Document:

exv4w3

 

EXECUTION VERSION

REGISTRATION RIGHTS AGREEMENT

Dated as of November 6, 2006

By and Among

CORE LABORATORIES LP,

as Issuer,

CORE LABORATORIES N.V.

as Guarantor

and

The Initial Purchasers Party Hereto

0.25% Senior Exchangeable Notes Due 2011

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	1. Definitions
	 	 	1	 
	2. Shelf Registration
	 	 	5	 
	3. Liquidated Damages
	 	 	7	 
	4. Registration Procedures
	 	 	8	 
	5. Holder’s Obligations
	 	 	14	 
	6. Registration Expenses
	 	 	15	 
	7. Indemnification
	 	 	16	 
	8. Rules 144 and 144A
	 	 	18	 
	9. Miscellaneous
	 	 	19	 

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REGISTRATION RIGHTS AGREEMENT

PREAMBLE

     This Registration Rights Agreement (the “Agreement”) is made as of November 6, 2006 by and
among Core Laboratories LP, a Delaware limited partnership (the “Company”), Core Laboratories N.V.,
a Netherlands limited liability company (the “Guarantor”) and Lehman Brothers Inc. and Banc of
America Securities LLC, acting on behalf of the several parties (the “Initial Purchasers”) named in
Schedule A to that certain Purchase Agreement, dated October 31, 2006 (as it may be amended from
time to time, the “Purchase Agreement”), by and among the Company, the Guarantor and Lehman
Brothers Inc. and Banc of America Securities LLC as representatives of the Initial Purchasers.

RECITALS

     This Agreement is entered into in connection with the Purchase Agreement, which provides for
the sale by the Company to the Initial Purchasers of $250,000,000 aggregate principal amount of the
Company’s .25% Senior Exchangeable Notes Due 2011 (the “Firm Notes”), which are exchangeable into
common shares of the Guarantor, EUR 0.04 par value per share (the “Underlying Shares”), plus up to
an additional $50,000,000 aggregate principal amount of .25% Senior Exchangeable Notes Due 2011,
which the Initial Purchasers may subsequently elect to purchase pursuant to the terms of the
Purchase Agreement (the “Additional Notes” and together with the Firm Notes and the related
Guarantees (as defined below), the “Notes”). The Notes are being issued pursuant to an indenture
dated as of the date hereof (the “Indenture”), to be entered into among the Company, the Guarantor
and Wells Fargo Bank, National Association, as trustee (the “Trustee”) on November 6, 2006. The
Notes will be fully and unconditionally guaranteed (the “Guarantees”) by the Guarantor. The Notes
and the Underlying Shares are collectively referred to herein as the “Securities.”

     In order to induce the Initial Purchasers to enter into the Purchase Agreement, the Company
and the Guarantor have agreed to provide the registration rights set forth in this Agreement for
the benefit of the Initial Purchasers and any subsequent holder or holders of the Securities as
provided herein. The execution and delivery of this Agreement is a condition to the Initial
Purchasers’ obligation to purchase the Firm Notes under the Purchase Agreement.

AGREEMENT

     The parties hereby agree as follows:

     1. Definitions

     As used in this Agreement, the following terms shall have the following meanings:

     Additional Notes: Has the meaning given such term in the Recitals.

 

 

     Agreement: Has the meaning given such term in the Preamble.

     Amendment Effectiveness Deadline Date: See Section 2(d)(i) hereof.

     Amount of Registrable Securities: (a) With respect to Notes constituting Registrable
Securities, the aggregate principal amount of all such Notes outstanding, (b) with respect to
Underlying Shares constituting Registrable Securities, the aggregate number of such Underlying
Shares outstanding multiplied by the Exchange Rate (as defined in the Indenture) in effect at the
time of computing the Amount of Registrable Securities or, if no such Notes are then outstanding,
the last Exchange Rate in effect under such Indenture when any such Notes were last outstanding and
(c) with respect to combinations thereof, the sum of (a) and (b) for the relevant Registrable
Securities.

     Automatic Shelf Registration Statement: Has the meaning ascribed to it in Rule 405
promulgated under the Securities Act.

     Board: The Board of Directors of the Guarantor.

     Business Day: Any day that is not a Saturday, Sunday or a day on which banking
institutions in New York, Texas or The Netherlands are authorized or required by law to be closed.

     Closing Date: November 6, 2006.

     Company: Has the meaning given such term in the Preamble.

     Damages Payment Date: See Section 3(c) hereof.

     Deferral Period: See Section 2(d) hereof.

     Depositary: The Depository Trust Company until a successor is appointed by the
Company.

     Effectiveness Date: The 180th day after the Closing Date.

     Effectiveness Period: The period commencing on the date that the Initial Shelf
Registration Statement is declared effective under the Securities Act and ending on the date that
all Notes, related Guarantees and Underlying Shares have ceased to be Registrable Securities.

     Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC promulgated thereunder and any successor act, rules and regulations.

     Filing Date: The 90th day after the Closing Date.

     Guarantees: Has the meaning given such term in the Recitals.

     Guarantor: Has the meaning given such term in the Preamble.

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     Holder: Any holder or owner of a beneficial interest in Registrable Securities.

     Indemnified Holder: See Section 7 hereof.

     Indemnified Person: See Section 7 hereof.

     Indemnifying Person: See Section 7 hereof.

     Indenture: Has the meaning given such term in the Recitals.

     Initial Purchasers: Has the meaning given such term in the Preamble.

     Initial Shelf Registration: See Section 2(a) hereof.

     Inspectors: See Section 4(m) hereof.

     Liquidated Damages: See Section 3(a) hereof.

     NASD: The National Association of Securities Dealers, Inc.

     Notes: Has the meaning given such term in the Recitals.

     Notice and Questionnaire: A written notice delivered to the Company containing
substantially the information called for by the Selling Security Holder Notice and Questionnaire
attached as Annex A to the Memorandum relating to the Notes dated as of November 6, 2006 (or any
amendment or supplement thereto) as such notice may be amended by the Company to the extent
reasonably necessary to ensure compliance with applicable law.

     Notice Holder: On any date, any Holder that has delivered a Notice and Questionnaire
to the Company on or prior to such date.

     Person: An individual, partnership, corporation, limited liability company,
unincorporated association, trust or joint venture, or any similar entity formed under the laws of
any country, state, principality, province or other governmental subdivision, or a governmental
agency or political subdivision thereof.

     Prospectus: The prospectus included in any Registration Statement (including, without
limitation, any prospectus subject to completion and a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in
reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any
prospectus supplement, and all other amendments and supplements to the Prospectus, including
post-effective amendments, and all material incorporated by reference or deemed to be incorporated
by reference in such Prospectus.

     Purchase Agreement: Has the meaning given such term in the Recitals.

     QIU: See Section 4(p) hereof.

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     Records: See Section 4(m) hereof.

     Registrable Securities: All Notes and all Underlying Shares upon original issuance
thereof and at all times subsequent thereto until the earliest to occur of (i) a Registration
Statement or Registration Statements covering such Notes and Underlying Shares having been declared
effective by the SEC and remaining effective until such Notes and Underlying Shares having been
disposed of or issued and sold, as the case may be, in accordance with such effective Registration
Statement, (ii) such Notes and Underlying Shares having been sold in compliance with Rule 144 or
(except with respect to affiliates of the Company within the meaning of the Securities Act) are
eligible for sale in compliance with Rule 144(k), or (iii) such Notes and any Underlying Shares
ceasing to be outstanding.

     Registration Default: See Section 3(a) hereof.

     Registration Statement: Any registration statement of the Company or the Guarantor
that covers the Registrable Securities filed with the SEC pursuant to the provisions of this
Agreement, including the Prospectus, amendments and supplements to such registration statement,
including post-effective amendments, all exhibits and all material incorporated by reference or
deemed to be incorporated by reference in such registration statement.

     Rule 144: Rule 144 promulgated under the Securities Act, as such Rule may be amended
from time to time, or any similar rule (other than Rule 144A) or regulation hereafter adopted by
the SEC providing for offers and sales of securities made in compliance therewith resulting in
offers and sales by subsequent holders that are not affiliates of an issuer of such securities
being free of the registration and prospectus delivery requirements of the Securities Act.

     Rule 144A: Rule 144A promulgated under the Securities Act, as such Rule may be
amended from time to time, or any similar rule (other than Rule 144) or regulation hereafter
adopted by the SEC.

     Rule 415: Rule 415 promulgated under the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the SEC.

     Rule 430B: Rule 430B promulgated under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

     SEC: The Securities and Exchange Commission.

     Securities Act: The Securities Act of 1933, as amended, and the rules and regulations
of the SEC promulgated thereunder and any successor act, rules and regulations.

     Shelf Registration: See Section 2(b) hereof.

     Shelf Registration Statement: See Section 2(b) hereof.

     Subsequent Shelf Registration: See Section 2(b) hereof.

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     TIA: The Trust Indenture Act of 1939, as amended, and the rules and regulations of
the SEC promulgated thereunder and any successor act, rules and regulations.

     Trustee: Has the meaning given such term in the Recitals.

     Underlying Shares: Has the meaning given such term in the Recitals.

     2. Shelf Registration.

     (a) Shelf Registration. To the extent not prohibited by any applicable law or
applicable interpretation of the staff of the SEC, the Company and the Guarantor shall use their
respective reasonable best efforts to file with the SEC a Registration Statement or Registration
Statements for an offering to be made on a continuous basis pursuant to Rule 415 (or, in the event
Rule 415 shall not be available for any of the Registrable Securities for an offering to be made as
permitted under the terms of the Notes and this Agreement, including the offering of the Underlying
Shares upon the exchange, repurchase or redemption of the Notes) for an offering covering all of
the Registrable Securities (the “Initial Shelf Registration”) on or prior to the Filing Date.

     The Initial Shelf Registration shall be on Form S-3 or another appropriate form permitting
registration of such Registrable Securities for (i) in the case of the Notes constituting
Registrable Securities, resale by Holders, and (ii) in the case of Underlying Shares constituting
Registrable Securities, (x) the issuance and sale by the Guarantor, or (y) the resale by Holders,
as the case may be, in each case in the manner or manners set forth in such Registration Statement
and in Rule 415 (if such rule is available for the Initial Shelf Registration). The Company shall
not permit any securities other than the Registrable Securities to be included in the Initial Shelf
Registration or any Subsequent Shelf Registration.

     The Company and the Guarantor shall use their respective reasonable best efforts to cause the
Initial Shelf Registration to be declared effective under the Securities Act on or prior to the
Effectiveness Date and to keep such Initial Shelf Registration continuously effective under the
Securities Act until the expiration of the Effectiveness Period. To the extent permitted by
applicable law and the interpretations of the staff of the SEC, the Initial Registration Statement
may be terminated with respect to either the Notes or the Underlying Securities, as the case may
be, on the date the Effectiveness Period expires. At the time the Initial Shelf Registration is
declared effective, each Holder that became a Notice Holder on or prior to the date five (5)
Business Days prior to such time of effectiveness shall be named as a selling securityholder in the
Initial Shelf Registration Statement and the related Prospectus in such a manner as to permit such
Holder to deliver such Prospectus to purchasers of Registrable Securities in accordance with
applicable law.

     (b) Subsequent Shelf Registrations. If the Initial Shelf Registration or any
Subsequent Shelf Registration ceases to be effective for any reason at any time during the
Effectiveness Period (other than because of the sale of all of the securities registered
thereunder), the Company and the Guarantor shall use their respective reasonable best efforts to
obtain the prompt withdrawal of any order suspending the effectiveness thereof, and in any event
shall within 45 days of such cessation of effectiveness amend the Initial Shelf Registration in a

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manner to obtain the withdrawal of the order suspending the effectiveness thereof, or file an
additional “shelf” Registration Statement pursuant to Rule 415 covering all of the Registrable
Securities (or, in the event Rule 415 shall not be available for any of the Registrable Securities,
covering an offering to be made as permitted under the terms of the Notes and this Agreement,
including the offering of the Underlying Shares upon exchange, repurchase or redemption of the
Notes) (each, a “Subsequent Shelf Registration”). If a Subsequent Shelf Registration is filed, the
Company and the Guarantor shall use their respective reasonable best efforts to cause the
Subsequent Shelf Registration to be declared effective under the Securities Act as soon as
practicable after such filing and to keep such Registration Statement continuously effective until
the termination of the Effectiveness Period. As used herein the term “Shelf Registration” means
the Initial Shelf Registration and any Subsequent Shelf Registration and the term “Shelf
Registration Statement” means any Registration Statement or Registration Statements filed in
connection with a Shelf Registration.

     (c) Supplements and Amendments. The Company and the Guarantor shall promptly use
their respective reasonable best efforts to supplement and amend the Shelf Registration if required
by the rules, regulations or instructions applicable to the registration form used for such Shelf
Registration, if required by the Securities Act, or if reasonably requested by the Holders of the
majority in Amount of Registrable Securities covered by such Registration Statement.

     (d) Notice Holders. Each Holder agrees that if such Holder wishes to sell Registrable
Securities pursuant to a Shelf Registration Statement and related Prospectus, it will do so only in
accordance with this Section 2(d) and Section 5. Following the date that the Initial Shelf
Registration Statement is declared effective, each Holder wishing to sell Registrable Securities
pursuant to a Shelf Registration Statement and related Prospectus agrees to deliver a Notice and
Questionnaire to the Company at least three (3) Business Days prior to any intended distribution of
Registrable Securities under the Shelf Registration Statement. Each Holder who elects to sell
Registrable Securities pursuant to a Shelf Registration Statement agrees by submitting a Notice and
Questionnaire to the person specified therein, it will be bound by the terms and conditions of the
Notice and Questionnaire and this Agreement. From and after the date the Initial Shelf
Registration Statement is declared effective, the Company shall, as promptly as practicable after
the date a Notice and Questionnaire is delivered to the address specified in the Notice and
Questionnaire, and in any event upon the later of (x) ten (10) Business Days after such date or (y)
ten (10) Business Days after the expiration of any period in which the Guarantor and the Company
shall have suspended the effectiveness of the Shelf Registration Statement pursuant to Section 3(b)
hereof (each, a “Deferral Period”) in effect when the Notice and Questionnaire is delivered or put
into effect within ten (10) Business Days of such delivery date:

     (i) if required by applicable law, file with the SEC a post-effective amendment to the
Shelf Registration Statement or prepare and, if required by applicable law, file a
supplement to the related Prospectus or a supplement or amendment to any document
incorporated therein by reference or file any other required document so that the Holder
delivering such Notice and Questionnaire is named as a selling securityholder in the Shelf
Registration Statement and the related Prospectus in such a manner as to permit such Holder
to deliver such Prospectus to purchasers of the Registrable Securities in accordance with
applicable law and, if the Company and the Guarantor shall file a

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post-effective amendment to the Shelf Registration Statement, use its best efforts to
cause such post-effective amendment to be declared effective under the Securities Act as
promptly as is practicable, but in any event by the date (the “Amendment Effectiveness
Deadline Date”) that is forty-five (45) days after the date such post-effective amendment
is required by this clause to be filed;

     (ii) provide such Holder copies of any documents filed pursuant to Section 2(d)(i);
and

     (iii) notify such Holder as promptly as practicable after the effectiveness under the
Securities Act of any post-effective amendment filed pursuant to Section 2(d)(i);

     provided, that if such Notice and Questionnaire is delivered during a Deferral Period, the
Company shall so inform the Holder delivering such Notice and Questionnaire and shall take the
actions set forth in clauses (i), (ii) and (iii) above upon expiration of the Deferral Period in
accordance with Section 3(b). Notwithstanding anything contained herein to the contrary, (i)
neither the Company nor the Guarantor shall be under any obligation to name any Holder that is not
a Notice Holder as a selling securityholder in any Registration Statement or related Prospectus and
(ii) the Amendment Effectiveness Deadline Date shall be extended by up to ten (10) Business Days
from the expiration of a Deferral Period (and the Company and the Guarantor shall incur no
obligation to pay Liquidated Damages during such extension) if such Deferral Period shall be in
effect on the Amendment Effectiveness Deadline Date.

     3. Liquidated Damages

     (a) The Company, the Guarantor and the Initial Purchasers agree that the Holders will suffer
damages if the Company and the Guarantor fail to fulfill their obligations under Section 2
hereof and that it would not be feasible to ascertain the extent of the damages in either case with
precision. Accordingly, the Company agrees to pay in the aggregate liquidated damages on the
principal amount of Notes that constitute Registrable Securities at a rate of 0.25% per annum
(“Liquidated Damages”) under the circumstances (each of which shall be given independent effect;
each a “Registration Default”):

     (i) if the Initial Shelf Registration is not filed on or prior to the Filing Date,
then commencing on the day after the Filing Date, Liquidated Damages shall accrue on the
Notes that constitute Registrable Securities;

     (ii) if the Company or the Guarantor fails to cause the Initial Shelf Registration to
be declared effective by the SEC on or prior to the Effectiveness Date, then commencing one
day after the Effectiveness Date, Liquidated Damages shall accrue on the Notes that
constitute Registrable Securities; and

     (iii) if a Shelf Registration has been declared effective and such Shelf Registration
ceases to be effective at any time during the Effectiveness Period (other than as permitted
under Section 3(b)), then commencing one day after the date the Shelf Registration
ceases to be effective, Liquidated Damages shall accrue on the Notes that constitute
Registrable Securities;

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     provided, however, that Liquidated Damages on the Notes that constitute
Registrable Securities may not accrue under more than one of the foregoing clauses (i), (ii) or
(iii) or ever exceed 0.25% per annum; provided, further, however, that (1)
upon the filing of the Shelf Registration as required hereunder (in the case of clause (a)(i) of
this Section 3), (2) upon the effectiveness of the Shelf Registration as required hereunder
(in the case of clause (a)(ii) of this Section 3), or (3) upon the effectiveness of a Shelf
Registration which had ceased to remain effective (in the case of (a)(iii) of this Section
3), Liquidated Damages on the Notes that constitute Registrable Securities as a result of such
clause (or the relevant subclause thereof), as the case may be, shall cease to accrue. It is
understood and agreed that, notwithstanding any provision to the contrary, so long as any Note is
then capable of being resold by Holders under an effective Shelf Registration Statement or pursuant
to Rule 144(k), no Liquidated Damages shall accrue on such Note.

     (b) Notwithstanding paragraph (a) of this Section 3, if the Board determines in good
faith that it is in the best interest of the Guarantor not to disclose the existence of or facts
surrounding any proposed or pending material corporate transaction involving the Guarantor or its
subsidiaries and the Guarantor notifies the selling Holders within two Business Days after such
determination is made, the Guarantor and the Company may suspend the effectiveness of the Shelf
Registration as a result of such nondisclosure for up to 45 consecutive days in any 90-day period
for a total of not more than 90 days in any calendar year, without paying Liquidated Damages.

     (c) Any amounts of Liquidated Damages due pursuant to Section 3(a)(i),
3(a)(ii) or 3(a)(iii) will be payable in cash semi-annually on each April 30 and
October 31 (each a “Damages Payment Date”), commencing with the first such date occurring after any
such Liquidated Damages commences to accrue, to Holders of record of Notes that constitute
Registrable Securities on the April 15 or October 15 next preceding such Damages Payment Date. The
amount of Liquidated Damages for Registrable Securities will be determined on the basis of a
360-day year comprised of twelve 30-day months.

     4. Registration Procedures

     In connection with the filing of any Registration Statement or Registration Statements
pursuant to Section 2 hereof, the Company and the Guarantor shall effect such registrations
to permit the sale of the securities covered thereby in accordance with the intended method or
methods of disposition thereof, and pursuant thereto and in connection with any Registration
Statement filed by the Company or the Guarantor hereunder the Company and the Guarantor shall:

     (a) Prepare and file with the SEC on or prior to the Filing Date, a Registration Statement or
Registration Statements as prescribed by Section 2 hereof, and use their reasonable best
efforts to cause each such Registration Statement(s) to become effective and remain effective as
provided herein; provided, however, that before filing any Registration Statement
or Prospectus or any amendments or supplements thereto, the Company and the Guarantor shall furnish
to and afford the Initial Purchasers a reasonable opportunity to review copies of all such
documents proposed to be filed (in each case, where possible, at least five Business Days prior to

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such filing, or such later date as is reasonable under the circumstances). Neither the
Company nor the Guarantor shall file any Registration Statement or Prospectus or any amendments or
supplements thereto if the Notice Holders of a majority in Amount of Registrable Securities covered
by such Registration Statement or, in the case of the Initial Shelf Registration Statement, the
Initial Purchasers, shall reasonably object.

     (b) Each Registration Statement that is or is required by this Agreement to be filed with the
SEC shall be filed on Form S-3 if the Company and the Guarantor are then eligible to use Form S-3
for the purposes contemplated by this Agreement, or, if either the Company or the Guarantor is not
then so eligible to use Form S-3, shall be on Form S-1 or another appropriate form that is then
available to the Company for the purposes contemplated by this Agreement. Each such Registration
Statement that is filed on Form S-3 shall constitute an Automatic Shelf Registration Statement if
the Company and the Guarantor are then eligible to file an Automatic Shelf Registration Statement
on Form S-3 for the purposes contemplated by this Agreement. If, at the time any Registration
Statement is filed with the SEC, the Company and the Guarantor are eligible, pursuant to Rule
430B(b), to omit, from the prospectus that is filed as part of such Registration Statement, the
identities of selling securityholders and amounts of securities to be registered on their behalf,
then the Company and the Guarantor shall prepare and file such Registration Statement in a manner
as to permit such omission and to allow for the subsequent filing of such information in a
prospectus pursuant to Rule 424(b) in the manner contemplated by Rule 430B(d).

     (c) Prepare and file with the SEC such amendments and post-effective amendments to each Shelf
Registration, as may be necessary to keep such Registration Statement continuously effective for
its Effectiveness Period; cause the related Prospectus to be supplemented by any Prospectus
supplement required by applicable law, and as so supplemented to be filed pursuant to Rule 424 (or
any similar provisions then in force) promulgated under the Securities Act; and comply with the
provisions of the Securities Act and the Exchange Act applicable to it with respect to the
disposition of all securities covered by such Registration Statement as so amended or in such
Prospectus as so supplemented except as provided in Section 3(b) hereof.

     (d) If the third anniversary of the initial effective date of any Registration Statement
(within the meaning of Rule 415(a)(5)) shall occur at any time during the Effectiveness Period,
file with the SEC, prior to such third anniversary, a new Registration Statement covering the
Registrable Securities, in the manner contemplated by, and in compliance with, Rule 415(a)(6), and
use its reasonable best efforts to cause such new Registration Statement to become effective under
the Act as soon as practicable, but in any event within 180 days after such third anniversary.
Each such new Registration Statement, if any, shall be deemed, for purposes of this Agreement, to
be a Subsequent Shelf Registration Statement.

     (e) If, at any time during the Effectiveness Period, any Registration Statement shall cease to
comply with the requirements of the Securities Act with respect to eligibility for the use of the
form on which such Registration Statement was filed with the SEC (or if such Registration Statement
constituted an Automatic Shelf Registration Statement at the time it was filed with the SEC and
shall thereafter cease to constitute an Automatic Shelf Registration Statement, or if the

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Company or the Guarantor shall have received, from the SEC, a notice, pursuant to Rule
401(g)(2) under the Securities Act, of objection to the use of the form on which such Registration
Statement was filed with the SEC), (i) promptly give notice to each Notice Holder, a single counsel
for the Holders and the Initial Purchasers (and (ii) promptly file with the SEC a new Registration
Statement under the Securities Act, or a post-effective amendment to such Registration Statement,
to effect compliance with the Securities Act. The Company shall use its reasonable best efforts to
cause such new Registration Statement or post-effective amendment to become effective under the
Securities Act as soon as practicable and shall promptly give notice of such effectiveness to each
Notice Holder, a single counsel for the Holders and the Initial Purchasers. Each such new
Registration Statement, if any, shall be deemed, for purposes of this Agreement, to be a Subsequent
Shelf Registration Statement.

     (f) Notify the Notice Holders and the Initial Purchasers promptly (but in any event within two
Business Days), (i) when a Prospectus or any prospectus supplement or post-effective amendment has
been filed, and, with respect to a Registration Statement or any post-effective amendment, when the
same has become effective under the Securities Act (including in such notice a written statement
that any Notice Holder may, upon request, obtain, at the sole expense of the Company, one conformed
copy of such Registration Statement or post-effective amendment including financial statements and
schedules, documents incorporated or deemed to be incorporated by reference and exhibits), (ii) of
the issuance by the SEC of any stop order suspending the effectiveness of a Registration Statement
or of any order preventing or suspending the use of any preliminary Prospectus or the initiation of
any proceedings for that purpose, (iii) of the happening of any event, the existence of any
condition or any information becoming known that makes any statement made in such Registration
Statement or related Prospectus or any document incorporated or deemed to be incorporated therein
by reference untrue in any material respect or that requires the making of any changes in or
amendments or supplements to such Registration Statement, Prospectus or documents so that, in the
case of the Registration Statement, it will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the Prospectus, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading, (iv) of the Company’s determination that a post-effective amendment to a
Registration Statement would be appropriate, or (v) that the effectiveness of the Shelf
Registration Statement is suspended pursuant to Section 3(b) hereof.

     (g) Use their reasonable best efforts to prevent the issuance of any order suspending the
effectiveness of a Registration Statement or of any order preventing or suspending the use of a
Prospectus and, if any such order is issued, to use its reasonable best efforts to obtain the
withdrawal of any such order at the earliest possible moment.

     (h) Furnish to each Notice Holder, a single counsel to such Holders (chosen in accordance with
Section 6(b)) and the Initial Purchasers at the sole expense of the Company, one conformed copy of
the Registration Statement or Registration Statements and each post-effective amendment thereto,
including financial statements and schedules, and, if requested, all documents incorporated or
deemed to be incorporated therein by reference and all exhibits.

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     (i) Deliver to each Notice Holder, a single counsel to such Holders (chosen in accordance with
Section 6(b)) and the Initial Purchasers, at the sole expense of the Company, as many copies of the
Prospectus (including each form of preliminary Prospectus) and each amendment or supplement thereto
and any documents incorporated by reference therein as such Persons may reasonably request; and,
subject to the second paragraph of Section 5 hereof, the Company and the Guarantor hereby consent
to the use of such Prospectus and each amendment or supplement thereto by each of the Notice
Holders and the Initial Purchasers in connection with the offering and sale of the Registrable
Securities covered by such Prospectus and any amendment or supplement thereto in the manner set
forth therein.

     (j) Prior to any public offering of Registrable Securities, to use their reasonable best
efforts to register or qualify, to the extent required by applicable law, and to cooperate with the
Notice Holders and a single counsel to such Holders (chosen in accordance with Section 6(b)) in
connection with the registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities or offer and sale under the securities or Blue Sky
laws of such jurisdictions within the United States as any Notice Holder may reasonably request in
writing; keep each such registration or qualification (or exemption therefrom) effective during the
period such Registration Statement is required to be kept effective and do any and all other acts
or things reasonably necessary or advisable to enable the disposition in such jurisdictions of the
Registrable Securities covered by the applicable Registration Statement; provided further, however,
that neither the Company nor the Guarantor shall be required to (A) qualify generally to do
business in any jurisdiction where it is not then so qualified, (B) take any action that would
subject it to general service of process in any such jurisdiction where it is not then so subject
or (C) subject itself to taxation in excess of a nominal dollar amount in any such jurisdiction
where it is not then so subject.

     (k) Cooperate with each Notice Holder to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold, which certificates shall not bear any
restrictive legends (unless required by applicable law) and shall be in a form eligible for deposit
with the Depository; and enable such Registrable Securities to be in such denominations and
registered in such names as such Notice Holder may reasonably request.

     (l) Use their reasonable best efforts to cause the Registrable Securities covered by any Shelf
Registration Statement to be registered with or approved by such other governmental agencies or
authorities as may be reasonably necessary to enable the Notice Holder or Notice Holders thereof to
consummate the disposition of such Registrable Securities, except as may be required solely as a
consequence of the nature of such Notice Holder’s business, in which case the Company and the
Guarantor will cooperate in all reasonable respects with the filing of such Registration Statement
and the granting of such approvals.

     (m) Upon the occurrence of any event contemplated by Section 4(f)(ii), 4(f)(iii) or 4(f)(iv)
hereof, as promptly as practicable prepare and (subject to Section 4(a) hereof) use their
reasonable best efforts to file with the SEC, at the expense of the Company and the Guarantor, a
supplement or post-effective amendment to the Registration Statement or a supplement to the related
Prospectus or any document incorporated or deemed to be incorporated therein by reference, or file
any other required document so that, as thereafter delivered to the purchasers of

11

 

the Registrable Securities being sold thereunder, any such Prospectus will not contain an
untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading.

     (n) Prior to the effective date of the Initial Registration Statement, (i) provide the Trustee
with certificates for the Notes in a form eligible for deposit with the Depository and (ii) provide
a CUSIP number for the Notes.

     (o) Prior to the effective date of the Initial Registration Statement relating to the
Underlying Shares, provide a CUSIP number for the Underlying Shares.

     (p) Make available for inspection by not more than one representative of selling Notice
Holders of such Registrable Securities being sold and one firm of attorneys and one accounting firm
(collectively, the “Inspectors”), at the offices where normally kept, during reasonable business
hours at such time or times as shall be mutually convenient for the Guarantor and the Inspectors as
a group, all financial and other records, pertinent corporate documents and instruments of the
Guarantor and its subsidiaries (collectively, the “Records”) as shall be reasonably necessary to
enable Inspectors to exercise any applicable due diligence responsibilities, and cause the
officers, directors and employees of the Guarantor and its subsidiaries to supply all information
reasonably requested by any such Inspector in connection with such Registration Statement. Records
that the Guarantor determines, in good faith, to be confidential and any Records that it notifies
the Inspectors are confidential shall not be disclosed by any Inspector unless (i) the disclosure
of such Records is necessary to avoid or correct a material misstatement or material omission in
such Registration Statement if such Registration Statement is then available, (ii) the release of
such Records is ordered pursuant to a subpoena or other order from a court of competent
jurisdiction, (iii) disclosure of such information is, in the opinion of counsel for the Notice
Holders, necessary or advisable in connection with any action, claim, suit or proceeding, directly
involving or potentially involving such Notice Holder or their Inspectors and arising out of, based
upon, relating to, or involving this Agreement or any transactions contemplated hereby or arising
hereunder or (iv) the information in such Records has been made generally available to the public
other than through the acts of the Inspectors; provided, however, that prior notice shall be
provided as soon as practicable to the Company of the potential disclosure of any information by
such Inspector pursuant to clauses (ii) or (iii) of this sentence to permit the Company or the
Guarantor to obtain a protective order (or waive the provisions of this Section 4(p)). Each
Inspector shall take such actions as are reasonably necessary to protect the confidentiality of
such information to the extent such actions are otherwise not inconsistent with, an impairment of
or in derogation of the rights and interests of the Holder or any Inspector, unless and until such
information in such Records has been made generally available to the public other than as a result
of a breach of this Agreement.

     (q) Provide (i) the Holders of the Registrable Securities to be included in a Registration
Statement and not more than one counsel for all the Holders of such Registrable Securities chosen
in accordance with Section 6(b), reasonable opportunity to participate in the preparation of a
Registration Statement, each Prospectus included therein or filed with the SEC, and each amendment
or supplement thereto.

12

 

     (r) Comply with all applicable rules and regulations of the SEC and make generally available
to its securityholders earning statements (which need not be audited) satisfying the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under
the Securities Act) for a 12-month period commencing on the first day of the first fiscal quarter
of the Guarantor commencing after the effective date of a Registration Statement, which statements
shall be made available no later than 45 days after the end of any 12-month period or 90 days after
the end of any 12-month period if such period is a fiscal year of the Guarantor.

     (s) Cooperate with each Notice Holder of the Registrable Securities covered by any
Registration Statement and their counsel in connection with any filings required to be made with
the NASD, including, if the Conduct Rules of the NASD or any successor thereto as amended from time
to time so require, engaging a “qualified independent underwriter” (“QIU”) as contemplated therein
and otherwise applying the provisions of this Agreement to such QIU as though it were a
participating underwriter.

     (t) Cause the Indenture to be qualified under the TIA not later than the effective date of the
first Registration Statement relating to the Notes; and in connection therewith, cooperate with the
Trustee and the Notice Holders to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the TIA; and execute, and use their
reasonable best efforts to cause the Trustee to execute, all documents as may be required to effect
such changes and all other forms and documents required to be filed with the SEC to enable the
Indenture to be so qualified in a timely manner.

     (u) Use their reasonable best efforts to take all other steps necessary or advisable to effect
the registration of the Registrable Securities covered by a Registration Statement or Registration
Statements, as contemplated hereby.

     (v) Take all actions and enter into such customary agreements (including, if requested, an
underwriting agreement in customary form) as are necessary, or reasonably requested by the Holders
of a majority of the Registrable Securities being sold, in order to expedite or facilitate
disposition of such Registrable Securities; and in such connection, whether or not an underwriting
agreement is entered into and whether or not the registration is an underwritten registration:

     (i) the Company and the Guarantor shall make such representations and warranties to the
Holders of such Registrable Securities and the underwriters, if any, in form, substance and
scope as would be customarily made by the Company and the Guarantor to underwriters in
similar offerings of securities;

     (ii) the Company and the Guarantor shall obtain opinions of counsel of the Company and
the Guarantor and updates thereof addressed to each selling Holder and the underwriters, if
any, covering the matters that would be customarily covered in opinions requested in sales
of securities or underwritten offerings;

     (iii) the Company and the Guarantor shall obtain “comfort letters” and updates thereof
from the Company’s and the Guarantor’s independent certified public accountants

13

 

(and, if necessary, any other independent certified public accountants of any
subsidiary of the Company or the Guarantor or of any business acquired by the Company or the
Guarantor for which financial statements are, or are required to be, included in any Shelf
Registration Statement) addressed to the underwriters, if any, and the selling Holders of
Registrable Securities (to the extent consistent with Statement on Auditing Standards No. 72
of the American Institute of Certified Public Accounts), such letters to be in customary
form and covering matters of the type that would customarily be covered in “comfort letters”
to underwriters in connection with similar underwritten offerings;

     (iv) the Company and the Guarantor shall, if an underwriting agreement is entered into,
cause any such underwriting agreement to contain indemnification provisions and procedures
substantially equivalent to the indemnification provisions and procedures set forth in
Section 6 hereof with respect to the underwriters and all other parties to be indemnified
pursuant to said Section; and

     (v) the Company shall deliver such documents and certificates as may be reasonably
requested and as are customarily delivered in similar offerings to the holders of a majority
of the Registrable Securities being sold and to the underwriters, if any;

the above to be done at (x) the effectiveness of any Shelf Registration Statement (and each
post-effective amendment thereto) and (y) each closing under any underwriting or similar agreement
as and to the extent required thereunder.

     5. Holder’s Obligations.

     Each Holder agrees, by acquisition of the Registrable Securities, that no Holder shall be
entitled to sell any of such Registrable Securities pursuant to a Registration Statement or to
receive a Prospectus relating thereto, unless such Holder has furnished the Company and the
Guarantor with a Notice and Questionnaire as required pursuant to Section 2(d) hereof (including
the information required to be included in such Notice and Questionnaire) and the information set
forth in the next sentence. Each Notice Holder agrees promptly to furnish to the Company all
information required to be disclosed in order to make the information previously furnished to the
Company and the Guarantor by such Notice Holder not misleading and any other information regarding
such Notice Holder and the distribution of such Registrable Securities as the Company and or the
Guarantor may from time to time reasonably request. Any sale of any Registrable Securities by any
Holder shall constitute a representation and warranty by such Holder that the information relating
to such Holder and its plan of distribution is as set forth in the Prospectus delivered by such
Holder in connection with such disposition, that such Prospectus does not as of the time of such
sale contain any untrue statement of a material fact relating to or provided by such Holder or its
plan of distribution and that such Prospectus does not as of the time of such sale omit to state
any material fact relating to or provided by such Holder or its plan of distribution necessary to
make the statements in such Prospectus, in the light of the circumstances under which they were
made, not misleading.

     Each Holder agrees by acquisition of its Registrable Securities that, upon actual receipt of
any notice from the Company and the Guarantor of the happening of any event of the kind

14

 

described in Section 4(f)(ii), 4(f)(iii) or 4(f)(iv) hereof, or of a
Deferral Period pursuant to Section 3(b) hereof, such Holder will forthwith discontinue disposition
of such Registrable Securities covered by such Registration Statement or Prospectus until such
Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 4(m) hereof, or until it is advised in writing by the Company and the Guarantor
that the use of the applicable Prospectus may be resumed, and has received copies of any amendments
or supplements thereto.

     Notwithstanding anything to the contrary contained herein, neither the Company nor the
Guarantor shall have any liability for any incremental expenses incurred as a result of an
underwritten offering of any Registrable Securities.

     6. Registration Expenses

     (a) All fees and expenses incident to the performance of or compliance with this Agreement by
the Company and the Guarantor shall be borne by the Company and the Guarantor, including, without
limitation, (i) all registration and filing fees (including, without limitation, fees and expenses
of compliance with state securities or Blue Sky laws, including, without limitation, reasonable
fees and disbursements of counsel in connection with Blue Sky qualifications of the Registrable
Securities, (ii) printing expenses, including, without limitation, expenses of printing
certificates for Registrable Securities in a form eligible for deposit with the Depository and of
printing prospectuses if the printing of prospectuses is requested by the Holders of the majority
in Amount of Registrable Securities included in any Registration Statement, (iii) messenger,
telephone and delivery expenses of the Company and the Guarantor, (iv) fees and disbursements of
counsel for the Company and the Guarantor and reasonable fees and disbursements of one special
counsel for the Holders of Registrable Securities (subject to the provisions of Section
6(b) hereof), (v) fees and disbursements of its independent certified public accountants
(including, without limitation, the expenses of any special audit and “cold comfort” letters
required by or incident to such performance), (vi) Securities Act liability insurance, if the
Company and the Guarantor desire such insurance, (vii) fees and expenses of all other Persons
retained by the Company and the Guarantor, (viii) internal expenses of the Company and the
Guarantor (including, without limitation, all salaries and expenses of officers and employees of
the Company and the Guarantor performing legal or accounting duties), (ix) the expense of any
annual audit, (x) the fees and expenses incurred in connection with the listing of the securities
to be registered on any securities exchange, if applicable, and (xi) the expenses relating to
printing, word processing and distributing all Registration Statements and any other documents
necessary in order to comply with this Agreement. Notwithstanding anything in this Agreement to
the contrary, each Holder shall pay all underwriting discounts and brokerage commissions with
respect to any Registrable Securities sold by it.

     (b) The Company and the Guarantor shall reimburse the Holders of the Registrable Securities
being registered in a Shelf Registration for the reasonable fees and disbursements of not more than
one counsel chosen by the Holders of a majority in Amount of the Registrable Securities to be
included in such Registration Statement.

15

 

     7. Indemnification

     (a) The Company and the Guarantor, jointly and severally, agree to indemnify and hold harmless
(i) the Initial Purchasers, (ii) each Notice Holder, (iii) each Person, if any, who controls
(within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act)
any of the foregoing (any of the Persons referred to in this clause (iii) being hereinafter
referred to as a “controlling person”), and (iv) the respective officers, directors, partners,
employees, representatives and agents of the Initial Purchasers, the Notice Holders (including
predecessor Notice Holders) or any controlling person (any person referred to in clause (i), (ii),
(iii) or (iv) may hereinafter be referred to as an “Indemnified Holder”), from and against any and
all losses, claims, damages, liabilities and judgments (including, without limitation, reasonable
legal fees and other expenses incurred in connection with any suit, action or proceeding or any
claim asserted) caused by any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement or Prospectus, or any amendment or supplement thereto or
any related preliminary Prospectus, or caused by any omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein not
misleading, except insofar as such losses, claims, damages or liabilities are caused by any untrue
statement or omission or alleged untrue statement or omission made in reliance upon and in
conformity with information relating to any Indemnified Holder furnished to the Company or the
Guarantor in writing by such Indemnified Holder expressly for use in therein. The Company and the
Guarantor shall notify such Indemnified Holder promptly of the institution, threat or assertion of
any claim, proceeding (including any governmental investigation) or litigation in connection with
the matters addressed by this Agreement which involves the Company, the Guarantor or such
Indemnified Holder.

     (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company
and the Guarantor, each of their respective directors, officers and each Person who controls the
Company or the Guarantor within the meaning of either Section 15 of the Securities Act or Section
20 of the Exchange Act to the same extent as the foregoing indemnity from the Company and the
Guarantor to each Holder, but only with reference to such losses, claims, damages or liabilities
which are caused by any untrue statement or omission or alleged untrue statement or omission made
in reliance upon and in conformity with information relating to a Holder furnished to the Company
or the Guarantor in writing by such Holder expressly for use in any Registration Statement or
Prospectus, or any amendment or supplement thereto or any related preliminary Prospectus. In no
event shall the liability of any selling Holder of Registrable Securities hereunder be greater in
amount than the dollar amount of the proceeds received by such Holder upon the sale, pursuant to
the Shelf Registration Statement, of the Registrable Securities giving rise to such indemnification
obligation.

     If any suit, action, proceeding (including any governmental or regulatory investigation),
claim or demand shall be brought or asserted against any Person in respect of which indemnity may
be sought pursuant to either of the two preceding paragraphs, such Person (the “Indemnified
Person”) shall promptly notify the Person or Persons against whom such indemnity may be sought
(each an “Indemnifying Person”) in writing, and such Indemnifying Person, upon request of the
Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified Person to
represent the Indemnified Person and any others entitled to

16

 

indemnification pursuant to this Section 7 that the Indemnifying Person may designate
in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding.
In any such proceeding, the Indemnifying Person shall be able to participate in such proceeding
and, to the extent that it so elects, jointly with any other similarly situated Indemnifying
Person, to assume the defense thereof, subject to the right of the Indemnified Person to be
separately represented and to direct its own defense if the named parties to any such proceeding
include both the Indemnified Person and the Indemnifying Person and the Indemnified Person has been
advised by counsel that representation of both parties by the same counsel would be inappropriate
due to actual or potential differing interests between them. In any such proceeding, any
Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of
such counsel shall be at the expense of such Indemnified Person unless (i) such Indemnifying Person
and the Indemnified Person shall have mutually agreed to the contrary or (ii) the named parties in
any such proceeding (including any impleaded parties) include an Indemnifying Person and an
Indemnified Person and representation of both parties by the same counsel would be inappropriate
due to actual or potential differing interests between them. It is understood that an Indemnifying
Person shall not, in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to
any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be
reimbursed as they are incurred. Any such separate firm for the Indemnified Holders shall be
designated in writing by the Holders of the majority in Amount of Registrable Securities, and any
such separate firm for the Company, its directors, respective officers and such control Persons of
the Company shall be designated in writing by the Company, and any such separate firm for the
Guarantor, its directors, respective officers and such control Persons of the Guarantor shall be
designated in writing by the Guarantor. The Indemnifying Person shall not be liable for any
settlement of any proceeding effected without its written consent, but if settled with such consent
or if there be a final judgment for the plaintiff, such Indemnifying Person agrees to indemnify any
Indemnified Person from and against any loss or liability by reason of such settlement or judgment.
No Indemnifying Person shall, without the prior written consent of the Indemnified Person, effect
any settlement of any pending or threatened proceeding in respect of which any Indemnified Person
is or could have been a party and indemnity could have been sought hereunder by such Indemnified
Person, unless such settlement includes an unconditional release of such Indemnified Person from
all liability on claims that are the subject matter of such proceeding.

     If the indemnification provided for in the first and second paragraphs of this Section
7 is unavailable to an Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in
lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or
payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i)
in such proportion as is appropriate to reflect the relative benefits received by the Indemnifying
Person on the one hand and the Indemnified Person on the other hand pursuant to the Purchase
Agreement or from the offering of the Registrable Securities pursuant to any Shelf Registration or
(ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Indemnifying Person on the one hand and the Indemnified
Person on the other in connection with the statements or omissions that resulted in such losses,

17

 

claims, damages or liabilities, as well as any other relevant equitable considerations. The
relative benefits received by the Company and the Guarantor on the one hand and any Indemnified
Holder on the other shall be deemed to be in the same proportion as the total net proceeds from the
initial offering and sale of Notes (before deducting expenses) received by the Company bear to the
total net proceeds received by such Indemnified Holder from sales of Registrable Securities giving
rise to such obligations. The relative fault of the parties shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the
Company or the Guarantor or such Indemnified Holder and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or omission.

     Each of the Company, the Guarantor and the Initial Purchasers agrees that it would not be just
and equitable if contribution pursuant to this Section 7 were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount paid or payable by
an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in the
immediately preceding paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses incurred by such Indemnified Person in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 7, in no event shall any Holder be required to contribute any amount in excess of
the amount by which the net proceeds received by such Holder from the sale of the Registrable
Securities pursuant to a Shelf Registration Statement exceeds the amount of damages which such
Holder would have otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation.

     The remedies provided for in this Section 7 are not exclusive and shall not limit any
rights or remedies that may otherwise be available to any indemnified party at law or in equity.

     The indemnity and contribution agreements contained in this Section 7 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of any Holder or any Person controlling any Holder or by or
on behalf of the Company or the Guarantor, their respective officers or directors or any other
Person controlling any of the Company or the Guarantor and (iii) acceptance of and payment for any
of the Registrable Securities.

     8. Rules 144 and 144A

     The Company and the Guarantor covenant that they will file the reports required to be filed by
them under the Securities Act and the Exchange Act, if any, in a timely manner in accordance with
the requirements of the Securities Act and the Exchange Act and, for so long as any Registrable
Securities remain outstanding, if at any time either the Company or the Guarantor are not required
to file such reports, they will, upon the request of any Holder, make available such information
necessary to permit sales pursuant to Rule 144A. The Company and

18

 

the Guarantor further covenant that, for so long as any Registrable Securities remain
outstanding, they will use their reasonable best efforts to take such further action as any Holder
may reasonably request in writing, all to the extent required from time to time to enable such
holder to sell Notes without registration under the Securities Act within the limitation of the
exemptions provided by (a) Rule 144(k) and Rule 144A, or (b) any similar rule or regulation
hereafter adopted by the SEC. Notwithstanding the foregoing, nothing in this Section 8
shall be deemed to require the Company or the Guarantor to register any of their securities
pursuant to the Exchange Act.

     9. Miscellaneous

     (a) No Inconsistent Agreements. Neither the Company nor the Guarantor have, as of the
date hereof, entered into, and neither the Company nor the Guarantor shall, after the date of this
Agreement, enter into any agreement with respect to any of its securities that is inconsistent with
the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. Neither the Company nor the Guarantor will enter into any agreement with respect to any of
its securities that will grant to any Person piggyback registration rights with respect to a
Registration Statement, except to the extent any existing right has not heretofore been waived;
provided, however, that notwithstanding anything herein to the contrary the rights
previously granted by the Company or the Guarantor shall not be negatively affected by the
Agreement.

     (b) Adjustments Affecting Registrable Securities. Neither the Company nor the
Guarantor shall, directly or indirectly, take any action with respect to the Notes as a class that
would adversely affect the ability of the Holders to include their Notes in a registration
undertaken pursuant to this Agreement.

     (c) Amendments and Waivers. The provisions of this Agreement may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not
be given, otherwise than with the prior written consent of the Company and the Guarantor and the
Holders of not less than the majority in Amount of Registrable Securities; provided,
however, that Section 7 and this Section 9(c) may not be amended, modified
or supplemented without the prior written consent of the Company, the Guarantor and each Holder
(including, in the case of an amendment, modification or supplement of Section 7, any
Person who was a Holder of Notes disposed of pursuant to any Registration Statement).
Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders of Registrable Securities
whose securities are being sold pursuant to a Registration Statement and that does not directly or
indirectly affect, impair, limit or compromise the rights of other Holders of Registrable
Securities may be given by Holders of at least a majority in Amount of Registrable Securities being
sold by such Holders pursuant to such Registration Statement.

     (d) Notices. All notices and other communications (including without limitation any
notices or other communications to the Trustee) provided for or permitted hereunder shall be made
in writing by hand-delivery, registered first-class mail, next-day air courier or facsimile:

19

 

     (1) if to a Holder, at the most current address of such Holder set forth on the records
of the registrar under the Indenture, in the case of Holders of Notes, and the stock ledger
of the Guarantor.

     (2) if to the Initial Purchasers:

Banc of America Securities LLC

9 West 57th Street

New York, New York 10019

Attention: Syndication Department

and

Lehman Brothers Inc.

745 Seventh Avenue

New York, New York 10019

Attention: Syndication Department

     with copies to:

Davis Polk & Wardell

450 Lexington Avenue

New York, NY 10017

Facsimile No.: (212) 450-3800

     (3) if to the Company, at the addresses as follows:

Core Laboratories LP

6316 Windfern Road,

Houston, Texas 77040

Attention: General Counsel

Facsimile No.: (713) 328-2152

     with copies to:

Vinson & Elkins L.L.P.

2300 First City Tower

1001 Fannin Street

Houston, Texas 77002-6760

Attention: Mark Kelly

Facsimile No.: 713-615-5531

     if to the Guarantor:

Core Laboratories N.V.

Herengracht 424

20

 

1017 BZ Amsterdam

The Netherlands

     with a copy to:

Core Laboratories LP

6316 Windfern Road

Houston, Texas 77040

Attn: General Counsel

Telephone Number: (713) 328-2673

Facsimile Number: (713) 328-2152

     All such notices and communications shall be deemed to have been duly given: when delivered by
hand, if personally delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; one Business Day after being timely delivered to a next-day air courier; and
when the addressor receives facsimile confirmation, if sent by facsimile.

     (e) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties hereto, including the Holders;
provided, however, that this Agreement shall not inure to the benefit of or be
binding upon a successor or assign of a Holder unless and except to the extent such successor or
assign holds Notes.

     (f) Counterparts. This Agreement may be executed (including by facsimile) in any
number of counterparts and by the parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement.

     (g) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

     (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WHOLLY WITHIN
THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

     (i)  Severability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their best efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the parties that they
would have executed the remaining terms, provisions, covenants and restrictions without including
any of such that may be hereafter declared invalid, illegal, void or unenforceable.

21

 

     (j) Securities Held by the Company or Its Affiliates. Whenever the consent or
approval of Holders of a specified percentage in Amount of Registrable Securities is required
hereunder, Registrable Securities held by the Company, the Guarantor or their respective affiliates
(as such term is defined in Rule 405 under the Securities Act) shall not be counted in determining
whether such consent or approval was given by the Holders of such required percentage.

     (k) Third Party Beneficiaries. Holders are intended third party beneficiaries of this
Agreement and this Agreement may be enforced by such Persons.

     (l) Entire Agreement. This Agreement, together with the Purchase Agreement and the
Indenture, is intended by the parties as a final and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein and therein
and any and all prior oral or written agreements, representations, or warranties, contracts,
understandings, correspondence, conversations and memoranda between the Initial Purchasers on the
one hand and the Company and the Guarantor on the other, or between or among any agents,
representatives, parents, subsidiaries, affiliates, predecessors in interest or successors in
interest with respect to the subject matter hereof and thereof are merged herein and replaced
hereby. In no event will such methods of distribution take the form of an underwritten offering of
the Registrable Securities without the prior agreement of the Company.

     (m) Termination. This Agreement and the obligations of the parties hereunder shall
terminate upon the end of the Effectiveness Period, except for any liabilities or obligations under
Section 5, 6 or 7 hereof and the obligations to make payments of and provide for Liquidated Damages
under Section 3 hereof to the extent such damages accrue prior to the end of the Effectiveness
Period, each of which shall remain in effect in accordance with its terms.

[Signature Page Follows]

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

	 	 	 	 	 	 	 
	 	 	CORE LABORATORIES LP	 	 
	 

	 	By:
	 	Core Laboratories, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Richard L. Bergmark	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	CORE LABORATORIES N.V.	 	 
	 

	 	By:
	 	Core Laboratories International B.V.,	 	 
	 

	 	 	 	its Sole Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Jan Willem Sodderland	 	 
	 

	 	Title:
	 	Managing Director of Core Laboratories
International B.V.	 	 
	 
	 	 	 	 	 	 
	Confirmed and accepted as of
the date first above written:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	LEHMAN BROTHERS INC.
	 	 	 	 	 	 

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

BANC OF AMERICA SECURITIES LLC

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

[Signature
Page to Registration Rights Agreement]exv4w4

 

	 	 	 
	 

	 	October 31, 2006
	 
	 	 	 	 	 
	To:

	 	Core Laboratories LP
	 

	 	6316 Windfern Road
	 

	 	Houston, Texas 77040
	 

	 	Attn: General Counsel
	 

	 	Telephone: (713) 328-2673
	 

	 	Facsimile: (713) 328-2152
	 
	 	 
	From:

	 	Lehman Brothers Inc., acting as Agent
	 

	 	Lehman Brothers OTC Derivatives Inc., acting as Principal
	 

	 	Attention: Transaction Management Group
	 

	 	Telephone: (212) 526-9986
	 

	 	Facsimile: (646) 885-9546
	 
	 	 
	Re:

	 	Convertible Senior Note Hedge Transaction
	 

	 	(Transaction Reference Number:                                        )

Ladies and Gentlemen:

     The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below (the
“Transaction”) between Lehman Brothers OTC Derivatives Inc. (“Dealer”) represented by Lehman
Brothers Inc. (“Agent”) as its agent, and Core Laboratories LP (“Counterparty”). This
communication constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified
below. Lehman Brothers OTC Derivatives Inc. is not a member of the Securities Investor Protection
Corporation.

     1. This Confirmation is subject to, and incorporates, the definitions and provisions of the
2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions
and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and
together with the 2000 Definitions, the “Definitions”), in each case as published by the
International Swaps and Derivatives Association, Inc. (“ISDA”). In the event of any inconsistency
between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern.
Certain defined terms used herein have the meanings assigned to them in Indenture to be dated as of
November 6, 2006 between Counterparty and Wells Fargo Bank, National Association as trustee (the
“Indenture”) relating to the USD250,000,000 principal amount of 0.25% senior exchangeable notes due
2011 (the “Convertible Notes”). In the event of any inconsistency between the terms defined in the
Indenture and this Confirmation, this Confirmation shall govern. For the avoidance of doubt,
references herein to sections of the Indenture are based on the draft of the Indenture most
recently reviewed by the parties at the time of execution of this Confirmation. If any relevant
sections of the Indenture are changed, added or renumbered following execution of this
Confirmation, the parties will amend this Confirmation in good faith to preserve the economic
intent of the parties.

     This Confirmation evidences a complete and binding agreement between Dealer and Counterparty
as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall be
subject to an agreement (the “Agreement”) in the form of the 2002 ISDA Master Agreement (the “ISDA
Form”) as if Dealer and Counterparty had executed an agreement in such form (without any Schedule
but with the elections set forth in this Confirmation). For the avoidance of doubt, the
Transaction shall be the only transaction under the Agreement.

     All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

     2. The Transaction constitutes a Share Option Transaction for purposes of the Equity
Definitions. The terms of the particular Transaction to which this Confirmation relates are as
follows:

 

 

General Terms:

	 	 	 	 	 
	 

	 	Trade Date:
	 	October 31, 2006
	 
	 	 	 	 
	 

	 	Effective Date:
	 	The initial closing date of the offering of the Convertible Notes.
	 
	 	 	 	 
	 

	 	Option Style:
	 	As described under “Procedures for Exercise” below.
	 
	 	 	 	 
	 

	 	Option Type:
	 	Call
	 
	 	 	 	 
	 

	 	Seller:
	 	Dealer
	 
	 	 	 	 
	 

	 	Buyer:
	 	Counterparty
	 
	 	 	 	 
	 

	 	Shares:
	 	The Common Stock of Core Laboratories N.V., par value EUR 0.04 per share (NYSE
Ticker Symbol: “CLB”).
	 
	 	 	 	 
	 

	 	Number of Options:
	 	The number of Convertible Notes in denominations of USD1,000 principal
amount issued by Counterparty on the closing date for the initial issuance of the
Convertible Notes.
	 
	 	 	 	 
	 

	 	Number of Shares:
	 	The product of the Number of Options and the Conversion Rate (but without
regard to any adjustments to the Conversion Rate pursuant to Section 11.09 of the
Indenture).
	 
	 	 	 	 
	 

	 	Conversion Rate:
	 	The “Exchange Rate,” as defined in the Indenture.
	 
	 	 	 	 
	 

	 	Premium:
	 	USD71,875,000.
	 
	 	 	 	 
	 

	 	Premium Payment Date:
	 	The Effective Date
	 
	 	 	 	 
	 

	 	Exchange:
	 	New York Stock Exchange
	 
	 	 	 	 
	 

	 	Related Exchange:
	 	All Exchanges

Procedures for Exercise:

	 	 	 	 	 
	 

	 	Potential Exercise Dates:
	 	Each Conversion Date.
	 
	 	 	 	 
	 

	 	Conversion Date:
	 	Each “Exchange Date,” as defined in the Indenture.

	 
	 	 	 	 
	 

	 	Required Exercise on
Conversion Dates:
	 	On each Conversion Date, a number of Options equal to the number of
Convertible Notes in denominations of USD1,000 principal amount submitted for
conversion on such Conversion Date in accordance with the terms of the Indenture shall
be automatically exercised.

	 
	 	 	 	 
	 

	 	Expiration Date:
	 	October 31, 2011
	 
	 	 	 	 
	 

	 	Multiple Exercise:
	 	Applicable, as provided above under “Required Exercise on Conversion
Dates”.
	 
	 	 	 	 
	 

	 	Minimum Number of Options:
	 	Zero
	 
	 	 	 	 
	 

	 	Maximum Number of Options:
	 	Number of Options
	 
	 	 	 	 
	 

	 	Integral Multiple:
	 	Not Applicable
	 
	 	 	 	 
	 

	 	Automatic Exercise:
	 	As provided above under “Required Exercise on Conversion Dates”.

2

 

	 	 	 	 	 
	 

	 	Notice of Exercise:
	 	Notwithstanding the exercise of any Options hereunder, Counterparty
shall be entitled to receive the deliveries provided under “Settlement Terms” below
only if Counterparty shall have notified Dealer in writing prior to 5:00 PM, New York
City time, on the Exchange Business Day prior to the first day of the “Exchange
Reference Period”, as defined in the Indenture, relating to the Convertible Notes
converted on the Conversion Date relating to the relevant Exercise Date of (i) the
number of Options being exercised on such Exercise Date, (ii) the scheduled settlement
date under the Indenture for the Convertible Notes converted on the Conversion Date
corresponding to such Exercise Date; provided that Counterparty shall be entitled to
receive the deliveries provided under “Settlement Terms” in respect of any Convertible
Notes converted during the period beginning on the 31st calendar day prior to the
Stated Maturity (as defined in the Indenture) of the Convertible Notes and ending at
the close of business on the business day immediately preceding the Stated Maturity of
the Convertible Notes if Counterparty provides Dealer with the notice described above
for each such converted Convertible Note no later than the Stated Maturity.
	 
	 	 	 	 
	 

	 	Dealer’s Telephone
Number
and Telex and/or
Facsimile Number
and Contact
Details for purpose of
Giving Notice:
	 	To be provided by Dealer.

Settlement Terms:

	 	 	 	 	 
	 

	 	Settlement Date:
	 	In respect of an Exercise Date occurring on a Conversion Date, the
settlement date for Shares to be delivered under the Convertible Notes converted on
such Conversion Date pursuant to Section 11.05 of the Indenture; provided that the
Settlement Date will not be prior to the latest of (i) the date one Settlement Cycle
following the final day of the relevant “Exchange Reference Period”, as defined in the
Indenture, (ii) the Exchange Business Day immediately following the date on which
Counterparty gives notice to Dealer of such Settlement Date prior to 5:00 PM, New York
City time and (iii) the Exchange Business Day immediately following the date
Counterparty provides the Notice of Delivery Obligation.
	 
	 	 	 	 
	 

	 	Delivery Obligation:
	 	In lieu of the obligations set forth in Sections 8.1 and 9.1 of the
Equity Definitions, and subject to “Notice of Exercise” above, in respect of an
Exercise Date occurring on a Conversion Date, Dealer will deliver to Counterparty on
the related Settlement Date the number of Shares equal to the aggregate number of
Shares that Counterparty is obligated to deliver to the holder(s) of the Convertible
Notes converted on such Conversion Date pursuant to Section 11.05 of the

3

 

	 	 	 	 	 
	 

	 	 	 	Indenture (the “Convertible Obligation”);
provided that such obligation shall be determined
(i) excluding any Shares or cash that
Counterparty is obligated to deliver to holder(s)
of the Convertible Notes as a result of any
adjustments to the Conversion Rate pursuant to
Section 11.09 of the Indenture and (ii) without
regard to the election, if any, by Counterparty
to adjust the Conversion Rate and the related
conversion obligation pursuant to Section 11.10
of the Indenture.
	 
	 	 	 	 
	 

	 	Notice of Delivery Obligation:
	 	 No later than the Scheduled Trading Day immediately
following the last day of the “Exchange Reference Period”, as defined in the
Indenture, Counterparty shall give Dealer notice of the final number of Shares
comprising the Convertible Obligation (it being understood, for the avoidance of
doubt, that the requirement of Counterparty to deliver such notice shall not limit
Counterparty’s obligations with respect to Notice of Exercise, as set forth above, in
any way).
	 
	 	 	 	 
	 

	 	Other Applicable Provisions:
	 	 To the extent Dealer is obligated to deliver Shares
hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 (except that the
Representation and Agreement contained in Section 9.11 of the Equity Definitions shall
be modified by excluding any representations therein relating to restrictions,
obligations, limitations or requirements under applicable securities laws as a result
of the fact that Counterparty is the issuer of the Shares) and 9.12 of the Equity
Definitions will be applicable as if “Physical Settlement” applied to the Transaction.

Share Adjustments:

	 	 	 	 	 
	 

	 	Method of Adjustment:
	 	Notwithstanding Section 11.2 of the Equity Definitions, upon the
occurrence of any event or condition set forth in Sections 11.06, 11.07 and 11.08
(other than Section 11.08(d)) of the Indenture, the Calculation Agent shall make the
corresponding adjustment, if any, to any variable relevant to the exercise, settlement
or payment of the Transaction, to the extent an analogous adjustment is made under the
Indenture.

Extraordinary Events:

	 	 	 	 	 
	 

	 	Merger Events:
	 	Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event”
means the occurrence of any event or condition set forth in Section 11.14 of the
Indenture.
	 
	 	 	 	 
	 

	 	Tender Offer:
	 	Applicable. Notwithstanding Section 12.1(d) of the Equity Definitions, a
“Tender Offer” means the occurrence of any event or condition set forth in Section
11.08(d) of the Indenture.

4

 

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Consequences of Merger
Events and
Tender Offers:
	 	Notwithstanding Sections 12.2 and 12.3 of the Equity Definitions, upon the
occurrence of a Merger Event, or Tender Offer, the Calculation Agent shall make the
corresponding adjustment in respect of any adjustment under the Indenture to any one
or more of the nature of the Shares, the Number of Options, the Option Entitlement and
any other variable relevant to the exercise, settlement or payment for the
Transaction, to the extent an analogous adjustment is made under the Indenture;
provided that such adjustment shall be made without regard to any adjustment to the
Conversion Rate pursuant to Section 11.09 of the Indenture and the election, if any,
by Counterparty to adjust the Conversion Rate and the related conversion obligation
pursuant to Section 11.10 of the Indenture.
	 
	 	 	 	 
	 

	 	Nationalization, Insolvency
and Delisting:
	 	Cancellation and Payment (Calculation Agent Determination);
provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity
Definitions, it shall also constitute a Delisting if the Exchange is located in the
United States and the Shares are not immediately re-listed, re-traded or re-quoted on
any of the New York Stock Exchange, the American Stock Exchange, the Nasdaq Global
Select Market or the Nasdaq Global Market (or their respective successors); if the
Shares are immediately re-listed, re-traded or re-quoted on any such exchange or
quotation system, such exchange or quotation system shall thereafter be deemed to be
the Exchange.
	 
	 	 	 	 
	 

	 	Notice of Merger Consideration:
	 	 Upon the occurrence of a Merger Event that causes the
Shares to be converted into the right to receive more than a single type of
consideration (determined based in part upon any form of stockholder election),
Counterparty shall reasonably promptly (but in any event prior to the Merger Date)
notify the Calculation Agent of the weighted average of the types and amounts of
consideration received by the holders of Shares entitled to receive cash, securities
or other property or assets with respect to or in exchange for such Shares in any
Merger Event who affirmatively make such an election.
	 
	 	 	 	 
	 

	 	Adjustment to Notes:
	 	Counterparty shall promptly notify the Calculation Agent in writing of
any adjustment to the Conversion Rate under the Convertible Notes upon the occurrence
of any event or condition set forth in Sections 11.06, 11.07 and 11.08 of the
Indenture or any adjustment, determination or calculation with respect to any other
economic term relevant to the conversion of the Convertible Notes, and, to the extent
such adjustment, determination or calculation requires an exercise of discretion by
Counterparty

5

 

	 	 	 	 	 
	 

	 	 	 	under the terms of the Indenture, shall consult
with the Calculation Agent in order to achieve a
commercially reasonable adjustment, determination
or calculation; provided that such adjustment,
determination or calculation shall remain at the
sole discretion of Counterparty. The Calculation
Agent shall promptly notify Dealer and
Counterparty of the corresponding adjustment, if
any, to any variable relevant to the exercise,
settlement or payment of the Transaction.

Additional Disruption Events:

	 	 	 	 	 
	 

	 	(a) Change in Law:
	 	Applicable; provided that Section 12.9(a)(ii) of the
Equity Definitions is hereby amended by replacing the phrase “the interpretation”
in the third line thereof with the phrase “or announcement or statement of the
formal or informal interpretation”.
	 
	 	 	 	 
	 

	 	(b)Failure to Deliver:
	 	Applicable
	 
	 	 	 	 
	 

	 	(c)Insolvency Filing:
	 	Applicable
	 
	 	 	 	 
	 

	 	(d)Hedging Disruption:
	 	Not Applicable
	 
	 	 	 	 
	 

	 	(e)Increased Cost of Hedging:
	 	Not Applicable

	 	 	 	 	 
	 

	 	Hedging Party:
	 	For all applicable Additional Disruption Events, Dealer
	 
	 	 	 	 
	 

	 	Determining Party:
	 	For all applicable Additional Disruption Events, Dealer

	 	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgments
	 	 
	Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	3. Calculation Agent:
	 	Dealer.
	 
	 	 	 	 
	 

	 	4. Account Details:	 	 
	 
	 	 	 	 
	 

	 	Dealer
Payment Instructions:
	 	 
	 
	 	 	 	 
	 

	 	To
be provided by Dealer.
	 	 
	 
	 	 	 	 
	 

	 	Counterparty
Payment Instructions:
	 	 
	 
	 	 	 	 
	 

	 	To
be provided by Counterparty.
	 	 
	 
	 	 	 	 
	 

	 	5. Offices:	 	 
	 
	 	 	 	 
	 

	 	The
Office of Dealer for the Transaction is:
	 	 
	 
	 	 	 	 
	 

	 	Lehman
Brothers OTC Derivatives Inc.
	 	 
	 

	 	745
Seventh Avenue
	 	 
	 

	 	New
York, New York 10019
	 	 

6

 

     The Office of Counterparty for the Transaction is:

	 	 	 	 	 
	 

	 	To:
	 	Core Laboratories LP
	 

	 	 	 	6316 Windfern Road
	 

	 	 	 	Houston, Texas 77040

     6. Notices: For purposes of this Confirmation:

	 	(a)	 	Address for notices or communications to Counterparty:

	 	 	 	 	 
	 

	 	To:
	 	Core Laboratories, LP
	 

	 	 	 	6316 Windfern Road
	 

	 	 	 	Houston, Texas 77040
	 

	 	Attn:
	 	General Counsel
	 

	 	Telephone:
	 	(713) 328-2673
	 

	 	Facsimile:
	 	(713) 328-2152

	 	(b)	 	Address for notices or communications to Dealer:

	 	 	 	 	 
	 

	 	To:
	 	Lehman Brothers Inc., acting as Agent
	 

	 	 	 	Lehman Brothers OTC Derivatives Inc., acting as Principal
	 

	 	 	 	745 Seventh Avenue
	 

	 	 	 	New York, New York 10019
	 

	 	Attn:
	 	Transaction Management Group
	 

	 	Telephone No.:
	 	(212) 526-9986
	 

	 	Facsimile No.:
	 	(646) 885-9546
	 
	 	 	 	 
	 

	 	with a copy:	 	 
	 
	 	 	 	 
	 

	 	To:
	 	Lehman Brothers Inc., acting as Agent
	 

	 	 	 	Lehman Brothers OTC Derivatives Inc., acting as Principal
	 

	 	 	 	745 Seventh Avenue
	 

	 	 	 	New York, New York 10019
	 

	 	Attn:
	 	Steve Roti — US Equity Linked
	 

	 	Telephone No.:
	 	(212) 526-0055
	 

	 	Facsimile No.:
	 	(917) 552-0561

     7. Representations, Warranties and Agreements:

     (a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Counterparty represents and warrants to and for the benefit of, and agrees with,
Dealer as follows:

     (i) On the Trade Date, (A) none of Counterparty and its officers and directors is
aware of any material nonpublic information regarding Counterparty or the Shares and (B)
all reports and other documents filed by Counterparty with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), when considered as a whole (with the more recent such reports and documents deemed
to amend inconsistent statements contained in any earlier such reports and documents), do
not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in the light of
the circumstances in which they were made, not misleading.

     (ii) (A) On the Trade Date, the Shares or securities that are convertible into, or
exchangeable or exercisable for Shares, are not, and shall not be, subject to a “restricted
period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”)
and (B) Counterparty shall not engage in any “distribution,” as such term is defined in
Regulation M, other than a distribution meeting the requirements of the exceptions set
forth in sections 101(b)(10) and

7

 

102(b)(7) of Regulation M, until the second Exchange Business Day immediately
following the Trade Date.

     (iii) On the Trade Date, neither Counterparty nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) shall
directly or indirectly (including, without limitation, by means of any cash-settled or
other derivative instrument) purchase, offer to purchase, place any bid or limit order that
would effect a purchase of, or commence any tender offer relating to, any Shares (or an
equivalent interest, including a unit of beneficial interest in a trust or limited
partnership or a depository share) or any security convertible into or exchangeable or
exercisable for Shares, except through Dealer.

     (iv) Without limiting the generality of Section 13.1 of the Equity Definitions,
Counterparty acknowledges that Dealer is not making any representations or warranties with
respect to the treatment of the Transaction under FASB Statements 133, 149 or 150, EITF
Issue No. 00-19 (or any successor issue statements) or under FASB’s Liabilities & Equity
Project.

     (v) Counterparty is not entering into this Confirmation to create actual or apparent
trading activity in the Shares (or any security convertible into or exchangeable for
Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any
security convertible into or exchangeable for Shares) or otherwise in violation of the
Exchange Act.

     (vi) Without limiting the generality of Section 3(a)(iii) of the Agreement, the
Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

     (vii) Prior to the Effective Date, Counterparty shall deliver to Dealer evidence of
corporate authority authorizing the Transaction and such other certificate or certificates
as Dealer shall reasonably request.

     (viii) Counterparty is not, and after giving effect to the transactions contemplated
hereby will not be, an “investment company” as such term is defined in the Investment
Company Act of 1940, as amended.

     (ix) On the Trade Date (A) the assets of Counterparty at their fair valuation exceed
the liabilities of Counterparty, including contingent liabilities, (B) the capital of
Counterparty is adequate to conduct the business of Counterparty and (C) Counterparty has
the ability to pay its debts and obligations as such debts mature and does not intend to,
or does not believe that it will, incur debt beyond its ability to pay as such debts
mature.

     (x) Counterparty understands that no obligations of Dealer to it hereunder will be
entitled to the benefit of deposit insurance and that such obligations will not be
guaranteed by any affiliate of Dealer or any governmental agency.

     (b) Each of Dealer and Counterparty agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

     (c) Each of Dealer and Counterparty acknowledges that the offer and sale of the Transaction to
it is intended to be exempt from registration under the Securities Act of 1933, as amended (the
“Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Counterparty represents and
warrants to Dealer that (i) it has the financial ability to bear the economic risk of its
investment in the Transaction and is able to bear a total loss of its investment, (ii) it is an
“accredited investor” as that term is defined in Regulation D as promulgated under the Securities
Act, (iii) it is entering into the Transaction for its own account and without a view to the
distribution or resale thereof, and (iv) the assignment, transfer or other disposition of the
Transaction has not been and will not be registered under the Securities Act and is restricted
under this Confirmation, the Securities Act and state securities laws.

     (d) Each of Dealer and Counterparty agrees and acknowledges that Dealer is a “financial
institution,” “swap participant” and “financial participant” within the meaning of Sections
101(22), 101(53C) and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”). The
parties hereto further agree and acknowledge (A) that this Confirmation is (i) a “securities
contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which
each payment and delivery hereunder is a “settlement payment,” as such term is defined in Section
741(8) of the Bankruptcy Code, and

8

 

     (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code,
with respect to which each payment and delivery hereunder is a “transfer,” as such term is defined
in Section 101(54) of the Bankruptcy Code, and (B) that Dealer is entitled to the protections
afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of
the Bankruptcy Code.

     8. Other Provisions:

     (a) Additional Termination Events. The occurrence of (i) an event of default with respect to
Counterparty under the terms of the Convertible Notes as set forth Section 6.01 in the Indenture,
(ii) an Amendment Event or (iii) a Repayment Event shall be an Additional Termination Event with
respect to which the Transaction is the sole Affected Transaction and Counterparty is the sole
Affected Party and Dealer shall be the party entitled to designate an Early Termination Date
pursuant to Section 6(b) of the Agreement; provided that in the case of a Repayment Event, the
Transaction shall be subject to termination only in respect of the number of Convertible Notes that
cease to be outstanding in connection with or as a result of such Repayment Event.

     “Amendment Event” means that Counterparty amends, modifies, supplements or waives any
term of the Indenture or the Convertible Notes governing the principal amount, coupon,
maturity, repurchase obligation of Counterparty, redemption right of Counterparty, any term
relating to conversion of the Convertible Notes (including changes to the conversion price,
conversion settlement dates or conversion conditions), or any term that would require
consent of the holders of not less than 100% of the principal amount of the Convertible
Notes to amend.

     “Repayment Event” means that (A) any Convertible Notes are repurchased (whether in
connection with or as a result of a fundamental change, howsoever defined, or for any other
reason) by Counterparty or any of its subsidiaries, (B) any Convertible Notes are delivered
to Counterparty in exchange for delivery of any property or assets of Counterparty or any
of its subsidiaries (howsoever described), (C) any principal of any of the Convertible
Notes is repaid prior to the final maturity date of the Convertible Notes (whether
following acceleration of the Convertible Notes or otherwise), or (D) any Convertible Notes
are exchanged by or for the benefit of the holders thereof for any other securities of
Counterparty or any of its affiliates (or any other property, or any combination thereof)
pursuant to any exchange offer or similar transaction; provided that, in the case of clause
(B) and clause (D), conversions of the Convertible Notes pursuant to the terms of the
Indenture as in effect on the date hereof shall not be Repayment Events.

     (b) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events.
If, subject to Section 8(j) below, Dealer shall owe Counterparty any amount pursuant to Sections
12.6, 12.7 or 12.9 of the Equity Definitions (except in the event of an Insolvency or a
Nationalization, in each case, in which the consideration or proceeds to be paid to holders of
Shares consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the
event of an Event of Default in which Counterparty is the Defaulting Party or a Termination Event
in which Counterparty is the Affected Party, that resulted from an event or events within
Counterparty’s control) (a “Payment Obligation”), Counterparty shall have the right, in its sole
discretion, to require Dealer to satisfy any such Payment Obligation by the Share Termination
Alternative (as defined below) by giving irrevocable telephonic notice to Dealer, confirmed in
writing within one Scheduled Trading Day, between the hours of 9:00 A.M. and 4:00 P.M. New York
City time on the relevant Early Termination Date, as applicable (“Notice of Share Termination”).
Upon such Notice of Share Termination, the following provisions shall apply on the Scheduled
Trading Day immediately following the relevant Early Termination Date, as applicable:

	 	 	 
	Share Termination Alternative:

	 	Applicable and means that Dealer shall
deliver to Counterparty the Share
Termination Delivery Property on the date
on which the Payment Obligation would
otherwise be due pursuant to Section 12.7
or 12.9 of the Equity Definitions or
Section 6(d)(ii) of the Agreement, as
applicable (the “Share Termination
Payment Date”), in satisfaction of the
Payment Obligation.

9

 

	 	 	 
	Share Termination Delivery 

Property:

	 	A number of Share Termination Delivery
Units, as calculated by the Calculation
Agent, equal to the Payment Obligation
divided by the Share Termination Unit
Price. The Calculation Agent shall
adjust the Share Termination Delivery
Property by replacing any fractional
portion of a security therein with an
amount of cash equal to the value of such
fractional security based on the values
used to calculate the Share Termination
Unit Price.
	 
	 	 
	Share Termination Unit Price:

	 	The value of property contained in one
Share Termination Delivery Unit on the
date such Share Termination Delivery
Units are to be delivered as Share
Termination Delivery Property, as
determined by the Calculation Agent in
its discretion by commercially reasonable
means and notified by the Calculation
Agent to Dealer at the time of
notification of the Payment Obligation.
	 
	 	 
	Share Termination Delivery Unit:

	 	In the case of a Termination Event, Event
of Default or Delisting, one Share or, in
the case of an Insolvency or
Nationalization, a unit consisting of
the number or amount of each type of
property received by a holder of one
Share (without consideration of any
requirement to pay cash or other
consideration in lieu of fractional
amounts of any securities) in such
Insolvency or Nationalization. If such
Insolvency or Nationalization involves a
choice of consideration to be received by
holders, such holder shall be deemed to
have elected to receive the maximum
possible amount of cash.
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Other applicable provisions:

	 	If Share Termination Alternative is
applicable, the provisions of Sections
9.8, 9.9, 9.10, 9.11 and 9.12 of the
Equity Definitions will be applicable as
if “Physical Settlement” were applicable,
except that all references to “Shares”
shall be read as references to “Share
Termination Delivery Units”; provided
that the Representation and Agreement
contained in Section 9.11 of the Equity
Definitions shall be modified by
excluding any representations therein
relating to restrictions, obligations,
limitations or requirements under
applicable securities laws as a result of
the fact that Buyer is the issuer of any
Share Termination Delivery Units (or any
part thereof).

     (c) Disposition of Hedge Shares. Counterparty hereby agrees that if in the good faith
reasonable judgment of Dealer based on the advice of outside counsel, the Shares (the “Hedge
Shares”) acquired by Dealer for the purpose of hedging its obligations pursuant to the Transaction
cannot be sold in the public market by Dealer without registration under the Securities Act,
Counterparty shall, at its election: (i) in order to allow Dealer to sell the Hedge Shares in a
registered offering, make available to Dealer an effective registration statement under the
Securities Act to cover the resale of such Hedge Shares and (A) enter into an agreement, in form
and substance satisfactory to Dealer, substantially in the form of an underwriting agreement for a
registered offering, (B) provide accountant’s “comfort” letters in customary form for registered
offerings of equity securities, (C) provide disclosure opinions of nationally recognized outside
counsel to Counterparty reasonably acceptable to Dealer, (D) provide other customary opinions,
certificates and closing documents customary in form for registered offerings of equity securities
and (E) afford Dealer a reasonable opportunity to conduct a “due diligence” investigation with
respect to Counterparty customary in scope for underwritten offerings of equity securities;
provided, however, that if Dealer, in its sole reasonable discretion, is not satisfied with access
to due diligence materials, the results of its due diligence investigation, or the procedures and
documentation for the registered offering referred to above, then clause (ii) or clause (iii) of
this Section 8(c) shall apply at the election of Counterparty; (ii) in order to allow Dealer to
sell the Hedge Shares in a private placement enter into a private placement agreement substantially
similar to private placement purchase agreements customary for private placements of equity
securities, in form and substance satisfactory to Dealer, including customary representations,

10

 

covenants, blue sky and other governmental filings and/or registrations, indemnities to
Dealer, due diligence rights (for Dealer or any designated buyer of the Hedge Shares from Dealer),
opinions and certificates and such other documentation as is customary for private placements
agreements, all reasonably acceptable to Dealer (in which case, the Calculation Agent shall make
any adjustments to the terms of the Transaction that are necessary, in its reasonable judgment, to
compensate Dealer for any discount from the public market price of the Shares incurred on the sale
of Hedge Shares in a private placement); or (iii) purchase the Hedge Shares from Dealer at the VWAP
Price on such Exchange Business Days and in the amounts as specified by Dealer in good faith.
“VWAP Price” means, on any Exchange Business Day, the per Share volume-weighted average price on
the New York Stock Exchange as displayed under the heading “Bloomberg VWAP” on Bloomberg page “CLB
<Equity> AQR.N” (or any successor thereto) in respect of the period from 9:30 AM to 4:00 PM
(New York City time) on such Exchange Business Day (or if such volume-weighted average price is
unavailable, the market value of one Share on such Exchange Business Day, as determined by the
Calculation Agent using a volume-weighted method).

     (d) Repurchase Notices. Counterparty shall, on any day on which Counterparty effects any
repurchase of Shares, promptly give Dealer a written notice of such repurchase (a “Repurchase
Notice”) on such day if, following such repurchase, the Notice Percentage as determined on such day
is (i) greater than 9.5% and (ii) greater by 0.5% than the Notice Percentage included in the
immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice,
greater than the Notice Percentage as of the date hereof). The “Notice Percentage” as of any day
is the fraction, expressed as a percentage, the numerator of which is the Number of Shares and the
denominator of which is the number of Shares outstanding on such day. In the event that
Counterparty fails to provide Dealer with a Repurchase Notice on the day and in the manner
specified in this Section 8(d), then Counterparty agrees to indemnify and hold harmless Dealer, its
affiliates and their respective directors, officers, employees, agents and controlling persons
(Dealer and each such person being an “Indemnified Party”) from and against any and all losses,
claims, damages and liabilities (or actions in respect thereof), joint or several, to which such
Indemnified Party may become subject under applicable securities laws, including without
limitation, Section 16 of the Exchange Act, relating to or arising out of such failure. If for any
reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to
hold harmless any Indemnified Party, then Counterparty shall contribute, to the maximum extent
permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss,
claim, damage or liability. In addition, Counterparty will reimburse any Indemnified Party for all
expenses (including reasonable counsel fees and expenses) as they are incurred (after notice to
Counterparty) in connection with the investigation of, preparation for or defense or settlement of
any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not
such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding
is initiated or brought by or on behalf of Counterparty. This indemnity shall survive the
completion of the Transaction contemplated by this Confirmation and any assignment and delegation
of the Transaction made pursuant to this Confirmation or the Agreement shall inure to the benefit
of any permitted assignee of Dealer.

     (e) Transfer and Assignment. Dealer may transfer or assign its rights and obligations
hereunder and under the Agreement, in whole or in part, without the consent of Counterparty to any
Affiliate of Dealer or to any third party with a rating for its long term, unsecured and
unsubordinated indebtedness of A- or better by Standard & Poor’s Ratings Service or its successor
(“S&P”), or A3 or better by Moody’s Investors Service (“Moody’s”) or, if either S&P or Moody’s
ceases to rate such debt, at least an equivalent rating or better by a substitute rating agency
mutually agreed by Counterparty and Dealer. If at any time at which the Equity Percentage exceeds
9.00%, Dealer, in its discretion, is unable to effect such a transfer or assignment after its
commercially reasonable efforts on pricing terms reasonably acceptable to Dealer such that the
Equity Percentage is reduced to 9.00% or less, Dealer may designate any Scheduled Trading Day as an
Early Termination Date with respect to a portion (the “Terminated Portion”) of the Transaction,
such that the Equity Percentage following such partial termination will be equal to or less than
9.00%. In the event that Dealer so designates an Early Termination Date with respect to a portion
of the Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement and
Section 8(b) of this Confirmation as if (i) an Early Termination Date had been designated in
respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii)
Counterparty shall be the sole Affected Party with respect to such partial termination and (iii)
such portion of the Transaction shall be the only Terminated Transaction. Notwithstanding the
preceding, Dealer acknowledges that its Equity

11

 

Percentage on and immediately after the Effective Date may be in excess of 9.00% and Dealer
hereby agrees that it does not intend to designate an Early Termination Date due to its initial
Equity Percentage arising on and immediately after the Effective Date as a result of entering into
this Transaction. The “Equity Percentage” as of any day is the fraction, expressed as a
percentage, (A) the numerator of which is the sum of the number of Shares that Dealer or any of its
affiliates beneficially own (within the meaning of Section 13 of the Exchange Act) on such day,
other than any Shares so owned as a hedge of the Transaction, and the Number of Shares and (B) the
denominator of which is the number of Shares outstanding on such day.

     (f) Staggered Settlement. Dealer may, by notice to Counterparty prior to any Settlement Date
(a “Nominal Settlement Date”), elect to deliver the Shares on two or more dates (each, a “Staggered
Settlement Date”) or at two or more times on the Nominal Settlement Date as follows:

     (i) in such notice, Dealer will specify to Counterparty the related Staggered
Settlement Dates (each of which will be on or prior to such Nominal Settlement Date, but
not prior to the beginning of the related “Exchange Reference Period”) or delivery times
and how it will allocate the Shares it is required to deliver under “Delivery Obligation”
(above) among the Staggered Settlement Dates or delivery times; and

     (ii) the aggregate number of Shares that Dealer will deliver to Counterparty hereunder
on all such Staggered Settlement Dates and delivery times will equal the number of Shares
that Dealer would otherwise be required to deliver on such Nominal Settlement Date.

     (g) Extension of Settlement. Dealer may extend any Settlement Date, in whole or in part, to
the extent that a Loss of Stock Borrow (with a Maximum Stock Loan Rate of 200 basis points) exists
as of the originally scheduled Settlement Date.

     (h) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Counterparty and each of its employees, representatives, or other agents may, at
Counterparty’s sole discretion, disclose to any and all persons, without limitation of any kind,
the tax treatment and tax structure of the Transaction and all materials of any kind (including
opinions or other tax analyses) that are provided to Counterparty relating to such tax treatment
and tax structure.

     (i) Designation by Dealer. Notwithstanding any other provision in this Confirmation to the
contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other
securities to or from Counterparty, Dealer may designate any of its affiliates to purchase, sell,
receive or deliver such shares or other securities and otherwise to perform Dealer obligations in
respect of the Transaction on behalf of Dealer and any such designee may assume such obligations.
Dealer shall be discharged of its obligations to Counterparty to the extent of any such
performance.

     (j) Netting and Set-off. (i) If on any date cash would otherwise be payable or Shares or
other property would otherwise be deliverable hereunder or pursuant to the Agreement or pursuant to
any other agreement between the parties by Counterparty to Dealer and cash would otherwise be
payable or Shares or other property would otherwise be deliverable hereunder or pursuant to the
Agreement or pursuant to any other agreement between the parties by Dealer to Counterparty and the
type of property required to be paid or delivered by each such party on such date is the same,
then, on such date, each such party’s obligation to make such payment or delivery will be
automatically satisfied and discharged and, if the aggregate amount that would otherwise have been
payable or deliverable by one such party exceeds the aggregate amount that would otherwise have
been payable or deliverable by the other such party, replaced by an obligation of the party by whom
the larger aggregate amount would have been payable or deliverable to pay or deliver to the other
party the excess of the larger aggregate amount over the smaller aggregate amount.

     (ii) In addition to and without limiting any rights of set-off that a party hereto may
have as a matter of law, pursuant to contract or otherwise, upon the occurrence of an Early
Termination Date, Dealer shall have the right to terminate, liquidate and otherwise close
out the Transaction and to set off any obligation or right that Dealer may have to or
against Counterparty hereunder or under the Agreement against any right or obligation
Dealer may have against or to Counterparty, including without limitation any right to
receive a payment or delivery pursuant to any provision of the Agreement or hereunder. In
the case of a set-off of any obligation to release,

12

 

deliver or pay assets against any right to receive assets of the same type, such
obligation and right shall be set off in kind. In the case of a set-off of any obligation
to release, deliver or pay assets against any right to receive assets of any other type,
the value of each of such obligation and such right shall be determined by the Calculation
Agent and the result of such set-off shall be that the net obligor shall pay or deliver to
the other party an amount of cash or assets, at the net obligor’s option, with a value
(determined, in the case of a delivery of assets, by the Calculation Agent) equal to that
of the net obligation. In determining the value of any obligation to release or deliver
Shares or any right to receive Shares, the value at any time of such obligation or right
shall be determined by reference to the market value of the Shares at such time, as
determined by the Calculation Agent. If an obligation or right is unascertained at the
time of any such set-off, the Calculation Agent may in good faith estimate the amount or
value of such obligation or right, in which case set-off will be effected in respect of
that estimate, and the relevant party shall account to the other party at the time such
obligation or right is ascertained.

     (iii) Notwithstanding any provision of the Agreement (including without limitation
Section 6(f) thereof) and this Confirmation (including without limitation this Section
8(j)) or any other agreement between the parties to the contrary, (A) Counterparty shall
not net or set off its obligations under the Transaction, if any, against its rights
against Dealer under any other transaction or instrument; (B) Dealer may net and set off
any rights of Dealer against Counterparty arising under the Transaction only against
obligations of Dealer to Counterparty arising under any transaction or instrument if such
transaction or instrument does not convey rights to Dealer senior to the claims of common
stockholders in the event of Counterparty’s bankruptcy; and (C) in the event of
Counterparty’s bankruptcy, Dealer waives any and all rights it may have to set-off in
respect of the Transaction, whether arising under agreement, applicable law or otherwise.
Dealer will give notice to Counterparty of any netting or set off effected under this
provision.

     (k) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Counterparty’s bankruptcy. For the avoidance of doubt, the parties
agree that the preceding sentence shall not apply at any time other than during Counterparty’s
bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations
under this Confirmation or the Agreement.

     (l) Early Unwind. In the event the sale by Counterparty of the Convertible Notes is not
consummated with the initial purchasers pursuant to the Purchase Agreement for any reason by the
close of business in New York on November 3, 2006 (the “Early Unwind Date”), the Transaction shall
automatically terminate (the “Early Unwind”), on the Early Unwind Date and the Transaction and all
of the respective rights and obligations of Dealer and Counterparty thereunder shall be cancelled
and terminated, and if the sale by Counterparty of the Convertible Notes is not consummated with
the initial purchasers to the Purchase Agreement by the close of business in New York on the Early
Unwind Date other than as a result of a breach or default by Dealer (or any Affiliate thereof) of
its (or such Affiliate’s) obligations under the Purchase Agreement, Counterparty shall pay to
Dealer an amount in cash equal to the aggregate amount of costs and expenses relating to the
unwinding of Dealer’s hedging activities in respect of the Transaction (including market losses
incurred in reselling any Shares purchased by Dealer or its affiliates in connection with such
hedging activities). Following such termination, cancellation and payment, each party shall be
released and discharged by the other party from and agrees not to make any claim against the other
party with respect to any obligations or liabilities of either party arising out of and to be
performed in connection with the Transaction either prior to or after the Early Unwind Date.
Dealer and Counterparty represent and acknowledge to the other that upon an Early Unwind and
following the payment referred to above, all obligations with respect to the Transaction shall be
deemed fully and finally discharged.

     (m) Waiver of Trial by Jury. EACH OF COUNTERPARTY AND DEALER HEREBY IRREVOCABLY WAIVES (ON
ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF DEALER OR ITS
AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

13

 

     (n) Governing Law. THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF
NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL
MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF
INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS.

     (o) Role of Agent. Lehman Brothers Inc., in its capacity as Agent will be responsible for
(A) effecting this Transaction, (B) issuing all required confirmations and statements to Dealer and
Counterparty, (C) maintaining books and records relating to this Transaction in accordance with its
standard practices and procedures and in accordance with applicable law and (D) unless otherwise
requested by Counterparty, receiving, delivering, and safeguarding Counterparty’s funds and any
securities in connection with this Transaction, in accordance with its standard practices and
procedures and in accordance with applicable law.

	 	(i)	 	Agent is acting in connection with this Transaction solely in its capacity as
Agent for Dealer and Counterparty pursuant to instructions from Dealer and
Counterparty. Agent shall have no responsibility or personal liability to Dealer or
Counterparty arising from any failure by Dealer or Counterparty to pay or perform any
obligations hereunder, or to monitor or enforce compliance by Dealer or Counterparty
with any obligation hereunder, including, without limitation, any obligations to
maintain collateral. Each of Dealer and Counterparty agrees to proceed solely against
the other to collect or recover any securities or monies owing to it in connection
with or as a result of this Transaction. Agent shall otherwise have no liability in
respect of this Transaction, except for its gross negligence or willful misconduct in
performing its duties as Agent.
	 
	 	(ii)	 	Any and all notices, demands, or communications of any kind relating to this
Transaction between Dealer and Counterparty shall be transmitted exclusively through
Agent at the following address:
	 
	 	 	 	Lehman Brothers Inc., acting as Agent
	 
	 	 	 	Lehman Brothers OTC Derivatives Inc., acting as Principal
	 
	 	745	 	Seventh Avenue
	 
	 	 	 	New York, New York 10019
	 
	 	 	 	Attn: Transaction Management Group
	 
	 	 	 	Telephone No.: (212) 526-9986
	 
	 	 	 	Facsimile No.: (646) 885-9546
	 
	 	(iii)	 	The date and time of the Transaction evidenced hereby will be furnished by
the Agent to Dealer and Counterparty upon written request.
	 
	 	(iv)	 	The Agent will furnish to Counterparty upon written request a statement as to
the source and amount of any remuneration received or to be received by the Agent in
connection with the Transaction evidenced hereby.
	 
	 	(v)	 	Dealer and Counterparty each represents and agrees (A) that this Transaction
is not unsuitable for it in the light of such party’s financial situation, investment
objectives and needs and (B) that it is entering into this Transaction in reliance
upon such tax, accounting, regulatory, legal and financial advice as it deems
necessary and not upon any view expressed by the other or the Agent.

     (t) Regulatory Provisions. (i) Counterparty represents and warrants that it has received and
read and understands the Notice of Regulatory Treatment and the OTC Option Risk Disclosure
Statement. (i) The Agent will furnish Counterparty upon written request a statement as to the
source and amount of any remuneration received or to be received by the Agent in connection with
the Transaction evidenced hereby.

14

 

     Counterparty hereby agrees (a) to check this Confirmation carefully and immediately upon
receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm
that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the
agreement between Dealer and Counterparty with respect to the Transaction, by manually signing this
Confirmation or this page hereof as evidence of agreement to such terms and providing the other
information requested herein and immediately returning an executed copy via facsimile to (646)
885-9546.

	 	 	 	 	 
	 	Yours faithfully,

Lehman Brothers OTC Derivatives Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Agreed and Accepted By:

CORE LABORATORIES LP

By: Core Laboratories, LLC, its general partner

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name: Richard L. Bergmark
	 	 
	 

	 	Title: Chief Financial Officer	 	 

15

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