Document:

EXHIBIT 10.1

 

AMENDMENT NUMBER ONE

TO AGREEMENT BY AND BETWEEN

HEARST COMMUNICATIONS,
INC. AND IVILLAGE, INC.

 

Amendment Number One to that certain agreement dated
as of December 19, 2003 (“Agreement”) by and between Hearst Communications, Inc.,
Hearst Magazines Division, a Delaware corporation (“Hearst”) and iVillage, Inc.
(“IV”) effective as of December 20, 2005.

 

Capitalized terms used herein and not otherwise
defined herein shall have the same meaning ascribed to them in the Agreement.

 

1.             Section B of the “Whereas” clause is
hereby amended by substituting “teenmag.com” for “teen.com”.

 

2.             Section 2(b) of the Agreement is
hereby amended to add the following:  IV
agrees to provide assistance to a third-party vendor designated by Hearst in
creating syndicated feeds of Licensed Property to Distributors.

 

3.             Section 1(d) of the Agreement is
hereby amended by adding the following: 
Hearst acknowledges and agrees that four of the nine employees referred
to in this Section 1(d) are subcontractors of IV.  Set forth herein as Exhibit 1(d) is
a list of those nine employees and subcontractors.  In the event any such employee or
subcontractor becomes unavailable for any reason, IV agrees to provide a
replacement reasonably satisfactory to Hearst. 
In addition to the nine employees/subcontractors described above, IV
shall also make available to Hearst on a non-dedicated basis sufficient
employees to provide services such as quality assurance, application
development, database administration, operations/systems management and email
marketing in support of efforts undertaken by the nine employees at Hearst’s
direction, but in no event less than the extent to which such services are
being provided as of the effective date of this Amendment.  IV acknowledges and agrees that Hearst shall
retain George Gianakis (or a substitute if he is unavailable or Hearst so
chooses) to perform ad operations for the Websites, including page tagging
for targeting ads.  IV agrees to allow
Gianakis or any substitute access to IV’s tools and facilities for purposes of
performing such tasks.  If Gianakis is
for any reason unavailable to perform such tasks, iVillage will work with
Hearst to

 

 

implement an alternative way for such tasks to be
performed in a manner and for a cost to be mutually agreed.

 

4.             The rate card annexed at Exhibit D in
the original Agreement will remain in effect.

 

5.             A new Section 1(n) is hereby added to
the Agreement as follows:  IV hereby
agrees to support and host a new website to be known as “GetReadyforProm.com”
(the “Prom Website”), in accordance with the work order annexed hereto as Exhibit 1(n).  In all other respects, the Prom Website shall
be considered a “Website” and shall be subject to the terms and conditions of
the Agreement, as herein amended.  In
full and complete consideration for IV’s services in connection with the Prom
Website, Hearst shall pay a one-time fee of $50,000 within thirty (30) days of
the effective date of this Amendment.

 

6.             Section 4(a) of the Agreement is
hereby amended by increasing the number of impressions referred to in the first
sentence from 100 million to 125 million.

 

7.             Section 4(c) of the Agreement is
hereby amended by replacing the reference to Web Trends with Omniture, and by
adding the following:  IV will deliver to
Hearst those reports listed at Exhibit 4 (c) in accordance with the
frequencies listed at that Exhibit.

 

8.             Section 5 of the Agreement is hereby
amended by adding the following after the second sentence:  IV shall also be entitled to a commission in
the amount of 30% of Net Subscription Revenue actually received by Hearst as a
result of any online subscription orders generated on other websites owned or
hosted by IV (or generated via direct link from such websites to a
Hearst-designated site for subscription orders) such as, for example, GURL.com,
but excluding those websites affiliated with other magazines published by
Hearst which are produced by IV pursuant to a separate agreement between the
parties dated as of December 19, 2003 (it being understood by the parties
that IV’s entitlement to commission as a result of sales on those other
websites is governed by the terms of that other agreement).

 

9.             Section 7(a) of the Agreement is
hereby amended as follows:  The term of
the Agreement is hereby extended until December 31, 2006.  The Agreement will not automatically renew;
however, Hearst shall have the option, excercisable at its discretion, no later
than September 1, 2006, to extend this Agreement for an additional six (6) month
period expiring June 30, 2007, for the same Maintenance Fee, subject,
however, to increase as set forth in section 11(b).

 

 

10.           Section 7(d) is hereby amended by
adding the following:  In addition, and notwithstanding anything herein to the
contrary, either party may terminate this Agreement in its entirety at any time
and without liability upon one-hundred twenty (120) days advance written
notice.

 

11.           Section 11(b) of the Agreement is
hereby amended as follows:  The
Maintenance Fee is hereby amended as follows, commencing as of December 20,
2005.

 

$35,000 per month in respect
of the Seventeen website,

$5,000 per month in respect
of the Teen website, and

$35,000 per month in respect
of the CosmoGirl! Website.

 

12.           Section 14(c) of the Agreement is
hereby amended by adding the following: 
Notwithstanding the foregoing, in the event this Agreement expires or
terminates for any reason, Hearst shall be entitled to make employment offers
to Jesse Mumford and to any of those persons who are subcontractors.

 

13.           A new Section 14 (m) of the Agreement is
hereby added as follows: Hearst shall have the right to terminate this
Agreement effective immediately upon written notice in the event IV undergoes a
“change in control”, provided such notice is given within ten (10) business
days following such change in control. 
As used above, change in control means (i) a sale of all or
substantially all of the assets of IV, (ii) a merger or consolidation of
IV with or into another corporation or other entity with the effect that,
immediately after such merger or consolidation, none of the existing holders of
IV voting stock (meaning securities having the right to vote in the election of
directors) immediately before such merger or consolidation holds, and the
existing holders of IV’s voting stock immediately before such merger or
consolidation do not hold in the aggregate, at least fifty percent (50%) of the
combined voting power of the then voting stock of the surviving corporation of
such merger or the corporation or other entity resulting from such
consolidation, (iii) the acquisition of twenty percent (20%) or more of
the voting stock of IV by any entity other than Hearst; (iv) the adoption
by IV of a plan of complete or partial

 

 

liquidation; or (v) if a petition shall be filed
against IV under any provision of the Bankruptcy Code or amendments thereto or
if a receiver shall be appointed for IV or any of its property.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment Number One as
of the day and year first written above.

 

 

	
   

  	
  HEARST
  COMMUNICATIONS, INC.,

  
	
   

  	
  HEARST MAGAZINES
  DIVISION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Richard Wilkie

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  iVillage, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Steven
  A. Elkes

  	
   

  
	
   

  	
   

  	
  Steve Elkes

  
	
   

  	
   

  	
  CFO, EVP,
  Operations & Business Affairs

  
					

 

 

[The following exhibits have been omitted and copies thereof
will be furnished to the Securities and Exchange Commission supplementally upon
request]

 

Exhibit 1(d) –
List of Employees and Contractors

Exhibit 1(n) – Prom
Website Work Order

Exhibit 4(c) –
Usage ReportsExhibit 10.1

 

LOAN AGREEMENT

 

($45,000,000 U.S.
REVOLVING LOAN FACILITY,

 

$15,000,000 CANADIAN
REVOLVING LOAN FACILITY

 

$15,000,000 SINGAPORE
REVOLVING LOAN FACILITY

 

AND

 

$10,000,000 U.K.
REVOLVING LOAN FACILITY)

 

dated as of February
6, 2006

 

AMONG

 

VERITAS DGC INC.,

as U.S. Borrower,

 

VERITAS ENERGY
SERVICES INC. and VERITAS ENERGY

SERVICES PARTNERSHIP,

as Canadian
Borrowers,

 

VERITAS GEOPHYSICAL
(ASIA PACIFIC) PTE. LTD.,

as Singapore Borrower

 

VERITAS DGC LIMITED,

as U.K. Borrower,

 

WELLS FARGO BANK, NATIONAL
ASSOCIATION,

as U.S. Agent and
Lead Arranger,

 

HSBC BANK CANADA,

as Canadian Agent

 

THE HONGKONG AND
SHANGHAI BANKING CORPORATION LIMITED,

SINGAPORE BRANCH,

as Singapore Agent

 

HSBC BANK PLC,

as U.K. Agent,

 

AND

 

THE OTHER LENDERS NOW
OR HEREAFTER

PARTIES HERETO

 

 

TABLE OF CONTENTS

 

 

	
   

  	
   

  	
   

  	
  Page

  
	
  1.

  	
   

  	
  Definitions.

  	
  1

  
	
   

  	
  1.1

  	
  Certain Defined Terms.

  	
  1

  
	
   

  	
  1.2

  	
  Miscellaneous. .

  	
  31

  
	
  2.

  	
   

  	
  Commitments; Loans;
  BA’s and Letters of Credit.

  	
  31

  
	
   

  	
  2.1

  	
  Loans and BA’s.

  	
  31

  
	
   

  	
  2.2

  	
  Letters of Credit.

  	
  34

  
	
   

  	
  2.3

  	
  Certain Provisions Relating to Bankers’ Acceptances.

  	
  40

  
	
   

  	
  2.4

  	
  Terminations, Reductions or Reallocations of Commitments.

  	
  45

  
	
   

  	
  2.5

  	
  Commitment Fees.

  	
  47

  
	
   

  	
  2.6

  	
  Several Obligations. .

  	
  48

  
	
   

  	
  2.7

  	
  Notes.

  	
  48

  
	
   

  	
  2.8

  	
  Use of Proceeds. .

  	
  49

  
	
   

  	
  2.9

  	
  Currency Fluctuations.

  	
  49

  
	
  3.

  	
   

  	
  Borrowings, Prepayments
  and Interest Options.

  	
  50

  
	
   

  	
  3.1

  	
  Borrowings. .

  	
  50

  
	
   

  	
  3.2

  	
  Prepayments.

  	
  51

  
	
   

  	
  3.3

  	
  Interest Options

  	
  51

  
	
  4.

  	
   

  	
  Payments and Tax
  Forms; Pro Rata Treatment; Computations, Etc.

  	
  56

  
	
   

  	
  4.1

  	
  Payments.

  	
  56

  
	
   

  	
  4.2

  	
  Limitation on Liability For Obligations.

  	
  63

  
	
   

  	
  4.3

  	
  Pro Rata Treatment.

  	
  63

  
	
   

  	
  4.4

  	
  Certain Actions, Notices, Etc.

  	
  63

  
	
   

  	
  4.5

  	
  Non-Receipt of Funds by Any Agent.

  	
  65

  
	
   

  	
  4.6

  	
  Sharing of Payments, Etc. .

  	
  65

  
	
  5.

  	
   

  	
  Conditions
  Precedent.

  	
  66

  
	
   

  	
  5.1

  	
  Initial Loans, Letters of Credit and Bankers’ Acceptances.

  	
  66

  
	
   

  	
  5.2

  	
  All Loans, Letters of Credit and Bankers’ Acceptances.

  	
  67

  
	
  6.

  	
   

  	
  Representations and
  Warranties.

  	
  68

  
	
   

  	
  6.1

  	
  Organization.

  	
  68

  
	
   

  	
  6.2

  	
  Financial Statements. .

  	
  68

  
	
   

  	
  6.3

  	
  Enforceable Obligations; Authorization. .

  	
  69

  
	
   

  	
  6.4

  	
  Other Debt. .

  	
  69

  
	
   

  	
  6.5

  	
  Litigation.

  	
  69

  
	
   

  	
  6.6

  	
  Title.

  	
  69

  
	
   

  	
  6.7

  	
  Taxes.

  	
  69

  
	
   

  	
  6.8

  	
  Regulations U and X.

  	
  70

  
	
   

  	
  6.9

  	
  Subsidiaries.

  	
  70

  
	
   

  	
  6.10

  	
  No Untrue or Misleading Statements.

  	
  70

  
	
   

  	
  6.11

  	
  ERISA.

  	
  70

  
	
   

  	
  6.12

  	
  Investment Company Act.

  	
  70

  
	
   

  	
  6.13

  	
  Solvency.

  	
  70

  
	
   

  	
  6.14

  	
  Fiscal Year.

  	
  71

  
	
   

  	
  6.15

  	
  Compliance.

  	
  71

  

 

i

 

	
   

  	
  6.16

  	
  Environmental Matters.

  	
  71

  
	
   

  	
  6.17

  	
  Collateral as of the Effective Date

  	
  71

  
	
  7.

  	
   

  	
  Affirmative
  Covenants.

  	
  72

  
	
   

  	
  7.1

  	
  Taxes, Existence, Regulations, Property, Etc.

  	
  72

  
	
   

  	
  7.2

  	
  Financial Statements and Information.

  	
  72

  
	
   

  	
  7.3

  	
  Financial Tests

  	
  73

  
	
   

  	
  7.4

  	
  Inspection.

  	
  73

  
	
   

  	
  7.5

  	
  Further Assurances.

  	
  73

  
	
   

  	
  7.6

  	
  Books and Records

  	
  73

  
	
   

  	
  7.7

  	
  Insurance.

  	
  73

  
	
   

  	
  7.8

  	
  Notice of Certain Matters.

  	
  74

  
	
   

  	
  7.9

  	
  Capital Adequacy

  	
  74

  
	
   

  	
  7.10

  	
  ERISA Information and Compliance.

  	
  75

  
	
   

  	
  7.11

  	
  Intercompany Accounts.

  	
  76

  
	
  8.

  	
   

  	
  Negative Covenants.

  	
  76

  
	
   

  	
  8.1

  	
  Borrowed Money Indebtedness.

  	
  76

  
	
   

  	
  8.2

  	
  Liens.

  	
  77

  
	
   

  	
  8.3

  	
  Contingent Liabilities.

  	
  77

  
	
   

  	
  8.4

  	
  Mergers, Consolidations and Dispositions of Assets.

  	
  77

  
	
   

  	
  8.5

  	
  Redemption, Dividends and Distributions

  	
  78

  
	
   

  	
  8.6

  	
  Nature of Business.

  	
  79

  
	
   

  	
  8.7

  	
  Transactions with Related Parties.

  	
  79

  
	
   

  	
  8.8

  	
  Loans and Investments

  	
  79

  
	
   

  	
  8.9

  	
  Subsidiaries

  	
  79

  
	
   

  	
  8.10

  	
  Organizational Documents

  	
  80

  
	
   

  	
  8.11

  	
  Unfunded Liabilities

  	
  80

  
	
   

  	
  8.12

  	
  Acquisitions

  	
  80

  
	
   

  	
  8.13

  	
  Negative Pledges.

  	
  80

  
	
   

  	
  8.14

  	
  Limitation on Capital Expenditures

  	
  80

  
	
   

  	
  8.15

  	
  Swap Exposure

  	
  81

  
	
   

  	
  8.16

  	
  Material Subsidiaries

  	
  81

  
	
  9.

  	
   

  	
  Defaults.

  	
  81

  
	
   

  	
  9.1

  	
  Events of Default.

  	
  81

  
	
   

  	
  9.2

  	
  Right of Setoff

  	
  84

  
	
   

  	
  9.3

  	
  Collateral Account.

  	
  84

  
	
   

  	
  9.4

  	
  Preservation of Security for Letter of Credit Liabilities.

  	
  85

  
	
   

  	
  9.5

  	
  Currency Conversion After Maturity.

  	
  85

  
	
   

  	
  9.6

  	
  Remedies Cumulative.

  	
  86

  
	
  10.

  	
   

  	
  Agents.

  	
  86

  
	
   

  	
  10.1

  	
  Appointment, Powers and Immunities.

  	
  86

  
	
   

  	
  10.2

  	
  Reliance.

  	
  87

  
	
   

  	
  10.3

  	
  Defaults

  	
  88

  
	
   

  	
  10.4

  	
  Material Written Notices

  	
  88

  
	
   

  	
  10.5

  	
  Rights as a Lender

  	
  88

  
	
   

  	
  10.6

  	
  Indemnification.

  	
  88

  
	
   

  	
  10.7

  	
  Non-Reliance on Agents and Other Lenders

  	
  89

  

 

ii

 

	
   

  	
  10.8

  	
  Failure to Act

  	
  89

  
	
   

  	
  10.9

  	
  Resignation or Removal of Agent.

  	
  89

  
	
   

  	
  10.10

  	
  No Partnership

  	
  90

  
	
   

  	
  10.11

  	
  Authority of Agent

  	
  90

  
	
  11.

  	
   

  	
  Miscellaneous.

  	
  91

  
	
   

  	
  11.1

  	
  Waiver

  	
  91

  
	
   

  	
  11.2

  	
  Notices

  	
  91

  
	
   

  	
  11.3

  	
  Expenses, Etc.

  	
  91

  
	
   

  	
  11.4

  	
  Indemnification.

  	
  92

  
	
   

  	
  11.5

  	
  Amendments, Etc.

  	
  93

  
	
   

  	
  11.6

  	
  Successors and Assigns.

  	
  94

  
	
   

  	
  11.7

  	
  Limitation of Interest.

  	
  97

  
	
   

  	
  11.8

  	
  Survival

  	
  98

  
	
   

  	
  11.9

  	
  Captions

  	
  98

  
	
   

  	
  11.10

  	
  Counterparts.

  	
  98

  
	
   

  	
  11.11

  	
  Governing Law.

  	
  98

  
	
   

  	
  11.12

  	
  Severability.

  	
  98

  
	
   

  	
  11.13

  	
  Interest Act (Canada)

  	
  98

  
	
   

  	
  11.14

  	
  Judgment Currency

  	
  98

  
	
   

  	
  11.15

  	
  Conflicts Between This Agreement and the Other Loan Documents

  	
  99

  
	
   

  	
  11.16

  	
  Limitation on Charges; Substitute Lenders; Non-Discrimination

  	
  99

  
	
   

  	
  11.17

  	
  WAIVER OF JURY TRIAL

  	
  99

  
	
   

  	
  11.18

  	
  Confidentiality

  	
  100

  
	
   

  	
  11.19

  	
  USA Patriot Act Notice

  	
  100

  
	
   

  	
  11.20

  	
  Special Condition Precedent to Singapore Revolving Loans and Letters
  of Credit

  	
  101

  

 

iii

 

	
  EXHIBITS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  A-1 — Request for Extension of Credit (U.S.
  Borrower)

  	
   

  
	
   

  	
  A-2 — Request for Extension of Credit
  (Canadian Borrowers)

  	
   

  
	
   

  	
  A-3 — Request for Extension of Credit (U.K.
  Borrower)

  	
   

  
	
   

  	
  A-4 – Request for Extension of Credit
  (Singapore Borrower)

  	
   

  
	
   

  	
  B — Rate Designation Notice

  	
   

  
	
   

  	
  C — Canadian Revolving Note

  	
   

  
	
   

  	
  D — U.S. Revolving Note

  	
   

  
	
   

  	
  E — Assignment and Acceptance

  	
   

  
	
   

  	
  F — Compliance Certificate

  	
   

  
	
   

  	
  G — Bankers’ Acceptance Notice

  	
   

  
	
   

  	
  H — Canadian Dollar Revolving Note

  	
   

  
	
   

  	
  I — U.K. Revolving Note

  	
   

  
	
   

  	
  J – Section 4.1(i) Certificate

  	
   

  
	
   

  	
  K – Singapore Revolving Note

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  
	
   

  	
   

  
	
   

  	
  1.1(a) – Existing Letters of Credit

  	
   

  
	
   

  	
  1.1(b) – Permitted Disposition

  	
   

  
	
   

  	
  6.5 – Litigation

  	
   

  
	
   

  	
  6.9 – Subsidiaries

  	
   

  
	
   

  	
  8.1 – Existing Indebtedness

  	
   

  
	
   

  	
  8.4 – Certain Conveyances of Equity
  Interests

  	
   

  
	
   

  	
  8.5 – Permitted Redemption, Dividends and
  Distributions

  	
   

  

 

iv

 

LOAN AGREEMENT

 

THIS LOAN AGREEMENT is made and entered into
as of February 6, 2006 (the “Effective Date”), by and among VERITAS DGC
INC., a Delaware corporation (the “U.S. Borrower”); VERITAS ENERGY
SERVICES INC., a corporation formed under the laws of the Province of Alberta,
and VERITAS ENERGY SERVICES PARTNERSHIP, a general partnership formed under the
laws of the Province of Alberta (collectively, the “Canadian Borrowers”
and each a “Canadian Borrower”); VERITAS GEOPHYSICAL (ASIA PACIFIC) PTE.
LTD. (Company registration number 200600860M), a company incorporated under the
laws of Singapore (the “Singapore Borrower”), VERITAS DGC LIMITED, a
company incorporated in England and Wales (the “U.K. Borrower”); each of
the lenders which is or may from time to time become a party hereto
(individually, a “Lender” and, collectively, the “Lenders”, which
terms shall include U.S. Lenders, Canadian Lenders, Singapore Lenders and U.K.
Lenders); WELLS FARGO BANK, NATIONAL ASSOCIATION (“Wells Fargo”), as
agent for the U.S. Lenders (in such capacity, together with its successors in
such capacity, the “U.S. Agent”) and as Lead Arranger; HSBC BANK CANADA
(“HSBC Canada”), as agent for the Canadian Lenders (in such capacity,
together with its successors in such capacity, the “Canadian Agent”);
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED, SINGAPORE BRANCH (“HSBC
Singapore”), as agent for the Singapore Lenders (in such capacity, together
with its successors in such capacity, the “Singapore Agent”); and HSBC
BANK PLC (“HSBC U.K.”), as agent for the U.K. Lenders (in such capacity,
together with its successors in such capacity, the “U.K. Agent”).

 

The parties hereto agree as follows:

 

1.             Definitions.

 

1.1           Certain
Defined Terms.

 

In this Agreement, terms defined above shall
have the meanings ascribed to them above. 
Unless a particular term, word or phrase is otherwise defined or the
context otherwise requires, capitalized terms, words and phrases used herein or
in the Loan Documents (as hereinafter defined) have the following meanings (all
definitions that are defined in this Agreement or in the Loan Documents in the
singular have the same meanings when used in the plural and vice versa):

 

Acceptance Fee means the fee payable in Canadian Dollars to each Canadian Lender
in respect of the Bankers’ Acceptances accepted by such Canadian Lender
computed in accordance with Section 2.3(c).

 

Accounts shall have the meaning assigned to it in Section 9.102 of the
Texas UCC.

 

Additional Interest means the aggregate of all amounts accrued or paid pursuant to the
Notes or any of the other Loan Documents (other than interest on the Notes at
the Stated Rate and any Acceptance Fee) which, under applicable laws, are or
may be deemed to constitute interest on the indebtedness evidenced by the Notes
or any other amounts owing under any Loan Document.

 

 

Adjusted EBITDA for any period means EBITDA for such period less multi-client
library amortization for such period.

 

Adjusted LIBOR means, with respect to each Interest Period applicable to a LIBOR
Borrowing, a rate per annum equal to the quotient, expressed as a percentage,
of (a) LIBOR with respect to such Interest Period divided by
(b) 1.0000 minus the Eurodollar Reserve Requirement in effect on the first
day of such Interest Period.

 

Affiliate means any Person controlling, controlled by or under common
control with, any other Person (and, in the case of a Person who is
incorporated in Singapore, includes a related corporation within the definition
of the Companies Act, Chapter 50 of Singapore). 
For purposes of this definition, “control” (including “controlled
by” and “under common control with”) means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities
or otherwise.

 

Agents means U.S. Agent, Canadian Agent, Singapore Agent and U.K. Agent,
collectively.

 

Agreement means this Loan Agreement, as it may from time to time be amended,
modified, restated or supplemented.

 

Annual Financial Statements means the annual audited financial statements of a Person,
including all notes thereto, which statements shall include a balance sheet as
of the end of the fiscal year relating thereto and an income statement and a
statement of cash flows for such fiscal year, all setting forth in comparative
form the corresponding figures from the previous fiscal year, all prepared in
conformity with GAAP in all material respects, and accompanied by the opinion
of independent certified public accountants of recognized national standing
(without a “going concern” or like qualification or exception and without any
qualification or exception as to the scope of such audit), which shall state
that such financial statements present fairly in all material respects the
financial position of such Person and, if such Person has any Subsidiaries, its
consolidated Subsidiaries as of the date thereof and the results of its
operations for the period covered thereby in conformity with GAAP.  As to U.S. Borrower only, Annual Financial
Statements shall also include unaudited consolidating financial statements for
U.S. Borrower and its Subsidiaries, each in Proper Form, certified by the chief
financial officer or other authorized officer of U.S. Borrower as presenting
fairly in all material respects the consolidating financial position of U.S.
Borrower and its Subsidiaries.

 

Applicable BA Discount Rate means (a) with respect to any Canadian Lender that is a Schedule I
Bank, as applicable to a BA being purchased by such Lender on any day, the CDOR
Rate; and (b) with respect to any Canadian Lender that is not a Schedule I
Bank, as applicable to a BA being purchased by such Lender on any day, the
lesser of (A) the CDOR Rate plus 10 basis points (0.10%), and (B) the average
(as determined by the Canadian Agent in good faith) of the respective
percentage discount rates (expressed to five decimal places and rounded upward,
if not in an increment of 1/100th of 1%, to the nearest 0.01%) quoted by the
Schedule II/III Reference Banks, in accordance with their normal market
practices, at or about 10:00 a.m.

 

2

 

(Calgary, Alberta time) on such date, for
purchase of bankers’ acceptances accepted by the Schedule II/III Reference
Banks having identical issue and comparable maturity dates and in a comparable
amount.

 

Applicable Canadian Pension Legislation means, at any time, any federal or provincial pension legislation
then applicable to the Canadian Borrowers, including (to the extent applicable)
the Employment Pension Plans Act (Alberta) and the ITA, including all
regulations made thereunder, and all rules, regulations, rulings and
interpretations made or issued by any Governmental Authority having or
asserting jurisdiction in respect thereof.

 

Applications means all applications and agreements for Letters of Credit, or
similar instruments or agreements, in Proper Form, now or hereafter executed by
any Borrower in connection with any Letter of Credit now or hereafter issued or
to be issued under the terms hereof at the request of any Person.

 

Assignment and Acceptance shall have the meaning ascribed to such term in Section 11.6(b).

 

Availability Period means, for each Lender, the period from and including the
Effective Date to (but not including) the Termination Date.

 

BA Discount Proceeds means in respect of any Bankers’ Acceptance being purchased by a
Canadian Lender on any day under Section 2.3, an amount (rounded to the nearest
whole Canadian cent, and with one-half of one Canadian cent being rounded up)
calculated on such day by multiplying:

 

(A)                              the face amount of such Bankers’ Acceptance; by

 

(B)                                the quotient equal to one divided by the sum of one plus the
product of:

 

(i)                                     the Applicable BA Discount Rate (expressed as a decimal) applicable
to such  Bankers’ Acceptance; and

 

(ii)                                  a fraction, the numerator of which is the number of days remaining
in the term of such Bankers’ Acceptance and the denominator of which is 365;

 

with such quotient being rounded up or down
to the nearest fifth decimal place and .000005 being rounded up.

 

Bankers’ Acceptance or BA means a non-interest bearing draft in Canadian
Dollars drawn by a Canadian Borrower on and accepted by a Canadian Lender and
issued for value pursuant to Section 2.3 hereof and includes a
depository bill under the DBNA and a bill of exchange under the Bills of
Exchange Act (Canada).

 

Bankers’ Acceptance Liabilities means, at any time and in respect of any Bankers’ Acceptance, the
face amount thereof if still outstanding and unpaid or, following maturity and 

 

3

 

payment thereof, the aggregate unpaid amount
of all Reimbursement Obligations at that time due and payable in respect of the
payment of such Bankers’ Acceptance upon maturity.

 

Bankers’ Acceptance Notice has the meaning specified in Section 2.3(a).

 

Bankruptcy Code means (i) the United States Bankruptcy Code, (ii) the Bankruptcy
and Insolvency Act (Canada), (iii) the Companies’ Creditors Arrangement Act
(Canada) and (iv) the Companies Act, Chapter 50 of Singapore read with the
Bankruptcy Act, Chapter 20 of Singapore, as the same may be amended and
together with any successor statutes.

 

Base Rate means, for any day, a rate per annum equal to the lesser of (a)
the then applicable Margin Percentage from time to time in effect plus the
greater of (1) the applicable Prime Rate for that day  and (2) in the case of Loans made to
U.S. Borrower, the Federal Funds Rate for that day plus 1⁄2 of 1% or (b) the
Ceiling Rate.  If for any reason the U.S.
Agent shall have determined (which determination shall be conclusive and
binding, absent manifest error) that it is unable to ascertain the Federal Funds  Rate for any reason, including, without
limitation, the inability or failure of the U.S. Agent to obtain sufficient
quotations in accordance with the terms hereof, the Base Rate shall, until the
circumstances giving rise to such inability no longer exist, be calculated
without regard to that particular component.

 

Base Rate Borrowing means that portion of the principal balance of the Loans at any
time bearing interest at the Base Rate.

 

Borrowed Money Indebtedness means, with respect to any Person, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments evidencing
borrowed money, (iii) all obligations of such Person under conditional sale or
other title retention agreements relating to Property purchased by such Person,
(iv) all obligations of such Person issued or assumed as the deferred purchase
price of Property or services (excluding obligations of such Person to
creditors for raw materials, inventory, services and supplies (and any other
trade payables) and deferred payments for services to employees and former
employees incurred in the ordinary course of such Person’s business), (v) all
lease obligations of such Person which have been capitalized on the balance
sheet of such Person in accordance with GAAP, (vi) all obligations of others
secured by any Lien on Property owned or acquired by such Person, whether or
not the obligations secured thereby have been assumed, equal to the lesser of
the amount of such obligation or the fair market value of such Property, (vii)
Interest Rate Risk Indebtedness and Currency Exchange Risk Indebtedness of such
Person, (viii) all obligations of such Person in respect of outstanding letters
of credit issued for the account of such Person (or for which such Person is
primarily liable) or bankers’ acceptances drawn by such Person and (ix) all
guarantees by such Person of another Person’s Borrowed Money Indebtedness
described in the other provisions of this definition.

 

Borrowers means U.S. Borrower, Canadian Borrowers, Singapore Borrower and
U.K. Borrower, collectively.  When used
in connection with Canadian Obligations, the term “the applicable Borrower”
shall mean the Canadian Borrowers, jointly.

 

4

 

Business Day means any day other than a day on which commercial banks are
authorized or required to close in Houston, Texas, New York, New York, Calgary,
Alberta, Singapore or London, England, as applicable.

 

Calculation Date means the last Business Day of each month.

 

Canadian Agent shall have the meaning ascribed to such term in the Preamble of
this Agreement.

 

Canadian Borrowers shall have the meaning ascribed to such term in the Preamble of
this Agreement; provided that upon the merger of Veritas Energy Services
Partnership with and into Veritas Energy Services Inc. as is contemplated by
such parties, all references herein to the Canadian Borrowers or a Canadian
Borrower shall mean Veritas Energy Services Inc.

 

Canadian Commitment means, as to any Canadian Lender, the obligation, if any, of such
Canadian Lender to make Canadian Revolving Loans, incur or participate in
Letter of Credit Liabilities relating to Canadian Letters of Credit and accept
and purchase Bankers’ Acceptances in an aggregate principal amount at any one
time outstanding up to (but not exceeding) the amount, if any, set forth
opposite such Canadian Lender’s name on the signature pages hereof under the
caption “Canadian Commitment”, or otherwise provided for in an Assignment and
Acceptance (as the same may be increased or reduced from time to time pursuant
to Section 2.4 hereof).

 

Canadian Dollars or C$ means lawful money of Canada.

 

Canadian Dollar Revolving Notes means the Notes of Canadian Borrowers evidencing the Canadian
Revolving Loans denominated in Canadian Dollars, in the form of Exhibit H
hereto.

 

Canadian Lender means each Lender party hereto with any Canadian Commitment or any
outstanding Canadian Obligations.

 

Canadian Letters of Credit has the meaning assigned to such term in Section 2.2
hereof.

 

Canadian Obligations means, as at any date of determination thereof, the sum of the
following (determined without duplication): 
(i) the aggregate principal amount of Canadian Revolving Loans
outstanding hereunder on such date, plus (ii) the aggregate amount of
the Bankers’ Acceptance Liabilities outstanding on such date,  plus (iii) the aggregate amount of
Letter of Credit Liabilities outstanding on such date relating to Canadian
Letters of Credit.  For purposes of
calculating the aggregate amount of Canadian Obligations, all amounts or values
expressed in Canadian Dollars shall be converted into Dollars at the Exchange
Rate in effect as of the date of determination.

 

Canadian Outside Equity Owners means all owners, other than U.S. Borrower or a Subsidiary of U.S.
Borrower, of any Equity Interests in and to Veritas Energy Services Inc. as of
the date hereof.  As of the date hereof,
Canadian Outside Equity Owners constitute no more than 0.2% of the aggregate of
all Equity Interests in and to Veritas Energy Services Inc. constituting 

 

5

 

“Exchangeable Shares” and 3.3% of the
aggregate of all Equity Interests in and to Veritas Energy Services Inc.
constituting “Class A Exchangeable Shares Series 1”.

 

Canadian Prime Loans means Canadian Revolving Loans made pursuant to Section 2.1(b)
hereof which are denominated in Canadian Dollars.

 

Canadian Prime Rate means, on any day, as to Canadian Prime Loans made to Canadian
Borrowers, the annual rate of interest announced from time to time by HSBC
Canada as its prime rate then in effect at its Principal Office, being the
reference rate used by HSBC Canada for determining interest rates on commercial
loans denominated in Canadian Dollars to borrowers in Canada.  The Canadian Prime Rate is a reference rate
and does not necessarily represent the lowest or best rate or a favored rate,
and HSBC Canada,  each Agent and each
Lender disclaims any statement, representation or warranty to the
contrary.  HSBC Canada, any Agent or any
Lender may make commercial loans or other loans at rates of interest at, above
or below the Canadian Prime Rate.

 

Canadian Resident means an Agent or Lender (a) that is resident in Canada for
purposes of the ITA as a result of being incorporated or organized under the
laws of Canada or a province thereof or (b) that is an “authorized foreign bank”
as referred to in the ITA that will receive or distribute all payments to be
received or distributed by it hereunder with respect to the Canadian
Obligations in respect of its “Canadian banking business” for purposes of the
ITA, with the result that it will be deemed to be a resident of Canada for
purposes of the ITA with respect to such payments.

 

Canadian Revolving Loan means any revolving credit loan made pursuant to Section 2.1(b)
hereof.

 

Canadian Revolving Notes means the Notes of Canadian Borrowers evidencing the Canadian
Revolving Loans denominated in Dollars, in the form of Exhibit C hereto.

 

Canadian Subsidiary means any Subsidiary of U.S. Borrower that is organized or formed
under the laws of Canada or any province or territory thereof.

 

Canadian Taxable Payment shall have the meaning ascribed to such term in Section
4.1(i)(ii) hereof.

 

Canadian Withholding Tax shall have the meaning ascribed to such term in Section
4.1(i)(ii) hereof.

 

Capital Expenditures means, with respect to any Person for any period, expenditures in
respect of fixed or capital assets by such Person, including capital lease
obligations incurred during such period (to the extent not already included),
which would be reflected as additions to Property, plant or equipment on a
balance sheet of such Person and its consolidated Subsidiaries, if any,
prepared in accordance with GAAP; but excluding expenditures during such
period for the repair or replacement of any fixed or capital asset which was
destroyed, damaged or taken, in whole or in part, to the extent financed by the
proceeds of an insurance policy maintained by 

 

6

 

such Person or the proceeds of a condemnation
award.  Capital Expenditures shall not
include cash multi-client library investments or acquisitions permitted under Section
8.14 hereof.

 

Capitalization Ratio means, as of any day, the ratio of (a) Funded Debt of U.S.
Borrower and its Subsidiaries, on a consolidated basis, as of the last day of
its most recently ended fiscal quarter to (b) the sum of shareholders’ equity
of U.S. Borrower and Funded Debt of U.S. Borrower and its Subsidiaries, on a
consolidated basis, as of such date.

 

CDOR Rate means, on any day, an annual rate of interest equal to the average
rate applicable to Canadian bankers’ acceptances appearing on the “Reuters
Screen CDOR Page” on such day for bankers’ acceptances having identical issue and
comparable maturity dates and in a comparable amount, or if such day is not a
Business Day, then on the immediately preceding Business Day; provided, however, if such  rate does not appear on the Reuters Screen
CDOR Page as contemplated, then the CDOR Rate on any day shall be calculated as
the arithmetic mean of the rates applicable to Canadian bankers’ acceptances
quoted by the Canadian Lenders which are listed in Schedule I to the Bank Act
(Canada) as of 12:00 noon (Calgary, Alberta time) on such day for bankers’
acceptances having identical issue and comparable maturity dates and in a
comparable amount, or if such day is not a Business Day, then on the
immediately preceding Business Day.

 

Ceiling Rate means, on any day, the maximum nonusurious rate of interest
permitted for that day by whichever of applicable United States federal or
Texas laws or, in the case of advances made in Singapore by Singapore Lenders
to Singapore Borrower, all applicable laws of Singapore, or in the case of
advances made in Canada by Canadian Lenders to Canadian Borrowers, whichever of
applicable Canadian federal or Alberta laws 
(or the laws of any other jurisdiction whose usury laws are deemed to
apply to the Notes or any other Loan Documents despite the intention and desire
of the express choice of law provisions set forth herein) permits the higher
interest rate, stated as a rate per annum. 
On each day, if any, that the Texas Finance Code establishes the Ceiling
Rate, the Ceiling Rate shall be the “weekly ceiling” (as defined in §303 of the
Texas Finance Code) for that day.  U.S.
Agent may from time to time, as to current and future balances, implement any
other ceiling under the Texas Finance Code by notice to Borrowers, if and to
the extent permitted by the Texas Finance Code. 
Without notice to Borrowers or any other Person, the Ceiling Rate shall
automatically fluctuate upward and downward as and in the amount by which such
maximum nonusurious rate of interest permitted by applicable law fluctuates.

 

Change of Control means a change resulting when any Unrelated Person or any
Unrelated Persons acting together which would constitute a Group together with
any Affiliates or Related Persons thereof (in each case also constituting
Unrelated Persons) shall at any time either (i) Beneficially Own more than 35%
of the aggregate voting power of all classes of Voting Stock of U.S. Borrower
or (ii) succeed in having sufficient of its or their nominees elected to the
Board of Directors of U.S. Borrower such that such nominees, when added to any
existing directors remaining on the Board of Directors of U.S. Borrower after
such election who are Affiliates or Related Persons of such Unrelated Person or
Group thereof and who were not on the Board of Directors twelve (12) months
prior to such change, shall constitute a majority of the Board of Directors of
U.S. Borrower.  As used herein (a) “Beneficially
Own” means “beneficially own” as defined in Rule 13d-3 of the Securities
Exchange Act of 1934, as amended, or any successor 

 

7

 

provision thereto; provided, however,
that, for purposes of this definition, a Person shall not be deemed to
Beneficially Own securities tendered pursuant to a tender or exchange offer
made by or on behalf of such Person or any of such Person’s Affiliates until
such tendered securities are accepted for purchase or exchange; (b) “Group”
means a “group” for purposes of Section 13(d) of the Securities Exchange Act of
1934, as amended; (c) “Unrelated Person” means at any time any Person
other than U.S. Borrower or any Subsidiary of U.S. Borrower and other than any
trust for any employee benefit plan of U.S. Borrower or any Subsidiary of U.S.
Borrower; (d) “Related Person” of any Person shall mean any other Person
owning (1) 5% or more of the outstanding common stock of such Person or (2) 5%
or more of the Voting Stock of such Person; and (e) “Voting Stock” of
any Person shall mean capital stock of such Person which ordinarily has voting
power for the election of directors (or persons performing similar functions)
of such Person, whether at all times or only so long as no senior class of
securities has such voting power by reason of any contingency.

 

Code means the U.S. Internal Revenue Code of 1986, as amended, as now
or hereafter in effect, together with all regulations, rulings and
interpretations thereof or promulgated thereunder.

 

Collateral means all Property now or hereafter subject to the Liens created
pursuant to any of the Security Documents.

 

Collateral Agency Agreement means that certain Collateral Agency Agreement dated concurrently
herewith executed by and among Agents and Wells Fargo Bank, National
Association, as Collateral Agent, as it may be amended, modified, restated,
supplemented and in effect from time to time.

 

Commitment Fee Percentage means (i) on any day prior to April 30, 2006, 0.25% per annum and
(ii) on and after May 1, 2006, the applicable per annum percentage set forth at
the appropriate intersection in the table shown below, based on the Leverage
Ratio as of the last day of the most recently ended fiscal quarter of U.S.
Borrower and its consolidated Subsidiaries calculated by U.S. Agent as soon as
practicable after receipt by U.S. Agent of all financial reports required under
this Agreement with respect to such fiscal quarter (including a Compliance
Certificate) (provided, however, that if the Commitment Fee Percentage is
increased as a result of the reported Leverage Ratio, such increase shall be
retroactive to the date as of which that U.S. Borrower was obligated to deliver
such financial reports to U.S. Agent pursuant to the terms of this Agreement
and provided further that if the Commitment Fee Percentage is decreased as a
result of the reported Leverage Ratio, and such financial reports are delivered
to U.S. Agent not more than ten (10) calendar days after the date required to
be delivered pursuant to the terms of this Agreement, such decrease shall be
retroactive to the date that U.S. Borrower was obligated to deliver such
financial reports to U.S. Agent pursuant to the terms of this Agreement):

 

	
   

  	
   

  	
  Commitment

  	
   

  
	
  Leverage Ratio

  	
   

  	
  Fee Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Greater than
  or equal to

  	
   

  	
   

  	
   

  
	
  2.00 to 1.00

  	
   

  	
  0.375

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Greater than
  or equal to

  	
   

  	
   

  	
   

  
	
  1.50 to 1.00
  but less than

  	
   

  	
   

  	
   

  
	
  2.00 to 1.00

  	
   

  	
  0.30

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Greater than
  or equal to

  	
   

  	
   

  	
   

  
	
  1.00 to 1.00
  but less than

  	
   

  	
   

  	
   

  
	
  1.50 to 1.00

  	
   

  	
  0.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than
  1.00 to 1.00

  	
   

  	
  0.20

  	
   

  

 

8

 

Commitment Percentage means, as to any Lender, the percentage equivalent of a fraction
the numerator of which is the amount of such Lender’s U.S. Commitment, Canadian
Commitment, Singapore Commitment or U.K. Commitment, as the case may be, and
the denominator of which is the aggregate amount of the U.S. Commitments,
Canadian Commitments, Singapore Commitment or U.K. Commitments, as the case may
be, of all Lenders.

 

Compliance Certificate shall have the meaning given to it in Section 7.2(c)
hereof.

 

Contribution Agreements means those certain Contribution Agreements dated concurrently
herewith executed by and among, respectively, (i) U.S. Borrower and the
guarantors in respect of the U.S. Obligations, (ii) Canadian Borrowers and the
guarantors in respect of the Canadian Obligations, (iii) Singapore Borrower and
the guarantors in respect of the Singapore Obligations and (iv) U.K. Borrower
and the guarantors in respect of the U.K. Obligations, as they may from time to
time be amended, modified, restated or supplemented.

 

Controlled Group means all members of a controlled group of corporations and all
trades or businesses (whether or not incorporated) under common control which,
together with any Borrower, are treated as a single employer under Section 414
of the Code or under Applicable Canadian Pension Legislation.

 

Corporation means any corporation, limited liability company, partnership,
joint venture, joint stock association, business trust and other business
entity.

 

Cover for Letter of Credit Liabilities or any Bankers’ Acceptance
Liabilities shall be effected by (i) delivering to the applicable Agent a
letter of credit in form and substance, and issued by a Person, acceptable to
the applicable Agent in its sole discretion or (ii) paying to the applicable
Agent immediately available funds, to be held by the applicable Agent in a
collateral account maintained by the applicable Agent at its Principal Office
and collaterally assigned to the applicable Agent as security for the
applicable Obligations using documentation reasonably satisfactory to the
applicable Agent in the amount required by any applicable provision
hereof.  Such letters of credit and
amounts in such collateral account shall be retained by the applicable Agent
until such time as the applicable Letter of Credit shall have expired and the
Reimbursement Obligations, if any, with respect thereto shall have been fully
satisfied or the applicable Bankers’ Acceptance shall have matured and the
related Bankers’ Acceptance Liabilities shall have been fully satisfied; provided,
however, that at such time if a Default or 

 

9

 

Event of Default has occurred and is
continuing, the applicable Agent shall not be required to release such letters
of credit or amounts in such collateral account from the time of such
collateral assignment until such Default or Event of Default shall have been
cured or waived.

 

Currency Exchange Risk Indebtedness means all obligations and indebtedness (on a “net” basis) of any
Obligor with respect to the program for the hedging of currency exchange risk
provided for in any program entered into by such Obligor for the purpose of
reducing such Obligor’s exposure to currency exchange fluctuations and not for
speculative purposes, as it may from time to time be amended, modified,
restated or supplemented.

 

DBNA means the Depository Bills and Notes Act (Canada).

 

Default means an event, act or condition which with notice or lapse of
time or both would, unless cured or waived, become an Event of Default.

 

Dollars, US$ and $ means lawful money of the United States
of America.

 

Domestic Subsidiary means any Subsidiary of U.S. Borrower other than a Foreign
Subsidiary.

 

EBITDA means, without duplication, for any period the consolidated net
income/loss (excluding any extraordinary gains or losses) of U.S. Borrower and
its Subsidiaries, on a consolidated basis, plus, to the extent deducted
in calculating consolidated net income/loss, depreciation (calculated net of
capitalized multi-client library expense), amortization (including multi-client
library amortization), Non-Cash Items, interest expense (in accordance with
GAAP), and United States federal, state, provincial and foreign income tax
expense, and minus, to the extent added in calculating consolidated net
income/loss, any Non-Cash Items.

 

Effective Date shall the meaning ascribed to such term in the Preamble of this
Agreement.

 

Environmental Claim means any third party (including Governmental Authorities and
employees) action, lawsuit, claim or proceeding (including claims or
proceedings at common law or under the United States Occupational Safety and
Health Act, as amended, or similar laws relating to safety of employees) which
seeks to impose liability for (i) noise; (ii) pollution, contamination,
protection or clean-up of the air, surface water, ground water or land; (iii)
solid, gaseous or liquid waste generation, handling, treatment, storage,
disposal or transportation; (iv) exposure to Hazardous Substances; (v) the
safety or health of employees or (vi) the manufacture, processing, distribution
in commerce, use, discharge or storage of Hazardous Substances.  An “Environmental Claim” includes, but
is not limited to, a common law action, as well as a proceeding to issue,
modify or terminate an Environmental Permit to the extent that such a
proceeding attempts to redress violations of an applicable permit, license, or
regulation as alleged by any Governmental Authority.

 

Environmental Liabilities means all liabilities arising from any Environmental Claim,
Environmental Permit or Requirements of Environmental Law under any theory of
recovery, at law or in equity, and whether based on negligence, strict
liability or otherwise, including but not 

 

10

 

limited to remedial, removal, response,
abatement, investigative, monitoring, personal injury and damage to Property or
injuries to persons, and any other related costs, expenses, losses, damages,
penalties, fines, liabilities and obligations, and all costs and expenses
necessary to cause the issuance, reissuance or renewal of any Environmental Permit
including reasonable attorneys’ fees and court costs.

 

Environmental Permit means any permit, license, approval or other authorization under
any applicable Requirement of Environmental Law relating to pollution or
protection of health or the environment, including laws, regulations or other
requirements relating to emissions, discharges, releases or threatened releases
of pollutants, contaminants or hazardous substances or toxic materials or
wastes into ambient air, surface water, ground water or land, or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport, or handling of pollutants, contaminants or Hazardous
Substances.

 

Equipment shall have the meaning assigned to it in Section 9.102 of the Texas
UCC.

 

Equity Interests means shares of the capital stock, partnership interests,
membership interest in a limited liability company, beneficial interests in a
trust or other equity interests in any applicable Person or any warrants,
options or other rights to acquire such interests.

 

ERISA means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and all rules, regulations, rulings and
interpretations adopted by the Internal Revenue Service or the U.S. Department
of Labor thereunder and, as the context may require, Applicable Canadian
Pension Legislation.

 

Eurodollar Rate means for any day during an Interest Period for a LIBOR Borrowing
a rate per annum equal to the lesser of (a) the sum of (1) the
Adjusted LIBOR in effect on the first day of such Interest Period plus (2) the
applicable Margin Percentage from time to time in effect and (b) the
Ceiling Rate.  Each Eurodollar Rate is
subject to adjustments for reserves, insurance assessments and other matters as
provided for in Sections 3.3 and 11.16 hereof.

 

Eurodollar Reserve Requirement means, on any day, that percentage (expressed as a decimal
fraction and rounded, if necessary, to the next highest one ten thousandth
(.0001)) which is in effect on such day for determining all reserve
requirements (including, without limitation, basic, supplemental, marginal and
emergency reserves) applicable to “Eurocurrency liabilities,” as currently
defined in Regulation D.  Each
determination of the Eurodollar Reserve Requirement by U.S. Agent shall be
conclusive and binding, absent manifest error, and may be computed using any
commercially reasonable averaging and attribution method.

 

Euros means the lawful currency for the time being of the European
Community.

 

Event of Default shall have the meaning assigned to it in Section 9.1
hereof.

 

Exchange Rate means, on any day, with respect to any foreign currency in
relation to Dollars or Dollars in relation to any foreign currency, the noon
buying rate in New York City for cable transfers payable in the applicable
foreign currencies as certified to the Federal Reserve Board by the Federal
Reserve Bank of New York for customs purposes on such day, as 

 

11

 

published on such day pursuant to Federal Reserve
Board Statistical Release H.10; provided, however, that in the event that any
applicable exchange rate cannot be determined on any day by the foregoing
procedure, then such exchange rate shall be determined for such day in
accordance with such commercially reasonable procedures as the applicable Agent
may elect.

 

Excluded Taxes means, in the case of a Lender or Agent (or a participant in any
Obligation), the taxes imposed or measured by reference to its income, profits,
overall capital or overall net worth and franchise taxes imposed on it, in each
case, by (a) the jurisdiction in which such Lender or Agent (or such
participant) is resident or incorporated or organized or is otherwise carrying
on business through a fixed base or permanent establishment or office, or (b)
the jurisdiction in which such Lender’s or Agent’s (or such participant’s)
lending office or branch in respect of which payments or extensions of credits
under this Agreement are made or are attributable is located or any Loan
hereunder is arranged or booked.

 

Existing Letters of Credit means the letters of credit described on Schedule 1.1(a)
hereto.

 

Federal Funds Rate means, for any day, a fluctuating interest rate per annum equal
for such day to the weighted average of the rates on overnight federal funds
transactions with members of the Federal Reserve System arranged by federal
funds brokers, as published for such day (or, if such day is not a Business
Day, for the next preceding Business Day) by the Federal Reserve Bank of New York,
or, if such rate is not so published for any such day which is a Business Day,
the average of the quotations for such day on such transactions received by
U.S. Agent from three federal funds brokers of recognized standing selected by
U.S. Agent in its sole and absolute discretion.

 

Financing Statements means all such Uniform Commercial Code or Canadian provincial
personal property security financing statements or, in the case of a Lien
created in England and Wales, forms 395 completed in accordance with Section
395 of the Companies Act 1985, as U.S. Agent shall reasonably require, in
Proper Form, duly executed or authorized, as applicable, by the applicable
Borrower (or any other applicable Obligor) to perfect or continue perfection of
the applicable Agent’s Liens in any applicable Collateral, as any of the
foregoing may from time to time be amended, modified, supplemented or restated.

 

First Currency shall have the meaning ascribed to such term in Section 11.14
hereof.

 

Foreign Subsidiary means any Subsidiary which is organized or incorporated under the
laws of a jurisdiction other than the United States of America, any state
thereof or the District of Columbia.

 

Funded Debt means, with respect to any Person, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments evidencing
borrowed money, (iii) all obligations of such Person under conditional sale or
other title retention agreements relating to Property purchased by such Person,
(iv) all obligations of such Person issued or assumed as the deferred purchase
price of Property or services (excluding obligations of such Person to
creditors for raw materials, inventory, services and supplies and deferred
payments for services to employees and former employees incurred in the
ordinary course of such Person’s business), (v) all lease obligations of 

 

12

 

such Person which have been capitalized on
the balance sheet of such Person in accordance with GAAP, (vi) all obligations
of others secured by any Lien on Property owned or acquired by such Person,
whether or not the obligations secured thereby have been assumed, equal to the
lesser of the amount of such obligation or the fair market value of such
Property, (vii) all obligations of such Person in respect of outstanding
letters of credit issued for the account of such Person (or for which such
Person is primarily liable) which support Borrowed Money Indebtedness or in
respect of outstanding bankers’ acceptances drawn by such Person and (viii) all
guarantees by  such Person in respect of
another Person’s Borrowed Money Indebtedness.

 

Funding Loss means, with respect to (a) any Borrower’s payment of
principal of a LIBOR Borrowing on a day other than the last day of the
applicable Interest Period; (b) any Borrower’s failure to borrow a LIBOR
Borrowing or to borrow funds by way of Bankers’ Acceptances on the date
specified by such Borrower; (c) any Borrower’s failure to make any
prepayment of the Loans (other than Base Rate Borrowings and Canadian Prime
Loans) on the date specified by such Borrower, or (d) any cessation of a
Eurodollar Rate to apply to the Loans or any part thereof pursuant to Section 3.3,
in each case whether voluntary or involuntary, any loss, expense, penalty,
premium or liability actually incurred by any Lender resulting therefrom  (including but not limited to any loss or
expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by any Lender to fund or maintain a Loan).

 

GAAP means, as to a particular Person, such United States accounting
practice as  conforms at the time to
generally accepted accounting principles, consistently applied for all periods
after the Effective Date so as to present fairly the financial condition, and
results of operations and cash flows, of such Person.  If any change in any accounting principle or
practice is required by the Financial Accounting Standards Board, all reports
and financial statements required hereunder may be prepared in accordance with
such change so long as the applicable Person provides to U.S. Agent such
disclosures of the impact of such change as U.S. Agent may reasonably require.
No such change in any accounting principle or practice shall, in itself, cause
a Default or Event of Default hereunder (but Borrowers, U.S. Agent and Lenders
shall negotiate in good faith to replace any financial covenants hereunder  to the extent such financial covenants are
affected by such change in accounting principle or practice).

 

General Intangibles shall have the meaning assigned to it in Section 9.102 of the
Texas UCC.

 

Governmental Authority means any governmental authority of  the United States of America or any state thereof,
the District of Columbia, Canada, the United Kingdom, Singapore, any Province
of Canada,  or of any other foreign
jurisdiction and any political subdivision of any of the foregoing, and any
central bank, agency, department, commission, board, bureau, court or other
tribunal having or asserting jurisdiction over any Agent, any Lender, any
Obligor or their respective Property.

 

Guaranties means, collectively, (i) the Guaranties dated concurrently
herewith executed by each Material Subsidiary of U.S. Borrower (other than
Foreign Subsidiaries) in favor of U.S. Agent, for the benefit of U.S.
Lenders,  (ii) the Guaranties dated
concurrently herewith executed by U.S. Borrower, by each Material Subsidiary of
U.S. Borrower (other than Foreign Subsidiaries), by the U.K. Borrower, by the
Singapore Borrower and by each Material 

 

13

 

Subsidiary of Canadian Borrower in favor of
Canadian Agent, for the benefit of Canadian Lenders and the Guaranties dated
concurrently herewith executed by the respective Canadian Borrowers with
respect to Canadian Obligations of the other Canadian Borrower in favor of
Canadian Agent, for the benefit of Canadian Lenders, with respect to Canadian
Obligations of the other Canadian Borrower, (iii) the Guaranties dated
concurrently herewith executed by U.S. Borrower, by each Material Subsidiary of
U.S. Borrower (other than Foreign Subsidiaries) , by the U.K. Borrower, by the
Canadian Borrower and by each Material Subsidiary of Singapore Borrower in
favor of Singapore Agent, for the benefit of Singapore Lenders, (iv) the
Guaranties dated concurrently herewith executed by U.S. Borrower, by each
Material Subsidiary of U.S. Borrower (other than Foreign Subsidiaries) , by the
Canadian Borrower, by the Singapore Borrower and by each Material Subsidiary of
U.K. Borrower in favor of U.K. Agent, for the benefit of U.K. Lenders and (iv)
any and all other guaranties hereafter executed in favor of any Agent, for the
benefit of U.S. Lenders, Canadian Lenders or U.K. Lenders, relating to the
Obligations, as any of them may from time to time be amended, modified,
restated or supplemented.

 

Hazardous Substance means petroleum products, and any hazardous or toxic waste or
substance defined or regulated as such from time to time by any law, rule,
regulation or order described in the definition of “Requirements of
Environmental Law”.

 

HSBC Canada shall have the meaning ascribed to such term in the Preamble of
this Agreement.

 

HSBC Singapore shall have the meaning ascribed to such term in the Preamble of
this Agreement.

 

HSBC U.K. shall have the meaning ascribed to such term in the Preamble of
this Agreement.

 

Information shall have the meaning ascribed to such term in Section 11.18
hereof.

 

Interest Coverage Ratio means, as of any day, the ratio of (a) EBITDA for the 12 months
ending on such day less cash multi-client library investment during such
12-month period to (b) Interest Expense for such 12-month period.

 

Interest Expense means, for any period, total interest expense accruing on Borrowed
Money Indebtedness of U.S. Borrower and its Subsidiaries during such period
(including interest expense attributable to capitalized leases, facing fees,
any commissions and charges with respect to letters of credit and bankers’ acceptance
financing and net costs under interest rate swap, collar, cap or similar
agreements providing interest rate protection), determined in accordance with
GAAP.

 

Interest Options means the Base Rate, each Eurodollar Rate and, as to the Canadian
Dollar Revolving Notes only, the Canadian Prime Rate, and “Interest Option”
means any of them.

 

14

 

Interest Payment Dates  means (a)  for Base
Rate Borrowings and for Canadian Prime Loans, (i) March 31, 2006, (ii) the
last day of each March, June, September and December thereafter prior to the
Revolving Loan Maturity Date and (iii) the Revolving Loan Maturity Date; and
(b) for LIBOR Borrowings, the end of the applicable Interest Period
(and if such Interest Period exceeds three months’ duration, quarterly,
commencing on the first quarterly anniversary of the first day of such Interest
Period) and the Revolving Loan Maturity Date.

 

Interest Period means, for each LIBOR Borrowing, a period commencing on the date
such LIBOR Borrowing began and ending on the numerically corresponding day
which is, subject to availability as set forth in Section 3.3(e), 1, 2,
3 or 6 months (or, if approved by U.S. Agent, 9 or 12 months) thereafter, as
any Borrower shall elect in accordance herewith; provided, (1) unless
U.S. Agent shall otherwise consent, no Interest Period with respect to a LIBOR
Borrowing shall commence on a date earlier than three (3) Business Days after
this Agreement shall have been fully executed; (2) any Interest Period with
respect to a LIBOR Borrowing which would otherwise end on a day which 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; (3) any Interest
Period with respect to a LIBOR Borrowing which begins on the last Business Day
of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period)
shall end on the last Business Day of the appropriate calendar month; and
(4) no Interest Period for a Revolving Loan shall ever extend beyond the
Revolving Loan Maturity Date.

 

Interest Rate Risk Agreement means an interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement or similar arrangement entered into
by U.S. Borrower for the purpose of reducing U.S. Borrower’s and its
Subsidiaries’ exposure to interest rate fluctuations and not for speculative
purposes, as it may from time to time be amended, modified, restated or
supplemented.

 

Interest Rate Risk Indebtedness means the net obligation and indebtedness of any Obligor with
respect to the program for the hedging of interest rate risk provided for in
any Interest Rate Risk Agreement.

 

Inventory shall have the meaning assigned to it in Section 9.102 of the
Texas UCC.

 

Investment means the purchase or other acquisition of any securities or
indebtedness of, or the making of any loan, advance, transfer of Property
(other than transfers in the ordinary course of business) or capital
contribution to, or the incurring of any liability (other than trade accounts
payable, letter of credit reimbursement agreements and deposit accounts with
banks arising in the ordinary course of business), contingently or otherwise,
in respect of the indebtedness of, any Person.

 

Issuer means the issuer (or, where applicable, each issuer) of a Letter
of Credit under this Agreement.

 

IRS means the United States Internal Revenue Service.

 

15

 

ITA means the Income Tax Act (Canada).

 

Legal Requirement means any law (including common law), statute, treaty, ordinance,
decree, requirement, order, judgment, rule, or regulation (or interpretation of
any of the foregoing) of, and the terms of any license or permit issued by, any
Governmental Authority, or any determination or award of an abritrator or a
court or other Governmental Authority, whether presently existing or arising in
the future.

 

Lender and Lenders shall the meanings ascribed to such terms in
the Preamble of this Agreement.

 

Lender Affiliate means, (a) with respect to any Lender, (i) an Affiliate of such
Lender or (ii) any entity (whether a corporation, partnership, trust or otherwise)
that is engaged in making, purchasing, holding or otherwise investing in bank
loans and similar extensions of credit in the ordinary course of its business
and is administered or managed by a Lender or an Affiliate of such Lender and
(b) with respect to any Lender that is a fund which invests in bank loans and
similar extensions of credit, any other fund that invests in bank loans and
similar extensions of credit and is managed by the same investment advisor as
such Lender or by an Affiliate of such investment advisor.

 

Letter of Credit Liabilities means, at any time and in respect of any Letter of Credit, the sum
of (i) the amount available for drawings under such Letter of Credit plus
(ii) the aggregate unpaid amount of all Reimbursement Obligations at the time
due and payable in respect of previous drawings made under such Letter of
Credit.  For the purpose of determining
at any time the amount described in clause (i), in the case of any Letter of
Credit payable in a currency other than Dollars or Canadian Dollars, such
amount shall be converted by the applicable Agent to Dollars by any reasonable
method, and such converted amount shall be conclusive and binding, absent
manifest error.  For purposes of calculating
the aggregate amount of Letter of Credit Liabilities, all amounts or values
expressed in Canadian Dollars shall be converted into Dollars at the Exchange
Rate in effect as of the date of calculation.

 

Letters of Credit means the U.S. Letters of Credit, the Canadian Letters of Credit,
the Singapore Letters of Credit and the U.K. Letters of Credit.

 

Leverage Ratio means, as of any day, the ratio of (a) Funded Debt of U.S.
Borrower and its Subsidiaries, on a consolidated basis, as of the last day of
its most recently ended fiscal quarter to (b) Adjusted EBITDA for the 4 quarter
period ending on the last day of the most recent fiscal quarter for which
financial statements are available.  In
the event that any Person becomes a Subsidiary of U.S. Borrower during the
applicable period for which the Leverage Ratio is being determined, Adjusted
EBITDA of such Person shall be calculated on a pro forma basis as if such
Person had been a Subsidiary of U.S. Borrower for all of such period so long as
Agents and Lenders have been provided with Annual Financial Statements for the
most recently ended fiscal year of such Person. 
U.S. Borrower shall furnish to U.S. Agent supporting calculations for
such pro forma adjustment and such other information as U.S. Agent may reasonably
request to determine the accuracy of such calculation.

 

16

 

LIBOR means, for each Interest Period for any LIBOR Borrowing, the rate
per annum (rounded upwards, if necessary, to the nearest 1/100th of 1%) equal
to the average of the offered quotations appearing on Telerate Page 3750 (or if
such Telerate Page shall not be available, any successor or similar service as
may be selected by U.S. Agent and Borrowers) as of (i) 11:00 a.m., Houston,
Texas time (in respect of a LIBOR Borrowing relating to the U.S. Revolving
Loans), (ii) 12:00 noon, Calgary, Alberta time (in respect of a LIBOR
Borrowing relating to the Canadian Revolving Loans), (iii) 12:00 noon,
Singapore time (in respect of a LIBOR Borrowing relating to the Singapore
Revolving Loans) or (iv) 12:00 noon, London, United Kingdom time (in
respect of a LIBOR Borrowing relating to the U.K. Revolving Loans) (or, in any
case, as soon thereafter as practicable) on the day two Business Days prior to
the first day of such Interest Period for deposits in Dollars having a term
comparable to such Interest Period and in an amount comparable to the principal
amount of the LIBOR Borrowing to which such Interest Period relates.  If none of such Telerate Page 3750 nor any
successor or similar service is available, then “LIBOR” shall mean, with
respect to any Interest Period for any applicable LIBOR Borrowing, the rate of
interest per annum, rounded upwards, if necessary, to the nearest 1/100th of
1%, quoted by (i) U.S. Agent at or before 11:00 a.m., Houston, Texas time
(in respect of a LIBOR Borrowing relating to the U.S. Revolving Loans), (ii)
Canadian Agent at or before 12:00 noon, Calgary, Alberta time (in respect
of a LIBOR Borrowing relating to the Canadian Revolving Loans), (iii) Singapore
Agent at or before 12:00 noon, Singapore time (in respect of a LIBOR Borrowing
relating to the Singapore Revolving Loans) or (iv) U.K. Agent at or before
12:00 noon, London, United Kingdom time (in respect of a LIBOR Borrowing
relating to the U.K. Revolving Loans) (or, in any case, as soon thereafter as
practicable), on the date two Business Days before the first day of such
Interest Period, to be the arithmetic average of the prevailing rates per annum
at the time of determination and in accordance with the then existing practice
in the applicable market, for the offering to the applicable Agent by one or
more prime banks selected by such Agent in its sole discretion, in the London
interbank market, of deposits in Dollars for delivery on the first day of such
Interest Period and having a maturity equal (or as nearly equal as may be) to
the length of such Interest Period and in an amount equal (or as nearly equal
as may be) to the LIBOR Borrowing to which such Interest Period relates.  Each determination by U.S. Agent of LIBOR
shall be conclusive and binding, absent manifest error, and may be computed
using any reasonable averaging and attribution method.

 

LIBOR Borrowing means each portion of the principal balance of the Loans at any
time bearing interest at a Eurodollar Rate.

 

Lien means any mortgage, pledge, charge, encumbrance, security
interest, collateral assignment or other lien (statutory or otherwise) or
restriction of any kind, whether based on common law, constitutional provision,
statute or contract, and shall include reservations, exceptions, encroachments,
easements, rights of way, covenants, conditions, restrictions and other title
exceptions.

 

Loan Documents means, collectively, this Agreement, the Notes, the Bankers’
Acceptances, the Bankers’ Acceptance Notices, the Collateral Agency Agreement,
the Guaranties, all Applications, the Security Documents, the Notice of Entire
Agreement, all instruments, certificates and agreements now or hereafter
executed or delivered by any Obligor to any Agent or any Lender pursuant to any
of the foregoing or in connection with the Obligations or any commitment
regarding the Obligations, and all amendments, modifications, 

 

17

 

renewals, extensions, increases and
rearrangements of, and substitutions for, any of the foregoing.

 

Loans means the U.S. Revolving Loans, the Canadian Revolving Loans, the
Singapore Revolving Loans and the U.K. Revolving Loans provided for by Section
2.1 hereof.

 

Majority Lenders means any two or more Lenders having greater than 50% of the
aggregate amount of U.S. Commitments, the Canadian Commitments, the Singapore
Commitments and the U.K. Commitments; provided that if all Commitments
have terminated, the Majority Lenders shall be any two or more Lenders having
greater than 50% of the aggregate amount of all Obligations outstanding.

 

Margin Percentage means (i) on any day prior to April 30, 2006, 0.00% per annum with
respect to Base Rate Borrowings and Canadian Prime Loans and 1.00% per annum
with respect to LIBOR Borrowings and (ii) on and after May 1, 2006, the
applicable per annum percentage set forth at the appropriate intersection in
the table shown below, based on the Leverage Ratio as of the last day of the
then most recently ended fiscal quarter of U.S. Borrower and its consolidated
Subsidiaries calculated by U.S. Agent as soon as practicable after receipt by
U.S. Agent of all financial reports required under this Agreement with respect
to such fiscal quarter (including a Compliance Certificate) (provided, however,
that if the Margin Percentage is increased as a result of the reported Leverage
Ratio, such increase shall be retroactive to the date that U.S. Borrower was
obligated to deliver such financial reports to U.S. Agent pursuant to the terms
of this Agreement and provided further that if the Margin Percentage is
decreased as a result of the reported Leverage Ratio, and such financial
reports are delivered to U.S. Agent not more than ten (10) calendar days after
the date required to be delivered pursuant to the terms of this Agreement, such
decrease shall be retroactive to the date that U.S. Borrower was obligated to
deliver such financial reports to U.S. Agent pursuant to the terms of this
Agreement):

 

	
   

  	
   

  	
   

  	
   

  	
  Canadian Prime Loans &

  	
   

  
	
   

  	
   

  	
  LIBOR Borrowings

  	
   

  	
  Base Rate Borrowings

  	
   

  
	
  Leverage Ratio

  	
   

  	
  Margin Percentage

  	
   

  	
  Margin Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater than
  or equal to

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.00 to 1.00

  	
   

  	
  1.50

  	
   

  	
  0.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater than
  or equal to

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.50 to 1.00
  but less than

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.00 to 1.00

  	
   

  	
  1.25

  	
   

  	
  0.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater than
  or equal to

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.00 to 1.00
  but less than

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.50 to 1.00

  	
   

  	
  1.00

  	
   

  	
  0.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less than
  1.00 to 1.00

  	
   

  	
  0.75

  	
   

  	
  0.00

  	
   

  

 

Material Adverse Effect means any material and adverse effect (i) on the validity or
enforceability of any of the Loan Documents or any of the rights or remedies of
the Agents or the 

 

18

 

Lenders thereunder or (ii) on the business,
condition (financial or otherwise), results of operations, assets, liabilities
or prospects of U.S. Borrower and its 
Subsidiaries on a consolidated basis.

 

Material Subsidiary means (a) any Domestic Subsidiary, Canadian Subsidiary, Singapore
Subsidiary or U.K. Subsidiary of U.S. Borrower whose (i)  total assets have a value (determined in
accordance with GAAP) of at least $3,000,000 as of the last day of any fiscal
quarter for a period of two preceding consecutive fiscal quarters or more, or
(ii) annual revenues exceed $3,000,000 for the most recently ended four fiscal
quarters of U.S. Borrower; (b) any Foreign Subsidiary (other than any Canadian
Subsidiary, Singapore Subsidiary or U.K. Subsidiary) of U.S. Borrower whose
(i)  total assets have a value
(determined in accordance with GAAP) of at least $10,000,000 as of the last day
of any fiscal quarter for a period of two consecutive preceding fiscal quarters
or more, or (ii) annual revenues exceed $10,000,000 for the most recently ended
four fiscal quarters of U.S. Borrower; and (c) any Subsidiary designated by the
U.S. Borrower in writing as a Material Subsidiary.  Assets of Foreign Subsidiaries shall be
converted into Dollars at the rates used for purposes of preparing the
consolidated balance sheet of the U.S. Borrower included in the audited
financial statements for purposes of this definition.

 

Maximum Canadian Available Amount means $15,000,000.  In
connection with the application of any provision hereof using the term “Maximum
Canadian Available Amount”, any amounts denominated in Canadian Dollars shall
be converted to Dollars using the then current Exchange Rate.  The Maximum Canadian Available Amount is
subject to change pursuant to Section 2.4 hereof.

 

Maximum Singapore Available Amount means $15,000,000.  In
connection with the application of any provision hereof using the term “Maximum
Singapore Available Amount”, any amounts denominated in Singapore Dollars shall
be converted to Dollars using the then current Exchange Rate.  The Maximum Singapore Available Amount is
subject to change pursuant to Section 2.4 hereof.

 

Maximum U.K. Available Amount means $10,000,000.  In
connection with the application of any provision hereof using the term “Maximum
U.K. Available Amount”, any amounts denominated in Pounds or Euros shall be
converted to Dollars using the then current Exchange Rate.  The Maximum U.K. Available Amount is subject
to change pursuant to Section 2.4 hereof.

 

Maximum U.S. Available Amount means $45,000,000.  The
Maximum U.S. Available Amount is subject to change pursuant to Sections 2.4
hereof.

 

Multiemployer Plan means a Plan that is subject to Title IV of ERISA and is a “multiemployer
plan” as defined in Section 3(37) of ERISA.

 

Non-Cash Items means as to any Person for any period, depreciation, amortization
and other non-cash charges (including amortization of the capitalized balance
of the multi-client data library of the Borrowers and their Subsidiaries)
determined in accordance with GAAP.

 

19

 

Non-U.S. Participant shall have the meaning ascribed to such term in Section
4.1(d)(i) hereof.

 

Notes shall have the meaning assigned to such term in Section 2.7
hereof.

 

Notice of Entire Agreement means a notice of entire agreement, in Proper Form, executed by
Borrowers, each other Obligor and Agents, as the same may from time to time be
amended, modified, supplemented or restated.

 

Obligations means, as at any date of determination thereof, the sum of the
following:  (i) the aggregate principal
amount of Loans outstanding hereunder on such date, plus (ii) the
aggregate amount of the outstanding Letter of Credit Liabilities on such date, plus
(iii) the aggregate amount of outstanding Bankers’ Acceptance Liabilities on
such date, plus (iv) all other outstanding liabilities, obligations and
indebtedness of any Obligor to any Agent or Lender under any Loan Document on
such date.   For purposes of calculating
the aggregate amount of Obligations, all amounts or values expressed in
Canadian Dollars, Singapore Dollars, Pounds or Euros shall be converted into
Dollars at the applicable Exchange Rate in effect as of the date of
determination and all amounts or values expressed in other currencies shall be
converted into Dollars using such commercially reasonable means of determining
the applicable exchange rate as the applicable Agent may elect.

 

Obligors means each Borrower and each Person now or hereafter an obligor
pursuant to a Guaranty and/or a Security Agreement.

 

Organizational Documents means, with respect to a corporation organized under the laws of
any State of the United States or any Province of Canada, the certificate of
incorporation or  articles of
incorporation and bylaws of such corporation; with respect to a company
incorporated in Singapore, the certificate of incorporation and the memorandum
and articles of association; with respect to a partnership, the partnership
agreement establishing such partnership; with respect to a trust, the
instrument establishing such trust and with respect to any other Person, the
agreements or instruments pursuant to which such Person was formed and by which
such Person is governed; in each case including any and all modifications
thereof as of the date of the Loan Document referring to such Organizational
Document and any and all future modifications thereof.

 

Past Due Rate means, on any day, a rate per annum equal to the lesser of (i) the
Ceiling Rate for that day or (ii) the applicable Base Rate or Canadian Prime
Rate, as the case may be, plus the Margin Percentage for Canadian Prime Rate
Borrowings then in effect plus two percent (2%).

 

Patriot Act shall have the meaning ascribed to such term in Section 11.19
hereof.

 

Payor shall have the meaning ascribed to such term in Section 4.5
hereof.

 

PBGC means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA and any pension
commission or similar body or fund constituted under any Applicable Canadian
Pension Legislation.

 

20

 

Permitted Disposition means sale or other disposition of the business or assets
described on Schedule 1.1(b) hereto on or before January 31, 2007.

 

Permitted Dividends means (i) dividends or distributions by a Subsidiary of U.S.
Borrower to U.S. Borrower or any other Subsidiary (other than a Foreign
Subsidiary) of U.S. Borrower and dividends or distributions by any Foreign
Subsidiary of U.S. Borrower to any other Foreign Subsidiary of U.S. Borrower,
(ii) stock dividends, and (iii) so long as no Default or Event of Default shall
have occurred and be continuing (or would result therefrom) and so long as
Borrowers will have at least $20,000,000 in a combination of unused Commitments
and unrestricted cash and cash equivalents (on a consolidated basis) subsequent
to any applicable payment, dividends paid by U.S. Borrower to its shareholders
after the date hereof in an aggregate amount not to exceed $25,000,000 from and
after the date hereof, and (iv) so long as (x) no Default or Event of Default
shall have occurred and be continuing (or would result therefrom), (y) the
Borrowers will have at least $150,000,000 in a combination of unused
Commitments and unrestricted cash and cash equivalents (on a consolidated
basis) subsequent to any applicable payment and (z) the  Leverage Ratio is less than 1.75 to 1.00
subsequent to any applicable payment, a one-time cash distribution to
shareholders of the U.S. Borrower or a share repurchase by the U.S. Borrower in
an amount not to exceed $150,000,000.

 

Permitted Investments means:  (a) readily
marketable securities issued or fully guaranteed by the full faith and credit
of the United States of America or of Canada or of the United Kingdom with
maturities of not more than eighteen months; (b) commercial paper rated “Prime
2” by Moody’s Investors Service, Inc. or “A-2” by Standard and Poor’s
Ratings Services or the equivalent thereof by Dominion Bond Rating Service
Limited with maturities of not more than 270 days; (c) corporate or municipal
obligations rated “A” or better by Moody’s Investors Service, Inc. and “A” or
better by Standard and Poor’s Ratings Services; and (d) certificates of
deposit, bankers’ acceptances, eurodollar deposits, other time deposits or
repurchase obligations issued by, or tax exempt bonds backed by letters of
credit issued by, any U.S., Canadian, Singapore or United Kingdom domestic bank
having capital surplus of at least $500,000,000 or by any other financial
institution acceptable to the Majority Lenders, all of the foregoing not having
a maturity of more than one year from the date of issuance thereof.

 

Permitted Liens means each of the following: (a) Liens for taxes, but only to
the extent that payment thereof shall not at the time be due or if due, the
payment thereof is being  contested in
good faith and adequate reserves computed in accordance with GAAP have been set
aside therefor; (b) Liens in effect on the Effective Date and disclosed to
the Lenders in the financial statements delivered on or prior to the Effective
Date pursuant to Section 6.2 hereof or in a schedule hereto; (c) normal
reservations, exceptions, encroachments, easements, rights of way, covenants,
conditions, restrictions and encumbrances which do not secure Borrowed Money
Indebtedness and which do not have a material adverse effect on the value or
utility of the applicable Property and zoning restrictions, easements,
licenses, reservations, provisions, covenants, conditions, waivers, and
restrictions on the use of Property, and which do not in any case singly or in
the aggregate materially impair the present value or utility of the applicable
Property; (d) Liens in favor of any Agent or any Lender under the Loan
Documents, including without limitation, Liens securing Interest Rate Risk
Indebtedness or Currency Exchange Risk Indebtedness owed to one or more of the
U.S. Lenders (but not to any Person which is not, at 

 

21

 

such time, a U.S. Lender); (e) Liens
incurred or deposits made in the ordinary course of business (1) in
connection with workmen’s compensation, unemployment insurance, social security
and other like laws, or (2) to secure insurance in the ordinary course of
business, the performance of bids, tenders, contracts, leases, licenses,
statutory obligations, surety, appeal and performance bonds and other similar
obligations incurred in the ordinary course of business, not, in any of the
cases specified in this clause (2), incurred in connection with the borrowing
of money, the obtaining of advances or the payment of the deferred purchase
price of Property; (f) attachments, judgments and other similar Liens
arising in connection with court proceedings, provided that with respect
to court proceedings which could reasonably be expected to cause an Event of
Default under Section 9.1(i) hereof, the execution and enforcement of
such Liens are effectively stayed and the claims secured thereby are being
actively contested in good faith with adequate reserves made therefor in
accordance with GAAP; (g) Liens imposed by law, such as landlords’,
carriers’, warehousemen’s, artisans’, mechanics’, materialmen’s and vendors’
liens, incurred in good faith in the ordinary course of business and securing
obligations which are not yet due or which are being contested in good faith by
appropriate proceedings if adequate reserves with respect thereto are
maintained in accordance with GAAP; (h) landlords’ liens arising under
leases entered into in the ordinary course of business; (i) Liens securing
purchase money indebtedness permitted under Section 8.1 hereof and
covering the Property so purchased and pre-existing Liens securing indebtedness
permitted under Section 8.1(h) hereof which do not cover Accounts or
other Property comprising the Collateral; (j) capital leases and sale/leaseback
transactions permitted under the other provisions of this Agreement; (k)
customary rights of set-off, revocation, refund or charge back under deposit
agreements or the Uniform Commercial Code (as adopted in any State) of banks
and other financial institutions; and (l) extensions, renewals and
replacements of Liens referred to in clauses (a) through (k) of
this definition; provided that any such extension, renewal or
replacement Lien shall be limited to the Property or assets covered by the Lien
extended, renewed or replaced and that the Borrowed Money Indebtedness secured
by any such extension, renewal or replacement Lien shall be in an amount not
greater than the amount of the indebtedness secured by the Lien extended,
renewed or replaced.

 

Permitted Senior Indebtedness means Borrowed Money Indebtedness (in addition to Borrowed Money
Indebtedness of U.S. Borrower and its Subsidiaries existing as of the date
hereof and any refinancings thereof) in an aggregate principal amount not
exceeding $50,000,000 with respect to which Borrower shall have demonstrated to
the satisfaction of the U.S. Agent on a pro forma basis that no Default or
Event of Default could be reasonably expected to arise as a result of the
incurrence of such Borrowed Money Indebtedness and which (i) is unsecured, (ii)
contains financial covenants which are no more onerous than the covenants set
forth herein, and (iii) does not require any amortization prior to six (6)
months after the Revolving Loan Maturity Date.

 

Permitted Subordinated Indebtedness means Borrowed Money Indebtedness with respect to which Borrower
shall have demonstrated to the satisfaction of the U.S. Agent on a pro forma
basis that no Default or Event of Default could be reasonably expected to arise
as a result of the incurrence of such Borrowed Money Indebtedness and which (i)
is unsecured, (ii) is subordinated to the Obligations in a manner and pursuant
to documentation acceptable to the Majority Lenders, (iii) contains financial
covenants which are no more onerous than the covenants set forth herein, (iv)
does not require any amortization prior to six (6) months after the 

 

22

 

Revolving Loan Maturity Date and (v) contains
other terms and conditions standard in subordinated debt issuances.

 

Person means any individual, Corporation, trust, unincorporated
organization, Governmental Authority or any other form of entity.

 

Plan means an employee pension benefit plan which is covered by Title
IV of ERISA or subject to the minimum funding standards under Section 412 of
the Code or any Applicable Canadian Pension Legislation and is either (a)
maintained by, or contributed to by, any Borrower or any member of the
Controlled Group for employees of any Borrower or any member of the Controlled
Group or (b) maintained pursuant to a collective bargaining agreement or any
other arrangement under which more than one employer makes contributions and to
which any Borrower or any member of the Controlled Group is then making or
accruing an obligation to make contributions or (c) with respect to which
Borrower or any member of the Controlled Group may have any liability,
contingent or otherwise.

 

Pounds means the lawful currency for the time being of the United
Kingdom.

 

Prime Rate means, on any day, (a) as to Loans made to U.S. Borrower, the rate
of interest publicly announced by Wells Fargo as its prime rate in effect at
its principal office in San Francisco, California, (b) as to Loans denominated
in Dollars made to Canadian Borrowers, the base rate for that day for Loans
denominated in Dollars made in Canada quoted by HSBC Canada, (c) as to Loans
made to Singapore Borrower, the rate for that day for Loans denominated in
Dollars quoted by HSBC Singapore and (d) as to Loans made to U.K. Borrower, the
rate for that day for Loans denominated in Dollars quoted by HSBC U.K. to prime
banks in the London interbank market for the relevant amount and the relevant
period or such other rate as notified by HSBC U.K. to U.K. Borrower.  The Prime Rate is, in each case, a reference
rate and does not necessarily represent the lowest or best rate or a favored
rate, and Wells Fargo, HSBC Canada, HSBC Singapore, HSBC U.K., each Agent and
each Lender disclaims any statement, representation or warranty to the
contrary. Wells Fargo, HSBC Canada, HSBC Singapore, HSBC U.K., any Agent or any
Lender may make commercial loans or other loans at rates of interest at, above
or below the Prime Rate.

 

Principal Office means (a) as to Obligations of 
U.S. Borrower, the principal office of U.S. Agent, presently located at
1000 Louisiana, 9th Floor, MAC: T5002-090, Houston, Texas 77002, (b) as to
Obligations of Canadian Borrowers, the principal office of Canadian Agent,
presently located at 407 - 8th Avenue S.W., Calgary, Alberta, T2P 1E5 Canada,
(c) as to Obligations of Singapore Borrower, the principal office of Singapore
Agent, presently located at 21 Collyer Quay, #08-01, HSBC Building, Singapore
049320, and (d) as to Obligations of U.K. Borrower, the principal office of
U.K. Agent, presently located at The Cross, Gloucester, Gloucestershire GL1 2AP
United Kingdom.

 

Proceeds of Remedies shall have the meaning ascribed to such term in Section 9.4
hereof.

 

Proper Form means in form and substance reasonably satisfactory to U.S. Agent.

 

23

 

Property means any interest in any kind of property or asset, whether real,
personal or mixed, tangible or intangible.

 

Qualifying Lender shall have the meaning ascribed to such term in Section
4.1(i)(iii) hereof.

 

Quarterly Dates means the last day of each March, June, September and December, provided
that if any such date is not a Business Day, then the relevant Quarterly Date
shall be the next succeeding Business Day.

 

Quarterly Financial Statements means the quarterly financial statements of a Person, which
statements shall include a balance sheet as of the end of the applicable fiscal
quarter and an income statement for such fiscal quarter and for the fiscal year
to date and a statement of cash flows for the fiscal year to date, subject to
normal year-end adjustments, all setting forth in comparative form the
corresponding figures as of the end of and for the corresponding fiscal quarter
of the preceding year, prepared in accordance with GAAP in all material
respects except that such statements are condensed and exclude detailed
footnote disclosures and certified by the chief financial officer or other
authorized officer of such Person as fairly presenting, in all material
respects, the consolidated financial condition of such Person as of such date.
As to U.S. Borrower only, Quarterly Financial Statements shall also include
unaudited consolidating financial statements for U.S. Borrower and its
Subsidiaries, in Proper Form, certified by the chief financial officer or other
authorized officer of U.S. Borrower as presenting fairly in all material respects
the consolidating financial position of U.S. Borrower and its Subsidiaries.

 

Rate Designation Date means that Business Day which is (a) in the case of Base Rate
Borrowings (i) by the U.S. Borrower, 11:00 a.m., Houston, Texas time, (ii) by
the Canadian Borrowers, 12:00 noon, Calgary, Alberta time, (iii) by the
Singapore Borrower, 11:00 a.m., Singapore time, and (iv) by the U.K. Borrower,
11:00 a.m., London, United Kingdom time, in each case on the date of such
borrowing and (b) in the case of LIBOR Borrowings (i) by the U.S.
Borrower, 11:00 a.m., Houston, Texas time, (ii) by the Canadian Borrowers,
12:00 noon, Calgary, Alberta time, (iii) by the Singapore Borrower, 12:00 noon,
Singapore time, and (iv) by the U.K. Borrower, 11:00 a.m., London, United Kingdom
time, in each case on the date three Business Days preceding the first day of
any proposed Interest Period.

 

Rate Designation Notice means a written notice substantially in the form of Exhibit B.

 

Refunding Bankers’ Acceptance has the meaning specified in Section 2.3(b).

 

Regulation D means Regulation D of the Board of Governors of the Federal
Reserve System from time to time in effect and includes any successor or other
regulation relating to reserve requirements applicable to member banks of the
U.S. Federal Reserve System.

 

Regulatory Change means with respect to any Lender, any change on or after the
Effective Date in any Legal Requirement (including, without limitation,
Regulation D) or the adoption or making on or after such date of any interpretation,
directive or request applying to a class of lenders including such Lender under
any Legal Requirements (whether or not having the force of law) by any
Governmental Authority.

 

24

 

Reimbursement Obligations means, as at any date, (i) the obligations of any Borrower then
outstanding, or which may thereafter arise, in respect of Letters of Credit
under this Agreement, to reimburse the applicable Issuers for the amount paid
by such Issuers in respect of any drawing under such Letters of Credit and (ii)
the obligations of the Canadian Borrowers then outstanding, or which may
thereafter arise, in respect of any Bankers’ Acceptance purchased by any
Canadian Lender or paid by it on maturity thereof.  Except for Canadian Letters of Credit
denominated in Canadian Dollars, Reimbursement Obligations in respect of any
Letter of Credit shall at all times be payable in Dollars notwithstanding any
such Letter of Credit being payable in a currency other than Dollars.

 

Request for Extension of Credit means a request for extension of credit duly executed by any
responsible officer, which may include the president, chief executive officer,
the chief financial officer or the director of treasury of the applicable
Borrower or any other Person duly authorized by one of such officers,
appropriately completed and substantially in the form of Exhibit A-1
(U.S. Borrower), Exhibit A-2 (Canadian Borrowers), Exhibit A-3
(U.K. Borrower) or Exhibit A-4 (Singapore Borrower) attached hereto, as
the case may be.

 

Required Canadian Collateral means all accounts receivable of Canadian Borrowers and their
Material Subsidiaries, including any amounts payable by any Foreign Subsidiary
to Canadian Borrowers or any of their Material Subsidiaries whether or not
evidenced by promissory notes or other evidence of indebtedness.

 

Required Payment shall have the meaning ascribed to such term in Section 4.5
hereof.

 

Required Singapore Collateral means all accounts receivable of Singapore Borrower and its
Material Subsidiaries, including any amounts payable by any Foreign Subsidiary
to Singapore Borrower or any of its Material Subsidiaries whether or not
evidenced by promissory notes or other evidence of indebtedness.

 

Required U.K. Collateral means all accounts receivable of U.K. Borrower and its Material
Subsidiaries, including any amounts payable by any Foreign Subsidiary to U.K.
Borrower or any of its Material Subsidiaries whether or not evidenced by
promissory notes or other evidence of indebtedness.

 

Required U.S. Collateral means (i) all Accounts of U.S. Borrower and its Material
Subsidiaries (other than Foreign Subsidiaries), including any amounts payable
by any Foreign Subsidiary to U.S. Borrower or any of its Material Subsidiaries
(other than Foreign Subsidiaries) whether or not evidenced by promissory notes
or other evidence of indebtedness, (ii) the U.S. Land Data Library and (iii)
all of the issued and outstanding Equity Interests in any Material Subsidiary
of U.S. Borrower (other than Foreign Subsidiaries and other than Subsidiaries
which are wholly-owned direct Subsidiaries of Foreign Subsidiaries) and 65% of
the issued and outstanding Equity Interests in any Foreign Subsidiary which is
a Material Subsidiary but which is not a Subsidiary of another Foreign
Subsidiary.  The Required U.S. Collateral
shall not include (i) Equity Interests in and to Veritas Energy Services Inc.
constituting “Exchangeable Shares” or “Class A Exchangeable Shares Series 1” or
(ii) any Equity Interests in or Property of any 

 

25

 

Subsidiary of the U.S. Borrower formed under
the laws of Australia or any state thereof or of Brazil or any state thereof.

 

Requirements of Environmental Law means all applicable requirements imposed by any law (including
for example and without limitation The Resource Conservation and Recovery Act
and The Comprehensive Environmental Response, Compensation, and Liability Act),
rule, regulation, or order of any federal, state, provincial or local
executive, legislative, judicial, regulatory or administrative agency, board or
authority in effect at the applicable time which relate to (i) noise; (ii)
pollution, protection or clean-up of the air, surface water, ground water or
land; (iii) solid, gaseous or liquid waste generation, treatment, storage,
disposal or transportation; (iv) exposure to Hazardous Substances; (v) the
safety or health of employees or (vi) regulation of the manufacture,
processing, distribution in commerce, use, discharge or storage of Hazardous
Substances.

 

Reset Date has the meaning specified in Section 2.9(a).

 

Restricted Indebtedness means Borrowed Money Indebtedness of the Borrowers or any of their
Subsidiaries, the payment, prepayment, redemption, repurchase or defeasance of
which is restricted under Article 8 hereof.

 

Revolving Loan Maturity Date means the maturity date of the Revolving Notes and the other
Obligations, being February 1, 2011.

 

Revolving Loans means the U.S. Revolving Loans, the U.K. Revolving Loans, the
Singapore Revolving Loans and the Canadian Revolving Loans.

 

Revolving Notes means the U.S. Revolving Notes, the U.K. Revolving Notes, the
Singapore Revolving Notes, the Canadian Dollar Revolving Notes and the Canadian
Revolving Notes.

 

Schedule I Bank means a bank that is a Canadian chartered bank listed on Schedule
I under the Bank Act (Canada).

 

Schedule II Bank means a bank that is a Canadian chartered bank listed on Schedule
II under the Bank Act (Canada).

 

Schedule III Bank means an authorized foreign bank listed on Schedule III under the
Bank Act (Canada).

 

Schedule II/III Reference Banks means HSBC Canada and other Schedule II Banks and/or Schedule III
Banks as are agreed to from time to time by the Canadian Borrowers and the
Canadian Agent; provided that there shall be no more than three Schedule II/III
Reference Banks at any time.

 

SEC means the United States Securities and Exchange Commission.

 

Second Currency shall have the meaning ascribed to such term in Section 11.14
hereof.

 

26

 

Section 4.1(i) Certificate shall have the meaning ascribed to such term in Section
4.1(i)(i) hereof.

 

Section 212 Lender shall have the meaning ascribed to such term in Section
4.1(i)(iv) hereof.

 

Security Agreements means (i) the security agreements, each in Proper Form, executed
or to be executed by U.S. Borrower and each of its Material Subsidiaries (other
than Foreign Subsidiaries) in favor of U.S. Agent, securing the U.S.
Obligations, covering all of the Required U.S. Collateral, (ii)  the security agreements, each in Proper Form,
executed or to be executed by U.K. Borrower and each of its Material
Subsidiaries in favor of U.K. Agent, securing the U.K. Obligations, covering
all of the Required U.K. Collateral, (iii) 
the security agreements, each in Proper Form, executed or to be executed
by Singapore Borrower and each of its Material Subsidiaries in favor of
Singapore Agent, securing the Singapore Obligations, covering all of the
Required Singapore Collateral, and (iv) the security agreements, each in Proper
Form, executed or to be executed by Canadian Borrowers and each of their
Material Subsidiaries in favor of Canadian Agent, securing the Canadian
Obligations, covering all of the Required Canadian Collateral, as the same may
from time to time be amended, modified, restated or supplemented.

 

Security Documents means, collectively, the Security Agreements, the Financing
Statements and any and all other security documents now or hereafter executed
and delivered by any Obligor to secure all or any part of the Obligations, as
any of them may from time to time be amended, modified, restated or
supplemented.  Notwithstanding anything
to the contrary set forth herein, at the option of any Agent, the Security
Documents executed by U.S. Borrower and any of its Subsidiaries which are not
Foreign Subsidiaries shall be executed in favor of the Collateral Agent under
the Collateral Agency Agreement rather than in favor of the U.S. Agent and
shall secure all of the Obligations rather than the U.S. Obligations.

 

Singapore Agent shall have the meaning ascribed to such term in the Preamble of
this Agreement.

 

Singapore Borrower shall have the meaning ascribed to such term in the Preamble of
this Agreement.

 

Singapore Commitment means, as to any Singapore Lender, the obligation, if any, of such
Singapore Lender to make Singapore Revolving Loans, incur or participate in
Letter of Credit Liabilities relating to Singapore Letters of Credit in an
aggregate principal amount at any one time outstanding up to (but not
exceeding) the amount, if any, set forth opposite such Singapore Lender’s name
on the signature pages hereof under the caption “Singapore Commitment”, or
otherwise provided for in an Assignment and Acceptance (as the same may be
increased or reduced from time to time pursuant to Section 2.4 hereof).

 

Singapore Dollars means lawful money of Singapore.

 

Singapore Lender means each Lender party hereto with any Singapore Commitment or
any outstanding Singapore Obligations.

 

27

 

Singapore Letters of Credit has the meaning assigned to such term in Section 2.2
hereof.

 

Singapore Obligations means, as at any date of determination thereof, the sum of the
following (determined without duplication): 
(i) the aggregate principal amount of Singapore Revolving Loans
outstanding hereunder on such date, plus (ii) the aggregate amount of
Letter of Credit Liabilities outstanding on such date relating to Singapore
Letters of Credit.  For purposes of
calculating the aggregate amount of Singapore Obligations, all amounts or
values expressed in Singapore Dollars shall be converted into Dollars at the
Exchange Rate in effect as of the date of determination.

 

Singapore Resident means an Agent or Lender that is resident in Singapore for the
purposes of the Income Tax Act, Chapter 134 of Singapore or that is an “approved bank” for which a
waiver of compliance with Section 45 or Section 45A of the Income Tax Act,
Chapter 134 of Singapore has been granted (and has not been revoked) by the
Inland Revenue Authority of Singapore for amounts paid or credited with respect
to the Singapore Obligations

 

Singapore Revolving Loan means any revolving credit loan made pursuant to Section 2.1(d)
hereof.

 

Singapore Revolving Notes means the Notes of Singapore Borrower evidencing the Singapore
Revolving Loans, in the form of Exhibit K hereto.

 

Singapore Subsidiary means any Subsidiary of the U.S. Borrower incorporated in
Singapore.

 

Singapore Taxable Payment shall have the meaning ascribed to such term in Section
4.1(i)(vi) hereof.

 

Singapore Withholding Tax shall have the meaning ascribed to such term in Section
4.1(i)(vi) hereof.

 

Stated Rate means, with respect to any Lender, the effective weighted per
annum rate of interest applicable to the Loans made by such Lender; provided,
that if on any day such rate shall exceed the Ceiling Rate for that day, the
Stated Rate shall be fixed at the Ceiling Rate on that day and on each day
thereafter until the total amount of interest accrued at the Stated Rate on the
unpaid principal balances of the Notes plus the Additional Interest equals the
total amount of interest which would have accrued if there had been no Ceiling
Rate.  If the Notes mature (or are
prepaid) before such equality is achieved, then, in addition to the unpaid
principal and accrued interest then owing pursuant to the other provisions of
the Loan Documents, the applicable Borrower promises to pay on demand to the
order of the holder of the applicable Note interest in an amount equal to the
excess (if any) of (a) the lesser of (i) the total interest which would have
accrued on such Note if the Stated Rate had been defined as equal to the
Ceiling Rate from time to time in effect and (ii) the total interest which would
have accrued on such Note if the Stated Rate were not so prohibited from
exceeding the Ceiling Rate, over (b) the total interest actually accrued on
such Note to such maturity (or prepayment) date.  Without notice to any Borrower or 

 

28

 

any other Person, the Stated Rate shall
automatically fluctuate upward and downward in accordance with the provisions
of this definition.

 

Subsidiary means, as to a particular parent Corporation, any Corporation of
which more than 50% of the indicia of equity rights (whether outstanding
capital stock or otherwise) is at the time directly or indirectly owned by,
such parent Corporation.

 

Swing Loan means a Loan made pursuant to Section 2.1(f) hereof.

 

Swing Loan Availability Period shall mean the period from and including the Effective Date to
(but not including) the Termination Date.

 

Swing Note shall mean that certain promissory note dated as of the Effective
Date herewith in the original principal amount of $5,000,000 executed by
Borrower payable to the order of Wells Fargo.

 

Tangible Net Worth means, with respect to U.S. Borrower and its Subsidiaries, the sum
of (a) total stockholders’ equity (which excludes treasury stock) less (b) the
stated value of any Investment (other than Investments in readily marketable
securities) in any entity which is not a Subsidiary (provided, however, that
solely for purposes of calculations required by Section 7.3(a), the
cumulative effect of currency translation adjustments shall be excluded in
calculating amounts under this clause (b)), less (c) the net book value
of all intangibles, all as determined on a consolidated basis for U.S. Borrower
and its consolidated Subsidiaries in accordance with GAAP, but excluding the
multi-client data library and proprietary software and deferred debt issuance
costs which shall be treated as tangible assets for the purposes hereof.

 

Tax or Taxes means any and all present or future taxes, duties,
levies, imposts, deductions, charges, withholdings, or reserve, special deposit
or similar requirement imposed by any Governmental Authority (including
interest and penalties), and any and all liabilities with respect to the
foregoing, but excluding Excluded Taxes.

 

Termination Date means the earlier of (a) the Revolving Loan Maturity Date or (b)
the date specified by any Agent in accordance with Section 9.1 hereof.

 

Texas UCC means the Uniform Commercial Code enacted in the State of Texas as
Chapters 1 through 11 of Title 1 of the Texas Business and Commerce Code, in force
on the Effective Date.

 

U.K. Agent shall have the meaning ascribed to such term in the Preamble of
this Agreement.

 

U.K. Borrower shall have the meaning ascribed to such term in the Preamble of
this Agreement.

 

U.K. Commitment means, as to any U.K. Lender, the obligation, if any, of such U.K.
Lender to make U.K. Revolving Loans, incur or participate in Letter of Credit
Liabilities relating to U.K. Letters of Credit in an aggregate principal amount
at any one time outstanding up to (but 

 

29

 

not exceeding) the amount, if any, set forth
opposite such U.K. Lender’s name on the signature pages hereof under the
caption “U.K. Commitment”, or otherwise provided for in an Assignment and
Acceptance (as the same may be increased or reduced from time to time pursuant
to Section 2.4 hereof).

 

U.K. Lender means each Lender party hereto with any U.K. Commitment or any
outstanding U.K. Obligations.

 

U.K. Letters of Credit has the meaning assigned to such term in Section 2.2
hereof.

 

U.K. Obligations means, as at any date of determination thereof, the sum of the
following (determined without duplication): 
(i) the aggregate principal amount of U.K. Revolving Loans outstanding
hereunder on such date, plus (ii) the aggregate amount of Letter of
Credit Liabilities outstanding on such date relating to U.K. Letters of
Credit.  For purposes of calculating the
aggregate amount of U.K. Obligations, all amounts or values expressed in Pounds
or Euros shall be converted into Dollars at the Exchange Rate in effect as of
the date of determination.

 

U.K. Revolving Loan means any revolving credit loan made pursuant to Section 2.1(c)
hereof.

 

U.K. Revolving Notes means the Notes of U.K. Borrower evidencing the U.K. Revolving
Loans, in the form of Exhibit I hereto.

 

U.K. Subsidiary means any Subsidiary of the U.S. Borrower formed under the laws of
England and Wales.

 

Unfunded Liabilities means, with respect to any Plan, at any time, the amount (if any)
by which (a) the value of the accumulated plan benefits under such Plan
determined on a plan termination basis in accordance with actuarial assumptions
at such time consistent with those prescribed by the PBGC for purposes of
Section 4044 of ERISA exceeds (b) the fair market value of all Plan assets
allocable to such benefits, all determined as of the then most recent actuarial
valuation report for such Plan, but only to the extent that such excess
represents a potential liability of any member of the Controlled Group to the
PBGC or a Plan under Title IV of ERISA and, with respect to any Plan governed
by Applicable Canadian Pension Legislation, the amount (if any) by which the
solvency liabilities under such Plan (determined in accordance with actuarial
assumptions contained in the most recent actuarial valuation report for such
Plan) exceed the fair market value of the assets of such Plan.  With respect to Multiemployer Plans, the term
“Unfunded Liabilities” shall also include contingent liability for withdrawal
liability under Section 4201 of ERISA or under Applicable Canadian Pension
Legislation to all Multiemployer Plans to which any Borrower or any member of a
Controlled Group for employees of any Borrower contributes in the event of
complete withdrawal from such plans.

 

U.S. Agent shall have the meaning ascribed to such term in the Preamble of
this Agreement.

 

U.S. Borrower shall have the meaning ascribed to such term in the Preamble of
this Agreement.

 

30

 

U.S. Commitment means, as to any U.S. Lender, the obligation, if any, of such U.S.
Lender to make U.S. Revolving Loans and incur or participate in Letter of
Credit Liabilities relating to U.S. Letters of Credit in an aggregate principal
amount at any one time outstanding up to (but not exceeding) the amount, if
any, set forth opposite such U.S. Lender’s name on the signature pages hereof
under the caption “U.S. Commitment”, or otherwise provided for in an Assignment
and Acceptance (as the same may be increased or reduced from time to time
pursuant to Section 2.4 hereof).

 

U.S. Land Data Library means all seismic data 100% owned by U.S. Borrower and each
Domestic Subsidiary which seismic data was acquired onshore within the
continental U.S. and Alaska.

 

U.S. Lender means each Lender party hereto with any U.S. Commitment or any
outstanding U.S. Obligations.

 

U.S. Letters of Credit shall have the meaning assigned to such term in Section 2.2
hereof.

 

U.S. Obligations means, as at any date of determination thereof, the sum of the
following (determined without duplication): 
(i) the aggregate principal amount of U.S. Revolving Loans outstanding
hereunder on such date plus (ii) the aggregate amount of the Letter of
Credit Liabilities outstanding on such date relating to U.S. Letters of Credit.

 

U.S. Revolving Loan means a Loan made pursuant to Section 2.1(a) hereof.

 

U.S. Revolving Notes means the Notes of U.S. Borrower evidencing the U.S. Revolving
Loans, in the form of Exhibit D hereto.

 

Wells Fargo shall have the meaning ascribed to such term in the Preamble of
this Agreement.

 

1.2           Miscellaneous.  The words “hereof,” “herein,” and “hereunder”
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not any particular provision of this Agreement.

 

2.             Commitments;
Loans; BA’s and Letters of Credit.

 

2.1           Loans and BA’s.  Each Lender severally agrees, subject to all
of the terms and conditions of this Agreement (including, without limitation, Sections
5.1 and 5.2 hereof), to make Loans and, in the case of Canadian Lenders,
to accept and purchase Bankers’ Acceptances, as follows:

 

(a)           U.S.
Revolving Loans.  From time to time
on or after the Effective Date and during the Availability Period, each U.S.
Lender shall make loans under this Section 2.1(a) to U.S. Borrower in an
aggregate principal amount at any one time outstanding (including such U.S.
Lender’s Commitment  Percentage of all
Letter of Credit Liabilities relating to U.S. Letters of Credit at such time)
up to but not exceeding such U.S. Lender’s Commitment Percentage of

 

31

 

the Maximum U.S. Available Amount.  Subject to the conditions in this Agreement,
any such U.S. Revolving Loan repaid prior to the Termination Date may be
reborrowed pursuant to the terms of this Agreement; provided, that any
and all such U.S. Revolving Loans shall be due and payable in full on the
Termination Date.  Loans made under this Section
2.1(a) shall be made and denominated in Dollars.  The aggregate of all U.S. Revolving Loans to
be made by the U.S. Lenders in connection with a particular borrowing shall be
equal to the lesser of (i) the unutilized portion of the Maximum U.S. Available
Amount or (ii) $200,000 or any integral multiple of $100,000 in excess thereof.

 

(b)           Canadian
Revolving Loans.  From time to time
on or after the Effective Date and during the Availability Period, each
Canadian Lender shall make loans under this Section 2.1(b) to Canadian
Borrowers (or either of them) in an aggregate principal amount at any one time
outstanding (including such Canadian Lender’s Commitment Percentage of all
Bankers’ Acceptance Liabilities and all Letter of Credit Liabilities relating
to Canadian Letters of Credit at such time) up to but not exceeding such
Canadian Lender’s Commitment Percentage of the Maximum Canadian Available
Amount.  Subject to the conditions in
this Agreement, any such Canadian Revolving Loan repaid prior to the
Termination Date may be reborrowed pursuant to the terms of this Agreement; provided,
that any and all such Canadian Revolving Loans shall be due and payable in full
on the Termination Date.  Subject to Section
2.1(e), Loans made under this Section 2.1(b) may, at the option of
the relevant Canadian Borrower, be made and denominated either in Dollars or in
Canadian Dollars (but all Loans to be made by Canadian Lenders under a
particular borrowing must be made and denominated in the same currency).  The aggregate of all Canadian Revolving Loans
to be made by the Canadian Lenders in connection with a particular borrowing shall
be equal to the lesser of (i) the unutilized portion of the Maximum Canadian
Available Amount or (ii) $200,000 or any integral multiple of $100,000 in
excess thereof (if the Loans are denominated in Dollars) or C$200,000 or any
integral multiple of C$100,000 in excess thereof (if the Loans are denominated
in Canadian Dollars).  Notwithstanding
anything else contained in Sections 3.1, 4.3 and 5.2, the
Canadian Borrowers may borrow Canadian Dollars by way of overdraft and any such
Borrowings shall be deemed (i) to be an advance of and be outstanding as a
Canadian Prime Loan from the date such overdraft is honored and (ii) to be a
representation and warranty by the Canadian Borrowers that at the time any such
overdraft is honored all of the conditions contained in Section 5.2
(other than paragraph (b) thereof) have been satisfied.

 

(c)           U.K.
Revolving Loans.  From time to time
on or after the Effective Date and during the Availability Period, each U.K.
Lender shall make loans under this Section 2.1(c) to U.K. Borrower in an
aggregate principal amount at any one time outstanding (including such U.K.
Lender’s Commitment  Percentage of all
Letter of Credit Liabilities relating to U.K. Letters of Credit at such time)
up to but not exceeding such U.K. Lender’s Commitment Percentage of the Maximum
U.K. Available Amount.  Subject to the
conditions in this Agreement, any such U.K. Revolving Loan repaid prior to the
Termination Date may be reborrowed pursuant to the terms of this Agreement; provided,
that any and all such U.K. Revolving Loans shall be due and payable in full on
the Termination Date.  Loans made under
this Section 2.1(c) shall be made and denominated in Dollars.  The aggregate of all U.K. Revolving Loans to
be made by the U.K. Lenders in connection with a particular borrowing shall be
equal to the lesser of (i) the unutilized portion of the Maximum U.K. Available
Amount or (ii) $200,000 or any integral multiple of $100,000 in excess thereof.

 

32

 

(d)           Singapore
Revolving Loans.  From time to time
on or after the Effective Date and during the Availability Period, each
Singapore Lender shall make loans under this Section 2.1(d) to Singapore
Borrower in an aggregate principal amount at any one time outstanding (including
such Singapore Lender’s Commitment 
Percentage of all Letter of Credit Liabilities relating to Singapore
Letters of Credit at such time) up to but not exceeding such Singapore Lender’s
Commitment Percentage of the Maximum Singapore Available Amount.  Subject to the conditions in this Agreement,
any such Singapore Revolving Loan repaid prior to the Termination Date may be
reborrowed pursuant to the terms of this Agreement; provided, that any
and all such Singapore Revolving Loans shall be due and payable in full on the
Termination Date.  Loans made under this Section
2.1(d) shall be made and denominated in Dollars.  The aggregate of all Singapore Revolving
Loans to be made by the Singapore Lenders in connection with a particular
borrowing shall be equal to the lesser of (i) the unutilized portion of the
Maximum Singapore Available Amount or (ii) $200,000 or any integral multiple of
$100,000 in excess thereof.

 

(e)           Bankers’
Acceptances.  From time to time on or
after the Effective Date and during the Availability Period, each Canadian
Lender shall accept and purchase Bankers’ Acceptances drawn on it under Section
2.3 hereof by Canadian Borrowers (or either of them) in an aggregate
principal amount at any one time outstanding (including such Canadian Lender’s
Commitment Percentage of all Canadian Revolving Loans outstanding at such time
and all Letter of Credit Liabilities relating to Canadian Letters of Credit at
such time) up to but not exceeding such Canadian Lender’s Commitment Percentage
of the Maximum Canadian Available Amount. 
No Bankers’ Acceptance may be made or accepted on or after the
Termination Date and all outstanding Bankers’ Acceptances shall mature no later
than the end of the Availability Period. 
Bankers’ Acceptances shall be made and denominated in Canadian Dollars.

 

(f)            Swing
Loans.  From time to time on or after
the Effective Date and during the Swing Loan Availability Period, provided no
Default or Event of Default has occurred which is continuing, Wells Fargo shall
make loans under this Section 2.1(f) to U.S. Borrower in an aggregate
principal amount at any one time outstanding up to but not exceeding
$5,000,000.  Swing Loans shall constitute
“U.S. Revolving Loans” for all purposes hereunder, except that until such time
as the other U.S. Lenders shall have purchased a participating interest in such
Swing Loans as provided for herein, such Swing Loans shall only be considered a
utilization of the U.S. Commitment of Wells Fargo (and following such a
purchase of a participating interest, the U.S. 
Commitment of each U.S. Lender shall be considered utilized by the
amount of such participating interest and the amount of Wells Fargo’s U.S.
Commitment considered to be utilized shall be decreased by the aggregate amount
of such participating interests). 
Notwithstanding the foregoing sentence, the aggregate amount of all U.S.
Revolving Loans (including, without limitation, all Swing Loans) shall not at
any time exceed the Maximum U.S. Available Amount.  Subject to the conditions in this Agreement,
any Swing Loan repaid prior to the Termination Date may be reborrowed pursuant
to the terms of this Agreement; provided, that any and all such Swing Loans
shall be due and payable in full at the end of the Swing Loan Availability
Period.  At any time, upon the request of
Wells Fargo, each U.S. Lender (other than Wells Fargo) shall, on the first
Business Day after such request is made, purchase a participating interest in
any one or more Swing Loans made in accordance with the first sentence of this Section
2.1(f) pro rata in accordance with their respective U.S. Commitments.  Each U.S. Lender 

 

33

 

will immediately transfer to Wells Fargo, in
immediately available funds, the amount of its participation.  Whenever, at any time after Wells Fargo has
received from any U.S. Lender such U.S. Lender’s participation in a Swing Loan,
Wells Fargo receives payment on account thereof, Wells Fargo will distribute to
such U.S. Lender its participating interest in such amount (appropriately
adjusted, in the case of interest payments, to reflect the period of time
during which such U.S. Lender’s participating interest was outstanding and
funded); provided, however, that in the event that such payment received by
Wells Fargo is required to be returned to a Borrower, such U.S. Lender will
return to Wells Fargo any portion thereof previously distributed by Wells Fargo
to it.  Each U.S. Lender’s obligation to
purchase such participating interests shall be absolute and unconditional and
shall not be affected by any circumstance, including, without limitation, (i)
any set-off, counterclaim, recoupment, defense or other right which such U.S.
Lender or any other Person may have against Wells Fargo or any other Person for
any reason whatsoever; (ii) the occurrence or continuance of a Default or Event
of Default or the termination of any U.S. Commitment; (iii) any adverse change
in the condition (financial or otherwise) of any Obligor or any other Lender;
(iv) any breach of this Agreement or any other Loan Document by any Obligor or
any other U.S. Lender; or (v) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing.  Each Swing Loan (or any portion thereof),
once so participated, shall cease to be a Swing Loan for the purposes of this
Agreement, but shall continue to be a U.S. Revolving Loan.    Each Swing Loan shall be in an amount equal
to $100,000 or a integral multiple thereof.

 

2.2           Letters of Credit.

 

(a)           Letters of Credit.  Subject to the terms and conditions of this
Agreement, and on the condition that (i) aggregate Letter of Credit Liabilities
relating to U.S. Letters of Credit shall never exceed the Maximum U.S.
Available Amount, (ii) aggregate Letter of Credit Liabilities relating to
Canadian Letters of Credit shall never exceed the Maximum Canadian Available
Amount,  (iii) aggregate Letter of Credit
Liabilities relating to Singapore Letters of Credit shall never exceed the
Maximum Singapore Available Amount and (iv) aggregate Letter of Credit
Liabilities relating to U.K. Letters of Credit shall never exceed the Maximum
U.K. Available Amount:

 

(1)           U.S. Borrower shall have the right,
in addition to the right to obtain U.S. Revolving Loans provided for in Section
2.1(a) hereof, to utilize the U.S. Commitments from time to time during the
Availability Period by obtaining the issuance of standby and commercial letters
of credit if U.S. Borrower shall so request in the notice referred to in Section
2.2(b)(i) hereof (the Existing Letters of Credit and such letters of credit
as any of them may be amended, supplemented, extended or confirmed from time to
time, being herein collectively called the “U.S. Letters of Credit”),

 

(2)           Canadian Borrowers shall have the
right, in addition to the right to obtain Canadian Revolving Loans provided for
in Section 2.1(b) hereof and Bankers’ Acceptances provided for in Section
2.1(e) hereof, to utilize the Canadian Commitments from time to time during
the Availability Period by obtaining the issuance of standby and commercial
letters of credit if Canadian Borrowers shall so request in the notice referred
to in Section 2.2(b)(i) hereof (such letters of credit as any of them
may be amended, supplemented, extended or confirmed from time to time, being
herein collectively called 

 

34

 

the “Canadian Letters of Credit”,
which term shall include, if the Canadian Lenders agree, letters of guarantee,
bid bonds, performance bonds, customs bonds and similar undertakings),

 

(3)           Singapore Borrower shall have the
right, in addition to the right to obtain 
Singapore Revolving Loans provided for in Section 2.1(d) hereof,
to utilize the Singapore Commitments from time to time during the Availability
Period by obtaining the issuance of standby and commercial letters of credit if
Singapore Borrower shall so request in the notice referred to in Section
2.2(b)(i) hereof (such letters of credit as any of them may be amended,
supplemented, extended or confirmed from time to time, being herein
collectively called the “Singapore Letters of Credit”, which term shall
include, if the Singapore Lenders agree, letters of guarantee, bid bonds,
performance bonds, customs bonds and similar undertakings), and

 

(4)           U.K. Borrower shall have the right, in
addition to the right to obtain U.K. Revolving Loans provided for in Section
2.1(c) hereof, to utilize the U.K. Commitments from time to time during the
Availability Period by obtaining the issuance of standby and commercial letters
of credit if U.K. Borrower shall so request in the notice referred to in Section
2.2(b)(i) hereof (such letters of credit as any of them may be amended,
supplemented, extended or confirmed from time to time, being herein
collectively called the “U.K. Letters of Credit”, which term shall
include, if the U.K. Lenders agree, letters of guarantee, bid bonds,
performance bonds, customs bonds and similar undertakings).

 

The Letters of Credit will, at the request of
the applicable Borrower, be issued in currencies other than those expressly
provided for in this Agreement so long as the applicable Agent is reasonably
satisfied that such currency is readily available in the required amounts and
that such currency selection is not otherwise disadvantageous to any Agent or
any Lender.  Upon the date of the
issuance of a Letter of Credit (or, in the case of the Existing Letters of
Credit, on the Effective Date), the applicable Issuer shall be deemed, without
further action by any party hereto, to have sold to each U.S. Lender, Canadian
Lender, Singapore Lender or U.K. Lender, as the case may be, and each such U.S.
Lender, Canadian Lender, Singapore Lender or U.K. Lender, as the case may be,
shall be deemed, without further action by any party hereto, to have purchased
from the applicable Issuer, a participation, to the extent of such Lender’s
Commitment Percentage, in such Letter of Credit and the related Letter of
Credit Liabilities, which participation shall terminate on the earlier of the
expiration date of such Letter of Credit or the Termination Date.  No Letter of Credit shall have an expiration
date after the earlier of (x) the date which is twenty-six (26) months after
the date of issuance of such Letter of Credit or (y) the date which is one  year after the Revolving Loan Maturity Date.  Any Letter of Credit that shall have an
expiration date after the Revolving Loan Maturity Date shall be subject to
Cover, such Cover to be delivered to the applicable Agent on the date of
issuance of such Letter of Credit.  Wells
Fargo or, with the prior approval of U.S. Borrower and the applicable U.S.
Lender, another U.S. Lender shall be the Issuer of any U.S. Letter of Credit;
HSBC Canada or, with the prior approval of the applicable Canadian Borrower and
the applicable Canadian Lender, another Canadian Lender shall be the Issuer of
any Canadian Letter of Credit, HSBC Singapore or, with the prior approval of
Singapore Borrower and the applicable Singapore Lender, another Singapore
Lender shall be the Issuer of any Singapore Letter of Credit, and HSBC U.K. or,
with

 

35

 

the prior approval of U.K. Borrower and the
applicable U.K. Lender, another U.K. Lender shall be the Issuer of any U.K.
Letter of Credit.  Except as provided
above, all U.S. Letters of Credit, Singapore Letters of Credit and U.K. Letters
of Credit shall be denominated in Dollars and all Canadian Letters of Credit
shall, at the option of the applicable Canadian Borrower, be denominated in
either Dollars or Canadian Dollars.

 

(b)           Additional
Provisions.  The following additional
provisions shall apply to each Letter of Credit:

 

(i)            The applicable Borrower shall give
the appropriate Agent notice (with a copy to U.S. Agent) requesting each
issuance of a Letter of Credit hereunder as provided in Section 4.4
hereof and shall furnish such additional information regarding such transaction
as such Agent may reasonably request. 
Upon receipt of such notice, such Agent shall promptly notify each
applicable Lender of the contents thereof and of such Lender’s Commitment
Percentage of the amount of such proposed Letter of Credit.

 

(ii)           No U.S. Letter of Credit may be
issued if after giving effect thereto the sum of (A) the aggregate outstanding
principal amount of U.S. Revolving Loans plus (B) the aggregate Letter of
Credit Liabilities relating to U.S. Letters of Credit would exceed the Maximum
U.S. Available Amount.  No Canadian  Letter of Credit may be issued if after
giving effect thereto the sum of, without duplication, (A) the aggregate
outstanding principal amount of Canadian Revolving Loans plus (B) the aggregate
Letter of Credit Liabilities relating to Canadian Letters of Credit plus (C)
the aggregate Bankers’ Acceptance Liabilities would exceed the Maximum
Canadian  Available Amount.  No Singapore Letter of Credit may be issued
if after giving effect thereto the sum of (A) the aggregate outstanding
principal amount of Singapore Revolving Loans plus (B) the aggregate Letter of
Credit Liabilities relating to Singapore Letters of Credit would exceed the Maximum
Singapore Available Amount.  No U.K.
Letter of Credit may be issued if after giving effect thereto the sum of (A)
the aggregate outstanding principal amount of U.K. Revolving Loans plus (B) the
aggregate Letter of Credit Liabilities relating to U.K. Letters of Credit would
exceed the Maximum U.K. Available Amount. 
On each day during the period commencing with the issuance of any Letter
of Credit and until such Letter of Credit shall have expired or been terminated,
the applicable Commitment of each applicable Lender shall be deemed to be
utilized for all purposes hereof, including Section 2.5(a), in an amount
equal to such Lender’s Commitment Percentage of the amount then available for
drawings under such Letter of Credit (or any unreimbursed drawings under such
Letter of Credit).

 

(iii)          Upon receipt from the beneficiary of
any Letter of Credit of any demand for payment thereunder made in accordance
with the terms thereof, the applicable Issuer shall notify the applicable Agent
(with a copy to U.S. Agent) and thereafter the applicable Agent shall, not
later than the end of the Business Day next following the date of receipt of
such notice, notify the applicable Borrower and each applicable Lender as to
the amount to be paid as a result of such demand and the payment date
therefor.  If at any time prior to the
earlier of the expiration date of a Letter of Credit or the Termination Date
any applicable Issuer shall have made a payment to a beneficiary of a Letter of
Credit in respect of a drawing under such Letter of Credit, each applicable
Lender will 

 

36

 

pay to the applicable Agent immediately upon
demand by such Agent at any time during the period commencing after such
payment until reimbursement thereof in full by the applicable Borrower, an
amount equal to such Lender’s Commitment Percentage of such payment, together
with interest on such amount for each day from the date of demand for such
payment (or, if such demand is made after (i) 11:00 a.m. Houston, Texas time
(in the case of a U.S. Letter of Credit), (ii) 
12:00 noon Calgary, Alberta time (in the case of a Canadian Letter of
Credit), (iii) 11:00 a.m. Singapore time (in the case of a Singapore Letter of
Credit) or (iv) 11:00 a.m. London, United Kingdom time (in the case of a U.K.
Letter of Credit) on such date, from the next succeeding Business Day) to the
date of payment by such Lender of such amount at a rate of interest per annum
equal to (i) in respect of U.S. Letters of Credit, Singapore Letters of Credit
or U.K. Letters of Credit, the Federal Funds Rate, (ii) in respect of Canadian
Letters of Credit which are denominated in Dollars, the Base Rate plus two
percent (2%) and (iii) in respect of Canadian Letters of Credit which are
denominated in Canadian Dollars, the Canadian Prime Rate plus two percent
(2%).  To the extent that it is
ultimately determined that the applicable Borrower is relieved of its
obligation to reimburse the applicable Issuer because of such Issuer’s breach
of its duty set forth in Section 2.2(e) or such Issuer’s gross
negligence or willful misconduct in determining that documents received under
any applicable Letter of Credit comply with the terms thereof, the applicable
Issuer shall be obligated to refund to the paying Lenders all amounts paid to
such Issuer to reimburse such Issuer for the applicable drawing under such
Letter of Credit, together with interest from the date of payment by such
Lender to the date of repayment by the Issuing Bank at the interest rates set
forth above applicable to such Lenders.

 

(iv)          Subject to Section 2.2(e), the
applicable Borrower shall be irrevocably and unconditionally obligated
forthwith to reimburse the appropriate Agent, on the date on which such Agent
notifies the applicable Borrower of the date and amount of any payment by the
applicable Issuer of any drawing or payment made under a Letter of Credit, for
the amount paid by such Issuer upon such drawing or payment, without
presentment, demand, protest or other formalities of any kind, all of which are
hereby waived.  Such reimbursement may,
subject to satisfaction of the conditions in Sections 5.1 and 5.2
hereof, the limitations on size contained in Section 2.1 and to the
Maximum U.S. Available Amount, Maximum Canadian Available Amount, Maximum
Singapore Available Amount or Maximum U.K. Available Amount, as the case may be
(after adjustment in the same to reflect the elimination of the corresponding
Letter of Credit Liability), be made by the borrowing of Loans or, in the case
of the Canadian Borrowers, by the issuance, acceptance and purchase of Bankers’
Acceptances.  The applicable Agent will
pay to each applicable Lender such Lender’s Commitment Percentage of all
amounts received from the applicable Borrower 
for application in payment, in whole or in part, of the Reimbursement
Obligation in respect of any Letter of Credit, but only to the extent such
Lender has made payment to the applicable Agent in respect of such Letter of
Credit pursuant to clause (iii) above. 
To the extent such applicable Agent does not pay such Lender within the
timeframes which are applicable to such Lenders in clause (iii) above,
such applicable Agent shall pay interest to such Lenders at the interest rates
set forth in clause (iii) above applicable to such Lenders for such
period of delay.

 

37

 

(v)           The applicable Borrower will pay to
the appropriate Agent at the Principal Office of such Agent for the account of
each applicable Lender a letter of credit fee with respect to each Letter of
Credit that has been issued under the relevant facility equal to the Margin
Percentage then in effect with respect to LIBOR Borrowings multiplied by the
daily average amount available for drawings under each Letter of Credit (and
computed on the basis of the actual number of days elapsed in a year composed
of 360 days), in each case for the period from and including the date of
issuance of such Letter of Credit to and including the date of expiration or
termination thereof, such fee to be due and payable (x) with respect to U.S.
Letters of Credit and Canadian Letters of Credit, quarterly in arrears on each
Quarterly Date and upon expiration or termination of the applicable Letter of
Credit and (y) with respect to U.K. Letters of Credit and Singapore Letters of
Credit, quarterly in advance upon the issuance of the applicable Letter of
Credit and on each three month anniversary of such issuance.  The applicable Agent will pay to each
applicable Lender, promptly after receiving any payment in respect of letter of
credit fees referred to in this clause (v), an amount equal to the
product of such Lender’s Commitment Percentage times the amount of such
fees.  In addition to and cumulative of
the above described fees, the applicable Borrower shall pay to the appropriate
Agent, for the account of the applicable Issuer, in advance on the date of the
issuance of the applicable Letter of Credit, a fronting fee in an amount equal
to the greater of (x) $500 or (y) 1/8% of the face amount of the applicable
Letter of Credit (such fronting fee to be retained by the applicable Issuer for
its own account).  Without limiting the
foregoing, the applicable Borrower agrees to pay to the appropriate Agent, for
the account of the applicable Issuer, other normal and customary fees
associated with the transfer, amendment, drawing, negotiation and and/or
reissuance of Letters of Credit.  Fees
due in respect of a U.S. Letter of Credit, a Singapore Letter of Credit or a
U.K. Letter of Credit shall be payable in Dollars and fees due in respect of a
Canadian Letter of Credit shall be payable (i) in Dollars, if such Letter of
Credit is denominated in Dollars and (ii) in Canadian Dollars if such Letter of
Credit is denominated in Canadian Dollars or any other currency.

 

(vi)          The issuance by the applicable Issuer
of each Letter of Credit shall, in addition to the conditions precedent set
forth in Section 5 hereof, be subject to the conditions precedent (A)
that such Letter of Credit shall be in such form and contain such terms as
shall be reasonably satisfactory to the applicable Issuer, and (B) that the
applicable Borrower shall have executed and delivered such Applications and
other instruments and agreements relating to such Letter of Credit as the
applicable Issuer shall have reasonably requested and are not inconsistent with
the terms of this Agreement.  In the
event of a conflict between the terms of this Agreement and the terms of any
Application, the terms hereof shall control.

 

(vii)         Each Issuer will send to the applicable
Borrower and each applicable Lender and the applicable Agent, immediately upon
issuance of any Letter of Credit issued by such Issuer or any amendment
thereto, a true and correct copy of such Letter of Credit or amendment.

 

(c)           Indemnification;
Release.  Subject to Section 4.2,
the applicable Borrower hereby indemnifies and holds harmless each Agent, each
Lender and each Issuer from and against any 

 

38

 

and all claims, damages, losses, liabilities,
costs or expenses (excluding taxes, which shall be governed solely by Section
4.1, Section 11.3 and Section 11.16) which such Agent, such
Lender or such Issuer may incur (or which may be claimed against such Agent,
such Lender or such Issuer by any Person whatsoever), REGARDLESS OF WHETHER CAUSED IN WHOLE OR IN PART BY
THE NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES, in connection with
the execution and delivery of any Letter of Credit or transfer of or payment or
failure to pay under any Letter of Credit; provided that the applicable
Borrower shall not be required to indemnify or hold harmless any party seeking
indemnification for any claims, damages, losses, liabilities, costs or expenses
to the extent, but only to the extent, caused by (i) the willful misconduct or
gross negligence of the party seeking indemnification or exoneration, (ii) the
failure by the party seeking indemnification to pay under any Letter of Credit
after the presentation to it of a request required to be paid under applicable
law or (iii) the failure of an Issuer to observe at least the standard of care
set forth in Section 2.2(e).  The
applicable Borrower hereby releases, waives and discharges each Agent, each
Lender and each Issuer from any claims, causes of action, damages, losses,
liabilities, reasonable costs or expenses which may now exist or may hereafter
arise, REGARDLESS OF WHETHER CAUSED IN WHOLE
OR IN PART BY THE NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES, by
reason of or in connection with the failure of any other Agent, any other
Issuer or any other Lender to fulfill or comply with its obligations to such
Agent, such Lender or such Issuer, as the case may be, hereunder (but nothing
herein contained shall affect any rights the applicable Borrower  may have against such defaulting party or may
have in respect of gross negligence or willful misconduct).  Nothing in this Section 2.2(c) is
intended to limit the obligations of any Borrower  under any other provision of this Agreement.

 

(d)           Additional
Costs in Respect of Letters of Credit. 
Subject to Sections 11.7 and 11.16 hereof, if there is any
Regulatory Change, and the effect of such Regulatory Change is to either (i)
impose, modify or make applicable any reserve, deposit, capital adequacy or
similar requirement against letters of credit issued by an Issuer or
participated in by a Lender or (ii) impose on any Issuer or any Lender
participating in any Letter of Credit any other condition relating, directly or
indirectly, to this Agreement or any Letter of Credit, and the result is to increase
the cost (excluding taxes, which shall be governed solely by Section 4.1,
Section 11.3 and Section 11.16) to any Lender of issuing or
maintaining any Letter of Credit or any participation therein, or materially
reduce any amount receivable (except as a result of taxes, which shall be
governed solely by Section 4.1, Section 11.3 and Section 11.16)
by any Lender hereunder in respect of any Letter of Credit or any participation
therein (which increase in cost, or reduction in amount receivable, shall be
the result of such Lender’s reasonable allocation of the aggregate of such
increases or reductions resulting from such event), then such Lender shall
notify the applicable Borrower through the appropriate Agent (which notice
shall be accompanied by a statement setting forth in reasonable detail the
basis for the determination of the amount due), and within 15 Business Days
after demand therefor by such Lender through such Agent, the applicable
Borrower shall pay to such Lender, from time to time as specified by such
Lender, such additional amounts as shall be sufficient to compensate such
Lender for such increased costs or reductions in amount.  Such statement as to such increased costs
incurred or reductions in amount receivable by such Lender, submitted by such
Lender to the applicable Borrower shall be conclusive as to the amount thereof,
absent manifest error, and may be computed using any reasonable averaging and
attribution method.  Each Lender will
notify the applicable Borrower  through
the appropriate Agent of any event occurring after the date of this 

 

39

 

Agreement which will entitle such Lender to
compensation pursuant to this Section 2.2(d) as promptly as practicable
after any executive officer of such Lender obtains knowledge thereof and
determines to request such compensation, and (if so requested by the applicable
Borrower through the appropriate Agent) will designate a different lending
office of such Lender for the issuance or maintenance of Letters of Credit by
such Lender or will take such other action as U.S. Borrower, the Canadian
Borrowers, the Singapore Borrower or the U.K. Borrower, as the case may be, may
reasonably request if such designation or action is consistent with the
internal policy of such Lender and legal and regulatory restrictions, can be
undertaken at no additional cost (or the costs of which are paid by the
applicable Borrower), will avoid the need for, or reduce the amount of, such
compensation and will not, in the sole opinion of such Lender, be
disadvantageous to such Lender  (provided
that no such U.S. Lender shall have any obligation to so designate a different
lending office which is not located in the United States of America, no such
Canadian Lender shall have any obligation to so designate a different lending
office which is not located in Canada, no such Singapore Lender shall have any
obligation to so designate a different lending office which is not located in
Singapore and no such U.K. Lender shall have any obligation to so designate a
different lending office which is not located in the United Kingdom).

 

(e)           In
honoring or dishonoring any presentation under a Letter of Credit, the
applicable Issuer agrees to observe at least the standard of practice of
financial institutions that regularly issue letters of credit.

 

(f)            Each
applicable Issuer shall give the applicable Borrower prompt notice of each
drawing under any Letter of Credit, provided that the failure to give any such
notice shall in no way affect, impair or diminish any Obligor’s obligations
hereunder.

 

2.3           Certain Provisions Relating to
Bankers’ Acceptances.

 

(a)           Subject to the terms and conditions
hereof, each Canadian Lender severally agrees to accept and purchase Bankers’
Acceptances drawn upon it by any Canadian Borrower  denominated in Canadian Dollars.  The applicable Canadian Borrower shall notify
the Canadian Agent (with a copy to U.S. Agent) by irrevocable written notice
(each a “Bankers’ Acceptance Notice”) by 12:00 noon (Calgary, Alberta
time) two (2) Business Days prior to the proposed date of any borrowing by way
of Bankers’ Acceptances.  Each borrowing
by way of Bankers’ Acceptances shall be in a minimum aggregate face amount of
C$100,000.00 and integral multiples of C$100,000.00 in excess thereof.  The face amount of each Bankers’ Acceptance
shall be C$100,000.00 or any integral multiple thereof.  Each Bankers’ Acceptance Notice shall be in
the form of Exhibit G.

 

(1)           Bankers’ Acceptances shall be issued
and shall mature on a Business Day.  Each
Bankers’ Acceptance shall have a term of approximately 1, 2 or 3 months or, if
available, 6 months, excluding days of grace, and shall mature on a Business
Day on or before the Revolving Loan Maturity Date and shall be in form and
substance reasonably satisfactory to each Canadian Lender.

 

(2)           Subject to Section 2.3(a)(3),
Bankers’ Acceptances shall be signed by a duly authorized officer of the
applicable Canadian Borrower or, in the alternative, the 

 

40

 

signature of such officer may be mechanically
reproduced in facsimile thereon and Bankers’ Acceptances bearing such facsimile
signature shall be binding on the applicable Canadian Borrower as if it had
been manually executed and delivered by such officer on behalf of the
applicable Canadian Borrower; notwithstanding that any person whose manual or
facsimile signature appears on any Bankers’ Acceptance may no longer be an
authorized signatory for such Canadian Borrower on the date of issuance of a
Bankers’ Acceptance, such signature shall nevertheless be valid and sufficient
for all purposes as if such authority had remained in force at the time of such
issuance and any such Bankers’ Acceptance shall be binding on such Canadian
Borrower;

 

(3)           In lieu of a Canadian Borrower
signing Bankers’ Acceptances in accordance with Section 2.3(a)(2) and,
for so long as the power of attorney in Section 2.3(a)(5) is in force
with respect to a given Canadian Lender, such Canadian Lender shall execute and
deliver Bankers’ Acceptances on behalf of a Canadian Borrower in accordance
with the provisions thereof and, for certainty, all references herein to drafts
drawn by a Canadian Borrower, Bankers’ Acceptances executed by a Canadian
Borrower or similar expressions shall be deemed to include Bankers’ Acceptances
executed in accordance with a power of attorney, unless the context otherwise
requires;

 

(4)           If and for so long as the power of
attorney referred to in Section 2.3(a)(5) is in force with respect to
each of the Canadian Lenders, it is intended that pursuant to the DBNA, all
Bankers’ Acceptances accepted by the Canadian Lenders under this Agreement will
be issued in the form of a “depository bill” (as defined in the DBNA),
deposited with a “clearing house” (as defined in the DBNA including The
Canadian Depository for Securities Ltd. or its nominee CDS & Co.).  In order to give effect to the foregoing, the
Canadian Agent will, subject to the approval of the Canadian Borrowers and the Canadian
Lenders, establish and notify the Canadian Borrowers and the Canadian Lenders
of any additional procedures, consistent with the terms of this Agreement and
the DBNA, as are reasonably necessary to accomplish such intention, including:

 

(i)                                     any instrument held by the Canadian Lenders for the purposes of
Bankers’ Acceptances will have marked prominently and legibly on its face and
within its text, at or before the time of issue, the words “This is a
depository bill subject to the Depository Bills and Notes Act (Canada)”;

 

(ii)                                  any reference to the authentication of the Bankers’ Acceptance will
be removed; and

 

(iii)                               any reference to the “bearer” will be removed and such Bankers’
Acceptances will not be marked with any words prohibiting negotiation, transfer
or assignment of it or of an interest in it.

 

(5)           To facilitate the issuance and
acceptance of Bankers’ Acceptances under this Agreement, each of the Canadian
Borrowers hereby appoints each Canadian Lender, acting by any authorized
signatory of such Lender, as its attorney:

 

41

 

(i)                                     to sign for and on behalf and in the name of such Canadian Borrower
as drawer, drafts in such Canadian Lender’s standard form which are depository
bills as defined in the DBNA, payable to a “clearing house” (as defined in the
DBNA) including, without limitation, The Canadian Depository For Securities
Limited or its nominee, CDS & Co. (the “clearing house”);

 

(ii)                                  for drafts which are not depository bills, to sign for and on
behalf and in the name of such Canadian Borrower as drawer and to endorse on
its behalf, Bankers’ Acceptances drawn on the Canadian Lender payable to the
order of the undersigned or payable to the order of such Canadian Lender;

 

(iii)                               to fill in the amount, date and maturity date of such Bankers’ Acceptances;
and

 

(iv)                              to deposit and/or deliver such Bankers’ Acceptances which have been
accepted by such Canadian Lender,

 

provided
that such acts in each case are to be undertaken by the Canadian Lender in
question strictly in accordance with instructions given to such Canadian Lender
by the applicable Canadian Borrower as provided in this Section. For certainty,
signatures of any authorized signatory of a Canadian Lender may be mechanically
reproduced in facsimile on Bankers’ Acceptances in accordance herewith and such
facsimile signatures shall be binding and effective as if they had been
manually executed by such authorized signatory of such Canadian Lender.  The communication in writing by the
applicable Canadian Borrower, or on behalf of the applicable Canadian Borrower
by the Canadian Agent, to the Canadian Lenders of the instructions set out in
the Bankers’ Acceptance Notice shall constitute (a) the authorization and
instruction of the applicable Canadian Borrower to the Canadian Lenders to sign
for and on behalf and in the names of the applicable Canadian Borrower as
drawer the requested Bankers’ Acceptances and to complete and/or endorse
Bankers’ Acceptances in accordance with such information as set out above and
(b) the request of the applicable Canadian Borrower to the Canadian Lenders to
accept such Bankers’ Acceptances and deposit the same with the clearing house
or deliver the same, as the case may be, in each case in accordance with this
Agreement and such instructions. The Canadian Borrowers acknowledge that a
Canadian Lender shall not be obligated to accept any such Bankers’ Acceptances
except in accordance with the provisions of this Agreement.  A Canadian Lender shall be and it is hereby
authorized to act on behalf of a Canadian Borrower upon and in compliance with
instructions communicated to that Canadian Lender as provided herein if such
Canadian Lender reasonably believes such instructions to be genuine. If a
Canadian Lender accepts Bankers’ Acceptances pursuant to any such instructions,
that Canadian Lender shall confirm particulars of such instructions and advise
the Canadian Agent that it has complied therewith by notice in writing
addressed to the Canadian Agent and served personally or sent by telecopier in
accordance with the provisions hereof. A Canadian Lender’s actions in
compliance with such instructions, confirmed and advised to the Canadian Agent
by such notice, shall be conclusively deemed to have been in accordance 

 

42

 

with
the instructions of the applicable Canadian Borrower, absent manifest
error.  This power of attorney may be
revoked by any Canadian Borrower with respect to any particular Canadian Lender
at any time upon not less than 5 Banking Days’ prior written notice served upon
the Canadian Lender in question and the Canadian Agent, provided that no such
revocation shall reduce, limit or otherwise affect the obligations of any
Canadian Borrower in respect of any Bankers’ Acceptance executed, completed,
endorsed, deposited and/or delivered in accordance herewith prior to the time
at which such revocation becomes effective.

 

(6)           If the power of attorney in Section
2.3(a)(5) is revoked with respect to any Canadian Lender, the revoking
Canadian Borrower shall, from time to time as required by the applicable
Canadian Lenders, provide to the Canadian Agent for delivery to each such
Canadian Lender drafts drawn in blank by such Canadian Borrower (pre-endorsed
and otherwise in fully negotiable form, if applicable) in quantities sufficient
for each such Canadian Lender to fulfill its obligations hereunder. Any such
pre-signed drafts which are delivered by any Canadian Borrower to the Canadian
Agent or a Canadian Lender shall be held in safekeeping by the Canadian Agent
or such Canadian Lender, as the case may be, with the same degree of care as if
they were the Canadian Agent’s or such Canadian Lender’s property, and shall
only be dealt with by the Canadian Lenders and the Canadian Agent in accordance
herewith. No Canadian Lender shall be responsible or liable for its failure to
make its share of any Bankers’ Acceptances required hereunder if the cause of
such failure is, in whole or in part, due to the failure of any Canadian
Borrower to provide such pre-signed drafts to the Canadian Agent (for delivery
to such Canadian Lender) on a timely basis.

 

(7)           Promptly following receipt of a
Bankers’ Acceptance Notice, the Canadian Agent shall so advise the Canadian
Lenders and shall advise each Canadian Lender of the face amount of each Bankers’
Acceptance to be accepted by it and the term thereof.  The aggregate face amount of Bankers’
Acceptances to be accepted by a Canadian Lender shall be determined by the
Canadian Agent by reference to the respective Canadian Commitments of the
Canadian Lenders, except that, if the face amount of a Bankers’ Acceptance,
which would otherwise be accepted by a Canadian Lender, would not be
C$100,000.00 or an integral multiple thereof, such face amount shall be
increased or reduced by the Canadian Agent in its sole and unfettered
discretion to the nearest integral multiple of C$100,000.00.

 

(8)           Each Bankers’ Acceptance to be
accepted by a Canadian Lender shall be accepted at such Canadian Lender’s
office shown on the signature pages hereof or as otherwise designated by such
Canadian Lender from time to time in writing to Canadian Borrowers.

 

(9)           On the relevant borrowing date, each
Canadian Lender severally agrees to purchase from the applicable Canadian
Borrower, at the face amount thereof discounted by the Applicable BA Discount
Rate, any Bankers’ Acceptance accepted by it and provide to the Canadian Agent,
for the account of the applicable Canadian Borrower, the BA Discount Proceeds
in respect thereof after deducting therefrom the amount of the 

 

43

 

Acceptance Fee payable by the applicable
Canadian Borrower to such Canadian Lender under Section 2.3(c) in
respect of such Bankers’ Acceptance.

 

(10)         Each Canadian Lender may at any time
and from time to time hold, sell, rediscount or otherwise dispose of any or all
Bankers’ Acceptances accepted and purchased by it.

 

(11)         The Canadian Borrowers waive
presentment for payment and any other defense to payment of any amounts due to
a Canadian Lender in respect of a Bankers’ Acceptance accepted by it pursuant
to this Agreement which might exist solely by reason of such Bankers’
Acceptance being held, at the maturity thereof, by such Canadian Lender in its
own right and the Canadian Borrowers agree not to claim any days of grace if
such Canadian Lender as holder sues the Canadian Borrowers on the Bankers’
Acceptances for payment of the amount payable by the Canadian Borrowers
thereunder.

 

(b)           With
respect to each Bankers’ Acceptance, the applicable Canadian Borrower, prior to
the occurrence and continuation of a Default, may give irrevocable telephone or
written notice (or such other method of notification as may be agreed upon
between the Canadian Agent and the Canadian Borrowers) to the Canadian Agent at
or before 12:00 noon (Calgary, Alberta time) two (2) Business Days prior to the
maturity date of such Bankers’ Acceptance followed by written confirmation
electronically transmitted to the Canadian Agent on the same day, of such
Canadian Borrower’s intention to issue one or more Bankers’ Acceptance on such
maturity date (each a “Refunding Bankers’ Acceptance”) to provide for
the payment of such maturing Bankers’ Acceptance (it being understood that
payments by the Canadian Borrowers and fundings by the Canadian Lenders in
respect of each maturing Bankers’ Acceptance and each related Refunding Bankers’
Acceptance shall be made on a net basis reflecting the difference between the
face amount of such maturing Bankers’ Acceptance and the BA Discount Proceeds
(net of the applicable Acceptance Fee) of such Refunding Bankers’
Acceptance).  Any funding on account of
any maturing Bankers’ Acceptance must be made at or before 12:00 noon (Calgary,
Alberta time) on the maturity date of such Bankers’ Acceptance.  If the applicable Canadian Borrower fails to
give such notice and the Canadian Borrowers do not otherwise pay to the
Canadian Agent all Bankers’ Acceptance Liabilities on the maturity date of any
such Bankers’ Acceptance, then subject to satisfaction of the conditions in Section
5 hereof and to the Maximum Canadian Available Amount, the applicable
Canadian Borrower shall be irrevocably deemed to have requested and to have
been advanced a Canadian Prime Loan in the face amount of such maturing Bankers’
Acceptance on the maturity date of such Bankers’ Acceptance from the Canadian
Lender which accepted such maturing Bankers’ Acceptance, which Canadian Prime
Loan shall thereafter bear interest as such in accordance with the provisions
hereof until paid in full.

 

(c)           An
Acceptance Fee shall be payable by the applicable Canadian Borrower to each
Canadian Lender in advance (in the manner specified in Section 2.3(a)(6))
in respect of, and as a condition precedent to the acceptance by such Canadian
Lender of, a Bankers’ Acceptance to be accepted by such Canadian Lender
calculated at the rate per annum equal to the Margin Percentage applicable to
LIBOR Borrowings, calculated on the face amount of such Bankers’ Acceptance and
computed on the basis of the number of days in the term of such Bankers’ Acceptance
and a year of 365 days.

 

44

 

2.4           Terminations, Reductions or
Reallocations of Commitments.

 

(a)           Mandatory.  On the Termination Date, all Commitments
shall be terminated in their entirety.

 

(b)           Optional
Termination or Reduction.  Each
applicable Borrower shall have the right to terminate or reduce the unused
portion of the applicable Commitments  at
any time or from time to time, provided that (i) the applicable Borrower
shall give notice of each such termination or reduction to the appropriate
Agent (with a copy to U.S. Agent) as provided in Section 4.4 hereof and
(ii) each such partial reduction shall be in an integral multiple of
$1,000,000.  Notwithstanding the
foregoing, U.S. Borrower may not reduce the U.S. Commitments below the then
outstanding principal balance of the U.S. Obligations, Canadian Borrowers may
not reduce the Canadian Commitments below the then outstanding principal
balance of the Canadian Obligations, Singapore Borrower may not reduce the
Singapore Commitments below the then outstanding principal balance of the
Singapore Obligations and U.K. Borrower may not reduce the U.K. Commitments
below the then outstanding principal balance of the U.K. Obligations.  No termination or reduction of the
Commitments pursuant to this provision may be reinstated without the prior
written approval of Agents and the Lenders.

 

(c)           Optional
Increase.  At any time prior to the
Revolving Loan Maturity Date, and so long as no Default or Event of Default shall
have occurred which is continuing, U.S. Borrower shall have the right to
increase the U.S. Commitments by an amount not exceeding $100,000,000, in the
aggregate, provided that (i) the U.S. Borrower shall give notice of each such
increase to the U.S. Agent as provided in Section 4.4 hereof, (ii) no
Lender shall be required to increase its U.S. Commitment unless it shall have
expressly agreed to such increase in writing (but otherwise, no notice to or
consent by any Lender shall be required, notwithstanding anything to the
contrary set forth in Section 11.5 hereof), (iii) the addition of new
U.S. Lenders shall be subject to the terms and provisions of Section 11.6
hereof as if such new U.S. Lenders were acquiring an interest in the U.S.
Revolving Loans by assignment from an existing U.S. Lenders (to the extent
applicable, i.e. required approvals, minimum amounts, execution of new U.S.
Revolving Notes and the like), (iv) the U.S. Borrower shall execute and deliver
such additional or replacement U.S. Revolving Notes and such other
documentation (including evidence of proper authorization) as may be reasonably
requested by the U.S. Agent, any new U.S. Lender or any U.S. Lender which is
increasing its Commitment and (v) each such increase shall be in an aggregate
amount of at least $5,000,000.  If the
U.S. Borrower shall terminate or reduce the U.S. Commitments pursuant to Section
2.4(b) hereof, it shall have no further right to increase the U.S.
Commitments pursuant to this Section. 
U.S. Borrower shall be required to pay (or to reimburse each applicable
U.S. Lender for) any breakage costs incurred by any U.S. Lender in connection
with the need to reallocate existing U.S. Revolving Loans among the U.S.
Lenders following any increase in the U.S. Commitments pursuant to this
provision.

 

(d)           Reallocations.  Subject to agreement by the Borrowers, any
Lender may reallocate its existing U.S. Commitment, Canadian Commitment,
Singapore Commitment or U.K. Commitment, as the case may be, so long as the sum
of such Commitments remains unchanged.  
Borrowers shall give written notice to the Agents of any reallocation
pursuant to this provision at least ten (10) Business Days prior to the
effective date of any such reallocation. 
No Lender shall 

 

45

 

be required to agree to any such
reallocation, but may do so at its option, in its sole discretion.  The following conditions precedent must be
satisfied prior to any such reallocation becoming effective:

 

(1)           no Default or Event of Default shall
have occurred and be continuing;

 

(2)           if, as a result of any such
reallocation, the aggregate U.S. Obligations would exceed the aggregate of all
of the U.S. Commitments, then the U.S. Borrower shall, on the effective date of
such reallocation, repay or prepay U.S. Revolving Loans  (or provide Cover for Letter of Credit
Liabilities relating to U.S. Letters of Credit) in accordance with this
Agreement in an aggregate principal amount such that, after giving effect
thereto, the aggregate U.S. Obligations shall not exceed the aggregate of all
of the U.S. Commitments;

 

(3)           if, as a result of any such
reallocation, the Canadian Obligations would exceed the aggregate of all of the
Canadian Commitments, then the Canadian Borrowers shall, on the effective date
of such reallocation,  repay or prepay
Canadian Revolving Loans  (or provide
Cover for Letter of Credit Liabilities relating to Canadian Letters of Credit
or for Bankers’ Acceptance Liabilities) in accordance with this Agreement in an
aggregate principal amount such that, after giving effect thereto, the Canadian
Obligations shall not exceed the aggregate of all of the Canadian Commitments;

 

(4)           if, as a result of any such
reallocation, the U.K. Obligations would exceed the aggregate of all of the U.K.
Commitments, then the U.K. Borrower shall, on the effective date of such
reallocation,  repay or prepay U.K.
Revolving Loans  (or provide Cover for
Letter of Credit Liabilities relating to U.K. Letters of Credit) in accordance
with this Agreement in an aggregate principal amount such that, after giving
effect thereto, the U.K. Obligations shall not exceed the aggregate of all of
the U.K. Commitments;

 

(5)           if, as a result of any such
reallocation, the Singapore Obligations would exceed the aggregate of all of
the Singapore Commitments, then the Singapore Borrower shall, on the effective
date of such reallocation,  repay or
prepay Singapore Revolving Loans  (or
provide Cover for Letter of Credit Liabilities relating to Singapore Letters of
Credit) in accordance with this Agreement in an aggregate principal amount such
that, after giving effect thereto, the Singapore Obligations shall not exceed
the aggregate of all of the Singapore Commitments;

 

(6)           Borrowers shall have paid any amounts
(or shall have provided Cover) due under Sections 2.9(c) or (d)
hereof on the date of such reallocation;

 

(7)           the Maximum Canadian Available Amount
shall be adjusted to equal the sum of all of the Canadian Commitments after
giving effect to such reallocation, the Maximum U.K. Available Amount shall be
adjusted to equal the sum of all of the U.K. Commitments after giving effect to
such reallocation, the Maximum Singapore Available Amount shall be adjusted to
equal the sum of all of the Singapore 
Commitments after giving effect to such reallocation and the Maximum
U.S. Available Amount shall be 

 

46

 

adjusted to equal the sum of all of the U.S.
Commitments after giving effect to such reallocation;

 

(8)           participations by the Lenders in the
outstanding Letters of Credit and the Letter of Credit Liabilities and the
outstanding Loans of the Lenders shall be adjusted to give effect to such
reallocation; provided, however, that in lieu of requiring any
prepayment of any Bankers’ Acceptances in order to make appropriate adjustments
to give effect to such reallocations, Canadian Borrowers shall be required to
provide additional Cover for any applicable portion of the Bankers’ Acceptance
Liabilities that needs to be so reallocated;

 

(9)           each Lender whose Commitment shall be
the subject of any reallocation shall have received from the Borrowers such fee
as may be agreed upon in writing between such Lender and the Borrowers;

 

(10)         to the extent applicable, each Lender
whose Commitment shall be the subject of any reallocation shall have furnished
to Borrowers and the appropriate Agents the documentation set forth in Section
4.1(i), demonstrating such Lender’s entitlement to an exemption or
reduction from withholding Tax; and

 

(11)         after giving effect to any such
reallocation, the aggregate Canadian Commitments shall not exceed $40,000,000,
the aggregate Singapore Commitments shall not exceed $20,000,000 and the
aggregate U.K. Commitments shall not exceed $20,000,000.

 

2.5           Commitment Fees.

 

(a)           U.S. Borrower shall pay to U.S. Agent
for the account of each U.S. Lender, Canadian Borrowers shall pay to Canadian
Agent for the account of each Canadian Lender, Singapore Borrower shall pay to
Singapore Agent for the account of each Singapore Lender and U.K. Borrower
shall pay to U.K. Agent for the account of each U.K. Lender, commitment fees
for the Availability Period at a rate per annum equal to the Commitment Fee
Percentage.  Such commitment fees shall
be computed (on the basis of the actual number of days elapsed in a year
composed of 360 days) on each day and shall be based on the excess of (x) the
aggregate amount of each Lender’s applicable Commitment for such day over (y)
the sum of, without duplication, (i) the aggregate unpaid principal balance (in
Dollars) of such Lender’s Loans on such day (excluding any Swing Loans to the
extent provided in Section 2.1(f) hereof) plus (ii) the aggregate
applicable Letter of Credit Liabilities as to such Lender for such day plus,
in the case of Canadian Lenders only, (iii) the aggregate Bankers’ Acceptance
Liabilities outstanding on such day. 
Accrued commitment fees shall be payable in arrears on the Quarterly
Dates prior to the Termination Date and on the Termination Date, with any
Canadian Obligations denominated in Canadian Dollars converted to Dollars at
the Exchange Rate on each such date for the purposes of each such calculation.

 

(b)           All
past due fees payable under this Section shall bear interest at the Past Due
Rate.

 

47

 

2.6           Several
Obligations.  The failure of any
Lender to make any Loan to be made by it or to accept and purchase any Bankers’
Acceptance required to be so accepted and purchased by it on the date specified
therefor shall not relieve any other Lender of its obligation to make its Loan
or to accept and purchase its Bankers’ Acceptance on such date, but neither any
Agent nor any Lender shall be responsible or liable for the failure of any
other Lender to make a Loan or to accept and purchase any Bankers’ Acceptance
or to participate in, or co-issue, any Letter of Credit.  Notwithstanding anything contained herein to
the contrary, (i) if a U.S. Lender fails to make a U.S. Revolving Loan as and
when required hereunder, then upon each subsequent event which would otherwise
result in payments of principal being made to the defaulting U.S. Lender, the
amount which would have been paid to the defaulting U.S. Lender shall be
divided among the non-defaulting U.S. Lenders ratably according to their
respective Commitment Percentages until the Obligations of each U.S. Lender
(including the defaulting U.S. Lender) are equal to such U.S. Lender’s
Commitment Percentage of the total U.S. Obligations, (ii) if a Canadian Lender
fails to make a Canadian Revolving Loan or accept and purchase any Bankers’
Acceptance as and when required hereunder, then upon each subsequent event
which would otherwise result in payments of principal being made to the
defaulting Canadian Lender, the amount which would have been paid to the defaulting
Canadian Lender shall be divided among the non-defaulting Canadian Lenders
ratably according to their respective Commitment Percentages until the
Obligations of each Canadian Lender (including the defaulting Canadian Lender)
are equal to such Canadian Lender’s Commitment Percentage of the total Canadian
Obligations, (iii) if a Singapore Lender fails to make a Singapore Revolving
Loan as and when required hereunder, then upon each subsequent event which
would otherwise result in payments of principal being made to the defaulting
Singapore Lender, the amount which would have been paid to the defaulting
Singapore Lender shall be divided among the non-defaulting Singapore Lenders
ratably according to their respective Commitment Percentages until the Obligations
of each Singapore Lender (including the defaulting Singapore Lender) are equal
to such Singapore  Lender’s Commitment
Percentage of the total Singapore Obligations and (iv) if a U.K. Lender fails
to make a U.K. Revolving Loan as and when required hereunder, then upon each
subsequent event which would otherwise result in payments of principal being
made to the defaulting U.K. Lender, the amount which would have been paid to
the defaulting U.K. Lender shall be divided among the non-defaulting U.K. Lenders
ratably according to their respective Commitment Percentages until the
Obligations of each U.K. Lender (including the defaulting U.K. Lender) are
equal to such U.K. Lender’s Commitment Percentage of the total U.K.
Obligations.

 

2.7           Notes.  The U.S. Revolving Loans made by each U.S.
Lender (other than the Swing Loans) shall be evidenced by a single U.S.
Revolving Note of U.S. Borrower in substantially the form of Exhibit D
hereto payable to the order of such U.S. Lender in a principal amount equal to the
U.S. Commitment of such U.S. Lender, and otherwise duly completed.  The Canadian Revolving Loans made by each
Canadian Lender which are denominated in Dollars shall be evidenced by a single
Canadian Revolving Note of Canadian Borrowers in substantially the form of Exhibit
C hereto payable to the order of such Canadian Lender in a principal amount
equal to the Canadian Commitment of such Canadian  Lender, and otherwise duly completed.  The Canadian Prime Loans made by each
Canadian Lender shall be evidenced by a single Canadian Dollar Revolving Note
of Canadian Borrowers in substantially the form of Exhibit H hereto
payable to the order of such Canadian Lender in a principal amount equal to two
times the Canadian Commitment of such Canadian 
Lender, and otherwise duly completed. 
The U.K. 

 

48

 

Revolving Loans made by each U.K. Lender
shall be evidenced by a single U.K. Revolving Note of U.K. Borrower in
substantially the form of Exhibit I hereto payable to the order of such
U.K. Lender in a principal amount equal to the U.K. Commitment of such U.K.
Lender, and otherwise duly completed. 
The Singapore Revolving Loans made by each Singapore Lender shall be
evidenced by a single Singapore Revolving Note of Singapore Borrower in
substantially the form of Exhibit K hereto payable to the order of such
Singapore Lender in a principal amount equal to the Singapore  Commitment of such Singapore  Lender, and otherwise duly completed.  The promissory notes described in this
Section are each, together with all renewals, extensions, modifications and
replacements thereof and substitutions therefor, called a “Note” and
collectively called the “Notes”. 
Each Lender is hereby authorized by each Borrower to endorse on the
schedule (or a continuation thereof) that may be attached to each Note of such
Lender, to the extent applicable, the date, amount, type of and the applicable
period of interest for each Loan made by such Lender to the applicable Borrower
hereunder, and the amount of each payment or prepayment of principal of such
Loan received by such Lender, provided, that any failure by such Lender to make
any such endorsement shall not affect the obligations of any Borrower under
such Note or hereunder in respect of such Loan. 
Swing Loans shall be evidenced by the Swing Note.  The Swing Note, and all renewals, extensions,
modifications and replacements thereof and substitutions therefor, shall constitute
one of the “Notes” hereunder.

 

2.8           Use
of Proceeds.  The proceeds of the
Loans, of the Letters of Credit and of the acceptance and purchase of Bankers’
Acceptances shall be used by the Borrowers to refinance existing Borrowed Money
Indebtedness of the Borrowers and for acquisitions, capital expenditures and
other working capital and general corporate purposes.  Neither any Agent nor any Lender shall have
any responsibility as to the use of any proceeds of the Loans or of the
acceptance and purchase of Bankers’ Acceptances.

 

2.9           Currency Fluctuations.

 

(a)           Not later than 1:00 p.m. (Houston,
Texas time) on each Calculation Date, the U.S. Agent shall determine the
Exchange Rate applicable to Canadian Dollars as of such Calculation Date.  For purposes of this Section, the Exchange
Rate so determined shall become effective on the first Business Day immediately
following the relevant Calculation Date (a “Reset Date”).

 

(b)           Not
later than 4:00 p.m. (Houston, Texas time) on each Reset Date, the U.S. Agent
shall consult with the other Agents and the Agents shall determine the
aggregate Canadian Obligations, the aggregate U.S. Obligations, the aggregate
Singapore Obligations and the aggregate U.K. Obligations.

 

(c)           If,
on any Reset Date, the sum of the aggregate Obligations exceeds the aggregate
of all of the Commitments, then (i) the Agents shall give notice thereof to the
Lenders and Borrowers and (ii) the Borrowers shall within two (2) Business Days
thereafter, repay or prepay Loans (or provide Cover for Letter of Credit
Liabilities or Bankers’ Acceptance Liabilities) in accordance with this
Agreement in an aggregate principal amount sufficient to reduce the sum of the
aggregate Obligations to the aggregate of all of the Commitments.

 

(d)           If,
on any day prior to the Termination Date, the Canadian Obligations exceed the
aggregate of all of the Canadian Commitments, then (i) the Canadian Agent shall
give notice 

 

49

 

thereof to the Canadian Borrowers and the
Canadian Lenders and (ii) within two (2) Business Days thereafter, the Canadian
Borrowers shall repay or prepay Canadian Revolving Loans  (or provide Cover for Letter of Credit
Liabilities relating to Canadian Letters of Credit or Bankers’ Acceptance
Liabilities) in accordance with this Agreement in an aggregate principal amount
such that, after giving effect thereto, the Canadian Obligations shall not
exceed the aggregate of all of the Canadian Commitments.

 

3.             Borrowings,
Prepayments and Interest Options.

 

3.1           Borrowings.  The applicable Borrower shall give the
applicable Agent (with a copy to U.S. Agent) notice of each borrowing (other
than a borrowing of Swing Loans as to which the last sentence of this Section
3.1 shall apply) to be made hereunder as provided in Section 4.4
hereof and the applicable Agent shall promptly notify each applicable Lender of
such request.  Not later than (i) 2:00
p.m. Houston, Texas time (in the case of U.S. Revolving Loans which are same
day fundings), (ii) 11:00 a.m. Houston, Texas time (in the case of U.S.
Revolving Loans which are not same day fundings), (iii) 11:00 a.m. Calgary,
Alberta time (in the case of Canadian Revolving Loans and Bankers’
Acceptances), (iv) 11:00 a.m. Singapore time (in the case of Singapore
Revolving Loans, or (v) 11:00 a.m. London, United Kingdom time (in the case of
U.K. Revolving Loans) on the date specified for each such borrowing hereunder,
each applicable Lender shall make available the amount of the Loan, if any, to
be made by it on such date and/or the proceeds of the acceptance and purchase
of any Bankers’ Acceptances, if any, to be so accepted and purchased by it on
such date to the applicable Agent at its Principal Office, in immediately
available funds, for the account of the applicable Borrower.  Such amounts received by the applicable Agent
will be held in an account maintained by the applicable Borrower with the
applicable Agent.  The amounts so
received by the applicable Agent shall, subject to the terms and conditions of
this Agreement, be made available to the applicable Borrower by wiring or
otherwise transferring, in immediately available funds, such amount to an
account designated by the applicable Borrower and approved by the applicable
Agent (such approval not to be unreasonably withheld).  U.S. Borrower shall give U.S. Agent notice of
each borrowing of a Swing Loan to be made hereunder as provided in Section
4.3 hereof and, no later than 11:00 a.m. Houston time on the date specified
for such borrowing hereunder, Wells Fargo shall make available the amount of
such Swing Loan to U.S. Borrower by depositing the same, in immediately
available funds, in an account designated by U.S. Borrower and approved by U.S.
Agent (such approval not to be unreasonably withheld).

 

50

 

3.2           Prepayments.

 

(a)           Optional Prepayments.  Except as provided in Section 3.3
hereof, each Borrower shall have the right to prepay, on any Business Day, in
whole or in part, without the payment of any premium, penalty or fee, any of
the Obligations (other than Obligations relating to Bankers’ Acceptances) at any
time or from time to time, provided that the applicable Borrower shall
give the applicable Agent notice of each such prepayment as provided in Section
4.4 hereof.  Each optional prepayment
shall be in an amount equal to $200,000 (in respect of Loans denominated in
Dollars) or C$200,000 (in respect of Loans denominated in Canadian Dollars) or
an integral multiple of $100,000 (in respect of Loans denominated in Dollars)
or C$100,000 (in respect of Loans denominated in Canadian Dollars) in excess
thereof.  Bankers’ Acceptances may not be
prepaid.

 

(b)           Interest
Payments.  Accrued and unpaid
interest on the unpaid principal balance of the Loans shall be due and payable
on the Interest Payment Dates.

 

(c)           Payments
and Interest on Reimbursement Obligations. 
Each Borrower will pay to the applicable Agent for the account of each
applicable Lender the amount of each Reimbursement Obligation owed by such
Borrower to such Lenders.  Such payment
shall be due on the date on which the applicable Agent notifies the applicable
Borrower of the date and amount of the applicable payment by an Issuer of any
drawing under a Letter of Credit or on the date of maturity of any Bankers’
Acceptance.  The amount of any
Reimbursement Obligation may, if the applicable conditions precedent specified
in Sections 5.1 and 5.2 hereof have been satisfied, be paid with
the proceeds of Loans or, in the case of Canadian Obligations, of the
acceptance and purchase or Bankers’ Acceptances.  Subject to Section 11.7 hereof, each
Borrower will pay to the applicable Agent for the account of each applicable
Lender interest on any Reimbursement Obligation (i) at the applicable Base Rate
(with respect to Reimbursement Obligations denominated in Dollars) or at the
Canadian Prime Rate (with respect to Reimbursement Obligations denominated in
Canadian Dollars) plus the applicable Margin Percentage from the date such
Reimbursement Obligation arises until the date five (5) Business Days
thereafter and (ii) at the applicable Past Due Rate thereafter until the same
is paid in full.

 

(d)           Mandatory
Payment of Swing Loans.  The unpaid
principal balance of the Swing Loans shall be due and payable on the fifteenth
(15th) day of each calendar month.

 

3.3           Interest Options

 

(a)           Options Available.  The outstanding principal balance of the
Canadian Dollar Revolving Notes shall bear interest at the Canadian Prime Rate
plus the applicable Margin Percentage and the outstanding principal balance of
the other Notes (including, without limitation, the Swing Note) shall bear interest
at the applicable Base Rate; provided, that (1) all past due
amounts, both principal and accrued interest, shall bear interest at the Past
Due Rate, and (2) subject to the provisions hereof, each Borrower shall
have the option of having all or any portion of the principal balances of its
Notes (other than the Canadian Dollar Revolving Notes and the Swing Note) from
time to time outstanding bear interest at a Eurodollar Rate.  The records of Agents with respect to Interest
Options, Interest Periods and the amounts of Loans to which they are applicable
shall be binding and conclusive, absent manifest error.  Interest on the 

 

51

 

amount of each advance against the Notes
shall be computed on the amount of that advance 
from the date it is made. 
Notwithstanding anything in this Agreement to the contrary, for the full
term of the Notes the interest rate produced by the aggregate of all sums paid
or agreed to be paid to the holders of the Notes for the use, forbearance or
detention of the debt evidenced thereby (including all interest on the Notes at
the Stated Rate plus the Additional Interest) shall not exceed the Ceiling
Rate.

 

(b)           Designation
and Conversion.  Each Borrower shall
have the right to designate or convert its Interest Options in accordance with
the provisions hereof.  Provided
no Event of Default has occurred and is continuing and subject to the last
sentence of Section 3.3(a) and the provisions of Sections 3.3(c),
(d), (e) and (f), each Borrower may elect to have a Eurodollar Rate
apply or continue to apply to all or any portion of the outstanding principal
balance of its Notes (other than the Canadian Dollar Revolving Notes and the
Swing Note).  Each change in Interest
Options shall be a conversion of the rate of interest applicable to the
specified portion of the Loans, but such conversion shall not change the
respective outstanding principal balances of the applicable Notes.  The Interest Options shall be designated or
converted in the manner provided below:

 

(i)                                     The applicable Borrower shall give the applicable Agent telephonic
notice, promptly confirmed by a Rate Designation Notice (and the applicable
Agent shall promptly inform each applicable Lender thereof).  Each such telephonic and written notice shall
specify the amount of the Loan and type (i.e. U.S. Revolving Loan, Canadian
Revolving Loan, Singapore Revolving Loan or U.K. Revolving Loan) which is the
subject of the designation, if any; the amount of borrowings which are to be
converted or for which an Interest Option is designated; the proposed date for
the designation or conversion and the Interest Period or Periods, if any,
selected by the applicable Borrower. 
Such telephonic notice shall be irrevocable and shall be given to the
applicable Agent no later than the applicable Rate Designation Date.

 

(ii)                                  No more than four (4) LIBOR Borrowings shall be in effect with
respect to the U.S. Revolving Loans at any time, no more than four (4) LIBOR
Borrowings shall be in effect with respect to the Canadian Revolving Loans at
any time, no more than four (4) LIBOR Borrowings shall be in effect with
respect to the Singapore Revolving Loans at any time and no more than four (4)
LIBOR Borrowings shall be in effect with respect to the U.K. Revolving Loans at
any time.   No single LIBOR Borrowing may
include any combination of any two or more of U.S. Revolving Loans, Canadian
Revolving Loans, Singapore Revolving Loans and U.K. Revolving Loans.

 

(iii)                               Each designation or conversion of a LIBOR Borrowing shall occur on
a Business Day.

 

(iv)                              Except as provided in Sections 3.3(c), (d) and (e)
hereof, no LIBOR Borrowing may be converted to a Base Rate Borrowing or another
LIBOR Borrowing on any day other than the last day of the applicable Interest
Period.

 

52

 

(v)                                 Each request for a LIBOR Borrowing shall be in the amount equal to
$200,000 or an integral multiple of $100,000 in excess thereof.

 

(vi)                              Each designation of an Interest Option with respect to all or any
designated portion of the outstanding principal balance of the U.S. Revolving
Notes shall apply to all of the U.S. Revolving Notes ratably in accordance with
their respective outstanding principal balances.  Each designation of an Interest Option with
respect to all or any designated portion of the outstanding principal balance
of the Canadian Revolving Notes shall apply to all of the Canadian Revolving
Notes  ratably in accordance with their
respective outstanding principal balances.     Each designation of an Interest Option with
respect to all or any designated portion of the outstanding principal balance
of the Singapore Revolving Notes shall apply to all of the Singapore Revolving
Notes  ratably in accordance with their
respective outstanding principal balances.   Each designation of an
Interest Option with respect to all or any designated portion of the
outstanding principal balance of the U.K. Revolving Notes shall apply to all of
the U.K. Revolving Notes  ratably in
accordance with their respective outstanding principal balances.   If any
Lender assigns an interest in any of its Notes when any LIBOR Borrowing is
outstanding with respect thereto, then such assignee shall assume its ratable
interest in such LIBOR Borrowing.

 

(c)           Options
Unlawful.  If the adoption of any
applicable Legal Requirement after the Effective Date or any change after the
Effective Date in any applicable Legal Requirement or in the interpretation or
administration thereof by any Governmental Authority or compliance by any
Lender with any request or directive (whether or not having the force of law)
issued after the Effective Date by any central bank or other Governmental
Authority shall at any time make it unlawful or impossible for any Lender to
permit the establishment of or to maintain any LIBOR Borrowing, the commitment
of such Lender to establish such LIBOR Borrowing shall forthwith be canceled
and the applicable Borrower shall, on the last day of the Interest Period
relating to any outstanding LIBOR Borrowing (or within such earlier period as
may be required by applicable law) (1) convert the LIBOR Borrowing of such
Lender with respect to which such demand was made to a Base Rate Borrowing;
(2) pay all accrued and unpaid interest to date on the amount so
converted; and (3) pay any amounts required to compensate such Lender for
any additional cost or expense (excluding taxes, which shall be governed solely
by Section 4.1, Section 11.3 and Section 11.16) which such
Lender may incur as a result of such adoption of or change in such Legal
Requirement or in the interpretation or administration thereof and any Funding
Loss which any Lender may incur as a result of such conversion (subject to
delivery to the applicable Borrower by the applicable Lender of a statement
setting forth in reasonable detail the applicable Lender’s basis
therefor).  If, when any Agent so
notifies any Borrower, such Borrower has given a Rate Designation Notice
specifying a LIBOR Borrowing but the selected Interest Period has not yet
begun, as to the applicable Lender such Rate Designation Notice shall be deemed
to be of no force and effect, as if never made, and the balance of the Loans
made by such Lender specified in such Rate Designation Notice shall bear
interest at the Base Rate until a different available Interest Option shall be
designated in accordance herewith.

 

(d)           Increased
Cost of Borrowings.  Subject to Sections
11.7 and 11.16 and without duplication for amounts indemnified for
under Section 4.1(f), if the adoption after the Effective 

 

53

 

Date of any applicable Legal Requirement or
any change after the Effective Date in any applicable Legal Requirement or in
the interpretation or administration thereof by any Governmental Authority or
compliance by any Lender with any request or directive (whether or not having
the force of law) issued after the Effective Date by any central bank or
Governmental Authority shall at any time as a result of any portion of the
principal balances of the Notes bearing interest on the basis of a Eurodollar
Rate:

 

(1)                                  impose, modify, increase or deem applicable any reserve requirement
(excluding that portion of any reserve requirement included in the calculation
of the applicable Eurodollar Rate), special deposit requirement or similar
requirement (including, but not limited to, state law requirements) against
assets of any Lender, or against deposits with any Lender, or against loans
made by any Lender, or against any other funds, obligations or other Property
owned or held by any Lender; or

 

(2)                                  impose on any Lender any other condition regarding any LIBOR
Borrowing;

 

and the result of any of the foregoing is to
increase the cost (excluding taxes, which shall be governed solely by Section
4.1, Section 11.3 and Section 11.16) to any Lender of
agreeing to make or of making, renewing or maintaining such LIBOR Borrowing, or
reduce the amount of principal or interest received (except as a result of
taxes, which shall be governed solely by Section 4.1, Section 11.3
and Section 11.16) by any Lender, then, within 15 Business Days after
demand by any Agent (accompanied by a statement setting forth in reasonable
detail the applicable Lender’s basis therefor), the applicable Borrower shall
pay to the applicable Agent additional amounts which shall compensate each
applicable Lender for such increased cost or reduced amount.  The reasonable, good faith determination by
any Lender of the amount of any such increased cost, increased reserve
requirement or reduced amount shall be conclusive and binding, absent manifest
error.  Each Borrower shall have the
right, if it receives from any Agent any notice referred to in this paragraph,
upon three Business Days’ notice to the applicable Agent (which shall
notify each affected Lender), either (i) to repay in full (but not in
part) any borrowing with respect to which such notice was given, together with
any accrued interest thereon, or (ii) to convert the LIBOR Borrowing which
is the subject of the notice to a Base Rate Borrowing; provided, that
any such repayment or conversion shall be accompanied by payment of
(x) the amount required to compensate each applicable Lender for the
increased cost or reduced amount referred to in the preceding paragraph;
(y) all accrued and unpaid interest to date on the amount so repaid or
converted, and (z) any Funding Loss which any applicable Lender may incur
as a result of such repayment or conversion. 
Each Lender will notify the applicable Borrower through the applicable
Agent of any event occurring after the date of this Agreement which will
entitle such Lender to compensation pursuant to this Section as promptly as
practicable after it obtains knowledge thereof and determines to request such
compensation, and (if so requested by the applicable Borrower through the
applicable Agent) will designate a different lending office of such Lender for
the applicable LIBOR Borrowing or will take such other action as the applicable
Borrower may reasonably request if such designation or action is consistent
with the internal policy of such Lender and legal and regulatory restrictions,
will avoid the need for, or reduce the amount of, such compensation and will
not, in the reasonable opinion of such Lender, be disadvantageous to such
Lender.

 

54

 

(e)                                  Inadequacy of Pricing and Rate Determination.  If, for any reason with
respect to any Interest Period, the applicable Agent (or, in the case of clause
3 below, the applicable Lender) shall have reasonably and in good faith
determined (which determination shall be conclusive and binding upon the
applicable Borrower, absent manifest error) that:

 

(1)                                  such Agent is unable through its customary general practices to
determine any applicable Eurodollar Rate, or

 

(2)                                  by reason of circumstances affecting the applicable market,
generally, such Agent is not being offered deposits in United States dollars in
such market, for the applicable Interest Period and in an amount equal to the
amount of any applicable LIBOR Borrowing requested by the applicable Borrower,
or

 

(3)                                  any applicable Eurodollar Rate will not adequately and fairly
reflect the cost to any Lender of making and maintaining such LIBOR Borrowing
hereunder for any proposed Interest Period,

 

then the applicable Agent shall give the
applicable Borrower notice thereof and thereupon, (A) any Rate Designation
Notice previously given by such Borrower designating the applicable LIBOR
Borrowing which has not commenced as of the date of such notice from such Agent
shall be deemed for all purposes hereof to be of no force and effect, as if
never given, and (B) until the applicable Agent shall notify such Borrower
that the circumstances giving rise to such notice from such Agent no longer
exist, each Rate Designation Notice requesting the applicable Eurodollar Rate shall
be deemed a request for a Base Rate Borrowing, and any applicable LIBOR
Borrowing then outstanding shall be converted, without any notice to or from
the applicable Borrower, upon the termination of the Interest Period then in
effect with respect to it, to a Base Rate Borrowing.

 

(f)                                    Funding Losses.  Each Borrower shall indemnify each applicable
Lender against and hold each applicable Lender harmless from any Funding Loss
relating to Loans to such Borrower or relating to Bankers’ Acceptances
requested by such Borrower.  Subject to Section
11.16, this indemnity shall survive the payment of the Notes.  Within 15 Business Days after demand by any
Agent (accompanied by a certificate of the applicable Lender setting forth in
reasonable detail the amount and calculation of the amount claimed as to any
Funding Losses, which shall be conclusive and binding upon the applicable
Borrower, absent manifest error), the applicable Borrower shall pay to such
Agent, for the account of such Lender, the amount of such Funding Losses.

 

(g)                                 Funding Offices; Adjustments Automatic; Calculation Year.  Any Lender may, if it so
elects, fulfill its obligation as to any LIBOR Borrowing by causing a branch or
affiliate of such Lender to make such Loan and may transfer and carry such Loan
at, to or for the account of any branch office or affiliate of such Lender; provided,
that in such event for the purposes of this Agreement, except as otherwise
provided in Sections 4.1(d) and 4.1(i), such Loan shall be deemed
to have been made by such Lender and the obligation of the applicable Borrower
to repay such Loan shall nevertheless be to such Lender and shall be deemed
held by it for the 

 

55

 

account of
such branch or affiliate.  Without notice
to any Borrower or any other Person, each rate required to be calculated or
determined under this Agreement shall automatically fluctuate upward and
downward in accordance with the provisions of this Agreement.  Interest at the Canadian Prime Rate or any
applicable Prime Rate shall be computed on the basis of the actual number of
days elapsed in a year consisting of 365 or 366 days, as the case may be.  All other interest required to be calculated
or determined under this Agreement shall be computed on the basis of the actual
number of days elapsed in a year consisting of 360 days, unless the Ceiling
Rate would thereby be exceeded, in which event, to the extent necessary to
avoid exceeding the Ceiling Rate, the applicable interest shall be computed on the
basis of the actual number of days elapsed in the applicable calendar year in
which accrued.

 

(h)                                 Funding Sources.  Notwithstanding any provision of this
Agreement to the contrary, each Lender shall be entitled to fund and maintain
its funding of all or any part of the Loans in any manner it sees fit, it being
understood, however, that for the purposes of this Agreement all determinations
hereunder shall be made as if each Lender had actually funded and maintained
each LIBOR Borrowing during each Interest Period through the purchase of
deposits having a maturity corresponding to such Interest Period and bearing an
interest rate equal to the Eurodollar Rate for such Interest Period.

 

4.                                       Payments and Tax Forms; Pro Rata Treatment; Computations, Etc.

 

4.1                                 Payments.

 

(a)                                  Except to the extent otherwise provided herein, all payments of
principal, interest, Reimbursement Obligations and other amounts to be made by
any Borrower hereunder, under the Notes and under the other Loan Documents
shall be made, without set-off or counterclaim,  (i) with respect to Bankers’ Acceptance
Liabilities and Canadian Prime Loans, in Canadian Dollars and (ii) in all other
cases, in Dollars, in immediately available funds, to the applicable Agent at
its Principal Office (or in the case of a successor U.S. Agent, at the
principal office of such successor U.S. Agent in the United States, in the case
of a successor Canadian Agent, at the principal office of such successor
Canadian Agent in Canada, in the case of a successor Singapore Agent, at the
principal office of such successor Singapore Agent in Singapore and in the case
of a successor U.K. Agent, at the principal office of such successor U.K. Agent
in the United Kingdom), not later than (w) 11:00 a.m. Houston, Texas time (in
the case of any payment by the U.S. Borrower), (x) 12:00 noon Calgary, Alberta
time (in the case of any payment by the Canadian Borrowers), (y) 11:00 a.m.
Singapore time (in the case of any payment by the Singapore Borrower), or (z)
11:00 a.m. London, United Kingdom time (in the case of any payment by the U.K.
Borrower), on the date on which such payment shall become due (each such
payment made after such time on such due date to be deemed to have been made on
the next succeeding Business Day).

 

(b)                                 Each Borrower shall, at the time of making each payment hereunder,
under any Note or under any other Loan Document, specify to the applicable
Agent the Obligations payable by such Borrower hereunder or thereunder to which
such payment is to be applied.  Each
payment received by any Agent hereunder, under any Note or under any other Loan
Document for the account of a Lender shall be paid promptly to such Lender, in
immediately available funds.  If any
Agent fails to send to any Lender the applicable amount by the close of business
on 

 

56

 

the date any such payment is received by such
Agent if such payment is received prior to (w) 11:00 a.m. Houston, Texas time
(in the case of any payment to a U.S. Lender), (x) 12:00 noon Calgary, Alberta
time (in the case of any payment to a Canadian Lender), (y) 11:00 a.m.
Singapore time (in the case of any payment to a Singapore Lender), or (z) 11:00
a.m. London, United Kingdom time (in the case of any payment to a U.K. Lender)
(or on the next succeeding Business Day with respect to payments which are
received after such time), such Agent shall pay to the applicable Lender
interest on such amount from such date at a rate of interest per annum equal to
(i) in respect of Obligations which are denominated in Dollars, the Federal
Funds Rate and (ii) in respect of Canadian Obligations which are denominated in
Canadian Dollars, the CDOR Rate. Borrowers, Lenders and Agents acknowledge and
agree that this provision and each other provision of this Agreement or any of
the other Loan Documents relating to the application of amounts in payment of
the Obligations shall be subject to the provisions of Section 4.3
regarding pro  rata application of amounts after an Event of
Default shall have occurred and be continuing.

 

(c)                                  If the due date of any payment hereunder or under any other Loan
Document falls on a day which is not a Business Day, the due date for such
payments (except as otherwise provided in clause (2) of the definition
of “Interest Period”) shall be extended to the next succeeding Business Day and
interest shall be payable for any principal so extended for the period of such
extension.

 

(d)                                 Except to the extent provided in Section 4.1(e), all
payments by any Borrower hereunder or under any of the Loan Documents shall be
made free and clear of and without withholding for or on account of any Taxes
except to the extent as may be required by law, but excluding therefrom,

 

(i)                                     in the case of any Lender or Agent that is not a United States
person (as such term is defined in Section 7701(a)(30) of the Code) (each being
referred to as a “Non-U.S. Participant”), any Tax imposed by the United
States or any state therein by means of withholding at the source on  payments by U.S. Borrower unless U.S.
Borrower has agreed in writing prior to any payment date to pay additional
amounts under Section 4.1(e) for such Tax (or a portion thereof);

 

(ii)                                  in the case of any assignee or participant described in Section
11.6 that is a Non-U.S. Participant, any Tax imposed by the United States
or any state therein by the means of withholding at the source on payments by
U.S. Borrower unless U.S. Borrower has agreed in writing prior to any payment
date to pay additional amounts under Section 4.1(e) for such Tax (or a
portion thereof);

 

(iii)                               any Tax imposed by the United Kingdom by reason of the applicable
U.K. Lender not being a Qualifying Lender unless U.K. Borrower has agreed in
writing prior to any payment date to pay additional amounts under Section
4.1(e) for such Tax (or a portion thereof);

 

(iv)                              any Tax imposed by Canada or a province or territory thereof on or
in respect of a Canadian Lender or the Canadian Agent by reason of the Canadian
Lender or Canadian Agent, as the case may be, not being a Canadian Resident
unless Canadian 

 

57

 

Borrower has
agreed in writing prior to any payment date to pay additional amounts under Section
4.1(e) for such Tax (or a portion thereof); and

 

(v)                                 any Tax imposed by Singapore on or in respect of a Singapore Lender
or the Singapore Agent by reason of the Singapore Lender or Singapore Agent, as
the case may be, not being a Singapore Resident unless Singapore Borrower has
agreed in writing prior to any payment date to pay additional amounts under Section
4.1(e) for such Tax (or a portion thereof).

 

(e)                                  If any withholding or deduction from any payment to be made to, or
for the account of, any Agent or any Lender by any Borrower hereunder or under
any other Loan Document is required in respect of any Tax pursuant to any
applicable law, rule, or regulation (except for Taxes excluded under Section
4.1(d)), then such Borrower will (i) pay to the relevant authority the full
amount required to be so withheld or deducted; (ii) to the extent available, promptly
forward to the applicable Agent an official receipt or other documentation
reasonably satisfactory to such Agent evidencing such payment to such
authority; and (iii) pay to the applicable Agent, for the account of each
affected Lender or Agent, such additional amount or amounts as are necessary to
ensure that the net amount actually received by such Lender or Agent will equal
the full amount such Lender or Agent would have received pursuant to the Loan
Documents had no such withholding or deduction been required.  Each such Lender and Agent shall furnish a
certificate to the applicable Borrower and the applicable Agent (showing in
reasonable detail the basis for determining that an additional amount is
payable) which certificate shall, in the absence of manifest error, be
conclusive and binding on each Borrower.

 

(f)                                    Subject to Section 11.16, if there is any Regulatory Change,
and the effect of such Regulatory Change is to impose, modify or make
applicable any Tax (other than Taxes excluded under Section 4.1(d)) with
respect to or measured by reference to Letters of Credit issued or to be issued
hereunder or participations in such Letters of Credit, and the result is to
increase the cost to any Lender of issuing or maintaining any Letter of Credit
or any participation therein, or materially reduce any amount receivable by any
Lender hereunder in respect of any Letter of Credit or any participation
therein, then such Lender, or its Agent, may submit an Indemnification Claim to
the applicable Borrower.  Subject to Section
11.16 and without duplication for amounts Lender is indemnified for under Section
3.3(c)(ii), if a Regulatory Change or compliance by any Lender with any
request or directive (whether or not having the force of law) issued after the
Effective Date by any central bank or Governmental Authority at any time as a
result of any portion of the principal balances of the Notes bearing interest
on the basis of a Eurodollar Rate:

 

(i)                                     subjects any Lender to any Taxes (other than Taxes excluded under Section
4.1(d)), or any deduction or withholding for any Taxes (other than Taxes
excluded under Section 4.1(d)), on or from any payment due under any
LIBOR Borrowing or other amount due hereunder, other than income and franchise
taxes of the United States or its political subdivisions or such other
jurisdiction in which the applicable Lender has its principal office or
applicable lending office; or

 

58

 

(ii)                                  changes the basis of taxation of payments due from any Borrower to
any Lender under any LIBOR Borrowing (otherwise than by a change in the rate of
taxation of the overall net income of such Lender);

 

and the result of any of the foregoing is to
increase the cost to any Lender of agreeing to make or of making, renewing or
maintaining such LIBOR Borrowing, or reduces the amount of principal or
interest received by any Lender, then such Lender, or an Agent may submit an
Indemnification Claim to the applicable Borrower.  Each Borrower shall have the right, if it
receives an Indemnification Claim, upon 3 
Business Days’ notice to the applicable Agent (which shall notify each
affected Lender), either (i) to repay in full (but not in part) any borrowing
with respect to which such notice was given, together with any accrued interest
thereon, or (ii) to convert the LIBOR Borrowing which is the subject of the
notice to a Base Rate Borrowing; provided, that any such repayment or
conversion shall be accompanied by payment of (x) the amount required to
compensate each affected Lender for the increased cost or reduced amount; (y)
all accrued and unpaid interest to date on the amount so repaid or converted,
and (z) any Funding Loss which any affected Lender may incur as a result of
such repayment or conversion.  Solely for
purposes of this Section 4.1(f), an “Indemnification Claim” shall mean a
written notice provided by a Lender, or an Agent on a Lender’s behalf, to the
applicable Borrower (i) stating the amount of indemnification sought pursuant
to this Section 4.1(f), and (ii) providing in detail the basis upon
which the amount of indemnification sought pursuant to this Section 4.1(f)
was calculated.  Within a reasonable
period of time after receiving an Indemnification Claim, the applicable
Borrower shall pay to the applicable Lender the amount specified therein.  An Indemnification Claim submitted to a
Borrower pursuant to this Section 4.1(f) shall be conclusive as to the
amount thereof, absent manifest error. 
Notwithstanding anything in this Agreement or any other Loan Document,
the obligation of Borrowers to indemnify, reimburse, or otherwise hold harmless
Lenders for taxes shall be governed solely by Section 4.1, Section
11.3 and Section 11.16 of this Agreement.

 

(g)                                 Each Lender will notify the applicable Borrower  through the appropriate Agent of any event
occurring after the date of this Agreement which will entitle such Lender to
compensation pursuant to Section 4.1(e) or Section 4.1(f) as
promptly as practicable after any executive officer of such Lender obtains
knowledge thereof and determines to request such compensation, and (if so
requested by the applicable Borrower through the appropriate Agent) will
designate a different lending office of such Lender for the issuance or
maintenance of Letters of Credit by such Lender, or for the making, funding or
maintenance of the applicable Loan by such Lender, or will take such other
action as U.S. Borrower, the Canadian Borrowers, the Singapore Borrower or the
U.K. Borrower, as the case may be, may reasonably request if such designation
or action is consistent with the internal policy of such Lender and legal and
regulatory restrictions, can be undertaken at no additional cost (or the costs
of which are paid by the applicable Borrower), will avoid the need for, or
reduce the amount of, such compensation and will not, in the sole opinion of
such Lender, be disadvantageous to such Lender 
(provided that no such U.S. Lender shall have any obligation to
so designate a different lending office which is not located in the United States
of America, no such Canadian Lender shall have any obligation to so designate a
different lending office which is not located in Canada, no such Singapore
Lender shall have any obligation to so designate a different lending office
which is not located in Singapore and no such U.K. Lender shall have any
obligation to so designate a different lending office which is not located in
the United Kingdom).

 

59

 

(h)                                 If any Borrower shall pay any additional amounts in respect of
Taxes pursuant to this Section 4.1 or Section 11.3 and any Lender
or Agent determines, in its good faith discretion, at any time thereafter that
it (A)(i) has received a refund of such Taxes, or any portion thereof, (ii) has
been allowed a credit or deduction with respect to such Taxes, or any portion
thereof, or (iii) has obtained any other Tax benefit attributable to the
payment of such Taxes, then such Lender or Agent shall as soon as is reasonably
practicable pay to such Borrower (B)(i) in the case of a refund or credit, the
amount of such refund or credit, (ii) in the case of a deduction, the amount of
deduction multiplied by the highest statutory rate of Tax imposed on the income
to which the deduction is attributable, or (iii) in the case of any other Tax
benefit, the amount equal to the Tax benefit, each such amount net of all
out-of-pocket expenses reasonably incurred by the applicable Lender or Agent to
obtain such refund, credit, deduction or other Tax benefit (and which are
attributable to, in the good faith discretion of the applicable Lender or
Agent, the refund, credit or deduction of such Taxes, or a portion thereof, or
the other Tax benefit), and without interest except for any interest paid by
the relevant Governmental Authority with respect to the refund, credit,
deduction or other Tax benefit as shall leave the applicable Lender or Agent in
the position it would have been in if no such payment in respect of Taxes had
been required; provided, however, that such Borrower agrees to repay the
amount paid over to such Borrower under this Section (plus any interest
actually paid and other related charges properly allocable to the repayment) to
the applicable Lender or Agent in the event the applicable Lender or Agent is
required to repay to the Governmental Authority the refund, credit, or amount
attributable to the other Tax benefit, or is disallowed the deduction, and
provided always that the Lenders and Agents shall not be required to disclose
any matters relating to their tax affairs.

 

(i)                                     The following additional provisions shall also apply with respect
to Taxes:

 

(i)                                     To the extent applicable, each U.S. Lender (and each of its
participants) and U.S. Agent that is a Non-U.S. Participant agrees to deliver
to U.S. Borrower and U.S. Agent on or prior to the initial borrowing date, or
in the case of a U.S. Lender or U.S. Agent that becomes a party to this
Agreement (or a participant that acquires a participation interest) on a later
date, on the date such U.S. Lender or U.S. Agent becomes a party to the
Agreement (or such participant acquires such participation interest), together
with any other certificate or statement of exemption or reduction required
under the Code, (a) two accurate and complete original signed copies of IRS
Form W-8BEN, W-8ECI or W-8IMY (or successor forms), as applicable, or (b) (x) a
certificate substantially in the form of Exhibit J (any such
certificate, a “Section 4.1(i) 
Certificate”) and (y) two accurate and complete original signed
copies of IRS Form W-8BEN (or successor form). 
In addition, each Non-U.S. Participant agrees that (i) at least ten (10)
days in advance of an expiration or lapse due to time of the previous
certification, or (ii) immediately upon becoming aware of a change in
circumstance that has or will render the previous certification obsolete or
inaccurate in any material respect, it will deliver to U.S. Borrower and U.S.
Agent two new accurate and complete original signed copies of IRS Form W-8BEN,
W-8ECI or W-8IMY (or successor forms), as applicable, or Form W-8BEN (or
successor form) and a Section 4.1(i) Certificate, as the case may be, and such
other forms as may be required in order to confirm or establish the entitlement
of such Non-U.S. Participant to a continued exemption from or reduction in
United States withholding Tax with respect to payments under this Agreement and
all 

 

60

 

Loan
Documents.  To the extent a Non-U.S.
Participant is unable to deliver the forms required under this Section, it
shall immediately notify U.S. Borrower and U.S. Agent.  Each U.S. Lender (and each of its
participants) and U.S. Agent that is a U.S. Person (as such term is defined in
Section 7701(a)(30) of the Code) and that is not a corporation for U.S. federal
income tax purposes agrees to deliver to U.S. Borrower and U.S. Agent on or
prior to the initial borrowing date, or in the case of a U.S. Lender or U.S.
Agent that becomes a party to this Agreement (or a participant that acquires a
participation interest) on a later date, on the date such U.S. Lender or U.S.
Agent becomes a party to the Agreement (or such participant acquires such
participation interest), two accurate and complete original signed copies of
IRS Form W-9 (or successor form) certifying to such Lender’s or such Agent’s
entitlement to receive payments under this Agreement and all Loan Documents
without deduction for United States backup withholding tax.

 

(ii)                                  Each Canadian Lender and the Canadian Agent shall be a Canadian
Resident.  In the event that a Canadian
Lender does not qualify as a Canadian Resident, the Canadian Lender shall
deliver to the Canadian Borrowers and the Canadian Agent on the date on which
such Canadian Lender becomes a Canadian Lender hereunder or otherwise does not
qualify as a Canadian Resident, notice that it is not a Canadian Resident.  Notwithstanding any provision hereof to the
contrary and for the avoidance of doubt, it is acknowledged by the parties that
there may be Canadian tax imposed under Part XIII of the ITA (“Canadian
Withholding Tax”) on any payments as, on account or in lieu of payment of,
or in satisfaction of, interest and other fees paid by the Canadian Borrowers
or the Canadian Agent with respect to the Canadian Obligations to persons who
are not Canadian Residents (such payments a “Canadian Taxable Payment”).  The Canadian Borrowers and the Canadian Agent
shall have no obligation to make any additional or increased payment under Section
4.1(d) in respect of any Canadian Withholding Tax on a Canadian Taxable Payment
unless a Canadian Borrower has agreed in writing prior to any payment date to
pay additional amounts for such Tax (or a portion thereof), and the Canadian
Borrowers and the Canadian Agent shall be entitled to deduct and remit to the
proper Canadian taxing authorities any Canadian Withholding Tax on any Canadian
Taxable Payment.

 

(iii)                               Each U.K. Lender represents and warrants to U.K. Borrower that it
is a Qualifying Lender.  “Qualifying
Lender” means (a) a Lender which (i) is within the charge to U.K.
corporation tax in respect of, and beneficially entitled to, a payment of
interest on a loan and (ii) was a bank for the purposes of section 349 of the
Income and Corporation Taxes Act 1988 (as currently defined in section 840A of
the Income and Corporation Taxes Act) at the time the loan was made; or (b) a
Lender which is, on the date a payment of interest falls due hereunder,
resident (as defined in the appropriate double taxation agreement) in a country
with which the U.K. has a double taxation agreement giving residents of that
country complete exemption from U.K. taxation on interest and does not carry on
a business in the U.K. through a permanent establishment with which the payment
is effectively connected.

 

(iv)                              Each U.K. Lender represents and warrants to the U.K. Borrower that
it is a Section 212 Lender at the date of this Agreement and that it will
remain so until it notifies the U.K. Borrower to the contrary.  Each U.K. Lender undertakes to notify the 

 

61

 

U.K. Borrower
promptly upon it becoming aware that it is not or will cease to be a Section
212 Lender.   “Section 212 Lender”
means a person which is beneficially entitled to interest payable to that
person in respect of a loan and which, as respects any payments of interest
made in respect of that loan, is (a) a company which (for the purposes of
Subsection (1)(a) of section 212 of the Income and Corporation Taxes Act 1988)
is within the charge to U.K. corporation tax; and (b) not (for the purposes of
subsection (3) of section 212 of the Income and Corporation Taxes Act 1988)
entitled under any enactment to any exemption from tax.

 

(v)                                 Each U.K. Lender shall (i) promptly after the date hereof or
promptly after the date of an Assignment and Acceptance pursuant to which it
became a Lender and (ii) from time to time thereafter upon the obsolescence or
expiration of any previously delivered form or certificate (but only so long as
such Lender remains lawfully able to do so) provide the Borrowers and the Agents
with any form or certificate that is required by any taxing authority, or other
such forms as shall be appropriate to establish, that such Lender is a
Qualifying Lender. Each U.K. Lender represents and warrants that such
information is true and complete in all material respects as of the date it is
delivered. Each such Lender shall promptly notify the Borrowers and the Agents
if, because of any change in the jurisdiction of organization or the principal
office of such Lender, (A) it is required to withdraw or cancel any form or
certificate previously submitted by it or any form or certificate has otherwise
become ineffective or inaccurate or (B) payments to it are or will be subject
to withholding taxes imposed by the United Kingdom to a greater or lesser
extent than the extent to which payments to it pursuant to this Agreement, the
Notes or any other Loan Document were previously subject.

 

(vi)                              Each Singapore Lender shall be a resident of Singapore for the
purposes of the Income Tax Act, Chapter 134 of Singapore in that its control
and management is exercised in Singapore or shall have been granted a waiver of
compliance with Section 45 or Section 45A of the Income Tax Act, Chapter 134 of
Singapore (which has not been
revoked) by the Inland Revenue Authority of Singapore for amounts paid or
credited with respect to the Singapore Obligations (“Singapore Resident
Lender”).  In the event that a
Singapore Lender is not a Singapore Resident Lender (in that it is not resident
of Singapore for the purposes of the Income Tax Act, Chapter 134 of Singapore
or it has not been granted a waiver of compliance with Section 45 or Section
45A with respect to all amounts paid or credited to it in respect of the
Singapore Obligations) the Singapore Lender shall deliver to Singapore
Borrowers and the Singapore Agent on the date on which such Singapore Lender
becomes a Singapore Lender hereunder or otherwise does not qualify as a
Singapore Resident Lender, notice that it is not a Singapore Resident Lender or
that a waiver of compliance with Section 45 or Section 45A does not apply.  Notwithstanding any provision hereof to the
contrary and for the avoidance of doubt, it is acknowledged by the parties that
there may be Singapore tax imposed under Section 45 or Section 45A of the
Income Tax Act, Chapter 134 of Singapore (“Singapore Withholding Tax”)
on any payments as, on account or in lieu of payment of, or in satisfaction of,
interest and other fees paid by the Singapore Borrowers or the Singapore Agent
with respect to the Singapore Obligations to persons who are not Singapore
Resident Lenders (such payments a “Singapore Taxable Payment”).  The Singapore Borrowers and the Singapore
Agent shall have no obligation to make any additional or 

 

62

 

increased
payment under Section 4.1(d) in respect of any Singapore Withholding Tax
on a Singapore Taxable Payment unless Singapore Borrower has agreed in writing
prior to any payment date to pay additional amounts for such Tax (or a portion
thereof), and the Singapore Borrowers and the Singapore Agent shall be entitled
to deduct and remit to the proper Singapore taxing authorities any Singapore
Withholding Tax on any Singapore Taxable Payment.

 

4.2                                 Limitation on Liability For Obligations.  Notwithstanding any
provision of this Agreement or any other Loan Document to the contrary, no
Foreign Subsidiary shall be liable, directly or indirectly, for any U.S.
Obligation, either as an Obligor, guarantor or pledgor of its assets.

 

4.3                                 Pro Rata Treatment.  Except to the extent otherwise provided
herein:  (a) each borrowing from the
Lenders under Section 2.1 hereof shall be made (w) in the case of
Canadian Revolving Loans, ratably from the Canadian Lenders in accordance with
their respective Canadian Commitments, (x) in the case of U.K. Revolving Loans,
ratably from the U.K. Lenders in accordance with their respective U.K.
Commitments, (y) in the case of Singapore Revolving Loans, ratably from the
Singapore Lenders in accordance with their respective Singapore Commitments,
and (z) in the case of U.S. Revolving Loans, ratably from the U.S. Lenders in
accordance with their respective U.S. Commitments, provided that borrowings of
Swing Loans shall be for Wells Fargo’s own account; (b) each payment of
commitment fees shall be made for the account of the Lenders, and each
termination or reduction of the applicable Commitments of the Lenders under Section
2.4 hereof shall be applied, pro rata, according to the applicable Lenders’
respective Commitment Percentages; (c) subject to Section 2.6, each
payment by any Borrower of principal of or interest on any Revolving Loans or
any Bankers’ Acceptance, as the case may be, prior to the occurrence of an
Event of Default (or after the applicable Event of Default shall have been
fully cured or waived) shall be made to the applicable Agent for the account of
the applicable Lenders pro rata in accordance with the respective unpaid
principal amounts of the Revolving Loans held by or Bankers’ Acceptances
accepted by such Lenders, provided that payments of Swing Loans prior to the
occurrence of an Event of Default (or after the applicable Event of Default
shall have been fully cured) shall be for Wells Fargo’s own account; (d) each
payment by any Borrower of principal of or interest on Revolving Loans
(including Swing Loans) or any Bankers’ Acceptance, as the case may be,  while an Event of Default shall have occurred
and be continuing, shall be made to the applicable Agent for the account of the
Lenders pro rata in accordance with the respective unpaid principal amounts of
the Obligations held by the Lenders (i.e. such payments shall be shared by all
of the Lenders and not restricted to the holders of the applicable Notes, or
Lenders having accepted Bankers’ Acceptances, as the case may be, regardless of
any attempted contrary designation by any Borrower); (e) the applicable Lenders
(other than the applicable Issuer) shall purchase from the applicable Issuer
participations in each Letter of Credit in accordance with their respective Commitment
Percentages; and (f) the applicable Lenders shall purchase and accept Bankers’
Acceptance pro rata in accordance with their respective Commitment Percentages.

 

4.4                                 Certain Actions, Notices, Etc.  Notices to the applicable Agent of any
termination or reduction of any of the Commitments and of borrowings and
optional prepayments of Loans and requests for issuances of Letters of Credit
and Bankers’ Acceptances shall be irrevocable and shall be effective only if
received by the applicable Agent not later than (i) noon Houston, Texas 

 

63

 

time (in the case of U.S. Revolving Loans
which are same day fundings), (ii) 11:00 a.m. Houston, Texas time (in the case
of U.S. Revolving Loans which are not same day fundings and U.S. Letters of
Credit), (iii) 12:00 noon Calgary, Alberta time (in the case of Canadian
Revolving Loans which are not same day fundings, Bankers’ Acceptances and
Canadian Letters of Credit), (iv) 10:00 a.m. Calgary, Alberta time (in the case
of Canadian Revolving Loans which are same day fundings), (v) 11:00 a.m.
London, United Kingdom time (in the case of U.K. Revolving Loans which are not
same day fundings and U.K. Letters of Credit), (vi) 10:00 a.m. London, United
Kingdom time (in the case of U.K. Revolving Loans which are same day fundings),
(vii) 11:00 a.m. Singapore time (in the case of Singapore Revolving Loans which
are not same day fundings and Singapore Letters of Credit) or (viii) 10:00 a.m.
Singapore time (in the case of Singapore Revolving Loans which are same day
fundings) in each case, on the number of Business Days prior to the date of (or
on, as applicable) the relevant termination, reduction, borrowing and/or
prepayment specified below:

 

	
   

  	
   

  	
  Number of Business

  	
   

  
	
   

  	
   

  	
  Days Prior Notice

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  2.4(d) Reallocations

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Termination
  or Reduction of Commitments

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Borrowings
  or prepayments of Swing Loans

  	
   

  	
  same day

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Increase of
  U.S. Commitments (pursuant to Section 2.4(c) hereof)

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Repayment of
  Base Rate Borrowings

  	
   

  	
  same day

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Repayment of
  LIBOR Borrowings

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Base Rate
  Borrowings and Canadian Prime Loans

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Letter of
  Credit issuance

  	
   

  	
  2 (or such
  shorter period as may be acceptable to the applicable Issuer)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  LIBOR
  Borrowings

  	
   

  	
  3 LIBOR Business
  Days

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Bankers’
  Acceptances

  	
   

  	
  2

  	
   

  

 

64

 

Each such notice of termination or reduction
shall specify the amount of the applicable 
Commitment to be terminated or reduced. 
Each such notice of borrowing or prepayment shall specify the amount of
the Loans to be borrowed or prepaid and the date of borrowing or prepayment
(which shall be a Business Day).  The
applicable Agent shall promptly notify the affected Lenders of the contents of
each such notice.

 

4.5                                 Non-Receipt of Funds by Any Agent.  Unless the applicable Agent shall have been
notified by a Lender or a Borrower (the “Payor”) prior to the date on
which such Lender is to make payment to such Agent of the proceeds of a Loan
(or funding of a drawing under a Letter of Credit or reimbursement with respect
to any drawing under a Letter of Credit or funding of a payment under a Bankers’
Acceptance or reimbursement with respect to any payment under a Bankers’
Acceptance) to be made by it hereunder or on which the applicable Borrower is
to make a payment to such Agent for the account of one or more of the Lenders,
as the case may be (such payment being herein called the “Required Payment”),
which notice shall be effective upon receipt, that the Payor does not intend to
make the Required Payment to such Agent on the due date, the applicable Agent
may assume that the Required Payment has been made and may, in reliance upon
such assumption (but shall not be required to), make the amount thereof
available to the intended recipient on such date and, if the Payor has not in
fact made the Required Payment to such Agent, the recipient of such payment
(or, if such recipient is the beneficiary of a Letter of Credit, the applicable
Borrower and, if such Borrower fails to pay the amount thereof to the
applicable Agent forthwith upon demand, the applicable Lenders ratably in
proportion to their respective Commitment Percentages) shall, on demand, pay to
such Agent the amount made available by such Agent, together with interest
thereon in respect of the period commencing on the date such amount was so made
available by such Agent until the date Agent recovers such amount at a rate per
annum for such period equal to (i) in respect of Obligations which are
denominated in Dollars, the Federal Funds Rate and (ii) in respect of Canadian
Obligations which are denominated in Canadian Dollars, the CDOR Rate.

 

4.6                                 Sharing of Payments, Etc.  If a Lender shall obtain payment of any
principal of or interest on any Loan made by it under this Agreement (other
than Swing Loans), on any Reimbursement Obligation or on any other Obligation
then due to such Lender hereunder, through the exercise of any right of set-off
(including, without limitation, any right of setoff or Lien granted under Section
9.2 hereof), banker’s lien, counterclaim or similar right, or otherwise, it
shall promptly purchase from the other Lenders participations in the Loans
made, or Reimbursement Obligations or other Obligations held, by the other
Lenders in such amounts, and make such other adjustments from time to time as
shall be equitable to the end that all the Lenders shall share the benefit of
such payment (net of any expenses which may be incurred by such Lender in
obtaining or preserving such benefit) pro rata in accordance with the unpaid
Obligations then due to each of them.  To
such end, all the Lenders shall make appropriate adjustments among themselves
(by the resale of participations sold or otherwise) if such payment is
rescinded or must otherwise be restored. 
Subject to Section 4.2 hereof, each Borrower agrees, to the
fullest extent it may effectively do so under applicable law, that any Lender
so purchasing a participation in the Loans made, or Reimbursement Obligations
or other Obligations held, by other Lenders may exercise all rights of set-off,
bankers’ lien, counterclaim or similar rights with respect to such
participation as fully as if such Lender were a direct holder of Loans,
Reimbursement Obligations or other Obligations in the amount of such participation.  Nothing contained herein shall require any
Lender to exercise any such right or shall affect the right of 

 

65

 

any Lender to exercise, and retain the
benefits of exercising, any such right with respect to any other indebtedness
or obligation of any Borrower.

 

5.                                       Conditions Precedent.

 

5.1                                 Initial Loans, Letters of Credit and Bankers’ Acceptances.  The obligation of each
Lender or each Issuer to make its initial Loans or issue or participate in the
initial Letter of Credit hereunder or to accept and purchase its initial
Bankers’ Acceptance hereunder (whichever shall first occur) is subject to the
following conditions precedent, each of which shall have been fulfilled or
waived to the satisfaction of the Majority Lenders (or by all of the Lenders to
the extent that such waiver requires unanimous consent under Section 11.5
hereof):

 

(a)                                  Authorization and Status.  Agents shall have received (i) copies of the
Organizational Documents of each Obligor certified as true and correct by its
secretary, assistant secretary or other equivalent officer, (ii) evidence
reasonably satisfactory to Agents of all action taken by each Obligor
authorizing the execution, delivery and performance of the Loan Documents and
all other documents related to this Agreement to which it is a party
(including, without limitation, a certificate of the secretary, assistant
secretary or other equivalent officer of each such party which is a corporation
setting forth the resolutions of its Board of Directors authorizing the
transactions contemplated thereby), and (iii) such certificates as may be
appropriate to demonstrate the qualification and, if relevant, good standing of
each Obligor in the jurisdiction of its organization and in each other
jurisdiction where the failure in which to qualify could reasonably be expected
to have a Material Adverse Effect.

 

(b)                                 Incumbency.  Each Obligor shall have delivered to Agents a
certificate in respect of the name and signature of each of the officers or
other authorized individuals (i) who are authorized to sign on its behalf the
applicable Loan Documents and (ii) who will, until replaced by other officer(s)
or other authorized individual(s) duly authorized for that purpose, act as its
representatives for the purposes of signing documents and giving notices and
other communications in connection with the Loan Documents, any Loan, the
issuance of any Letter of Credit or the acceptance of any Bankers’
Acceptance.  Each Agent and each Lender
may conclusively rely on such certificates until they receive notice in writing
from the applicable Obligor to the contrary.

 

(c)                                  Notes. 
Agents shall have received the appropriate Notes of Borrowers for each
Lender, duly completed and executed.

 

(d)                                 Loan Documents and Contribution Agreements.  Each Obligor shall have
duly executed and delivered the Loan Documents and Contribution Agreements to
which it is a party (in such number of copies as Agents shall have
requested).  Each such Loan Document
shall be in substantially the form furnished to the Lenders prior to their
execution of this Agreement, together with such changes therein as Agents may
approve.

 

(e)                                  Security Matters.  All such action as Agents shall have
requested to perfect the Liens created pursuant to the Security Documents which
are in effect as of the Effective Date shall have been taken, including,
without limitation, where applicable, the filing, recording, lodgement and/or
registration of the Security Documents with the appropriate Governmental 

 

66

 

Authorities. 
Agents shall also have received evidence satisfactory to it that the
Liens created by the Security Documents constitute first priority Liens, except
as expressly provided herein or therein, including, without limitation,
delivery of all applicable stock or share certificates of such securities to be
pledged pursuant to the Security Documents (with stock powers or share transfer
forms executed in blank). Agents shall also have received all Uniform
Commercial Code search reports and other applicable personal property registry
reports with respect to the Obligors, satisfactory title evidence with respect
to real property owned by the Obligors in form and substance acceptable to
Agent, and executed releases or assignments (as U.S. Agent may require) of any
prior Liens which are not permitted hereunder.

 

(f)                                    Fees and Expenses. Borrowers shall
have paid to Agents all accrued and unpaid fees in the amounts previously
agreed upon in writing between any Borrower and any Agent.

 

(g)                                 Insurance.  Borrowers shall have delivered to Agents
certificates of insurance satisfactory to Agents evidencing the existence of
all insurance required to be maintained by each Obligor by this Agreement and
the Security Documents.

 

(h)                                 Opinions of Counsel.  Agents shall have received such opinions of
counsel to Obligors as Agents shall reasonably request with respect to Obligors
and the Loan Documents.

 

(i)                                     Consents.  Agents shall have received evidence
satisfactory to the Majority Lenders that all material consents of each
Governmental Authority and of each other Person, if any, reasonably required in
connection with (a) the Loans, Letters of Credit and Bankers’ Acceptances and
(b) the execution, delivery and performance of this Agreement and the other
Loan Documents have been satisfactorily obtained.

 

(j)                                     Payment of Existing Debt.  Agents shall have received evidence
satisfactory to the Majority Lenders that the U.S. Borrower and its
Subsidiaries shall have been released (or will, upon payment thereof using the
proceeds of the Loans, be released) from all liabilities and obligations in
respect of all Borrowed Money Indebtedness other than the Obligations and other
than liabilities and obligations expressly permitted under Section 8.1
hereof, and that any such Borrowed Money Indebtedness which is not so permitted
shall have been terminated.

 

(k)                                  Other Documents.  Agents shall have received such other
documents consistent with the terms of this Agreement and relating to the
transactions contemplated hereby as Agents may reasonably request.

 

5.2                                 All Loans, Letters of Credit and Bankers’ Acceptances.  The obligation of each
Lender to make any Loan to be made by it hereunder or to issue or participate
in any Letter of Credit or to accept and purchase any Bankers’ Acceptance is
subject to (a) the accuracy, in all material respects, on the date of such Loan
or such Letter of Credit issuance or such Bankers’ Acceptance acceptance and
purchase of all representations and warranties of each Obligor contained in
this Agreement and the other Loan Documents; (b) the applicable Agent shall
have received the following, all of which shall be duly executed and in Proper
Form: (1) a Request for Extension of Credit as to a Loan, Letter of Credit
or Bankers’ Acceptance, as the case may be, by the time and on the Business Day
specified under Section 4.4 hereof, (2) in the case of a Letter of
Credit, an Application, and (3) such other documents as the applicable Agent
may reasonably 

 

67

 

require; (c) prior to the making of such
Loan or the issuance of such Letter of Credit or the acceptance and purchase of
such Bankers’ Acceptance, there shall have occurred no event which could
reasonably be expected to have a Material Adverse Effect; (d) no Default
or Event of Default shall have occurred and be continuing; (e) in the case of a
U.S. Revolving Loan, all Swing Loans then outstanding shall have been paid or
shall be paid with the proceeds of such U.S. Revolving Loan; and (f) the
making of such Loan or the issuance of such Letter of Credit or the acceptance
and purchase of such Bankers’ Acceptance shall not be illegal or prohibited by
any applicable Legal Requirement.  Any
Agent may condition any Loan hereunder or the issuance of any Letter of  Credit hereunder or the acceptance and
purchase of any Bankers’ Acceptance hereunder upon such confirmation as such
Agent may reasonably require regarding the then current outstanding balances of
the Loans, Letters or Credit, Bankers’ Acceptance and Commitments under the
administration of any other Agent.  The
submission by any Borrower of a Request for Extension of Credit shall be deemed
to be a representation and warranty that the conditions precedent to the
applicable Loan or Letter of Credit or Bankers’ Acceptance have been satisfied.

 

6.                                       Representations and Warranties.

 

To induce
Agents, the Issuers and the Lenders to enter into this Agreement and to make
the Loans and issue or participate in the Letters of Credit and accept and
purchase Bankers’ Acceptances, each Borrower represents and warrants (such
representations and warranties to survive any investigation and the making of
the Loans and the issuance of any Letters of Credit and the acceptance and
purchase of any Bankers’ Acceptances) to the Lenders, Issuers and Agents as
follows:

 

6.1                                 Organization.  Each Obligor (other than U.K. Borrower and
Singapore Borrower) is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization.  U.K. Borrower is duly incorporated and
validly existing under the laws of England and Wales.  Singapore Borrower is duly incorporated and
validly existing under the laws of Singapore. 
Each Obligor (a) has all necessary power and authority to conduct its
business as presently conducted; and (b) is duly qualified to do business and
in good standing, if applicable, in the jurisdiction of its organization and in
all jurisdictions in which the failure to so qualify could reasonably be
expected to have a Material Adverse Effect.

 

6.2                                 Financial Statements.  Borrowers have furnished to Agents (i)
audited consolidated financial statements (including a balance sheet) as to
U.S. Borrower and its consolidated Subsidiaries that fairly present in all
material respects, in accordance with GAAP, the consolidated financial
condition and the results of operations of U.S. Borrower and its consolidated
Subsidiaries as at the end of the fiscal year ended July 31, 2005 and (ii)
unaudited consolidated financial statements (including a balance sheet) as to
U.S. Borrower and its consolidated Subsidiaries that fairly present in all
material respects, in accordance with GAAP, the consolidated financial
condition and the results of operations of U.S. Borrower and its consolidated Subsidiaries
as at the end of the fiscal quarter ended October 31, 2005.  No events, conditions or circumstances have
occurred from the date that the financial statements were delivered to Agent
through the Effective Date which would cause said financial statements to be
misleading in any material respect. 
There are no material instruments or liabilities which should be
reflected in such financial statements provided to Agent which are not so
reflected.

 

68

 

6.3                                 Enforceable Obligations; Authorization.  The Loan Documents to which the applicable
Obligors are parties are legal, valid and binding obligations of each
applicable Obligor, enforceable against each applicable Obligor in accordance
with their respective terms, except as may be limited by bankruptcy, insolvency
and other similar laws and judicial decisions affecting creditors’ rights
generally and by general equitable principles. 
The execution, delivery and performance of the Loan Documents by the
respective Obligors (a) have all been duly authorized by all necessary
corporate (or analogous) action; (b) are within the corporate (or analogous)
power and authority of each applicable Obligor; (c) do not and will not
contravene or violate any Legal Requirement applicable to any applicable
Obligor or the Organizational Documents of any applicable Obligor, the
contravention or violation of which could reasonably be expected to have a
Material Adverse Effect; (d) do not and will not result in the breach of, or constitute
a default under, any agreement or instrument by which any Obligor or any of its
Property may be bound, the breach or contravention of which might reasonably be
expected to have a Material Adverse Effect, and (e) do not and will not result
in the creation of any Lien upon any Property of any Obligor, except in favor
of Agents as expressly contemplated herein or in the other Loan Documents, and
except for Permitted Liens.  All
necessary permits, registrations and consents for such making and performance
have been obtained.  Except as otherwise
expressly stated in the Security Documents, the Liens of the Loan Documents
will, upon the due execution and delivery of the Security Documents, and the
making of all filings and registrations, payment of all registration, filing
and other fees and the completion of all other required formalities, constitute
valid and perfected first and prior Liens on the Property described therein,
subject to no other Liens whatsoever except Permitted Liens.

 

6.4                                 Other Debt.  No Obligor is in default in the payment of
any other Borrowed Money Indebtedness or under any agreement, mortgage, deed of
trust, security agreement or lease to which it is a party and which default
could reasonably be expected to have a Material Adverse Effect.

 

6.5                                 Litigation.  Except as set forth on Schedule 6.5
hereto, there is no material litigation or administrative proceeding, to the
knowledge of any executive officer of any Borrower, pending or threatened
against, nor any outstanding judgment, order or decree against, any Obligor
before or by any Governmental Authority which if determined in a manner adverse
to such Obligor could reasonably be expected to have a Material Adverse
Effect.  No Obligor is in default with
respect to any judgment, order or decree of any Governmental Authority where
such default could reasonably be expected to have a Material Adverse Effect.

 

6.6                                 Title. 
Each Obligor has good and defensible title to the Collateral, if any,
pledged (or purported to be pledged) by such Obligor pursuant to the Security
Documents, free and clear of all Liens (except Liens permitted under Section
8.2 hereof and Liens arising pursuant to the Loan Documents).

 

6.7                                 Taxes. 
Each Obligor has filed all tax returns required to have been filed by it
and paid all taxes shown thereon to be due, except those for which extensions
have been obtained and those which are being contested in good faith or where
the failure to make required filings or pay required taxes could not reasonably
be expected to have a Material Adverse Effect.

 

69

 

6.8                                 Regulations U and X.  None of the proceeds of any Loan or proceeds
from the acceptance and purchase of Bankers’ Acceptances will be used for the
purpose of purchasing or carrying directly or indirectly any margin stock or
for any other purpose that would constitute a “purpose credit” within the
meaning of Regulations U and X of the Board of Governors of the Federal Reserve
System, as any of them may be amended from time to time.

 

6.9                                 Subsidiaries.  As of the Effective Date, U.S. Borrower has
no Subsidiaries other than as set forth on Schedule 6.9 hereto.  As of the Effective Date, the percentage of
the issued and outstanding Equity Interests in each applicable Subsidiary which
is owned by U.S. Borrower and/or one or more of its Subsidiaries is set forth
on Schedule 6.9 hereto.

 

6.10                           No Untrue or Misleading Statements.  No document, instrument or other writing
furnished to the Lenders by or on behalf of any Obligor in connection with the
transactions contemplated in any Loan Document contains any untrue statement of
material fact or omits to state any such fact necessary to make the
representations, warranties and other statements contained herein or in such
other document, instrument or writing not misleading in any material respect.

 

6.11                           ERISA. 
Except as could not reasonably be expected to have a Material Adverse
Effect, with respect to each Plan, each Borrower and each member of the
Controlled Group has fulfilled its obligations, including obligations under the
minimum funding standards of ERISA and the Code and is in compliance with the
provisions of ERISA and the Code.  No
event has occurred which could result in a liability of any Borrower or any
member of the Controlled Group to the PBGC or a Plan (other than to make
contributions in the ordinary course) that could reasonably be expected to have
a Material Adverse Effect.  No Lien
provided under Section 4068 of ERISA has attached to any Property of any
Borrower or any member of the Controlled Group. 
Except as could not reasonably be expected to have a Material Adverse
Effect, there are no Unfunded Liabilities in respect of any Plan as of the date
hereof and no “prohibited transaction” has occurred with respect to any Plan.

 

6.12                           Investment Company Act.  No Obligor is an investment company within
the meaning of the Investment Company Act of 1940, as amended, or, directly or
indirectly, controlled by or acting on behalf of any Person which is an
investment company, within the meaning of said act.

 

6.13                           Solvency.  Neither the U.S. Borrower nor any of its
Subsidiaries which are Domestic Subsidiaries is “insolvent,” as such term is
used and defined in (i) the Bankruptcy Code and (ii) the fraudulent conveyance
statutes of the State of Texas or of any jurisdiction in which any of the
Collateral may be located.  Neither any
Canadian Borrower nor any of its Subsidiaries is “insolvent” as defined in the
Bankruptcy Code.  Neither the U.K.
Borrower nor any of its Subsidiaries is unable to pay its debts within the
meaning of Section 123 of the Insolvency Act 1986 (England and Wales).  Neither the Singapore Borrower nor any of its
Subsidiaries is unable to pay its debts within the meaning of the statute described
in clause (iv) of the definition of “Bankruptcy Code” set forth in Section
1.1 hereof.

 

70

 

6.14                           Fiscal Year.  The fiscal year of each Obligor (other than
Veritas Energy Services Partnership) ends on July 31.  The fiscal year of Veritas Energy Services
Partnership ends on November 30.

 

6.15                           Compliance.  Each Obligor is in compliance with all Legal
Requirements applicable to it, except to the extent that the failure to comply
therewith could not reasonably be expected to have a Material Adverse Effect.

 

6.16                           Environmental Matters.  Each Obligor has, to the best knowledge of
its executive officers, obtained and maintained in effect all Environmental
Permits (or the applicable Person has initiated the necessary steps to transfer
the Environmental Permits into its name or obtain such permits), the failure to
obtain or maintain which could reasonably be expected to have a Material
Adverse Effect.  Each Obligor and its
Properties, business and operations have been and are, to the best knowledge of
its executive officers, in compliance with all applicable Requirements of
Environmental Law and Environmental Permits the failure to comply with which
could reasonably be expected to have a Material Adverse Effect.  To the best knowledge of the executive officers
of U.S. Borrower (after making reasonable inquiry of the personnel and records
of the applicable Obligors), each Obligor and its Properties, business and
operations are not subject to any (A) Environmental Claims or (B)  Environmental Liabilities, in either case
direct or contingent, arising from or based upon any act, omission, event,
condition or circumstance occurring or existing on or prior to the date hereof
which could reasonably be expected to have a Material Adverse Effect.  None of the officers of any Obligor has
received any notice of any violation or alleged violation of any Requirements
of Environmental Law or Environmental Permit or any Environmental Claim in
connection with its Properties, liabilities, condition (financial or
otherwise), business or operations which could reasonably be expected to have a
Material Adverse Effect.  To the best
knowledge of the executive officers of U.S. Borrower (after making reasonable
inquiry of the personnel and records of the applicable Obligors), none of the
Borrowers knows of any event or condition with respect to currently enacted
Requirements of Environmental Laws presently scheduled to become effective in
the future with respect to any of the Properties of any Obligor which could
reasonably be expected to have a Material Adverse Effect, for which the
applicable Obligor has not made good faith provisions in its business plan and
projections of financial performance.

 

6.17                           Collateral as of the Effective Date.  The Collateral securing the U.S. Obligations
as of the Effective Date includes all Required U.S. Collateral as of the
Effective Date.  The Collateral securing
the Canadian Obligations as of the Effective Date includes all Required
Canadian Collateral as of the Effective Date. 
The Collateral securing the Singapore Obligations as of the Effective
Date includes all Required Singapore Collateral as of the Effective Date.  The Collateral securing the U.K. Obligations
as of the Effective Date includes all Required U.K. Collateral as of the
Effective Date.  All certificates
evidencing any applicable Equity Interests included within the Collateral have
been delivered to the applicable Agent (or the Person holding the same shall
have been instructed to deliver it to the applicable Agent in a manner
reasonably acceptable to U.S. Agent), duly endorsed in such manner as the
applicable Agent shall request and accompanied by stock powers executed in
blank, and all applicable promissory notes or other evidence of indebtedness
included within the Collateral have been delivered to the applicable Agent (or
the Person holding the same shall have been instructed to deliver it to the

 

71

 

applicable Agent in a manner reasonably
acceptable to U.S. Agent), duly endorsed in such manner as the applicable Agent
shall request).

 

7.                                       Affirmative Covenants.

 

Each Borrower
covenants and agrees with Agents and the Lenders that prior to the payment of
all Obligations and the termination of all Commitments it will do or cause to
be done, and cause each other Obligor (unless limited by the language of the
applicable provision to less than all of the Obligors) to do or cause to be
done, each and all of the following:

 

7.1                                 Taxes, Existence, Regulations, Property, Etc.  At all times, except where
failure or noncompliance could not reasonably be expected to have a Material
Adverse Effect: (a) pay when due all taxes and governmental charges of
every kind upon it or against its income, profits or Property, unless and only
to the extent that the same shall be contested in good faith and adequate
reserves in accordance with GAAP have been established therefor;
(b) except as permitted by Section 8.4, do all things necessary to
preserve its existence, qualifications, rights and franchises; (c) comply
with all applicable Legal Requirements (including without limitation
Requirements of Environmental Law) in respect of the conduct of its business
and the ownership of its Property; and (d) cause its Property to be
protected, maintained and kept in good repair, ordinary wear and tear excepted,
and make all replacements and additions to such Property as may be reasonably
necessary to conduct its business properly and efficiently in accordance with
past practices.

 

7.2                                 Financial Statements and Information.  Furnish to Agents and each Lender each of the
following: (a) within 5 Business Days after the required SEC filing date
for each fiscal year, Annual Financial Statements of U.S. Borrower and its
consolidated Subsidiaries as filed with the SEC; (b) within 5 Business
Days after the required SEC filing date for each fiscal quarter, Quarterly
Financial Statements of U.S. Borrower and its consolidated Subsidiaries as
filed with the SEC; (c) concurrently with the financial statements provided for
in Subsections 7.2(a) and (b) hereof, such schedules,
computations and other information, in reasonable detail, as may be reasonably
required by Agents to demonstrate compliance with the covenants set forth
herein or reflecting any non-compliance therewith as of the applicable date,
all certified and signed by a duly authorized officer of U.S. Borrower as true
and correct in all material respects to the best knowledge of such officer and,
commencing with the Quarterly Financial Statements prepared as of January 31,
2006, a compliance certificate (“Compliance Certificate”) substantially
in the form of Exhibit F hereto, duly executed by such authorized
officer; (d) concurrently with the financial statements provided for in Subsection
7.2(a)  hereof, projected
consolidated financial statements for the then current fiscal year; (e) within
120 days after the end of each fiscal year, the annual unaudited financial
statements of the Canadian Borrowers and their respective consolidated
Subsidiaries, the U.K. Borrower and its consolidated Subsidiaries and the
Singapore Borrower and its consolidated Subsidiaries; (f) promptly upon their
becoming publicly available, each financial statement, report, notice or
definitive proxy statements sent by U.S. Borrower to shareholders generally and
each regular or periodic report and each registration statement, prospectus or
written communication (other than transmittal letters) in respect thereof filed
by U.S. Borrower with, or received by U.S. Borrower in connection therewith
from, any securities exchange or the Securities and Exchange Commission or any
successor agency;  (g) at any time upon
the request of U.S. Agent following the occurrence of an Event of Default which

 

72

 

is continuing, a report of an independent
collateral field examiner approved by U.S. Agent in writing and reasonably
acceptable to the applicable Borrower (which may be, or be affiliated with, any
Agent or one of the Lenders) with respect to the Accounts of Borrowers and
their Material Subsidiaries (provided, however, that U.S. Agent shall not
require such a report more than once per calendar quarter), and (h) such
other information relating to the condition (financial or otherwise),
operations, prospects or business of any Obligor as from time to time may be
reasonably requested by any Agent or any Lender. Each delivery of a financial
statement pursuant to this Section 7.2 shall constitute a restatement of
the representations contained in the last two sentences of Section 6.2
with respect to such furnished financial statements.

 

7.3                                 Financial Tests.  Have and maintain:

 

(a)                                  Capitalization Ratio – a
Capitalization Ratio of not greater than 40% at all times.  The Capitalization Ratio shall be calculated
and tested quarterly as of the last day of each fiscal quarter of U.S.
Borrower.

 

(b)                                 Leverage Ratio - a Leverage Ratio of
not greater than (1) 2.75 to 1.00 at all times during the period commencing on
the date hereof through and including October 31, 2006 and (2) 2.50 to 1.00 at
all times thereafter.  The Leverage Ratio
shall be calculated and tested quarterly as of the last day of each fiscal
quarter of U.S. Borrower.

 

(c)                                  Interest Coverage Ratio – an Interest
Charge Coverage Ratio of not less than 3.00 to 1.00 at all times.  The Interest Coverage Ratio shall be
calculated and tested quarterly as of the last day of each fiscal quarter of
U.S. Borrower.

 

7.4                                 Inspection.  Permit each applicable Agent from time to
time at any reasonable time upon reasonable prior notice and during normal business
hours to inspect its Property in a manner consistent with applicable safety
requirements and policies of insurance, to examine its files, books and
records, except classified governmental material, legally privileged material
and material subject to a confidentiality obligation, and make and take away
copies thereof, and to discuss its affairs with its officers and accountants,
all during normal business hours and at such intervals and to such extent as
any such applicable Agent may reasonably desire; provided that such inspection
does not unreasonably interfere with such Obligor’s operations.

 

7.5                                 Further Assurances.  Promptly execute and deliver, at the expense
of the applicable Borrower, any and all other and further instruments which may
be reasonably requested by any Agent to cure any defect in the execution and
delivery of any Loan Document in order to effectuate the transactions
contemplated by the Loan Documents, and in order to grant, preserve, protect
and perfect the validity and priority of the Liens created by the Security
Documents.

 

7.6                                 Books and Records.  Maintain books of record and account which
permit financial statements to be prepared in accordance with GAAP.

 

7.7                                 Insurance.  Maintain insurance on its Property with
responsible companies in such amounts, with such deductibles and against such
risks as are usually carried by owners of similar businesses and Properties in
the same general areas in which the applicable Obligor operates.  

 

73

 

These insurance provisions are cumulative of
the insurance provisions of the Security Documents.  Each Agent shall be provided with a
certificate showing coverages provided under the policies of insurance and such
policies shall be endorsed to the effect that prior to cancellation, the
issuing insurer will endeavor to mail notice to each Agent (a) 10 days prior to
such cancellation in the event of cancellation for nonpayment of premium, and
(b) thirty (30) days prior to any other reduction or material change in such
coverage.

 

7.8                                 Notice of Certain Matters.  Give Agents written notice of the following
promptly after any executive officer of any Borrower shall become aware of the
same:

 

(a)                                  the issuance by any applicable Governmental Authority having jurisdiction
in the matter of any injunction, order or other restraint prohibiting, or
having the effect of prohibiting, the performance of this Agreement, any other
Loan Document, or the making of the Loans or the acceptance and purchase of
Bankers’ Acceptances or the initiation of any litigation, or any claim or
controversy which would reasonably be expected to result in the initiation of
any such litigation, seeking any such injunction, order or other restraint;

 

(b)                                 the commencement of any litigation or proceeding affecting U.S.
Borrower or any of its Material Subsidiaries in which the then reasonably
anticipated exposure of the U.S. Borrower and its Material Subsidiaries is
$10,000,000 or more and not covered by insurance, or in which injunctive or
similar relief is sought which is then reasonably anticipated to have an
adverse economic effect on U.S. Borrower and its Material Subsidiaries of
$10,000,000 or more; and

 

(c)                                  any Event of Default or Default, specifying the nature and extent
thereof and the action (if any) which is proposed to be taken with the respect
thereto.

 

Borrowers will also notify Agents in writing
at least 30 days prior to the date that any Obligor changes its name or the
location of its chief executive office or principal place of business or the
place where it keeps its books and records.

 

7.9                                 Capital Adequacy.  If any Lender shall have reasonably
determined that the adoption after the Effective Date or effectiveness after
the Effective Date (whether or not previously announced) of any applicable
Legal Requirement regarding capital adequacy, or any change therein after the
Effective Date, or any change in the interpretation or administration thereof
after the Effective Date by any Governmental Authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
compliance by any Lender with any request or directive issued after the
Effective Date regarding capital adequacy (whether or not having the force of
law) of any such Governmental Authority, central bank or comparable agency has
or would have the effect of reducing the rate of return on such Lender’s
capital as a consequence of its obligations hereunder, under the Letters of
Credit, the Notes or other Obligations held by it to a level below that which
such Lender could have achieved but for such adoption, change or compliance
(taking into consideration such Lender’s policies with respect to capital
adequacy) by an amount deemed by such Lender to be material, then from time to
time, upon satisfaction of the conditions precedent set forth in this Section,
after demand by such Lender (with a copy to the appropriate Agent) as provided
below, pay (subject to Sections 11.7 and 11.16 hereof) to such
Lender such additional amount or amounts as will compensate such 

 

74

 

Lender for such reduction.  The certificate of any Lender setting forth
its reasonable, good faith determination of such amount or amounts as shall be
necessary to compensate it and setting forth in reasonable detail the basis
thereof and reasons therefor shall be delivered as soon as practicable to the
applicable Borrower and shall be conclusive and binding, absent manifest
error.  The applicable Borrower shall pay
the amount shown as due on any such certificate within fifteen (15) Business
Days after the receipt of such certificate. 
In preparing such certificate, a Lender may employ such assumptions and
allocations of costs and expenses as it shall in good faith deem reasonable and
may use any reasonable averaging and attribution method.

 

7.10                           ERISA Information and Compliance.  Promptly furnish to Agents: (i) immediately
upon receipt, a copy of any notice of withdrawal liability within the meaning
of Section 4201 of ERISA resulting form a complete withdrawal or partial
withdrawal (as defined in Section 4201(b) of ERISA) and any notice from the
PBGC under Title IV of ERISA of an intent to terminate or appoint a trustee to
administer any Plan, (ii) if requested by any Agent, promptly after the filing
thereof with the United States Secretary of Labor or the PBGC or the Internal
Revenue Service or any Governmental Authority having jurisdiction under
Applicable Canadian Pension Legislation, copies of each annual and other report
or other information return with respect to each Plan or any trust created
thereunder, (iii) immediately upon becoming aware of the occurrence of any “reportable
event” (as such term is defined in Section 4043 of ERISA) for which the
disclosure requirements of 29 C.F.R. Section 4043 promulgated by the PBGC have
not been waived and that could reasonably be expected to have a Material
Adverse Effect, or of any “prohibited transaction” (as such term is defined in
Section 4975 of the Code) in connection with any Plan or any trust created
thereunder that could reasonably be expected to have a Material Adverse Effect,
a written notice signed by an authorized officer of the applicable Borrower or
the applicable member of the Controlled Group specifying the nature thereof,
what action the applicable Borrower or the applicable member of the Controlled
Group is taking or proposes to take with respect thereto, and, when known, any
action taken by the PBGC, the Internal Revenue Service, the Department of Labor
or any other applicable Governmental Authority with respect thereto, (iv)
promptly after the filing or receiving thereof by any Borrower or any member of
the Controlled Group of any notice of the institution of any proceedings or
other actions which may result in the termination of any Plan, in whole or in
part, that could reasonably be expected to have a Material Adverse Effect, and
(v) each request for waiver of the funding standards or extension of the
amortization periods required by Sections 303 and 304 of ERISA or Section 412
of the Code promptly after the request is submitted by any Borrower or any
member of the Controlled Group to the Secretary of the Treasury, the Department
of Labor, the Internal Revenue Service or any other applicable Governmental
Authority.  To the extent required under
applicable statutory funding requirements, each Borrower will fund, or will
cause the applicable member of the Controlled Group to fund, all current
service pension liabilities as they are incurred under the provisions of all
Plans from time to time in effect and, in addition, with respect to Plans
governed by Applicable Canadian Pension Legislation, all special payments in
connection with solvency deficiencies or going concern Unfunded Liabilities,
and comply with all applicable provisions of ERISA, in each case, except to the
extent that failure to do the same could not reasonably be expected to have a
Material Adverse Effect.  Each Borrower
covenants that it shall and shall cause each member of the Controlled Group to
(1) make contributions to each Plan in a timely manner and in an amount
sufficient to comply with the contribution obligations under such Plan and the
minimum funding standards requirements of ERISA; (2) prepare and file in a
timely manner all notices and reports 

 

75

 

required under the terms of ERISA including
but not limited to annual reports; and (3) pay in a timely manner all required
PBGC premiums, in each case, except to the extent that failure to do the same
could not reasonably be expected to have a Material Adverse Effect.

 

7.11                           Intercompany Accounts.  If U.S. Borrower or any of its Material
Subsidiaries (other than Foreign Subsidiaries) shall hereafter receive any
promissory notes or other evidence of indebtedness with respect to any amounts
payable by any Foreign Subsidiary to U.S. Borrower or any of its Material
Subsidiaries (other than Foreign Subsidiaries), such promissory notes or other
evidence of indebtedness shall be promptly delivered to U.S. Agent, duly
endorsed in such manner as U.S. Agent shall request, and accompanied by such
additional documentation as U.S. Agent may reasonably request in order to
evidence or perfect a first priority Lien securing the U.S. Obligations
covering such promissory notes or other evidence of indebtedness.  If Canadian Borrowers or any of their
Material Subsidiaries shall hereafter receive any promissory notes or other
evidence of indebtedness with respect to any amounts payable by any Foreign
Subsidiary to Canadian Borrowers or any of their Material Subsidiaries, such
promissory notes or other evidence of indebtedness shall be promptly delivered
to Canadian Agent, duly endorsed in such manner as Canadian Agent shall
request, and accompanied by such additional documentation as Canadian Agent may
reasonably request in order to evidence or perfect a first priority Lien
securing the Canadian Obligations covering such promissory notes or other
evidence of indebtedness.  If Singapore
Borrower or any of its Material Subsidiaries shall hereafter receive any
promissory notes or other evidence of indebtedness with respect to any amounts
payable by any Foreign Subsidiary to Singapore Borrower or any of its Material
Subsidiaries, such promissory notes or other evidence of indebtedness shall be
promptly delivered to Singapore Agent, duly endorsed in such manner as
Singapore Agent shall request, and accompanied by such additional documentation
as Singapore Agent may reasonably request in order to evidence or perfect a
first priority Lien securing the Singapore Obligations covering such promissory
notes or other evidence of indebtedness. 
If U.K. Borrower or any of its Material Subsidiaries shall hereafter
receive any promissory notes or other evidence of indebtedness with respect to
any amounts payable by any Foreign Subsidiary to U.K. Borrower or any of its
Material Subsidiaries, such promissory notes or other evidence of indebtedness
shall be promptly delivered to U.K. Agent, duly endorsed in such manner as U.K.
Agent shall request, and accompanied by such additional documentation as U.K.
Agent may reasonably request in order to evidence or perfect a first priority
Lien securing the U.K. Obligations covering such promissory notes or other
evidence of indebtedness.

 

8.                                       Negative Covenants.

 

Each Borrower covenants and agrees with
Agents and the Lenders that prior to the payment of all Obligations and the
termination of all Commitments it will not, and will not suffer or permit any
of its Subsidiaries to, do any of the following:

 

8.1                                 Borrowed Money Indebtedness.  Create, incur, suffer or permit to exist, or
assume or guarantee, directly or indirectly, or become or remain liable with
respect to any Borrowed Money Indebtedness, whether direct, indirect, absolute,
contingent or otherwise, except the following: (a) Borrowed Money
Indebtedness under this Agreement and the other Loan Documents and Borrowed
Money Indebtedness secured by Liens permitted by Section 8.2 hereof;
(b) the liabilities existing on the date of this Agreement and set forth
in Schedule 8.1 

 

76

 

hereto and all renewals, extensions and
replacements (but not increases) of any of the foregoing; (c) the Interest Rate
Risk Indebtedness and Currency Exchange Risk Indebtedness; (d)  purchase
money indebtedness (or financing under leases which, in accordance with GAAP
have been recorded or should be recorded as capital leases) and other secured
Borrowed Money Indebtedness not exceeding $50,000,000 at any one time
outstanding; (f) Permitted Subordinated Indebtedness; (g) Permitted Senior
Indebtedness; (h) subject to the terms of Section 7.3 hereof,
pre-existing Borrowed Money Indebtedness of any Person that becomes a
Subsidiary after the Effective Date in compliance with Section 8.9  (provided, however, that no such Borrowed
Money Indebtedness was incurred at the instigation of U.S. Borrower or any of
its Subsidiaries in contemplation of such acquisition); (i) Borrowed Money
Indebtedness constituting contingent liabilities permitted by Section 8.3;
and (j) other Borrowed Money Indebtedness not to exceed $10,000,000 at any one
time outstanding.

 

8.2                                 Liens. 
Create or suffer to exist any Lien upon any of its Property now owned or
hereafter acquired, or acquire any Property upon any conditional sale or other
title retention device or arrangement or any purchase money security agreement;
or in any manner directly or indirectly sell, assign, pledge or otherwise
transfer any of its Accounts or other Collateral; except Permitted Liens.

 

8.3                                 Contingent Liabilities.  Directly or indirectly guarantee the
performance or payment of, or purchase or agree to purchase, or assume or
contingently agree to become or be secondarily liable in respect of, any
obligation or liability of any other Person except for (a) recourse obligations
resulting from endorsement of negotiable instruments for collection in the
ordinary course of business and consistent with past practice; (b) obligations
disclosed to Agents in the financial statements delivered on or prior to the
Effective Date pursuant to Section 6.2 hereof  (and all renewals, extensions and replacements—but
not increases—of such obligations after the Effective Date); (c) contingent
liabilities with respect to those liabilities permitted under Sections 8.1
or 8.2 hereof (provided that, to the extent that such liabilities are
subordinated to the Obligations, such contingent liabilities shall be
subordinated to the Obligations on terms reasonably acceptable to the U.S.
Agent); (d) contingent liabilities with respect to leases and other contracts
or warranties and indemnities, in each case, not constituting Borrowed Money
Indebtedness, which have been or are undertaken or made in the ordinary course
of business; (e) contingent liabilities with respect to operating leases and
other obligations of Subsidiaries which do not constitute Borrowed Money
Indebtedness; (f) the undertaking in the ordinary course of business to
maintain working capital or equity capital of a Subsidiary or otherwise
maintain the net worth or solvency of a Subsidiary to the extent required to
maintain qualification and good standing; and (g) additional contingent
liabilities which do not exceed $10,000,000 in the aggregate at any time
outstanding.

 

8.4                                 Mergers, Consolidations and Dispositions of Assets.  In any single transaction
or series of transactions, directly or indirectly:

 

(a)                                  liquidate or dissolve; provided that any Subsidiary of U.S.
Borrower may liquidate, dissolve or take action to wind-up its operations if
(i) U.S. Borrower determines such action to be in the best interests of U.S.
Borrower and its Subsidiaries; (ii) any liquidating dividends are paid to U.S.
Borrower or to a 

 

77

 

wholly-owned Subsidiary of U.S. Borrower; and
(iii) U.S. Borrower gives Agents written notice of such action at least ten
(10) days prior to taking such action;

 

(b)                                 be a party to any merger or consolidation unless and so long as (i)
no Default or Event of Default has occurred that is then continuing; (ii)
immediately thereafter and giving effect thereto, no event will occur and be
continuing which constitutes a Default, (iii) if an Obligor is a party to such
transaction, an Obligor is the surviving Person; (iv) the surviving Person
ratifies and assumes each Loan Document to which any party to such merger was a
party; and (v) Agents are given at least 10 days’ prior written notice of such
merger or consolidation;

 

(c)                                  sell, convey or lease all or any part of its assets, except for (i)
sales or leases of Inventory in the ordinary course of business (including
transfers and dispositions of any assets which, in the reasonable judgment of
the applicable Person, are obsolete, worn out or otherwise no longer useful in
the conduct of such Person’s business); (ii) sales, leases or licenses of other
Property in the ordinary course of business; (iii) sales, leases or other
dispositions of Property outside the ordinary course of business having a fair
market value in an aggregate amount not to exceed, in the aggregate from and
after the date hereof, ten percent (10%) of Tangible Net Worth calculated as of
the date of the applicable sale or other disposition; (iv) sales, leases or
other dispositions of Property (whether or not Collateral) expressly permitted
by the other terms of this Agreement or any Loan Document; (v) conveyances
constituting investments in Subsidiaries permitted by Section 8.8; (vi)
transfers of assets (w) from any Subsidiary of U.K. Borrower to U.K. Borrower
or to another Subsidiary of U.K. Borrower, (x) from any Subsidiary of Singapore
Borrower to Singapore Borrower or to another Subsidiary of Singapore Borrower,
(y) from any Subsidiary of Canadian Borrower to Canadian Borrower or to another
Subsidiary of Canadian Borrower or (z) from any Subsidiary of U.S. Borrower
(other than a Foreign Subsidiary) to U.S. Borrower or to another Subsidiary of
U.S. Borrower (other than a Foreign Subsidiary) so long as, in each such case,
the Liens of the Security Documents are not affected thereby; (vii) leases,
subcharters or sublicenses of any Property (other than accounts receivable or
other Property comprising the Collateral) by U.S. Borrower to any of its
Subsidiaries or by any Subsidiary of U.S. Borrower to U.S. Borrower or any of
its other Subsidiaries; (viii) the Permitted Disposition; and (ix) dispositions
occurring as the result of a casualty event or condemnation, or

 

(d)                                 except for Liens in favor of Agents and except as provided in Schedule
8.4, pledge, transfer or otherwise dispose of any Equity Interest in any
Material Subsidiary or any Borrowed Money Indebtedness of any Material
Subsidiary or issue or permit any Subsidiary of U.S. Borrower to issue any
additional Equity Interest other than stock evidencing a Permitted Investment
or stock dividends (in each case, subject to a Lien in favor of Agents to the
extent required hereby).

 

8.5                                 Redemption, Dividends and Distributions.  Except as set forth on Schedule
8.5 hereof, at any time:  (a) redeem,
retire or otherwise acquire, directly or indirectly, any Equity Interest other
than Equity Interests in wholly-owned Subsidiaries or (b) make any
distributions of 

 

78

 

any Property or cash to the owner of any of
the Equity Interests in any Obligor, other than, in either case, Permitted
Dividends and Permitted Investments.

 

8.6                                 Nature of Business.  Change the nature of its business or enter
into any business which is substantially different from the business in which
it is presently engaged.

 

8.7                                 Transactions with Related Parties.  Enter into any transaction or agreement with
any officer, director or holder of any Equity Interest in any Obligor (or any
Affiliate of any such Person) unless the same is upon terms substantially
similar to those obtainable from wholly unrelated sources or is upon fair and
reasonable terms in the ordinary course of business consistent with past
practices; provided, however, no Obligor (or any Affiliate of an Obligor) shall
be prohibited from making any payment resulting 
from a Legal Requirement and/or entering into an agreement reflecting
the transaction giving rise to such payment.

 

8.8                                 Loans and Investments.  Make any loan, advance, extension of credit
or capital contribution to, or make or, except as permitted by Sections 8.1,
8.3, 8.4 or 8.9 hereof,  have
any Investment in, any Person, or make any commitment to make any such
extension of credit or Investment, except (a) Permitted Investments; (b) normal
and reasonable advances in the ordinary course of business to officers and
employees; (c) accounts receivable and accounts payable arising in the ordinary
course of business; (d) deposits in money market funds investing exclusively in
Permitted Investments; (e) Investments disclosed in the financial statements
delivered pursuant to Section 6.2; (f) Investments by any Obligor in any
other Obligor which is not a Foreign Subsidiary; (g) loans to and Investments
in Foreign Subsidiaries not to exceed, in the aggregate at any one time,
$200,000,000; (h) loans to and Investments in joint ventures in which the U.S.
Borrower or any of its Subsidiaries is a participant not to exceed, in the
aggregate at any one time, $100,000,000 (provided that any such joint venture
must be engaged in business lines which are substantially similar to the
business lines in which  the U.S.
Borrower and its Subsidiaries, or any one of them, are engaged as of the date
hereof); and (i) Investments received in connection with the bankruptcy or
reorganization of suppliers and customers and in settlement of delinquent
obligations of, and other disputes with, customers and suppliers arising in the
ordinary course of business.

 

8.9                                 Subsidiaries.  Form, create or acquire any Material
Subsidiary, except that U.S. Borrower (or any of its Subsidiaries) may form,
create or acquire a wholly-owned Material Subsidiary so long as (a) immediately
thereafter and giving effect thereto, no event will occur and be continuing
which constitutes a Default; (b) if such Material Subsidiary is not a Foreign
Subsidiary, such Material Subsidiary shall execute and deliver to each Agent
Guaranties in substantially the same form as the Guaranties executed
concurrently herewith by the Material Subsidiaries of U.S. Borrower which are
not Foreign Subsidiaries, (c) if such Material Subsidiary is a Material
Subsidiary of Canadian Borrowers, such Material Subsidiary shall execute and
deliver to Canadian Agent a Guaranty in substantially the same form as the
Guaranties executed concurrently herewith in favor of Canadian Agent, (d) if
such Material Subsidiary is a Material Subsidiary of U.K. Borrower, such
Material Subsidiary shall execute and deliver to U.K. Agent a Guaranty in
substantially the same form as the Guaranties executed concurrently herewith in
favor of U.K. Agent, (e) if such Material Subsidiary is a Material Subsidiary
of Singapore Borrower, such Material Subsidiary shall execute and deliver to
Singapore Agent a Guaranty in substantially the same form as the Guaranties
executed concurrently herewith in favor of

 

79

 

Singapore Agent, and (f) each such Material
Subsidiary shall execute and deliver (and shall cause the applicable owner(s)
of the Equity Interests in such Material Subsidiary to execute and deliver)
such Security Documents as the Agents may reasonably require in order to create
a valid, perfected, first priority Lien upon all Required U.S. Collateral,
Required Canadian Collateral, Required Singapore Collateral or Required U.K.
Collateral, as the case may be, securing the applicable Obligations.  Agents shall be given at least 10 days’ prior
written notice of such formation, creation or acquisition.  Notwithstanding the foregoing, no Foreign
Subsidiary may form, create or acquire a Subsidiary which is not a Foreign
Subsidiary, except for a Subsidiary (x) which is treated as a disregarded entity
for United States federal income tax purposes, (y) whose members are solely
Foreign Subsidiaries and (z) which owns no assets other than Equity Interests
in Foreign Subsidiaries.

 

8.10                           Organizational Documents.  Amend, modify, restate or supplement any of
its Organizational Documents if such action could reasonably be expected to
have a Material Adverse Effect.

 

8.11                           Unfunded Liabilities.  Incur any Unfunded Liabilities after the
Effective Date or allow any Unfunded Liabilities to arise or exist to an extent
which could reasonably be expected to have a Material Adverse Effect.

 

8.12                           Acquisitions.  Acquire any real Property or any material
personal Property after the Effective Date (other than an acquisition of real
or personal Property in the ordinary course of business which does not
constitute an acquisition of all or a substantial portion of the assets,
property and/or Equity Interests in and to any Person) unless Borrowers shall
have demonstrated to the satisfaction of the U.S. Agent on a pro forma basis
that, both before and after giving effect to the applicable acquisition, (i) no
Default or Event of Default exists or could be reasonably expected to arise as
a result of such acquisition, (ii) Borrowers have and will have at least
$20,000,000 in unused Commitments and unrestricted cash and cash equivalents
(on a consolidated basis), (iii) the acquisition is related to an existing line
of business and (iv) either (x) the Leverage Ratio is and will be less
than 2.00 to 1.00 or (y) each of (I) the aggregate  consideration paid in connection with any
single such acquisition shall not exceed ten percent (10%) of the Tangible Net
Worth of the U.S. Borrower and its consolidated Subsidiaries calculated as of
the last day of the most recently ended fiscal quarter as of the date of the
applicable acquisition and (II) the aggregate  consideration paid from and after the date
hereof in connection with acquisitions of Property permitted by this Section
(exclusive of acquisitions in the ordinary course of business) shall not exceed
$100,000,000.

 

8.13                           Negative Pledges.  Except for (a) any of the Loan Documents, (b)
customary provisions in leases, licenses, asset sale agreements and other
customary agreements not related to Borrowed Money Indebtedness and entered into
in the ordinary course of business or expressly permitted herein, and (c)
restrictions imposed by agreements governing Permitted Liens, enter into any
agreement or contract which limits or restricts in any way the granting of
Liens by U.S. Borrower or any of its Subsidiaries securing any of the
Obligations.

 

8.14                           Limitation on Capital Expenditures.  If, on the last day of any fiscal quarter,
the sum of aggregate unused Commitments and unrestricted cash and cash
equivalents (on a consolidated basis) is less than $20,000,000, permit
aggregate Capital Expenditures of the U.S. 

 

80

 

Borrower and its Subsidiaries during the
subsequent quarter to exceed gross depreciation for such quarter or permit cash
multi-client library investment (net of pre-funding) during such quarter to
exceed multi-client library revenue during such quarter minus
multi-client cash costs during such quarter.

 

8.15                           Swap Exposure.  Enter into (i) any program for reducing
exposure to currency exchange fluctuations or (ii) any program for hedging of
interest rate risk covering Borrowed Money Indebtedness unless, in either such
case, such program is entered into for protection against currency exchange or
interest rate risks, and not for speculative purposes.

 

8.16                           Material Subsidiaries.  U.S. Borrower shall not permit the aggregate
of the total assets or the total annual revenues of all Material Subsidiaries
which are Domestic Subsidiaries, Canadian Subsidiaries, Singapore Subsidiaries
or U.K. Subsidiaries to be less than 90% of the aggregate consolidated total
assets or the aggregate consolidated annual revenues of the U.S. Borrower and
its Subsidiaries as of the last day of any fiscal quarter.  U.S. Borrower shall not permit any of its
Foreign Subsidiaries or any of its Domestic Subsidiaries which are not Material
Subsidiaries to own any right, title or interest in and to the U.S. Land Data
Library.

 

9.                                       Defaults.

 

9.1                                 Events of Default.  If any one or more of the following events
(herein called “Events of Default”) shall occur and be continuing, then
any Agent may (and at the direction of the Majority Lenders, shall) do any or
all of the following:  (1) without
notice to any Borrower or any other Person, declare the applicable Commitments
terminated (whereupon the Commitments shall be terminated) and/or accelerate
the Termination Date to a specified date as early as the date of termination of
the applicable Commitments; (2) terminate any Letter of Credit allowing for
such termination, by sending a notice of termination as provided therein and
require the applicable Borrower to provide Cover for outstanding Letters of
Credit; (3) declare the principal amount then outstanding of and the unpaid
accrued interest on the Loans and Reimbursement Obligations and all fees and
all other amounts payable hereunder, under the Notes and under the other Loan
Documents to be forthwith due and payable, whereupon such amounts shall be and
become immediately due and payable, without notice (including, without limitation,
NOTICE OF ACCELERATION AND NOTICE OF INTENT
TO ACCELERATE), presentment, demand, protest or other formalities of
any kind, all of which are hereby expressly waived by Borrowers; provided that
in the case of the occurrence of an Event of Default with respect to any
Obligor referred to in clause (f), (g) or (h) of this Section 9.1,
the Commitments shall be automatically terminated and the principal amount then
outstanding of and unpaid accrued interest on the Loans and the Reimbursement
Obligations and all fees and all other amounts payable hereunder, under the
Notes and under the other Loan Documents shall be and become automatically and
immediately due and payable, without notice (including, without limitation, NOTICE OF ACCELERATION AND NOTICE OF INTENT TO
ACCELERATE), presentment, demand, protest or other formalities of
any kind, all of which are hereby expressly waived by Borrowers; and (4)
exercise any or all other rights and remedies available to any Agent or any
Lenders under the Loan Documents, at law or in equity:

 

(a)                                  Payments - (i) any Obligor
shall fail to make any payment or required prepayment of any installment of
principal on the Loans or any Reimbursement Obligation payable under the 

 

81

 

Notes, this Agreement or the other Loan
Documents when due or (ii) any Obligor fails to make any payment or required
payment of interest with respect to the Loans, any Reimbursement Obligation or
any other fee or amount under the Notes, this Agreement or the other Loan
Documents when due and, in the case of clause (ii) only, such failure to
pay continues unremedied for a period of three Business Days after invoice; or

 

(b)                                 Other Obligations - any
Obligor shall default in the payment when due of any principal of or interest
on any Borrowed Money Indebtedness having an outstanding principal amount of at
least $5,000,000 in the aggregate (other than the Loans and Reimbursement
Obligations) and such default shall continue beyond any applicable period of
grace and shall give rise to a right on the part of the holder of such Borrowed
Money Indebtedness to accelerate such Borrowed Money Indebtedness; or any event
or condition shall occur which results in the acceleration of the maturity of
any such Borrowed Money Indebtedness or enables the holder of any such  Borrowed Money Indebtedness or any Person
acting on such holder’s behalf to accelerate the maturity thereof and such
event or condition shall not be cured within any applicable period of grace; or

 

(c)                                  Representations and Warranties - any
written representation or warranty made or deemed made by or on behalf of any
Obligor in this Agreement or any other Loan Document or in any certificate
furnished or made by any Obligor to Agents or the Lenders in connection herewith
or therewith shall prove to have been incorrect, false or misleading in any
material respect as of the date thereof or as of the date as of which the facts
therein set forth were stated or certified or deemed stated or certified; or

 

(d)                                 Affirmative Covenants - (i)
default shall be made in the due observance or performance of any of the
covenants or agreements contained in Section 7.3 hereof or (ii)
default is made in the due observance or performance of any of the other
covenants and agreements contained in Section 7 hereof or any other
affirmative covenant of any Obligor contained in this Agreement or any other
Loan Document and such default continues unremedied for a period of 30 days
after (x) notice thereof is given by any Agent to U.S. Borrower or (y) such
default otherwise becomes known to any executive officer of U.S. Borrower,
whichever is earlier; or

 

(e)                                  Negative Covenants - default
is made in the due observance or performance by any Borrower of any of the
covenants or agreements contained in Section 8 of this Agreement or of
any other negative covenant of any Obligor contained in this Agreement or any
other Loan Document; or

 

(f)                                    Involuntary Bankruptcy or Receivership Proceedings - a receiver, receiver-manager, receiver and manager,
interim receiver, monitor, conservator, judicial manager, liquidator or trustee
of any Obligor or of any of its Property is appointed by the order or decree of
any court or agency or supervisory authority having jurisdiction, and such
decree or order remains in effect for more than 90 days; or any Obligor is
adjudicated bankrupt or insolvent; or any material portion of such Person’s
Property is sequestered by court order and such order remains in effect for
more than 90 days; or a petition is filed against any Obligor under any state
or federal bankruptcy, reorganization, arrangement, insolvency, readjustment or
debt, dissolution, liquidation or receivership law or any jurisdiction, whether
now or hereafter in effect, and is not dismissed within 90 days after such filing;
or

 

82

 

(g)                                 Voluntary Petitions or Consents - any
Obligor commences a voluntary case or other proceeding or order seeking
liquidation, reorganization, arrangement, insolvency, readjustment of debt,
dissolution, liquidation or other relief with respect to itself or its debts or
other liabilities under any bankruptcy, insolvency or other similar law now or
hereafter in effect or seeking the appointment of a trustee, receiver,
liquidator, custodian or other similar official of it or any substantial part
of its Property, or consents to any such relief or to the appointment of or
taking possession by any such official in an involuntary case or other
proceeding commenced against it, or fails generally to, or cannot, pay its
debts generally as they become due or takes any corporate action to authorize
or effect any of the foregoing; or

 

(h)                                 Assignments for Benefit of Creditors or Admissions of Insolvency - any Obligor makes an assignment for the benefit of its
creditors, or admits in writing its insolvency (including any admission of its
inability to pay its debts generally as they become due), or consents to the
appointment of a receiver, receiver-manager, interim receiver, monitor,
trustee, or liquidator of such Obligor or of all or any substantial part of its
Property; or

 

(i)                                     Undischarged Judgments - a
final non-appealable judgment or judgments for the payment of money exceeding,
in the aggregate, $5,000,000 (exclusive of amounts covered by insurance) is
rendered by any court or other Governmental Authority against any Obligor and
such Obligor does not discharge the same or provide for its discharge in
accordance with its terms, or procure a stay of execution thereof within 30
days from the date of entry thereof; or

 

(j)                                     Security Documents - any
Security Document after delivery thereof, shall cease for any reason, except to
the extent permitted by the terms of this Agreement or such Security Document,
to create a valid and perfected Lien of the first priority (subject to the
Permitted Liens), required thereby on any of the Collateral individually or in
the aggregate having a fair market value in excess of $1,000,000 purported to
be covered thereby and securing that portion of the Obligations which is
therein designated as being secured, or any Obligor (or any other Person who
may have granted or purported to grant such Lien) will so state in writing or,
after the creation thereof as herein provided, 
Agents shall cease to have valid, perfected, first priority Liens upon
the issued and outstanding Equity Interests in and to all Subsidiaries of U.S.
Borrower to the extent required by the terms of this Agreement; or

 

(k)                                  Change of Control; Ownership of Subsidiaries - (i) except for the Canadian Outside Equity Owners, any
Person other than U.S. Borrower or its Subsidiaries shall own any Equity
Interest in any Borrower or any Material Subsidiary or any Person other than an
Agent shall acquire any Lien on any Equity Interest in any Borrower or any
Material Subsidiary; or (ii) any Change of Control shall occur; or

 

(l)                                     Uninsured Loss - any Obligor shall be
the subject of any uninsured or unindemnified casualty losses exceeding, in the
aggregate, $10,000,000 in book value in any fiscal year; or

 

(m)                               Material Adverse Change – any event
shall have occurred which constitutes, in the good faith opinion of a  commercial banker acting reasonably, a
material adverse  effect  (i)  on
the validity or enforceability of any of the Loan Documents  or 
any  of the rights or remedies 

 

83

 

of the Agents or the Lenders thereunder  or 
(ii) on the assets or liabilities of U.S. Borrower and its Subsidiaries
on a consolidated basis.

 

9.2                                 Right of Setoff.  Upon the occurrence and during the
continuance of any Event of Default, each Lender is hereby authorized at any
time and from time to time, without notice to any Obligor (any such notice
being expressly waived by Borrowers and the other Obligors), to setoff and
apply any and all deposits, whether general or special, time or demand,
provisional or final (but excluding the funds held in accounts clearly
designated as escrow or trust accounts held by any Borrower or any other
Obligor for the benefit of Persons which are not Affiliates of any Obligor),
whether or not such setoff results in any loss of interest or other penalty,
and including without limitation all certificates of deposit, at any time held,
and any other funds or Property at any time held, and other Borrowed Money
Indebtedness at any time owing by such Lender to or for the credit or the account
of any Borrower or any other Obligor against any and all of the Obligations
irrespective of whether or not such Lender or any Agent will have made any
demand under this Agreement, the Notes or any other Loan Document.  Should the right of any Lender to realize
funds in any manner set forth hereinabove be challenged and any application of
such funds be reversed, whether by court order or otherwise, the Lenders shall
make restitution or refund to the applicable Borrower or the applicable other
Obligor, as the case may be, pro rata in accordance with their applicable
Commitments.  Each Lender agrees to
promptly notify the applicable Borrower and Agents after any such setoff and
application, provided that the failure to give such notice will not affect the
validity of such setoff and application. 
The rights of Agents and the Lenders under this Section are in addition
to other rights and remedies (including without limitation other rights of
setoff) which Agents or the Lenders may have. 
This Section is subject to the terms and provisions of Sections 4.6
and 11.7 hereof.  Notwithstanding
anything to the contrary contained herein or in any of the other Loan
Documents, any amounts realized under this Section which constitute an asset of
any Foreign Subsidiary shall only be applied to the payment of Canadian
Obligations, Singapore Obligations  or
U.K. Obligations.

 

9.3                                 Collateral Account.  U.S. Borrower hereby agrees, in addition to
the provisions of Section 9.1 hereof, that upon the occurrence and
during the continuance of any Event of Default, it shall, if requested by any
Agent or by the Majority Lenders (through any Agent), pay to U.S. Agent an
amount in immediately available funds equal to the then aggregate amount
available for drawings under all outstanding U.S. Letters of Credit, which
funds shall be held by U.S. Agent as Cover. 
Canadian Borrowers hereby agree, in addition to the provisions of Section
9.1 hereof, that upon the occurrence and during the continuance of any
Event of Default, it shall, if requested by any Agent or by the Majority
Lenders (through any Agent), pay to Canadian Agent an amount in immediately
available funds equal to the sum of the then aggregate amount available for
drawings under all outstanding Canadian Letters of Credit plus the unpaid
principal balance of all outstanding Bankers’ Acceptances, which funds shall be
held by Canadian Agent as Cover. 
Singapore Borrower hereby agrees, in addition to the provisions of Section
9.1 hereof, that upon the occurrence and during the continuance of any
Event of Default, it shall, if requested by any Agent or by the Majority
Lenders (through any Agent), pay to Singapore Agent an amount in immediately
available funds equal to the then aggregate amount available for drawings under
all outstanding Singapore Letters of Credit, which funds shall be held by
Singapore Agent as Cover.  U.K. Borrower
hereby agrees, in addition to the provisions of Section 9.1 hereof, that
upon the occurrence and during the continuance of any Event of Default,

 

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it shall, if requested by any Agent or by the
Majority Lenders (through any Agent), pay to U.K. Agent an amount in
immediately available funds equal to the then aggregate amount available for
drawings under all outstanding U.K. Letters of Credit, which funds shall be
held by U.K. Agent as Cover.

 

9.4                                 Preservation of Security for Letter of Credit Liabilities.  In the event that,
following (i) the occurrence of an Event of Default and the exercise of any
rights available to any Agent or any Lender under the Loan Documents, and (ii)
payment in full of the principal amount then outstanding of and the accrued
interest on the Loans and Reimbursement Obligations and fees and all other
amounts payable hereunder and under the Loan Documents and all other amounts
secured by the Security Documents, any Letters of Credit or Bankers’
Acceptances shall remain outstanding and undrawn upon, the applicable Agent
shall be entitled to hold (and each Borrower and each other Obligor hereby grants
and conveys to Agent a security interest in and to) all cash or other Property
(“Proceeds of Remedies”) realized or arising out of the exercise of any
rights available under the Loan Documents, at law or in equity, including,
without limitation, the proceeds of any foreclosure, as collateral for the
payment of any amounts due or to become due under or in respect of such Letters
of Credit and/or such Bankers’ Acceptances. 
Such Proceeds of Remedies shall be held for the ratable benefit of the
applicable Lenders; provided, however, that any cash and other liquid assets in
excess of the aggregate Bankers’ Acceptance Liabilities and Letter of Credit
Liabilities shall be promptly paid over to the applicable Obligor.  The rights, titles, benefits, privileges,
duties and obligations of the applicable Agent with respect thereto shall be
governed by the terms and provisions of this Agreement and, to the extent not
inconsistent with this Agreement, the applicable Security Documents.  The applicable Agent may, but shall have no
obligation to, invest any such Proceeds of Remedies in such manner as such
Agent, in the exercise of its sole discretion, deems appropriate.  Such Proceeds of Remedies shall be applied to
Reimbursement Obligations arising in respect of any such Letters of Credit, the
payment of any Lender’s obligations under any such Letter of Credit and/or the
Obligations relating to any such Bankers’ Acceptance when such Letter of Credit
is drawn upon or such Bankers’ Acceptance matures, as the case may be.  Nothing in this Section shall cause or permit
an increase in the maximum amount of the Obligations permitted to be
outstanding from time to time under this Agreement.  Notwithstanding anything to the contrary
contained herein or in any of the other Loan Documents, any amounts realized
under this Section which constitute an asset of any Foreign Subsidiary shall
only be applied to the payment of Canadian Obligations, Singapore Obligations
or U.K. Obligations.

 

9.5                                 Currency Conversion After Maturity.  At any time following the occurrence of an
Event of Default and the acceleration of the maturity of the Canadian
Obligations pursuant to Section 9.1, the Canadian Lenders shall be
entitled to convert, with two (2) Business Days’ prior notice to Canadian
Borrowers, any and all or any part of the then unpaid and outstanding LIBOR
Borrowings and Base Rate Borrowings of the Canadian Borrowers to Canadian Prime
Loans.  Any such conversion shall be
calculated so that the resulting Canadian Prime Loans shall be the equivalent
on the date of conversion of the amount of Dollars so converted.  Any accrued and unpaid interest denominated
in Dollars at the time of any such conversion shall be similarly converted to
Canadian Dollars, and such Canadian Prime Loans and accrued and unpaid interest
thereon shall thereafter bear interest in accordance with the terms hereof.

 

85

 

9.6                                 Remedies Cumulative.  No remedy, right or power conferred upon any
Agent or any Lender is intended to be exclusive of any other remedy, right or
power given hereunder or now or hereafter existing at law, in equity, or
otherwise, and all such remedies, rights and powers shall be cumulative.

 

10.                                 Agents.

 

10.1                           Appointment, Powers and Immunities.  Each U.S. Lender hereby irrevocably appoints
and authorizes U.S. Agent to act as its agent hereunder, under the U.S. Letters
of Credit and under the other Loan Documents with such powers as are
specifically delegated to U.S. Agent by the terms hereof and thereof, together
with such other powers as are reasonably incidental thereto.  Each Canadian Lender hereby irrevocably
appoints and authorizes Canadian Agent to act as its agent hereunder, under the
Canadian Letters of Credit and under the other Loan Documents with such powers
as are specifically delegated to Canadian Agent by the terms hereof and
thereof, together with such other powers as are reasonably incidental
thereto.    Each Singapore Lender hereby
irrevocably appoints and authorizes Singapore Agent to act as its agent
hereunder, under the Singapore Letters of Credit and under the other Loan
Documents with such powers as are specifically delegated to Singapore Agent by
the terms hereof and thereof, together with such other powers as are reasonably
incidental thereto.  Each U.K. Lender
hereby irrevocably appoints and authorizes U.K. Agent to act as its agent
hereunder, under the U.K. Letters of Credit and under the other Loan Documents
with such powers as are specifically delegated to U.K. Agent by the terms
hereof and thereof, together with such other powers as are reasonably
incidental thereto.  Any Loan Documents
executed in favor of any Agent shall be held by such Agent for the ratable
benefit of the applicable Lenders. None of the Agents (“Agents” as used in this
Section 10 shall include reference to their Affiliates and their own and
their Affiliates’ respective officers, shareholders, directors, employees and
agents) (a) shall have any duties or responsibilities except those expressly
set forth in this Agreement, the Letters of Credit, and the other Loan
Documents, and shall not by reason of this Agreement or any other Loan Document
be a trustee or fiduciary for any Lender; (b) shall be responsible to any
Lender for any recitals, statements, representations or warranties contained in
this Agreement, the Letters of Credit or any other Loan Document, or in any
certificate or other document referred to or provided for in, or received by
any of them under, this Agreement, the Letters of Credit or any other Loan Document,
or for the value, validity, effectiveness, genuineness, enforceability,
execution, filing, registration, collectibility, recording, perfection,
existence or sufficiency of this Agreement, the Letters of Credit, or any other
Loan Document or any other document referred to or provided for herein or
therein or any Property covered thereby or for any failure by any Obligor or
any other Person to perform any of its obligations hereunder or thereunder, or
shall have any duty to inquire into or pass upon any of the foregoing matters;
(c) shall be required to initiate or conduct any litigation or collection
proceedings hereunder or under the Letters of Credit or any other Loan Document
except to the extent requested and adequately indemnified by the Majority Lenders;
(d) shall be responsible for any mistake of law or fact or any action taken or
omitted to be taken by it hereunder or under the Letters or Credit or any other
Loan Document or any other document or instrument referred to or provided for
herein or therein or in connection herewith or therewith, including, without
limitation, pursuant to its own negligence, except for its own gross negligence
or willful misconduct; (e) shall be bound by or obliged to recognize any
agreement among or between any Borrower and any Lender to which such Agent is
not a party, regardless of whether such Agent has knowledge of the existence of
any such 

 

86

 

agreement or the terms and provisions
thereof; (f) shall be charged with notice or knowledge of any fact or
information not herein set out or provided to such Agent in accordance with the
terms of this Agreement or any other Loan Document; (g) shall be responsible
for any delay, error, omission or default of any mail, telegraph, cable or
wireless agency or operator, and (h) shall be responsible for the acts or
edicts of any Governmental Authority. 
Any Agent may employ agents and attorneys-in-fact and none of the Agents
shall be responsible for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care.  Without in any way limiting any of the
foregoing, each Lender acknowledges that none of the Agents (nor any Issuer)
shall have greater responsibility in the operation of the Letters of Credit
than is specified in the Uniform Customs and Practice for Documentary Credits
(1993 Revision, International Chamber of Commerce Publication No. 500).  In any foreclosure proceeding concerning any
Collateral, each holder of an Obligation if bidding for its own account or for
its own account and the accounts of other Lenders is prohibited from including
in the amount of its bid an amount to be applied as a credit against the
Obligations held by it or the Obligations held by the other Lenders; instead,
such holder must bid in cash only. 
However, in any such foreclosure proceeding, (i) U.S. Agent may (but
shall not be obligated to) submit a bid for all U.S. Lenders (including itself)
in the form of a credit against the U.S. Obligations, and U.S. Agent or its
designee may (but shall not be obligated to) accept title to such collateral
for and on behalf of all U.S. Lenders, (ii) 
Canadian Agent may (but shall not be obligated to) submit a bid for all
Canadian Lenders (including itself) in the form of a credit against the
Canadian Obligations, and Canadian Agent or its designee may (but shall not be
obligated to) accept title to such collateral for and on behalf of all Canadian
Lenders, (iii) Singapore Agent may (but shall not be obligated to) submit a bid
for all Singapore Lenders (including itself) in the form of a credit against
the Singapore Obligations, and Singapore Agent or its designee may (but shall
not be obligated to) accept title to such collateral for and on behalf of all
Singapore Lenders, and (iv) U.K. Agent may (but shall not be obligated to)
submit a bid for all U.K. Lenders (including itself) in the form of a credit
against the U.K. Obligations, and U.K. Agent or its designee may (but shall not
be obligated to) accept title to such collateral for and on behalf of all U.K.
Lenders.

 

10.2                           Reliance.  Each Agent shall be entitled to rely upon any
certification, notice or other communication (including any thereof by
telephone, telegram or cable) reasonably believed by it to be genuine and
correct and to have been signed or sent by or on behalf of the proper Person or
Persons, and upon advice and statements of legal counsel (which may be counsel
for any Borrower), independent accountants and other experts selected by such
Agent.   None of the Agents shall be
required in any way to determine the identity or authority of any Person
delivering or executing the same.  As to
any matters not expressly provided for by this Agreement, the Letters of
Credit, or any other Loan Document, each Agent shall in all cases be fully
protected in acting, or in refraining from acting, hereunder and thereunder in
accordance with instructions of the Majority Lenders, and any action taken or
failure to act by U.S. Agent pursuant thereto shall be binding on all of the U.S.
Lenders, any action taken or failure to act by Canadian Agent pursuant thereto
shall be binding on all of the Canadian Lenders, any action taken or failure to
act by Singapore Agent pursuant thereto shall be binding on all of the
Singapore Lenders and any action taken or failure to act by U.K. Agent pursuant
thereto shall be binding on all of the U.K. Lenders.  Pursuant to written instructions of the
Majority Lenders, the Agents shall have the authority to execute releases of
the Security Documents on behalf of the Lenders without the joinder of any
Lender.  If any order, writ, judgment or
decree shall be made or entered by any court affecting the rights, duties and
obligations of any Agent under this 

 

87

 

Agreement or any other Loan Document, then
and in any of such events such Agent is authorized, in its sole discretion, to
rely upon and comply with such order, writ, judgment or decree which it is
advised by legal counsel of its own choosing is binding upon it under the terms
of this Agreement, the relevant Loan Document or otherwise; and if such Agent
complies with any such order, writ, judgment or decree, then it shall not be
liable to any Lender or to any other Person by reason of such compliance even
though such order, writ, judgment or decree may be subsequently reversed,
modified, annulled, set aside or vacated.

 

10.3                           Defaults.  None of the Agents shall be deemed to have
knowledge of the occurrence of a Default (other than the non-payment of
principal of or interest on Loans or Reimbursement Obligations) unless such
Agent has received notice from a Lender or a Borrower specifying such Default
and stating that such notice is a “Notice of Default.”  In the event that any Agent receives such a
Notice of Default, such Agent shall give prompt notice thereof to the Lenders
(and shall give each Lender prompt notice of each such non-payment).  Each Agent shall (subject to Section 10.7
hereof) take such action with respect to such Notice of Default as shall be
directed by the Majority Lenders and within its rights under the Loan Documents
and at law or in equity, provided that, unless and until an Agent shall have
received such directions, such Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, permitted hereby with respect
to such Notice of Default as it shall deem advisable in the best interests of
the Lenders and within its rights under the Loan Documents, at law or in
equity.

 

10.4                           Material Written Notices.  In the event that any Agent receives any
written notice of a material nature from any Borrower or any Obligor under the
Loan Documents, such Agent shall promptly inform each of the Lenders thereof.

 

10.5                           Rights as a Lender.  With respect to their applicable Commitments
and the Obligations, each of Wells Fargo, HSBC Canada, HSBC Singapore and HSBC
U.K., in its capacity as  a Lender
hereunder, shall have the same rights and powers hereunder as any other Lender
and may exercise the same as though it were not acting in its agency capacity,
and the term “Lender” or “Lenders” shall, unless the context otherwise
indicates, include each Agent in its individual capacity.  Each Agent may (without having to account
therefor to any Lender) accept deposits from, lend money to and generally
engage in any kind of banking, trust, letter of credit, agency or other
business with any Borrower (and any of their Affiliates) as if it were not
acting as an Agent, and each Agent may accept fees and other consideration from
any Borrower (in addition to the fees heretofore agreed to between any Borrower
and any Agent) for services in connection with this Agreement or otherwise
without having to account for the same to the Lenders.

 

10.6                           Indemnification.  The Canadian Lenders, the U.S. Lenders, Singapore
Lenders  and U.K. Lenders, respectively,
agree to indemnify Canadian Agent, U.S. Agent, Singapore Agent and U.K. Agent,
respectively  (to the extent not
reimbursed under Section 2.2(c), Section 11.3 or Section 11.4
hereof, but without limiting the obligations of any Borrower under said Sections
2.2(c), 11.3 and 11.4), ratably in accordance with the sum of
the applicable Lenders’ respective Canadian Commitments, U.S. Commitments,
Singapore Commitments and U.K. Commitments, for any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind and nature whatsoever, REGARDLESS OF WHETHER CAUSED IN WHOLE OR IN PART BY
THE 

 

88

 

NEGLIGENCE OF ANY INDEMNIFIED
PARTIES, which may be imposed on,
incurred by or asserted against the applicable Agent in any way relating to or
arising out of this Agreement, the Letters of Credit or any other Loan Document
or any other documents contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby (including, without limitation, the
costs and expenses which any Borrower is obligated to pay under Sections
2.2(c), 11.3 and 11.4 hereof, interest, penalties, attorneys’
fees and amounts paid in settlement, but excluding, unless a Default has
occurred and is continuing, normal administrative costs and expenses incident
to the performance of its agency duties hereunder) or the enforcement of any of
the terms hereof or thereof or of any such other documents; provided that no
Lender shall be liable for any of the foregoing to the extent they arise from
the gross negligence or willful misconduct of the party to be indemnified.  The obligations of the Lenders under this Section
10.6 shall survive the termination of this Agreement and the repayment of
the Obligations.

 

10.7                           Non-Reliance on Agents and Other Lenders.  Each Lender agrees that it
has received current financial information with respect to each Borrower and
each other Obligor and that it has, independently and without reliance on any
Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis of each Borrower and each
other Obligor and decision to enter into this Agreement and that it will,
independently and without reliance upon any Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own analysis and decisions in taking or not taking
action under this Agreement or any of the other Loan Documents.  None of the Agents shall be required to keep
itself informed as to the performance or observance by any Obligor of this
Agreement, the Letters of Credit or any of the other Loan Documents or any
other document referred to or provided for herein or therein or to inspect the
properties or books of any Obligor. 
Except for notices, reports and other documents and information
expressly required to be furnished to the Lenders by an Agent hereunder, under
the Letters of Credit or the other Loan Documents, none of the Agents shall
have any duty or responsibility to provide any Lender with any credit or other
information concerning the affairs, financial condition or business of any
Obligor (or any of their affiliates) which may come into the possession of any
Agent.

 

10.8                           Failure to Act.  Except for action expressly required of an
Agent hereunder, under the Letters of Credit or under the other Loan Documents,
each Agent shall in all cases be fully justified in failing or refusing to act
hereunder and thereunder unless it shall receive further assurances to its
satisfaction by the Lenders of their indemnification obligations under Section
10.6 hereof against any and all liability and expense which may be incurred
by it by reason of taking or continuing to take any such action.

 

10.9                           Resignation or Removal of Agent.  Subject to the appointment and acceptance of
a successor Agent  as provided below,
U.S. Agent, Canadian  Agent, Singapore
Agent and U.K. Agent, respectively,  may
resign at any time by giving notice thereof to the U.S. Lenders, the Canadian
Lenders, Singapore Lenders and U.K. Lenders, respectively,  and to U.S. Borrower, Canadian Borrowers,
Singapore Lender and U.K. Borrower, respectively.  Any Agent may be removed at any time with or
without cause by the Majority Lenders; provided, that such Agent shall continue
as U.S. Agent, Canadian Agent, Singapore Agent or U.K. Agent, as the case may
be,  until such time as any successor
shall have accepted appointment hereunder as U.S. Agent, Canadian Agent,
Singapore Agent or U.K. Agent, as the case may be.  Upon any such 

 

89

 

resignation or removal, (i) the Majority
Lenders without the consent of any Borrower shall have the right to appoint a
successor U.S. Agent, Canadian Agent, Singapore Agent or U.K. Agent, as the
case may be, so long as such successor U.S. Agent, Canadian Agent, Singapore
Agent or U.K. Agent, as the case may be, is also a Lender at the time of such
appointment and (ii) the Majority Lenders shall have the right to appoint a
successor U.S. Agent, Canadian Agent, Singapore Agent or U.K. Agent, as the
case may be, that is not a Lender at the time of such appointment so long as Borrowers
consent to such appointment (which consent shall not be unreasonably withheld)
and the successor Agent delivers to the applicable Borrower the forms required
by Section 4.1(i) on or before the date of acceptance of its appointment
as successor Agent.  If no successor U.S.
Agent, Canadian Agent, Singapore Agent or U.K. Agent, as the case may be, shall
have been so appointed by the Majority Lenders and accepted such appointment
within 30 days after the retiring U.S. Agent’s, Canadian Agent’s, Singapore Agent’s
or U.K. Agent’s, as the case may be, giving of notice of resignation or the
Majority Lenders’ removal of the retiring U.S. Agent, Canadian Agent, Singapore
Agent or U.K. Agent, as the case may be, then the retiring Agent may, on behalf
of the applicable Lenders, appoint a successor U.S. Agent, Canadian Agent,
Singapore Agent or U.K. Agent, as the case may be, without the necessity of any
consent on the part of any Borrower or any Lender.  Any successor U.S. Agent shall be a bank
which has an office in the United States and a combined capital and surplus of
at least $250,000,000, any successor Canadian Agent shall be a bank which has
an office in Canada and a combined capital and surplus of at least
C$250,000,000, any successor Singapore Agent shall be a bank which has an
office in Singapore and a combined capital and surplus of at least $200,000,000
Singapore Dollars and any successor U.K. Agent shall be a bank which has an
office in the United Kingdom and a combined capital and surplus of at least £100,000,000.  Upon the acceptance of any appointment as
U.S. Agent, Canadian Agent, Singapore Agent or U.K. Agent, as the case may be,
hereunder by a successor Agent, such successor Agent shall thereupon succeed to
and become vested with all the rights, powers, privileges and duties of the
retiring Agent and the retiring Agent shall be discharged from its duties and
obligations hereunder and under any other Loan Documents.  Such successor Agent shall promptly specify by
notice to Borrowers its Principal Office referred to in Section 3.1 and Section
4 hereof.  After any retiring Agent’s
resignation or removal hereunder as an Agent, the provisions of this Section
10 shall continue in effect for its benefit in respect of any actions taken
or omitted to be taken by it while it was acting as Agent.

 

10.10                     No Partnership.  Neither the execution and delivery of this
Agreement nor any of the other Loan Documents nor any interest the Lenders,
Agents or any of them may now or hereafter have in all or any part of the Obligations
shall create or be construed as creating a partnership, joint venture or other
joint enterprise between the Lenders or among the Lenders and any Agent.  The relationship between the Lenders, on the
one hand, and any Agent, on the other, is and shall be that of principals and
agent only, and nothing in this Agreement or any of the other Loan Documents
shall be construed to constitute any Agent as trustee or other fiduciary for
any Lender or to impose on any Agent any duty, responsibility or obligation
other than those expressly provided for herein and therein.

 

10.11                     Authority of Agent.  Each Lender acknowledges that the rights and
responsibilities of each Agent under this Agreement and the Loan Documents with
respect to any action taken by such Agent or the exercise or non-exercise by
any Agent of any option, right, request, judgment or other right or remedy
provided for herein or resulting or arising out of this 

 

90

 

Agreement and/or the other Loan Documents
shall, as between such Agent and the Lenders, be governed by this Agreement and
by such other agreements with respect thereto as may exist from time to time
among them, but, as between such Agent and the Obligors, such Agent shall be
conclusively presumed to be acting as agent for the applicable Lenders with
full and valid authority so to act or refrain from acting; and each Obligor
shall not be under any obligation, or entitlement, to make any inquiry
respecting such authority.

 

11.                                 Miscellaneous.

 

11.1                           Waiver.  No waiver of any Default or Event of Default
shall be a waiver of any other Default or Event of Default.  No failure on the part of any Agent or any
Lender to exercise and no delay in exercising, and no course of dealing with
respect to, any right, power or privilege under any Loan Document shall operate
as a waiver thereof, nor shall any single or partial exercise of any right,
power or privilege thereunder preclude any other or further exercise thereof or
the exercise of any other right, power or privilege.  The remedies provided in the Loan Documents
are cumulative and not exclusive of any remedies provided by law or in equity.

 

11.2                           Notices.  All notices and other communications provided
for herein (including, without limitation, any modifications of, or waivers or
consents under, this Agreement) shall be given or made by telegraph, telecopy
(confirmed by mail), cable or other writing and telecopied, telegraphed,
cabled, mailed or delivered to the intended recipient at the “Address for Notices”
specified below its name on the signature pages hereof (or provided for in an
Assignment and Acceptance); or, as to any party hereto, at such other address
as shall be designated by such party in a notice (given in accordance with this
Section) (i) as to any Borrower, to Agents, (ii) as to U.S. Agent, to U.S.
Borrower and to each U.S. Lender, (iii) as to Canadian Agent, to Canadian
Borrowers and to each Canadian Lender, (iv) as to U.K. Agent, to U.K. Borrower
and to each U.K. Lender,  (v) as to
Singapore Agent, to Singapore Borrower and to each Singapore Lender, (vi) as to
any U.S. Lender, to U.S. Borrower and Agents, (vii) as to any Canadian Lender,
to Canadian Borrowers and Agents, (viii) as to any Singapore Lender, to
Singapore Borrower and Agents and (ix) as to any U.K. Lender, to U.K. Borrower
and Agents.  Except as otherwise provided
in this Agreement, all such notices or communications shall be deemed to have
been duly given when (a) transmitted by telecopier or delivered to the
telegraph or cable office, (b) personally delivered, (c) one Business Day after
deposit with an overnight mail or delivery service, postage or carriage charges
prepaid or (d) three Business Days’ after deposit in a receptacle maintained by
the United States Postal Service or Canada Post or the official postal service
of the United Kingdom or Singapore, as the case may be, postage prepaid,
registered or certified mail, return receipt requested, in each case given or
addressed as aforesaid.

 

11.3                           Expenses, Etc.  Whether or not any Loan is ever made or any
Bankers’ Acceptances ever accepted and purchased or any Letter of Credit ever
issued, Borrowers shall pay or reimburse within 10 Business Days after written
demand (a) (i) U.S. Agent for paying the reasonable fees and expenses of legal
counsel to U.S. Agent in the United States, in Canada and in the United
Kingdom, (ii) Canadian Agent for paying the reasonable fees and expenses of
legal counsel to Canadian Agent in Canada, (iii) Singapore Agent for paying the
reasonable fees and expenses of legal counsel to Singapore Agent in Singapore
and (iv) U.K. Agent for paying the reasonable fees and expenses of legal
counsel to U.K. Agent in the United Kingdom, in connection with the
preparation, negotiation, execution and delivery of this Agreement 

 

91

 

(including the exhibits and schedules
hereto), the Security Documents and the other Loan Documents and the making of
the Loans and the acceptance and purchase of Bankers’ Acceptances and the
issuance of Letters of Credit hereunder, and any modification, supplement or
waiver of any of the terms of this Agreement, the Letters of Credit or any
other Loan Document; (b) any Agent for any reasonable and customary search
fees, collateral audit fees and appraisal fees; (c) any Agent for reasonable
out-of-pocket expenses incurred in connection with the preparation,
documentation, administration and syndication of the Loans or any of the Loan
Documents (including, without limitation, the advertising, marketing, printing,
publicity, duplicating, mailing and similar expenses)  and Letter of Credit Liabilities; (d) any
Agent for paying all required transfer, stamp, documentary or other similar
taxes, assessments or charges levied by any governmental or revenue authority
in respect of this Agreement, any Letter of Credit or any other Loan Document
or any other document referred to herein or therein; (e) any Agent for paying
all costs, expenses, taxes, assessments and other charges incurred in
connection with any filing, registration, recording or perfection of any Lien
contemplated by this Agreement, any Security Document or any document referred
to herein or therein; and (f) following the occurrence and during the
continuation of an Event of Default, any Lender or any Agent for paying all
amounts reasonably expended, advanced or incurred by such Lender or such Agent
to satisfy any obligation of any Obligor under this Agreement or any other Loan
Document, to protect the Collateral, to collect the Obligations or to enforce,
protect, preserve or defend the rights of the Lenders or Agents under this
Agreement or any other Loan Document, including, without limitation, reasonable
fees and expenses incurred in connection with such Lender’s or such Agent’s
participation as a member of a creditor’s committee in a case commenced under
the Bankruptcy Code or the Insolvency Act 1986 (England and Wales) or other
similar law, fees and expenses incurred in connection with lifting the
automatic stay prescribed in § 362 of the Bankruptcy Code or the
Insolvency Act 1986 (England and Wales) and fees and expenses incurred in
connection with any action pursuant to § 1129 of the Bankruptcy Code or
the Insolvency Act 1986 (England and Wales) and all other reasonable and
customary out-of-pocket expenses incurred by such Lender or such Agent in
connection with such matters, together with interest thereon at the Past Due
Rate applicable to U.S. Revolving Loans on each such amount from the due date
until the date of reimbursement to such Lender or such Agent.

 

11.4                           Indemnification.  Subject to Section 4.2, Borrowers,
jointly and severally,  shall indemnify
each Agent, each Lender and each affiliate thereof and their respective
directors, officers, employees and agents from, and hold each of them harmless
against, any and all losses, liabilities, claims or damages (excluding taxes,
which shall be governed solely by Section 4.1, Section 11.3 and Section
11.16) to which any of them may become subject, REGARDLESS OF WHETHER CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE OF ANY
INDEMNIFIED PARTIES, insofar as such losses, liabilities, claims or
damages arise out of or result from any (i) actual or proposed use by any
Borrower of the proceeds of any extension of credit (whether a Loan, a Bankers’
Acceptance or a Letter of Credit) by any Lender hereunder; (ii) breach by
any Obligor of this Agreement or any other Loan Document; (iii) violation
by any Obligor of any Legal Requirement; or (iv) investigation, litigation
or other proceeding relating to any of the foregoing, and Borrowers, jointly
and severally,  shall reimburse each
Agent, each Lender, and each Affiliate thereof and their respective directors,
officers, employees and agents, upon demand for any reasonable and customary
expenses (including reasonable and customary legal fees) incurred in connection
with any such investigation or proceeding; provided, however, 

 

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that none of the Borrowers shall have any
obligations pursuant to this Section with respect to any losses, liabilities,
claims, damages or expenses incurred by the Person seeking indemnification by
reason of the gross negligence or willful misconduct of that Person or with
respect to any disputes between or among any of Agents, Lenders and
Issuers.  Nothing in this Section is
intended to limit the obligations of any Borrower under any other provision of
this Agreement.  Each Agent and each
Lender, respectively, shall indemnify Borrowers and hold Borrowers harmless
from and against the gross negligence or willful misconduct of such Agent or
such Lender, as the case may be.  Nothing
in this Section shall render Canadian Borrowers, Singapore Borrower or U.K.
Borrower liable in respect of the U.S. Obligations.  In the case of any indemnification hereunder,
the applicable Agent or the respective Lender, as appropriate, shall give
written notice to the applicable Borrower of any such claim or demand being
made against an indemnified person and the applicable Borrower shall have the
non-exclusive right to join in the defense against any such claim or demand,
provided that if such Borrower provides a defense, the indemnified person shall
bear its own cost of defense unless there is a conflict of interests between
such Borrower and such indemnified person. 
No indemnified person may settle any claim to be indemnified without the
consent of the applicable Borrower, such consent not to be unreasonably
withheld or delayed.

 

11.5                           Amendments, Etc.  No amendment or modification of this
Agreement, the Notes or any other Loan Document shall in any event be effective
against any Borrower or any other Obligor party thereto unless the same shall
be agreed or consented to in writing by such Person.  No amendment, modification or waiver of any
provision of this Agreement, the Notes or any other Loan Document, nor any
consent to any departure by any Obligor therefrom, shall in any event be
effective against the Lenders unless the same shall be agreed or consented to
in writing by the Majority Lenders, and each such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, that no amendment, modification, waiver or consent shall,
unless in writing and signed by each Lender affected thereby, do any of the following:  (a) increase any U.S. Commitments, Canadian
Commitments, Singapore Commitments or U.K. Commitments of any of the Lenders
(or reinstate any termination or reduction of the U.S. Commitments, Canadian
Commitments, Singapore Commitments or U.K. Commitments), or subject any of the
Lenders to any additional obligations; (b) reduce the principal of, or interest
on, any Loan, Reimbursement Obligation, fee or other amount due hereunder; (c)
postpone or extend the Revolving Loan Maturity Date, the Termination Date, the
Availability Period or any scheduled date fixed for any payment of principal
of, or interest on, any Loan, Reimbursement Obligation, fee or other sum to be
paid hereunder or waive any Event of Default described in Section 9.1(a)
hereof; (d) change the percentage of any of the U.S. Commitments, Canadian
Commitments, Singapore Commitments  or
U.K. Commitments, as the case may be, or of the aggregate unpaid principal
amount of Obligations, or the percentage of Lenders, which shall be required for
the Lenders or any of them to take any action under this Agreement; (e) change
any provision contained in Sections 2.2(c), 7.9, 11.3 or 11.4
hereof or this Section 11.5; (f) release any Person from liability under
a Guaranty or release all or substantially all of the security for the
Obligations or release Collateral (exclusive of Collateral with respect to
which any Agent is obligated to provide a release pursuant to this Agreement or
any of the other Loan Documents or by law) in any one (1) calendar year
ascribed an aggregate value on the most recent financial statements of the
applicable Borrower delivered to Agents in excess of $1,000,000, and (g) modify
the provisions of Sections 4.1(b) or 4.3 hereof regarding pro
rata application of amounts after an Event of 

 

93

 

Default shall have occurred and be
continuing.  Notwithstanding anything in
this Section 11.5 to the contrary, no amendment, modification, waiver or
consent shall be made with respect to Section 10 without the consent of
U.S. Agent to the extent it affects U.S. Agent, as U.S. Agent or Canadian Agent
to the extent it affects Canadian Agent, as Canadian Agent, Singapore Agent to
the extent it affects Singapore Agent, as Singapore Agent, or U.K. Agent to the
extent it affects U.K. Agent, as U.K. Agent.

 

11.6                           Successors and Assigns.

 

(a)                                  This Agreement shall be binding upon and inure to the benefit of
Borrowers, Agents and the Lenders and their respective successors and assigns; provided,
however, that, except as permitted by Section 8.4 hereof, no
Borrower may assign or transfer any of its rights or obligations hereunder
without the prior written consent of all of the Lenders, and any such
assignment or transfer without such consent shall be null and void.  Each Lender may sell participations to any
Person in all or part of any Loan or Bankers’ Acceptance, or all or part of its
Notes, U.S. Commitments, Canadian Commitments, Singapore Commitments or U.K.
Commitments, as the case may be, or interests in Letters of Credit or Bankers’
Acceptances, in which event, without limiting the foregoing, the provisions of
the Loan Documents shall inure to the benefit of each purchaser of a
participation; provided, however, the pro  rata
treatment of payments, as described in Section 4.3 hereof and rights to
compensation under Section 3.3 hereof, shall be determined as if such
Lender had not sold such participation; provided further that no Obligor shall
have any liability or obligation with respect to any increased costs, expenses
or liabilities arising by reason of any such participation.  No Lender that sells one or more
participations to any Person shall be relieved by virtue of such participation
from any of its obligations to Borrowers under this Agreement.  In the event any Lender shall sell any
participation, such Lender shall retain the sole right and responsibility to
enforce the obligations of Borrowers hereunder, including, without limitation,
the right to approve any amendment, modification or waiver of any provision of
this Agreement other than amendments, modifications or waivers with respect to
(i) any fees payable hereunder to the Lenders, (ii) the amount of principal or
the rate of interest payable on, or the dates fixed for the scheduled repayment
of principal of, any of the Obligations and (iii) the release of the Liens on
all or substantially all of the Collateral.

 

(b)                                 Each U.S. Lender may assign to one or more U.S. Lenders or any
other Person all or a portion of its interests, rights and obligations under
this Agreement; provided, however, that (i) the aggregate amount
of the U.S. Commitments of the assigning U.S. Lender subject to each such
assignment shall in no event be less than $5,000,000 and (ii) other than in the
case of an assignment to another U.S. Lender (that is, at the time of the
assignment, a party hereto) or to a Lender Affiliate of such U.S. Lender or to
a Federal Reserve Bank, Agents and, so long as no Event of Default shall have
occurred and be continuing, U.S. Borrower must each give its prior written
consent, which consents shall not be unreasonably withheld.  Each Canadian Lender may assign to one or
more Canadian  Lenders or any other
Person all or a portion of its interests, rights and obligations under this
Agreement; provided, however, that (i) the aggregate amount of
the Canadian Commitments of the assigning Canadian Lender subject to each such
assignment shall in no event be less than $3,000,000 and (ii) other than in the
case of an assignment to another Canadian 
Lender (that is, at the time of the assignment, a party hereto) or to a
Lender Affiliate of such Canadian 
Lender,  Agents and, so long as no
Event of Default shall have 

 

94

 

occurred and be continuing, Canadian Borrowers
must each give its prior written consent, which consents shall not be
unreasonably withheld.  Each U.K. Lender
may assign to one or more U.K. Lenders or any other Person which (in any such
case) is both a Qualifying Lender and a Section 212 Lender all or a portion of
its interests, rights and obligations under this Agreement; provided, however,
that (x) the aggregate amount of the U.K. Commitments of the assigning U.K.
Lender subject to each such assignment shall in no event be less than
$3,000,000 and (y) other than in the case of an assignment to another U.K.
Lender (that is, at the time of the assignment, a party hereto) or to a Lender
Affiliate of such U.K. Lender which (in any such case) is both a Qualifying
Lender and a Section 212 Lender, Agents and, so long as no Event of Default
shall have occurred and be continuing, U.K. Borrower must each give its prior
written consent, which consents shall not be unreasonably withheld.  Each Singapore Lender may assign to one or
more Singapore Lenders or any other Person all or a portion of its interests,
rights and obligations under this Agreement; provided, however,
that (x) the aggregate amount of the Singapore Commitments of the assigning
Singapore Lender subject to each such assignment shall in no event be less than
$3,000,000 and (y) other than in the case of an assignment to another Singapore
Lender (that is, at the time of the assignment, a party hereto) or to a Lender
Affiliate of such Singapore Lender, Agents and, so long as no Event of Default
shall have occurred and be continuing, Singapore Borrower must each give its
prior written consent, which consents shall not be unreasonably withheld.  After giving effect to any assignment (other
than an assignment of all of the commitments and Loans of the assigning
Lender), the assigning Lender shall have commitments and Loans aggregating at
least $3,000,000 unless otherwise agreed to by the U.S. Borrower and the U.S.
Agent.  As a condition precedent to any
such assignment, the parties to each such assignment shall execute and deliver
to the applicable Agent (with a copy to U.S. Agent where applicable), for its
acceptance an Assignment and Acceptance in substantially the form of Exhibit
E hereto (each an “Assignment and Acceptance”) with blanks
appropriately completed, together with any Note or Notes subject to such
assignment and a processing and recording fee of $3,000 paid to the applicable
Agent by the assignee (for which Borrowers will have no liability).  Upon such execution, delivery and acceptance,
from and after the effective date specified in each Assignment and Acceptance,
(A) the assignee thereunder shall be a party hereto and, to the extent provided
in such Assignment and Acceptance, have the rights and obligations of a Lender
hereunder and (B) the Lender thereunder shall, to the extent provided in such
Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all or the
remaining portion of an assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto except in respect of
provisions of this Agreement which survive payment of the Obligations and
termination of the U.S. Commitments, Canadian Commitments, Singapore Commitments
or U.K. Commitments, as the case may be). 
Notwithstanding anything contained in this Agreement to the contrary,
any Lender may at any time assign all or any portion of its rights under this
Agreement and the other Loan Documents as collateral to a Federal Reserve Bank;
provided that no such assignment shall release such Lender from any of its
obligations hereunder.

 

(c)                                  By executing and delivering an Assignment and Acceptance, the
Lender assignor thereunder and the assignee thereunder confirm to and agree with
each other and the other parties hereto as follows:  (i) other than the representation and
warranty that it is the legal and beneficial owner of the interest being
assigned thereby free and clear of any adverse claim, such Lender assignor
makes no representation or warranty and assumes no responsibility with respect
to any 

 

95

 

statements, warranties or representations
made in or in connection with this Agreement or any of the other Loan Documents
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of this Agreement or any of the other Loan Documents or any other
instrument or document furnished pursuant thereto; (ii) such Lender assignor
makes no representation or warranty and assumes no responsibility with respect
to the financial condition of any Borrower or any Obligor or the performance or
observance by any Borrower or any Obligor of any of its obligations under this
Agreement or any of the other Loan Documents to which it is a party or any
other instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement, together with copies of
the financial statements most recently delivered under either Section 6.2
or Section 7.2 hereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
such Assignment and Acceptance; (iv) such assignee will, independently and
without reliance upon any Agent, such Lender assignor or any other Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement and the other Loan Documents; (v) such assignee appoints
and authorizes U.S. Agent, Canadian Agent, Singapore Agent or U.K. Agent, as
the case may be, to take such action as agent on its behalf and to exercise
such powers under this Agreement and the other Loan Documents as are delegated
to such Agent by the terms hereof, together with such powers as are reasonably
incidental thereto; and (vi) such assignee agrees that it will perform in
accordance with their terms all obligations that by the terms of this Agreement
and the other Loan Documents are required to be performed by it as a Lender.

 

(d)                                 The entries in the records of each applicable Agent as to each
Assignment and Acceptance delivered to it and the names and addresses of the
Lenders and the U.S. Commitments, Canadian Commitments, Singapore Commitments
or U.K. Commitments of, and principal amount of the Obligations owing to, each
Lender from time to time shall be conclusive, in the absence of manifest error,
and Obligors, Agents and the Lenders may treat each Person the name of which is
recorded in the books and records of the applicable Agent as a Lender hereunder
for all purposes of this Agreement and the other Loan Documents.

 

(e)                                  Upon the applicable Agent’s receipt of an Assignment and Acceptance
executed by an assigning Lender and the assignee thereunder, together with any
Note or Notes subject to such assignment and the written consent to such
assignment (to the extent consent is required), such Agent shall, if such
Assignment and Acceptance has been completed with blanks appropriately filled,
(i) accept such Assignment and Acceptance, (ii) record the information
contained therein in its records and (iii) give prompt notice thereof to the
applicable Borrower.  Within five
Business Days after receipt of notice, the applicable Borrower, at its own
expense, shall execute and deliver to the applicable Agent new Notes payable to
the order of such assignee in the appropriate amounts and, if the assigning
Lender has retained U.S. Commitments, Canadian Commitments, Singapore
Commitments or U.K. Commitments, as the case may be,  hereunder, new Notes to the order of the
assigning Lender in the appropriate amounts. 
Such new Notes shall be dated the effective date of such Assignment and
Acceptance and shall otherwise be in the forms required hereunder.   Thereafter, the replaced Notes shall be
surrendered to the applicable Agent by the applicable Lender or Lenders, marked
renewed and substituted and the originals thereof delivered to the applicable
Borrower (with copies to be retained by the applicable Agent).  Where applicable, a copy of each Assignment
and Acceptance executed by 

 

96

 

an assigning Lender and the assignee
thereunder, together with any Note or Notes subject to such assignment and the
written consent to such assignment (to the extent consent is required) shall be
sent to U.S. Agent.

 

(f)                                    Any Lender may, in connection with any assignment or participation
or proposed assignment or participation pursuant to this Section 11.6,
disclose to the assignee or participant or proposed assignee or participant,
any information relating to any Borrower furnished to such Lender by or on
behalf of any Borrower; provided such Person agrees to maintain the
confidentiality of such information in accordance with Section 11.18.

 

11.7                           Limitation of Interest.  U.S. Borrower, U.K. Borrower, Singapore
Borrower, U.S. Lenders, U.K. Lenders and Singapore Lenders intend to strictly
comply with all applicable usury laws of the United States and Texas (or the
usury laws of any jurisdiction, including Canada, the United Kingdom and
Singapore, whose usury laws are deemed to apply to the Notes or any other Loan
Documents despite the intention and desire of the parties to apply the usury
laws of the State of Texas).  Canadian
Borrowers and the Canadian Lenders intend to strictly comply with all
applicable usury laws in effect in Canada (or the usury laws of any
jurisdiction, including the State of Texas, whose usury laws are deemed to
apply to the Notes or any other Loan Documents despite the intention and desire
of the parties to apply the usury laws in effect in Canada).  Accordingly, the provisions of this Section
11.7 shall govern and control over every other provision of this Agreement
or any other Loan Document which conflicts or is inconsistent with this
Section, even if such provision declares that it controls.  As used in this Section, the term “interest”
includes the aggregate of all charges, fees, benefits or other compensation
which constitute interest under applicable law, provided that, to the maximum
extent permitted by applicable law, (a) any non-principal payment shall be
characterized as an expense or as compensation for something other than the
use, forbearance or detention of money and not as interest and (b) all interest
at any time contracted for, reserved, charged or received shall be amortized,
prorated, allocated and spread during the full term of the Obligations.  In no event shall Borrowers or any other
Person be obligated to pay, or any Agent, any Issuer or any Lender have any
right or privilege to reserve, receive or retain, (a) any interest in excess of
the maximum amount of nonusurious interest permitted under applicable laws or
(b) total interest in excess of the amount which such Person could lawfully
have contracted for, reserved, received, retained or charged had the interest
been calculated for the full term of the Obligations at the Ceiling Rate.  None of the terms and provisions contained in
this Agreement or in any other Loan Document (including, without limitation, Section
9.1 hereof) which directly or indirectly relate to interest shall ever be
construed without reference to this Section 11.7, or be construed to
create a contract to pay for the use, forbearance or detention of money at an
interest rate in excess of the Ceiling Rate. 
If the term of any Obligation is shortened by reason of acceleration of
maturity as a result of any Event of Default or by any other cause, or by
reason of any required or permitted prepayment, and if for that (or any other)
reason any Agent, any Issuer or any Lender at any time, including but not
limited to, the stated maturity, is owed or receives (and/or has received)
interest in excess of interest calculated at the Ceiling Rate, then and in any
such event all of any such excess interest shall be canceled automatically as
of the date of such acceleration, prepayment or other event which produces the
excess, and, if such excess interest has been paid to such Person, it shall be
credited pro tanto against the then-outstanding principal balance of the
applicable Borrower’s obligations to such Person, effective as of the date or
dates when the event occurs which causes it to be excess interest, until such
excess is exhausted or all 

 

97

 

of such principal has been fully paid and
satisfied, whichever occurs first, and any remaining balance of such excess
shall be promptly refunded to its payor.

 

11.8                           Survival.  The obligations of Borrowers under Sections
2.2(c), 2.2(d), 7.9, 11.3 and 11.4 hereof and
all other obligations of Borrowers in any other Loan Document (to the extent
stated therein), the obligations of each Issuer under the last sentence of Section
2.2(b)(iii) and the obligations of the Lenders under Sections 4.1(d),
4.1(i),  10.6, 11.4,
11.7, 11.17 and 11.18 hereof, shall, notwithstanding
anything herein to the contrary, survive the repayment of the Loans and
Reimbursement Obligations and the termination of the Commitments and the
Letters of Credit.

 

11.9                           Captions.  Captions and section headings appearing
herein are included solely for convenience of reference and are not intended to
affect the interpretation of any provision of this Agreement.

 

11.10                     Counterparts.  This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
agreement and any of the parties hereto may execute this Agreement by signing
any such counterpart.

 

11.11                     Governing Law.  THIS AGREEMENT AND (EXCEPT AS THEREIN
PROVIDED) THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE APPLICABLE LAWS OF THE STATE OF TEXAS AND THE UNITED STATES
OF AMERICA FROM TIME TO TIME IN EFFECT; PROVIDED, HOWEVER, THAT, EXCEPT AS MAY
BE REQUIRED UNDER APPLICABLE LAWS, THE USURY LAWS OF THE STATE OF TEXAS OR THE
UNITED STATES OF AMERICA SHALL NOT APPLY TO LOANS MADE TO AND BANKERS
ACCEPTANCES ACCEPTED IN CANADA BY CANADIAN LENDERS DRAWN BY CANADIAN BORROWERS,
BUT RATHER THE USURY LAWS IN EFFECT IN CANADA SHALL GOVERN IN SUCH CONTEXT.

 

11.12                     Severability.  Whenever possible, each provision of the Loan
Documents shall be interpreted in such manner as to be effective and valid
under applicable law.  If any provision
of any Loan Document shall be invalid, illegal or unenforceable in any respect
under any applicable law, the validity, legality and enforceability of the
remaining provisions of such Loan Document shall not be affected or impaired
thereby.

 

11.13                     Interest Act (Canada).  Whenever interest is calculated on the basis
of a year of 360 or 365 days, for the purposes of the Interest Act (Canada),
the yearly rate of interest which is equivalent to the rate payable hereunder
is the rate payable multiplied by the actual number of days in the year and
divided by 360 or 365, as the case may be. 
All interest will be calculated using the nominal rate method and not
the effective rate method and the deemed reinvestment principle shall not apply
to such calculations.

 

11.14                     Judgment Currency.  The obligation of each Borrower to make payments
on any Obligation to the Lenders or to any Agent hereunder in any currency (the
“First Currency”) shall not be discharged or satisfied by any tender or
recovery pursuant to any judgment expressed in or converted into any other
currency (the “Second Currency”) except to the extent to which such 

 

98

 

tender or recovery shall result in the
effective receipt by the applicable Lender or the applicable Agent of the full
amount of the First Currency payable, and accordingly the primary obligation of
each Borrower shall be enforceable as an alternative or additional cause of
action for the purpose of recovery in the Second Currency of the amount (if
any) by which such effective receipt shall fall short of the full amount of the
First Currency payable and shall not be affected by a judgment being obtained
for any other sum due hereunder.

 

11.15                     Conflicts Between This Agreement and the Other Loan Documents.  In the event of any
conflict between the terms of this Agreement and the terms of any of the other
Loan Documents, the terms of this Agreement shall control.

 

11.16                     Limitation on Charges; Substitute Lenders; Non-Discrimination.  Anything in Sections
2.2(d), 3.3, 4.1 or 7.9 notwithstanding:

 

(1)                                  no Borrower shall be required to pay to any Lender reimbursement or
indemnification with regard to any costs or expenses described in such
Sections, unless such Lender notifies the applicable Borrower of such costs or
expenses within 90 days after the date paid or incurred;

 

(2)                                  none of the Lenders shall be permitted to pass through to any
Borrower charges and costs under such Sections on a discriminatory basis (i.e.,
which are not also passed through by such Lender to other customers of such
Lender similarly situated where such customer is subject to documents providing
for such pass through); and

 

(3)                                  if any Lender elects to pass through to any Borrower any material
charge or cost under such Sections or elects to terminate the availability of
LIBOR Borrowings for any material period of time, the applicable Borrower may,
within 60 days after the date of such event and so long as no Event of Default
shall have occurred and be continuing, elect to terminate such Lender as a
party to this Agreement; provided that, concurrently with such
termination such Borrower shall (i) if Agents and each of the other Lenders
shall consent, pay that Lender all principal, interest and fees and other
amounts owed to such Lender through such date of termination or (ii) have
arranged for another financial institution approved by Agents (such approval
not to be unreasonably withheld or delayed) as of such date, to become a
substitute Lender for all purposes under this Agreement in the manner provided
in Section 11.6; provided further that, prior to substitution for
any Lender, the applicable Borrower shall have given written notice to Agents
of such intention and the Lenders shall have the option, but no obligation, for
a period of 30 days after receipt of such notice, to increase their U.S. Commitments,
Canadian Commitments, Singapore Commitments or U.K. Commitments, as the case
may be, in order to replace the affected Lender in lieu of such substitution.

 

11.17                     WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN  ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY).  EACH PARTY
HERETO 

 

99

 

(A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

11.18                     Confidentiality.  Each of the Agents, Wells Fargo, HSBC Canada,
HSBC U.K., HSBC Singapore and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any
regulatory authority, (c) to the extent 
required by applicable laws or regulations or by any subpoena or similar
legal process, (d) to any other party to this Agreement, (e) in connection with
the exercise of any remedies hereunder or any suit, action or proceeding
relating to this Agreement or the enforcement of rights hereunder, (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to (i) any actual or prospective assignee of or participant in any of
its rights or obligations under this Agreement so long as such assignee or
participant agrees to be bound by confidentiality provisions substantially
similar to this Section or (ii)  any
actual or prospective counterparty (or its advisors) to any swap or derivative
transaction relating to any Borrower (or any Subsidiary of a Borrower) so long
as such counterparty (and, if applicable, its advisors) agrees to be bound by
confidentiality provisions substantially similar to this Section, (g) with the
consent of the applicable Borrower or (h) to the extent such Information
(i) becomes publicly available other than as a result of a breach of this
Section or (ii) becomes available to any Agent, Wells Fargo, HSBC Canada,
HSBC U.K., HSBC Singapore or any Lender on a nonconfidential basis from a
source other than a Borrower or a Subsidiary of a Borrower.  For the purposes of this Section, “Information”
means all information received from a Borrower (or any Subsidiary of a Borrower)
relating to any Borrower (or any Subsidiary of a Borrower) or its business,
other than any such information that is available to any Agent, Wells Fargo,
HSBC Canada, HSBC U.K., HSBC Singapore or any Lender on a nonconfidential basis
prior to such disclosure; provided that, in the case of information received
after the date hereof, such information is clearly identified at the time of
delivery as confidential.  Any Person
required to maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its obligation to do so if
such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

 

11.19                     USA Patriot Act Notice.  Each Lender hereby notifies the Borrowers
that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is
required to obtain, verify and record information that identifies the
Borrowers, which information includes the names and addresses of the Borrowers
and other information that will allow such Lender to identify the Borrowers in
accordance with the Patriot Act.

 

100

 

11.20                     Special Condition Precedent to Singapore Revolving Loans and
Letters of Credit. 
Notwithstanding anything herein to the contrary, no Singapore Lender
shall have any obligation to make any Singapore Revolving Loan or to issue any
Singapore Letter of Credit unless and until the Singapore Agent shall have
acknowledged  in writing to the Singapore
Borrower (with a copy to the U.S. Agent) that the Singapore Agent is satisfied
that all conditions precedent relating to the grant and perfection of Liens
upon the Singapore Borrower’s assets or relating to guaranties by the Singapore
Borrower or otherwise pertaining to the Singapore Borrower, all set forth in Section
5.1 of this Agreement, have been satisfied (which acknowledgment the
Singapore Agent shall promptly deliver after such conditions are
satisfied).  Until such time as Singapore
Agent has delivered such acknowledgement, commitment fees shall not accrue
hereunder with respect to the Singapore Commitments.  Notwithstanding the foregoing, the U.K. Lenders,
the Canadian Lenders, the U.S. Lenders and the Issuers of U.K. Letters of
Credit, Canadian Letters of Credit and U.S. Letters of Credit agree that the
foregoing conditions precedent shall not constitute conditions precedent to
their obligations to make the initial U.K. Revolving Loans, Canadian Revolving
Loans, or U.S. Revolving Loans or to issue or participate in the initial U.K.
Letters of Credit, Canadian Letters of Credit or U.S. Letters of Credit or to
accept and purchase the initial Banker’s Acceptances hereunder.

 

101

 

WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the Effective Date.

 

	
   

  	
   

  	
   

  	
   

  	
  VERITAS DGC INC.,

  
	
   

  	
   

  	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ MARK E. BALDWIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Mark E. Baldwin, Executive Vice President,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chief Financial Officer and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  VERITAS ENERGY SERVICES INC.,

  
	
   

  	
   

  	
   

  	
   

  	
  a corporation formed under the laws of the
  Province

  
	
   

  	
   

  	
   

  	
   

  	
  of Alberta

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ MICHAEL D. LAURIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Michael D. Laurin, President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  VERITAS ENERGY SERVICES PARTNERSHIP,

  
	
   

  	
   

  	
   

  	
   

  	
  a general partnership formed under the laws
  of the

  
	
   

  	
   

  	
   

  	
   

  	
  Province of Alberta

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  Veritas Energy Services Inc.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  a corporation formed under the laws of the

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Province of Alberta, its Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ MICHAEL D. LAURIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Michael D. Laurin, President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  VERITAS GEOPHYSICAL (ASIA PACIFIC)

  
	
   

  	
   

  	
   

  	
   

  	
  PTE. LTD., a company incorporated under the
  laws

  
	
   

  	
   

  	
   

  	
   

  	
  of Singapore

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ NIRMAL SINGH

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Nirmal Singh, Director

  
										

 

102

 

	
   

  	
   

  	
   

  	
   

  	
  VERITAS DGC LIMITED,

  
	
   

  	
   

  	
   

  	
   

  	
  a company incorporated in England and Wales

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ NICHOLAS A.C. BRIGHT

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Nicholas A.C. Bright, Managing Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Veritas DGC Inc.

  
	
   

  	
   

  	
   

  	
   

  	
  10300 Town Park Drive

  
	
   

  	
   

  	
   

  	
   

  	
  Houston, Texas 77072

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: Mark E. Baldwin, Executive Vice

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  President, Chief Financial Officer &

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
  (Fax) 832-351-8701

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  With a required copy to:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Veritas DGC Inc.

  
	
   

  	
   

  	
   

  	
   

  	
  10300 Town Park Drive

  
	
   

  	
   

  	
   

  	
   

  	
  Houston, Texas 77072

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: Office of the General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
  (Fax) 832-351-8792

  
									

 

103

 

	
   

  	
   

  	
   

  	
   

  	
  WELLS FARGO BANK, NATIONAL

  
	
   

  	
   

  	
   

  	
   

  	
  ASSOCIATION, as U.S. Agent and Lead

  
	
   

  	
   

  	
   

  	
   

  	
  Arranger, Issuer of U.S. Letters of Credit
  and

  
	
   

  	
   

  	
   

  	
   

  	
  a U.S. Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Philip C. Lauinger III

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Philip C. Lauinger III

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S. Commitment:

  	
   

  	
   

  	
   

  	
  1000 Louisiana, 9th Floor

  
	
   

  	
   

  	
   

  	
   

  	
  MAC: T5002-090

  
	
  $30,000,000.00

  	
   

  	
   

  	
   

  	
  Houston, Texas 77002

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: Philip C. Lauinger III

  
	
   

  	
   

  	
   

  	
   

  	
  Telecopy No.: 713-319-1087

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canadian Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.K. Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Singapore Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
										

 

104

 

	
   

  	
   

  	
   

  	
   

  	
  HSBC BANK PLC,

  
	
   

  	
   

  	
   

  	
   

  	
  as U.K. Agent, Issuer of U.K. Letters of
  Credit

  
	
   

  	
   

  	
   

  	
   

  	
  and as a U.K. Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ C. A. Jones

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  C. A. Jones

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Senior Corporate Banking Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S. Commitment:

  	
   

  	
   

  	
   

  	
  The Forum

  
	
   

  	
   

  	
   

  	
   

  	
  Marlborough Road

  
	
  $0

  	
   

  	
   

  	
   

  	
  Swindon

  
	
   

  	
   

  	
   

  	
   

  	
  Wiltshire

  
	
   

  	
   

  	
   

  	
   

  	
  SN3 1QN

  
	
   

  	
   

  	
   

  	
   

  	
  United Kingdom

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: Chris Jones

  
	
   

  	
   

  	
   

  	
   

  	
  Telecopy No.: 0044 (0) 8455 877312

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canadian Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.K. Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $10,000,000.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Singapore Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

105

 

	
   

  	
   

  	
   

  	
   

  	
  HSBC BANK CANADA,

  
	
   

  	
   

  	
   

  	
   

  	
  as Canadian Agent, Issuer of Canadian
  Letters

  
	
   

  	
   

  	
   

  	
   

  	
  of Credit and as a Canadian lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ ALLISON DOWHANIK

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Allison Dowhanik,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Vice-President, Commercial Financing

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ PETER BORSOS

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Peter Borsos

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Assistant Vice President, Commercial

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Financial Services

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S. Commitment:

  	
   

  	
   

  	
   

  	
  407 - 8th
  Avenue S.W.

  
	
   

  	
   

  	
   

  	
   

  	
  Calgary, Alberta, T2P 1E5

  
	
  $0

  	
   

  	
   

  	
   

  	
  Canada

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: Vice-President

  
	
   

  	
   

  	
   

  	
   

  	
  Telecopy No.: 403-693-8561

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canadian Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $10,000,000.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.K. Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Singapore Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

106

 

	
   

  	
   

  	
   

  	
   

  	
  THE HONGKONG AND SHANGHAI BANKING

  
	
   

  	
   

  	
   

  	
   

  	
  CORPORATION LIMITED, SINGAPORE

  
	
   

  	
   

  	
   

  	
   

  	
  BRANCH, as Singapore Agent, Issuer of
  Singapore

  
	
   

  	
   

  	
   

  	
   

  	
  Letters of Credit and as a Singapore Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ JANET YOUNG

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Janet Young

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Head, Commercial Banking

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ MARCUS KWEK

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Marcus Kwek

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Assistant Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S. Commitment:

  	
   

  	
   

  	
   

  	
  21 Collyer Quay #08-01

  
	
   

  	
   

  	
   

  	
   

  	
  HSBC Building

  
	
  $0

  	
   

  	
   

  	
   

  	
  Singapore 049320

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: Marcus Kwek

  
	
   

  	
   

  	
   

  	
   

  	
  Telecopy No.: (65) 6533-2326

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canadian Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.K. Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Singapore Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $15,000,000.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

107

 

	
   

  	
   

  	
   

  	
   

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ CHRISTOPHER P. DVORACHEK

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Christopher P. Dvorachek

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S. Commitment:

  	
   

  	
   

  	
   

  	
  910 Travis Street, 7th Floor

  
	
   

  	
   

  	
   

  	
   

  	
  Houston, Texas 77002

  
	
  $5,000,000.00

  	
   

  	
   

  	
   

  	
  Attention: Curt Prudhomme

  
	
   

  	
   

  	
   

  	
   

  	
  Telecopy No.: 713-751-6199

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canadian Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $5,000,000.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.K. Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Singapore Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

108

 

	
   

  	
   

  	
   

  	
   

  	
  NATEXIS BANQUES POPULAIRES

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ DANIEL PAYER

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Daniel Payer

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ LOUIS P. LAVILLE, III

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Louis P. Laville, III

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President and Group Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S. Commitment:

  	
   

  	
   

  	
   

  	
  333 Clay Street, Suite 4340

  
	
   

  	
   

  	
   

  	
   

  	
  Houston, Texas 77002

  
	
  $10,000,000.00

  	
   

  	
   

  	
   

  	
  Attention: Tanya McAllister

  
	
   

  	
   

  	
   

  	
   

  	
  Telecopy No.: 713-571-6165

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canadian Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.K. Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Singapore Commitment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
										

 

109

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]