Document:

Exhibit 10.2

 

Execution Version

 

AMENDED AND RESTATED SECURITY AGREEMENT

 

THIS AMENDED AND RESTATED SECURITY AGREEMENT (this “Security Agreement”) is entered into as of January 10, 2020 among RED ROBIN INTERNATIONAL, INC., a Nevada corporation (the “Borrower”), RED ROBIN GOURMET BURGERS, INC., a Delaware corporation (the “Parent”), those Domestic Subsidiaries of the Borrower or Parent that may from time to time become parties hereto (together with the Parent, individually a “Guarantor” and collectively the “Guarantors”; the Guarantors and the Borrower, individually an “Obligor” and collectively the “Obligors”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as administrative agent (in such capacity, the “Administrative Agent”) for the lenders from time to time party to the Credit Agreement described below (the “Lenders”).

 

RECITALS

 

WHEREAS, pursuant to the Security Agreement, dated as of June 30, 2016 (as amended prior to the date hereof, the “Existing Security Agreement”), among the Obligors party thereto and Wells Fargo Bank, National Association (as administrative agent), such Obligors granted a security interest in all of the Collateral (as defined in the Existing Security Agreement) to the Administrative Agent;

 

WHEREAS, pursuant to that certain Amended and Restated Credit Agreement dated as of the date hereof (as amended, modified, extended, renewed, refinanced, supplemented, restated or replaced from time to time, the “Credit Agreement”), among the Borrower, the Guarantors, the Lenders party thereto, and the Administrative Agent, the Lenders have agreed to make Loans and issue or participate in Letters of Credit upon the terms and subject to the conditions set forth therein; and

 

WHEREAS, it is a condition precedent to the effectiveness of the Credit Agreement and the obligations of the Lenders to make their respective Loans and to issue or participate in Letters of Credit under the Credit Agreement that the Obligors shall have executed and delivered this Security Agreement to the Administrative Agent for the ratable benefit of the Lenders.

 

NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Definitions.

 

(a)                                 Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to such terms in the Credit Agreement, and the following terms which are defined in the Uniform Commercial Code from time to time in effect in the State of New York (the “UCC”) are used herein as so defined: Accessions, Accounts, As-Extracted Collateral, Chattel Paper, Commercial Tort Claims, Consumer Goods, Control, Deposit Accounts, Documents, Electronic Chattel Paper, Equipment, Farm Products, Fixtures, General Intangibles, Goods, Instruments, Inventory, Investment Property, Letter-of-Credit Rights, Manufactured Homes, Proceeds, Securities Intermediary, Security Entitlement, Software, Supporting Obligations and Tangible Chattel Paper.  For purposes of this Security Agreement, the term “Lender” shall include any Hedge Bank or any Cash Management Bank that is party to a Secured Cash Management Agreement.

 

 

(b)                                 In addition, the following terms shall have the following meaning:

 

“Material”: shall mean, with respect to any item of Collateral (or amount payable thereunder or in connection therewith with respect to Accounts or similar obligations) qualified by the term “Material” in this Security Agreement, that such item of Collateral (or such amount), when aggregated with all other items of Collateral excluded because such items are qualified by the term “Material,” has a fair market value in excess of $500,000 in the aggregate.

 

“Secured Obligations”: the collective reference to the following:

 

(i)                                     all Secured Obligations (as defined in the Credit Agreement); and

 

(ii)                                  all reasonable expenses and charges, legal and otherwise, incurred by the Administrative Agent, the Lenders, the Hedge Banks and/or the Cash Management Banks (party to Secured Cash Management Agreements) in collecting or enforcing any of the Secured Obligations (as defined in the Credit Agreement), or in realizing on or protecting any security therefor, including without limitation, the security granted hereunder.

 

“Vehicles”: shall mean all cars, trucks, vans, trailers, construction and earth moving equipment and other vehicles covered by a certificate of title law of any state, including, without limitation, all tires and other appurtenances to any of the foregoing.

 

2.                                      Grant of Security Interest in the Collateral.  To secure the prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured Obligations, each Obligor hereby grants to the Administrative Agent, for the ratable benefit of the Lenders, a continuing security interest in, and a right to set off against, any and all right, title and interest of such Obligor in and to the following, whether now owned or existing or owned, acquired, or arising hereafter (collectively, the “Collateral”):

 

(a)                                 all Accounts;

 

(b)                                 all cash and Cash Equivalents;

 

(c)                                  all Chattel Paper (including Electronic Chattel Paper);

 

(d)                                 those certain Commercial Tort Claims of such Obligor set forth on Schedule 2(d) attached hereto (as such Schedule may be updated from time to time by the Obligors);

 

(e)                                  all Copyright Licenses;

 

(f)                                   all Copyrights;

 

(g)                                  all Deposit Accounts;

 

(h)                                 all Documents;

 

(i)                                     all Equipment;

 

(j)                                    all Fixtures;

 

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(k)                                 all General Intangibles;

 

(l)                                     all Goods;

 

(m)                             all Instruments;

 

(n)                                 all Inventory;

 

(o)                                 all Investment Property;

 

(p)                                 all Letter-of-Credit Rights;

 

(q)                                 all Material Contracts and all such other agreements, contracts, leases, licenses, tax sharing agreements or hedging arrangements now or hereafter entered into by an Obligor, as such agreements may be amended or otherwise modified from time to time (collectively, the “Assigned Agreements”), including without limitation, (i) all rights of an Obligor to receive moneys due and to become due under or pursuant to the Assigned Agreements, (ii) all rights of an Obligor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to the Assigned Agreements, (iii) claims of an Obligor for damages arising out of or for breach of or default under the Assigned Agreements and (iv) the right of an Obligor to terminate the Assigned Agreements, to perform thereunder and to compel performance and otherwise exercise all remedies thereunder;

 

(r)                                    all Payment Intangibles;

 

(s)                                   all Patent Licenses;

 

(t)                                    all Patents;

 

(u)                                 all Software;

 

(v)                                 all Supporting Obligations;

 

(w)                               all Trademark Licenses;

 

(x)                                 all Trademarks;

 

(y)                                 all books, records, ledger cards, files, correspondence, computer programs, tapes, disks, and related data processing software (owned by such Obligor or in which it has an interest) that at any time evidence or contain information relating to any Collateral or are otherwise necessary or helpful in the collection thereof or realization thereupon;

 

(z)                                  to the extent not otherwise included, all, Accessions, Proceeds and products of any and all of the foregoing; and

 

(aa)                          all other assets of such Obligor.

 

Notwithstanding the foregoing, “Collateral” shall not include (i) Deposit Accounts that consist of, contain or include money deposited by franchisees to the extent the Credit Parties do not have money deposited in such accounts exceeding $500,000 in the aggregate, (ii) shares of Capital Stock of any

 

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Foreign Subsidiary in excess of 65% of the total shares of outstanding Capital Stock of such Foreign Subsidiary to the extent that a pledge of, or lien on, such shares would result in adverse tax consequences for any Obligor, or (iii) any “Excluded Property” (as defined below) until such time, if any, as the prohibitions causing such property to be Excluded Property have terminated (howsoever occurring).  Upon such termination, the Administrative Agent will be deemed to have and at all times from and after the date hereof to have had, a security interest in such Excluded Property and the relevant Obligor shall take all actions necessary in the reasonable judgment of the Administrative Agent to perfect such security interest.  The term “Excluded Property” means (a) any permit, lease, license, agreement, contract or other General Intangible of any Obligor that validly prohibits the creation by such Obligor of a security interest therein which was entered into prior to the date hereof (to the extent such prohibition is not invalidated under the UCC) and (b) any permit, lease, license, agreement, contract or other General Intangible of such Obligor to the extent that any Requirement of Law applicable thereto prohibits the creation by such Obligor of a security interest therein, in each case other than (i) the right to receive any payment of money due in respect of such permit, lease, license, agreement, contract or other General Intangible and (ii) any Accessions, Proceeds or products of any such permit, lease, license, agreement, contract or other General Intangible (unless such Accessions, Proceeds or products would itself constitute Excluded Property).

 

The Obligors and the Administrative Agent, on behalf of the Lenders, hereby acknowledge and agree that the security interest created hereby in the Collateral (i) constitutes continuing collateral security for all of the Secured Obligations, whether now existing or hereafter arising and (ii) is not to be construed as an assignment of any Intellectual Property.

 

The term “Collateral” shall include any Secured Hedging Agreement or Secured Cash Management Agreement and any rights of the Obligors thereunder only for purposes of this Section 2.

 

3.                                      Provisions Relating to Accounts, Material Contracts and Assigned Agreements.

 

(a)                                 Anything herein to the contrary notwithstanding, each of the Obligors shall remain liable under each of its Accounts, Material Contracts and Assigned Agreements to observe and perform all of the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise to each such Account or the terms of such Material Contracts and Assigned Agreements.  Neither the Administrative Agent nor any Lender shall have any obligation or liability under any Account (or any agreement giving rise thereto), Material Contract or Assigned Agreement by reason of or arising out of this Security Agreement or the receipt by the Administrative Agent or any Lender of any payment relating to such Account, Material Contract or Assigned Agreement pursuant hereto, nor shall the Administrative Agent or any Lender be obligated in any manner to perform any of the obligations of an Obligor under or pursuant to any Account (or any agreement giving rise thereto), Material Contract or Assigned Agreement, to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party under any Account (or any agreement giving rise thereto), Material Contract or Assigned Agreement, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times.

 

(b)                                 At any time and from time to time, the Administrative Agent shall have the right, but not the obligation, to make test verifications of the Accounts in any manner and through any medium that it reasonably considers advisable, and the Obligors shall furnish all such assistance and information as the Administrative Agent may reasonably require in connection with such test verifications.  At any time upon the occurrence and during the continuation of a Default or Event of Default upon the Administrative Agent’s request and at the expense of the Obligors, the Obligors shall cause independent public accountants or others satisfactory to the Administrative Agent to

 

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furnish to the Administrative Agent reports showing reconciliations, aging and test verifications of, and trial balances for, the Accounts.  The Administrative Agent in its own name or in the name of others may communicate with account debtors on the Accounts to verify with them to the Administrative Agent’s satisfaction the existence, amount and terms of any Accounts.

 

4.                                      Representations and Warranties.  Each Obligor hereby represents and warrants to the Administrative Agent, for the benefit of the Lenders, that so long as any of the Secured Obligations remain outstanding (other than contingent indemnity obligations which by the terms thereof are stated to survive termination of the Credit Documents) or any Credit Document, Secured Hedging Agreement or Secured Cash Management Agreement is in effect, and until all of the Commitments shall have been terminated:

 

(a)                                 Chief Executive Office; Books & Records; Legal Name; State of Formation.  As of the Closing Date, each Obligor’s chief executive office and chief place of business are (and for the prior four months prior to the date hereof has been) located at the locations set forth on Schedule 3.19(c) to the Credit Agreement (as updated from time to time), and as of the Closing Date each Obligor keeps its books and records at such locations.  As of the Closing Date, each Obligor’s exact legal name is as shown in this Security Agreement and its state of formation is (and for the prior four months prior to the date hereof has been) the location set forth on Schedule 3.12 to the Credit Agreement.  No Obligor has in the past four months prior to the date hereof changed its name, been party to a merger, consolidation or other change in structure or used any tradename not disclosed on Schedule 4(a) attached hereto (as updated from time to time in accordance with Section 5(d));

 

(b)                                 Location of Collateral.  As of the Closing Date, the tangible Collateral owned by each Obligor is located solely at the locations set forth on Schedules 3.19(a) and 3.19(b) to the Credit Agreement (other than tangible Collateral with a fair market value not in excess of $1,000,000 in the aggregate);

 

(c)                                  Ownership.  Each Obligor is the legal and beneficial owner of its Collateral and has the right to pledge, sell, assign or transfer the same except to the extent that any pledge, sale, assignment or transfer of such Collateral is prohibited or limited by applicable law, regulations or administrative guidelines or by any contract entered into prior to the date hereof;

 

(d)                                 Security Interest/Priority.  This Security Agreement creates a valid security interest in favor of the Administrative Agent, for the benefit of the Lenders, in the Collateral of such Obligor and, when properly perfected by filing, the granting of Control to the Administrative Agent or otherwise, shall constitute a valid first priority, perfected security interest in the Collateral with respect to which the security interest is to be perfected, to the extent such security interest can be perfected by filing or otherwise under the UCC or by filing an appropriate notice with the United States Patent and Trademark Office or the United States Copyright Office, free and clear of all Liens except for Permitted Liens;

 

(e)                                            Consents.  Except for (i) the filing or recording of UCC financing statements, (ii) the filing of appropriate notices with the United States Patent and Trademark Office and the United States Copyright Office or (iii) obtaining Control to perfect the Liens created by this Security Agreement, no consent or authorization of, filing with, or other act by or in respect of, any arbitrator or Governmental Authority and no consent of any other Person (including, without limitation, any stockholder, member or creditor of such Obligor), is required under the UCC (y) for the grant by such Obligor of the security interest in the Collateral granted hereby or for the execution, delivery or performance of this Security Agreement by such Obligor or (z) for the

 

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perfection of such security interest or the exercise by the Administrative Agent of the rights and remedies provided for in this Security Agreement;

 

(f)                                   Types of Collateral.  None of the Collateral consists of, or is the Proceeds of, As-Extracted Collateral, Consumer Goods, Farm Products, Manufactured Homes or standing timber (as such term is used in the UCC);

 

(g)                                  Accounts.  With respect to the Accounts of the Obligors:  (i) each Account and the papers and documents of the applicable Obligor relating thereto are genuine and in all material respects what they purport to be; (ii) each Account arises out of a bona fide transaction for goods sold and delivered (or in the process of being delivered) by an Obligor or for services actually rendered by an Obligor, which transaction was conducted in the ordinary course of the Obligor’s business and was or will be performed substantially in accordance with the terms of any documents pertaining thereto; (iii) no Account of an Obligor is evidenced by any Instrument or Chattel Paper unless such Instrument or Chattel Paper has been theretofore delivered to, or submitted to the Control of, the Administrative Agent; provided that this subsection (iii) is not intended to (A) require the endorsement or delivery of ordinary course records and payment instructions or (B) require the endorsement or delivery of any individual Instrument or Chattel Paper in an amount of less than $500,000; (iv) the amount of each Account as shown on the applicable Obligor’s books and records, and on all invoices and statements which may be delivered to the Administrative Agent with respect thereto, is payable to the applicable Obligor and no material portion of the Accounts are contingent; (v) no Account is evidenced by a judgment, there are no set-offs, counterclaims or disputes existing or asserted with respect to any Account that in the aggregate could reasonably be expected to have a Material Adverse Effect, and no Obligor has made any agreement with any account debtor for any deduction from any Account except a discount or allowance for prompt payment allowed by the applicable Obligor and other discounts or allowances made in the ordinary course of its business; (vi) there are no facts, events or occurrences which in any material respect impair the validity or enforcement of any Material Account or could reasonably be expected to materially reduce the amount payable thereunder as shown on the applicable Obligor’s books and records and all invoices and statements delivered to the Administrative Agent with respect thereto; (vii) the right to receive payment under each Account is assignable except where the account debtor with respect to such Account is the United States government or any state government or any agency, department or instrumentality thereof, to the extent the assignment of any such right to payment is prohibited or limited by applicable law, regulations, administrative guidelines or contract; and (viii) the goods sold and/or services furnished giving rise to each Account are not subject to any security interest or Lien except the security interest granted the Administrative Agent herein and except for Permitted Liens;

 

(h)                                 Inventory.  No Inventory of an Obligor is held by a third party (other than an Obligor) pursuant to consignment, sale or return, sale on approval or similar arrangement;

 

(i)                                     Intellectual Property.

 

(i)                                     Schedule 3.16 to the Credit Agreement includes all material Intellectual Property owned by the Obligors in their own names, or that the Obligors have the right to use, as of the Closing Date;

 

(ii)                                  Each Material Copyright, Material Patent and Material Trademark owned by such Obligor is valid, subsisting, unexpired, and to such Obligor’s knowledge, enforceable and has not been abandoned, and such Obligor is legally entitled to use each of its tradenames;

 

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(iii)                               Except as set forth in Schedule 3.16 to the Credit Agreement, none of the Material Copyrights, Material Patents and Material Trademarks is the subject of any licensing or franchise agreement other than for the benefit of any franchisee;

 

(iv)                              No holding, decision or judgment has been rendered by any Governmental Authority which would limit, cancel or question the validity of any Material Intellectual Property of the Obligors;

 

(v)                                 No action or proceeding is pending seeking to limit, cancel or question the validity of any Material Intellectual Property, or which, if adversely determined, would have a material adverse effect on the value of any Material Intellectual Property;

 

(vi)                              All applications pertaining to the Material Copyrights, Material Patents and Material Trademarks of each Obligor have been duly and properly filed, and all registrations or letters pertaining to such Copyrights, Patents and Trademarks have been duly and properly filed and issued, and all of such Copyrights, Patents and Trademarks are valid and enforceable; and

 

(vii)                           No Obligor has made any assignment or agreement in conflict with the security interest of the Administrative Agent in the Material Intellectual Property of each Obligor hereunder;

 

(j)                                    Documents, Instruments and Chattel Paper.  All Documents, Instruments and Chattel Paper describing, evidencing or constituting Collateral are, to the Obligors’ knowledge, complete in all material respects, valid and genuine;

 

(k)                                 Equipment.  With respect to each Obligor’s Equipment that is material to its business:  (i) such Obligor has good and marketable title thereto or a valid leasehold interest therein; and (ii) all such Equipment is in normal operating condition and repair, ordinary wear and tear and obsolescence alone excepted (subject to casualty events), and is suitable for the uses to which it is customarily put in the conduct of such Obligor’s business;

 

(l)                                     Restrictions on Security Interest.  None of the Obligors is party to any material license (other than certain liquor licenses) or any material personal property lease that contains legally enforceable restrictions on the granting of a security interest therein; and

 

(m)                             Collateral Requiring Control to Perfect.  Set forth on Schedule 4(m) attached hereto is a description of all Deposit Accounts, Electronic Chattel Paper, Letter of Credit Rights, Securities Accounts and uncertificated Investment Property of the Obligors, including the name and address of (i) in the case of a Deposit Account, the depository institution, (ii) in the case of Electronic Chattel Paper, the account debtor, (iii) in the case of Letter of Credit Rights, the issuer or nominated person, as applicable, and (iv) in the case of a Securities Account or other uncertificated Investment Property, the Securities Intermediary or issuer, as applicable.

 

5.                                      Covenants.  Each Obligor covenants that, so long as any of the Secured Obligations remain outstanding (other than contingent indemnity obligations which by the terms thereof are stated to survive termination of the Credit Documents) or any Credit Document, Secured Hedging Agreement or Secured Cash Management Agreement is in effect, and until all of the Commitments shall have been terminated, such Obligor shall:

 

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(a)                                 Other Liens.  Defend its interests in the Collateral against the claims and demands of all other parties claiming an interest therein and keep the Collateral free from all Liens, except, in each case, for Permitted Liens, and not sell, exchange, transfer, assign, lease or otherwise dispose of the Collateral or any interest therein and, except as permitted under the Credit Agreement and the other Credit Documents;

 

(b)                                 Preservation of Collateral.  Keep all Material Collateral useful and necessary in its business in good order, condition and repair, ordinary wear and tear and obsolescence excepted; not use the Collateral in violation of the provisions of this Security Agreement or any other agreement relating to the Collateral or any policy insuring the Collateral or any applicable Requirement of Law except for violations that could not reasonably be expected to have a Material Adverse Effect; and not, without the prior written consent of the Administrative Agent, alter or remove any identifying symbol or number on any Material item of Equipment;

 

(c)                                  Possession or Control of Certain Collateral.  If (i) any amount payable under or in connection with any of the Collateral in excess of $500,000 shall be or become evidenced by any Instrument, Tangible Chattel Paper or Supporting Obligation or (ii) if any Collateral shall be stored or shipped subject to a Document or (iii) if any Collateral in excess of $500,000 shall consist of Investment Property in the form of certificated securities (other than Cash Equivalents held in accordance with the Credit Agreement), promptly notify the Administrative Agent of the existence of such Collateral and, at the reasonable request of the Administrative Agent, deliver such Instrument, Chattel Paper, Supporting Obligation, Document or Investment Property to the Administrative Agent to be held as Collateral pursuant to this Security Agreement.  If any Collateral shall consist of Material Deposit Accounts (subject to Section 5.14 of the Credit Agreement), Material Electronic Chattel Paper, Material Letter-of-Credit Rights or Material uncertificated Investment Property, promptly execute and deliver (and, with respect to any Collateral consisting of uncertificated Investment Property, cause the issuer or Securities Intermediary with respect to such Investment Property to execute and deliver) to the Administrative Agent all control agreements, assignments, instruments or other documents as reasonably requested by the Administrative Agent for the purposes of obtaining and maintaining Control of such Collateral;

 

(d)                                 Changes in Corporate Structure or Location.  Not, without providing 30 days prior written notice to the Administrative Agent and without filing (or confirming that the Administrative Agent has filed) such amendments to any previously filed financing statements as the Administrative Agent may require, (i) alter its corporate existence or, in one transaction or a series of transactions, merge into or consolidate with any other entity, or sell all or substantially all of its assets, except as permitted by the Credit Agreement, (ii) change its state of incorporation or formation or (iii) change its registered corporate name;

 

(e)                                  Inspection.  Allow the Administrative Agent or its representatives to visit and inspect the Collateral as set forth in Section 5.6 of the Credit Agreement;

 

(f)                                   Perfection of Security Interest. Each Obligor hereby authorizes the Administrative Agent to prepare and file such financing statements (including continuation statements) or amendments thereof or supplements thereto or other instruments as the Administrative Agent may from time to time deem necessary or appropriate in order to perfect and maintain the security interests granted on the Collateral hereunder except with respect to perfection only, for Collateral that is subject to a Permitted Lien under subsections (xi) and (xii) of the definition of Permitted Lien in accordance with the UCC.  Each Obligor shall also execute and deliver to the Administrative Agent such agreements, assignments or instruments (including affidavits, notices, reaffirmations and amendments and restatements of existing documents, as the Administrative Agent may reasonably

 

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request) and do all such other things as the Administrative Agent may reasonably deem necessary or appropriate (i) to assure to the Administrative Agent its security interests hereunder are perfected in accordance with the UCC, including, without limitation, (A) any financing statement that describes the Collateral as “all personal property” or “all assets” or in some other manner as the Administrative Agent deems necessary or advisable, (B) such financing statements (including continuation statements) or amendments thereof or supplements thereto or other instruments as the Administrative Agent may from time to time reasonably request in order to perfect and maintain the security interests granted hereunder in accordance with the UCC and any other personal property security legislation in the appropriate state(s) or province(s), (C) with regard to Investment Property, execute and cause any Securities Intermediary with respect to such Investment Property to execute a securities control agreement in form and substance satisfactory to the Administrative Agent, (D) with regard to registered Material Copyrights, a Notice of Grant of Security Interest in Copyrights for filing with the United States Copyright Office in the form of Schedule 5(f)(i) attached hereto, (E) with regard to Material Patents, a Notice of Grant of Security Interest in Patents for filing with the United States Patent and Trademark Office in the form of Schedule 5(f)(ii) attached hereto and (F) with regard to Material Trademarks, a Notice of Grant of Security Interest in Trademarks for filing with the United States Patent and Trademark Office in the form of Schedule 5(f)(iii) attached hereto, (ii) to consummate the transactions contemplated hereby and (iii) to otherwise protect and assure the Administrative Agent of its rights and interests hereunder.  To that end, each Obligor hereby irrevocably makes, constitutes and appoints the Administrative Agent, its nominee or any other person whom the Administrative Agent may designate, as such Obligor’s attorney in fact with full power and for the limited purpose to sign in the name of such Obligor any such notices or similar documents which in the Administrative Agent’s reasonable discretion would be necessary or appropriate in order to perfect and maintain perfection of the security interests granted hereunder other than, with respect to perfection only, in Vehicles and Collateral that is subject to a Permitted Lien under subsections (xi) and (xii) of the definition of Permitted Lien, such power, being coupled with an interest, being and remaining irrevocable so long as the Credit Agreement is in effect or any amounts payable thereunder, under any other Credit Document, Secured Hedging Agreement or Secured Cash Management Agreement shall remain outstanding (other than contingent indemnity obligations which by the terms thereof are stated to survive termination of the Credit Documents, and until all of the Commitments thereunder shall have terminated.  In the event for any reason the law of any jurisdiction other than New York becomes or is applicable to the Collateral of any Obligor or any part thereof, or to any of the Secured Obligations, such Obligor agrees to execute and deliver all such instruments and to do all such other things as the Administrative Agent reasonably deems necessary or appropriate to preserve, protect and enforce the security interests of the Administrative Agent under the law of such other jurisdiction other than, with respect to perfection only, in Vehicles and Collateral that is subject to a Permitted Lien under subsections (xi) and (xii) of the definition of Permitted Lien (and, if an Obligor shall fail to do so promptly upon the request of the Administrative Agent, then the Administrative Agent may execute any and all such requested documents on behalf of such Obligor pursuant to the power of attorney granted hereinabove).  Each Obligor agrees to mark its books and records to reflect the security interest of the Administrative Agent in the Collateral;

 

(g)                                  Collateral Held by Warehouseman, Bailee, etc.  If any Collateral exceeding an aggregate value of $1,000,000 is at any time in the possession or control of a warehouseman, bailee or any agent or processor of such Obligor (except if under repair or refurbishment), notify the Administrative Agent of such possession and, upon the Administrative Agent’s reasonable request, notify such Person of the Administrative Agent’s security interest for the benefit of the Lenders in such Collateral and instruct such Person to hold all such Collateral for the Administrative Agent’s account subject to the Administrative Agent’s instructions, and obtain from such Person a written

 

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acknowledgement of the Administrative Agent’s security interest therein, in form and substance reasonably satisfactory to the Administrative Agent;

 

(h)                                 Treatment of Accounts.  Unless and until an Event of Default occurs and is continuing, each Obligor may settle and adjust disputes and claims with its franchisees, customers and account debtors, handle returns and recoveries and grant discounts, credit and allowances in the ordinary course of its business as presently conducted and otherwise for amounts and on terms which such Obligor in good faith considers advisable.  However, upon the occurrence of any Event of Default and during the continuation thereof, if so instructed by the Administrative Agent, such Obligor shall settle and adjust disputes and claims as directed by the Administrative Agent, and no discount, credit or allowance other than on normal trade terms in the ordinary course of business shall be granted to any customer or account debtor and no returns of merchandise shall be accepted by such Obligor without the Administrative Agent’s consent.  The Administrative Agent may (but shall not be required to) at all times upon the occurrence of any Event of Default and during the continuance thereof, settle or adjust disputes and claims directly with customers or account debtors for amounts and upon terms which the Administrative Agent considers reasonable;

 

(i)                                     Covenants Relating to Inventory.

 

(i)                                     Maintain, keep and preserve all Material Inventory in accordance with standard operating procedures; and

 

(ii)                                  If any Inventory exceeding an aggregate value of $500,000 is at any time evidenced by a document of title, deliver such document of title to the Administrative Agent;

 

(j)                                    Covenants Relating to Copyrights.

 

(i)                                     Employ the Copyrights for each work with such notice of copyright as may be required by law to secure copyright protection;

 

(ii)                                  Not do any act or knowingly omit to do any act whereby any Material Copyright may become invalidated and (A) not do any act, or knowingly omit to do any act, whereby any Material Copyright may become injected into the public domain; (B) notify the Administrative Agent immediately if it knows, or has reason to know, that any Material Copyright may become injected into the public domain or of any adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any proceeding in any court or tribunal in the United States or any other country) regarding an Obligor’s ownership of any such Copyright or its validity; (C) take all necessary steps as it shall deem appropriate under the circumstances, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each registration of each Material Copyright owned by an Obligor including, without limitation, filing of applications for renewal where necessary; and (D) promptly notify the Administrative Agent of any material infringement of any Material Copyright of an Obligor of which it becomes aware and take such actions as it shall reasonably deem appropriate under the circumstances to protect such Copyright, including, where appropriate, the bringing of suit for infringement, seeking injunctive relief and seeking to recover any and all damages for such infringement; and

 

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(iii)                               Not make any assignment or agreement in conflict with the security interest in the Copyrights of each Obligor hereunder;

 

(k)                                 Covenants Relating to Patents and Trademarks.

 

(i)                                     (A) Continue to use each Material Trademark in full force free from any claim of abandonment for non-use, unless such Material Trademark is abandoned or no longer used in the ordinary course of business, (B) maintain as in the past the quality of products and services offered under such Material Trademark, (C) employ such Material Trademark with the appropriate notice of registration, (D) not adopt or use any mark which is confusingly similar or a colorable imitation of such Material Trademark unless the Administrative Agent, for the ratable benefit of the Lenders, shall obtain a perfected security interest in such mark pursuant to this Security Agreement, and (E) not (and not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any such Material Trademark may become invalidated;

 

(ii)                                  Not do any act, or omit to do any act, whereby any Material Patent may become abandoned or dedicated;

 

(iii)                               Notify the Administrative Agent immediately if it knows, or has reason to know, that any application or registration relating to any Material Patent or Material Trademark may become abandoned or dedicated, or of any adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office or any court or tribunal in any country) regarding an Obligor’s ownership of any such Patent or Trademark or its right to register the same or to keep and maintain the same;

 

(iv)                              Whenever an Obligor, either by itself or through an agent, employee, licensee or designee, shall file an application for the registration of any Patent or Trademark with the United States Patent and Trademark Office or any similar office or agency in any other country or any political subdivision thereof, such Obligor shall report such filing to the Administrative Agent within fifteen Business Days after the last day of the fiscal year in which such filing occurs.  Upon request of the Administrative Agent, an Obligor shall execute and deliver any and all agreements, instruments, documents and papers as the Administrative Agent may request to evidence the Administrative Agent’s and the Lenders’ security interest in any Patent or Trademark and the goodwill and General Intangibles of an Obligor relating thereto or represented thereby;

 

(v)                                 Take all reasonable and necessary steps, including, without limitation, in any proceeding before the United States Patent and Trademark Office, or any similar office or agency in any other country or any political subdivision thereof, to maintain and pursue each application, to obtain the relevant registration and to maintain each registration of all Material Patents and Material Trademarks, unless such Material Patents and Material Trademarks have been abandoned or are no longer used in the ordinary course of business, including, without limitation, filing of applications for renewal, affidavits of use and affidavits of incontestability;

 

(vi)                              Promptly notify the Administrative Agent and the Lenders after it learns that any Material Patent or Material Trademark included in the Collateral is infringed, misappropriated or diluted by a third party and promptly sue for infringement, misappropriation or dilution, to seek injunctive relief where appropriate and to recover any

 

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and all damages for such infringement, misappropriation or dilution, or take such other actions as it shall reasonably deem appropriate under the circumstances to protect such Patent or Trademark; and

 

(vii)                           Not make any assignment or agreement in conflict with the security interest in the Patents or Trademarks of each Obligor hereunder;

 

(l)                                     New Patents, Copyrights and Trademarks.  Promptly provide the Administrative Agent (i) with respect to Material Copyrights, a duly executed Notice of Grant of Security Interest in Copyrights, (ii) with respect to Material Patents, a duly executed Notice of Grant of Security Interest in Patents, (iii) with respect to Material Trademarks, a duly executed Notice of Grant of Security Interest in Trademarks or (iv) such other duly executed documents as the Administrative Agent may reasonably request in a form acceptable to counsel for the Administrative Agent and suitable for recording to evidence the security interest of the Administrative Agent on behalf of the Lenders in the Copyright, Patent or Trademark which is the subject of such new application;

 

(m)                             Commercial Tort Claims; Notice of Litigation.  (i) Promptly forward to the Administrative Agent written notification of any and all Commercial Tort Claims, including, but not limited to, any and all actions, suits, and proceedings before any court or Governmental Authority by or affecting such Obligor or any of its Subsidiaries and (ii) execute and deliver such statements, documents and notices and do and cause to be done all such things as may be reasonably required by the Administrative Agent, or required by law, including all things which may from time to time be necessary under the UCC to fully create, preserve, perfect and protect the priority of the Administrative Agent’s security interest in any Commercial Tort Claims;

 

(n)                                 Insurance.  Insure, repair and replace the Collateral of such Obligor as set forth in Section 5.5 of the Credit Agreement.  All proceeds derived from insurance on the Collateral shall be subject to the security interest of the Administrative Agent hereunder; and

 

(o)                                 Fixtures.  At all times maintain the Collateral existing as of the Closing Date as personal property and not affix any of such Collateral to any real property (except real property that is subject to a Permitted Lien to the extent such Collateral may be encumbered by a Permitted Lien) in a manner which would change its nature from personal property to real property or a Fixture.

 

6.                                      Performance of Obligations; Advances by Administrative Agent.  On failure of any Obligor to perform any of the covenants and agreements contained herein, the Administrative Agent may, at its sole option and in its sole discretion, perform or cause to be performed the same and in so doing may expend such sums as the Administrative Agent may reasonably deem advisable in the performance thereof, including, without limitation, the payment of any insurance premiums, the payment of any taxes, a payment to obtain a release of a Lien or potential Lien (other than a Permitted Lien), expenditures made in defending against any adverse claim (other than a Permitted Lien) and all other expenditures which the Administrative Agent may make for the protection of the security interest hereof or may be compelled to make by operation of law.  All such sums and amounts so expended shall be repayable by the Obligors on a joint and several basis promptly upon timely notice thereof and demand therefor, shall constitute additional Secured Obligations and shall bear interest from the date said amounts are expended at the rate determined in accordance with the terms and conditions of Section 2.9 of the Credit Agreement.  No such performance of any covenant or agreement by the Administrative Agent on behalf of any Obligor, and no such advance or expenditure therefor, shall relieve the Obligors of any default under the terms of this Security Agreement, the other Credit Documents or any Secured Hedging Agreement or Secured Cash Management Agreement.  The Administrative Agent may make any payment hereby authorized in

 

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accordance with any bill, statement or estimate procured from the appropriate public office or holder of the claim to be discharged without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien, title or claim except to the extent such payment is being contested in good faith by an Obligor in appropriate proceedings and against which adequate reserves are being maintained in accordance with GAAP.

 

7.                                      Events of Default.

 

The occurrence of an event, which under the Credit Agreement would constitute an Event of Default, shall be an event of default hereunder (an “Event of Default”).

 

8.                                      Remedies.

 

(a)                                 General Remedies.  Upon the occurrence of an Event of Default and during continuation thereof, the Administrative Agent and the Lenders shall have, in addition to the rights and remedies provided herein, in the Credit Documents, in any Secured Hedging Agreement or Secured Cash Management Agreement or by law (including, but not limited to, levy of attachment, garnishment, and the rights and remedies set forth in the Uniform Commercial Code of the jurisdiction applicable to the affected Collateral), the rights and remedies of a secured party under the UCC (regardless of whether the UCC is the law of the jurisdiction where the rights and remedies are asserted and regardless of whether the UCC applies to the affected Collateral), and further, the Administrative Agent may, with or without judicial process or the aid and assistance of others, to the extent permitted by law, (i) enter on any premises on which any of the Collateral may be located and, without resistance or interference by the Obligors, take possession of the Collateral, (ii) dispose of any Collateral on any such premises, (iii) require the Obligors to assemble and make available to the Administrative Agent at the expense of the Obligors any Collateral at any place and time designated by the Administrative Agent which is reasonably convenient to both parties, (iv) remove any Collateral from any such premises for the purpose of effecting the sale or other disposition thereof, and/or (v) without demand and without advertisement, notice, hearing or process of law, all of which each of the Obligors hereby waives to the fullest extent permitted by law, at any place and time or times, sell and deliver any or all Collateral held by or for it at public or private sale, by one or more contracts, in one or more parcels, for cash, upon credit or otherwise, at such prices and upon such terms as the Administrative Agent deems advisable, in its sole discretion (subject to any and all mandatory legal requirements).  Neither the Administrative Agent’s compliance with any applicable state or federal law in the conduct of such sale, nor its disclaimer of any warranties relating to the Collateral, shall be considered to adversely affect the commercial reasonableness of such sale.  In addition to all other sums due the Administrative Agent and the Lenders with respect to the Secured Obligations, the Obligors shall pay the Administrative Agent and each of the Lenders all reasonable documented costs and expenses incurred by the Administrative Agent or any such Lender, including, but not limited to, reasonable attorneys’ fees and court costs, in obtaining or liquidating the Collateral, in enforcing payment of the Secured Obligations, or in the prosecution or defense of any action or proceeding by or against the Administrative Agent or the Lenders or the Obligors concerning any matter arising out of or connected with this Security Agreement, any Collateral or the Secured Obligations, including, without limitation, any of the foregoing arising in, arising under or related to a case under the Bankruptcy Code.  To the extent the rights of notice cannot be legally waived hereunder, each Obligor agrees that any requirement of reasonable notice shall be met if such notice is personally served on or mailed, postage prepaid, to the applicable Obligor in accordance with the notice provisions of Section 9.2 of the Credit Agreement at least ten (10) days before the time of sale or other event giving rise to the requirement of such notice.  The Administrative Agent and the Lenders shall not be obligated to make any sale or other disposition of the Collateral regardless of notice having been given.  To the extent permitted by law, any Lender may be a

 

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purchaser at any such sale.  To the extent permitted by applicable law, each of the Obligors hereby waives all of its rights of redemption with respect to any such sale.  Subject to the provisions of applicable law, the Administrative Agent and the Lenders may postpone or cause the postponement of the sale of all or any portion of the Collateral by announcement at the time and place of such sale, and such sale may, without further notice, to the extent permitted by law, be made at the time and place to which the sale was postponed, or the Administrative Agent and the Lenders may further postpone such sale by announcement made at such time and place.

 

(b)                                 Remedies Relating to Accounts.  Upon the occurrence of an Event of Default and during the continuation thereof, whether or not the Administrative Agent has exercised any or all of its rights and remedies hereunder, each Obligor will promptly upon request of the Administrative Agent instruct all account debtors to remit all payments in respect of Accounts to a mailing location selected by the Administrative Agent.  In addition, upon the occurrence of an Event of Default and during the continuation thereof, the Administrative Agent or its designee may notify any Obligor’s customers and account debtors that the Accounts of such Obligor have been assigned to the Administrative Agent or of the Administrative Agent’s security interest therein, and may (either in its own name or in the name of an Obligor or both) demand, collect (including, without limitation, by way of a lockbox arrangement), receive, take receipt for, sell, sue for, compound, settle, compromise and give acquittance for any and all amounts due or to become due on any Account, and, in the Administrative Agent’s discretion, file any claim or take any other action or proceeding to protect and realize upon the security interest of the Administrative Agent in the Accounts.  Each Obligor acknowledges and agrees that the Proceeds of its Accounts remitted to or on behalf of the Administrative Agent for the benefit of the Lenders in accordance with the provisions hereof shall be applied to the Secured Obligations in the order set forth in Section 2.12(b) of the Credit Agreement and that such Obligor shall not have any right, title or interest in such Proceeds or in any such other amounts except as expressly provided herein.  The Administrative Agent and the Lenders shall have no liability or responsibility to any Obligor for acceptance of a check, draft or other order for payment of money bearing the legend “payment in full” or words of similar import or any other restrictive legend or endorsement or be responsible for determining the correctness of any remittance.  Each Obligor hereby agrees to indemnify the Administrative Agent and the Lenders and their respective officers, directors, employees, partners, members, counsel, agents, representatives, advisors and affiliates from and against all liabilities, damages, losses, actions, claims, judgments, costs, expenses, charges and reasonable attorneys’ fees suffered or incurred by the Administrative Agent or the Lenders (each, an “Indemnified Party”) because of the maintenance of the foregoing arrangements except as relating to or arising out of the gross negligence or willful misconduct of an Indemnified Party or its officers, employees or agents, in which case such Indemnified Party shall not be entitled to the indemnification provisions hereunder.  In the case of any investigation, litigation or other proceeding, the foregoing indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by an Obligor, its directors, shareholders or creditors or an Indemnified Party or any other Person or any other Indemnified Party is otherwise a party thereto.

 

(c)                                  Access.  In addition to the rights and remedies hereunder, upon the occurrence of an Event of Default and during the continuation thereof, the Administrative Agent shall have the right to enter and remain upon the various premises of the Obligors without cost or charge to the Administrative Agent, and use the same, together with materials, supplies, books and records of the Obligors for the purpose of collecting and liquidating the Collateral, or for preparing for sale and conducting the sale of the Collateral, whether by foreclosure, auction or otherwise.  In addition, the Administrative Agent may remove Collateral, or any part thereof, from such premises and/or any records with respect thereto, in order to effectively collect or liquidate such Collateral.  If the Administrative Agent exercises its right to take possession of the Collateral, each Obligor shall

 

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also at its expense perform any and all other steps reasonably requested by the Administrative Agent to preserve and protect the security interest hereby granted in the Collateral, such as placing and maintaining signs indicating the security interest of the Administrative Agent, appointing overseers for the Collateral and maintaining inventory records.

 

(d)                                 Nonexclusive Nature of Remedies.  Failure by the Administrative Agent or the Lenders to exercise any right, remedy or option under this Security Agreement, any other Credit Document, any Secured Hedging Agreement or Secured Cash Management Agreement or as provided by law, or any delay by the Administrative Agent or the Lenders in exercising the same, shall not operate as a waiver of any such right, remedy or option.  No waiver hereunder shall be effective unless it is in writing, signed by the party against whom such waiver is sought to be enforced and then only to the extent specifically stated, which in the case of the Administrative Agent or the Lenders shall only be granted as provided herein.  To the extent permitted by law, neither the Administrative Agent, the Lenders, nor any party acting as attorney for the Administrative Agent or the Lenders, shall be liable hereunder for any acts or omissions or for any error of judgment or mistake of fact or law other than their gross negligence or willful misconduct hereunder.  The rights and remedies of the Administrative Agents and the Lenders under this Security Agreement shall be cumulative and not exclusive of any other right or remedy which the Administrative Agent or the Lenders may have.

 

(e)                                  Retention of Collateral.  In addition to the rights and remedies hereunder, upon the occurrence of any Event of Default and during the continuation thereof, the Administrative Agent may retain all or a portion of the Collateral in satisfaction of the Secured Obligations but only after providing the notices required by Sections 9-620 and 9-621 (or similar provision) of the UCC (or any successor sections of the UCC) and otherwise complying with the requirements of applicable law of the relevant jurisdiction.  Unless and until the Administrative Agent shall have provided such notices and complied with all applicable legal requirements, however, the Administrative Agent shall not be deemed to have retained any Collateral in satisfaction of any Secured Obligations for any reason.

 

(f)                                   Deficiency.  In the event that the proceeds of any sale, collection or realization are insufficient to pay all amounts to which the Administrative Agent or the Lenders are legally entitled, the Obligors shall be jointly and severally liable for the deficiency, together with interest thereon at the rate determined in accordance with the terms and conditions of Section 2.9 of the Credit Agreement, together with the costs of collection and the reasonable fees of any attorneys employed by the Administrative Agent to collect such deficiency.  Any surplus remaining after the full payment and satisfaction of the Secured Obligations shall be returned to the Obligors or to whomsoever a court of competent jurisdiction shall determine to be entitled thereto.

 

(g)                                  Other Security.  To the extent that any of the Secured Obligations are now or hereafter secured by property other than the Collateral (including, without limitation, securities owned by an Obligor), or by a guarantee, endorsement or property of any other Person, then the Administrative Agent and the Lenders shall have the right to proceed against such other property, guarantee or endorsement upon the occurrence of any Event of Default, and the Administrative Agent and the Lenders shall have the right, in their sole discretion, to determine which rights, security, liens, security interests or remedies the Administrative Agent and the Lenders shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in any way modifying or affecting any of them or any of the Administrative Agent’s and the Lenders’ rights or the Secured Obligations under this Security Agreement, under any other of the Credit Documents or under any Secured Hedging Agreement or Secured Cash Management Agreement.

 

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9.                                      Rights of the Administrative Agent.

 

(a)                                 Power of Attorney.  In addition to other powers of attorney contained herein, each Obligor hereby designates and appoints the Administrative Agent, on behalf of the Lenders, and each of its designees or agents, as attorney-in-fact of such Obligor, irrevocably and with power of substitution, with authority to take any or all of the following actions upon the occurrence and during the continuation of an Event of Default:

 

(i)                                     to demand, collect, settle, compromise, adjust, give discharges and releases, all as the Administrative Agent may reasonably determine;

 

(ii)                                  to commence and prosecute any actions at any court for the purposes of collecting any Collateral and enforcing any other right in respect thereof;

 

(iii)                               to defend, settle, adjust or compromise any action, suit or proceeding brought and, in connection therewith, give such discharge or release as the Administrative Agent may deem reasonably appropriate;

 

(iv)                              to receive, open and dispose of mail addressed to an Obligor and endorse checks, notes, drafts, acceptances, money orders, bills of lading, warehouse receipts or other instruments or documents evidencing payment, shipment or storage of the goods giving rise to the Collateral of such Obligor, or securing or relating to such Collateral, on behalf of and in the name of such Obligor;

 

(v)                                 to sell, assign, transfer, endorse, make any agreement in respect of, or otherwise deal with or exercise rights in respect of, any Collateral or the goods or services which have given rise thereto, as fully and completely as though the Administrative Agent were the absolute owner thereof for all purposes;

 

(vi)                              to adjust and settle claims under any insurance policy relating thereto;

 

(vii)                           to execute and deliver and/or file all assignments, conveyances, statements, financing statements, continuation statements, security agreements, affidavits, notices and other agreements, instruments and documents that the Administrative Agent may determine necessary in order to perfect and maintain the security interests and liens granted in this Security Agreement and in order to fully consummate all of the transactions contemplated herein;

 

(viii)                        to institute any foreclosure proceedings that the Administrative Agent may deem appropriate; and

 

(ix)                              to do and perform all such other acts and things as the Administrative Agent may reasonably deem to be necessary or appropriate in connection with the Collateral.

 

This power of attorney is a power coupled with an interest and shall be irrevocable for so long as any of the Secured Obligations remain outstanding (other than contingent indemnity obligations which by the terms thereof are stated to survive termination of the Credit Documents), any Credit Document, any Secured Hedging Agreement or any Secured Cash Management Agreement is in effect, and until all of the Commitments shall have been terminated.  The Administrative Agent shall be under no duty to exercise or withhold the exercise of any of the rights, powers, privileges and

 

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options expressly or implicitly granted to the Administrative Agent in this Security Agreement, and shall not be liable for any failure to do so or any delay in doing so.  The Administrative Agent shall not be liable for any act or omission or for any error of judgment or any mistake of fact or law in its individual capacity or its capacity as attorney-in-fact except acts or omissions resulting from its gross negligence or willful misconduct.  This power of attorney is conferred on the Administrative Agent solely to perfect, protect, preserve and realize upon its security interest in the Collateral.

 

(b)                                 Assignment by the Administrative Agent.  The Administrative Agent may from time to time assign its rights and obligations hereunder as permitted under the Credit Agreement and any portion thereof and/or the Collateral and any portion thereof, and the assignee shall be entitled to all of the rights and remedies of the Administrative Agent under this Security Agreement in relation thereto.

 

(c)                                  The Administrative Agent’s Duty of Care.  Other than the exercise of reasonable care to assure the safe custody of the Collateral while being held by the Administrative Agent hereunder, the Administrative Agent shall have no duty or liability to preserve rights pertaining thereto, it being understood and agreed that the Obligors shall be responsible for preservation of all rights in the Collateral, and the Administrative Agent shall be relieved of all responsibility for the Collateral upon surrendering it or tendering the surrender of it to the Obligors.  The Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Administrative Agent accords its own property, which shall be no less than the treatment employed by a reasonable and prudent agent in the industry, it being understood that the Administrative Agent shall not have responsibility for taking any necessary steps to preserve rights against any parties with respect to any of the Collateral.  In the event of a public or private sale of Collateral pursuant to Section 8 hereof, the Administrative Agent shall have no obligation to clean-up, repair or otherwise prepare the Collateral for sale.

 

10.                               Application of Proceeds.  Upon the occurrence and during the continuation of an Event of Default, any payments in respect of the Secured Obligations and any proceeds of the Collateral, when received by the Administrative Agent or any of the Lenders in cash or its equivalent, will be applied in reduction of the Secured Obligations in the order set forth in Section 2.12(b) of the Credit Agreement, and each Obligor irrevocably waives the right to direct the application of such payments and proceeds and acknowledges and agrees that the Administrative Agent shall have the continuing and exclusive right to apply and reapply any and all such payments and proceeds in the order set forth in Section 2.12(b) of the Credit Agreement, notwithstanding any entry to the contrary upon any of its books and records.

 

11.                               Costs of Counsel.  If at any time hereafter, whether upon the occurrence of an Event of Default or not, the Administrative Agent employs counsel to prepare or consider amendments, waivers or consents with respect to this Security Agreement, or to take action or make a response in or with respect to any legal or arbitral proceeding relating to this Security Agreement or relating to the Collateral, or to protect the Collateral or exercise any rights or remedies under this Security Agreement or with respect to the Collateral, then the Obligors agree to promptly pay upon demand any and all such reasonable documented costs and expenses of the Administrative Agent (subject to Section 9.5 of the Credit Agreement), all of which costs and expenses shall constitute Secured Obligations hereunder.

 

12.                               Continuing Agreement.

 

(a)                                 This Security Agreement shall be a continuing agreement in every respect and shall remain in full force and effect so long as any of the Secured Obligations remain outstanding (other than contingent indemnity obligations which by the terms thereof are stated to survive termination of

 

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the Credit Documents) or any Credit Document or any Secured Hedging Agreement or any Secured Cash Management Agreement is in effect, and until all of the Commitments thereunder shall have terminated.  Upon such payment and termination, this Security Agreement shall be automatically terminated without delivery of any instrument or performance of any act by any Person and the Administrative Agent and the Lenders shall, upon the request and at the expense of the Obligors, forthwith release all liens and security interests granted hereunder and shall execute and deliver all UCC termination statements and/or other documents reasonably requested by the Obligors evidencing such termination.  Notwithstanding the foregoing all releases and indemnities provided hereunder shall survive termination of this Security Agreement.

 

(b)                                 This Security Agreement shall continue to be effective or be automatically reinstated, as the case may be, if at any time payment, in whole or in part, of any of the Secured Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any Lender as a preference, fraudulent conveyance or otherwise under any bankruptcy, insolvency or similar law, all as though such payment had not been made; provided that in the event that payment of all or any part of the Secured Obligations is rescinded or must be restored or returned, all reasonable costs and expenses (including without limitation any reasonable legal fees and disbursements) incurred by the Administrative Agent or any Lender in defending and enforcing such reinstatement shall be deemed to be included as a part of the Secured Obligations.

 

13.                               Amendments; Waivers; Modifications.  This Security Agreement and the provisions hereof may not be amended, waived, modified, changed, discharged or terminated except as set forth in Section 9.1 of the Credit Agreement.

 

14.                               Successors in Interest.  This Security Agreement shall create a continuing security interest in the Collateral and shall be binding upon each Obligor, its successors and assigns and shall inure, together with the rights and remedies of the Administrative Agent and the Lenders hereunder, to the benefit of the Administrative Agent and the Lenders and their successors and permitted assigns; provided, however, that none of the Obligors may assign its rights or delegate its duties hereunder without the prior written consent of each Lender or the Required Lenders, as required by the Credit Agreement.  To the fullest extent permitted by law, each Obligor hereby releases the Administrative Agent and each Lender, each of their respective officers, employees and agents, and each of their respective successors and assigns, from any liability for any act or omission relating to this Security Agreement or the Collateral, except for any liability arising from the gross negligence or willful misconduct of such Person.

 

15.                               Notices.  All notices required or permitted to be given under this Security Agreement shall be in conformance with Section 9.2 of the Credit Agreement.

 

16.                               Counterparts.  This Security Agreement may be executed in any number of counterparts, each of which where so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  It shall not be necessary in making proof of this Security Agreement to produce or account for more than one such counterpart.  Delivery of executed counterparts of the Security Agreement by telecopy shall be effective as an original and shall constitute a representation that an original shall be delivered upon the request of the Administrative Agent.

 

17.                               Headings.  The headings of the sections and subsections hereof are provided for convenience only and shall not in any way affect the meaning, construction or interpretation of any provision of this Security Agreement.

 

18.                               Governing Law; Submission to Jurisdiction; Waiver of Jury Trial; Venue. THIS SECURITY AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES

 

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HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.  The terms of Sections 9.14 and 9.17 of the Credit Agreement are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms.

 

19.                               Severability.  If any provision of this Security Agreement is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions.

 

20.                               Entirety.  This Security Agreement, the other Credit Documents, the Secured Hedging Agreements and the Secured Cash Management Agreements represent the entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to this Security Agreement, the other Credit Documents, the Secured Hedging Agreements, the Secured Cash Management Agreement or the transactions contemplated herein and therein.

 

21.                               Survival.  All representations and warranties of the Obligors hereunder shall survive the execution and delivery of this Security Agreement, the other Credit Documents, the Secured Hedging Agreements and the Secured Cash Management Agreements, the delivery of the Notes and the making of the Loans and the issuance of the Letters of Credit under the Credit Agreement.

 

22.                               Joint and Several Obligations of Obligors.

 

(a)                                 Each of the Obligors is accepting joint and several liability hereunder in consideration of the financial accommodations to be provided by the Lenders under the Credit Agreement, for the mutual benefit, directly and indirectly, of each of the Obligors and in consideration of the undertakings of each of the Obligors to accept joint and several liability for the obligations of each of them.

 

(b)                                 Each of the Obligors jointly and severally hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Obligors with respect to the payment and performance of all of the Secured Obligations arising under this Security Agreement, the other Credit Documents, the Secured Hedging Agreements and the Secured Cash Management Agreement, it being the intention of the parties hereto that all the Secured Obligations shall be the joint and several obligations of each of the Obligors without preferences or distinction among them.

 

(c)                                  Notwithstanding any provision to the contrary contained herein or in any other of the Credit Documents, to the extent the obligations of an Obligor shall be adjudicated to be invalid or unenforceable for any reason (including, without limitation, because of any applicable state or federal law relating to fraudulent conveyances or transfers) then the obligations of such Obligor hereunder shall be limited to the maximum amount that is permissible under applicable law (whether federal or state and including, without limitation, the Bankruptcy Code).

 

23.                               Acknowledgement Regarding Any Supported QFCs. The provisions and acknowledgements contained in Section 9.23 of the Credit Agreement are hereby incorporated into this Security Agreement, mutatis mutandis.

 

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24.                               Amendment and Restatement.  This Security Agreement amends, restates, supersedes, and replaces in its entirety the Existing Security Agreement.  The guarantee made by the Obligors under the Existing Security Agreement and security interests granted by each Obligor to the Administrative Agent in the “Collateral” as defined in the Existing Security Agreement, in each case, continues without interruption under this Security Agreement and such guarantee, security interests and assignments are hereby ratified and confirmed in all respects.  Nothing contained herein shall be construed as a novation of the obligations outstanding under the Existing Security Agreement, which shall remain in full force and effect, except as modified hereby.  Nothing express or implied in this Security Agreement shall be construed as a release, discharge of any Obligor under the Existing Security Agreement.

 

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Execution Version

 

Each of the parties hereto has caused a counterpart of this Security Agreement to be duly executed and delivered as of the date first above written.

 

 

	
OBLIGORS:
    	
RED ROBIN   INTERNATIONAL, INC.,
    
	
 
    	
a Nevada corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lynn Schweinfurth
    
	
 
    	
Name:
    	
Lynn Schweinfurth
    
	
 
    	
Title:
    	
President and Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RED   ROBIN GOURMET BURGERS, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lynn Schweinfurth
    
	
 
    	
Name:
    	
Lynn Schweinfurth
    
	
 
    	
Title:
    	
Executive Vice   President and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
RED ROBIN   WEST, INC.,
    
	
 
    	
a Nevada corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kristi Belhumer
    
	
 
    	
Name:
    	
Kristi Belhumer
    
	
 
    	
Title:
    	
President, Treasurer,   Chief Executive Officer and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WESTERN FRANCHISE   DEVELOPMENT, INC.,
    
	
 
    	
a California   corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kristi Belhumer
    
	
 
    	
Name:
    	
Kristi Belhumer
    
	
 
    	
Title:
    	
President and Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NORTHWEST ROBINS,   L.L.C.,
    
	
 
    	
a Washington limited   liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
RED ROBIN   INTERNATIONAL, INC.,
    
	
 
    	
 
    	
Sole Member and Manager   of Northwest Robins, L.L.C.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Lynn Schweinfurth
    
	
 
    	
 
    	
Name:
    	
Lynn Schweinfurth
    
	
 
    	
 
    	
Title:
    	
President and Treasurer
    

 

 

	
OBLIGORS (CONT.):
    	
RED ROBIN EXPRESS, LLC,
    
	
 
    	
a Colorado limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kristi Belhumer
    
	
 
    	
Name:
    	
Kristi Belhumer
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
RED ROBIN NORTH   HOLDINGS, INC.,
    
	
 
    	
a Nevada corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kristi Belhumer
    
	
 
    	
Name:
    	
Kristi Belhumer
    
	
 
    	
Title:
    	
President and Treasurer
    

 

 

	
ADMINISTRATIVE AGENT:
    	
WELLS FARGO BANK,   NATIONAL ASSOCIATION,
    
	
 
    	
as Administrative Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Maureen Malphus
    
	
 
    	
Name: Maureen Malphus
    
	
 
    	
Title: Vice PresidentEX-10.1

 Exhibit 10.1 

EXECUTION VERSION 

ASSET PURCHASE 

AGREEMENT 
 FOR THE AKLAQ
AND KUUKPIK SURVEYS 
 BY AND AMONG 

SAEXPLORATION, INC., 

ALASKAN SEISMIC VENTURES, LLC 

AND 
 TGS-NOPEC GEOPHYSICAL COMPANY ASA 
 January 9, 2020 

 ASSET PURCHASE AGREEMENT 

This ASSET PURCHASE AGREEMENT FOR THE AKLAQ AND KUUKPIK SURVEYS, dated as of January 9, 2020, is by and among SAExploration, Inc., a
Delaware corporation with its address at 1160 Dairy Ashford Road, Suite 160, Houston, Texas 77079 (“SAE”), ALASKAN Seismic Ventures, LLC, an Alaskan limited liability company with its address at P. O. Box 876489, Wasilla, Alaska
99687 (“ASV” and together with SAE, each, a “Seller” and collectively, the “Sellers”), and TGS-NOPEC Geophysical Company ASA, a public limited company
registered in Norway with its address at 4 Lensmannslia, N-1386, Asker, Norway (“Purchaser”). 

RECITALS: 
 WHEREAS,
Sellers collectively own the Acquired Assets (as hereinafter defined); and 
 WHEREAS, Sellers desire to sell to Purchaser, and Purchaser
desires to acquire from Sellers, the Acquired Assets in exchange for the Purchase Price (as hereinafter defined), subject to the terms and conditions set forth in this Agreement; and 

WHEREAS, Sellers desire to grant to Purchaser, and Purchaser desires to obtain from Sellers, a right of first refusal, exercisable during the
period from and after the date hereof until the date that is four years following the date hereof, to purchase from ASV or SAE, as applicable, (the “ROFR”) the surveys listed on Schedule A (together with all rights and
benefits associated with such surveys, including any Permits (as hereinafter defined) related thereto, and any rights pursuant to contractual arrangements associated with any prefunding thereof, including all rights to funds received or receivable
thereunder, the “ROFR Assets”); and 
 WHEREAS, substantially simultaneously with the execution and delivery of this
Agreement, SAE and Purchaser have executed and delivered the Asset Purchase Agreement for the CRD Surveys (the “CRD Purchase Agreement”). 

NOW, THEREFORE, in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties,
and covenants herein contained, the Parties agree as follows: 
  

	1.	 INTERPRETATION 

 

	1.1	 DEFINITIONS 

In addition to the terms defined throughout this Agreement, the following terms have the respective meanings set forth below: 

 

	(a)	 “Affiliate” means any Person which controls or is controlled by a Party, or which controls or
is controlled by a Person which controls such Party; and “control” means the power to direct or cause the direction of the management and policies of the other Person, whether directly or indirectly, through one or more intermediaries or
otherwise, and whether by virtue of the ownership of shares or other equity interests, the holding of voting rights or contractual rights, or partnership interests or otherwise. 

  
 2 

	(b)	 “Agreement” means the agreement comprised by this document, all attached schedules, and all
written amendments signed by all Parties. 

  

	(c)	 “Acquired Agreements” means the agreements listed on Exhibit B. 

 

	(d)	 “Acquired Assets” means (i) 100% of all right, title, and interest, whether absolute or
contingent, legal or beneficial, currently held or hereafter acquired by any Seller or its Affiliates in the Data, (ii) all physical and electronic media comprising, storing or displaying the Data, including all Intellectual Property rights
thereto and all processed and reprocessed data thereof, and all related support documentation (including open file, stack sections, field gathering tapes, surveying data, survey’s notes, driller’s notes, observer’s notes, processing
reports, OB logs, survey data, parameter specs or testing information, surface use, mineral permits, and other pertinent support information related to the Data as appropriate or necessary for the marketing and reprocessing of the Data following the
Closing), (iii) any Seller’s rights and benefits under the Acquired Agreements arising after the Closing Time, including (subject to the Earn Out) its share of all revenues earned after the Closing Time, (iv) all rights and benefits
associated with the Data, including any Permits related thereto, and (v) any Seller’s rights to acquire the Kuukpik 3D Phase II survey, all rights and benefits associated with such rights, including any Permits related thereto, and any
rights pursuant to contractual arrangements associated with any prefunding thereof, including all rights to funds received or receivable thereunder; provided, however, that the Acquired Assets shall not include any Alaska tax credit applications,
tax credit revenues or tax credit certificates covering any of the Data. 

  

	(e)	 “Acquired Liabilities” means the Liabilities under the Acquired Agreements, Permits,
authorizations or approvals included in the Acquired Assets solely to the extent such Liabilities (i) first arise after the Closing Time and do not otherwise relate to events, actions, conditions or circumstances first occurring on or before
the Closing Time, (ii) relate solely to performance thereunder after the Closing Time, (iii) do not arise from or relate to any breach of the terms thereof by a Seller on or before the Closing Time or from any occurrence or circumstance
giving rise to a claim against either Seller or any Affiliate of a Seller under any indemnity thereunder on or before the Closing Time, (iv) do not arise from any violation of Applicable Law by a Seller on or before the Closing Time and
(v) do not arise from or relate to any breach by a Seller of any representation or warranty in Section 3.1 of this Agreement. 

  

	(f)	 “Applicable Law” means all statutes, laws, regulations, rules, orders, judgments, guidelines,
policies and directives of a Governmental Authority in effect from time to time having jurisdiction over the Parties or the transactions contemplated herein. 

  

	(g)	 “Bill of Sale, Assignment, and Assumption Agreement” has the meaning ascribed to such term in
Section 2.2. 

  

	(h)	 “Business Day” means any day excepting a Saturday, Sunday or any other day on which commercial
banks located in Houston, Texas are authorized or required by Applicable Law to be closed for business. 

  
 3 

	(i)	 “Closing” means the completion of the purchase and sale of Acquired Assets and related matters
contemplated by this Agreement, at the Closing Time, in the manner provided for in this Agreement. 

  

	(j)	 “Closing Date” means the date of this Agreement. 

 

	(k)	 “Closing Time” means 10:00 am, Central Time, on the Closing Date. 

 

	(l)	 “Confidential Information” has the meaning ascribed to such term in
Section 4.4. 

  

	(m)	 “Consents” means all consents, approvals and permissions required from, filing with or notices
to, any Person which is required in connection with the execution, delivery or performance of this Agreement or any other Transaction Document contemplated herein, the consummation of the transactions contemplated hereby or thereby, including those
necessary in order to transfer and sell the Acquired Assets or any contracts, contractual rights, Intellectual Property rights or obligations under the Acquired Assets pursuant to this Agreement, or any of the foregoing which is required in order to
prevent a breach of or a default under, or a termination or modification of any Acquired Agreement, which right of breach, default, termination or modification results from the consummation of the transactions contemplated by this Agreement or any
other Transaction Document contemplated herein. 

  

	(n)	 “Data” means the seismic data surveys located in the State of Alaska as more particularly
described on Exhibit A, together with the geophysical, geological and well log data resulting from such seismic data surveys and well log services related thereto or derived therefrom, including all customary accompanying data that is needed
to derive value from the foregoing. 

  

	(o)	 “Earn Out” has the meaning ascribed to such term in
Section 2.3(b)(vi). 

  

	(p)	 “Earn Out Accelerated Payment” has the meaning ascribed to such term in
Section 2.3(b)(iv). 

  

	(q)	 “Excluded Assets” means any assets of any kind other than the Acquired Assets.

  

	(r)	 “Excluded Liabilities” means any liabilities or obligations of any kind other than the
Acquired Liabilities and includes the following: (i) any Liability of any of the Sellers for taxes (including any Liability for Transfer Taxes and ad valorem and property taxes, and any Liability for taxes on Excluded Assets); (ii) any debt of
any Seller or their respective Affiliates; (iii) any Liability arising out of the Excluded Assets; (iv) any Liability arising out of any Proceeding pending or threatened against or affecting any Seller or, to the extent arising out of
Sellers’ ownership or operation of the Acquired Assets on or prior to the Closing Time, the Acquired Assets; (v) any Liability arising out of, as the result of, relating to, or caused by outstanding Alaska tax credit applications, tax
credit revenues or tax credit certificates covering the Aklaq survey, and (vi) any other Liability arising, or relating to acts, omission or events occurring, on or prior to the Closing Time under or in connection with or related to the
Acquired Assets or the Sellers. 

  
 4 

	(s)	 “Fundamental Representations” means the representations included in Sections 3.1(a),
(b), (c), (d), (f)(i), (f)(ii), (f)(iv) and (f)(v) of this Agreement. 

  

	(t)	 “Funds Flow Memorandum” has the meaning ascribed to such term in
Section 2.3. 

  

	(u)	 “Governmental Authority” means any government, governmental department, commission, board,
bureau, agency, court or other instrumentality, whether foreign or domestic, of any country, nation, republic, federation or similar entity or any state, province, county, borough, parish or municipality, jurisdiction or other political subdivision
thereof. 

  

	(v)	 “Intellectual Property” means all of the following in any jurisdiction throughout the world:
(a) all inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and all patents, patent applications, and patent disclosures, together with all reissuances, continuations, continuations-in-part, revisions, extensions, and reexaminations thereof, (b) all trademarks, service marks, trade dress, logos, slogans, trade names, corporate names,
Internet domain names and rights in telephone numbers, together with all translations, adaptations, derivations, and combinations thereof and including all goodwill associated therewith, and all applications, registrations, and renewals in
connection therewith, (c) all copyrightable works, all copyrights, and all applications, registrations, and renewals in connection therewith, (d) all mask works and all applications, registrations, and renewals in connection therewith,
(e) all trade secrets and confidential business information (including ideas, research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical
data, designs, drawings and specifications), and (f) all copies and tangible embodiments thereof (in whatever form or medium). 

  

	(w)	 “Knowledge” means, with respect to a Seller, those facts that are actually known, or should
have been reasonably known, by any of the officers, directors, or managers of the applicable Seller, after reasonable inquiry. 

  

	(x)	 “Liability” means any debt, obligation, commitment, duty or liability of any nature (whether
known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due), including any liability for taxes. 

 

	(y)	 “Licensing Fees” has the meaning ascribed to such term in
Section 2.3(b). 

  

	(z)	 “Lien” means any title defect, lien, mortgage, pledge, charge, transfer restriction, right of
first refusal, preemptive right, option, claim, security interest, right of others or other encumbrance of any nature whatsoever. 

  

	(aa)	 “Losses” has the meaning ascribed to such term in Section 5.2.

  

	(bb)	 “MSA Supplement” has the meaning ascribed to such term in
Section 6.2(e). 

  

	(cc)	 “Parties” or “Party” means Purchaser and Sellers, collectively referred to as
the Parties and any party individually referred to as Party. 

  
 5 

	(dd)	 “Permits” means any permits, licenses, approval, consents, certificates, concessions or other
authorization issued, granted, given or otherwise made available by or under the authority of any Governmental Authority or pursuant to any Applicable Laws. 

  

	(ee)	 “Permitted Assignees” has the meaning ascribed to such term in
Section 7.4. 

  

	(ff)	 “Person” means any individual, body corporate, partnership, limited liability company, trust,
trustee, executor, administrator, legal representative, any unincorporated organization and any other entity or organization of any kind, including any Governmental Authority. 

 

	(gg)	 “Proceeding” shall mean any claim, action, suit, investigation, demand, notice, litigation,
proceeding at law or in equity (including any civil, criminal, administrative, investigative or appellate proceeding), arbitration, audit, examination, hearing or other proceeding threatened, commenced, brought, conducted or heard by or before any
Governmental Authority or any arbitrator or any other Person. 

  

	(hh)	 “Purchase Price” has the meaning ascribed to such term in
Section 2.3. 

  

	(ii)	 “Purchaser Indemnified Parties” has the meaning ascribed to such term in
Section 5.2. 

  

	(jj)	 “Seller Indemnified Parties” has the meaning ascribed to such term in
Section 5.3. 

  

	(kk)	 “Third Party” means any Person other than the Parties to this Agreement or their respective
Affiliates. 

  

	(ll)	 “Threshold” has the meaning ascribed to such term in Section 2.3(b).

  

	(mm)	 “Transaction Documents” means this Agreement, the Bill of Sale, Assignment and Assumption
Agreement, the MSA Supplement, the Funds Flow Memorandum and any other agreements, instruments or documents delivered pursuant hereto or thereto. 

  

	(nn)	 “Transfer Taxes” has the meaning ascribed to such term in
Section 4.3. 

  

	1.2	 HEADINGS 

The headings to articles, sections and subsections to this Agreement are for ease of reference only, but are not deemed to form part of the Agreement and must
not be used to interpret any part of this Agreement. 
  

	1.3	 DRAFTING 

The Parties acknowledge that their respective legal counsel have each reviewed and participated in the drafting of this Agreement, and as a result, any rule of
contractual interpretation to the effect that any ambiguity is to be resolved against the drafting Party does not apply to the interpretation of this Agreement. 

  
 6 

	1.4	 REFERENCES 

 

	(a)	 A reference to “this Agreement” is a reference to the entire agreement and not only one particular
article or section, a reference to an “article” is a reference to the contents of only that article of this Agreement, and a reference to “section” is a reference to the contents of only that section. Words such as
“herein,” “hereinafter,” “hereof,” and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires. 

 

	(b)	 A reference to “will” or “shall” means that the Party must perform the matter so described;
a reference to “may” means that the Party has the option, but not the obligation, to perform the matter so described. 

  

	(c)	 Where the context requires, a reference to one gender means the other or neuter gender, and a reference to a
single number means the plural, and vice-versa. 

  

	(d)	 The word “including” or any variation thereof means “including, without limitation” and
shall not be construed to limit any general statement that it follows to the specific or similar items or matters immediately following it. 

  

	1.5	 BUSINESS DAYS 

If the last day on which any action required or permitted to be taken hereunder by any of the Parties hereto is not a Business Day, such action may be taken on
the next succeeding day which is a Business Day. 
  

	2.	 ASSET SALE AND PAYMENT 

 

	2.1	 PURCHASE AND SALE OF ASSETS

 On and subject to the terms and conditions of this Agreement, Purchaser agrees to purchase from the Sellers, and the Sellers agree
to sell, transfer, convey, and deliver to Purchaser, all of the Sellers’ rights, title and interests in and to the Acquired Assets at the Closing for the consideration specified below in this Article 2, in each case,
other than the Excluded Assets and free and clear of all Liens. Title to the Acquired Assets shall pass to Purchaser at the Closing Time. Notwithstanding anything to the contrary contained in this Section 2.1 or elsewhere in this
Agreement, the Excluded Assets of Sellers are not part of the sale and purchase contemplated hereunder, are excluded from the Acquired Assets and shall remain the property of the applicable Seller after the Closing Time. 

 

	2.2	 ACQUIRED LIABILITIES; EXCLUDED LIABILITIES

 The Sellers shall assign, and Purchaser shall assume, effective as of the Closing Time, only the Acquired Liabilities. To
further evidence the purchase and sale of the Acquired Assets and the assumption of the Acquired Liabilities as set forth in this Section 2.2, the Parties will execute and deliver at the Closing Time a Bill of Sale,
Assignment and Assumption Agreement in the form attached hereto as Exhibit C (the “Bill of Sale, Assignment and Assumption Agreement”). Notwithstanding anything to the contrary contained herein, except
for the Acquired Liabilities, it 

  
 7 

 
is expressly understood and agreed that Purchaser shall not assume, be obligated to pay, perform or discharge, and the applicable Seller shall retain, pay, perform and discharge in due course,
any claim or proceeding against, or Liabilities, contracts or any other obligations whatsoever of the Sellers. In no event shall Purchaser assume, be obligated to pay, perform or discharge any Excluded Liabilities. 

 

	2.3	 PURCHASE PRICE AND EARN OUT

  

	(a)	 Purchase Price. Subject to the terms and conditions of this Agreement, and as full consideration
(together with the Earn Out) for the sale and transfer of the Acquired Assets to Purchaser by Sellers, the assignment and assumption of the Acquired Liabilities by Purchaser from Sellers, the representations, warranties, covenants and agreements
contemplated herein, as well as the ROFR set forth in Section 2.4 below, Purchaser agrees to pay or cause to be paid to SAE, on behalf of both Sellers (and both Sellers acknowledge and agree that all payments to be made by
Purchaser under this Section 2.3 shall be made by Purchaser to SAE on behalf of both Sellers) an aggregate amount equal to (i) FOURTEEN MILLION FIVE HUNDRED THOUSAND US DOLLARS ($14,500,000), minus
(ii) ZERO US DOLLARS ($0.00), which the Parties acknowledge and agree represents the amount of any licensing fees with respect to the licensing of the Data granted by Sellers after October 17, 2019 (the resulting difference, the
“Purchase Price”), which Purchaser shall pay to SAE by wire transfer of immediately available funds to the account(s) designated in writing by SAE, in accordance with that certain Funds Flow Memorandum, dated as of the Closing Date,
by and among the Parties (the “Funds Flow Memorandum”). The Parties acknowledge and agree that delivery of the Purchase Price by Purchaser in accordance with the Funds Flow Memorandum shall be deemed to satisfy Purchaser’s
obligation to deliver the Purchase Price to the Sellers hereunder and Purchaser shall have no liability to the Sellers in regard to the allocation of the Purchase Price between the Sellers and Sellers shall be solely responsible for determining the
portion of the Purchase Price that any such Seller is entitled to receive pursuant to this Agreement. 

  

	(b)	 Earn Out. 

  

	 	(i)	 In addition to payment of the Purchase Price and as partial consideration for the sale and transfer of the
Acquired Assets to Purchaser by Sellers, the assignment and assumption of the Acquired Liabilities by Purchaser from Sellers, and the representations, warranties, covenants and agreements contemplated herein, Purchaser hereby agrees to pay over to
SAE (to an account or accounts notified to Purchaser by SAE in writing in accordance with Section 7.2) certain Licensing Fees (defined below) in accordance with the following: 

 

	 	(1)	 Purchaser will retain 100% of Licensing Fees until Purchaser and its Affiliates have received Licensing Fees
equal to the Threshold (defined below); 

  
 8 

	 	(2)	 After Purchaser and its Affiliates have received Licensing Fees equal to the Threshold (and, for the avoidance
of doubt, Purchaser and its Affiliates shall be entitled to retain such Licensing Fees), Purchaser will remit to SAE 100% of Licensing Fees actually received by Purchaser and its Affiliates in excess of the Threshold, up to a maximum aggregate
amount of FIVE MILLION US DOLLARS ($5,000,000); and 

  

	 	(3)	 Thereafter, Purchaser and its Affiliates will retain 100% of any Licensing Fees. 

“Licensing Fees” are defined as licensing fees (which, for the avoidance of doubt, exclude applicable reproduction charges,
deliverables fees, taxes, and shipping charges) actually received by Purchaser or its Affiliate under the terms of license agreements for the Data that are executed after Closing, but specifically exclude any amounts received pursuant to the Master
Licensing Agreement for Seismic Data, dated March 7, 2019, by and between SAE and Repsol Services Company. 

“Threshold” is defined as (x) FIFTEEN MILLION US DOLLARS ($15,000,000) minus (y) the amount set forth in
Section 2.3(a)(ii). 
  

	 	(ii)	 Any Licensing Fees that Purchaser is required to remit to SAE under this
Section 2.3(b) shall be paid to SAE by wire transfer of immediately available funds no later than three Business Days following the date upon which Purchaser or its Affiliate receives such Licensing Fees.

  

	 	(iii)	 If Purchaser has a customer prepared to license Data at a price that is less than TWENTY THOUSAND US DOLLARS
(US $20,000) per square mile (including any non-cash or partial cash data trades or exchanges), Purchaser will inform SAE of the proposed financial terms of such license and explain the reasons for such
proposal in order to obtain consent thereto from SAE, whom each of the Sellers hereby appoint to act on behalf of both Sellers pursuant to this Section 2.3(b)(iii), which SAE shall not unreasonably withhold, condition or
delay. 

  

	 	(iv)	 If Purchaser or its Affiliate sells or otherwise transfers all of the Data to a Third Party not pursuant to a
proposed license agreement as contemplated above, then Purchaser shall remit to SAE an amount equal to (1) FIVE MILLION US DOLLARS ($5,000,000) minus (2) any amounts paid or payable pursuant to
Section 2.3(b)(i)(2) above as of the date of calculation (such sum, the “Earn Out Accelerated Payment”). If, however, Purchaser or its Affiliate, from time to time, sells or otherwise transfers less than
all of the Data to a Third Party not pursuant to a proposed license agreement as contemplated above, then Purchaser shall remit to SAE an amount equal to (x) the Earn Out Accelerated Payment multiplied by (y) a fraction, the
numerator of which is the number of square miles covered by the Data transferred pursuant to this sentence, and the denominator of which is the aggregate total number of square miles covered by all of the Data acquired pursuant to this Agreement.

  
 9 

	 	(v)	 On a quarterly basis, subject to any confidentiality restrictions contained in any such license agreement,
Purchaser shall deliver to each Seller a report identifying any license agreements for the Data entered into by Purchaser or its Affiliates with Third Parties during the prior quarter, which report shall include the amount of Licensing Fees
applicable to such license agreements, the amounts thereof collected during such quarter, and which Licensing Fees apply to the Threshold, on a cumulative basis with all Licensing Fees under previously executed license agreements for purposes of
determining whether the Threshold has been attained and the payments to be made pursuant to Section 2.3(b)(i)(2). For a period of up to one (1) year following the issuance of a quarterly statement described above in
this Section 2.3(b)(v), one Seller, on behalf of both Sellers, will have the right, at its own expense and upon thirty (30) days prior written notice, but no more than once per calendar year, to audit or cause to be
audited any and all books and records of Purchaser related to the invoicing and collection of fees by Purchaser for Data licenses reported in such statement. For the avoidance of doubt, the foregoing audit right may be exercised no more than once
per calendar year by one Seller, on behalf of both Sellers, with each Seller acknowledging and agreeing that the Seller exercising such audit right shall have the power and authority to bind the other Seller to the results of the exercising
Seller’s audit and the non-auditing Seller shall be deemed to have waived any further right of audit in such calendar year. Purchaser agrees to provide reasonable access during normal business hours to
all such books and records in connection with the audit rights provided herein. No audit pursuant to this Section 2.3(b)(v) shall cover a period previously audited and nothing herein shall entitle any Seller to access any
of Purchaser’s privileged or other confidential information, or any other record not necessary to verify compensation or fees received by SAE. Sellers may select, in their sole discretion and at their own cost and expense, an independent third
party to conduct the audit provided by the foregoing sentences on behalf of the Sellers. Purchaser will fully and in a timely manner cooperate in any audit conducted by or on behalf of any Seller pursuant to this
Section 2.3(b)(v), including responding accurately and completely to all inquiries and providing any requested documents. Where such an audit requires internal rates or details of projects not related to this Agreement,
then Purchaser may require such audit to be performed by an independent auditor selected from one of the top four international accounting firms or an internationally-recognized law firm who shall keep documents confidential except for those
documents that identify a breach. If neither Seller challenges or audits Purchaser within one (1) year of receipt of a quarterly statement described in this Section 2.3(b)(v), or if either Seller delivers written
notice to Purchaser prior to such one (1) year anniversary stating such Seller’s agreement with such quarterly statement (it being acknowledged and agreed between the Sellers that any Seller shall have the power and authority to bind the
other Seller for such purposes), then such statement as delivered by Purchaser will be deemed accepted as correct and will not be subject to challenge or dispute. 

 

	 	(vi)	 For the avoidance of doubt, the maximum aggregate amount payable to SAE under this
Section 2.3(b), if any, is FIVE MILLION US DOLLARS ($5,000,000), at which point Purchaser shall have no further obligation to pay over any amounts to SAE under this Section 2.3(b) (collectively,
the “Earn Out”). 

  
 10 

	2.4	 ROFR 

If, during the period from and after the date hereof until the date that is four years following the date hereof, a Seller decides to sell any
of the ROFR Assets (as defined in the Recitals of this Agreement) (the “Proposed Transfer”), Purchaser shall have a right of first refusal to acquire such ROFR Assets (the “Subject Assets”) in accordance with this
Section 2.4, and the applicable Seller(s) shall not consummate the sale of the Subject Assets unless the Seller(s) shall first deliver to Purchaser a notice (the “First Refusal Notice”) setting forth:
(a) the identity of the proposed purchaser (the “Offeree”); (b) the sale price and the material financial terms of the proposed transaction (the “Purchase Terms”) (including, if the Offeree has executed or
agreed to a form of asset purchase agreement, a copy of such agreement, subject to any confidentiality restrictions; provided, that the applicable Seller shall, at Purchaser’s request, use commercially reasonable efforts to obtain waivers of
such confidentiality restrictions); and (c) the proposed closing date of the Proposed Transfer (which proposed closing date shall be no earlier than the date that is thirty (30) days from the date the Seller(s) deliver the First Refusal
Notice to Purchaser). Purchaser shall, for the 10 Business Day period commencing upon receipt of such First Refusal Notice (the “ROFR Response Period”), have the exclusive right to purchase the Subject Assets, which purchase shall
be made on the Purchase Terms set forth in the First Refusal Notice and otherwise in accordance with the remainder of this section, by so notifying the applicable Seller(s) before 5:00 p.m. Central time on the last day of the ROFR Response Period,
whereupon Purchaser shall be bound to purchase from the Seller(s), and the Seller(s) shall be bound to sell to Purchaser, the Subject Assets on the Purchase Terms set forth in the First Refusal Notice. If Purchaser elects to purchase the Subject
Asset from the applicable Seller(s), Purchaser and the Seller(s) will promptly enter into an asset purchase agreement, which Purchaser and the Seller(s) shall negotiate in good faith, that will contain the Purchase Terms set forth in the First
Refusal Notice and otherwise be consistent with the terms herein, including representations and warranties and indemnification rights with respect to the Subject Assets substantially identical to those granted with respect to the Acquired Assets in
this Agreement, with the purchase price payable at the time of the Subject Assets purchase; provided that if the Offeree has executed or agreed to a form of asset purchase agreement, then Purchaser must accept and execute that form of asset purchase
agreement. If Purchaser shall either: (a) deliver written notice of rejection of the First Refusal Notice to the applicable Seller(s); or (b) fail to deliver written notice of acceptance of the First Refusal Notice within the ROFR Response
Period, Purchaser’s right of first refusal hereunder shall conclusively be deemed to be waived with respect to the sale disclosed in the First Refusal Notice and Seller(s) shall be free, for a period of ninety (90) days from the end of the
ROFR Response Period, to complete the Proposed Transfer to the Offeree on the Purchase Terms and the Offeree shall acquire the Subject Assets free and clear of the Purchaser’s right of first refusal set forth in this
Section 2.4 (which shall be extinguished, null, void, and of no further force or effect with respect to the Subject Assets upon such sale). If, however, either: (i) the applicable Seller(s) does not complete the
Proposed Transfer within ninety (90) days from the end of the ROFR Response Period; or (ii) Seller(s) agrees to complete the Proposed Transfer on any terms other than the Purchase Terms stated in the First Refusal Notice, then
Purchaser’s right of first refusal provided for in Section 2.4 shall once again apply, and Seller(s) shall not complete such Proposed Transfer without first giving a new First Refusal Notice to Purchaser in compliance
with the terms of this Section 2.4. 

  
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	3.	 REPRESENTATIONS AND WARRANTIES 

 

	3.1	 REPRESENTATIONS OF SELLERS. Each
Seller hereby, severally and not jointly and with respect to itself only, represents and warrants to Purchaser as follows: 

  

	(a)	 Standing. Such Seller is a corporation or limited liability company duly incorporated or formed and
validly subsisting and in good standing under the laws of its jurisdiction of incorporation. 

  

	(b)	 Authority. Such Seller has taken all necessary actions and has all requisite capacity, power and
authority to enter into this Agreement and the other Transaction Documents required to be delivered by it pursuant hereto, and to perform its obligations hereunder and thereunder. 

 

	(c)	 Execution and Enforceability of Documents. This Agreement has been and any other Transaction Document to
which such Seller is a party, will be, duly executed and delivered by it and constitute legal, valid, binding and enforceable obligations of such Seller subject to the qualification that such enforceability may be subject to: (i) bankruptcy,
insolvency, fraudulent preference, reorganization or other Applicable Laws affecting creditor’s rights generally; and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at equity or
law). 

  

	(d)	 No Conflicts. Except as set forth on Schedule 3.1(d), the execution, delivery and performance of
this Agreement and the other Transaction Documents to which such Seller is a party, and the consummation by such Seller of the transactions contemplated hereby and thereby, do not and will not (i) violate, be in breach of, conflict with, or
result in a breach or acceleration of or default under (with or without due notice or lapse of time or both), (x) the charter, bylaws or other governing documents of such Seller, (y) any provision of any Permit or material agreement or
instrument to which such Seller is party or by which such Seller or its interests in the Acquired Assets are bound, or (z) any Applicable Law, or (ii) result in, or require, the creation or imposition of, any Lien upon or with respect to
the Acquired Assets. 

  

	(e)	 Consents. Such Seller has received all necessary Consents from any and all Third Parties required to
sell the Acquired Assets to Purchaser, except for any Consents listed on Schedule 3.1(e), which shall be governed by Section 4.2. 

 

	(f)	 Acquired Assets and ROFR Assets. With respect to the Acquired Assets and, to the extent specified below,
the ROFR Assets: 

  

	 	(i)	 Sellers are the sole and exclusive owners of, and have good, valid and merchantable title to all of the
Acquired Assets, free and clear of all Liens, and are exclusively entitled to possess and dispose of the same; 

  

	 	(ii)	 with the exception of Liens in favor of the Sellers’ lenders and noteholders, or to any administrative
agent, collateral agent, trustee or collateral trustee acting on behalf of such lenders and noteholders from time to time, Sellers are the sole and exclusive owners of, and have good, valid and merchantable title to all of the ROFR Assets, free and
clear of all Liens, and are exclusively entitled to possess and dispose of the same; 

  
 12 

	 	(iii)	 the Data includes all of the deliverables set forth on Exhibit A; 

 

	 	(iv)	 with the exception of the rights and obligations expressly set forth in the Acquired Agreements, such Seller
has not sold the Acquired Assets and there are no outstanding options or rights to acquire or use, access or view in any manner all or any part of the Acquired Assets, and furthermore, for clarity, with the exception of the rights and obligations
expressly set forth in the Acquired Agreements, no Third Party has any option or right (whether at law, pre-emptive, contractual, equitable or otherwise) capable of becoming an agreement to purchase from such
Seller, or to use, access, view, license or sublicense in any manner, all or any part of the Acquired Assets (including any option to use, view or access the Data or an option to acquire a license to the Data at a specified price, specifically in
connection with any Permits); 

  

	 	(v)	 with the exception of Liens in favor of the Sellers’ lenders and noteholders, or any administrative agent,
collateral agent, trustee or collateral trustee acting on behalf of such lenders and noteholders from time to time and the rights and obligations expressly set forth in the ROFR, such Seller has not sold the ROFR Assets and there are no outstanding
options or rights to acquire or use, access or view in any manner all or any part of the ROFR Assets, and furthermore, for clarity, with the exception of Liens in favor of the Sellers’ lenders and noteholders, or any administrative agent,
collateral agent or collateral trustee acting on behalf of such lenders and noteholders from time to time and the rights and obligations expressly set forth in the ROFR, no Third Party has any option or right (whether at law, pre-emptive, contractual, equitable or otherwise) capable of becoming an agreement to purchase from such Seller, or to use, access, view, license or sublicense in any manner, all or any part of the ROFR Assets
(including any option to use, view or access the Data or an option to acquire a license to the Data at a specified price, specifically in connection with any Permits); 

 

	 	(vi)	 with respect to the Acquired Agreements: 

 

	 	(1)	 such Seller has made available true, correct and complete copies of the Acquired Agreements to which it is a
party (including each amendment, supplement or modification thereto) to Purchaser; 

  

	 	(2)	 the Acquired Agreements to which such Seller is a party are binding and enforceable on such Seller and to such
Seller’s Knowledge, binding and enforceable on the other parties to the Acquired Agreements in accordance with their terms, subject, in each case, to the qualification that such enforceability may be subject to: (i) bankruptcy, insolvency,
fraudulent preference, reorganization or other Applicable Laws affecting creditor’s rights generally; and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at equity or law);

  
 13 

	 	(3)	 except as set forth on Schedule 3.1(e), the Acquired Agreements to which such Seller is a party and/or
such Seller’s rights thereunder may be freely transferred to the Purchaser in accordance with this Agreement without triggering any right for the counterparties to terminate or amend any of the Acquired Agreements; and 

 

	 	(4)	 neither such Seller, nor, to such Seller’s Knowledge, any of the applicable counterparties to any of the
Acquired Agreements to which such Seller is a Party have at any time materially breached its obligations under any Acquired Agreement nor, to such Seller’s Knowledge, has any event or circumstance occurred which with the passage of time and/or
the giving of notice would become a material breach of any of such Seller’s or any of the applicable counterparties’ obligations under any Acquired Agreement. Such Seller has not given or received written notice of termination of any
Acquired Agreement to which such Seller is a Party existing on the Closing Date; 

  

	 	(vii)	 with respect to the Permits included in the Acquired Assets, such Permits constitute all of the Permits used or
necessary for the lawful ownership and operation of the Acquired Assets. Such Seller has made available to Purchaser true and complete copies of all such Permits issued to it. Sellers are the authorized legal holders of such Permits and each such
Permit is valid, binding and in full force and effect as to the Sellers. Such Seller is not, and such Seller has not received any written notice that it is, in default (or with the giving of notice or lapse of time or both, would be in default)
under any such Permits and such Seller has not received any written notice that any such Permit will be revoked or issued, renewed, or modified on terms or conditions that are substantially different than those currently in effect; and

  

	 	(viii)	 the surveys included in the Data were conducted and contain all such data as otherwise may be expected from
similar surveys carried out by competent and diligent seismic contractors; all such data is organized, stored, and maintained in electronic format and/or on tape storage in accordance with industry practice; and all Data included in the Acquired
Assets has been processed and produced in the practices and standards expected of a competent seismic contractor in a professional, careful, and competent manner; and there are no agreements or licenses relating to any part of the Acquired Assets or
the Acquired Liabilities other than have been disclosed to Purchaser. 

  

	(g)	 Certain Developments. The Acquired Assets have been
owned and operated in all material respects in the ordinary course of business and there has not been or occurred any event, condition, circumstance or change which has had or which is reasonably likely to have a material adverse effect on the
Acquired Assets. 

  
 14 

	(h)	 Compliance with Laws; No Legal Proceedings. Except as set forth on Schedule 3.1(h), such Seller
is, and at all times has been, in compliance with, and is operating its business and maintaining its Acquired Assets in compliance with, all Applicable Laws in all material respects. There is no Proceeding pending or, to the Knowledge of such
Seller, threatened against or affecting the Acquired Assets, and the Acquired Assets are not currently subject to any judgment, order or decree. 

  

	(i)	 Intellectual Property. There are no adverse claims affecting or with respect to the Intellectual
Property related to the Acquired Assets and such Intellectual Property is validly and beneficially owned or licensed by such Seller, free and clear of all Liens. Such Seller has not received written notice of any claim that may be asserted against
such Seller for infringement or breach of any Intellectual Property of a Third Party, and, to the Knowledge of such Seller, there are no claims that may be asserted against such Seller for infringement or breach of any Intellectual Property of a
Third Party. To the Knowledge of such Seller, no Person is infringing on the Intellectual Property of the Acquired Assets. Each item of Intellectual Property related to the Acquired Assets owned or used by such Seller immediately prior to the
Closing hereunder will be owned or available for use, assignment, transfer, or license by Purchaser immediately subsequent to the Closing hereunder without restrictions or limitations thereon. 

 

	(j)	 Brokers. Such Seller has not incurred any Liability for brokers’ or finders’ fees in respect
of this Agreement, the other Transaction Documents or the transactions contemplated herein or therein for which Purchaser has or would have any obligation or liability. 

 

	(k)	 Taxes. All taxes relating to or otherwise affecting the Acquired Assets (whether or not shown on any Tax
Returns) that have become due have been paid in full. There are no Liens for taxes on any of the Acquired Assets (other than statutory Liens for current taxes not yet due or delinquent or the validity or amount of which is being contested in good
faith by appropriate Proceedings). Other than those covering the Aklaq survey, there are no outstanding Alaska tax credit applications or tax credit certificates covering the Acquired Assets. 

 

	(l)	 Insolvency. Such Seller (i) is not insolvent, (ii) is not in receivership or dissolution,
(iii) has not made any assignment for the benefit of creditors, (iv) has not admitted in writing its inability to pay its debts as they mature, (v) has not been adjudicated bankrupt or (vi) has not filed a petition in voluntary
bankruptcy, a petition or answer seeking reorganization, or an arrangement with creditors under the federal bankruptcy law or any other similar law or statute of the United States or any state, nor has any such petition been filed against such
Seller. 

  

	3.2	 REPRESENTATIONS OF PURCHASER.
Purchaser hereby represents and warrants to Sellers as follows: 

  

	(a)	 Standing. Purchaser is a corporation duly incorporated and validly subsisting and in good standing under
the laws of its jurisdiction of incorporation. 

  
 15 

	(b)	 Authority. Purchaser has taken all necessary actions and has all requisite capacity, power and authority
to enter into this Agreement and the other Transaction Documents required to be delivered by it pursuant hereto, and to perform its obligations hereunder and thereunder. 

 

	(c)	 Execution and Enforceability of Documents. This Agreement has been and any other Transaction Document to
which Purchaser is a party, will be, duly executed and delivered by it and constitute legal, valid, binding and enforceable obligations of Purchaser subject to the qualification that such enforceability may be subject to: (i) bankruptcy,
insolvency, fraudulent preference, reorganization or other Applicable Laws affecting creditor’s rights generally; and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at equity or
law). 

  

	(d)	 No Conflicts. The execution, delivery and performance of this Agreement and the other Transaction
Documents to which Purchaser is a party, and the consummation by Purchaser of the transactions contemplated hereby and thereby, do not and will not violate, be in breach of, conflict with, or result in a breach or acceleration of or default under
(with or without due notice or lapse of time or both) (i) the charter, bylaws or other governing documents of Purchaser, (ii) any provision of any material agreement or instrument to which Purchaser is party, or (iii) any Applicable
Law. 

  

	(e)	 Brokers. Purchaser has not incurred any Liability, contingent or otherwise, for brokers’ or
finders’ fees in respect of this Agreement or the transactions contemplated herein for which any Seller has any obligation or liability. 

  

	4.	 COVENANTS 

  

	4.1	 RIGHTS OF PURCHASER 

From and after the Closing, Purchaser shall have title to the Acquired Assets. Without prejudice to the foregoing generality, from and after the Closing,
Purchaser will have the exclusive right to sell or license interests in the Acquired Assets to Third Parties without accounting to any Seller, except as set forth in Section 2.3(b) with respect to the Earn Out. From and
after the Closing, neither Seller shall have the right to sell, license or otherwise grant any interests in the Acquired Assets to any Third Party. Following the Closing, (a) each Seller will promptly, and in any event not later than seven
(7) days following receipt, forward to Purchaser any payments received by such Seller or any of its Affiliates with respect to the Acquired Assets, and any such checks, drafts or other instruments payable to any such Seller or its Affiliate
will, when so delivered, bear all endorsements required to effectuate the transfer of the same to Purchaser, and (b) each Seller will promptly forward to Purchaser any mail or other communications received by such Seller or any of its
Affiliates relating to the Acquired Assets or the Acquired Liabilities. Following the Closing, (i) Purchaser will promptly, and in any event not later than seven (7) days following receipt, forward to the Sellers any payments received by
Purchaser or any of its Affiliates with respect to the Excluded Assets, and any such checks, drafts or other instruments payable to any Purchaser or its Affiliate will, when so delivered, bear all endorsements required to effectuate the transfer of
the same to Sellers, and (ii) Purchaser will promptly forward to Sellers any mail or other communications received by Purchaser or any of its Affiliates relating to the Excluded Assets or the Excluded Liabilities. 

  
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	4.2	 NOTICES AND CONSENTS; NONASSIGNABLE
ACQUIRED ASSETS 

  

	(a)	 Each Seller will give any notices to Third Parties required to transfer the Acquired Assets and will use
commercially reasonable efforts obtain any Consents required to consummate the transactions contemplated by this Agreement. Each Seller agrees to execute all necessary documentation to effect and make binding the sale of the Acquired Assets to
Purchaser. 

  

	(b)	 If any Acquired Agreements or Permits included in the Acquired Assets are not by their respective terms
assignable, or to the extent the Parties elect or are required to consummate the transactions contemplated hereby prior to obtaining a Consent required in connection with the assignment, transfer or
re-issuance thereof, this Agreement shall not constitute an assignment or attempted assignment thereof. With respect to any such Acquired Agreement or Permit, the Sellers and Purchaser shall use their
commercially reasonable efforts and cooperate with each other to obtain, or cause to be obtained, within ninety (90) days of the Closing Date, any written Consent necessary to convey to Purchaser the benefit thereof; provided, however, that
neither any Seller nor Purchaser shall be required to pay any out-of-pocket expenses therefor. To the extent that any such Consents cannot be obtained,
(i) Purchaser and Sellers shall cooperate in any commercially reasonable arrangement (such as subleasing, sublicensing or subcontracting) designed to provide Purchaser with the economic benefits of such nonassignable Acquired Agreements or
Permits (including that Sellers shall pay over to Purchaser within five (5) days of receipt thereof any monies received by either Seller under or in connection with such nonassignable Acquired Agreements or Permits), (ii) Sellers shall enforce
at the request of and for the benefit of Purchaser any and all rights of Sellers arising under such nonassignable Acquired Agreements or Permits (including a right of termination), and (iii) Purchaser shall, as agent or subcontractor for
Sellers pay, perform and discharge fully the liabilities and obligations of Sellers thereunder from and after the Closing Time. If the approval of the other party to such Acquired Agreement or Permit is obtained after the Closing Date, such approval
will, as between Sellers and Purchaser, constitute a confirmation (automatically and without further action of the parties) that such Acquired Agreement or Permit is assigned to Purchaser as of the Closing Time, and (automatically and without
further action of the parties) that the liabilities with respect to such Acquired Agreement or Permit are, subject to the terms of this Agreement, assumed as of the Closing Time. 

 

	(c)	 To the extent the Parties elect to consummate the transactions contemplated hereby prior to receiving filed
copies of any UCC-3 amendment effectuating the release of any Lien encumbering any of the Acquired Assets, in each case, in form and substance reasonably satisfactory to Purchaser, following the Closing,
Sellers shall, at Purchaser’s request and at Sellers’ sole cost and expense, timely file or record any such UCC-3 amendment. 

  
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	4.3	 TRANSFER TAXES 

Sellers shall (i) be responsible for (and shall indemnify, defend, and hold harmless Purchaser against) any and all Liabilities for any sales, use,
filing, recording, transfer, real estate transfer, gross receipts, registration, duty, or similar fees or taxes or governmental charges (together with any interest or penalty, addition to tax or additional amount imposed) as levied by any taxing
Governmental Authority in connection with the transactions contemplated by this Agreement (collectively, “Transfer Taxes”), regardless of the Person liable for such Transfer Taxes under Applicable Law and (ii) timely file or
caused to be filed all necessary documents (including all tax returns) with respect to Transfer Taxes. 
  

	4.4	 CONFIDENTIALITY 

Each of the Sellers agrees, and shall cause its Affiliates: 
  

	(a)	 not to disclose to any unauthorized Persons or use for its own account or for the benefit of any Third Party
any and all information, whether or not such information is embodied in writing or other physical form, concerning the Acquired Assets, this Agreement, the Transaction Documents or any exhibits hereto or thereto or documents delivered hereunder or
thereunder (collectively, the “Confidential Information”) without Purchaser’s prior written consent, unless and to the extent that such information (i) is or becomes generally known to and available for use by the public
other than as a result of any Seller’s fault or the fault of any other Person bound by a duty of confidentiality to Seller, (ii) is lawfully acquired by a Seller or any of its Affiliates from sources which are not prohibited from
disclosing such information by a legal, contractual or fiduciary obligation or (iii) is disclosed to its directors, officers, employees, affiliates, partners, shareholders, lenders, agents, consultants, advisers, legal counsel and experts for
the purpose of consummating the transaction contemplated by this Agreement (so long as such Persons are bound by a duty of confidentiality with respect to such information and such Seller shall be responsible for any disclosure of Confidential
Information by any such Persons in violation of the terms hereof); provided, however, that this Section 4.4(a) shall not prohibit a Party from disclosing the transactions contemplated by this Agreement as may be required by
Applicable Law or the rules or regulations of any applicable United States securities exchange or other Governmental Authority to which the relevant Party is subject or submits, in which instance the Parties shall reasonably cooperate as to the
contents of any such disclosure. If a Seller or any of its Affiliates are compelled to disclose any Confidential Information by judicial or administrative process or by other requirements of law, to the extent legally permissible, such Seller shall
promptly notify Purchaser in writing and shall disclose only that portion of such Confidential Information which such Seller is, based on the advice of external legal counsel, legally required to be disclosed; and 

 

	(b)	 to deliver to Purchaser, at or promptly after the Closing, all documents, data, memoranda, notes, plans,
records, reports and other documentation, models, components, devices or computer software, whether embodied in a disk or in other form (and all copies of all of the foregoing), that contain Confidential Information and any other Confidential
Information that such Seller or its Affiliates may then possess or have under its control. 

  
 18 

	4.5	 TRANSITION OF ACQUIRED ASSETS

 Subject to the terms of this Agreement, the title to and interest in the Acquired Assets shall remain solely with the Sellers until
Closing at which time title to and interest in the Acquired Assets passes to the Purchaser. Sellers shall cover the cost of and shall ensure due and proper delivery of the Acquired Assets to an address of the Purchaser in Houston, Texas or Calgary,
Alberta, as stipulated by the Purchaser, and shall be and continue to be a trustee for the Purchaser in respect of all Acquired Assets until the same shall have been actually delivered and received or, in the case of Acquired Assets that cannot be
transferred by delivery, formally transferred or assigned to the Purchaser. Following the Closing Time, Sellers shall neither access any Data being part of the Acquired Assets nor delete or cause to be deleted any data stored electronically until
such time as the Purchaser in writing has confirmed complete receipt without corruption (upon receipt of which deletion of all electronic copies held by or on behalf of Sellers is to be carried out and confirmed). Without limitation to the
foregoing, at the Closing, Sellers shall deliver to Purchaser on a USB storage device or devices any and all Data that can be delivered in electronic form, including all final processed Data. Sellers may deliver field tapes to Purchaser separately
following the Closing (but in no event later than fourteen (14) days following the Closing Date), to an address in Houston, Texas or Calgary, Alberta, as notified in writing by Purchaser. Any Data or field tapes delivered by Sellers shall be
properly labelled and accompanied by a reasonably detailed inventory. Sellers shall remain liable for any risk of loss or other damage to any Acquired Assets until delivered to Purchaser in accordance with this Section 4.5.
For the avoidance of doubt, insofar as conflict arises between this Section 4.5 and any other section of this Agreement, this Section 4.5 shall prevail. 

 

	4.6	 WITHDRAWAL OF AKLAQ TAX CREDIT
APPLICATION 

 Without limitation to Section 6.4, the Sellers, at their sole
cost and expense, shall take, or shall cause to be taken, such actions and execute and deliver such documents after the Closing as are necessary, proper or advisable under Applicable Law to, and will, effect the withdrawal of any outstanding Alaska
tax credit applications or certificates covering the Aklaq survey with respect to tax credit applications granted or certificates received under Section 43.55.025 of the Alaska Statutes. 

 

	4.7	 PARTICIPATION IN SEISMIC DATA
ACQUISITION 

  

	(a)	 During the period from and after the date of this Agreement until the date that is five (5) years
following the date of this Agreement, each Seller will offer Purchaser the opportunity to participate as a joint owner in the acquisition, whether on its own or through a data purchase, of multi-client seismic data conducted by either Seller within
the State of Alaska; provided, however, that with respect to the Inupiat GeoPhysical Partnership and a prospective seismic survey in the ANWR, such opportunity to participate is subject to the approval of the members of the Inupiat GeoPhysical
Partnership (it being understood and agreed that the Sellers shall use commercially reasonable efforts to obtain any such approval); and provided, further that, nothing in this Section 4.7(a) shall require either Seller to
offer Purchaser the opportunity to participate in the acquisition of seismic data conducted in connection with SAE’s arrangements with ConocoPhillips. If Purchaser elects to participate in the acquisition of multi-client seismic data pursuant
to this Section 4.7(a), then Purchaser and the applicable Seller will negotiate in good faith to enter into an arrangement for such acquisition on terms consistent with standard industry practice for a transaction of such
nature. 

  
 19 

	(b)	 During the period from and after the date of this Agreement until the date that is five (5) years
following the date of this Agreement, Purchaser will offer, from time to time, SAE with the opportunity to provide services in connection with any seismic data acquisition efforts on Purchaser’s behalf within the State of Alaska (i.e., onshore
and State of Alaska-controlled waters offshore) (a “Purchaser Offer”). If SAE elects to provide such services pursuant to this Section 4.7(b), then SAE and Purchaser will negotiate in good faith to enter
into an arrangement for such acquisition on terms consistent with standard industry practice for a transaction of such nature and past practices between SAE and Purchaser. If SAE (a) rejects a Purchaser Offer or (b) fails to respond within
fifteen (15) Business Days of receipt of the Purchaser Offer (in either case, a “Rejected Purchaser Offer”), then (i) Purchaser shall have no further obligation under this Section 4.7(b) with
respect to such Rejected Purchaser Offer and shall be free to pursue, using any Third Party in Purchaser’s sole discretion, the acquisition of multi-client seismic data underlying such Rejected Purchaser Offer on terms and conditions described
in such Rejected Purchaser Offer without any participation by SAE and (ii) SAE shall not, and shall not permit its Affiliates, officers, directors, employees, representatives and agents to, pursue or engage in any transaction involving the
acquisition of multi-client seismic data underlying such Rejected Purchaser Offer, without Purchaser’s prior written consent. 

  

	4.8	 DISCLAIMER OF REPRESENTATIONS AND
WARRANTIES 

 EXCEPT AS MAY EXPRESSLY BE SET FORTH IN ARTICLE 3 (INCLUDING THE SCHEDULES THERETO)
OF THIS AGREEMENT OR IN ANY OTHER TRANSACTION DOCUMENT, (A) SELLERS DISCLAIM AND DO NOT MAKE ANY REPRESENTATION OR WARRANTY OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE ACQUIRED ASSETS, ANY OF THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT (INCLUDING ANY CONSENTS OR APPROVALS REQUIRED IN CONNECTION THEREWITH) OR THE CONDITION OR PROSPECTS (FINANCIAL OR OTHERWISE) OF, OR ANY OTHER MATTER INVOLVING, THE ACQUIRED ASSETS (INCLUDING WITH
RESPECT TO (1) THE ACCURACY OR COMPLETENESS OF ANY INFORMATION REGARDING THE ACQUIRED ASSETS FURNISHED OR MADE AVAILABLE TO PURCHASER AND ITS REPRESENTATIVES, AND/OR (2) THAT THE ACQUIRED ASSETS ARE DELIVERED FREE OR RIGHTFUL CLAIM OF ANY
THIRD PERSON AND (B) ALL OF THE ACQUIRED ASSETS TO BE TRANSFERRED OR THE ACQUIRED LIABILITIES TO BE ASSUMED OR TRANSFERRED, DIRECTLY OR INDIRECTLY, IN ACCORDANCE WITH THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT SHALL BE TRANSFERRED OR
ASSUMED ON AN “AS IS, WHERE IS” BASIS, AND ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE ARE HEREBY EXPRESSLY DISCLAIMED. PURCHASER, TOGETHER WITH ITS ADVISORS, HAS MADE ITS OWN INVESTIGATION OF
THE ACQUIRED ASSETS AND IS NOT RELYING ON ANY WARRANTIES, EXPRESS OR IMPLIED, PROVIDED ORALLY OR CONTAINED IN ANY MATERIALS PROVIDED BY SELLERS OR ANY OF THEIR AFFILIATES OR ANY OF THEIR RESPECTIVE REPRESENTATIVES OR OTHERWISE

  
 20 

 
(INCLUDING ANY ITEMS MADE AVAILABLE TO PURCHASER IN THE ELECTRONIC DOCUMENTATION SITE ESTABLISHED BY SELLERS, OTHER THAN AS EXPRESSLY PROVIDED IN ARTICLE 3 (INCLUDING THE SCHEDULES THERETO) OF
THIS AGREEMENT, IN DECIDING TO ENTER INTO THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS AND CLOSE THE TRANSACTIONS CONTEMPLATED HEREIN AND THEREIN. EXCEPT AS MAY BE EXPRESSLY SET FORTH IN ARTICLE 3 OF THIS AGREEMENT (INCLUDING THE
SCHEDULES THERETO) OR IN ANY OTHER TRANSACTION DOCUMENT, NONE OF THE PARTIES OR ANY OTHER PERSON MAKES ANY REPRESENTATION OR WARRANTY WITH RESPECT TO ANY INFORMATION, DOCUMENTS OR MATERIAL MADE AVAILABLE IN CONNECTION WITH THE ENTERING INTO OF THIS
AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS OR THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, NOTHING IN THIS SECTION 4.8 SHALL LIMIT THE RIGHT OF PURCHASER TO
SEEK ANY AVAILABLE REMEDY FOR INTENTIONAL FRAUD. 
  

	5.	 SURVIVAL AND INDEMNIFICATION 

 

	5.1	 SURVIVAL 

The representations and warranties of the Parties contained in this Agreement and contained in any document or certificate given pursuant hereto shall survive
the execution and delivery of this Agreement and the Closing until the second (2nd) anniversary of the Closing Date; provided, however, that the Fundamental Representations shall survive the Closing and continue in full force and
effect indefinitely. The covenants and agreements of the Parties contained in this Agreement will survive the Closing in accordance with their terms. For greater certainty, no claim for indemnification for breaches of any representation, warranty,
covenant or agreement may be asserted after the expiration of the applicable survival period set forth in this Section 5.1. Any claim for indemnification not made on or prior to such date shall be irrevocably and
unconditionally released and waived. So long as an indemnified party asserts a claim for indemnification under and in accordance with this Article 5 prior to the expiration of the applicable survival period set forth in this
Section 5.1, such indemnified party shall be deemed to have preserved its rights to indemnification under this Article 5 regardless of when such claim is ultimately liquidated or resolved. 

 

	5.2	 SELLER INDEMNITY 

Subject to the other terms and conditions of this Article 5, Sellers, jointly and severally, are liable for, and shall indemnify, defend and hold
harmless Purchaser, its Affiliates and each of their respective directors, shareholders, officers, employees, agents and representatives (the “Purchaser Indemnified Parties”) from and against, all losses, judgments, settlements,
Liabilities, claims, damages, costs and expenses (including reasonable costs of investigation, fees and expenses of attorneys, accountants, financial advisors and other experts, court costs and other expenses of litigation)
(“Losses”) suffered, sustained, paid or incurred by any Purchaser Indemnified Party with respect to, resulting from or arising out of: 
  

	(a)	 the breach of any representations and warranties of any Seller set forth in this Agreement or in any other
Transaction Document (other than the MSA Supplement) (without regard to whether such representation or warranty has been made on a several basis or otherwise); 

  
 21 

	(b)	 the breach of any of the covenants of any Seller set forth in this Agreement or in any other Transaction
Document (other than the MSA Supplement) (without regard to whether such covenant has been made on a several basis or otherwise); 

  

	(c)	 any Liens on the Acquired Assets (other than Liens created by or through Purchaser); or 

 

	(d)	 any Excluded Liabilities. 

 

	5.3	 PURCHASER INDEMNITY 

Subject to the other terms and conditions of this Article 5, Purchaser is liable for, and shall indemnify, defend and hold harmless each Seller, its
Affiliates and each of their respective directors, shareholders, officers, employees, agents and representatives (the “Seller Indemnified Parties”) from and against, all Losses suffered, sustained, paid or incurred by any
Seller Indemnified Party with respect to, resulting from or arising out of: 
  

	(a)	 the breach of any representations and warranties of Purchaser set forth in this Agreement or in any other
Transaction Document (other than the MSA Supplement); 

  

	(b)	 the breach of any of the covenants of Purchaser set forth in this Agreement or in any other Transaction
Document (other than the MSA Supplement); or 

  

	(c)	 the Acquired Liabilities. 

 

	5.4	 LIMITATIONS ON PURCHASER INDEMNIFIED
PARTIES AND ADDITIONAL AGREEMENTS 

  

	(a)	 The aggregate amount of all Losses for which Sellers shall be liable hereunder shall not exceed the amount of
proceeds actually received by Sellers pursuant to Section 2.3. 

  

	(b)	 In no event shall any Party be liable to any other person or entity under this Agreement for any
(x) punitive damages, (y) exemplary damages or (z) damages that are not the probable and reasonably foreseeable result of the underlying breach, misrepresentation, inaccuracy, or default, whether based in contract, tort, strict
liability or other law, except for any such damages described in the foregoing clauses (x), (y) or (z) to the extent actually paid or payable to a Third Party pursuant to any claim made by such Third Party. 

 

	(c)	 In calculating any Losses, there shall be deducted any portion of such Losses that could reasonably have been
avoided under and in accordance with the common law contract principles of the State of Texas regarding mitigation of damages. Notwithstanding anything herein to the contrary, no Party be entitled to be compensated more than once for the same claim
under this Article 5. 

  

	(d)	 Nothing in this Section 5.4 shall limit in any way the Sellers’ liability for
the Excluded Liabilities, and, as between Purchaser and Sellers, Sellers shall be exclusively liable for the Excluded Liabilities unless Purchaser agrees otherwise in a signed writing executed by all Parties. 

  
 22 

	5.5	 ADJUSTMENT IN PURCHASE PRICE;
PAYMENT OF INDEMNIFIABLE LOSSES 

 All indemnifiable Losses under this
Agreement will be paid in cash in immediately available funds. The Parties agree that all indemnification amounts paid pursuant to this Article 5 constitute an adjustment to the Purchase Price for all purposes, including tax purposes. In the
event any of the Purchaser Indemnified Parties are entitled to indemnifiable Losses under this Agreement or the CRD Purchase Agreement, at Purchaser’s sole election, and without prejudice to any right it may have to proceed directly against the
Sellers, Purchaser shall be entitled to set off all or any part of the amount of such indemnifiable Losses for which the Sellers are obligated to indemnify any such Purchaser Indemnified Party against any amounts payable by Purchaser or any of its
Affiliates to any Seller or any of its Affiliates under any agreement or arrangement or for any other reason. Purchaser’s exercise of its right of set-off pursuant to this
Section 5.5 shall be conclusively evidenced by a notice to such effect given by Purchaser to Sellers at least thirty (30) days before the set-off, which notice shall state the
amount of the set-off, the reasons for it and the date on which Purchaser proposes applying such set-off. The Parties shall use commercially reasonable efforts prior to
the date which Purchaser proposes applying such set-off to agree upon a resolution to any objection Sellers have to such a set-off, but Purchaser may apply such proposed
set-off on such proposed date if the Parties have been unsuccessful in agreeing another resolution (subject to Sellers’ rights under this Agreement to dispute such
set-off). 
  

	5.6	 EXCLUSIVE REMEDY 

EXCEPT FOR INTENTIONAL FRAUD CLAIMS, FROM AND AFTER THE CLOSING, THE REMEDIES OF THE PARTIES SPECIFICALLY PROVIDED FOR BY THIS ARTICLE 5 SHALL BE THE
SOLE AND EXCLUSIVE REMEDIES OF THE PARTIES FOR ALL MATTERS ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE TRANSACTION DOCUMENTS (OTHER THAN THE MSA SUPPLEMENT) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY, OR OTHERWISE RELATING TO THE
ACQUIRED ASSETS; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL LIMIT A PARTY’S RIGHT TO SEEK SPECIFIC PERFORMANCE OR INJUNCTIVE RELIEF IN CONNECTION WITH ANOTHER PARTY’S OBLIGATIONS UNDER THIS AGREEMENT, IT BEING ACKNOWLEDGED THAT MONETARY
DAMAGES DUE TO THE NON-DEFAULTING PARTY IN SUCH CASE MAY NOT BE ADEQUATELY DETERMINED AT LAW. 
  

	5.7	 EXPRESS NEGLIGENCE; LIMITATIONS ON
DEFENSE TO CERTAIN CLAIMS 

 THE FOREGOING INDEMNITIES ARE INTENDED TO BE
ENFORCEABLE AGAINST THE PARTIES IN ACCORDANCE WITH THE EXPRESS TERMS AND SCOPE THEREOF, NOTWITHSTANDING ANY EXPRESS NEGLIGENCE RULE, DOCTRINE RELATING TO INDEMNIFICATION FOR STRICT LIABILITY OR ANY SIMILAR DIRECTIVE THAT WOULD PROHIBIT OR OTHERWISE
LIMIT INDEMNITIES BECAUSE OF THE NEGLIGENCE (WHETHER SOLE, CONCURRENT, ACTIVE OR PASSIVE) OR OTHER FAULT OR STRICT LIABILITY OF ANY OF THE INDEMNIFIED PARTIES. TO THE 

  
 23 

 
EXTENT THAT A PURCHASER INDEMNIFIED PARTY MAKES ANY CLAIMS AGAINST THE SELLERS UNDER THE PROVISIONS OF THIS ARTICLE 5, THE SELLERS MAY NOT ASSERT AND HEREBY EXPRESSLY WAIVE AS A DEFENSE,
COUNTERCLAIM, OR OTHERWISE THAT PURCHASER HAS BEEN NEGLIGENT IN CONDUCTING ITS DUE DILIGENCE RELATING TO ANY ASPECT OF SELLERS OR THE ACQUIRED ASSETS. THE RIGHT TO INDEMNIFICATION IN ACCORDANCE WITH THE PROVISIONS OF THIS
ARTICLE 5 WILL NOT BE AFFECTED BY ANY INVESTIGATION CONDUCTED WITH RESPECT TO, OR ANY KNOWLEDGE ACQUIRED (OR CAPABLE OF BEING ACQUIRED) AT ANY TIME, WHETHER BEFORE OR AFTER THE CLOSING DATE, WITH RESPECT TO THE ACCURACY OR
INACCURACY OF OR COMPLIANCE WITH, ANY REPRESENTATION, WARRANTY, COVENANT OR OBLIGATION SET FORTH IN THIS AGREEMENT OR IN ANY TRANSACTION DOCUMENT. THE OBLIGATIONS OF THE PARTIES HEREUNDER ARE NOT CONTINGENT UPON THE ASSERTION OF A CLAIM, DIRECTIVE,
ACTION, OR PROCEEDING BY A GOVERNMENTAL AUTHORITY OR THIRD PARTY. 
  

	6.	 CLOSING PROCEDURES 

 

	6.1	 CLOSING 

The Closing shall take place at the offices of Purchaser at the Closing Time, or at such other time and place as may be mutually agreed to by the Parties. 

 

	6.2	 SELLER’S DELIVERIES 

At Closing, Sellers shall deliver, or cause to be delivered, to Purchaser: 
  

	(a)	 all portions of the Acquired Assets as set forth in Section 4.5 (and except as
delivery is allowed post-Closing pursuant to Section 4.5); 

  

	(b)	 duly executed written copies of the Consents set forth on Schedule 6.2, in form and substance reasonably
satisfactory to Purchaser; 

  

	(c)	 the Bill of Sale, Assignment and Assumption Agreement in the form attached hereto as Exhibit C, as duly
executed and delivered by each Seller; 

  

	(d)	 copies of any payoff letters (or other similar documentation) for any items of debt for which a Lien encumbers
any of the Acquired Assets and evidence reasonably satisfactory to Purchaser of all terminations or releases of any such Liens on the Acquired Assets; 

  

	(e)	 a Supplemental Agreement to the Master Service Agreement dated August 14, 2018 providing for, among other
things, the conduct of the acquisition of the Kuukpik 3D Phase II survey by SAE, in the form attached hereto as Exhibit D (the “MSA Supplement”), as duly executed and delivered by SAE and its respective applicable Affiliates
named therein; 

  

	(f)	 the Funds Flow Memorandum, as duly executed and delivered by each Seller; 

  
 24 

	(g)	 evidence reasonably satisfactory to Purchaser of the notification by Sellers to the State of Alaska Department
of Revenue of the withdrawal of any outstanding Alaska tax credit applications or certificates covering the Aklaq survey with respect to tax credit applications granted or certificates received under Section 43.55.025 of the Alaska Statutes;  

  

	(h)	 evidence reasonably satisfactory to Purchaser of the termination of that certain Seismic License, by and
between ASV, as licensor, and SAE, as licensee, dated as of December 1, 2015, duly executed by each of the Sellers; 

  

	(i)	 SAE’s executed signature page(s) to the CRD Purchase Agreement; and 

 

	(j)	 such other documents or acknowledgements as in the opinion of Purchaser may be reasonably necessary for the
Closing. 

  

	6.3	 PURCHASER DELIVERIES 

At Closing, Purchaser shall deliver the following to Sellers: 
  

	(a)	 the Purchase Price, in accordance with Section 2.3; 

 

	(b)	 the Bill of Sale, Assignment and Assumption Agreement in the form attached hereto as Exhibit C, as duly
executed and delivered by Purchaser; 

  

	(c)	 the MSA Supplement in the form attached hereto as Exhibit D, as duly executed and delivered by Purchaser
or its applicable Affiliate; 

  

	(d)	 the Funds Flow Memorandum, as duly executed and delivered by Purchaser; 

 

	(e)	 Purchaser’s executed signature page(s) to the CRD Purchase Agreement; and 

 

	(f)	 such other documents or acknowledgements as in the opinion of Sellers may be reasonably necessary for the
Closing. 

  

	6.4	 COOPERATION AFTER CLOSING 

The Parties to this Agreement shall take, or shall cause to be taken, such actions and execute and deliver such documents after the Closing as are necessary,
proper or advisable under Applicable Law to fully execute documents and to complete the Closing and to more fully carry out the intent of this Agreement. 
  

	7.	 GENERAL 

  

	7.1	 ENTIRE AGREEMENT; AMENDMENTS; NO
WAIVERS 

 This Agreement (including the schedules and exhibits hereto) represents the entire understanding and
agreement between the Parties with respect to the subject matter hereof and can be amended, supplemented or changed, and any provision hereof can be waived, only by written instrument making specific reference to this Agreement signed by the Party
against whom enforcement of any 

  
 25 

 
such amendment, supplement, modification or waiver is sought. No action taken pursuant to this Agreement, including without limitation, any investigation by or on behalf of any Party, shall be
deemed to constitute a waiver by the party taking such action of compliance with any representation, warranty, covenant or agreement contained herein. The waiver by any Party of a breach of any provision of this Agreement shall not operate or be
construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not
exclusive of any other remedies provided by law. 
  

	7.2	 NOTICES 

All notices and other communications under this Agreement shall be in writing and shall be deemed given (i) when delivered personally by hand (with
written confirmation of receipt), (ii) when sent by facsimile (with written confirmation of transmission) or (iii) one Business Day following the day sent by overnight courier (with written confirmation of receipt), in each case at the
following addresses (or to such other address as a party may have specified by notice given to the other party pursuant to this provision): 

If to Sellers, to: 

SAExploration, Inc., 
 1160 Dairy
Ashford Road, Suite 160 
 Houston, Texas 77079 

Attn: Michael Faust 
 and 

ALASKAN Seismic Ventures, LLC 
 P
O Box 876489 
 Wasilla, Alaska 99687 

Attn: Bill Van Dyke 
 with copies
to (which shall not constitute notice): 
 Porter Hedges LLP 

1000 Main Street, 36th Floor 

Houston, TX 77002 
 Attn: E. James
Cowen 
 If to Purchaser, to: 
 TGS-NOPEC Geophysical Company ASA 
 Lensmannslia 4 

N-1386 

Asker, Norway 
 Attn: Chief
Financial Officer 

  
 26 

 with copies to (which shall not constitute notice): 

TGS-NOPEC Geophysical Company 

10451 Clay Road 
 Houston, TX
77041 
 Attn: General Counsel 

and 
 Locke Lord LLP 

600 Travis, Suite 2800 
 Houston,
TX 77002 
 Attn: Scott Arrington 
  

	7.3	 ANNOUNCEMENTS 

Each Party shall provide the other with a reasonable opportunity to review and comment on any public announcement with respect to this Agreement. The foregoing
shall not limit any announcement by any Party as may be required by Applicable Law or the rules or regulations of any applicable United States securities exchange or other Governmental Authority to which the relevant Party is subject or submits,
provided that such Party uses its commercially reasonable efforts to consult with the other Parties before making any such announcement. Nothing in this Section 7.3 shall limit the provisions of
Section 4.4. 
  

	7.4	 BINDING EFFECT; ASSIGNMENT 

This Agreement is binding upon and inures to the benefit of the Parties hereto and their respective successors and assigns. No assignment of this Agreement or
of any rights or obligations hereunder may be made by any Seller or Purchaser (by operation of law or otherwise) without the prior written consent of the other Parties hereto and any attempted assignment without the required consents shall be void;
provided, however, that Purchaser may assign this Agreement and any or all rights or obligations hereunder (including, without limitation, Purchaser’s rights to purchase the Acquired Assets) to any Affiliate of Purchaser.
Notwithstanding the foregoing, Purchaser acknowledges that SAE has collaterally assigned to its lenders and noteholders, or to the administrative agents, collateral agents or indenture trustee acting on behalf of such lenders and noteholders (or
their successors and assigns, collectively, the “Permitted Assignees”), all of SAE’s rights to collect any amounts payable to SAE under this Agreement and any remedies associated with such rights (and Purchaser consents to the
foregoing), it being understood that any such assignment will not relieve SAE from its obligations hereunder and that any such enforcement by the Permitted Assignees will be in accordance with, and subject to, the terms and provisions of this
Agreement in the same manner as same would be applicable to SAE. 

  
 27 

	7.5	 EXPENSES 

Sellers and Purchaser covenant and agree that each shall bear their own expenses incurred in connection with the preparation and execution of this Agreement
and the completion of the transactions contemplated by this Agreement including, but not limited to, all compensation and expenses of legal counsel, financial advisors, consultants and independent accountants. 

 

	7.6	 ELECTRONIC SIGNATURES 

Each Party agrees that the electronic signatures, whether digital or encrypted, of the Parties included in this Agreement are intended to authenticate this
writing and to have the same force and effect as manual signatures. Electronic signature means any electronic sound, symbol or process attached to or logically associated with a record and executed and adopted by a Party with the intent to sign such
record, including facsimile or e-mail electronic signatures. 
  

	7.7	 GOVERNING LAW; VENUE 

This Agreement, any dispute or matter arising out of or in connection with this Agreement, the other Transaction Documents (other than the MSA Supplement) or
the transactions contemplated hereby or thereby, including all claims or causes of action (whether in contract or tort), or the negotiation, execution or performance hereof or thereof, and the legal relationship among the Parties, shall, in all
respects, be subject to and be interpreted, construed and enforced in accordance with and under the laws of the State of Texas, including such Applicable Laws relating to applicable statutes of limitation and burdens of proof and available remedies,
regardless of the Applicable Laws that might otherwise govern under principles of conflict of laws thereof, and shall, in all respects, be treated as a contract made in Texas. Each Party hereby irrevocably submits to the exclusive jurisdiction of
the state courts located in Harris County, Texas and to the federal courts of the Southern District of Texas, Houston Division and all courts of appeal therefrom in respect of all matters arising out of or in connection with this Agreement, the
other Transaction Documents (other than the MSA Supplement) or the transactions contemplated hereby or thereby, and each Party waives any objection that such courts are an inconvenient forum. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS (OTHER THAN THE MSA SUPPLEMENT) OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 
  

	7.8	 SEVERABLE PROVISIONS 

If any term or provision of this Agreement is illegal, invalid or unenforceable, then that term or provision is deemed deleted from this Agreement. That
deletion does not affect the legality, validity or enforceability of the rest of this Agreement. 
  

	7.9	 COUNTERPARTS 

This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement. 

  
 28 

 [SIGNATURES APPEAR ON THE FOLLOWING PAGE] 

  
 29 

 SIGNED: 
  

									
	SAEXPLORATION, INC.	 		 	  TGS-NOPEC GEOPHYSICAL COMPANY ASA

									
					
	By:	 	 /s/ Michael J. Faust
	 		 	By:	 	 /s/ Dean Zuzic

	Name: Michael Faust	 		 	Name: Dean Zuzic
	Title: Chief Executive Officer and President	 		 	Title: CFO
	Date: January 10, 2020	 		 	Date: January 10, 2020

  

									
	ALASKAN SEISMIC VENTURES, LLC	 		 	

									
					
	By:	 	 /s/ William Van Dyke
	 		 	          	 	

									
	Name: William Van Dyke	 		 		 	
	Title: Chief Executive Officer	 		 		 	
	Date: January 9, 2020	 		 		 	

 [SIGNATURE PAGE TO ASSET PURCHASE
AGREEMENT]

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