other Loan Documents (giving effect to any grace
periods, cure periods, or required notices, if any, expressly provided for in
such Loan Documents); in each case, other than any such term, provision,
covenant, or agreement that is the subject of another provision of this Section
8 (in which event such other provision of this Section 8 shall
govern), and such failure continues for a period of 10 Business Days; 

provided that, during any period of time
that any such failure or neglect referred to in this paragraph exists, even if
such failure or neglect is not yet an Event of Default, Lender shall be
relieved of its obligation to extend credit hereunder;

8.3       If (a) any material portion of any
Borrower's or any Material Domestic Subsidiary's assets, or (b) an amount
(measured on the basis of either book value or fair market value, whichever is
greater, on an aggregate, cumulative basis for all Non‐Material Domestic
Subsidiaries, from the Closing Date through any date of measurement) in excess
of $250,000.00 (exclusive of intercompany balances) of one or more Non-Material
Domestic Subsidiaries' assets is attached, seized, subjected to a writ or
distress warrant, levied upon, or comes into the possession of any third Person,
and the same is not discharged before the earlier of 30 days after the date it
first arises or 5 days prior to the date on which such property or asset is
subject to forfeiture by such Borrower, Material Domestic Subsidiary, or
Non-Material Domestic Subsidiaries;

8.4       If
an Insolvency Proceeding is commenced by any Borrower, any Material Domestic
Subsidiary, or one or more Non-Material Domestic Subsidiaries that owns assets
(exclusive of intercompany balances on the financial statements of any such Non‐Material
Domestic Subsidiary) in excess of $250,000.00 (measured on the basis of book
value or fair market value, whichever is greater, on an aggregate, cumulative
basis for all such Non‐Material Domestic Subsidiaries, from the Closing
Date through any date of measurement);

8.5       If an Insolvency Proceeding is commenced
against any Borrower, any Material Domestic Subsidiary, or one or more
Non-Material Domestic Subsidiaries that owns assets (exclusive of intercompany
balances on the financial statements of any such Non‐Material Domestic
Subsidiary) in excess of $250,000.00 (measured on the basis of book value or
fair market value, whichever is greater, on an aggregate, cumulative basis for
all such Non‐Material Domestic Subsidiaries, from the Closing Date through
any date of measurement), and any of the following events occur:  (a) the
applicable Borrower, Material Domestic Subsidiary, or Non‐Material
Domestic Subsidiary consents to the institution of the Insolvency Proceeding
against it, (b) the petition commencing the Insolvency Proceeding is not
timely controverted; provided, however, that, during the pendency
of such period, Lender shall be relieved of its obligations to extend credit
hereunder, (c) the petition commencing the Insolvency Proceeding is not dismissed
within 45 calendar days of the date of the filing thereof; provided, however,
that, during the pendency of such period, Lender
shall be relieved of its obligation to extend credit hereunder, (d) an
interim trustee is appointed to take possession of all or any substantial
portion of the properties or assets of, or to operate all or any substantial
portion of the business of, any Borrower, any Material Domestic Subsidiary, or
one or more Non-Material Domestic Subsidiaries that owns assets (exclusive of
intercompany balances on the financial statements of any such Non‐Material
Domestic Subsidiary) in excess of $250,000.00 (measured on the basis of book
value or fair market value, whichever is greater, on an aggregate, cumulative
basis for all such Non‐Material Domestic Subsidiaries, from the Closing
Date through any date of measurement), or (e) an order for relief shall
have been entered therein;

8.6       If any Borrower, any Domestic
Subsidiary, or one or more Non-Material Domestic Subsidiaries that owns assets
(exclusive of intercompany balances on the financial statements of any such Non‐Material
Domestic Subsidiary) in excess of $250,000.00 (measured on the basis of book
value or fair market value, whichever is greater, on an aggregate, cumulative
basis for all such Non‐Material Domestic Subsidiaries, from the Closing
Date through any date of measurement) is enjoined, restrained, or in any way
prevented by court order from continuing to conduct all or any material part of
its business affairs;

8.7       (a)        If a notice of Lien is filed
of record either (i) with respect to any Borrower's or any Material
Domestic Subsidiary's assets, or (ii) with respect to the assets of any
one or more Non‐Material Domestic Subsidiaries that owns assets
(exclusive of intercompany balances) in excess of $250,000.00 (measured on the
basis of book value or fair market value, whichever is greater, on an
aggregate, cumulative basis for all such Non‐Material Domestic
Subsidiaries, from the Closing Date through any date of measurement), by the
United States or any department, agency, or instrumentality thereof (a "Federal
Lien"), or by any state, county, municipal, or governmental agency and such
state, county, municipal, or governmental agency Lien has priority over the
Liens of Lender in and to the Collateral or any portion thereof (a "Non-Federal
Priority Lien"); or

(b)        If a notice of Lien is filed of record
either (i) with respect to any Borrower's or any Material Domestic
Subsidiary's assets, or (ii) with respect to the assets of any one or more
Non‐Material Domestic Subsidiaries that owns assets (exclusive of
intercompany balances) in excess of $250,000.00 (measured on the basis of book
value or fair market value, whichever is greater, on an aggregate, cumulative
basis for all such Non‐Material Domestic Subsidiaries, from the Closing
Date through any date of measurement), by any state, county, municipal, or
governmental agency that is not a Non-Federal Priority Lien (a "Non-Federal
Non-Priority Lien"); provided, however, that, if the aggregate
amount claimed with respect to any such Non-Federal Non-Priority Liens, or
combination thereof, is less than $500,000, an Event of Default shall not occur
under this subsection if the claims that are the subject of such Liens are the
subject of Permitted Protests and if the Liens are released, discharged, or
bonded against within 30 days of each such Lien first being filed of record or,
if earlier, at least 5 days prior to the date on which assets that are subject
to such Liens are subject to being sold or forfeited and, in any such case,
Lender shall have the absolute right to establish and maintain a reserve
against the Borrowing Base and the Maximum Revolver Amount in an amount equal
to the aggregate amount of the underlying claims (determined by Lender, in its
Permitted Discretion, and irrespective of any Permitted Protests with respect
thereto and including any penalties or interest that are estimated by Lender,
in its Permitted Discretion, to arise in connection therewith);

8.8       If one or more judgments or other claims
involving an aggregate amount of $250,000 or more, in excess of the amount
covered by insurance, becomes a Lien or encumbrance upon any material portion
of the assets of any Borrower, any Material Domestic Subsidiary, or any Non-Material
Domestic Subsidiary with intercompany receivables in excess of $250,000, and
the same is not released, discharged, bonded against, or stayed pending appeal
before the earlier of 30 days after the date it first arises or 5 days prior to
the date on which such asset is subject to being forfeited by such Borrower,
Material Domestic Subsidiary, or Non-Material Domestic Subsidiary;

8.9       (a) If there
is a default in one or more agreements to which Borrower is a party with one or
more third Persons relative to Borrower's Indebtedness involving an aggregate
amount of $250,000, or more, and such default (i) occurs at the final
maturity of obligations thereunder, or (ii) results in a right by such
third Person(s), irrespective of whether exercised, to accelerate the maturity
of Borrower's obligations thereunder, or (b) if there is a default in any other
material agreement to which Borrower is a party with one or more third Persons
and such default results in a right by such third Person(s), irrespective of
whether exercised, to terminate such agreement;

8.10     If any Borrower, any Material Domestic
Subsidiary, or one or more Non-Material Domestic Subsidiaries that owns assets
(exclusive of intercompany balances) in excess of $250,000.00 (measured on the
basis of book value or fair market value, whichever is greater, on an
aggregate, cumulative basis for all such Non‐Material Domestic
Subsidiaries, from the Closing Date through any date of measurement) makes any
payment on account of Indebtedness that has been contractually subordinated in
right of payment to the payment of the Obligations, except to the extent such
payment is permitted by the terms of the subordination provisions applicable to
such Indebtedness;

8.11     If any material misstatement or
misrepresentation exists now or hereafter in any warranty, representation,
statement, or Record made to Lender by any Borrower, any Subsidiary of a
Borrower, or any officer, employee, agent, or director of any Borrower or any
Subsidiary of a Borrower; 

8.12     If the obligation of any Guarantor under the Guaranty
is limited or terminated by operation of law or by such Guarantor thereunder,
other than as expressly permitted pursuant to Section 7.3 above;

8.13     If this Agreement or any other
Loan Document that purports to create a Lien, shall, for any reason (other than
Lender's acts or omissions), fail or cease to create a valid and perfected and,
except to the extent permitted by the terms hereof or thereof, first priority
Lien on or security interest in the Collateral covered hereby or thereby;

8.14     Any provision of any Loan
Document shall at any time for any reason be declared to be null and void by a
court of competent jurisdiction, or the validity or enforceability thereof
shall be contested by any Borrower or any Domestic Subsidiary of a Borrower, or
a proceeding shall be commenced by any Borrower or any Domestic Subsidiary of a
Borrower, or by any Governmental Authority having jurisdiction over any
Borrower or any Domestic Subsidiary of a Borrower, seeking to establish the invalidity
or unenforceability thereof, or any Borrower or any Domestic Subsidiary of a
Borrower shall deny that it has any liability or obligation purported to be
created under any Loan Document;

8.15     If any Guarantor fails to
perform, keep, or observe any term, provision, condition, covenant, or
agreement contained in this Agreement or in any of the other Loan Documents,
subject to any applicable cure periods (including cure periods provided in this
Section 8); or

8.16     If there shall occur any
default under the Outstanding Notes, any indenture governing the Existing
Notes, or the Senior Indenture that continues beyond any applicable grace
period and cure period.

9.         THE LENDER'S RIGHTS AND REMEDIES.

9.1       Rights and Remedies.  Upon the occurrence, and during the continuation, of an Event of
Default, Lender (at its election but without notice of its election and without
demand) may do any one or more of the following, all of which are authorized by
Borrowers:

(a)        Declare all Obligations, whether
evidenced by this Agreement, by any of the other Loan Documents, or otherwise,
immediately due and payable;

(b)        Cease advancing money or extending
credit to or for the benefit of Borrowers under this Agreement, under any of
the Loan Documents, or under any other agreement between Borrowers and Lender;

(c)        Terminate this Agreement and any of the
other Loan Documents as to any future liability or obligation of Lender, but
without affecting any of the Lender's Liens in the Collateral and without
affecting the Obligations;

(d)        Settle or adjust disputes and claims
directly with Borrowers' Account Debtors for amounts and upon terms which
Lender considers advisable in the exercise of its Permitted Discretion, and in
such cases, Lender will credit the Loan Account with only the net amounts
received by Lender in payment of such disputed Accounts after deducting all
Lender Expenses incurred or expended in connection therewith;

(e)        Cause Borrowers to hold all of their
returned Inventory in trust for Lender, and segregate all such Inventory from
all other assets of Borrowers or in Borrowers' possession;

(f)         Without notice to or demand upon any
Borrower, make such payments and do such acts as Lender considers necessary or
reasonable in its Permitted Discretion to protect its security interests in the
Collateral.  Each Borrower agrees to assemble the Collateral if Lender so
requires, and to make the Collateral available to Lender at a place that Lender
may designate which is reasonably convenient to both parties.  Each Borrower
authorizes Lender to enter the premises where the Collateral is located, to
take and maintain possession of the Collateral, or any part of it, and to pay,
purchase, contest, or compromise any Lien that in Lender's Permitted Discretion
appears to conflict with the Lender's Liens in and to the Collateral and to pay
all reasonable expenses incurred in connection therewith and to charge
Borrowers' Loan Account therefor.  With respect to any of Borrowers' owned or
leased premises, each Borrower hereby grants Lender a license to enter into
possession of such premises and to occupy the same, without charge, in order to
exercise any of Lender's rights or remedies provided herein, at law, in equity,
or otherwise;

(g)        Without notice to any Borrower (such
notice being expressly waived), and without constituting an acceptance of any
collateral in full or partial satisfaction of an obligation (within the meaning
of the Code), set off and apply to the Obligations any and all (i) balances and
deposits of any Borrower held by Lender (including any amounts received in the
Cash Management Accounts), or (ii) Indebtedness at any time owing to or for the
credit or the account of any Borrower held by Lender;

(h)        Hold, as cash collateral, any and all
balances and deposits of any Borrower held by Lender, and any amounts received
in the Cash Management Accounts, to secure the full and final repayment of all
of the Obligations;

(i)         Ship, reclaim, recover, store, finish,
maintain, repair, prepare for sale, advertise for sale, and sell (in the manner
provided for herein) the Borrower Collateral.  Each Borrower hereby grants to
Lender a license or other right to use, without charge, such Borrower's labels,
patents, copyrights, trade secrets, trade names, trademarks, service marks, and
advertising matter, or any property of a similar nature, as it pertains to the Borrower
Collateral, in completing production of, advertising for sale, and selling any Borrower
Collateral and such Borrower's rights under all licenses and all franchise
agreements shall inure to Lender's benefit;

(j)         Sell the Borrower Collateral at either
a public or private sale, or both, by way of one or more contracts or
transactions, for cash or on terms, in such manner and at such places
(including Borrowers' premises) as Lender, in the exercise of its Permitted
Discretion, determines is commercially reasonable.  It is not necessary that
the Borrower Collateral be present at any such sale;

(k)        Lender shall give notice of the
disposition of the Borrower Collateral as follows:

(i)         Lender shall give Administrative
Borrower (for the benefit of the applicable Borrower) a notice in writing of
the time and place of public sale, or, if the sale is a private sale or if some
other disposition other than a public sale is to be made of the Borrower Collateral,
the time on or after which the private sale or other disposition is to be made;
and

(ii)        The notice shall be personally
delivered or mailed, postage prepaid, to Administrative Borrower as provided in
Section 12, at least 10 days before the earliest time of disposition set
forth in the notice; no notice needs to be given prior to the disposition of
any portion of the Borrower Collateral that is perishable or threatens to
decline speedily in value or that is of a type customarily sold on a recognized
market;

(l)         Lender may credit bid and purchase at
any public sale; 

(m)       Lender may seek the appointment of a
receiver or keeper to take possession of all or any portion of the Borrower Collateral
or to operate same and, to the maximum extent permitted by law, may seek the
appointment of such a receiver without the requirement of prior notice or a
hearing; and

(n)        Lender shall have all other rights and
remedies available to it at law or in equity pursuant to any other Loan Documents.

9.2       Remedies Cumulative.  The rights and remedies of Lender under this
Agreement, the other Loan Documents, and all other agreements shall be
cumulative.  Lender shall have all other rights and remedies not inconsistent
herewith as provided under the Code, by law, or in equity.  No exercise by
Lender of one right or remedy shall be deemed an election, and no waiver by
Lender of any Event of Default shall be deemed a continuing waiver.  No delay
by Lender shall constitute a waiver, election, or acquiescence by it.

10.       TAXES AND EXPENSES.

If any Borrower fails to pay any monies
(whether taxes, assessments, insurance premiums, or, in the case of leased
properties or assets, rents or other amounts payable under such leases) due to
third Persons, or fails to make any deposits or furnish any required proof of
payment or deposit, all if, as, and to the extent required under the terms of
this Agreement, then, Lender, in its sole discretion and without prior notice
to any Borrower, may do any or all of the following:  (a) make payment of the
same or any part thereof, (b) set up such reserves in Borrowers' Loan Account
as Lender deems necessary to protect Lender from the exposure created by such
failure, or (c) in the case of the failure to comply with Section 6.7
hereof, obtain and maintain insurance policies of the type described in Section
6.7 and take any action with respect to such policies as Lender deems
prudent in the exercise of its Permitted Discretion.  Any such amounts paid by
Lender shall constitute Lender Expenses and any such payments shall not
constitute an agreement by Lender to make similar payments in the future or a
waiver by Lender of any Event of Default under this Agreement.  Lender need not
inquire as to, or contest the validity of, any such expense, tax, or Lien and
the receipt of the usual official notice for the payment thereof shall be conclusive
evidence that the same was validly due and owing.

11.       WAIVERS; INDEMNIFICATION.

11.1     Demand; Protest.  Each Borrower waives demand, protest, notice of
protest, notice of default or dishonor, notice of payment and nonpayment,
nonpayment at maturity, release, compromise, settlement, extension, or renewal
of documents, instruments, chattel paper, and guarantees at any time held by
Lender on which any such Borrower may in any way be liable.

11.2     Lender's Liability for Collateral.  Each Borrower hereby agrees that:  (a) so long as
Lender complies with its obligations, if any, under the Code, Lender shall not
in any way or manner be liable or responsible for:  (i) the safekeeping of the Borrower
Collateral, (ii) any loss or damage thereto occurring or arising in any manner
or fashion from any cause, (iii) any diminution in the value thereof, or (iv)
any act or default of any carrier, warehouseman, bailee, forwarding agency, or
other Person (provided that, if such Person has been chosen by Lender, such
choice was made in Lender's Permitted Discretion), and (b) all risk of loss,
damage, or destruction of the Borrower Collateral shall be borne by Borrowers.

11.3     Indemnification.  Each Borrower shall indemnify, defend, and hold
the Lender-Related Persons and each Participant (each, an "Indemnified
Person") harmless (to the fullest extent permitted by law) from and against
any and all claims, demands, suits, actions, investigations, proceedings, and
damages, and all reasonable attorneys fees and disbursements and other costs
and expenses actually incurred in connection therewith (as and when they are
incurred and irrespective of whether suit is brought), at any time asserted
against, imposed upon, or incurred by any of them (a) in connection with or as
a result of or related to the execution, delivery, enforcement, performance, or
administration (including any restructuring or workout with respect hereto) of
this Agreement, any of the other Loan Documents, or the transactions
contemplated hereby or thereby or the monitoring of Borrowers' and their
Domestic Subsidiaries' compliance with the terms of the Loan Documents, and (b)
with respect to any investigation, litigation, or proceeding related to this
Agreement, any other Loan Document, or the use of the proceeds of the credit
provided hereunder (irrespective of whether any Indemnified Person is a party
thereto), or any act, omission, event, or circumstance in any manner related
thereto (all the foregoing, collectively, the "Indemnified Liabilities").
 The foregoing to the contrary notwithstanding, Borrowers shall have no
obligation to any Indemnified Person under this Section 11.3 with
respect to any Indemnified Liability that a court of competent jurisdiction
finally determines to have resulted from the gross negligence or willful
misconduct of such Indemnified Person or that is based
on any theory of liability for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages).  This provision shall
survive the termination of this Agreement and the repayment of the
Obligations.  If any Indemnified Person makes any payment to any other
Indemnified Person with respect to an Indemnified Liability as to which
Borrowers were required to indemnify the Indemnified Person receiving such
payment, the Indemnified Person making such payment is entitled to be indemnified
and reimbursed by Borrowers with respect thereto.  WITHOUT LIMITATION, THE
FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO
INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF
ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER
PERSON.

12.       NOTICES.  Unless otherwise provided in this Agreement, all
notices or demands by Borrowers or Lender to the other relating to this
Agreement or any other Loan Document shall be in writing and (except for
financial statements and other informational documents which may be sent by
first-class mail, postage prepaid) shall be personally delivered or sent by
registered or certified mail (postage prepaid, return receipt requested),
overnight courier, electronic mail (at such email addresses as Administrative
Borrower or Lender, as applicable, may designate to each other in accordance
herewith), or telefacsimile to Borrowers in care of Administrative Borrower or
to Lender, as the case may be, at its address set forth below:

		 	If to Administrative
			Borrower:   	

 SEITEL,
INC.

10811
S. Westview Circle

Building
C, Suite 100

Houston,
Texas  77043

Attn: 
Marcia Kendrick, 

     Chief Accounting Officer

Fax
No. (713) 881-8901

			 

			
	 	with copies to:  
				

Porter & Hedges LLP

			
			1000 Main Street, 36th Floor

Houston, Texas  77002

Attn:
Joyce Kao Soliman,

     Senior Associate

			Fax No. (713) 226-6285

			 

	 	If to Lender:    
				

WELLS FARGO FOOTHILL,
INC.

1100
Abernathy Road, Suite 1600

Atlanta,
Georgia    30328

Attn:
Business Finance Manager

Fax No. (770) 804-0785

			 

			
	 	with copies to:	

HUGHES & LUCE, LLP

1717
Main Street, Suite 2800

Dallas,
Texas  75201

Attn: 
John O. Sutton, Jr.

Fax
No.  (214) 939-5849

  

Lender and Borrowers may change the address at
which they are to receive notices hereunder, by notice in writing in the
foregoing manner given to the other party.  All notices or demands sent in
accordance with this Section 12, other than notices by Lender in
connection with enforcement rights against the Borrower Collateral under the
provisions of the Code, shall be deemed received on the earlier of the date of
actual receipt or 3 Business Days after the deposit thereof in the mail.  Each
Borrower acknowledges and agrees that notices sent by Lender in connection with
the exercise of enforcement rights against Borrower Collateral under the
provisions of the Code shall be deemed sent when deposited in the mail or
personally delivered, or, where permitted by law, transmitted by telefacsimile
or any other method set forth above.

13.       CHOICE OF LAW; JURY TRIAL WAIVER.

13.1    Choice of Law.  THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS
EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH
OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF
AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO
ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL
BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK.

13.2    Choice of Venue.  THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION
WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED
ONLY IN THE STATE AND TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS
LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK;
PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT LENDER'S OPTION, IN THE COURTS
OF ANY JURISDICTION WHERE LENDER ELECTS TO BRING SUCH ACTION OR WHERE SUCH
COLLATERAL OR OTHER PROPERTY MAY BE FOUND.  BORROWERS AND LENDER WAIVE, TO THE
EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE
DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO
THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 13.2.

13.3    Waiver of Jury Trial.  BORROWERS 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 THE
LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW
OR STATUTORY CLAIMS.  BORROWERS 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 AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

14.       ASSIGNMENTS AND
PARTICIPATIONS; SUCCESSORS.

14.1     Assignments and
Participations

(a)        Lender may assign and delegate to one or
more assignees (each an "Assignee") that are Eligible Transferees all,
or any ratable part of all, of the Obligations and the other rights and
obligations of Lender hereunder and under the other Loan Documents; provided,
however, that Borrowers may continue to deal solely and directly with
Lender in connection with the interest so assigned to an Assignee until (i)
written notice of such assignment, together with payment instructions,
addresses, and related information with respect to the Assignee, have been
given to Administrative Borrower by Lender and the Assignee and
(ii) Lender and its Assignee have delivered to Borrower an appropriate
assignment and acceptance agreement.  Anything contained herein to the contrary
notwithstanding, the Assignee need not be an Eligible Transferee if such
assignment is in connection with any merger, consolidation, sale, transfer, or
other disposition of all or any substantial portion of the business or loan
portfolio of Lender.

(b)        From and after the date that Lender
provides Administrative Borrower with such written notice and executed
assignment and acceptance agreement, (i) the Assignee thereunder shall be a
party hereto and, to the extent that rights and obligations hereunder have been
assigned to it pursuant to such assignment and acceptance agreement, shall have
the rights and obligations of Lender under the Loan Documents, and (ii) Lender
shall, to the extent that rights and obligations hereunder and under the other
Loan Documents have been assigned by it pursuant to such assignment and
acceptance agreement, relinquish its rights (except with respect to Section
11.3 hereof) and be released from any future obligations under this
Agreement (and in the case of an assignment and acceptance covering all or the
remaining portion of Lender's rights and obligations under this Agreement and
the other Loan Documents, Lender shall cease to be a party hereto and thereto),
and such assignment shall effect a novation between Borrowers and the Assignee;
provided, however, that nothing contained herein shall release
Lender from obligations that survive the termination of this Agreement,
including Lender's obligations under Section 16.8 of this
Agreement.

(c)        Immediately upon Borrower's receipt of
such fully executed assignment and acceptance agreement, this Agreement shall
be deemed to be amended to the extent, but only to the extent, necessary to
reflect the addition of the Assignee and the resulting adjustment of the rights
and duties of Lender arising therefrom.

(d)        Lender may at any time sell to one or
more commercial banks, financial institutions, or other Persons not Affiliates
of Lender (a "Participant") participating interests in Obligations and
the other rights and interests of Lender hereunder and under the other Loan
Documents; provided, however, that (i) Lender shall remain
the "Lender" for all purposes of this Agreement and the other Loan Documents
and the Participant receiving the participating interest in the Obligations and
the other rights and interests of Lender hereunder shall not constitute a
"Lender" hereunder or under the other Loan Documents and Lender's obligations
under this Agreement shall remain unchanged, (ii) Lender shall remain
solely responsible for the performance of such obligations,
(iii) Borrowers and Lender shall continue to deal solely and directly with
each other in connection with Lender's rights and obligations under this
Agreement and the other Loan Documents, (iv) Lender shall not transfer or
grant any participating interest under which the Participant has the right to
approve any amendment to, or any consent or waiver with respect to, this Agreement
or any other Loan Document, except to the extent such amendment to, or consent
or waiver with respect to this Agreement or of any other Loan Document would
(A) extend the final maturity date of the Obligations hereunder in which such
Participant is participating, (B) reduce the interest rate applicable to the
Obligations hereunder in which such Participant is participating, (C) release
all or substantially all of the Collateral or guaranties (except to the extent
expressly provided herein or in any of the Loan Documents) supporting the
Obligations hereunder in which such Participant is participating, (D) postpone
the payment of, or reduce the amount of, the interest or fees payable to such
Participant through Lender, or (E) change the amount or due dates of scheduled
principal repayments or prepayments or premiums, and (v) all amounts payable by
Borrowers hereunder shall be determined as if Lender had not sold such
participation, except that, if amounts outstanding under this Agreement are due
and unpaid, or shall have been declared or shall have become due and payable
upon the occurrence of an Event of Default, each Participant shall be deemed to
have the right of set‐off in respect of its participating interest in
amounts owing under this Agreement to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this
Agreement.  The rights of any Participant shall only be derivative through
Lender and no Participant shall have any rights under this Agreement or the
other Loan Documents or any direct rights as to Borrowers or Guarantors, the
Collections of Borrowers or their Domestic Subsidiaries, the Collateral, or
otherwise in respect of the Obligations.  No Participant shall have the right
to participate directly in the making of decisions by Lender.

(e)        In connection with any such assignment
or participation or proposed assignment or participation, Lender may, subject
to the provisions of Section 16.8, disclose all documents and
information which it now or hereafter may have relating to Borrowers and their
Subsidiaries and their respective businesses.

(f)         Any other
provision in this Agreement notwithstanding, Lender may at any time create a
security interest in, or pledge, all or any portion of its rights under and
interest in this Agreement in favor of any Federal Reserve Bank in accordance
with Regulation A of the Federal Reserve Bank or U.S. Treasury Regulation 31
CFR §203.24, and such Federal Reserve Bank may enforce such pledge or security
interest in any manner permitted under applicable law.

14.2     Successors.  This Agreement shall bind and inure to the benefit
of the respective successors and Assignees of each of the parties; provided,
however, that Borrowers may not assign this Agreement or any rights or
duties hereunder without Lender's prior written consent and any prohibited
assignment shall be absolutely void ab initio.  No consent to assignment
by Lender shall release any Borrower from its Obligations.  Lender may assign
this Agreement and the other Loan Documents and its rights and duties hereunder
and thereunder pursuant to Section 14.1 hereof and, except as expressly
required pursuant to Section 14.1 hereof, no consent or approval by any
Borrower is required in connection with any such assignment.

15.       AMENDMENTS; WAIVERS.

15.1     Amendments and Waivers.  No amendment or waiver of any provision of this
Agreement 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.

15.2     No Waivers; Cumulative Remedies.  No failure by any party to exercise any right,
remedy, or option under this Agreement or any other Loan Document, 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 Agreement.  The parties' rights under this
Agreement and the other Loan Documents will be cumulative and not exclusive of
any other right or remedy that the parties may have. 

16.       GENERAL PROVISIONS.

16.1     Effectiveness.  This Agreement shall be binding and deemed
effective when executed by Borrowers and Lender.

16.2     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 Agreement.

16.3     Interpretation.  Neither this Agreement nor any uncertainty or
ambiguity herein shall be construed against Lender or Borrowers, whether under
any rule of construction or otherwise.  On the contrary, this Agreement has
been reviewed by all parties and shall be construed and interpreted according
to the ordinary meaning of the words used so as to accomplish fairly the
purposes and intentions of all parties hereto.

16.4     Severability of Provisions.  Each provision of this Agreement shall be severable
from every other provision of this Agreement for the purpose of determining the
legal enforceability of any specific provision.

16.5     Withholding
Taxes.  All payments made by Borrowers
hereunder or under any note will be made without setoff, counterclaim, or other
defense, except as required by applicable law other than for Taxes (as defined
below).  All such payments will be made free and clear of, and without
deduction or withholding for, any present or future taxes, levies, imposts,
duties, fees, assessments or other charges of whatever nature now or hereafter
imposed by any jurisdiction (other than the United States) or by any political
subdivision or taxing authority thereof or therein (other than of the United
States) with respect to such payments (but excluding, any tax imposed by any
jurisdiction or by any political subdivision or taxing authority thereof or
therein (i) measured by or based on the net income or net profits of Lender, or
(ii) to the extent that such tax results from a change in the circumstances of
Lender, including a change in the residence, place of organization, or
principal place of business of Lender, or a change in the branch or lending
office of Lender participating in the transactions set forth herein) and all
interest, penalties or similar liabilities with respect thereto (all such
non-excluded taxes, levies, imposts, duties, fees, assessments or other charges
being referred to collectively as "Taxes").  If any Taxes are so levied
or imposed, each Borrower agrees to pay the full amount of such Taxes, and such
additional amounts as may be necessary so that every payment of all amounts due
under this Agreement or under any note, including any amount paid pursuant to
this Section 16.5 after withholding or deduction for or on account
of any Taxes, will not be less than the amount provided for herein; provided,
however, that Borrowers shall not be required to increase any such
amounts payable to Lender if the increase in such amount payable results from
Lender's own willful misconduct or gross negligence.  Borrowers will furnish to
Lender as promptly as possible after the date the payment of any Taxes is due
pursuant to applicable law certified copies of tax receipts evidencing such
payment by Borrowers.

16.6     Counterparts; Telefacsimile Execution.  This Agreement 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 Agreement. 
Delivery of an executed counterpart of this Agreement by telefacsimile shall be
equally as effective as delivery of an original executed counterpart of this
Agreement.  Any party delivering an executed counterpart of this Agreement by
telefacsimile also shall deliver an original executed counterpart of this
Agreement but the failure to deliver an original executed counterpart shall not
affect the validity, enforceability, and binding effect of this Agreement.  The
foregoing shall apply to each other Loan Document mutatis mutandis.

16.7     Revival and Reinstatement of Obligations.  If the incurrence or payment of the Obligations by
any Borrower or Guarantor or the transfer to Lender of any property in respect
of the Obligations shall for any reason subsequently be declared to be void or
voidable under any state or federal law relating to creditors' rights,
including provisions of the Bankruptcy Code relating to fraudulent conveyances,
preferences, or other voidable or recoverable payments of money or transfers of
property (collectively, a "Voidable Transfer"), and if Lender is
required to repay or restore, in whole or in part, any such Voidable Transfer,
or elects to do so upon the reasonable advice of its counsel, then, as to any
such Voidable Transfer, or the amount thereof that Lender is required or elects
to repay or restore, and as to all reasonable costs, expenses, and attorneys
fees of Lender related thereto, the liability of Borrowers or Guarantor
automatically shall be revived, reinstated, and restored and shall exist as
though such Voidable Transfer had never been made.

16.8     Confidentiality.  Lender agrees that material, non-public
information regarding Borrowers and their Subsidiaries and other Affiliates,
their operations, assets, and existing and contemplated business plans shall be
treated by Lender in a confidential manner, and shall not be disclosed by
Lender to Persons who are not parties to this Agreement, except:  (a) to
attorneys for and other advisors, accountants, auditors, and consultants to
Lender, (b) to Subsidiaries and Affiliates of Lender (including the Bank
Product Providers), provided that any such Subsidiary or Affiliate shall have
agreed to receive such information hereunder subject to the terms of this Section 16.8,
(c) as may be required by statute, decision, or judicial or administrative
order, rule, or regulation, (d) as may be agreed to in advance by
Administrative Borrower or as requested or required by any Governmental
Authority pursuant to any subpoena or other legal process, (e) as to any such
information that is or becomes generally available to the public (other than as
a result of prohibited disclosure by Lender or any of its Subsidiaries or
Affiliates), (f) in connection with any assignment, prospective assignment,
sale, prospective sale, participation or prospective participations, or pledge or
prospective pledge of Lender's interest under this Agreement, provided that any
such assignee, prospective assignee, purchaser, prospective purchaser,
participant, prospective participant, pledgee, or prospective pledgee shall
have agreed in writing to receive such information hereunder subject to the
terms of this Section 16.8, and (g) in connection with any litigation or
other adversary proceeding involving parties hereto which such litigation or
adversary proceeding involves claims related to the rights or duties of such
parties under this Agreement or the other Loan Documents.  The provisions of
this Section 16.8 shall survive for 2 years after the payment in
full of the Obligations.  Anything contained herein or in any other Loan
Document to the contrary notwithstanding, the obligations of confidentiality
contained herein and therein, as they relate to the transactions contemplated
hereby, shall not apply to the federal tax structure or federal tax treatment
of such transactions, and each party hereto (and any employee, representative,
or agent of any party hereto) may disclose to any and all Persons, without
limitation of any kind, the federal tax structure and federal tax treatment of
such transactions (including all written materials related to such tax
structure and tax treatment).  The preceding sentence is intended to cause the
transactions contemplated hereby to not be treated as having been offered under
conditions of confidentiality for purposes of Section 1.6011-4(b)(3) (or any
successor provision) of the Treasury Regulations promulgated under Section 6011
of the IRC, and shall be construed in a manner consistent with such purpose. 
In addition, each party hereto acknowledges that it has no proprietary or
exclusive rights to the tax structure of the transactions contemplated hereby
or any tax matter or tax idea related thereto.

16.9     Integration.  This Agreement, together with the
other Loan Documents, reflects the entire understanding of the parties with
respect to the transactions contemplated hereby and shall not be contradicted
or qualified by any other agreement, oral or written, before the date hereof.

16.10   USA PATRIOT Act.  Agent hereby notifies Borrowers that pursuant to the
requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56, signed into
law October 26, 2001 ("Patriot Act"), it is required to obtain, verify and
record information that identifies each of the Loan Parties, which information
includes the names and addresses of Loan Parties and other information that
will allow Agent to identify the Loan Parties in accordance with the Patriot
Act.

16.11   Parent as Agent for Borrowers.  Each Borrower hereby irrevocably appoints Parent
as the borrowing agent and attorney-in-fact for all Borrowers (the "Administrative
Borrower") which appointment shall remain in full force and effect unless
and until Lender shall have received prior written notice signed by each
Borrower that such appointment has been revoked and that another Borrower has
been appointed Administrative Borrower.  Each Borrower hereby irrevocably
appoints and authorizes the Administrative Borrower (i) to provide Lender with
all notices with respect to Advances and Letters of Credit obtained for the
benefit of any Borrower and all other notices and instructions under this
Agreement and (ii) to take such action as the Administrative Borrower deems
appropriate on its behalf to obtain Advances and Letters of Credit and to
exercise such other powers as are reasonably incidental thereto to carry out
the purposes of this Agreement.  It is understood that the handling of the Loan
Account and Collateral of Borrowers in a combined fashion, as more fully set
forth herein, is done solely as an accommodation to Borrowers in order to
utilize the collective borrowing powers of Borrowers in the most efficient and
economical manner and at their request, and that Lender shall not incur
liability to any Borrower as a result hereof.  Each Borrower expects to derive
benefit, directly or indirectly, from the handling of the Loan Account and the
Collateral in a combined fashion since the successful operation of each
Borrower is dependent on the continued successful performance of the integrated
group.  To induce Lender to do so, and in consideration thereof, each Borrower
hereby jointly and severally agrees to indemnify Lender harmless against any
and all liability, expense, loss or claim of damage or injury, made against
Lender by any Borrower or by any third party whosoever, arising from or
incurred by reason of (a) the handling of the Loan Account and Collateral of
Borrowers as herein provided, (b) Lender's relying on any instructions of the
Administrative Borrower, or (c) any other action taken by Lender hereunder or
under the other Loan Documents, except that Borrowers will have no liability to
any Lender-Related Person under this Section 16.10 with respect to any
liability that has been finally determined by a court of competent jurisdiction
to have resulted from the gross negligence or willful misconduct of such
Lender-Related Person.

16.12   Amendment and Restatement.  Each Borrower
acknowledges and agrees that (a) this Agreement amends, restates and replaces,
but does not extinguish the indebtedness evidenced by, Prior Loan Agreement in
its entirety, and (b) unless otherwise amended, restated or replaced, each of
the Loan Documents executed in connection with the Prior Loan Agreement
continues in full force and effect with each reference therein to the Prior
Loan Agreement being changed to refer to this Agreement as the same may be
further amended, modified, supplemented and restated from time to time.

[Signature pages to follow.]

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

	
  SEITEL, INC.,

  a Delaware corporation

  
	By:       /s/ Kevin P.
	Callaghan                                 

              

  
	
  SEITEL DATA, LTD.,

  a Texas limited partnership

  By:       Seitel Delaware, Inc.,

              a Delaware corporation, its general partner

             
	By:       /s/ Kevin P. Callaghan        
	           

  
	
   

	
	SEITEL MANAGEMENT, INC.,

  a Delaware corporation

  
	By:       /s/ Kevin P. Callaghan               
	                 

  
	
   

	
	MATRIX GEOPHYSICAL, INC.,

  a Delaware corporation

  
	By:      /s/ Kevin P. Callaghan                  
	              

  

	
  SEITEL SOLUTIONS, LTD.,

  a Texas limited partnership

  By:       Seitel Solutions, Inc.,

              a Delaware corporation, its general partner

             
	By:       /s/ Kevin P.
	Callaghan                    

  
	
   

	
	WELLS FARGO FOOTHILL, INC.,

  a California corporation

  
	By:       /s/ Stephen P.
	Caren                                    

              Stephen P. Caren,
  Vice President

  

 

TABLE
OF CONTENTS

 

1.         DEFINITIONS AND CONSTRUCTION.................................................................................
1

1.1       Definitions.......................................................................................................................
1

1.2       Accounting Terms......................................................................................................... 23

1.3       Code............................................................................................................................ 23

1.4       Construction................................................................................................................. 23

1.5       Schedules and Exhibits.................................................................................................. 23

2.         LOAN AND TERMS OF PAYMENT..................................................................................... 23

2.1       Revolver Advances....................................................................................................... 23

2.2       Intentionally Omitted..................................................................................................... 25

2.3       Borrowing Procedures and Settlements......................................................................... 25

2.4       Payments...................................................................................................................... 25

2.5       Overadvances............................................................................................................... 27

2.6       Interest Rates and Letter of Credit Fee:  Rates,
Payments, and Calculations.................... 27

2.7       Cash Management........................................................................................................ 28

2.8       Crediting Payments....................................................................................................... 30

2.9       Designated Account...................................................................................................... 30

2.10     Maintenance of Loan Account; Statements of
Obligations.............................................. 30

2.11     Fees............................................................................................................................. 30

2.12     Letters of Credit........................................................................................................... 31

2.13     LIBOR Option............................................................................................................. 33

2.14     Capital Requirements.................................................................................................... 36

2.15     Joint and Several Liability of Borrowers........................................................................ 36

3.         CONDITIONS; TERM OF AGREEMENT............................................................................. 38

3.1       Conditions Precedent to the Effectiveness of this
Agreement.......................................... 38

3.2       Conditions Precedent to the Initial Extension of
Credit................................................... 42

3.3       Conditions Subsequent to the Initial Extension of
Credit................................................. 43

3.4       Conditions Precedent to all Extensions of Credit............................................................ 43

3.5       Term............................................................................................................................ 44

3.6       Effect of Termination..................................................................................................... 44

3.7       Early Termination by Borrowers.................................................................................... 44

4.         CREATION OF SECURITY INTEREST................................................................................ 45

4.1       Grant of Security Interest.............................................................................................. 45

4.2       Negotiable Collateral.................................................................................................... 45

4.3       Collection of Accounts, General Intangibles, and
Negotiable Collateral.......................... 45

4.4       Filing of Financing Statements; Commercial Tort
Claims; Delivery of 

            Additional Documentation Required.............................................................................. 46

4.5       Power of Attorney........................................................................................................ 46

4.6       Right to Inspect............................................................................................................. 47

4.7       Control Agreements...................................................................................................... 47

5.         REPRESENTATIONS AND
WARRANTIES......................................................................... 48

5.1       No Encumbrances........................................................................................................ 48

5.2       Eligible Accounts.......................................................................................................... 48

5.3       Equipment.................................................................................................................... 48

5.4       Location of Inventory and Equipment............................................................................ 48

5.5       Inventory Records........................................................................................................ 48

5.6       State of Incorporation; Location of Chief Executive
Office; FEIN; Organizational 

            ID Number; Commercial Tort Claims............................................................................ 48

5.7       Due Organization and Qualification; Domestic
Subsidiaries............................................ 49

5.8       Due Authorization; No Conflict..................................................................................... 49

5.9       Litigation....................................................................................................................... 51

5.10     No Material Adverse Change........................................................................................ 51

5.11     Fraudulent Transfer....................................................................................................... 51

5.12     Employee Benefits........................................................................................................ 51

5.13     Environmental Condition............................................................................................... 51

5.14     Brokerage Fees............................................................................................................ 52

5.15     Intellectual Property...................................................................................................... 52

5.16     Leases.......................................................................................................................... 52

5.17     DDAs........................................................................................................................... 52

5.18     Complete Disclosure..................................................................................................... 52

5.19     Indebtedness................................................................................................................ 52

5.20     Compliance with Laws.................................................................................................. 52

5.21     Non-Material Domestic Subsidiaries............................................................................. 53

6.         AFFIRMATIVE COVENANTS.............................................................................................. 53

6.1       Accounting System....................................................................................................... 53

6.2       Collateral Reporting...................................................................................................... 53

6.3       Financial Statements, Reports, Certificates..................................................................... 54

6.4       Guarantor Reports........................................................................................................ 57

6.5       Maintenance of Properties............................................................................................. 57

6.6       Taxes........................................................................................................................... 57

6.7       Insurance...................................................................................................................... 58

6.8       Location of Inventory and Equipment............................................................................ 59

6.9       Compliance with Laws.................................................................................................. 59

6.10     Leases.......................................................................................................................... 59

6.11     Existence...................................................................................................................... 59

6.12     Environmental............................................................................................................... 59

6.13     Disclosure Updates....................................................................................................... 60

6.14     Formation of Subsidiaries.............................................................................................. 60

6.15     Mergers and Transfers of Assets................................................................................... 60

7.         NEGATIVE COVENANTS..................................................................................................... 61

7.1       Indebtedness................................................................................................................. 61

7.2       Liens............................................................................................................................ 62

7.3       Restrictions on Fundamental Changes............................................................................ 62

7.4       Disposal of Assets........................................................................................................ 62

7.5       Change Name.............................................................................................................. 63

7.6       Nature of Business........................................................................................................ 63

7.7       Prepayments and Amendments..................................................................................... 63

7.8       Change of Control........................................................................................................ 63

7.9       Consignments............................................................................................................... 63

7.10     Distributions................................................................................................................. 63

7.11     Accounting Methods.................................................................................................... 64

7.12     Investments.................................................................................................................. 64

7.13     Transactions with Affiliates............................................................................................ 65

7.14     Suspension................................................................................................................... 67

7.15     Use of Proceeds........................................................................................................... 67

7.16     Inventory and Equipment with Bailees........................................................................... 67

7.17     Financial Covenants...................................................................................................... 67

8.         EVENTS OF DEFAULT......................................................................................................... 67

9.         THE LENDER'S RIGHTS AND REMEDIES.......................................................................... 71

9.1       Rights and Remedies..................................................................................................... 71

9.2       Remedies Cumulative.................................................................................................... 73

10.       TAXES AND EXPENSES....................................................................................................... 73

11.       WAIVERS; INDEMNIFICATION.......................................................................................... 73

11.1     Demand; Protest........................................................................................................... 73

11.2     Lender's Liability for Collateral...................................................................................... 73

11.3     Indemnification.............................................................................................................. 74

12.       NOTICES................................................................................................................................ 74

13.       CHOICE OF LAW; JURY TRIAL WAIVER.......................................................................... 75

13.1     Choice of Law.............................................................................................................. 75

13.2     Choice of Venue........................................................................................................... 76

13.3     Waiver of Jury Trial...................................................................................................... 76

14.       ASSIGNMENTS AND PARTICIPATIONS;
SUCCESSORS................................................ 76

14.1     Assignments and Participations...................................................................................... 76

14.2     Successors................................................................................................................... 78

15.       AMENDMENTS; WAIVERS................................................................................................. 78

15.1     Amendments and Waivers............................................................................................ 78

15.2     No Waivers; Cumulative Remedies............................................................................... 78

16.       GENERAL PROVISIONS...................................................................................................... 78

16.1     Effectiveness................................................................................................................. 78

16.2     Section Headings.......................................................................................................... 79

16.3     Interpretation................................................................................................................ 79

16.4     Severability of Provisions.............................................................................................. 79

16.5     Withholding Taxes........................................................................................................ 79

16.6     Counterparts; Telefacsimile Execution........................................................................... 79

16.7     Revival and Reinstatement of Obligations....................................................................... 80

16.8     Confidentiality............................................................................................................... 80

16.9     Integration.................................................................................................................... 81

16.10   USA PATRIOT Act..................................................................................................... 81

16.11   Parent as Agent for Borrowers...................................................................................... 81

16.12   Amendment and Restatement........................................................................................ 81

EXHIBITS
AND SCHEDULES

Exhibits:

Exhibit A                                              Projections

Exhibit B                                              Form
of Borrowing Base Certificate

Exhibit C                                              Form
of Compliance Certificate

Exhibit D                                              Domestic
Subsidiaries

Exhibit E                                               Non-Material
Domestic Subsidiaries

Exhibit L-1                                           Form
of LIBOR Notice

Schedules:

Schedule D-1                                       Designated
Account

Schedule L-1                                        Lender's
Account

Schedule P-1                                        Permitted
Liens

Schedule 2.7(a)                                    Cash
Management Banks

Schedule 4.4                                        Financing
Statements

Schedule 5.4                                        Locations
of Inventory and Equipment

Schedule 5.6(a)                                    States of
Organization

Schedule 5.6(b)                                    Chief
Executive Offices

Schedule 5.6(c)                                    FEINS

Schedule 5.6(d)                                    Commercial
Tort Claims

Schedule 5.7(b)                                    Capitalization
of Borrowers

Schedule 5.7(c)                                    Capitalization
of Borrowers' Subsidiaries

Schedule 5.9                                        Litigation

Schedule 5.12                                      Employee
Benefits

Schedule 5.13                                      Environmental
Matters

Schedule 5.15                                      Intellectual
Property

Schedule 5.17                                      Deposit
Accounts and Securities Accounts

Schedule 5.19                                      Permitted
Indebtedness

Schedule 7.17(a)                                  Cash
Margin

Schedule 7.17(b)                                  Net Cash Capital
ExpendituresJackson Stock Purchase Agreement

Exhibit 10.9

STOCK
PURCHASE AGREEMENT

THIS IS A STOCK PURCHASE AGREEMENT, dated as of August 1,
2007 (the "Agreement"), among Seitel Holdings, Inc., a Delaware
corporation formerly known as Seitel Holdings, LLC (the "Company") and
John E. Jackson (such individual, the "Management Investor").

BACKGROUND

A.        Seitel, Inc., a Delaware corporation ("Seitel"),
is a wholly-owned subsidiary of the Company.

B.         The Management Investor has been a director of
Seitel since August 1, 2007.

C.        The Management Investor desires to purchase from
the Company for the amount set forth on Schedule I hereto the shares of
Common Stock, par value $0.001 per share, of the Company (the "Common Stock")
set forth on Schedule I hereto (the "Purchased Shares"), having
the terms set forth in the Certificate of Incorporation attached hereto as Exhibit
A (the "Certificate of Incorporation"), and the Company is willing
to sell such Purchased Shares, upon the terms and subject to the conditions
provided herein.

TERMS

In consideration for the various agreements contained
herein, the parties hereto agree as follows:

ARTICLE 1

PURCHASE OF COMMON STOCK

Section 1.1.      Purchase.  Upon the terms
and subject to the conditions of this Agreement, (i) the Management Investor
hereby agrees to purchase the respective number of Purchased Shares set forth
on Schedule I hereto and (ii) the Company hereby agrees to so issue and
sell such Purchased Shares and to deliver such Purchased Shares at the Closing
(as defined below).

Section 1.2.      Closing. 
Subject to the satisfaction of the conditions set forth in Article 5, the
closing of the purchase and sale of the Purchased Shares (the "Closing")
under this Agreement shall occur as soon as practicable following the date
hereof.  At the Closing, (i) the Company shall deliver to the Management
Investor a stock certificate representing the Purchased Shares to be issued to
such Management Investor pursuant to Section 1.1, duly registered in the name
of such Management Investor, and (ii) such Management Investor shall deliver to
the Company the aggregate purchase price for such Purchased Shares set forth on
Schedule I hereto.

ARTICLE 2     

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY

Section 2.1.       
Representations, Warranties and Covenants of the
Company.  The Company represents
and warrants to, and covenants and agrees with the Management Investor as follows:

(a)        The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware.
 

(b)        The Company has all requisite corporate
power and authority to perform this Agreement and to consummate the
transactions provided for herein, including, but not limited to, the issuance
and sale of the Purchased Shares to be issued by it hereunder.

(c)        The execution, delivery and performance
by the Company of this Agreement and the consummation by the Company of the
transactions contemplated hereby, including, but not limited to, the issuance
and sale of the Purchased Shares to be issued by it hereunder, have been duly
authorized.  This Agreement has been duly and validly executed and delivered
and constitutes the valid and binding obligation of the Company, enforceable
against it in accordance with the terms hereof.  All corporate action necessary
for the performance of all obligations of the Company hereunder at the Closing,
and the authorization, issuance, sale and delivery of the Purchased Shares in
accordance with this Agreement has been taken or will have been taken, as
applicable, prior to or concurrently with the Closing.

(d)        The Purchased Shares issued to the Management
Investor under Article 1 hereof, when
issued in compliance with the provisions of this Agreement, will be validly
issued, fully paid and non-assessable and will be free of all mortgages,
pledges, security interests, liens, charges, claims, restrictions, easements or
other encumbrances of any nature other than restrictions as set forth in the
Securities Holders Agreement, dated as of January 8, 2007 (the "Securities
Holders Agreement"), by and among the Company, ValueAct Capital Master
Fund, L.P. and the other management investors parties thereto, and under applicable state and federal securities
laws.  The sale of the Purchased Shares pursuant to this Agreement will not be
subject to any preemptive rights or rights of first refusal.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES AND COVENANTS OF THE MANAGEMENT INVESTOR

Section 3.1.     
 Representations, Warranties and Covenants of the
Management Investor.  The Management
Investor represents and warrants to, and
covenants and agrees with, the Company that:

(a)        Such Management Investor has the
requisite legal capacity, right, power and authority (including, if applicable,
the due authorization by all necessary corporate, partnership or limited
liability company action) to enter into this Agreement, to perform such
Management Investor's obligations hereunder and to consummate the transactions
provided for herein without the need for the consent of any other person
(including a spouse, if any, of such Management Investor); and this Agreement
has been duly authorized, executed and delivered and constitutes the legal,
valid and binding obligation of such Management Investor, enforceable against
such Management Investor in accordance with the terms hereof.  As used herein,
the term "person" means an individual or a corporation,
partnership, limited liability company, joint venture, trust, regulatory or
governmental agency or authority or other organization or entity of any kind.

(b)        The Purchased Shares are being acquired by such
Management Investor hereunder for investment, and not with a view to any
distribution thereof that would violate the Securities Act or the applicable
state securities laws of any state.  Such Management Investor will not
distribute the Purchased Shares in violation of the Securities Act or the
applicable securities laws of any state.

(c)        Such Management Investor understands that
the Purchased Shares have not been registered under the Securities Act or the
securities laws of any state and must be held indefinitely unless subsequently
registered under the Securities Act and any applicable state securities laws or
unless an exemption from such registration becomes or is available.

(d)        In formulating a decision to enter into
this Agreement, such Management Investor has relied solely upon (i) the
provisions of this Agreement, (ii) an independent investigation of the
Company's and Seitel's business, and (iii) consultations with his legal and
financial advisors with respect to this Agreement and the nature of his
investment; and that in entering into this Agreement no reliance was placed by
the Management Investor upon any representations or warranties other than those
contained in this Agreement.

(e)        Such Management Investor is financially able to
hold the Purchased Shares for long-term investment, believes that the nature
and amount of the Purchased Shares being acquired are consistent with his
overall investment program and financial position, and recognizes that there
are substantial risks involved in the acquisition of Purchased Shares.

(f)         Such
Management Investor confirms that (i) he is familiar with the business of the
Company and Seitel, (ii) he has had the opportunity to ask questions of the
officers and directors of the Company and to obtain (and that such Management
Investor has received to his satisfaction) such information about the business
and financial condition of the Company and Seitel as he has reasonably
requested, and (iii) such Management Investor, either alone or with a
representative (as defined in Rule 501(h) promulgated under the Securities
Act), has such knowledge and experience in financial and business matters that
such Management Investor is capable of evaluating the merits and risks of the
prospective investment in the Purchased Shares.

(g)        Such Management
Investor confirms that he qualifies
as an "accredited investor" within the meaning of Rule 501(a) of Regulation D
under the Securities Act under which the Management
Investor (i) has a net worth of at least one million dollars
($1,000,000), (ii) has had an annual income of at least two hundred thousand
dollars ($200,000), individually or joint income with spouse of three hundred
thousand dollars ($300,000) for each of the last two years, (iii) is a director
or executive officer of the Company or (iv) is a corporation or partnership,
not formed for the specific purpose of acquiring the securities offered, with
total assets in excess of $5,000,000.

(h)        Such Management Investor resides at the
address set forth below his  respective signature line to this Agreement, and
such Management Investor's telecopier and telephone numbers and social security
number or other tax identification number, as applicable, are in each case as
set forth below his or its respective signature line to this Agreement.

(j)         Such Management Investor
agrees to provide any information, execute any document and take any other
actions reasonably requested by the Company in connection with this Agreement
or the consummation of the transactions contemplated hereby in order that such
transactions will comply with the applicable securities laws of any
jurisdiction.  Such Management Investor also agrees to execute any document
with his spouse, if any, that the Company deems reasonably necessary to
effectuate the intent of this Agreement, any joinder, securities holders
agreement, registration rights agreement or other document executed in
connection herewith or any of the terms of any of the foregoing.

ARTICLE 4

COVENANTS

Section 4.1.      Commercially Reasonable Best
Efforts; Further Assurances.  The Company and the Management Investor agree
to use their respective commercially reasonable best efforts to take, or cause
to be taken, all appropriate action, and to do, or cause to be done, all things
necessary, proper or advisable under applicable laws and regulations to
consummate and make effective the purchase and sale of the Purchased Shares in
the most expeditious manner practicable, including but not limited to the
satisfaction of all conditions to the Closing and seeking to remove promptly
any injunction or other legal barrier that may prevent or delay such consummation.
The parties agree to execute and deliver such documents, certificates,
agreements and other writings and to take such other actions as may be
reasonably necessary or desirable in order to consummate or implement
expeditiously the purchase and sale of the Purchased Shares.

Section 4.2.      Certain Filings.  The
Company and the Management Investor shall cooperate with one another (i) in
determining whether any action by or in respect of, or filing with, any
governmental body, agency, official or authority is required, or any actions,
consents, approvals or waivers are required to be obtained from parties to any
material contracts, in connection with the consummation of the purchase and
sale of the Purchased Shares and (ii) in taking such actions or making any such
filings, furnishing information required in connection therewith and seeking
timely to obtain any such actions, consents, approvals or waivers.

ARTICLE 5

CONDITIONS TO CLOSING

Section 5.1.      Conditions to the Obligations
of Each Party.  The obligations of the Company and the Management Investor
to consummate the purchase and sale of the Purchased Shares are subject to the
satisfaction of the following conditions:

(a)        any required governmental and third
party notices, authorizations, consents, orders or approvals shall have been
obtained and be in effect; and

(b)        no court or governmental body, agency,
or official shall have issued any order, and there shall not have been adopted
or promulgated any statute, rule or regulation, that prohibits the consummation
of the purchase and sale of the Purchased Shares.

Section 5.2.      Conditions to Obligation of
the Company.  The obligation of the Company to consummate the Closing is
subject to the satisfaction of the following further conditions:

(a)        (i) the Management
Investor shall have performed in all material respects all of his obligations hereunder required to be
performed by him at or prior to the Closing (the "Closing Date") and
(ii) the representations and warranties of the Management Investor contained in
this Agreement shall be true in all material respects at and as of the Closing
Date as if made at and as of such time; and  

(b)        the Management Investor
shall have executed and delivered to the Company a Joinder to the Securities
Holders Agreement and Registration Rights Agreement, in form and substance
satisfactory to the Company. 

Section 5.3.      Conditions to Obligations of Management
Investor.  The obligation of the Management Investor to purchase the
Purchased Shares is subject to the satisfaction of the following further
conditions:  

 (a)        The Company
shall have performed in all material respects all of its obligations hereunder
required to be performed by it at or prior to the Closing Date; and

(b)        The representations and warranties of the Company contained in
this Agreement shall be true in all material respects at and as of the Closing
Date as if made at and as of such time (except for representations and
warranties made as of a specific date, which shall be true in all material
respects at and as of such date).

ARTICLE 6

MISCELLANEOUS

Section 6.1.      Notices.  All notices
provided for or permitted hereunder shall be made in writing by hand-delivery,
registered or certified first-class mail, fax or reputable courier guaranteeing
overnight delivery to the other party at the following addresses (or at such
other address as shall be given in writing by any party to the others):

if to the Company, to:  

 

Seitel
Holdings, Inc.

c/o
ValueAct Capital Master Fund, L.P.

435
Pacific Avenue, 4th Floor

San Francisco, CA 94133

Facsimile: 
(415) 362-5727

Attention:  Allison Bennington,
General Counsel

 

with a required copy to:

Dechert LLP

Cira Centre

2929 Arch Street

Philadelphia, PA 19104

Facsimile:  (215) 994-2222

Attention:   Christopher G. Karras

if to
the Management Investor, to such Management Investor's address as set forth on
the signature page hereto or such other address as may be specified from time
to time in writing to the Company by such Management Investor.

All
such notices and other communications hereunder shall be in writing and shall
be deemed to have been duly given if delivered personally, sent by telecopier
(subject to electronic confirmation of such facsimile transmission and the
sending (on the date of such facsimile transmission) of a confirmation copy of
such facsimile by nationally recognized overnight courier service or by
certified or registered mail, postage prepaid) or on the second business day
after being sent by nationally recognized overnight courier service or on the
fifth business day after being sent by registered or certified mail (postage
prepaid, return receipt requested) to the respective party.  

Section 6.2.      Termination. 
Notwithstanding any other provision of this Agreement, if prior to the Closing
a Management Investor is no longer an employee or director of the Company or
Seitel (or any of its subsidiaries) for any reason, this Agreement shall become
void and of no effect with regard to each of the Management Investors ab
initio.

Section 6.3.      Specific Performance.  The
parties hereto agree that irreparable damage would occur in the event any
provision of this Agreement is not performed in accordance with the terms
hereof and that the parties shall be entitled to specific performance of the
terms hereof; in addition to any other remedy at law or in equity.

Section 6.4.      Entire Agreement.  This
Agreement constitutes the entire agreement between the parties, and supersedes
all prior written and oral and all contemporaneous oral agreements and
understandings, with respect to the subject matter hereof.

Section 6.5.      Amendments and Waivers. 
Any provision of this Agreement may be amended or waived if, but only if; such
amendment or waiver is in writing and is signed, in the case of an amendment,
by each party hereto, or in the case of a waiver, by the party against whom the
waiver is to be effective.

Section 6.6.      Severability.  If any term
or other provision of this Agreement is invalid, illegal or incapable of being
enforced by any rule of law or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the purchase and sale of the
Purchased Shares is not affected in any manner materially adverse to any party.
Upon such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties hereto shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the parties as
closely as possible in an acceptable manner to the end that the purchase and
sale of the Purchased Shares is fulfilled to the extent possible.

Section 6.7.      Governing Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, regardless of the laws that might otherwise govern under
principles of conflicts of law applicable hereto.

Section 6.8.      Jurisdiction.  Any
suit, action or proceeding seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement or the purchase and
sale of the Purchased Shares shall be brought in any federal court in the State
of New York and each of the parties hereto hereby consents to the exclusive
jurisdiction of such courts (and of the appropriate appellate courts therefrom)
in any such suit, action or proceeding and irrevocably waives, to the fullest
extent permitted by law, any objection that it may now or hereafter have to the
laying of venue of any such suit, action or proceeding in any such court or
that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum. Process in any such suit, action or
proceeding may be served on any party anywhere in the world, whether within or
without the jurisdiction of any such court. Without limiting the generality of
the foregoing, each party hereto agrees that service of process upon such party
as provided in Section 6.1 shall be deemed effective service of process upon
such party.

Section 6.9.      Waiver of Jury Trial. EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
PURCHASE AND SALE OF THE PURCHASED SHARES.

Section 6.10.    Costs and Expenses.  All
costs and expenses incurred in connection with this Agreement and the purchase
and sale of the Purchased Shares shall be paid by the party incurring such
costs and expenses.

Section 6.11.    Survival of Representations and
Warranties.  The representations and warranties of each party contained in
this Agreement shall survive the Closing.

Section 6.12.    Descriptive Headings;
Definitions.  The descriptive headings herein are inserted for convenience
of reference only and are not intended to be part of or to affect the meaning
or interpretation of this Agreement.  The definitions contained in this
Agreement are applicable to the singular as well as the plural forms of such
terms and to the masculine as well as to the feminine and neuter genders of
such terms.

Section 6.13.    Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed to be
an original, but all of which shall constitute one and the same agreement.

Section 6.14.    Successors and Assigns. 
The provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns, provided
that no party may assign, delegate or otherwise transfer any of its rights or
obligations under this Agreement without the consent of the other parties hereto.

Section 6.15.    Parties in Interest.  This
Agreement shall be binding upon and inure solely to the benefit of each party
hereto, and nothing in this Agreement, express or implied, is intended to or
shall confer upon any other person any right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement.

[Signature
page follows]

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

	
  
	COMPANY

  	
  SEITEL HOLDINGS, INC.

	 

  By: /s/ P.H. Kamin                                                   
	

  Name: Peter H. Kamin

  Title: President

  
	
   

   

  	

  

  

	
   MANAGEMENT INVESTOR

  	
  /s/John E.
	Jackson                                                    
	

  John E. Jackson

  Address: 62 N. Knightsgate Circle

                 The Woodlands, TX 77382

  Telecopier No.: ___________________

  Telephone No.: (281) 419-7369 

  Tax Identification No.: ###-##-####

  

 

 

 

[Signature
page to Stock Purchase Agreement]

 

Schedule
I

 

to

 

Stock
Purchase Agreement

 

 

Purchased
Shares

 

	
  Management Investor

  	
  Purchased
  Shares 

  	
  Price
  Per Purchased Share

  	
  Aggregate
  Purchase Price of Purchased Shares

  
	
  John E. Jackson

  	
  513

  	
  $389.41966

  	
  $199,772.29

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]